Read below for more details on an important new piece of legislation sponrosed by Sen. Tom Harkin, the Rural Energy for America Program (REAP). This bill, if passed, will strengthen the USDA Farm Bill Grant Program for wind and other renewable energy projects. Sections of this bill will help mend some of the previous problems with the structure of the USDA Program; for instance the "haircut" of the Production Tax Credit. Please contact your Senator today, urging him/her to co-sponsor this important piece of legislation.
Read belwo for full article.
See Windustry USDA website for more information on the USDA Farm Bill. - www.windustry.org/farmbill
Other links:
Farm Energy Website- www.farmenergy.org
Senator Harkin Website - http://harkin.senate.gov

Senator Tom Harkin (D-IA) introduced the Rural Energy for America Act of 2006, an ambitious farm energy bill that will commit federal resources to an aggressive program to develop Farm Energy. The program builds on the successful Section 9006 “Renewable Energy and Energy Efficiency Improvements” program with a new name; “REAP” for “Rural Energy for America Program.”

”This legislation will dramatically increase financial support for farmers and rural businesses to purchase renewable energy systems and make energy efficiency improvements,” Harkin said. “We have only begun to tap into the potential for American ingenuity in home-grown clean energy production and use.”

The REAP Act ramps up overall funding to $250 million annually by the year 2012 for competitive grants to farmers, ranchers and rural small businesses for market-ready renewable energy and energy efficiency projects. The bill would make several improvements sought by farm energy advocates:
• The legislation authorizes USDA, in appropriate circumstances, to structure grants as production incentives instead of construction grants, thereby reducing the risk of undercutting the production tax credit benefit.
• This legislation also includes a new rebate program providing the lesser of $10,000 or 50 percent of project costs for energy efficiency improvements and the purchase of renewable energy systems. The rebate program allows small and medium-sized farmers and rural small businesses to obtain rapid and long-lasting relief from high energy prices. This rebate program is patterned after successful state-run programs. Rebates will be limited to no more than 20% of the total available funding.
• The bill provides calls for the administration of direct loans from the USDA.
• Rural schools would qualify for REAP assistance.
• Feasibility and planning studies will be eligible activities to help plan sound projects and to help some resource-rich areas of the country to benefit more from the program.
Bill co-sponsors are Senators Richard Lugar (R-IN), Richard Durbin (D-IL), Chuck Hagel (R-NE) and Ben Nelson (D-NE). Please call your Senator today to ask them to cosponsor this bill!
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