Rural Energy for America Program (REAP) Improvement Act of 2021

To amend the Farm Security and Rural Investment Act of 2002 to improve the Rural Energy for America Program, and for other purposes. 1. Short title This Act may be cited as the Rural Energy for America Program (REAP) Improvement Act of 2021 2. Rural Energy for America Program (a) In general Section 9007 of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8107 (1) in subsection (a)— (A) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and indenting appropriately; (B) in the matter preceding subparagraph (A) (as so redesignated), by striking The Secretary (1) In general The Secretary ; (C) in paragraph (1) (as so designated), in the matter preceding subparagraph (A) (as so redesignated), by inserting (referred to in this section as the Program Program (D) by adding at the end the following: (2) Climate benefits In carrying out the Program, the Secretary shall promote the reduction of greenhouse gas emissions in projects funded by grants and other financial assistance under the Program. ; (2) in subsection (b)— (A) in paragraph (2)— (i) in subparagraph (D), by striking and (ii) by redesignating subparagraph (E) as subparagraph (G); and (iii) by inserting after subparagraph (D) the following: (E) a producer cooperative; (F) a nongovernmental organization; and ; and (B) in paragraph (3)— (i) in subparagraph (E), by striking and (ii) in subparagraph (F), by striking the period at the end and inserting ; and (iii) by adding at the end the following: (G) the potential of the proposed program to reduce greenhouse gas emissions and provide other climate benefits. ; (3) in subsection (c)— (A) in paragraph (1)(A)— (i) in clause (i), in the matter preceding subclause (I), by striking producers producers, producer cooperatives, electric cooperatives, (ii) in clause (ii), in the matter preceding subclause (I), by striking producers producers, producer cooperatives, and electric cooperatives (B) in paragraph (2)— (i) in subparagraph (F), by striking and (ii) by redesignating subparagraph (G) as subparagraph (H); and (iii) by inserting after subparagraph (F) the following: (G) the potential of the renewable energy system to reduce greenhouse gas emissions and result in other climate benefits; and ; and (C) in paragraph (3)(A), by striking 25 percent 50 percent (4) by redesignating subsections (d), (e), and (f) as subsections (e), (f), and (i), respectively; (5) by inserting after subsection (c) the following: (d) Streamlined application process The Office of Rural Development shall develop a streamlined application process, including within each tier described in subsection (c)(4), under which an entity may apply for a grant under subsection (b), financial assistance under subsection (c), or both. ; (6) in subsection (e) (as so redesignated)— (A) in the subsection heading, by striking Outreach Outreach, technical assistance, and education (B) by striking that adequate that— (1) adequate ; (C) in paragraph (1) (as so designated), by striking the period at the end and inserting ; and (D) by adding at the end the following: (2) outreach, technical assistance, and education is provided to recipients of grants and other financial assistance under the Program relating to integrating renewable energy projects on land shared with crops or livestock. ; (7) by inserting after subsection (f) (as so redesignated) the following: (g) Study (1) Definition of dual-use energy system In this subsection, the term dual-use energy system (2) Study The Secretary shall carry out a study on dual-use energy systems. (3) Report Not later than 2 years after the date of enactment of the Rural Energy for America Program (REAP) Improvement Act of 2021 (h) Energy generated There shall not be any restriction imposed on the quantity of energy that is generated under a project funded by a grant or other financial assistance provided under the Program for the benefit of the recipient of the grant or other financial assistance. ; and (8) in subsection (i) (as so redesignated)— (A) in paragraph (1)— (i) in the matter preceding subparagraph (A), by striking expended— expended, $150,000,000 for each of fiscal years 2021 through 2030. (ii) by striking Of the funds (A) In general Of the funds ; and (iii) by adding at the end the following: (B) Additional funds In addition to amounts made available under subparagraph (A), there is appropriated to the Secretary to carry out this section, out of funds in the Treasury not otherwise appropriated, $1,000,000,000, to remain available until expended. ; (B) in paragraph (2)(A), by striking paragraph (1) paragraph (1)(A) (C) by adding at the end the following: (4) Reserve fund (A) In general There is established a reserve fund for the purpose of providing grants and other financial assistance under the Program relating to underused renewable energy technologies. (B) Funds For each fiscal year, not less than 15 percent of the funds made available under paragraphs (1)(A) and (3) to carry out this section for that fiscal year shall be transferred to the reserve fund established by subparagraph (A). . (b) Conforming amendments Section 9007 of the Farm Security and Rural Investment Act of 2002 ( 7 U.S.C. 8107 subsection (f) subsection (i)

Summary: Rural Energy for America Program (REAP) Improvement Act of 2021 This bill modifies and provides additional funding for the Rural Energy for America Program (REAP), with a particular focus on greenhouse gas reduction. Under the program, the Department of Agriculture (USDA) supports energy efficiency and renewable energy development for agricultural producers and rural small businesses. As part of the selection criteria for a grant or loan from the program, USDA must consider the potential of a project to reduce greenhouse gas emissions and provide other climate benefits. The bill also prohibits USDA from imposing restrictions on the quantity of energy that is generated under a grant or loan. Further, the bill expands the program by making agricultural producer cooperatives, electric cooperatives, and nongovernmental organizations eligible for financial assistance under the program. The bill also (1) increases from 25% to 50% the portion of a project's cost that may be covered by a grant, and (2) establishes a reserve fund to provide grants and other financial assistance related to underutilized renewable energy technologies. In addition, USDA must study dual-use energy systems (i.e., systems where both renewable energy and agricultural production occur on the same piece of land) and ensure that grant and loan recipients receive outreach, technical assistance, and education concerning such systems.