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Rural Energy for America Program (REAP) Improvement Act of 2021
12/30/2022, 3:47 PM
Summary of Bill HR 4162
The key provisions of the REAP Improvement Act of 2021 include increasing the funding levels for the program, expanding eligibility criteria to include more types of renewable energy projects, and streamlining the application process to make it easier for rural businesses to access funding. Additionally, the bill seeks to prioritize projects that benefit underserved communities and promote environmental sustainability.
The bill has received bipartisan support in Congress, with lawmakers from both parties recognizing the importance of supporting rural communities and promoting clean energy initiatives. Supporters of the bill argue that investing in renewable energy projects in rural areas not only helps reduce energy costs for businesses and farmers, but also creates jobs and stimulates economic growth in these communities. Overall, the REAP Improvement Act of 2021 aims to build on the success of the existing REAP program and provide additional resources and support for rural communities to transition to cleaner and more sustainable energy sources. By expanding eligibility criteria, increasing funding levels, and streamlining the application process, the bill seeks to make it easier for rural businesses to access the benefits of the program and contribute to a more environmentally friendly future.
Congressional Summary of HR 4162
Rural Energy for America Program (REAP) Improvement Act of 2021
This bill modifies and provides additional funding for the Rural Energy for America Program (REAP), with a particular focus on greenhouse gas reduction. Under the program, the Department of Agriculture (USDA) supports energy efficiency and renewable energy development for agricultural producers and rural small businesses.
As part of the selection criteria for a grant or loan from the program, USDA must consider the potential of a project to reduce greenhouse gas emissions and provide other climate benefits. The bill also prohibits USDA from imposing restrictions on the quantity of energy that is generated under a grant or loan.
Further, the bill expands the program by making agricultural producer cooperatives, electric cooperatives, and nongovernmental organizations eligible for financial assistance under the program. The bill also (1) increases from 25% to 50% the portion of a project's cost that may be covered by a grant, and (2) establishes a reserve fund to provide grants and other financial assistance related to underutilized renewable energy technologies.
In addition, USDA must study dual-use energy systems (i.e., systems where both renewable energy and agricultural production occur on the same piece of land) and ensure that grant and loan recipients receive outreach, technical assistance, and education concerning such systems.
