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The "Farm Security and Rural Investment Act of 2002," better known as the 2002 Farm Bill, includes a number of provisions for renewable energy, especially in the Energy Title of the bill. Most of these are for bio-related technologies or products, but there are several items that directly fund or benefit wind energy systems.
Wind Energy Provisions in 2002 Farm Bill
The Farm Bill includes a number of financial incentives applicable to wind. Specifically, the following programs are funded or enabled by the bill:
Provides funding assistance to help farmers, ranchers, and rural small businesses purchase renewable energy systems and make energy efficiency improvements (Farm Bill Section 9006). Congress authorized this program for five years and has funded it at roughly $23 million per year in each of fiscal years 2003 to 2007. During the first four years, the U.S. Department of Agriculture has awarded $84 million in grants and $34 million in loan guarantees to 807 projects in 44 states. Grants may not exceed 25% of project costs and grants and loans together may not exceed 50% of the project.
Extends USDA Rural Development loans and loan guarantees under the Consolidated Farm and Rural Development Act to wind energy systems (Farm Bill Section 6013).
Defines wind power located on ranches and farms as a "value-added agricultural product." This designation allows for grants up to $100,000 for project planning activities and up to $300,000 for working capital. Approximately $19.3 million in competitive grant funds is available in fiscal year 2007. (Sec. 6401)
Allows farmers to install wind turbines on Conservation Reserve Program (CRP) lands subject to the approval of the USDA. CRP payments are not reduced based on this activity. USDA can specify the number and location of turbines and will only allow if consistent with CRP goals for the land. (Sec. 2101)
News
- 2008 Notice of Funds Availability (NOFA) Inviting Applications for Renewable Energy Systems and Energy Efficiency Improvements Grants and Guaranteed Loans (PDF 61 KB) Download Adobe Reader
March 6, 2008
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