[Congressional Record Volume 158, Number 48 (Thursday, March 22, 2012)]
[Senate]
[Pages S2002-S2003]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. FRANKEN (for himself and Mr. Harkin):
  S. 2225. A bill to amend the Farm Security and Rural Investment Act 
of 2002 to reauthorize and improve the Rural Energy for America 
program; to the Committee on Agriculture, Nutrition, and Forestry.
  Mr. FRANKEN. I rise to introduce the Rural Energy for America Program 
Reauthorization Act, along with my friend Senator Harkin from Iowa.
  Farmers and rural businesses form the backbone of this country, and 
rural communities are particularly crucial to Minnesota's culture and 
economy. In fact, in my State, one out of every five jobs is related to 
the agricultural economy.
  We all rely on farmers for our food. It is thanks to farmers that 
when we go to the grocery store there is an abundance of fresh food at 
cheaper prices than in many other countries. While family farmers and 
rural businesses work hard to keep our shelves stocked, they do so 
under difficult conditions. Weather and disease can wipe out a crop, 
profit margins can be small, and fluctuating market prices for their 
products can be devastating to a family farmer.
  Farm work is also very energy intensive, so when energy and gas 
prices rise, farmers have to make tough choices. High energy prices 
mean laying off farm workers, increasing crop prices, if they can, and 
squeezed budgets all around. To make matters worse, many of our 
government programs that help manage rising energy prices are under 
attack and on the budget chopping block.
  REAP, or the Rural Energy for America Program, can help farmers 
manage the cost of energy. The bill I am introducing today will 
reauthorize this important farm bill program that will help farmers and 
rural small businesses continue to cut energy bills and generate 
electricity on site.
  Let me go through a few examples of what REAP projects can look like. 
It is putting solar panels on barns. It is wind turbines in fields. 
There are wind turbines all over Minnesota. It is anaerobic digesters 
on dairy farms which actually use waste to create methane gas and 
electricity. It means energy efficiency improvements in poultry houses 
and geothermal pumps in factories. It means agricultural producers and 
businesses can reduce their costs and generate an additional stream of 
income. It means rural America can make high-tech investments, create 
jobs, and lead the world in producing clean energy. I know in the 
Presiding Officer's State of New Hampshire there is tremendous biomass 
and potential for energy biomass and the low carbon footprint that 
represents.
  The Rural Energy for America Program is a modest program, but it is a 
wise investment that effectively leverages private funds. Since it was

[[Page S2003]]

created in 2002, this program has helped almost 6,000 farmers and small 
businesses across the Nation invest in alternative energy projects. The 
program has generated or saved enough energy to power about 600,000 
homes a year. By providing just $192 million in grants and $165 million 
in loan guarantees, the program has brought in $800 million in private 
and State investments. Plus, the Rural Energy for America Program helps 
create demand for new jobs in rural economies. These are jobs in 
installation and operations and maintenance work--good jobs that rural 
America needs. It also bolsters American energy independence and 
fosters homegrown energy sources such as wind and solar and biomass and 
geothermal instead of foreign oil.
  Shirley Hovda's rural wood finishing and coating business, Quality 
Decorating, in Roseau, MN, is one of the 6,000 that benefited from the 
Rural Energy for America Program over the years. Roseau, in northern 
Minnesota, is cold in the winter and in the fall and in the early 
spring. When Shirley's heating bills spiked, she decided it was time to 
invest in a geothermal heating and cooling system to reduce costs in 
her newly constructed 6,000 square foot facility.
  With the help of a $7,920 grant from the Rural Energy for America 
Program, she was able to purchase and install the geothermal system in 
2008. Over the past 5 years, Shirley has seen her energy bills reduced 
by 40 percent, saving thousands of dollars she has invested in more 
productive parts of her business.
  The bill we are introducing today reauthorizes the Rural Energy for 
America Program to continue helping farmers and small business owners 
such as Shirley to make smart investments in renewable energy and 
energy efficiency. It makes improvements to the program too. While the 
program has had a fantastic impact on the country's rural economy, 
farmers tell me they are facing challenges accessing it. So our bill 
removes barriers while ensuring taxpayer dollars are spent wisely.
  First, our bill simplifies the application process, making it easier 
for farmers and small businesses to access the program's grants and 
loans. The new application process matches the complexity of the 
application to the size of the project. That way, farmers and the USDA 
can avoid unnecessary and costly paperwork if the project doesn't 
warrant it.
  Second, my bill removes a regulation that currently requires farmers 
to use the program's funding to install a second electric meter that 
currently goes unread. In these tight fiscal times, I think it is 
important that every taxpayer dollar is well spent, so the bill will 
eliminate this redundancy and remove an unnecessary burden on program 
participants.
  Third, our bill requires the USDA to include stronger health and 
environmental criteria when evaluating potential projects, and it 
expands startup support and funds for feasibility studies so that 
farmers and businesses can start projects with sound planning.
  We are very grateful for the strong support from the agricultural 
community, including the National Farmers Union, the Minnesota Farmers 
Union, the Environmental Law and Policy Center, the National 
Sustainable Agriculture Coalition, the Agriculture Energy Association, 
the Distributed Wind Alliance, the Minnesota Corn Growers, and the 
Minnesota Soybean Growers.
  With the Chair's indulgence, I have about 30 seconds left. I have an 
inner clock. I think I am up against my 2 minutes, so I wish to say I 
am proud to introduce this legislation with Senator Harkin, who is a 
true champion to farmers here in the Senate. Going forward, I look 
forward to working with all of my colleagues from both sides of the 
aisle to pass this reauthorization as part of the farm bill.
  I see Senator Johanns, the former Secretary of Agriculture, on the 
floor, whom I hope to work with on this legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2225

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 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.''.
                                 ______