§8107 — Title 7 Agriculture | U.S. Code

Summary

Create a Rural Energy for America Program to help farmers and rural small businesses use less energy and start using renewable energy. The Agriculture Department, working with the Energy Department, must offer two main things: grants to pay for energy audits and advice, and financial help (grants and loan guarantees) to buy renewable energy systems or make energy-saving improvements. The law lets the Department give competitive grants to groups like state or local governments, colleges, rural utilities, and similar groups to run outreach and do audits. The grant groups must be skilled, reach the right areas, help many producers or businesses, show energy and environmental benefits, have an outreach plan, and leverage other funds. Grant money must be used for audits and advice. Grant holders may not spend more than 5% on admin. Anyone getting an audit must pay at least 25% of its cost. For direct help to producers and businesses, grants may cover up to 25% of a project’s cost, a loan guarantee may be at most $25,000,000, and grant plus loan guarantees together may not exceed 75% of the project cost. The Department must use a three-tiered application process for projects sized: up to $80,000, $80,001–$199,999, and $200,000 or more, with simpler rules for the smallest tier. At least 20% of funds should go to grants of $20,000 or less, but that rule does not apply to funds after June 30 of each fiscal year. Funding from the Commodity Credit Corporation is set at $55,000,000 for 2009; $60,000,000 for 2010; $70,000,000 for 2011; $70,000,000 for 2012; and $50,000,000 for 2014 and each year after. Four percent of yearly funds are reserved for the grant program, but any of that 4% not used by April 1 becomes available for loans and grants. An extra $20,000,000 is authorized for each year 2019 through 2023.

Title 7, §8107

Agriculture — Source: USLM XML via OLRC

(a)The Secretary, in consultation with the Secretary of Energy, shall establish a Rural Energy for America Program to promote energy efficiency and renewable energy development for agricultural producers and rural small businesses through—

(1)grants for energy audits and renewable energy development assistance; and

(2)financial assistance for energy efficiency improvements and renewable energy systems.

(b)(1)The Secretary shall make competitive grants to eligible entities to provide assistance to agricultural producers and rural small businesses—

(A)to become more energy efficient; and

(B)to use renewable energy technologies and resources.

(2)An eligible entity under this subsection is—

(A)a unit of State, tribal, or local government;

(B)a land-grant college or university or other institution of higher education;

(C)a rural electric cooperative or public power entity;

(D)a council (as defined in section 3451 of title 16); and

(E)any other similar entity, as determined by the Secretary.

(3)In reviewing applications of eligible entities to receive grants under paragraph (1), the Secretary shall consider—

(A)the ability and expertise of the eligible entity in providing professional energy audits and renewable energy assessments;

(B)the geographic scope of the program proposed by the eligible entity in relation to the identified need;

(C)the number of agricultural producers and rural small businesses to be assisted by the program;

(D)the potential of the proposed program to produce energy savings and environmental benefits;

(E)the plan of the eligible entity for performing outreach and providing information and assistance to agricultural producers and rural small businesses on the benefits of energy efficiency and renewable energy development; and

(F)the ability of the eligible entity to leverage other sources of funding.

(4)A recipient of a grant under paragraph (1) shall use the grant funds to assist agricultural producers and rural small businesses by—

(A)conducting and promoting energy audits; and

(B)providing recommendations and information on how—

(i)to improve the energy efficiency of the operations of the agricultural producers and rural small businesses; and

(ii)to use renewable energy technologies and resources in the operations.

(5)Grant recipients may not use more than 5 percent of a grant for administrative expenses.

(6)A recipient of a grant under paragraph (1) that conducts an energy audit for an agricultural producer or rural small business under paragraph (4) shall require that, as a condition of the energy audit, the agricultural producer or rural small business pay at least 25 percent of the cost of the energy audit, which shall be retained by the eligible entity for the cost of the energy audit.

(c)(1)(A)In addition to any similar authority, the Secretary shall provide—

(i)loan guarantees and grants to agricultural producers and rural small businesses—

(I)to purchase renewable energy systems, including systems that may be used to produce and sell electricity; and

(II)to make energy efficiency improvements; and

(ii)loan guarantees to agricultural producers to purchase and install energy efficient equipment or systems for agricultural production or processing that exceed—

(I)energy efficiency building codes, if applicable;

(II)Federal or State energy efficiency standards, if applicable; and

(III)other energy efficiency standards determined appropriate by the Secretary.

(B)With respect to loan guarantees under subparagraph (A)(ii)—

(i)if no codes or standards described in such subparagraph apply to the energy efficient equipment or system to be purchased or installed pursuant to such subparagraph, the Secretary shall require, to the maximum extent practicable, such equipment or system to meet the same efficiency measurements as the most efficient available equipment or system in the market; and

(ii)the Secretary shall not provide such a loan guarantee for the purchase or installation of any energy efficient equipment or system unless more than one type of such equipment or system is available in the market.

(2)In determining the amount of a loan guarantee or grant provided under this section, the Secretary shall take into consideration, as applicable—

(A)the type of renewable energy system to be purchased;

(B)the estimated quantity of energy to be generated by the renewable energy system;

(C)the expected environmental benefits of the renewable energy system;

(D)the quantity of energy savings expected to be derived from the activity, as demonstrated by an energy audit;

(E)the estimated period of time for the energy savings generated by the activity to equal the cost of the activity;

(F)the expected energy efficiency of the renewable energy system; and

(G)other appropriate factors.

