I 
110TH CONGRESS 
1ST SESSION H. R. 2154 
To enhance and improve the energy security of the United States, expand 
economic development, increase agricultural income, and improve environ-
mental quality by reauthorizing and improving the renewable energy 
systems and energy efficiency improvements program of the Department 
of Agriculture through fiscal year 2012, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 3, 2007 
Ms. HERSETH SANDLIN (for herself, Mr. FORTENBERRY, and Ms. KAPTUR) 
introduced the following bill; which was referred to the Committee on Ag-
riculture 
A BILL 
To enhance and improve the energy security of the United 
States, expand economic development, increase agricul-
tural income, and improve environmental quality by reau-
thorizing and improving the renewable energy systems 
and energy efficiency improvements program of the De-
partment of Agriculture through fiscal year 2012, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Rural Energy for 
America Act of 2007’’. 
SEC. 2. FINDINGS. 
The Congress finds that— 
(1) rising energy costs and uncertain long-term 
energy supplies threaten to undermine the growth of 
the United States economy; 
(2) since 2003, fuel and fertilizer costs have 
nearly doubled for agricultural producers; 
(3) there are continuing and increasing risks to 
the energy security of the United States; 
(4) having an affordable, reliable, and plentiful 
energy supply will strengthen the United States 
economy and improve domestic energy security; 
(5) the agricultural sector can provide a signifi-
cant source of clean, sustainable energy for the 
United States that can reduce the dependence of the 
United States on imported energy and lower energy 
costs for all people of the United States; 
(6) agriculture-based energy— 
(A) boosts rural economic development; 
(B) increases farm-based income; 
(C) creates manufacturing, construction, 
and service jobs; 
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(D) expands economic opportunity for all 
people; and 
(E) improves environmental quality; 
(7) it is a goal of this Act to help the agricul-
tural sector to provide at least 25 percent of the en-
ergy consumed in the United States by calendar 
year 2025; 
(8) expanding agriculture-based renewable en-
ergy resources (including wind, solar, and geo-
thermal energy, biomass, ethanol, and biodiesel) and 
improving energy efficiency will help to achieve that 
goal; 
(9) section 9006 of the Farm Security and 
Rural Investment Act of 2002 (7 U.S.C. 8106) es-
tablished the renewable energy systems and energy 
efficiency improvements program, which is the first 
agricultural program to catalyze broad renewable en-
ergy and energy efficiency measures for the agricul-
tural and rural business sectors; 
(10) since establishment, the program has been 
a strong success, providing during the first 4 years 
of the program $111,000,000 in grants and loan 
guarantees for approximately 800 renewable energy 
and energy efficiency projects in 43 States, which le-
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veraged more than $1,000,000,000 in additional in-
vestments in farms and rural communities; 
(11) projects assisted by the grants and loan 
guarantees issued in the program’s first three years 
will— 
(A) 
produce 
or 
save 
more 
than 
17,000,000,000,000 British thermal units of 
energy each year in the form of fuel, electricity, 
thermal energy, and energy efficiency; 
(B) produce 170,000,000 gallons of eth-
anol and biodiesel fuel annually; 
(C) reduce carbon dioxide emissions by 
more than 1,100,000 tons annually; and 
(D) result in more than 330 megawatts of 
installed wind power electrical generating ca-
pacity; and 
(12) applications for assistance under the pro-
gram— 
(A) in 2003, nearly matched the available 
funding for the program; 
(B) in 2004, were nearly twice the avail-
able funding for the program; and 
(C) in 2005 and 2006, were nearly triple 
the available funding for the program. 
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SEC. 3. RURAL ENERGY FOR AMERICA PROGRAM. 
Section 9006 of the Farm Security and Rural Invest-
ment Act of 2002 (7 U.S.C. 8106) is amended— 
(1) by striking the section heading and insert-
ing the following: 
‘‘SEC. 9006. RURAL ENERGY FOR AMERICA PROGRAM.’’. 
(2) in subsection (a)— 
(A) by inserting ‘‘, and issue rebates,’’ 
after ‘‘grants’’; 
(B) by inserting ‘‘rural school districts,’’ 
after ‘‘ranchers,’’; 
(C) by striking ‘‘and’’ at the end of para-
graph (1); 
(D) by striking the period and inserting ‘‘; 
and’’; and 
(E) by adding at the end the following: 
‘‘(3) produce and sell electricity generated by 
new renewable energy systems.’’; 
(3) in subsection (b), by adding at the end the 
following: ‘‘Farmers, ranchers and other agricultural 
producers in rural and non-rural areas are eligible to 
receive loans, loan guarantees, and grants under this 
section.’’; 
(4) in subsection (c)— 
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(A) in paragraph (1), by redesignating 
subparagraph (B) as subparagraph (C) and in-
serting after subparagraph (A) the following: 
‘‘(B) LOAN GUARANTEES.—Subject to sub-
paragraph (C)— 
‘‘(i) the maximum amount of a loan 
guaranteed to any eligible entity under this 
section shall be $25,000,000, except that 
the maximum amount of a loan guaranteed 
to an eligible entity for a facility that pro-
duces renewable fuels derived from cel-
lulosic biomass shall be $100,000,000; and 
‘‘(ii) a loan guaranteed under this sec-
tion shall not exceed 70 percent of the 
total loan value.’’; and 
(B) in paragraph (2)— 
(i) by striking ‘‘and’’ at the end of 
subparagraph (F); and 
(ii) by redesignating subparagraph 
(G) as subparagraph (H) and inserting 
after subparagraph (F) the following: 
‘‘(G) in the case of a grant, the extent to 
which the amount requested by the applicant is 
less than 25 percent of the cost of the activity 
to be funded under subsection (a); and’’. 
