Remarks by Thomas C. Dorr
Under Secretary for Rural Development

Farm Bill Energy Title Stakeholders Meeting
Washington, DC

Tuesday, December 3, 2002

(As Prepared for Delivery)
Thanks Bob.

(SLIDE ONE WILL BE ON SCREEN AT THE BEGINNING 
OF REMARKS)

As a farmer from Iowa, I have seen first hand how renewable 
energy has had major economic benefits for rural America – 
and the farming way of life.  These renewable include ethanol, 
biodiesel, wind, solar and many just emerging technologies.

There is no question that energy is a vital and important part 
of the future for agriculture and rural America.  



I assure you that USDA’s Rural Development is firmly 
committed to working with producers, cooperatives, and 
businesses to help them develop the business opportunities and 
plans to secure the financing they need in the development of 
renewable energy ventures.  

In the last two years, Rural Development has financed 73 loans 
and grants in 25 states totaling $45 million to fund biobased 
and bioenergy related businesses.  This is a step in fulfilling the 
objectives of President Bush’s energy plan.

(SLIDE TWO)_
Today’s meeting is part of a significant new collaborative 
effort between agencies within USDA involving (Rural 
Development, Farm Services Agency, and Natural Resource 
Conservation Service) and intergovernmentally with the 
Department of Energy, Environmental Protection Agency and 
others.  For me and others it is refreshing and encouraging to 
see this level of collaboration and cooperation.  



This is a good team and one that is committed to working to 
speed the review and approval processes needed to more 
rapidly develop bioenergy throughout the country.  I 
appreciate everyone who is here today serving as a panelist or 
support staff for your dedication and the fine representation 
you provide.   

But we also need to look at other ways government can 
facilitate and encourage expanded use and production of 
renewable fuels and energy.  Tax incentives, tax exemptions, 
utility credits or other innovative ways we can spur this 
emerging industry need to be explored.

We need also to be looking at the regulatory environment.  Are 
there ways to develop regulations and rules, which 
acknowledge the myriad of pricing regulators, and yet can be 
utilized to encourage this growth.  For example, how can we 
exploit the opportunities inherent in renewable short grid 
distributive energy generation systems – without creating too 
many artificial incentives or disincentives.



This is a time of enormous transformation in American 
agriculture.  We need to be bold in recognizing – and 
capitalizing on – new opportunities.  Energy is unquestionably 
one of those areas that presents enormous opportunities for 
economic gains and ultimately an improved quality of life.    

Our challenge is to see the potential, understand the value, and 
take the risks to turn these opportunities into progress and 
economic growth.  

And this brings me to the purpose of today’s meeting. 

(SLIDE THREE)
The Farm Security and Rural Investment Act of 2002 (Farm 
Bill) included for the first time an energy title which focuses on 
renewable energy systems and energy efficiency improvements. 

(SLIDE FOUR)  
We will focus today on Section 9006 which “Establishes a 
grant, loan, and loan guarantee program to assist eligible 
farmers, ranchers, and rural small businesses in purchasing 
renewable systems and for making energy efficiency 
improvements.”

(SLIDE FIVE) 
The provision provides funding from 2003 through 2007 at $23 
million per year.  Of course that could be potentially higher, 
depending on the how much of the funding is utilized for 
grants versus loans/loan guarantees.

(SLIDE SIX) 
There are two primary provisions that you should keep in 
mind.  First, the grant amount is not to exceed 25 percent of 
the activity being funded.  And, Second, the combined 
loan/grant funds are not to exceed 50 percent of the cost of the 
activity being funded.

(SLIDE SEVEN) 
The law also identified six areas to be considered when making 
renewable energy system loans/grants.  They are:
	•Type of system to be purchased
•Estimated quantity of energy to be generated
•Environmental benefits of system
•Extent of system replication
•Expected energy savings
•Estimated length of time for energy savings to equal cost

Determining the grant or loan amount, and general perimeters 
for what should be accomplished were outlined in the statue. 
What hasn’t been done, and the reason for seeking your input 
today, is how will USDA Rural Development implement 
Section 9006.   



(SLIDE EIGHT)
In announcing this meeting, we identified seven specific 
questions where we hope to gain your insight and advice.  They 
are as follows:
1.	What projects should be eligible for funding?  
2.	Should certain types of projects receive priority for 
funding? 
3.	Should preference be given to new, innovative 
	technologies or proven technologies?  
4.	What type of financial assistance is most in need (i.e., 
grants, direct loans, or loan guarantees)? 
(SLIDE NINE)
5.	What other factors, if any, should the Department 
consider in determining the amount of a grant or loan?  
6.	Should certain types of projects or geographic areas be 
targeted and given preference for 	financial assistance?
7.	What other various sources of program matching 
funds are available (i.e., other Federal, State, local, or 
private programs)? 




CLOSING 

So it is important today that we obtain your input in 
addressing these questions.  Any additional ideas that you may 
wish to share with us will be very helpful.   As I said at the 
beginning of this meeting, this is an exciting time in rural 
America.  By working together, we hope to increase economic 
opportunities and improve the quality of life.  We will create a 
stronger rural economy and a country less dependent of 
imported energy supplies.
 
At this time I am going to turn it over to you, Bob for 
announcements and introduction of our panel.
 
Thank you very much.  
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