Department of Agriculture Issues Renewables Funding Notice

March 15, 2006


The Renewable Energy and Energy Efficiency loan and grant program was established under Section 9006 of the 2002 Farm Bill to encourage agricultural producers and small rural businesses to create renewable and energy efficient systems. A total of 435 grants totaling $66.7 million have been awarded in 36 states since the program began and in 2005, for the first time, renewable energy loan guarantees were made under the program. Under the program, the maximum amount of a loan guarantee made to a borrower is $10 million. For renewable energy systems, the minimum grant request is $2,500 and the maximum is $500,000. For energy efficiency improvements, the minimum grant request is $1,500 and the maximum is $250,000. Rural development grants under the program will not exceed 25 percent of the eligible program costs and a combination of grants and guaranteed loans will not exceed 50 percent.  

Helpful Template

A detailed template, A Proposal Prepared for the United States Department of Agriculture 2002 Farm bill Initiative: The Renewable Energy And Energy Efficiency Program USDA Farm Bill Section 9006 For Purchase and Installation of a Renewable Energy Project, provides a detailed template that can be used as a guide to allow users to see the type of information required to receive grant funding from the USDA Section 9006 program. To obtain a copy of the report, please visit (PDF 4.79 MB). Download Adobe Reader. Please email the report's author, Pat Laney, at Idaho National Laboratory with any questions.


Applications for grants must be completed and submitted to the appropriate USDA Rural Development state office postmarked no later than May 12, 2006. Guaranteed loans will be awarded on a continuous basis. Applications are due to the National Office for funding consideration by July 3, 2006. Any guaranteed loan funds not obligated by August 1, 2006, will be made available for competitive grants. For more information refer to the announcement in the February 13, 2006 Federal Register or contact any state Rural Development office. To view the original announcement, please visit