ADVANCING RENEWABLE ENE

ADVANCING RENEWABLE E NE

500097.indd 1 00097.indd 1 
2 ADVANCING RENEWABLE ENERGY

500097.indd 2 00097.indd 2 
ADVANCING RENEWABLE ENE

Advancing ReNewable 

Energy and Energy 

Effi ciency at USDA

I

n the 21st century, America has energy needs that are greater than 

ever before. We face new challenges to increase energy security, 

protect our environment, and create jobs to boost our economy. The 

U.S. Department of Agriculture (USDA) is working every day in every 

way to encourage and support the development, production, and delivery 

of clean, renewable, domestically produced energy. Our efforts cover 

the entire renewable energy supply chain: research and development 

activities; fi nancial assistance to agriculture and forest producers for raising and harvesting energy crops; fi nancing biorefi neries that will produce 

renewable sources of fuel and power; and providing technical and fi nancial 

assistance to agricultural producers and rural small business to assist them in 

becoming more energy effi cient. We are working to lead the way for a clean 

energy future for our country.

500097.indd Sec1:1 00097.indd Sec1:1 
The USDA has a long history of supporting the research and

development of renewable energy resources and is deeply 

involved in and committed to the Nation’s quest for energy security.

The Food, Conservation, and Energy Act of 2008 Act (Farm Bill) provides

over $1 billion of mandatory funding during a 5-year period to support a

comprehensive approach to energy effi ciency and renewable energy development in rural America. The Farm Bill programs were designed to increase

America’s energy security, improve the environment, and strengthen rural

economies through development and production of renewable energy and

the creation of sustainable green jobs.

USDA has many programs to assist farmers, forest landowners, rural 

businesses, rural residents, and the Nation to respond to energy-related 

issues and opportunities. These range from basic scientifi c research to 

the development and commercialization of new technologies. They 

include outreach and education, technical assistance programs, fi nancial 

support for infrastructure, and the adoption of biobased and energy-saving 

products by USDA itself. We support more effi cient farming and sustainable 

feedstock production and management techniques; geothermal facilities; 

solar and wind farms; current and advanced bioenergy production supply 

chains; and biochemical and genomics research. USDA also supports modernization of the rural electric grid to support renewable energy development 

to move renewable electricity to markets, as well as the deployment of smart 

grid technologies.

USDA recognizes that renewable energy, energy effi ciency, and 

conservation programs provide opportunities for economic growth and 

prosperity in rural America. USDA further recognizes that energy conservation in the production of food and other consumable products is important 

to producer and market costs, reduction of greenhouse gas emissions, and 

resource conservation.

How USDA Supports 

Our Energy Future

2 ADVANCING RENEWABLE ENERGY

500097.indd Sec1:2 00097.indd Sec1:2 
USDA draws expertise from more than a dozen USDA agencies and 

offi ces, including: 

 Agricultural Marketing Service 

 Agricultural Research Service

 Departmental Management

 Economic Research Service

 Farm Service Agency

 Forest Service

 Foreign Agricultural Service

 National Agricultural Statistics Service

 Natural Resources Conservation Service

 National Institute of Food and Agriculture 

 Offi ce of the Chief Economist 

 Rural Development, Rural Business and Cooperative Service 

 Rural Development, Rural Housing Service

 Rural Development, Rural Utilities Service

USDA supports the entire supply chain of renewable energy production, 

from feedstock research and development to the consumer, through 

programs in:

 Research and education

 Feedstock development and production

 Feedstock conversion and commercialization

 Renewable electricity production

 Energy effi ciency and conservation

 Other USDA energy-related programs

ADVANCING RENEWABLE ENE

500097.indd Sec1:3 00097.indd Sec1:3 
4 ADVANCING RENEWABLE ENERGY

Research and Education

USDA provides leadership for the facilitation and development ofregional systems for the sustainable production of biofuels and

biobased products through collaboration with a wide range of partners,

including other Federal agencies, State and local agencies, academic

institutions, non-governmental organizations, tribes, and industry. 

By taking an integrated regional systems approach that addresses the 

entire technology and business supply chain, economically, socially, 

and environmentally sustainable systems may be developed to serve 

the unique opportunities that vary from region to region. Toward this 

end, USDA conducts and facilitates research and development programs 

and activities.

Research, Education and Economics (REE)/Agricultural Research Service

(ARS) and Natural Resources and Environment (NRE)/Forest Service (FS)

lead USDA’s intramural research efforts on renewable energy through 

USDA Regional Biomass Research Centers located throughout the country, 

often close to major universities.

