New Farm Bill Becomes Law, Includes Millions In Renewables Funding

On Feb. 7, President Barack Obama signed into law the Agricultural Act of 2014, also known as the Farm Bill. Among a variety of provisions meant to help support rural Americans, the legislation includes $881 million in mandatory funding for the Energy Title program.

The revamped Rural Energy for America Program (REAP), part of the Energy Title, will allocate $45 million in each fiscal year from 2014 through 2018 to offer grants and loans to rural businesses and agricultural producers to fund energy efficiency and renewable energy projects, including solar and small wind power systems.

Farm Bill Agreement: A "Win" for Clean Energy Programs

The U.S. House of Representatives is expected to take up a long-awaited agreement on the Farm Bill today. The compromise, which came late Monday, includes funding for programs that support conservation and renewable energy in the Midwest.

While the Energy Title funding has been reduced overall, Andy Olsen, senior policy advocate for the Environmental Law and Policy Center, said the compromise provides some certainty for renewed growth in rural energy projects.

Brighter Horizon for Biofuels

The biofuel industry breathed a big sigh of relief last month when the EPA declined several governors’ petitions to waive the Renewable Fuel Standard. Then, after a herculean group effort, the industry and other interests stood and cheered as the Senate voted last week to clear the path for the Department of Defense to take a leadership role in opening markets for new advanced biofuels.

Additional regulatory and Congressional actions may give the industry even further cause for celebration in the next few weeks and months. After meeting a number of challenges, the biofuels industry’s cohesive, unified efforts are paying off. The industry needs to continue to support efforts, such as Fuels America, in order to fend off biofuels opponents and detractors.

House Agriculture Committee adopts a farm bill

Federal Agriculture, Risk, and Reform Management Act  

Key Development: House Agriculture Committee adopts a farm bill with a provision to prohibit EPA from requiring discharge permits for pesticide spraying on or near water bodies.

Potential Impact: The bill would reauthorize conservation, renewable energy, and forestry programs for five years.

The House Agriculture Committee adopted a farm bill July 12 that would provide $57 billion for conservation programs over the next 10 years and prohibit the Environmental Protection Agency from requiring Clean Water Act discharge permits for pesticide spraying on or near water bodies.

Farm Bill to encourage renewable energy

Agriculture Secretary Tom Vilsack announced that USDA is seeking applications for federal funding to increase the production and use of renewable energy sources. Funding is available from four USDA Rural Development renewable energy programs authorized by the Food, Conservation, and Energy Act of 2008 (Farm Bill) under its Title IX Energy Provisions.

USDA is accepting applications for grants and loan guarantees in the Rural Energy for America Program (REAP) until June 30, 2010. More information on how to apply for funding is available in the April 26, 2010 Federal Register (PDF). The Rural Energy for America Program provides funds to agricultural producers and rural small businesses to purchase and install renewable energy systems and make energy efficiency improvements.

Eligible projects include installing renewable energy systems such as wind turbines, solar, geothermal, biomass, anaerobic digesters, hydroelectric, and ocean or hydrogen systems. Funding may also be used to purchase energy-efficient equipment, add insulation, and improve heating and cooling systems. In fiscal year 2009, this program helped fund 1,485 REAP projects in 50 states, the commonwealth of Puerto Rico and the Western Pacific Islands.

USDA’s Biorefinery Assistance Program provides guaranteed loans to develop and construct commercial-scale biorefineries or to retrofit existing facilities using eligible technology for the development of advanced biofuels. The amount of a loan guaranteed for a project under this program cannot exceed 80 percent of total eligible project costs.

The Repowering Assistance Program is designed to encourage the use of renewable biomass as a replacement fuel source for fossil fuels used to provide process heat or power in the operation of eligible biorefineries (those biorefineries in existence on June 18, 2008 — the date the 2008 Farm Bill was enacted).

The Bioenergy Program for Advanced Biofuels works to support and ensure expanding production of advanced biofuels by providing payments to eligible advanced biofuels producers. Advanced biofuels are derived from renewable biomass, other than corn kernel starch. These include cellulose, sugar and starch, crop residue, vegetative waste material, animal waste, food and yard waste, vegetable oil, animal fat, and biogas (including landfill gas and sewage waste treatment gas).

Source: http://bit.ly/9LD03N