USDA Section 9006 Renewable Energy Systems & Energy Efficiency Improvements Program

Section 9006 of the 2002 Farm Bill authorized the USDA Rural Business - Cooperative Service to assist agricultural producers and rural small businesses reduce energy costs and consumption and help meet the nation's critical energy needs. Funding requests must be related to renewable energy or energy efficiency improvements. Renewable energy projects include solar electric.
An eligible applicant must be an agricultural producer or rural small business. An agricultural producer is an individual or entity directly engaged in the production of agricultural products, including crops, livestock, forestry products, hydroponics, nursery stock, or aquaculture whereby 50 percent or greater of their gross income is derived from the operations.
A small business is a private entity including a sole proprietorship, partnership, corporation or cooperative located in a rural area (with a population less than 50,000). The small business does not have to be involved in an agriculturally related business, but does have to meet the SBA small business definition.
Grant funding requests must not exceed 25% of the eligible project costs. Grant funding requires that the applicant demonstrate financial need. Eligible projects must be for the purchase of a renewable energy system or to make energy efficiency improvements. Loan guarantee funding is also available for up to 50% of eligible project costs.
All eligible projects must utilize a pre-commercial or commercially available, replicable and feasible technology (not research and development). The applicant must be the owner of the project and control the operation and maintenance of the proposed project.
Paul Stillwaggon,
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