REE/National Institute of Food and Agriculture (NIFA) provides leadership

and funding for USDA’s extramural (outside) research, development,

demonstration, education, and outreach activities through both competitive

programs, such as the Agriculture and Food Research Initiative Sustainable

Bioenergy Challenge, the USDA/U.S. Department of Energy (DOE) joint

Biomass Research and Development Initiative (BRDI), the USDA/DOE 

Plant Feedstock Genomics for Bioenergy Program, Small Business 

Innovation Research (SBIR) Program, and non-competitive programs 

supporting universities. NIFA supports programs targeting workforce and 

human capital development for regional systems for the sustainable production of bioenergy and biobased products. NIFA’s support to universities 

provides curricula and training for future scientists, technicians, analysts, 

and managers. (www.nifa.usda.gov) Cooperative Extension personnel work 

with farmers, processors, and rural communities to ensure that information 

on best regional practices relating to feedstock crop production and logistics 

is available.

500097.indd Sec1:4 00097.indd Sec1:4 
ADVANCING RENEWABLE ENE

Chemists collect a sample of 

fungal culture to determine 

whether fermentation inhibitors 

are present after pretreatment of 

wheat straw feedstock.

ADVANCING RENEWABLE EN

500097.indd Sec1:5 00097.indd Sec1:5 
6 ADVANCING RENEWABLE ENERGY

Research and Development

Feedstock Development 

and Production

Assistance is available to support many phases of the feedstock development process, from research through the collection, harvest, storage, 

and transportation phases, as well as the conversion phase. USDA REE, 

Forest Service, and Natural Resources Conservation Service are leading 

advancements by developing new “dedicated energy crops” (e.g., biomass 

sorghum, perennial grasses, energy cane, wood, and oil crops, including 

algae) and funding others’ research in these crops that may be converted 

to second-generation advanced blending fuels (i.e., cellulosic ethanol) and 

third-generation advanced biofuels, such as biogasoline, biodiesel, and aviation fuel, that are compatible with existing distribution infrastructure and 

existing internal combustion engines. The NRCS Plant Materials Program 

has been working on bioenergy feedstock development and production for a 

number of years. We have developed a number of switchgrass varieties and 

are working on other feedstocks as well.

The Farm Service Agency runs the Biomass Crop Assistance Program 

(BCAP), which promotes the cultivation of non-conventional crop biomass 

for heat, power, biobased products, and biofuels. BCAP is authorized to fund 

two main types of activities. First, it will provide funding for producers of 

eligible renewable crops within selected project areas to receive payments 

up to 75 percent of the cost of establishing the crop and annual payments 

for up to 15 years for crop production. Second, it provides up to 2 years of 

funding for agriculture and forest landowners to assist with the cost of collection, harvest, storage, and transportation of the biomass to qualifi ed biomass 

facilities that covert it into heat, power, biobased products, or advanced 

biofuels. (www.fsa.usda.gov/bcap)

500097.indd Sec1:6 00097.indd Sec1:6 
ADVANCING RENEWABLE ENE

Harvesting sweet sorghum: New, 

low-lignin sorghum germplasm 

lines developed by Agricultural 

Research Service and collaborating university scientists are now 

available for bolstering the grain 

crop’s value as both a livestock 

feed and an ethanol resource.

ADVANCING RENEWABLE ENE

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8 ADVANCING RENEWABLE ENERGY

Feedstock Conversion and 

Commercialization

 

Through its NRE/FS and Rural Development grant and loan programs,USDA implements conversion and commercialization strategies

and supports agriculture producers and forest landowners, rural small

businesses, electric cooperatives, and other rural investors in utilizing

renewable resources, such as biomass (ethanol, biodiesel, methane gas

recovery), wind, solar, ocean, hydroelectric, and geothermal power.

USDA regional Biomass Research Centers are developing sustainable supply

chain strategies and science-based implementation plans designed to

accelerate biofuels feedstock production and reduce transaction costs to

feedstock producers and biorefi neries. Regionalized biofuels feedstock

production and conversion systems can minimize transaction costs and

create new rural wealth. USDA is coordinating with DOE to enhance work

underway through DOE’s Regional Feedstock Partnerships and the Bioenergy

Research Centers.

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ADVANCING RENEWABLE ENE

Woody biomass utilization: 

The harvest, sale, offer, trade, 

or utilization of woody biomass 

to produce bioenergy and the 

full range of biobased products 

including lumber, composites, 

paper and pulp, furniture, housing 

components, round wood, ethanol 

and other liquids, chemicals, and 

energy feedstocks. 

