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Renewable Energy Grants for Agricultural Producers and Small Rural Businesses
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The introduction of renewable energy sources are considered to be a major turning point in the field of energy generation. Earth’s fossil fuel reserves are now starting to run out so we need to find other alternative and reliable sources to sustain our energy needs. In addition, research shows some of the adverse effects in our ecosystem due to the combustion process of these fossil fuels. That is why different renewable energy sources are being developed and carried on to various energy applications.
Different countries around the world pledged their full support on the usage of renewable energy sources for power generation. The ratification of Climate Change Convention by the United Nations in 1992 and drafting the Kyoto Protocol in 1997 shows their intention of using these renewable sources not only for power generation but for the welfare of the environment as well.
In addition, different countries pass legislature bills that promote renewable energy source investment. In United States, for instance, the 108th Congress enacted the Renewable Energy Investment Act of 2003 to “develop national security, environmental quality, and economic stability by enhancing the production of clean, domestically-produced renewable energy as a fuel source for the national electric system”.
One of the helpful moves initiated by different governments around the world is awarding renewable energy grants to rural, agricultural, and small business enterprise (SME) sectors of our society to promote the use of renewable energy and improving energy efficiency. In this article, we will find out what these energy grants are and how it will help various sectors of our society.
The U.S. Department of Agriculture is awarding grant money to fund rural renewable energy sources and efficiency improvement programs across the country. It is a part of the federal government’s efforts to reduce the country’s dependence on imported crude oil and other non-renewable energy sources as well as improving efficiency of existing energy systems.
Grants will be given to various rural businesses and investments to convert domestic natural resources and leftovers of farming operations into new sources of energy. Funds will be used for the cost of eligible energy projects which include energy generation from wind, solar, biomass, or geothermal source.
Renewable Energy Systems and Energy Efficiency Improvement programs are established under Section 9006 of the Farm Bill enacted by Congress in 1992 to encourage the agricultural sector as well as small business enterprises to build renewable energy systems at high efficiency.
Since the loan and grant programs began in 2005, a total of 435 grants have been awarded to 36 states which amounted to $66.7 million. One project planned through this program is the combined Business and Industry guarantee for the construction of the 20-megawatt biomass electrical generating plant in Arizona which amounted to $10 million. It will use timbers that are damaged during forest fires along with agricultural wastes as a fuel source.
As of February 2006, funding for Renewable Energy Systems and Energy Efficiency Improvement programs of the government reached $176.5 million in loan guarantees and almost $11.4 million in grants. There are also around $160 million in cost-shared funding for 3 years to build three bio-refineries in the country.
Under this program, the maximum amount that can be borrowed either from agricultural or small business sector is $10 million. For renewable energy systems, a borrower can request loan up to $500,000. For efficiency improvements, the request can be made to a maximum of $250,000. In addition, rural development grants under this program will not go beyond 25 percent of the program costs.
Remember that the federal government awards these grants to reduce our country’s dependence on imported energy sources. Aside from developing domestic renewable sources, capital investments will be used to fund grants that will support the development of agricultural and SME sectors of our society.
Let us support this move of our government. After all, it is us, as the end-users who will benefit from these grants.
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