Section 9007 Rural Energy for America Program (REAP)

What is the Section 9007 Program?

To foster rural economic development and growth, Congress passed the Rural Energy for America Program (REAP) known as Section 9007 of the 2008 Farm Bill.

Rural small businesses and agricultural producers can apply for grants and guaranteed loans for financing renewable energy projects and energy efficiency improvements - or - grants for a stand alone feasibility study.

Applications for energy audit and renewable energy assistance grants can be accepted from:

1. a unit of State, tribal, or local government

2. a land grant college or university or other institution of higher education

3. a rural electric cooperative or public power entity

4. any other similar entity

The 9007 program is a national competition for funds.

For FY 2009 $55 million is available                                                                   For FY 2010 $60 million is available                                                                  For FY 2011 $70 million is available                                                                  For FY 2012 $70 million is available

Each year mandatory funds are allocated as follows:                                           4% for energy audit and renewable energy assistance                                         20% for grants of $20,000 or less                                                                    10% for feasibility studies                                                                              The balance of funds are for energy efficiency improvement projects or renewable energy projects of any size.

What is the Section 9007 Program?

Eligible renewable energy projects include projects that produce energy from:

  • wind
  • biomass
  • anaerobic digester
  • ocean
  • solar
  • geothermal
  • hydrogen
  • hydroelectric             

The renewable energy project can produce any form of energy, including heat, electricity, or fuel.  The minimum project size for a renewable energy project is $10,000.

Eligible energy efficiency improvement projects include improvements to a facility, building, or process that reduces energy consumption, such as retrofitting, lighting, or insulation, or purchasing or replacing equipment and motors with more efficient units.

Energy efficiency projects must replace something that already exists. The minimum project size for an energy efficiency project is $6,000.

Projects cannot involve residential use.  Project purchases incurred prior to submitting an application are not eligible.

For all projects:

  • the system must be located in a rural area or community of less than 50,000 persons,
  • must be technically feasible,
  • must meet environmental requirements and,
  • must be owned by the applicant

How much assistance can be provided?

  • Grant: 25% of total eligible costs
  • Guaranteed Loan: 75% of total eligible costs
  • Combination grant and guaranteed loan: 75% of total eligible costs

Minimum grant amounts:

  • Renewable Energy projects: $2,500
  • Energy Efficiency projects: $1,500

Maximum grant amounts:

  • Renewable Energy projects: $500,000
  • Energy Efficiency projects: $250,000

Minimum guaranteed loan amounts:

  • Renewable Energy projects: $5,000
  • Energy Efficiency projects: $5,000

Maximum guaranteed loan amounts:

  • Renewable Energy projects: $25,000,000
  • Energy Efficiency projects: $25,000,000

Who is eligible?

Rural small businesses and agricultural producers.

 More information on these programs can be obtained from USDA Rural Development's national website:

 http://www.rurdev.usda.gov/rbs/farmbill/index.html

 For program clarification on your specific eligibility please contact the Rural Development office near you: Local Assistance

Rural Development - Southern New England Jurisdiction
For information about this web page, contact: Maril Alsup Stockwell at maril.stockwell@ma.usda.gov