USDA seeks applications for renewable energy and energy efficiency systems

TIYAN, Guam—USDA Rural Development is seeking interested applications from rural small businesses and agricultural producers for funding to make energy efficiency improvements or to install renewable energy systems.

“Developing renewable energy presents an enormous economic opportunity for rural America,” Agriculture Secretary Tom Vilsack said. “This funding will help farmers, ranchers and rural small business owners incorporate renewable energy and energy efficiency technology into their operations, create jobs and help America become more energy independent. When small rural businesses and farmers cut their energy costs with cleaner and more efficient energy, we are both helping their bottom lines and reducing the amount of greenhouse gas pollution that affects our climate.”

Through its Rural Energy for America Program, grants and guaranteed loans are available for eligible applicants to alleviate the investment for energy systems. Created by the 2008 Farm Bill, REAP was reauthorized by the recently passed 2014 Farm Bill. For fiscal year 2014, USDA plans to award up to $12.3 million in grants and $57.8 million in loan guarantees.

USDA is accepting applications for:
¾ Renewable energy system and energy efficiency improvement loan guarantee and grant combinations;
¾ Renewable energy system and energy efficiency improvement loan guarantees; and
¾ Renewable energy system and energy efficiency improvement grants.
Requests for grants may not exceed 25 percent of a project’s cost – either for stand-alone grant requests or for grants combined with loan guarantees.

“This announcement clearly demonstrates the Obama administration’s effort to create a clean energy economy,” stated Chris Kanazawa, state director for the State of Hawaii and the Western Pacific. “The REAP will enable owners of rural businesses, farms, and ranches to develop renewable energy systems and improve energy efficiency to save thousands of kilowatt hours of energy annually.”

Since the start of the Obama administration, REAP has supported more than 8,200 renewable energy and energy efficiency projects nationwide. During this period, USDA has provided more than $264 million in grants and $212 million in loan guarantees to agricultural producers and rural small business owners.

“We want to reach out to more farmers, ranchers and small businesses in the Western Pacific and encourage them to take advantage of this funding opportunity for investments in energy systems,” said Joe Diego, area director. “Rural Development understands that investment in these systems can be costly; however, REAP offers an affordable financing alternative to finance these investments,” Diego said.

“Ultimately, the investment will assist businesses and agricultural producers become more sustainable in the face of rising energy costs in the Western Pacific while at the same time becoming more environmentally-friendly.”

American Printing Corp. used a $24,170 REAP grant to help offset the cost of installing a 20-KW photovoltaic, grid interconnected solar system installed on the roof top of the company’s building in Tamuning, Guam. Co-owner and manager James Yu, says that “with the doubling of the cost of power, my family’s business began looking for ways to control its power bill.” With the investment, the business expects their next power bill to be cut in half. “Guam has been our home for over 36 years and knowing we are saving energy while doing our part to save our environment and to make Guam a greener place, is a rewarding feeling,” Yu stated.

Information on how to apply for REAP funding and on the application deadlines (which vary by project type) is available on page 25564 of the May 5, 2014, Federal Register. (USDA)