[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.''.
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