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.''.
Amends the Farm Security and Rural Investment Act of 2002 regarding the Rural Energy for America Program to: (1) extend the Program through FY2017, (2) make nonprofit organizations eligible for assistance, (3) make assistance available to purchase unique components of renewable energy systems, (4) create a tiered loan and grant application process that reflects project size, (5) prohibit requiring a second meter for on-farm residential portions of rural projects connected to the energy grid, (6) permit the combined amount of a grant and a loan guarantee to cover all eligible activity costs, and (7) limit individual grant amounts for feasibility studies.
A bill to amend the Farm Security and Rural Investment Act of 2002 to reauthorize and improve the Rural Energy for America program.