II 112th CONGRESS 2d Session S. 2225 IN THE SENATE OF THE UNITED STATES March 22, 2012 Mr. Franken (for himself and Mr. Harkin) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry A BILL To amend the Farm Security and Rural Investment Act of 2002 to reauthorize and improve the Rural Energy for America Program.

1.

Rural Energy for America Program

Section 9007 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8107) is amended— (1)in subsection (b)(2)— (A)in subparagraph (C), by striking and at the end; (B)by redesignating subparagraph (D) as subparagraph (E); and (C)by inserting after subparagraph (C) the following: (D)a nonprofit organization; and ; (2)in subsection (c)— (A)by striking paragraph (1) and inserting the following: (1)

Loan guarantee and grant program

(A)

In general

In addition to any similar authority, the Secretary shall provide loan guarantees and grants to agricultural producers and rural small businesses— (i)to purchase renewable energy systems, including— (I)systems that may be used to produce and sell electricity, such as for agricultural or residential purposes; and (II)unique components of renewable energy systems; and (ii)to make energy efficiency improvements. (B)

Tiered application process

(i)

In general

In providing loan guarantees and grants under this subsection, the Secretary shall use a 3-tiered application process that reflects the sizes of proposed projects in accordance with this subparagraph. (ii)

Tier 1

The Secretary shall establish a separate application process for projects for which the cost of the activity funded under this subsection is not more than $80,000. (iii)

Tier 2

The Secretary shall establish a separate application process for projects for which the cost of the activity funded under this subsection is greater than $80,000 but less than $200,000. (iv)

Tier 3

The Secretary shall establish a separate application process for projects for which the cost of the activity funded under this subsection is equal to or greater than $200,000. (v)

Application process

The Secretary shall establish an application, evaluation, and oversight process that is most simplified for tier I projects and more comprehensive for each subsequent tier. ; (B)in paragraph (2)— (i)in subparagraph (C), by inserting and public health before benefits; and (ii)by striking paragraph (F) and inserting the following: (F)the natural resource conservation benefits of the renewable energy system; and ; (C)in paragraph (3)— (i)in subparagraph (A), by inserting in an amount not to exceed $100,000 per grant after in the form of grants; and (ii)by striking subparagraph (C); (D)in paragraph (4)(C), by striking 75 percent of the cost and inserting all eligible costs; and (E)by adding at the end the following: (5)

Requirement

In carrying out this section, the Secretary shall not require a second meter for on-farm residential portions of rural projects connected to the grid. ; (3)in subsection (f)— (A)by striking Not later and inserting the following: (1)

In general

Not later ; and (B)by adding at the end the following: (2)

Subsequent report

Not later than 4 years after the date of enactment of this paragraph, the Secretary shall submit to Congress a report on activities carried out under this section, including the outcomes achieved by projects funded under this section. ; and (4)in subsection (g)— (A)in paragraph (1)(D), by striking for fiscal year 2012 and inserting for each of fiscal years 2012 through 2017; and (B)in paragraph (3)— (i)by striking this section $25,000,000 and inserting “this section— (A)$25,000,000 ; (ii)by striking the period at the end and inserting a ; and; and (iii)by adding at the end the following: (B)$100,000,000 for each of fiscal years 2013 through 2017. .