7 U.S.C. 8107a

Page 1907

TITLE 7—AG RICULTURE

§ 8107. Rural Energy for America Program
(a) Establishment
The Secretary, in consultation with the Secretary of Energy, shall establish a Rural Energy
for America Program to promote energy efficiency and renewable energy development for
agricultural producers and rural small businesses through—
(1) grants for energy audits and renewable
energy development assistance; and
(2) financial assistance for energy efficiency
improvements and renewable energy systems.
(b) Energy audits and renewable energy development assistance
(1) In general
The Secretary shall make competitive
grants to eligible entities to provide assistance to agricultural producers and rural small
businesses—
(A) to become more energy efficient; and
(B) to use renewable energy technologies
and resources.
(2) Eligible entities
An eligible entity under this subsection is—
(A) a unit of State, tribal, or local government;
(B) a land-grant college or university or
other institution of higher education;
(C) a rural electric cooperative or public
power entity; and
(D) any other similar entity, as determined by the Secretary.
(3) Selection criteria
In reviewing applications of eligible entities
to receive grants under paragraph (1), the Secretary shall consider—
(A) the ability and expertise of the eligible
entity in providing professional energy audits and renewable energy assessments;
(B) the geographic scope of the program
proposed by the eligible entity in relation to
the identified need;
(C) the number of agricultural producers
and rural small businesses to be assisted by
the program;
(D) the potential of the proposed program
to produce energy savings and environmental benefits;
(E) the plan of the eligible entity for performing outreach and providing information
and assistance to agricultural producers and
rural small businesses on the benefits of energy efficiency and renewable energy development; and
(F) the ability of the eligible entity to leverage other sources of funding.
(4) Use of grant funds
A recipient of a grant under paragraph (1)
shall use the grant funds to assist agricultural
producers and rural small businesses by—
(A) conducting and promoting energy audits; and
(B) providing recommendations and information on how—
(i) to improve the energy efficiency of
the operations of the agricultural producers and rural small businesses; and

§ 8107

(ii) to use renewable energy technologies
and resources in the operations.
(5) Limitation
Grant recipients may not use more than 5
percent of a grant for administrative expenses.
(6) Cost sharing
A recipient of a grant under paragraph (1)
that conducts an energy audit for an agricultural producer or rural small business under
paragraph (4) shall require that, as a condition
of the energy audit, the agricultural producer
or rural small business pay at least 25 percent
of the cost of the energy audit, which shall be
retained by the eligible entity for the cost of
the energy audit.
(c) Financial assistance for energy efficiency improvements and renewable energy systems
(1) In general
In addition to any similar authority, the
Secretary shall provide loan guarantees and
grants to agricultural producers and rural
small businesses—
(A) to purchase renewable energy systems,
including systems that may be used to
produce and sell electricity; and
(B) to make energy efficiency improvements.
(2) Award considerations
In determining the amount of a loan guarantee or grant provided under this section, the
Secretary shall take into consideration, as applicable—
(A) the type of renewable energy system to
be purchased;
(B) the estimated quantity of energy to be
generated by the renewable energy system;
(C) the expected environmental benefits of
the renewable energy system;
(D) the quantity of energy savings expected to be derived from the activity, as
demonstrated by an energy audit;
(E) the estimated period of time for the energy savings generated by the activity to
equal the cost of the activity;
(F) the expected energy efficiency of the
renewable energy system; and
(G) other appropriate factors.
(3) Feasibility studies
(A) In general
The Secretary may provide assistance in
the form of grants to an agricultural producer or rural small business to conduct a
feasibility study for a project for which assistance may be provided under this subsection.
(B) Limitation
The Secretary shall use not more than 10
percent of the funds made available to carry
out this subsection to provide assistance described in subparagraph (A).
(C) Avoidance of duplicative assistance
An entity shall be ineligible to receive assistance to carry out a feasibility study for
a project under this paragraph if the entity
has received other Federal or State assistance for a feasibility study for the project.

§8108

TITLE 7—AG RICULTURE

(4) Limits
(A) Grants

Page 1908

tion $25,000,000 for each of fiscal years 2009
through 2012.