(3)(A)The amount of a grant under this subsection shall not exceed 25 percent of the cost of the activity carried out using funds from the grant.

(B)The amount of a loan guaranteed under this subsection shall not exceed $25,000,000.

(C)The combined amount of a grant and loan guaranteed under this subsection shall not exceed 75 percent of the cost of the activity funded under this subsection.

(D)Using funds made available under paragraphs (1) and (3) of subsection (f), in each fiscal year the Secretary may use for loan guarantees under paragraph (1)(A)(ii) an amount that does not exceed 15 percent of such funds.

(4)(A)In providing loan guarantees and grants under this subsection, the Secretary shall use a 3-tiered application process that reflects the size of proposed projects in accordance with this paragraph.

(B)The Secretary shall establish a separate application process for projects for which the cost of the activity funded under this subsection is not more than $80,000.

(C)The Secretary shall establish a separate application process for projects for which the cost of the activity funded under this subsection is greater than $80,000 but less than $200,000.

(D)The Secretary shall establish a separate application process for projects for which the cost of the activity funded under this subsection is equal to or greater than $200,000.

(E)The Secretary shall establish an application, evaluation, and oversight process that is the most simplified for tier I projects and more comprehensive for each subsequent tier.

(d)The Secretary shall ensure, to the maximum extent practicable, that adequate outreach relating to this section is being conducted at the State and local levels.

(e)(1)Except as provided in paragraph (2), the Secretary shall use not less than 20 percent of the funds made available under subsection (f) to provide grants of $20,000 or less.

(2)Effective beginning on June 30 of each fiscal year, paragraph (1) shall not apply to funds made available under subsection (f) for the fiscal year.

(f)(1)Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section, to remain available until expended—

(A)$55,000,000 for fiscal year 2009;

(B)$60,000,000 for fiscal year 2010;

(C)$70,000,000 for fiscal year 2011;

(D)$70,000,000 for fiscal year 2012; and

(E)$50,000,000 for fiscal year 2014 and each fiscal year thereafter.

(2)(A)Subject to subparagraph (B), of the funds made available for each fiscal year under paragraph (1), 4 percent shall be available to carry out subsection (b).

(B)Funds not obligated under subparagraph (A) by April 1 of each fiscal year to carry out subsection (b) shall become available to carry out subsection (c).

(3)In addition to any other funds made available to carry out this section, there is authorized to be appropriated to carry out this section $20,000,000 for each of fiscal years 2019 through 2023.

Notes & Related Subsidiaries

Editorial Notes

Codification Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246.

Prior Provisions

A prior section 8107, Pub. L. 107–171, title IX, § 9007, May 13, 2002, 116 Stat. 483, related to application of hydrogen and fuel cell technologies, prior to the general amendment of this chapter by Pub. L. 110–246.

Amendments

2018—Subsec. (c)(1). Pub. L. 115–334, § 9007(1)(A), amended par. (1) generally. Prior to amendment, text read as follows: “In addition to any similar authority, the Secretary shall provide loan guarantees and grants to agricultural producers and rural small businesses— “(A) to purchase renewable energy systems, including systems that may be used to produce and sell electricity; and “(B) to make energy efficiency improvements.” Subsec. (c)(3)(D). Pub. L. 115–334, § 9007(1)(B), added subpar. (D). Subsec. (e). Pub. L. 115–334, § 9007(2), substituted “subsection (f)” for “subsection (g)” in pars. (1) and (2). Subsec. (f). Pub. L. 115–334, § 9007(3), redesignated subsec. (g) as (f) and struck out former subsec. (f). Prior to amendment, text of subsec. (f) read as follows: “Not later than 4 years after the date of enactment of the Food, Conservation, and Energy Act of 2008, the Secretary shall submit to Congress a report on the implementation of this section, including the outcomes achieved by projects funded under this section.” Subsec. (f)(3). Pub. L. 115–334, § 9007(4), substituted “2019 through 2023” for “2014 through 2018”. Subsec. (g). Pub. L. 115–334, § 9007(3), redesignated subsec. (g) as (f). 2014—Subsec. (b)(2)(D), (E). Pub. L. 113–79, § 9007(a)(1), added subpar. (D) and redesignated former subpar. (D) as (E). Subsec. (c)(3), (4). Pub. L. 113–79, § 9007(a)(2), added par. (4), redesignated former par. (4) as (3), and struck out former par. (3) which related to grants to agricultural producers or rural small businesses to conduct feasibility studies. Subsec. (g)(1)(E). Pub. L. 113–79, § 9007(b)(1), added subpar. (E). Subsec. (g)(3). Pub. L. 113–79, § 9007(b)(2), substituted “$20,000,000 for each of fiscal years 2014 through 2018” for “$25,000,000 for each of fiscal years 2009 through 2013”. 2013—Subsec. (g)(3). Pub. L. 112–240 substituted “2013” for “2012”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2013 AmendmentAmendment by Pub. L. 112–240 effective Sept. 30, 2012, see section 701(j) of Pub. L. 112–240, set out in a 1-Year Extension of Agricultural Programs note under section 8701 of this title.

Effective Date

Enactment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as a note under section 8701 of this title.

§8107 Rural Energy for America Program

Summary

Title 7, §8107

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata