USDA logo Building Sustainable Farms, Ranches and Communities

Renewable Energy Systems and Energy Efficiency Improvements Program

Assisting farmers, ranchers, and rural small businesses in developing renewable energy systems and making energy efficiency improvements to their operations

The Renewable Energy Systems and Energy Efficiency Improvements program was authorized in Section 9006 of the 2002 Farm Bill. Housed in USDA’s Rural Development agency, this program is conducted in collaboration with the Department of Energy.

In its first year, 2003, the program operated solely as a grant program, but in future years the program may expand to provide loans as well. In FY 2004, the program made $22.8 million in grants available.

Project Examples

A list of 2005 grant recipients by state, indicating grant amounts, can be found at the USDA Rural Development website at: www.rurdev.usda.gov/rd/newsroom/2005/9006GrantRecipients.pdf.

Application and Financial Information
As of this writing, $23 million is expected to be available in Fiscal Year 2004 as was available in Fiscal Year 2003, when grants of $21.2 million were awarded to 113 applicants in 24 states. In 2003, funding to assist with the development of renewable energy systems included:

Awards were made on a competitive basis for the purchase of renewable energy systems and to make energy efficiency improvements.

Eligibility, Uses, and Restrictions
Energy efficiency projects must reduce energy consumption by at least 15 percent. Applicants for the Renewable Energy Systems and Energy Efficiency Improvements program must be agricultural producers, rural small businesses, U.S. citizens and/or legal residents, and have demonstrated financial need. Rural Development grant funds may be used to pay up to 25 percent of the eligible project costs.

Eligible projects include those that derive energy from a wind, solar, biomass, or geothermal source, or hydrogen derived from biomass or water using wind, solar, or geothermal energy sources. Awards are made on a competitive basis for the purchase of renewable energy systems and to make energy efficiency improvements.

Contact
Tim McNeilly
Phone: (202) 690-0498
E-mail: tim.mcneilly@usda.gov

Alisa Harrison
Phone: (202) 720-4623
E-mail: alisa.harrison@usda.gov

John Moore
Phone: (312) 8481238

People may also contact USDA Rural Development offices in each state.

Internet
www.rurdev.usda.gov/rbs/farmbill/

Last Updated January 26, 2010

Please note: Building Sustainable Farms, Ranches and Communities is also available for download in PDF format.

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