Updated info on USDA Rural Energy for America Program (REAP):

• Underutilized Technology (UT) applications, including wind projects, have been backlogged for most of the states due to the overwhelming increase in REAP applications and USDA’s limited staff for reviews. The review staff has been prioritizing applications for grant requests under $20,000. DWEA has been urging USDA to clear the wind projects bottleneck for several months now and we were recently told that USDA is now prioritizing the UT applications. HQ has reportedly asked state RD offices to also prioritize UT applications. No timeframe for clearing the pipeline of applications was provided.

• While USDA upper management has the final say, the direct management of the REAP program says they have no plans to transfer unspent FY23 and FY24 UT funds into the larger REAP funding pot. This is a critical issue for the DW industry because most of the UT appropriations were in the first two years and our industry needs time to create sales and deal flow. Note per the IRA language, UT funds that are not utilized at the end of the fiscal year are required to revert to the general pool of REAP program funds. There is no desire to transfer funds to the general REAP funding pool prior to the mandatory deadline. Each year through 2027 approximately $31.8 million is additionally made available for underutilized technology.

• USDA hasn’t committed to quarterly application deadlines beyond September 30 but say that UT applications are now likely to be reviewed as received and they strongly encourage the DW industry to submit as many applications as possible in the coming months. The industry needs to demonstrate a positive deployment trend and USDA hopes to lock in as much UT funding as possible. So, please redouble your efforts to get REAP applications submitted by the end of next month.

The DWEA Board will hold an in-person mini lobby day in Washington, D.C., on Nov. 13 (click here to register), and we intend to meet with legislators who can help the DW industry on REAP, Underutilized Technologies reserve funding, and the Farm Bill. The UT fund was established in the IRA legislation but is NOT yet part of enduring federal policy. We need that done in the Farm Bill.