Congressional Action Underscores Path to Renewable Energy Future
The Senate Committee on Appropriations vote last week to boost funding for farm energy programs underscores the path to a renewable energy future that create more clean energy, reduce our dependence on fossil fuels, provide new income for rural Americans and improve our environment.
The committee voted to increase funding for the Rural Energy for America Program (REAP) for fiscal year 2010, which begins Oct. 1 of this year, from $60 million to $128 million. That’s short of the $150 million recommended by 25x’25, but still represents an increase of 113 percent over FY 2009 funding levels. REAP helps farmers, ranchers and rural small businesses build their own clean energy projects. The program provides grant and loan guarantee assistance for a broad range of clean energy technologies including biomass, manure digesters, wind and solar power, and energy efficiency.
The committee also voted to increase funding for the Biorefinery Assistance Program, which provides grants and loan guarantees for facilities producing the next generation of biofuels, including cellulosic ethanol. Under the committee’s proposal, the program would receive $262 million, including $245 million in mandatory funds and $17 million in additional discretionary funds. The request actually exceeds the 25x’25-recommended allocation of $250 million for the program. Through the program, USDA is the only federal agency to issue loan guarantees for cellulosic ethanol to date.
The funding levels for the two programs match those requested by the Obama administration and underscore a commitment by policy makers to accelerate the deployment of advanced biofuels technologies.
Producers who want to take immediate advantage of the benefits of REAP have until the end of this month to submit their application for fiscal 2009 funding, which is being made available on a broader scale. Previously, grant awards under the Section 9006 program, the forerunner to REAP, tended to go to only a few states where investment had been made in policies and programs that helped their farms and rural businesses develop their clean energy resources with help from the program. Now USDA has provided a REAP allocation to the Rural Development office in each and every state. Other enhancements to the program provided by Congress, including energy technical assistance and feasibility studies, will also help states that have lagged in winning funding. More information on REAP can be found at the Environmental Law and Policy Center Farm Energy Web site.
While recent developments offer good news, much work remains to be done to establish the full range of enabling polices and funding levels needed to accelerate the new energy future envisioned by 25x’25 partners. It is critical that renewable energy advocates urge policy makers to adopt the full recommendations called for in both the 25x’25 economic recommendations and the 25x’25 Action Plan: Charting America’s Energy Future.
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