FOR IMMEDIATE RELEASE - March 10, 2008
WASHINGTON, - Agriculture Secretary Ed Schafer recently announced during an international renewable energy conference that USDA will accept $220.9 million in loan and grant applications within USDA's Renewable Energy Systems and Energy Efficiency Improvements Program.
"As demand for energy rises, these renewable energy loans and grants help farms and rural small businesses increase their investment in renewable energy initiatives," said Schafer, speaking at the Washington International Renewable Energy Conference (WIREC). "Energy efficiency wisely applies our resources, and energizes wealth-creation opportunities with more jobs throughout rural America."
USDA Rural Development State Director Chuck Banks commented, "USDA's energy programs offer [[Kansas]] farmers and ranchers, along with rural businesses owners and public entities, the opportunity to receive funding assistance to harness the untapped renewable energy resources and achieve greater energy efficiency. Establishing renewable energy projects and enhancing energy efficiency can also provide additional economic development opportunities for [[Kansans]]."
USDA will issue one grant solicitation for two separate competitions in FY 2008. For the first competitive window, grant-only applications must be submitted no later than April 15, 2008. For the second competitive window, grant-only applications must be submitted no earlier than April 16, 2008, and no later than June 16, 2008. Applications for loan guarantees, as well as those for loan/grant combinations must be completed and submitted to the appropriate USDA Rural Development State Office no later than June 16, 2008.
In his remarks, Banks further stated, "It is especially important that we expand renewable energy projects and improve the efficiency of current systems as we strive to make the United States more energy independent, which improves the economic security of our Nation.
The Renewable Energy and Energy Efficiency loan and grant program was established under Section 9006 of the 2002 Farm Bill to encourage agricultural producers and rural small businesses to create renewable energy and energy efficient systems. The Program's funding can support a wide range of technologies encompassing biomass (including anaerobic digesters), geothermal, hydrogen, solar, and wind energy, as well as energy efficiency improvements.
Under the Renewable Energy Systems & Energy Efficiency Improvement Program (Section 9006), the maximum amount of a loan guarantee made to a borrower is $10 million. For renewable energy systems, the minimum grant request is $2,500 and the maximum is $500,000. For energy efficiency improvements, the minimum grant request is $1,500 and the maximum is $250,000. Grant funds under the Program will not exceed 25 percent of the total eligible project costs. A combination of 9006 grants and 9006 guaranteed loans will not exceed 50 percent of the total eligible project costs.
Other USDA Rural Development funds may be available to assist with the balance of the funding. A total of over $466,000 in grants has been awarded in Kansas, since the Program began. Beginning in 2005, renewable energy loan guarantees were made available under the Program. Since 2006 Kansas has provided over $152,000 in 9006 loan guarantees and over $177,000 in Business and Industry loan guarantees for renewable energy and energy efficiency projects.
Individuals who have an interest in USDA Rural Development programs may contact the USDA Rural Development State Office in Topeka at 785-271-2736 or email David Kramer at david.kramer@ks.usda.gov.
USDA Rural Development's mission is to deliver programs that support increasing economic opportunities and enhancing the quality of life for rural Americans. As a venture capital entity, USDA Rural Development provides equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure in rural America. Since 2001, USDA Rural Development has invested over $1.2 billion in funding to expand single family homeownership, multi-family and senior rental housing, community facilities, economic development, water and waste disposal, renewable energy and energy efficiency, telecommunications, and value-added producer programs across Kansas. Agency funding has benefited over one million Kansans during this period, and will support more than $5.5 billion in future economic development in Kansas.
USDA Rural Development - Committed to the future of rural communities.
1303 SW First American Place, Suite 100, Topeka, KS 66604-4040
Voice (785) 271-2701, FAX (785) 271-2708, WEB www.rurdev.usda.gov/ks
Contact - Harold Alford (785) 271-2701
Federal Register for 9006 Renewable Energy Systems and Energy Efficiency Improvements Grants and Guaranteed Loans (pdf)