ADC NEWS RELEASES | CPA NEWS RELEASES

April 23, 2003

USDA TO AWARD $23 MILLION IN GRANTS FOR RENEWABLE ENERGY INITIATIVES

Contact: Rob Holland
Center for Profitable Agriculture
The University of Tennessee Agricultural Extension Service
931-486-2777
rwholland@utk.edu
http://cpa.utk.edu

In an effort to enhance renewable energy supplies, USDA has announced the availability of $23 million in grants for renewable energy systems and energy efficiency improvements. Applicants for the Renewable Energy Systems and Energy Efficiency Improvements programs must be agricultural producers or rural small businesses, U.S. citizens or legal residents and have demonstrated financial need.

The funds are available from USDA’s Rural Development program and may be used to pay up to 25 percent of the total eligible project costs. The funds may be used to purchase renewable energy systems and make energy improvements for agricultural producers and rural small businesses. Eligible project costs include those that derive energy from a wind, solar, biomass or geothermal source, or hydrogen derived from biomass or water using wind, solar or geothermal energy sources. Awards will be made on a competitive basis for the purchase of renewable energy systems and to make energy improvements.

Grant proposals and applications must be completed and submitted to the State Rural Development headquarters no later than June 6, 2003. In Tennessee, the renewable energy grant applications are due to the state Rural Development office in Nashville. Their telephone number is 615-783-1341.

This grant program is designed to help agricultural producers and rural small businesses reduce energy costs and consumption and help meet the nation’s critical energy needs by providing up to 25 percent of the total costs of purchasing renewable energy systems and making energy efficiency improvements in their operations. Therefore, the applicant must provide at least 75 percent of the total project funds.

Applications for renewable energy systems must request between $10,000 and $500,000 while applications for the energy efficiency improvements must be between $10,000 and $250,000. These grant funds are not for research and development and must be for commercial or pre-commercial technology.

Detailed information about program requirements and information on how to apply are available in the “Notice of Funds Available” which was posted in the Federal Register on April 8. Additional information on the grant program can be obtained by visiting: <www.rurdev.usda.gov/rd/farmbill/9006resources.html>.