USDA Rural Development invites agricultural producers and rural small businesses to apply for loans and grants to implement renewable energy systems and make energy efficiency improvements.

USDA is providing funding for up to $61 million in guaranteed loans and $42 million in grants through the Rural Energy for America Program (REAP). Funds are available to help agricultural producers and rural small businesses develop renewable energy systems, make energy efficiency improvements and conduct studies to determine the feasibility of renewable energy systems.

The attached Notice of Funding Availability and Interim Rule clarifies the definition of renewable energy systems in REAP to include flexible fuel pumps, sometimes referred to as "blender pumps." This clarification is intended to provide fuel station owners with incentives to install flexible fuel pumps that will offer Americans more renewable energy options. The rule also makes the following clarifications:

·                     Grants are available for audits of energy improvements and studies to determine the feasibility of renewable energy systems; and

·                     Agricultural producers in non-rural areas are eligible for REAP assistance. Small businesses must still be located in rural areas. This clarification makes REAP eligibility requirements consistent with those of other USDA energy programs.

Since Rural Development's renewable energy and energy efficiency programs were launched in 2003, they have played a key role in helping more than 6,000 local businesses create jobs and make energy efficiency improvements. Under REAP, local businesses receive assistance to deploy wind, solar and other forms of renewable energy and energy efficiency improvements.

The deadlines for submitting completed REAP applications are June 15 and June 30, depending on the type of project to be funded. For information on how to apply for assistance, contact Kevin Boone @ (337) 262-6601 ext. 133 or by email @ kevin.boone@la.usda.gov.  Additional application criteria can be found at http://www.rurdev.usda.gov/LA_REAP.html