USDA Offers $22.8 Million for Energy Efficiency and Renewables

May 12, 2004

The U.S. Department of Agriculture (USDA) announced on May 4th that it is offering $22.8 million in grants to support energy efficiency improvements and renewable energy installations at farms, ranches, and rural small businesses. The funds may be used to pay up to 25 percent of the project costs. Eligible renewable energy projects include those that derive energy from a wind, solar, biomass, or geothermal energy sources, as well as projects that use any of these energy sources to generate hydrogen for use as a fuel. See the USDA press release.

The USDA's Renewable Energy Systems and Energy Efficiency Improvements program was created as part of the 2002 Farm Bill. In 2003, the program awarded $21.7 million to 114 applicants from 24 states, helping them to make energy efficiency improvements and develop or improve wind and solar power systems and biomass energy systems, such as anaerobic digesters and ethanol production plants. For the formal "Notice of Funds Availability" for this year's funds, as well as additional information about the program, see the program Web site.