USDA Issues Final Rule with Comment Period Ahead of Opening the Application Window for Rural Energy for America Program

The U.S. Department of Agriculture is taking steps to advance the Trump Administration’s commitment to unleashing American energy and economic prosperity and is streamlining program delivery for the Rural Energy for America Program (REAP). Rural Development through the Rural Business Cooperative Service (RBCS) is issuing a final rule with comment period that will simplify the application process, reduce risk to the agency, and protect taxpayer dollars.

“The final rule from USDA will restore integrity and stability to the Rural Energy for America Program. For too long many applicants have prioritized unreliable energy sources and have not fully delivered on their stated goals, as of today that ends,” said Secretary of Agriculture Brooke L. Rollins. “President Trump is committed to an energy dominant future for America and it starts with our rural communities, USDA stands ready to deliver on this goal.”

“This rule cuts the red tape so that farmers and rural small businesses can spend less time and money navigating paperwork and more time investing in their operations,” said Under Secretary for Rural Development Glen R. Smith. “At the same time, we’re protecting productive American farmland from oversized solar developments and ensuring taxpayer-supported energy investments don’t put components from foreign adversaries on American farms. REAP should work for rural America, not foreign supply chains or projects that take good farmland out of production.”

Important changes to program requirements include:

• Implementation of the Agriculture Secretary Brooke Rollins’ direction to disincentivize solar photovoltaic and wind energy systems on cropland.
• Requiring projects to be fully built, operational, and demonstrating performance before applying. This ensures that the applicant can demonstrate the project’s actual documented output, energy savings, costs, and system performance.
• Multilocation projects and specific application of certain technologies are now ineligible.
• Implementation of a single streamlined national competition process to simplify program administration and prioritize projects delivering verifiable results.
• A planned online application portal will significantly decrease burden for applicants by shortening application length and review times across the program.

Applications with a Form 1940-1 “Request for Obligation of Funds” signed by the Applicant and the Agency prior to the effective date of this

regulation will continue to be processed, provided that their project remains in line with applicable terms and conditions. Each person or entity is subject to maximum amount of grant assistance per Federal fiscal year. Entities that share common management or ownership, regardless of percent owned, either directly or indirectly through another entity or person, are considered one entity for which aggregate funding cannot exceed the applicable dollar limit.

Stay tuned for the publication of the annual program notices which will announce application window open and close dates.

The REAP Program provides guaranteed loan and grant funding to agricultural producers and rural small businesses for energy systems or to make energy efficiency improvements. For more information on this program visit https://www.rd.usda.gov/programs-services/energy-programs or contact your State Energy Coordinator.