USDA launches renewable energy pilot project

Rural Cooperatives, July-August, 2004 by Dan Campbell

Agriculture Secretary Ann M. Veneman has announced a new guaranteed loan pilot project aimed at developing renewable energy systems from the use of livestock as a raw material. "This program will provide guaranteed loans for rural small businesses to develop the means to effectively destroy these specified risk materials from cattle while providing a bio-based source of energy," Veneman said.

In January, USDA expanded the list of specified risk materials prohibited in the food supply as an additional firewall to prevent bovine spongiform encephalopathy (BSE). In addition, the U.S. Food and Drug Administration announced that it intends to prohibit specified risk materials in food regulation by the agency.

The maximum amount of total loan guarantees under the pilot program will be $50 million. USDA anticipates up to three awards will be made.

There is no dollar restriction associated with any one award, within the budget allotment. The amount of the loan guarantee cannot exceed 50 percent of the total project cost. Applicants must submit their application and one copy to the USDA Rural Development state office where the proposed project is located, or where the borrower is headquartered. The notice of funding availability appeared in the May 18 Federal Register: All applications must be received by August 16.

To contact to your USDA Rural Development state office for more information, call (202) 720-4323 and enter "1," or visit the Web site: www.rurdev.usda.gov.