ADVANCING RENEWABLE ENE

500097.indd Sec1:9 00097.indd Sec1:9 
10 ADVANCING RENEWABLE ENERGY

USDA Programs Supporting 

Feedstock Conversion and 

Commercialization:

 Biorefi nery Assistance Program provides loan guarantees of up to $250 

million for the development, construction, and retrofi tting of commercial 

scale biorefi neries that produce advanced biofuels (fuels derived from 

renewable biomass, other than corn kernel starch). 

(www.rurdev.usda.gov)

 Repowering Assistance Program is a payment program to eligible 

biorefi neries to encourage the use of renewable biomass as a 

replacement fuel source for fossil fuels used to provide process 

heat or power in the operation of these eligible biorefi neries. 

(www.rurdev.usda.gov)

 Bioenergy Program for Advanced Biofuels payment program supports 

and ensures an expanding production of advanced biofuels (fuel derived 

from renewable biomass, other than corn kernel starch) by providing 

assistance payments to eligible advanced biofuel producers. 

(www.rurdev.usda.gov)

 Rural Energy for America Program (REAP) grant and loan guarantee 

program is designed to assist agriculture producers and rural small 

businesses. A producer or company can apply for a loan guarantee of 

up to $25 million or for a grant up to $500,000. The total grant cannot 

exceed 25 percent, and a combined loan guarantee and grant cannot 

exceed 75 percent of total project costs. This program funds renewable 

energy systems and energy-effi ciency improvements. Energy audits and 

feasibility studies are also eligible for assistance. REAP also supports 

energy-effi ciency efforts. (www.rurdev.usda.gov)

 Woody Biomass Utilization Grants, through the USDA NRE/Forest

Service State and Private Forestry Technology Marketing Unit, help to

improve forest restoration activities by using and creating markets for

low-valued material and woody biomass removed from forest restoration

activities on both public and private forest lands. These funds are 

targeted to help communities, entrepreneurs, and others turn residues 

from hazardous fuel reduction and forest health activities into 

marketable forest products and/or energy products. (www.fpl.fs.fed.us/

research/units/tmu/tmugrants.shtml)

500097.indd Sec1:10 00097.indd Sec1:10 
ADVANCING RENEWABLE ENER

$21,840 $23,312

$34,284

$79,974

$163,739 $150,382

$269396

2003 2004 2005 2006 2007 2008 2009 

Rural Business Renewable Investments, 2003-2010

Projects

Jobs Saved/Created

Year

 114 163 158 412 436 764 1,559 

 736 411 289 1,357 2,122 1,797 5,981 

0

50000

100000

150000

200000

250000

300000

0

50000000

100000000

150000000

200000000

250000000

300000000

350000000

$0.0

2003 2004 2005 2006 2007 2008 2009 

Rural Utilities–Infrastructure Renewable Energy and Efficiency Investments, 2003-2010

Year

$38.0

$15.2 $12.6 $19.2

$66.9

$10.7 $3.1 $16.1

$186.7

$14.4

$

$0.0

$71.7

$9.2

Total 81.0 53.3 12.6 19.2 77.6 19.2 201.1 

Jobs at 23 jobs 1,863 1227 290 442 1,787 443 4,628 

per $million

Electric Loans for Renewables

Renewable and Efficiency Grants

(Millions of Dollars)

Projects Funded

Jobs Saved/Created

Green Tons Removed

(thousands of tons)

 19 16 26 17 28 

 48 61 222 271 107 

 93.9 120.9 438.9 535.0 212.7 

Forest Service Woody Biomass Utilization Grant Programs, 2005-2010

2005

Federal D

Leverage

2006 2007 2008 2009 

0

5

10

15

20

$4.15

$16

$9

$5

$11

$10

$4.16

$6.24

$4.12

$7.39

$4.2

Year

(Millions 

500097.indd Sec1:11 500097.indd Sec1:11 
12 ADVANCING RENEWABLE ENERGY

 Electric Loan Programs 

Through the Rural Utilities Service (RUS), USDA fi nances electric 

infrastructure in rural areas to ensure availability of modern, reliable, 

secure, and affordable electricity for rural communities and businesses, 

supporting the production and delivery of renewable energy and 

other domestic energy resources. Electric loans and loan guarantees 

are available to rural cooperatives, utilities, and other rural electricity 

providers for building and improving generation, transmission, and 

distribution facilities; on-grid and off-grid renewable energy systems; 

wind, solar, biomass, hydroelectric, and geothermal systems; and for 

energy effi ciency and conservation programs. In FY 2009, RUS 

approved $186.7 million in rural electric infrastructure loans for 

renewable energy projects. In FY 2010, RUS awarded $313.2 million 

in renewable energy loans.

 High Energy Cost Grants

The High Energy Cost Grant Program, administered through RUS, 

provides grants for rural communities with average home energy costs 

exceeding 275 percent of the national average to help meet generation, 

transmission, and distribution needs. Because renewable energy and 

energy-effi ciency projects can be cost effective, USDA during 2009 

awarded $10.2 million in grants for wind, solar, and biomass energy 

projects in extremely high energy cost communities.

ReNewable Electricity Production

500097.indd Sec1:12 500097.indd Sec1:12 
ADVANCING RENEWABLE ENER

The Rural Utilities Service (RUS) 

Electric Program provides funding 

to upgrade, expand, maintain, 

and replace America’s vast rural 

electric infrastructure. 

ADVANCING RENEWABLE ENER

500097.indd Sec1:13 500097.indd Sec1:13 
14 ADVANCING RENEWABLE ENERGY

Energy Effi ciency and Conservatio

I

ncreasing the energy effi ciency of our rural small businesses, farms, and

homes is a key priority for USDA. This involves reducing the consumption

of fuel, fertilizers, and herbicides; adopting new energy technologies and

equipment to optimize energy effi ciency; and promoting the use of renewable energy in daily operations. An integral component of this effi ciency

initiative is to increase the sequestration of carbon dioxide through innovative farming and forest management techniques.

USDA’s Agricultural Research Service (ARS) leads USDA intramural scientifi c 

research to enable new technologies and practices for increasing the energy 

effi ciency of agricultural operations. USDA’s Forest Service Research and Development (FS R&D) leads USDA intramural research to develop forest-based 

bioenergy and bioproduct options, systems, and strategies. USDA Natural 

Resources and Environment (NRE) agencies, the Forest Service and the Natural Resources Conservation Service (NRCS), ensure the health of the land 

through sustainable management. They work to prevent damage to natural 

resources and the environment, restore the resource base, and promote good 

land management. NRCS provides technical and fi nancial assistance for farm 

and ranch energy audits, as well as Web-based tools to help farmers and 

ranchers reduce energy consumption. In addition, Rural Development has 

several programs dedicated to reducing energy costs and increasing energy 

effi ciency for ag producers, rural small businesses, and homeowners. 

500097.indd Sec1:14 500097.indd Sec1:14 
ADVANCING RENEWABLE ENER

Solar

The Rural Utilities Service (RUS) High Energy Cost 

Grant Program awarded $3 million to Sacred Power 

Corporation of Albuquerque, New Mexico, to install 

hybrid solar photovoltaic (PV) power stations for 

remote tribal homes in the Bird Springs, Coppermine 

and Inscription House Chapters of the Navajo Nation in Arizona. These systems will allow the off-grid 

homeowners to discontinue use of noisy and expensive 

gasoline generators for electricity. The grant also 

covers more energy-effi cient appliances, lighting, and 

HVAC upgrades and necessary adaptations to the 

home for safety, reliability, and compatibility with the 

new renewable energy system. 

500097.indd Sec1:15 00097.indd Sec1:15 
16 ADVANCING RENEWABLE ENERGY

USDA Programs Supporting 

Energy Effi ciency and Conservatio

 Rural Energy for America Program (REAP) energy-effi ciency projects 

typically involve installing or upgrading equipment to signifi cantly 

reduce energy use for agriculture producers and rural small businesses. 

These include projects that produce energy from wind, solar, biomass, 

geothermal, hydropower, and hydrogen-based sources. The projects can 

produce any form of energy including, heat, electricity, or fuel such as a 

dairy farm and food waste anaerobic digester creating biogas for on-farm 

or commercial use. Eligible energy effi ciency projects reduce energy 

consumption and result in savings for the agricultural producer or small 

business owner such projects include retrofi tting lighting, insulation, 

water heaters, refrigeration components, pumps, and drive devices with 

more effi cient processes and equipment. Energy audits and feasibility 

studies are also eligible for assistance. (www.rurdev.usda.gov)

 Conservation Innovation Grants (CIG), under the Natural Resources 

Conservation Service, is a voluntary program intended to stimulate the 

development and adoption of innovative conservation approaches and 

technologies while leveraging Federal investment in environmental 

enhancement and protection, in conjunction with agricultural

production. Under CIG, Environmental Quality Incentives Program

funds are used to award competitive grants to non-Federal governmental

or non-governmental organizations, tribes, or individuals. 

(www.nrcs.usda.gov/technical/cig/)

 Conservation Loan Program–The Farm Service Agency (FSA) recently

implemented a conservation loan program that can be used

for the implementation of qualifi ed conservation practices as outlined 

in an approved Conservation Plan developed by NRCS. Conservation 

activities that will be addressed with loan funds provided under the 

Conservation Loan Program include purposes consistent with the plan, 

including the adoption of any other emerging or existing conservation 

practices, techniques, or technologies approved by the U.S. Secretary of 

Agriculture. FSA will make direct conservation loans of up to $300,000, 

and guaranteed loans made by commercial lenders up to $1.12 million. 

FSA conservation loans can be made in conjunction with grants and 

other commercial fi nancing. (www.fsa.usda.gov)

500097.indd Sec1:16 00097.indd Sec1:16 
ADVANCING RENEWABLE ENERG

ADVANCING RENEWABLE ENER

 Environmental Quality Incentives Program (EQIP) provides a voluntary 

conservation program for farmers, ranchers, and owners of private, 

non-industrial forest land that promotes agricultural production, forest

management, and environmental quality as compatible national goals.

EQIP offers fi nancial and technical assistance to eligible producers with 

the installation or implementation of conservation practices on eligible 

agricultural land. Financial assistance for conservation activity plans 

such as the Agricultural Energy Management Plan, an on-farm energy 

audit, must be performed by a certifi ed Technical Service Provider (see 

http://techreq.usda.gov/). EQIP funds may also be used to assist with 

implementation of some of the recommendations provided in an onfarm energy audit. (www.nrcs.usda.gov/programs/eqip/)

 Single Family Housing Guaranteed Program includes the Rural 

Energy Plus initiative to provide additional incentives to certain low 

and moderate income families, who might not otherwise qualify for 

homeownership, to purchase an energy-effi cient home. 

(www.rurdev.usda.gov)

 Home Repair Preservation Program provides assistance to low and 

very low income rural homeowners for critical home improvements, 

including weatherization, insulation, and new heating systems. 

(www.rurdev.usda.gov)

 Housing Preservation Grants are also available under Rural 

Development for sponsoring organizations or rental property owners 

for the repair or rehabilitation of low and very low income multi-family 

housing, including energy-effi ciency upgrades. (www.rurdev.usda.gov)

500097.indd Sec1:17 00097.indd Sec1:17 
18 ADVANCING RENEWABLE ENERGY

 BioPreferred Program was instituted by USDA to promote the 

awareness and use of more than 10,800 biobased commercial and 

industrial products (made from renewable plant and animal sources). 

USDA has an online catalog of more than 10,800 biobased commercial 

and industrial products. (www.dm.usda.gov/procurement/programs/

biopreferred.htm) 

 Biodiesel Fuel Education Program provides competitive grants to eligible 

entities to educate government and private entities that operate vehicle 

fl eets and the public about the benefi ts of biodiesel fuel use. The Farm 

Bill provides $1 million in funds per year, from fi scal year 2009 to 2012.

 Business and Industry Guaranteed Loan Program was established to 

improve, develop, or fi nance business, industry, and employment and 

improve the economic and environmental climate in rural communities. 

This purpose is achieved by bolstering the existing private credit 

structure through the guarantee of quality loans up to $25 million that 

will provide lasting community benefi ts. (www.rurdev.usda.gov)

 Value-Added Producer Grant Program provides grants for planning 

activities and for working capital for marketing value-added agricultural 

products, and for farm-based renewable energy. Eligible applicants 

include independent producers, farmer and rancher cooperatives, ag 

producer groups, and majority-controlled producer-based business 

ventures. (www.rurdev.usda.gov)

 Rural Business Enterprise Grant Program facilitates development 

of small and emerging private rural business enterprises. (www.rurdev.

usda.gov)

 Rural Business Opportunity Grant Program sustains economic 

development in rural communities with exceptional needs. (www.

rurdev.usda.gov)

 Rural Economic Development Loan and Grant Program provides zerointerest loans and/or grants for sustainable rural economic development 

and job creation projects for Rural Development electric and telephone 

utility loan borrowers. (www.rurdev.usda.gov)

USDA Energy-Related Business 

Development Programs:

500097.indd Sec1:18 00097.indd Sec1:18 
ADVANCING RENEWABLE ENER

Wind

The Rural Utilities Service (RUS) approved 

a loan of $9.6 million to Fox Islands Wind, 

LLC to construct three 1.5 megawatt wind 

turbines in Vinalhaven, Maine. The project 

will supply electricity to Fox Islands Electric 

Cooperative, Inc., and any surplus electricity 

will be sold to the New England electric grid 

with the proceeds used to reduce electricity 

costs for the islanders.

500097.indd Sec1:19 00097.indd Sec1:19 
20ADVANCING RENEWABLE ENERGY ADVANCING RENEWABLE ENERGY

USDA is working within the Department and with other Federal departments 

and organizations on furthering renewable energy and energy effi ciency; 

efforts include, but are not limited to, the following intra/intergovernmental 

agreements, councils, working groups, and boards.

USDA Energy Council

The USDA Energy Council mission is to advance the contribution of agriculture and forestry in rural America to promote the Nation’s achievement of 

energy security through the effectiveness and effi ciency of the Department’s 

numerous energy-related programs and initiatives. Chaired by the Secretary 

of Agriculture and consisting of the Under Secretaries and other senior managers, the Energy Council leads the Department in policy development and 

efforts to reach all audiences to inform them about USDA energy programs 

and regulations. The Council ensures that these audiences are aware of the 

Department’s comprehensive energy program and also understand how it fi ts 

into the United States’ overall energy policy.

USDA Energy Council Coordination Committee (ECCC)

The ECCC, consisting of staff from all USDA mission areas who work on energy issues, coordinates energy-related activities among USDA agencies and 

performs duties as assigned by the Secretary, the Energy Council Chair, or the 

Energy Council as a whole.

Intra/Interdepartmental 

Collaboration

500097.indd Sec1:20 00097.indd Sec1:20 
ADVANCING RENEWABLE ENER

ADVANCING RENEWABLE ENER

Biomass Research and Development (BR&D) Board

USDA, along with the U.S. Department of Energy (DOE), co-chairs the 

Board, which coordinates the Government-wide research initiative and 

activities for the purpose of promoting the use of biobased products, power, 

and biofuels. Members of the BR&D Board also include the National Science 

Foundation, the U.S. Environmental Protection Agency, the U.S. Department of the Interior, the U.S. Department of Defense, the U.S. Department 

of Transportation, and the Offi ce of Science and Technology Policy. (www.

brdisolutions.com)

The BR&D Technical Advisory Committee 

This Committee, a group of approximately 30 individuals from industry, 

academia, and State government, is responsible for providing guidance to 

the BR&D Board on the technical focus of the Biomass Research and 

Development Initiative (BRDi). (www.brdisolutions.com)

Biofuels Interagency Working Group (BIWG)

President Obama established the Biofuels Interagency Working Group, 

to be co-chaired by the Secretaries of Agriculture and Energy and 

the Administrator of the U.S. Environmental Protection Agency. The BIWG 

works with the BRDi Board in undertaking its work. In his directive, the 

President called on the Secretary of Agriculture to preserve current renewable energy industry employment and to develop a comprehensive approach 

to accelerating the investment in and production of American biofuels and 

reducing our dependence on fossil fuels. The BIWG will develop the 

Nation’s fi rst comprehensive biofuel market development program. 

(www.epa.gov)

500097.indd Sec1:21 00097.indd Sec1:21 
22ADVANCING RENEWABLE ENERGY ADVANCING RENEWABLE E NERGY

U.S. Department of Navy (DON) Memorandum of Understanding

USDA is working with DON to support initiatives to reduce energy consumption derived from fossil fuels, to increase clean energy production from

renewable energy sources to meet transportation needs, and to support the

Secretary of the Navy’s Great Green Fleet Initiative.

U.S. Environmental Protection Agency (EPA) Interagency Agreement

The purpose of this Interagency Agreement between EPA and USDA is to

leverage and utilize each other’s expertise and resources, to include advancing deployment of commercially ready anaerobic digestion and biogas use

technologies that reduce investment and operational risk to farm owners.

(www.epa.gov/agstar)

The Innovation Center for U.S. Dairy Memorandum of Understanding

USDA and the Innovation Center for U.S. Dairy are taking steps aimed to 

create a sustainable future for the dairy industry. USDA is assisting with the 

center’s work toward the goal of reducing the U.S. dairy industry’s greenhouse gas emissions by 25 percent by the year 2020. An additional goal is to 

accelerate and streamline the process for adopting anaerobic 

digesters by the United States dairy farm operators through various 

USDA programs.

Farm to Fly With Commercial Aviation Initiative

USDA, Boeing, and the Air Transport Association of America, Inc., are working together to accelerate the availability of commercially viable sustainable 

aviation biofuels in the United States to increase domestic energy security, 

establish regional supply chains, and support rural development.

