Farmers and small business owners in many co-op territories could benefit from nearly $221 million in U.S. Department of Agriculture loan guarantees and grants being offered to boost renewable energy production.

“As demand for energy rises, these renewable energy loans and grants help farms and rural small businesses increase their investment in renewable energy,” said Agriculture Secretary Ed Schafer, who unveiled the USDA Renewable Energy Systems and Energy Efficiency Improvements Program during the Washington International Renewable Energy Conference, March 6.

Under the program, administered by USDA Rural Development, loan guarantees covering up to 50 percent of a project’s cost—not to exceed $10 million—are available. The first application period for a competitive grant-only program closes April 15. It could provide applicants with as much as $500,000 to cover up to 25 percent of the costs of renewable energy systems or $250,000 for up to 25 percent of the costs of energy efficiency improvements. A second grant-only application period runs April 16–June 16.

The program could create new jobs in ethanol and biodiesel production or fund new geothermal, biomass, methane gas recovery or wind and solar projects. 

Officials at NRECA said energy efficiency projects funded under the program could reduce load demand for electricity.

“As rural small businesses, some distribution co-ops are eligible for these grants and loans,” said Carol E. Whitman, NRECA senior principal of legislative affairs for environmental issues. “This will be particularly good for existing small businesses in rural areas or those trying to enter those markets.”

The economic development potential for areas served by co-ops could also be great, said Chuck Penry, NRECA’s assistant director of government relations. “We’re just hoping there’s funding for similar follow-up initiatives in the future.”

This article by Derrill Holly is reprinted with permission from Electric Co-op Today.