2004 Funding for
Rural Renewable
Energy Development Available
Rural America and Energy Security Needs
Not Yet Reflected
in Future Farm Bill Funding
Seattle, WA - Today
the US Department of Agriculture (USDA) released
its fiscal year 2004 (FY04) Notice of Funding Availability
(NOFA) for the Renewable Energy and Energy Efficiency
Improvements program (Section 9006). A provision
of the Energy Title of the 2002 Farm Bill, Section
9006 will provide $23 million to assist eligible
farmers, ranchers, and small rural businesses in
purchasing renewable energy systems and energy
efficiency projects. However, future funding for
this program is threatened as Washington DC lawmakers
look to scale back record budget deficits.
This past February, the administration’s
budget proposed a cut of $12 million to Section
9006, leaving only $10.7 million for FY05. Created
in the 2002 Farm Bill, 9006 is a grant, loan, and
loan guarantee program that was originally funded
at $23 million per year for FY03 through FY07.
“Although full funding for
this year’s round of awards is a welcome
development, rural America is watching funding
slip from out the bottom of this and other Farm
Bill energy programs in next year’s [FY05]
budget,” stated Heather Rhoads-Weaver, Executive
Director of Northwest SEED (Sustainable Energy
for Economic Development).
With fewer restrictions on small
business proposals in the 2004 NOFA and a longer
application period of 75 days, Northwest SEED predicts
that growing interest in renewable energy will
keep local USDA offices busy. “People shouldn’t
hesitate to apply,” said Rhoads-Weaver. “It
is our hope that this year’s increase in
project applications will raise the eyebrows of
our elected officials in the Northwest enough to
act to restore full funding for Section 9006 in
the 2005 appropriations process.”
The potential cuts in future funding
may impact Northwest farmers, county projects,
and community members in years to come as they
eagerly await assistance to develop their vast
potential for clean, local energy production. In
2003, $21.7 million was awarded to 114 agricultural
producers and rural small businesses in 24 states,
$1.9 million of which went to projects in the Northwest.
If the proposed budget for FY05 is approved as
is, Northwest communities would only see a fraction
of current funding in future NOFAs.
Northwest SEED helped Our Wind Co-op
secure 9006 funding in 2003 to cover 20% of the
project cost of eight small wind turbines including
one installed by third generation Montana rancher
Jess Alger. As a result he expects wind to power
most of his home and farming operations with the
12,000 kWh produced each year on his land in Stanford.
While Alger’s and others’ current awards
are secured, he is concerned that the region and
the country may miss important opportunities in
the coming years. “The nation needs policy
that is focused on renewable energy and continuing
to fund Section 9006 is a step in that direction.
Funding more renewable energy projects, like wind
sites, would reduce carbon dioxide emissions and
I think that is very important,” stated Alger.
Northwest SEED can assist potential
applicants in evaluating their eligibility for
funding and identifying ways to make their proposals
more competitive. “Your best step is to apply
for funding correctly and let your elected officials
know that you are aware of the proposed budget
cuts for future years,” said Rhoads-Weaver.
When asked why these programs are important, she
said it’s a simple solution to complex economic
and national security concerns. “Renewable
energy projects are a real means to jump start
the economy for rural America and that is the kind
of security that farm country can count on.”
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