500097.indd Sec1:22 00097.indd Sec1:22 
ADVANCING RENEWABLE ENER

ADVANCING RENEWABLE ENER

National Agricultural Research, Extension, Education and Economics (NAREEE)

Advisory Board - Renewable Energy Committee

Congress created the Renewable Energy Committee as a part of the NAREEE

Advisory Board in 2008. The committee annually submits to the Advisory

Board a report that contains its fi ndings and any policy recommendations to

the USDA in preparation for the annual budget. The committee also consults

with the BR&D Technical Advisory Committee. 

Bioenergy Science Team (BEST) 

The Bioenergy Science Team is comprised of USDA scientists who work collaboratively to coordinate science and technology efforts across the Department in support of advancing bioenergy production. BEST also serves as a 

resource for scientifi c information for Departmental decisionmakers. 

Wood to Energy Initiative: Building a Forest Restoration Economy

NRE is coordinating an interagency team from the Forest Service, Rural 

Development, and Farm Service Agency to build opportunities for utilizing wood from hazardous-fuels treatment and small-diameter thinning as a 

feedstock source for biofuel and bioenergy. Our aim is to expand and better 

utilize this material as biomass that can help forest health treatments be 

economically viable. In the process, the initiative is helping to reduce our 

dependency on foreign oil, putting people to work in green jobs, restoring 

healthy forests and rangelands, reducing fi re risks to the land and communities, and improving water quality. Activities under the Wood to Energy Initiative currently focus on project development, strategic technical assistance, 

joint outreach, and providing a clearinghouse for Federal funding programs 

that support this sector. 

500097.indd Sec1:23 00097.indd Sec1:23 
24 ADVANCING RENEWABLE ENERGY

USDA Energy Programs Are 

Making a Measurable Impact

Aggressive actions by USDA and other Federal agency partners 

to advance the Nation’s energy goals have already made a 

considerable impact on the U.S. rural economy and the evolving 

renewable energy landscape:

From 2003 through 2009, more than $1.1 billion in USDA Rural Development investments were distributed to renewable energy systems and energyeffi ciency initiatives. These State-level investments total a savings/production 

of approximately 13.6 billion kilowatt hours of energy, the equivalent of a 

14.4-million-metric-ton reduction of CO2

 emissions. That replaces, on average, 77.90 billion barrels of oil (fossil fuels), which has the effect of removing 

3.24 million vehicles from the road, and saves/creates 6,964 jobs.

In 2010, USDA Rural Development was able to allocate more than $285.5 

million toward energy-related projects through programs authorized through 

the Title IX energy provisions in the 2008 Farm Bill: the Biorefi nery Assistance Program, Repowering Assistance Program, Bioenergy Program for Advanced Biofuels, and Rural Energy for America Program. These investments 

assisted in the production of 882.1 million gallons of advanced biofuels, 

saved or created an estimated 2,371 jobs, helped 5,250 businesses, realized 

4.67 billion kWh in energy savings, and reduced 7.7 million metric tons of 

CO2

/greenhouse gas emissions.

During 2008-2010, approximately 30 grants totaling about $30 million were 

jointly awarded by USDA Cooperative State Research, Education, and Extension Service (CSREES, now NIFA) and DOE to accelerate fundamental genomic research of cellulosic bioenergy feedstock crops, such as fast-growing 

trees, shrubs, and grasses.

During 2009, more than 10 grants totaling more than $20 million were 

jointly awarded by CSREES (now NIFA) and DOE for biomass feedstock 

genetic development and production, conversion of biomass to biofuels and 

biobased products, and life-cycle assessment to determine economic and environmental impacts of production. In 2010, eight grants totaling more than 

$31 million were jointly awarded by NIFA and DOE for biomass feedstock 

genetic development and production, conversion of biomass to biofuels and 

biobased products, and life-cycle assessment to determine economic and 

environmental impacts of production.

500097.indd Sec1:24 00097.indd Sec1:24 
ADVANCING RENEWABLE ENER

Biomass:

USDA’s Rural Utilities Service awarded a High Energy 

Cost Grant of $1,081,392 to Maine School Administration District No. 58 (MSAD 58) in Franklin County. 

This rural area in Maine is heavily dependent on fuel oil 

for its heating needs. With funding provided by USDA, 

MSAD 58 partnered with Skanden Energy LLC, from 

San Diego, CA, to purchase and install a wood pellet 

heating system to provide heat and hot water to the 

school buildings to replace its oil-fi red boilers, displacing imported oil with a local, renewable fuel supply.

