Program focuses on energy independence, stronger rural economy

Kansas

U.S. Department of Agriculture-Rural Development's Chuck Banks recently invited Kansas agricultural producers and rural small business owners to make application for funding under the Agency's Renewable Energy Systems and Energy Efficiency Improvement Program. Recently, Secretary of Agriculture Mike Johanns announced the availability of $22.8 million in funding to support investments in renewable energy systems and energy efficiency improvements undertaken by eligible agricultural producers and rural small businesses.

In announcing the availability of funding under the Renewable Energy Systems and Energy Efficiency Improvement Program, Secretary Johanns commented, "Enhancing our energy efficiency is a key goal of the Bush administration. Renewable energy is an exciting growth frontier for American agriculture. Implementing an innovative energy policy, which the president has proposed, provides an opportunity to strengthen both our national security and the rural economy."

State Director Banks added, "The Renewable Energy Systems and Energy Efficiency Improvement Program provides Kansas farmers and ranchers, along with rural businesses and individuals, the opportunity to receive funding assistance to harness the untapped renewable energy resources available across the state. Establishing renewable energy opportunities and enhancing energy efficiency can also provide additional economic development opportunities for Kansas."

Section 9006 of the 2002 farm bill established the Renewable Energy Systems and Energy Efficiency Improvements Program to encourage agricultural producers and small rural businesses to create renewable energy and energy efficient systems. The funds announced will be available to support a wide range of technologies encompassing biomass (including anaerobic digesters), geothermal, hydrogen, solar, and wind energy, as well as energy efficiency improvements. To date, through this program the Bush administration has invested nearly $45 million in 32 states.

The $22.8 million announced recently will be made available in two stages. One-half of the announced funding, consisting of $11.4 million, is available immediately for competitive grants. Renewable energy grant applications must be for a minimum of $2,500 and a maximum of $500,000. Energy efficiency grant applications may range from $2,500 to $250,000. Grant applications under the program may not exceed 25 percent of the eligible project cost. Applications must be submitted to the USDA Rural Development state office in Topeka, with a postmark no later than June 27, 2005. Detailed program requirements and application information was included in the March 28, 2005 publication of the Federal Register; this information can be accessed through the Agency's website at www.rurdev.usda.gov/ks.

The remaining $11.4 million announced will be set aside through Aug. 31, 2005 to guarantee loans to help finance new renewable energy and energy efficiency projects. Final details on how to apply for these funds will be published in the Federal Register later this year. Any funds not obligated under the guarantee loan program by Aug. 31, 2005, will be reallocated to the competitive grant program as of that date.

Kansas informational meetings covering details of the grant portion of this program will be scheduled by the Agency and announced in the near future. Parties who have an interest in this program may contact the USDA Rural Development state office in Topeka at 785-271-2744.

USDA Rural Development's mission is to deliver programs in a way that will support increasing economic opportunity and improve the quality of life of rural residents. As a venture capital entity, USDA Rural Development has invested over $50 billion since the beginning of the Bush administration to provide equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. As a result of these investments, over 800,000 jobs have been created or saved throughout rural America. Further information on rural programs is available at a local USDA Rural Development office, by calling the Agency's state office at 785-271-2700, or by visiting Agency's Kansas website at www.rurdev.usda.gov/ks.

Date: 4/21/05