Advocates seek to boost clean energy program in latest Farm Bill renewal

Drew Bowman’s free range turkeys don’t use much electricity.

However, getting your meat to customers, from slaughter and processing to packaging and refrigeration, is an extremely energy-intensive process.

Rising electricity prices have been one of the biggest factors driving up turkey farmers’ costs in recent years. Bowman, co-owner of Bowman & Landes Turkeys in New Carlisle, Ohio, is thankful for solar power.

Three solar arrays, including a 220-kilowatt system paid in part with a $59,000 grant from the Federal Rural Energy Assistance Program (REAP), provide about half of the farm’s electricity. This saves Bowman & Landes approximately $25,000 per year in energy costs.

“It’s a nice addition to our business and farm,” Bowman said.

The turkey farm and six other projects are highlighted in a new report on REAP by the nonprofit Environmental Law & Policy Center, which is campaigning for reform as Congress considers its reauthorization in the latest Farm Bill.

REAP offers grants or a combination of guaranteed loans and grants. More than 22,000 projects have been funded under the 20-year-old program to date. Under the Farm Bill 2018, grants can cover up to 25% of the cost of an eligible project. The Inflation Reduction Act 2022 allows funding of up to 50%.

“What we are recommending is that Congress harmonize these two laws to make them easier for everyone,” Andy Olsen, a policy supporter for the Environmental Law & Policy Center, said on Feb. 23 at a panel for the Agricultural Outlook Forum USDA .

According to Deborah Yocum, a credit and grants analyst for rural development projects at the USDA, the Inflation Mitigation Act also doubled the maximum grant amount to $500,000 for efficiency projects and $1 million for renewable energy systems.

Mandatory funding for REAP under the 2018 Farm Bill is $50 million per year. The program has generally enjoyed bipartisan support, although Farm Bill reapproval often faces hurdles as it encompasses billions in policy spending that dictate federal policies on nutrition, family nutritional support, biofuels, land use and more.

The 2022 Inflation Reduction Act provides approximately $2 billion in additional funding for clean energy-focused REAP projects, including technical assistance.

REAP’s focus on clean energy “is really critical because of the role that climate change is having in creating significant negative impacts on rural communities — both farming and rural businesses,” said Karama Neal, administrator of the Rural Business-Cooperative USDA service.

Among other things, seasonal changes can affect pollinator growth patterns and habits, Olsen said. Heat waves, floods and droughts are also a problem in many places. “We see that many players in the market want a low-carbon footprint of the products they sell,” he added.

“We’re all about being environmentally conscious, so we’re trying to leave a green footprint,” Bowman said, but economics also played a big part in the decision to install solar and apply for REAP funding.

“We’d like to keep the farm going,” Bowman said. His great-grandfather bought the property in 1915 and an aunt still lives there. Bowman & Landes Turkeys was officially established in 1948 and members of his and Landes families continue to work for the company 75 years later.

Solar panels “save us energy costs in the long run,” Bowman said. Net metering also allows the company to sell excess energy back to the grid. The panels installed in 2020 are rated for about twice the power of the panels first installed in 2011, he added. “It will be cheaper.”

overcome barriers

As helpful as the REAP program has been, barriers to participation remain. Many farmers and small businesses can find the application process daunting. This is especially true when it comes to technical information on cost estimates, projected energy savings, financial criteria and more.

Smaller farms may not have enough resources to control the process. And farms owned by black Americans and other people of color often operate on these smaller scales.

“Most underrepresented farmers don’t have the supportive resources to apply for large grants or even small or medium-sized grants,” said Ariella Brown, who has previously worked with the Agraria Center for Regenerative Farming and has chaired black farming conferences in Ohio from 2020 through 2022.

At the Feb. 23 panel, Neal emphasized the USDA’s commitment to the Biden administration’s Justice40 initiative, which states that 40% of all economic benefits from government programs should go to disadvantaged communities.

“Outreach is definitely key,” Yocum said. Comments from stakeholders will also help the agency make changes to the REAP program, including decisions on who is eligible for the highest 50% funding allowed under the Anti-Inflation Act.

“We advocate that this is a sliding scale that reflects the goals of the program,” Olsen said. Factors he believes should include whether applicants are members of historically disadvantaged groups or underserved communities, and climate change and mitigation risks.

Generally, a USDA energy coordinator in each state serves as a “frontline” for questions, help with applications, and so on, Yocum said.

Discussions are also underway to streamline the application process, Olsen said. One idea is a simplified rebate program for pre-approved technologies, including “simple” energy efficiency projects like LED lighting or weathering. “The whole idea here is to expand the program.”

Faster disbursement of grant funds could also be helpful. REAP grants generally require an upfront payment or bridging loan, Olsen said.

The Environmental Law & Policy Center also wants zero-carbon electrification projects to be given priority. And a program like EPA’s Energy Star should educate buyers about the energy needs and costs of farm equipment, Olsen said. “We need to push manufacturing and push technology.”

“In the future we will certainly look at other solar projects to try to become less energy dependent on the grid and more dependent on our solar panels,” Bowman said.

This article first appeared on Energy News Network and is republished here under a Creative Commons license.