500097.indd Sec1:25 00097.indd Sec1:25 
26 ADVANCING RENEWABLE ENERGY

Geothermal Heat Pump (GHP)

Elkton Locker & Grocery

$65,000 Grant; 

$65,000 Loan Guarantee 

Rural Energy for America Program (REAP) 

RD, Rural Business-Cooperative Service

Steve and Diane Hammer of Elkton, South Dakota, looked for a way to expand their 

successful meat locker business, “Big Daddy’s Meats,” into a full-service grocery 

store. The town of Elkton had been without a grocery for several years. A REAP 

“Combo” for a GHP helped the Hammer’s bring a grocery to their small town in 

a cost-effective and environmentally sustainable way. Big Daddy’s Grocery is now 

heated and cooled entirely by geothermal energy.

Reverse Osmosis Filtration 

Sechler’s Sugar Shack

$6,050 Grant 

Rural Energy for America Program (REAP)

RD, Rural Business-Cooperative Service

Everett and Chris Sechler have been tapping maple trees in Southwestern 

Pennsylvania since 1983. They applied for a REAP grant to install a new reverse 

osmosis machine to help separate the sugar from the water in maple sap. Traditional separation involves energy-intensive evaporation. Reverse osmosis allows 

75-80 percent of water to be removed from the sap before boiling off the remainder. The fuel and time savings are substantial. “This is something practical. It 

allows maple syrup producers to save resources, and it helps the sugar maker to 

make choices that help the environment and our economy.”

70 percent fuel savings: 4.25 to 1.2 gallons of fuel oil per gallon of maple syrup

Energy Effi ciency Improvement (EEI)

500097.indd Sec1:26 00097.indd Sec1:26 
ADVANCING RENEWABLE ENER

Anaerobic Digester

Neighborhood Energy, LLC

$357,990 Grant; 

$326,770 Loan Guarantee

Rural Energy for America Program (REAP)

RD, Rural Business-Cooperative Service

225 kW Generator –1.75 kWh per year 

When Matthew Maxwell returned from Boston to his family’s rural Vermont farm, 

he knew that the dairy industry had changed. “Milk prices were low. I mean REALLY 

low. I knew we had to diversify to survive.” 

Maxwell Farms’ Neighborhood Energy, LLC, joined the Central Vermont 

Public Service (CVPS) Cow Power program, becoming the fi fth farm to use 

an anaerobic digester.

REAP - $357,990 Grant + $326,770 Loan Guarantee

• $250,000 VT Clean Energy Development Fund, 

• $100,000 CVPS Grant (Cow Power)

• $75,000 from VT Agency of Agriculture

The project has a variety of benefi ts:

• High-value animal bedding

• Nutrient solids

• Net Income – $225,000/year

500097.indd Sec1:27 00097.indd Sec1:27 
28 ADVANCING RENEWABLE ENERGY

USDA Rural Development’s Business and 

Cooperative Programs provided a loan 

guarantee of $951,638 through its Renewable Energy for America Program (REAP) 

to AGreen Energy, LLC (AGE). It fi nanced an 

anaerobic digester at Jordan Dairy Farm in 

Rutland, MA, the fi rst of the fi ve systems in 

a regional anaerobic digester project. The 

AGE project brings together the fi ve family 

farms, a regional waste recycling company, 

and an advanced energy technology provider 

to provide renewable energy in an environmentally friendly way to help sustain agriculture in the State. Each cow on the farm 

will produce enough electricity to power one 

average Massachusetts home for a year.

Anaerobic Digester

500097.indd Sec1:28 00097.indd Sec1:28 
ADVANCING RENEWABLE ENER

ONLINE ASSISTANCE:

USDA Energy Website: www.usda.gov/energy

The Energy Matrix: 

Visit USDA’s Energy Matrix (www.energymatrix.usda.gov) to access 

information about any USDA energy-related program.

USDA Offi ces, Mission Areas, and Agency Websites:

Visit www.usda.gov to access all USDA offi ces, mission areas, and/

or agencies listed within this publication.

500097.indd Sec1:29 00097.indd Sec1:29 
30ADVANCING RENEWABLE ENERGY ADVANCING RENEWABLE E NERGY

The U.S. Department of Agriculture prohibits discrimination in all its programs 

and activities on the basis of race, color, national origin, age, disability, and where 

applicable, sex, marital status, familial status, parental status, religion, sexual 

orientation, genetic information, political beliefs, reprisal, or because all or a part 

of an individual’s income is derived from any public assistance program. (Not all 

prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, 

etc.) should contact USDA’s TARGET Center at (202) 720-2600 (voice and TDD).

To fi le a complaint of discrimination write to USDA, Director, Offi ce of Civil 

Rights, 1400 Independence Ave. SW, Washington, DC 20250-9410 or call 

(800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal opportunity 

provider and employer. 

October 2010

Revised May 2011

500097.indd Sec1:30 00097.indd Sec1:30