REAP Modernization Act of 2025

Summary#

This bill changes the Rural Energy for America Program (REAP) in the Farm Security and Rural Investment Act of 2002. It tells the Department of Agriculture to promote projects that reduce greenhouse gas emissions. The bill adds new eligible types of applicants (including producer cooperatives and nongovernmental organizations), allows limited case-by-case help for some cooperatives that do not otherwise qualify, and includes greenhouse-gas reduction potential as a factor when evaluating projects. It requires a statutory percentage in subsection (c)(3)(A) to be changed from 25 percent to 50 percent. The bill creates a streamlined and bundled application process, increases the maximum small grant from $20,000 to $50,000, and requires more outreach, technical assistance, and education—especially about sharing land between energy and agricultural production. It directs a study of "dual-use" systems (renewable energy and agriculture on the same land) with a report and recommendation to Congress within two years. It also removes a requirement that a certain share of project energy must be used by the farm or rural business when a residence shares the same energy meter. Finally, the bill limits outreach spending to no more than 8 percent of Program funds and establishes a reserve fund that must receive at least 15 percent of certain Program funds each year to support underutilized renewable energy technologies.

What it means for you#

  • Farmers, rural small businesses, and local energy groups could see more types of groups qualify for REAP help.
  • Applications may become faster or simpler because of a streamlined and bundled process.
  • Small grant awards could be larger (the maximum is increased from $20,000 to $50,000).
  • Project applications will be reviewed in part on their potential to reduce greenhouse gas emissions.
  • If your project mixes farming and renewable energy on the same land, the Department will study those systems and report to Congress within two years.
  • If a home on the same property shares an energy meter with a farm or rural business, the project will not face a rule about how much of the generated energy must be used by the farm or business.

Expenses#

  • The bill sets that not more than 8 percent of Program funds may be used for outreach, technical assistance, and education.
  • It establishes a reserve fund that must receive not less than 15 percent of certain Program funds each fiscal year; those reserve funds are to be used for projects using underutilized renewable energy technologies and, if unused, for general Program grants.
  • The bill raises a statutory percentage in subsection (c)(3)(A) from 25 percent to 50 percent.
  • No publicly available information on total appropriation amounts or overall cost estimates is included in the provided text.

Proponents' View#

The bill directs the Department to promote greenhouse gas reductions and other climate benefits, expand who can apply, simplify applications, increase small grant amounts, provide technical help, and study combined farm-and-energy systems. Supporters would say these changes modernize REAP to better support renewable energy projects in rural areas and to consider climate benefits.

Opponents' View#

No publicly available information.