The farm bill has quite a bit of money for renewable energy and energy efficiency programs in rural America. One  such option are the Rural Energy For America Program (REAP) Grants.

REAP grants help agricultural producers and rural small businesses purchase and install renewable energy systems and make energy efficiency improvements (RES/EEIS), as well as pay for energy audits and renewable energy development assistance (EA/RDA).

Right now, the REAP program is funded for $80 million -  $55 million dollars, plus another $25 million in discretionary funding.

APPLY NOW.

The deadline is July 31, 2009.

Hurry up and get started, if you haven't already.

Fortunately, Kansas has great USDA officials in all parts of the state willing and able to help you through the process - contact your local USDA office.

Check out more REAP info here (.pdf), and use this checklist (.pdf) to help with the application process.

More info from the USDA website on the RES and EEIS portions of the grants:

How much are the grants?
The grants are awarded on a competitive basis and can be up to 25% of total eligible project costs. Grants are limited to $500,000 for renewable energy systems and $250,000 for energy efficiency improvements. Grant requests as low as $2,500 for renewable energy systems and $1,500 for energy efficiency improvements will be considered. At least 20% of the grant funds awarded must be for grants of $20,000 or less.

Who is eligible?
The program is designed to assist farmers, ranchers and rural small businesses that are able to demonstrate financial need. All agricultural producers, including farmers and ranchers, who gain 50% or more of their gross income from the agricultural operations are eligible. Small businesses that are located in a rural area can also apply. Rural electric cooperatives may also be eligible to apply.

What types of projects are eligible?
Most rural projects that reduce energy use and result in savings for the agricultural producer or small business are eligible as energy efficiency projects. These include projects such as retrofitting lighting or insulation, or purchasing or replacing equipment with more efficiency units. Eligible renewable energy projects include projects that produce energy from wind, solar, biomass, geothermal, hydro power and hydrogen-based sources. The projects can produce any form of energy including, heat, electricity, or fuel.

For all projects, the system must be located in a rural area, must be technically feasible, and must be owned by the applicant.

Examples of Energy Efficiency eligible projects

• Building Insulation
• Lighting
• HVAC Systems
• Water Heating
• Power Systems
• Refrigeration
• Grain Drying and Curing
• Irrigation
• Fans and Blowers
• Compressors
• Pumps
• Windows

Examples of Renewable Energy eligible projects

• Biomass, Bio-energy
• Anaerobic digester
• Geothermal, electric generation
• Geothermal, direct use
• Hydrogen
• Solar, small  and large
• Wind, small and large

For more info on the energy audits and renewables development REAP funds, click here.