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USDA Announces Availability of $22.8 Million for Renewable Energy Projects, Notes NCGA (03-30-05)

In an effort to focus on energy independence and boost rural economic activity, the U.S. Department of Agriculture (USDA) announced this week the availability of $22.8 million for renewable energy programs and energy efficiency projects for agriculture producers and rural small businesses.

“USDA projects that promote renewable energy sources, like ethanol, work hand-in-hand with the National Corn Growers Association’s (NCGA) efforts to expand the ethanol industry while creating value-added business opportunities for corn growers throughout the United States,” said Bruce Noel, Ethanol Committee vice chairman.

Agriculture Secretary Mike Johanns said energy efficiency and independence is a key goal of the administration, noting that renewable energy is an exciting 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,” he said.

The $22.8 million will be made available in two stages, according to USDA. The grants will support a wide range of technologies including those encompassing biomass (including anaerobic digesters), geothermal, hydrogen, solar, and wind energy, as well as energy efficiency improvements. The first stage of funds, which amounts to $11.4 million, will be 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.The grant request may not exceed 25 percent of the eligible project cost.

Applications must be submitted to the appropriate USDA Rural Development state office postmarked no later than June 13.

The second stage has the remaining $11.4 million set aside through Aug. 31 for renewable energy and energy efficiency guaranteed loans. 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 guaranteed loan program by Aug. 31 will be reallocated to the competitive grant program as of that date.

More information on rural programs is available at a local USDA Rural Development office or by visiting USDA's web site at http://www.rurdev.usda.gov.



Last reviewed March 30 2005

 



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