II 118th CONGRESS 1st Session S. 2594 IN THE SENATE OF THE UNITED STATES July 27, 2023 Ms. Smith (for herself and Mr. Luján ) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry A BILL 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 Modernization Act of 2023 or the REAP Modernization Act of 2023 . 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 as a result of carrying out 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 ; (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. ; and (C) in paragraph (4)— (i) in subparagraph (B), by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and indenting appropriately; (ii) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and indenting appropriately; (iii) in the matter preceding clause (i) (as so redesignated), by striking A recipient and inserting the following: (A) In general A recipient ; and (iv) by adding at the end the following: (B) Grant options A grant awarded under paragraph (1) may be used to carry out 1 or more of the activities described in subparagraph (A). ; (3) in subsection (c)— (A) in paragraph (1), by adding at the end the following: (C) Other eligible entities The Secretary may, on a limited case-by-case basis, provide financial assistance under subparagraph (A) to agricultural producer cooperatives and rural electric cooperatives that do not otherwise qualify for that financial assistance. ; (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 Secretary 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 a bundled application for a project with components eligible under clauses (i) and (ii) of subsection (c)(1)(A). ; (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 a semicolon; and (D) by adding at the end the following: (2) technical assistance is provided to entities seeking to apply for a grant or financial assistance under the Program; and (3) 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) in subsection (f) (as so redesignated), in paragraph (1), by striking $20,000 and inserting $50,000 ; (8) 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 REAP Modernization Act of 2023 , the Secretary shall submit to Congress, and make publicly available online, 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 In the case of a project funded by a grant or other financial assistance provided under the Program that takes place on a property on which a residence is closely associated with and shares an energy metering device with an agricultural operation or rural small business to be served by the project, there shall not be any requirement imposed relating to the quantity of energy generated by the project that must be used by the agricultural operation or rural small business. ; and (9) in subsection (i) (as so redesignated), by adding at the end the following: (4) Outreach, technical assistance, and education Of the funds made available to carry out this section for a fiscal year, the Secretary shall use not more than 8 percent to carry out subsection (e). (5) Reserve fund (A) In general There is established a reserve fund (referred to in this paragraph as the reserve fund ), into which, each fiscal year, not less than 15 percent of the funds made available under paragraphs (1) and (3) to carry out this section for that fiscal year shall be transferred. (B) Use of reserve fund After all other funds for the Program are obligated for a fiscal year, the Secretary may use amounts in the reserve fund to provide grants and other financial assistance under the Program for projects using underutilized renewable energy technologies. (C) Unused funds If there are remaining funds in the reserve fund at the end of a fiscal year, the Secretary shall use those remaining funds to provide grants and other financial assistance under the Program without regard to whether the grants or financial assistance relate to underutilized renewable energy technologies. . (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) .