Rural Energy for America Program (REAP) Improvement Act of 2021
Bill: S.2243 | Sponsor: Sen. Smith, Tina (D-MN)
Policy area: Agriculture and Food

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.

To amend the Farm Security and Rural Investment Act of 2002 to improve 
     the Rural Energy for America Program, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural Energy for America Program 
(REAP) Improvement Act of 2021''.

SEC. 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) is amended--
            (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'' and 
                inserting the following:
            ``(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')'' after ``Program''; and
                    (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'' at the end;
                            (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'' at the end;
                            (ii) in subparagraph (F), by striking the 
                        period at the end and inserting ``; and''; 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'' and 
                        inserting ``producers, producer cooperatives, 
                        electric cooperatives,''; and
                            (ii) in clause (ii), in the matter 
                        preceding subclause (I), by striking 
                        ``producers'' and inserting ``producers, 
                        producer cooperatives, and electric 
                        cooperatives'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (F), by striking 
                        ``and'' at the end;
                            (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'' 
                and inserting ``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'' and inserting ``Outreach, Technical 
                Assistance, and Education'';
                    (B) by striking ``that adequate'' and inserting the 
                following: ``that--
            ``(1) adequate'';
                    (C) in paragraph (1) (as so designated), by 
                striking the period at the end and inserting ``; and''; 
                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' means a system 
        under which renewable energy production and agricultural 
        production, including crop or animal production, occur together 
        on the same piece of land.
            ``(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, the Secretary shall submit to Congress 
        a report on the results of the study carried out under 
        paragraph (2), which shall include a recommendation as to 
        whether the scope of grants and other financial assistance 
        under the Program should be expanded to cover projects that 
        generate more energy without significantly impacting farm 
        operations or leading to the conversion of existing farm land.
    ``(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--'' and all that 
                        follows through the period at the end of 
                        subparagraph (E) and inserting ``expended, 
                        $150,000,000 for each of fiscal years 2021 
                        through 2030.'';
                            (ii) by striking ``Of the funds'' and 
                        inserting the following:
                    ``(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)'' and inserting ``paragraph (1)(A)''; and
                    (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) is amended by striking 
``subsection (f)'' each place it appears and inserting ``subsection 
(i)''.
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