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(5) by striking subsection (f); 
(6) by redesignating subsection (e) as sub-
section (g); 
(7) by inserting after subsection (d) the fol-
lowing: 
‘‘(e) FEASIBILITY STUDIES.— 
‘‘(1) IN GENERAL.—The Secretary may provide 
assistance to eligible applicants to conduct feasibility 
studies of projects for which assistance may be pro-
vided under this section. 
‘‘(2) LIMITATION.—The Secretary shall use not 
more than 10 percent of the funds made available to 
carry out this section to provide assistance described 
in paragraph (1). 
‘‘(3) CRITERIA.—The Secretary shall, by regu-
lation, establish criteria for the receipt of assistance 
under this subsection. 
‘‘(4) AVOIDANCE
OF
DUPLICATIVE
ASSIST-
ANCE.—An applicant that receives assistance to 
carry out a feasibility study for a project under this 
subsection shall not be eligible for assistance to 
carry out a feasibility study for the project under 
any other provision of Federal law. 
‘‘(5) MATCHING FUNDS.—A recipient of funds 
under this subsection shall contribute an amount of 
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non-Federal funds that is at least equal to 75 per-
cent of the amount of Federal funds received. 
‘‘(f) REBATE PROGRAM.— 
‘‘(1) IN GENERAL.—The Secretary shall make 
competitive grants to eligible entities to provide re-
bates for farmers, ranchers, rural school districts, 
and rural small businesses to purchase renewable en-
ergy systems and make energy efficiency improve-
ments. 
‘‘(2) ELIGIBLE ENTITIES.—To be eligible to re-
ceive a grant under paragraph (1), an entity shall 
be— 
‘‘(A) a State energy or agriculture office; 
‘‘(B) a nonprofit State-based energy effi-
ciency or renewable energy organization that 
uses public funds provided directly or under 
contract with a State agency; 
‘‘(C) any other nonprofit organization with 
a demonstrated ability to administer a State- 
wide energy efficiency or renewable energy re-
bate program; or 
‘‘(D) a consortium of entities described in 
subparagraphs (A) through (C). 
‘‘(3) MERIT REVIEW.— 
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‘‘(A) IN
GENERAL.—The Secretary shall 
establish a merit review process to review appli-
cations for grants under paragraph (1) that 
uses the expertise of the Department of Agri-
culture, other Federal and State agencies, and 
non-governmental organizations. 
‘‘(B) REQUIREMENTS.—In reviewing the 
application of an eligible entity to receive a 
grant under paragraph (1), the Secretary shall 
consider— 
‘‘(i) the experience and expertise of 
the entity in establishing and admin-
istering a statewide clean energy rebate 
program; 
‘‘(ii) the annual projected energy sav-
ings or production increases resulting from 
the proposed program; 
‘‘(iii) the environmental benefits re-
sulting from the proposed program; and 
‘‘(iv) other appropriate factors, as de-
termined by the Secretary. 
‘‘(4) MAINTENANCE
OF
EFFORT.—An entity 
that receives a grant under paragraph (1) shall pro-
vide assurances to the Secretary that funds provided 
to the entity under this subsection will be used to 
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supplement, not to supplant, the amount of Federal, 
State, and local funds otherwise expended for rebate 
programs. 
‘‘(5) REBATE AMOUNT.—The amount of a re-
bate provided from a grant under this subsection 
shall not exceed the lesser of— 
‘‘(A) $10,000; or 
‘‘(B) 50 percent of the cost incurred to 
purchase a renewable energy system or an en-
ergy efficiency improvement.’’; and 
(8) by adding at the end the following: 
‘‘(h) FUNDING.— 
‘‘(1) Of the funds of the Commodity Credit 
Corporation, the Secretary shall make available to 
carry out this section— 
‘‘(A) $71,000,000 for fiscal year 2008; 
‘‘(B) $90,000,000 for fiscal year 2009; 
‘‘(C) $130,000,000 for fiscal year 2010; 
‘‘(D) $180,000,000 for fiscal year 2011; 
and 
‘‘(E) $250,000,000 for fiscal year 2012, 
to remain available until expended. 
‘‘(2) The Secretary shall use not less than 50 
percent of the funds made available to carry out this 
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section to make grants and to implement the rebate 
program described in subsection (f).’’. 
SEC. 4. SENSE OF THE HOUSE ON A DIRECT LOAN PRO-
GRAM IN SECTION 9006. 
It is the sense of the House that— 
(1) as authorized by section 9006 of the Farm 
Security and Rural Investment Act of 2002 (7 
U.S.C. 8106), the Secretary of Agriculture should 
implement a direct loan program to complement the 
grants provided under that section; and 
(2) as appropriate, the Secretary should model 
the direct loan program on the loan program estab-
lished under section 503 of the Small Business In-
vestment Act of 1958 (15 U.S.C. 697). 
Æ 
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