IRA Section 22002 – Rural Energy for America Program Funding

Section 22002 of the IRA appropriates the following amounts to USDA to provide grants and loans under the Rural Energy For America Program (“REAP”) established under Section 9007 of the Farm Security and Rural Investment Act of 2002, 7 U.S.C. § 8107:

1) $820,250,000 for fiscal year 2022;
2) $180,276,500 for fiscal years 2023 to 2027.

Through REAP, USDA promotes “energy efficiency and renewable energy development for agricultural producers and rural small businesses” by providing “grants for energy audits and renewable energy development assistance” and “financial assistance for energy efficiency improvements and renewable energy systems.”

Section 22002 of the IRA also appropriates the following additional amounts to USDA to provide REAP grants and loans for projects “relating to underutilized renewable energy technologies:”

1) $144,750,000 for fiscal year 2022;
2) $31,813,500 for fiscal year 2023 to 2027.

Section 22002 of the IRA specifies that any grant issued by USDA under REAP shall not exceed 50% of the total project or activity cost.

These amounts under section 22002 of the IRA shall remain available until September 30, 2031. USDA is prohibited from entering into any agreements that could result in a disbursement of funds beyond September 30, 2031.