Section 1 Short title
This Act may be cited as the “Rural Energy Equity Act of 2023”.
Rural Energy Equity Act of 2023
A BILL
To amend the Farm Security and Rural Investment Act of 2002 to improve the Rural Energy for America Program, and for other purposes.
Sec. 2 Rural Energy for America Program
Section 9007 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8107) is amended—
in subsection (b)—
in the subsection heading, by striking “Energy audits and renewable energy” and inserting “Project”;
in paragraph (1)—
in subparagraph (A), by inserting “, including for purposes of reducing the carbon footprint of the agricultural producer and rural small business” before the semicolon; and
in subparagraph (B), by inserting “, including for purposes of reducing the carbon footprint of the agricultural producer and rural small business” before the period at the end;
in paragraph (4)—
in subparagraph (B), by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and indenting appropriately;
by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and indenting appropriately;
in the matter preceding clause (i) (as so redesignated), by striking “A recipient” and inserting the following:
“(A) In general—A recipient”
by adding at the end the following:
“(B) Multiple activities—A recipient of a grant under paragraph (1) may use the grant to carry out 1 or more activities described in subparagraph (A).”
in paragraph (6)—
by striking “A recipient” and inserting the following:
“(A) In general—A recipient”
by adding at the end the following:
“(B) Underserved producers and businesses—If the agricultural producer or rural small business under subparagraph (A) is an underserved agricultural producer or rural small business, the amount paid by that underserved agricultural producer or rural small business pursuant to that subparagraph shall be at least 10 percent of the cost of the energy audit.”
in subsection (c)—
in paragraph (3)—
in subparagraph (A)—
by striking “The amount of a grant under this subsection shall not exceed 25 percent” and inserting the following:
“(i) In general—Except as provided in clause (ii), the amount of a grant under this subsection shall not exceed 50 percent”
by adding at the end the following:
“(ii) Underserved producers—The amount of a grant provided under this subsection to an agricultural producer who is a beginning farmer or rancher, a veteran farmer or rancher (as those terms are defined in section 2501(a) of the Food, Agriculture, Conservation and Trade Act of 1990 (7 U.S.C. 2279(a))), or an underserved farmer or rancher shall not exceed 75 percent of the cost of the activity funded by the grant.”
by redesignating subparagraphs (C) and (D) as subparagraphs (D) and (E), respectively;
by inserting after subparagraph (B) the following:
“(C) Maximum percentage of loan guarantee—The portion of a loan that the Secretary may guarantee under this subsection shall be—
“(i) in the case of a loan in an amount that is less than $1,000,000, 90 percent of the principal amount of the loan; and
“(ii) in the case of a loan in an amount that is not less than $1,000,000, 80 percent of the principal amount of the loan.”
in subparagraph (E) (as so redesignated), by striking “subsection (f)” and inserting “subsection (g)”;
in paragraph (4)—
in subparagraph (A), by striking “3-tiered” and inserting “2-tiered”;
in subparagraph (B), by striking “$80,000” and inserting “$150,000”;
by striking subparagraph (C);
by redesignating subparagraphs (D) and (E) as subparagraphs (C) and (D), respectively;
in subparagraph (C) (as so redesignated), in the subparagraph heading, by striking “3” and inserting “2”; and
in subparagraph (D) (as so redesignated)—
by striking “The Secretary” and inserting the following:
“(i) In general—The Secretary”
in clause (i) (as so designated), by striking “tier I projects and more comprehensive for each subsequent tier” and inserting “tier 1 projects and more comprehensive for tier 2 projects”; and
by adding at the end the following:
“(ii) Scoring—The Secretary shall establish a scoring mechanism for tier 1 project applications that is designed to increase program utilization by small- and medium-sized farmers.”
by redesignating subsections (d), (e), and (f) as subsections (e), (f), and (g), respectively;
by inserting after subsection (c) the following:
“(d) Regional demonstration projects
“(1) In general—The Secretary shall carry out regional demonstration projects that incentivize agricultural producers to reduce their carbon footprint or overall carbon equivalent emissions to the maximum extent practicable through the use of energy efficiency improvements and renewable energy systems.
“(2) Publicization—The Secretary shall publicize the results of the regional demonstration projects carried out under paragraph (1).”
in subsection (e) (as so redesignated)—
by striking “The Secretary shall” and inserting “Using funds made available under subsection (g)(4), the Secretary shall”; and
by inserting “or provided, as applicable,” after “conducted”;
in subsection (f) (as so redesignated)—
by striking “subsection (f)” each place it appears and inserting “subsection (g)”; and
in paragraph (1)—
by striking “20 percent” and inserting “25 percent”; and
by striking “$20,000” and inserting “$75,000”; and
in subsection (g) (as so redesignated)—
in paragraph (1), by striking subparagraphs (A) through (E) and inserting the following:
“(A) $50,000,000 for each of fiscal years 2014 through 2023;
“(B) $100,000,000 for fiscal year 2024;
“(C) $150,000,000 for fiscal year 2025;
“(D) $200,000,000 for fiscal year 2026;
“(E) $250,000,000 for fiscal year 2027; and
“(F) $300,000,000 for fiscal year 2028 and each fiscal year thereafter.”
by striking paragraph (2) and inserting the following:
“(2) Project development assistance funding—Of the funds made available for each fiscal year under paragraph (1) or any other funds made available to carry out this section, not less than 5 percent shall be made available to carry out subsection (b).”
by adding at the end the following:
“(4) Administrative expenses—Of the funds made available to carry out this section for a fiscal year, the Secretary shall use not more than 8 percent for administrative expenses.
“(5) Reservation of funds—Of the funds made available to carry out this section for a fiscal year, the Secretary may reserve—
“(A) not more than 15 percent for awarding grants under subsection (c) that support the adoption of underutilized but proven commercial technologies; and
“(B) not more that 5 percent to carry out subsection (d).”