Program

Rural Energy for America Program

Category

Energy - Alternative

Subsidy Type

Discretionary, Mandatory

Committees of Jurisdiction

House Agriculture Committee, Senate Agriculture Committee

$50 FY 22 Budget Score (in mil.)
$505 FY 22-31 Budget Score (in mil.)

The Rural Energy for America Program (REAP)—most recently reauthorized by the 2018 Farm Bill—provides loan guarantees and grants for rural small business and agricultural producers to purchase renewable energy systems, energy efficiency improvements, energy audits and feasibility studies. Renewable energy systems include wind, solar, geothermal, hydroelectric, biomass, hydrogen and ocean power. Even though REAP was designed to promote renewable energy sources such as solar and wind, from 2010-2014, nearly a third of REAP funding was spent on the mature corn ethanol and biodiesel industries, anaerobic digesters for livestock operations, grain dryers, biomass energy, irrigation motors, tobacco curing and “other” projects. REAP funding can still go to biomass energy systems, including ethanol, biodiesel and solid biomass fuels—which receive other subsidies—as well as anaerobic digesters.

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