Jim Brownlee (202) 720-2091

Jay Fletcher (202) 690-0498

**USDA RURAL DEVELOPMENT INVITES APPLICATIONS**

**FOR RENEWABLE ENERGY LOANS AND GRANTS**

WASHINGTON, March 6, 2008 - Agriculture Secretary Ed Schafer announced
during an international renewable energy conference that USDA will
accept \$220.9 million in loan and grant applications within USDA's
Renewable Energy Systems and Energy Efficiency Improvements Program.

"As demand for energy rises, these renewable energy loans and grants
help farms and rural small businesses increase their investment in
renewable energy initiatives," said Schafer, speaking at the Washington
International Renewable Energy Conference (WIREC). "Energy efficiency
wisely applies our resources, and energizes wealth-creation
opportunities with more jobs throughout rural America."

Loan guarantees and grants are available to agricultural producers and
rural small businesses to purchase and install renewable energy systems
or to make energy efficiency improvements.

Eligible applicants may seek loan guarantees to cover up to 50 percent
of a project's cost, not to exceed \$10 million. Grants are available
for up to 25 percent of a project's cost, not to exceed \$250,000 for
energy efficiency improvements and \$500,000 for renewable energy
systems. USDA Rural Development has invested \$674 million in more than
1,763 renewable energy and energy efficiency projects since 2001. These
investments include ethanol, biodiesel, wind, solar, geothermal, methane
gas recovery systems and biomass.

The Bush administration's Farm Bill proposal recommends a \$1.6 billion
increase in renewable energy funding. Were Congress to agree, cellulosic
ethanol development proposals would receive a \$2.1 billion loan
guarantee program, while \$500 million would be available for bioenergy
and bioproducts research programs, as well as another \$500 million for
renewable energy development and energy efficiency grants. Details are
available at [www.usda.gov/farmbill](http://www.usda.gov/farmbill) .

USDA will issue one grant solicitation for two separate competitions in
FY 2008. For the first competitive window, grant-only applications must
be submitted no later than April 15, 2008. For the second competitive
window, grant-only applications must be submitted no earlier than April
16, 2008, and no later than June 16, 2008. Applications for loan
guarantees, as well as those for loan/grant combinations must be
completed and submitted to the appropriate USDA Rural Development State
Office no later than June 16, 2008.

Further information on rural programs is available at a local USDA Rural
Development office or by visiting USDA's web site at
[http://www.rurdev.usda.gov](http://www.rurdev.usda.gov/) .

USDA Rural Development's mission is to increase economic opportunity and
improve the quality of life for rural residents. Rural Development has
invested nearly \$91 billion since 2001 for equity and technical
assistance to finance and foster growth in homeownership, business
development, and critical community and technology infrastructure. More
than 1.7 million jobs have been created or saved through these
investments. Further information on rural programs is available at a
local USDA Rural Development office or by visiting USDA\'s web site at
http://www.rurdev.usda.gov.

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