The amount of a grant under this subsection shall not exceed 25 percent of the
cost of the activity carried out using funds
from the grant.

(Pub. L. 107-171, title IX, §9007, as added Pub. L.
110-234, title IX, §9001(a), May 22, 2008, 122 Stat.
1315, and Pub. L. 110-246, §4(a), title IX, §9001(a),
June 18, 2008, 122 Stat. 1664, 2077.)

(B) Maximum amount of loan guarantees

REFERENCES IN TEXT
The date of enactment of the Food, Conservation, and
Energy Act of 2008, referred to in subsec. (f), is the date
of enactment of Pub. L. 110-246, which was approved
June 18, 2008.

The amount of a loan guaranteed under
this subsection shall not exceed $25,000,000.

(C) Maximum amount of combined grant and
loan guarantee
The combined amount of a grant and loan
guaranteed under this subsection shall not
exceed 75 percent of the cost of the activity
funded under this subsection.

(d) Outreach
The Secretary shall ensure, to the maximum
extent practicable, that adequate outreach relating to this section is being conducted at the
State and local levels.

(e) Lower-cost activities
(1) Limitation on use of funds
Except as provided in paragraph (2), the Secretary shall use not less than 20 percent of the
funds made available under subsection (g) to
provide grants of $20,000 or less.

(2) Exception
Effective beginning on June 30 of each fiscal
year, paragraph (1) shall not apply to funds
made available under subsection (g) for the fiscal year.

(f) Report
Not later than 4 years after the date of enactment of the Food, Conservation, and Energy Act
of 2008, the Secretary shall submit to Congress a
report on the implementation of this section, including the outcomes achieved by projects funded under this section.

(g) Funding
(1) Mandatory funding
Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out
this section, to remain available until expended—
(A) $55,000,000 for fiscal year 2009;
(B) $60,000,000 for fiscal year 2010;
(C) $70,000,000 for fiscal year 2011; and
(D) $70,000,000 for fiscal year 2012.

(2) Audit and technical assistance funding
(A) In general
Subject to subparagraph (B), of the funds
made available for each fiscal year under
paragraph (1), 4 percent shall be available to
carry out subsection (b).

(B) Other use
Funds not obligated under subparagraph
(A) by April 1 of each fiscal year to carry out
subsection (b) shall become available to
carry out subsection (c).

(3) Discretionary funding
In addition to any other funds made available to carry out this section, there is authorized to be appropriated to carry out this sec-

CODIFICATION
Pub. L. 110-234 and Pub. L. 110-246 enacted identical
sections. Pub. L. 110-234 was repealed by section 4(a) of
Pub. L. 110-246.
PRIOR PROVISIONS
A prior section 8107, Pub. L. 107-171, title IX, §9007,
May 13, 2002, 116 Stat. 483, related to application of hydrogen and fuel cell technologies, prior to the general
amendment of this chapter by Pub. L. 110-246.

§ 8108. Biomass research and development
(a) Definitions
In this section:

(1) Biobased product
The term "biobased product" means—
(A) an industrial product (including chemicals, materials, and polymers) produced
from biomass; or
(B) a commercial or industrial product (including animal feed and electric power) derived in connection with the conversion of
biomass to fuel.

(2) Demonstration
The term "demonstration" means demonstration of technology in a pilot plant or
semi-works scale facility, including a plant or
facility located on a farm.

(3) Initiative
The term "Initiative" means the Biomass
Research and Development Initiative established under subsection (e).

(b) Cooperation and coordination in biomass research and development
(1) In general
The Secretary of Agriculture and the Secretary of Energy shall coordinate policies and
procedures that promote research and development regarding the production of biofuels and
biobased products.

(2) Points of contact
To coordinate research and development
programs and activities relating to biofuels
and biobased products that are carried out by
their respective departments—
(A) the Secretary of Agriculture shall designate, as the point of contact for the Department of Agriculture, an officer of the
Department of Agriculture appointed by the
President to a position in the Department
before the date of the designation, by and
with the advice and consent of the Senate;
and
(B) the Secretary of Energy shall designate, as the point of contact for the De-