WASHINGTON, D.C. -- USDA Agriculture Secretary Tom Vilsack announced that the department is accepting funding applications from eligible entities for grants to conduct energy audits under the Rural Energy for America Program (REAP).

"For the first time ever, USDA will make grant funding available this year through the Rural Energy for America Program to help agricultural producers and rural small businesses obtain audits to identify ways to improve energy efficiency," Vilsack said. "The assistance provided by this program is in keeping with President Obama's energy conservation goals for our nation." The program is authorized in Section 9007 of the 2008 Farm Bill.

The audits are intended to help rural small businesses and agricultural producers determine where to make changes in their operations to enable them to reduce energy consumption. Audits are required for energy efficiency projects funded through REAP that exceed $50,000. States, tribal and local governments, land grant colleges or universities, other institutions of higher learning, and electric cooperatives and public power entities are eligible to receive funds to conduct the audits. Parties seeking audits from the grantees must pay 25 percent of audit costs. The maximum grant award is $100,000.

Funds can be used for expenses directly related to providing energy audits and renewable energy development assistance including salaries, travel expenses, marketing and/or outreach activities, office supplies and equipment, plus some administrative expenses. Project costs must be related to assistance provided to agricultural producers and small businesses located in rural areas.

Applications for grants must be completed and submitted on paper or electronically no later than June 9, 2009 to the Missouri State Office, 601 Business Loop 70 West, Suite 235, Columbia, Missouri 65203.

For detailed eligibility information, application instructions, and competitive evaluation criteria, please refer to the Notice of Solicitation of Applications (NOSA) published in the Federal Register on Wednesday, March 11, 2009 (vol. 74, no. 46) or visit the link to the NOSA: http://edocket.access.gpo.gov/2009/pdf/E9-5154.pdf Questions can be directed to Matt Moore at 573-876-0995 or matt.moore@mo.usda.gov.

USDA Rural Development intends to publish and seek public comment on a proposed regulation for the REAP program later this year.

USDA Rural Development's mission is to increase economic opportunity and improve the quality of life for rural residents. Rural Development fosters growth in homeownership, finances business development, and supports the creation of critical community and technology infrastructure.