October 14, 2010
USDA Secretary Tom Vilsack today announced $32 million in loans and grants for 433 renewable energy and energy efficiency projects in Iowa under the Rural Energy for America Program (REAP). Grants and loans totaled $14.5 million and $17.4 million, respectively.
REAP, which is administered by USDA’s Rural Development agency, makes grants and loans available to farmers and businesses for energy conservation and production purposes and provides grants to agencies and groups to assist farmers with energy audits and project feasibility studies.
The program received $255 million in mandatory funding over the life of the 2008 Farm Bill, with $99.3 million available nationwide for FY 2010 (the $60 million in mandatory funding was supplemented by $39.3 million in appropriations). At least 20 percent of REAP funding each year must go to grants of under $20,000.
The majority of the Iowa grants were dedicated to replacing outdated equipment, such as old grain dryers, with more energy-efficient models, generating significant cost savings for recipients through reduced energy use. Projects building new renewable energy systems, including installing wind turbines and geothermal systems, received a smaller number of large-scale grants and loans.
A complete listing of grantees and award amounts can be found here.
For more information, visit the REAP website.