Expanding Rural Renewable Energy Systems USDA Rural Development
Partnering for America’s Future • USDA – • Rural Development • Farm Service Agency • Natural Resources and Conversation Service Department of Energy Environmental Protection Agency
The Farm Security and Rural Investment Act of 2002 • Public Law 107-171 • Section 9006 –Renewable Energy Systems and Energy Efficiency Improvements
Public Law 107-171 Section 9006 - - Establishes a grant, loan, and loan guarantee program to assist eligible farmers, ranchers, and rural small businesses in purchasing renewable energy systems and for making energy efficiency improvements.
Funding Availability Fiscal Years 2003-2007 $23 Million per year
General Provisions • Grant amount not to exceed 25 percent of activity funded. • Combined loan/grant not to exceed 50 percent of cost of activity funded.
To be considered when making renewable energy system loans/grants • Type of system to be purchased • Estimated quantity of energy to be generated • Environmental benefits of system • Extent of system replication • Expected energy savings • Estimated length of Time for energy savings to equal cost
Questions for Today’s Meeting • What projects should be eligible for funding? • Should certain types of projects receive priority for funding? • Should preference be given to new, innovative technologies or proven technologies? • What type of financial assistance is most in need (i.e., grants, direct loans, or loan guarantees)?
Questions for Today’s Meeting • What other factors, if any, should the Department consider in determining the amount of grant or loan? • Should certain types of projects or geographic areas be targeted and given preference for financial assistance? • What are various sources of program matching funds (i.e., other Federal, State, local, or private programs)?