A bill to amend the Farm Security and Rural Investment Act of 2002 to reauthorize and improve the Rural Energy for America program.

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.''.

Summary: 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.