September 20, 2004

WASHINGTON, D.C. -- The U.S. Department of Agriculture (USDA) has awarded $22 million in renewable energy and energy efficiency grants for projects across rural America. This program, funded under Section 9006 of the 2002 Farm Bill, represents one of the most important new clean energy initiatives passed in recent years. Because energy is a fast-growing farm expense, this program is an important tool for keeping farmers solvent and controlling inflation.

The American Council for an Energy-Efficient Economy (ACEEE) is pleased that the USDA continues to award grants for both energy efficiency and renewable energy projects in the second year of this successful program. While most of the funding went to renewable energy projects, energy efficiency awards went to three times the number of recipients as there were in 2003, representing a half-million-dollar increase in efficiency project funding. "It's a definite improvement over last year's awards for efficiency thanks to USDA's leadership and willingness to mold the program to be even more effective. ACEEE looks forward to even more efficiency awards in the next grant cycle," said Elizabeth Brown, ACEEE's Agriculture Project leader.

"The farm economy has been hit hard by high energy prices, which also affect fertilizer and other costs. This program helps farmers control costs, which reduces inflationary pressure on food prices," stated William Prindle, ACEEE's Deputy Director. "Our research has shown that saving energy not only cuts energy bills for consumers who invest in efficiency, it also reduces energy prices for all consumers."

ACEEE hopes the success of the program will be reflected in the program budget for next year. "Right now, the 2005 program is projected to be funded at $20 million," said Neal Elliott, ACEEE's Industry Program Director. "Clearly, a program that contributes to rural America's economic stability should continue to be funded to the full $23 million as mandated by Congress in the 2002 Farm Bill."

For more information on the energy efficiency provisions of the 2002 Farm Bill and ACEEE's activities to encourage energy efficiency in agriculture and rural areas, visit http://aceee.org/industry/agriculture.htm.