§8106. Renewable energy systems and energy efficiency improvements

(a) In general

In addition to exercising authority to make loans and loan guarantees under other law, the Secretary shall make loans, loan guarantees, and grants to farmers, ranchers, and rural small businesses to-

(1) purchase renewable energy systems; and

(2) make energy efficiency improvements.

(b) Eligibility

To be eligible to receive a grant under subsection (a) of this section, a farmer, rancher, or rural small business shall demonstrate financial need as determined by the Secretary.

(c) Cost sharing

(1) In general

(A) Grants

The amount of a grant shall not exceed 25 percent of the cost of the activity funded under subsection (a) of this section.

(B) Maximum amount of combined grant and loan

The combined amount of a grant and loan made or guaranteed shall not exceed 50 percent of the cost of the activity funded under subsection (a) of this section.

(2) Factors

In determining the amount of a grant or loan, the Secretary shall take into consideration, as applicable-

(A) the type of renewable energy system to be purchased;

(B) the estimated quantity of energy to be generated by the renewable energy system;

(C) the expected environmental benefits of the renewable energy system;

(D) the extent to which the renewable energy system will be replicable;

(E) the amount of energy savings expected to be derived from the activity, as demonstrated by an energy audit comparable to an energy audit under section 8105 of this title;

(F) the estimated length of time it would take for the energy savings generated by the activity to equal the cost of the activity; and

(G) other factors as appropriate.

(d) Interest rate

(1) In general

A loan made by the Secretary under subsection (a) of this section shall bear interest at the rate equivalent to the rate of interest charged on Treasury securities of comparable maturity on the date the loan is approved.

(2) Duration

The interest rate for each loan will remain in effect for the term of the loan.

(e) Consultation

In carrying out this section, the Secretary shall consult with the Secretary of Energy.

(f) Funding

Of the funds of the Commodity Credit Corporation, the Secretary shall make available to carry out this section $23,000,000 for each of fiscal years 2003 through 2006 and $3,000,000 for fiscal year 2007.

( Pub. L. 107–171, title IX, §9006, May 13, 2002, 116 Stat. 482 ; Pub. L. 109–171, title I, §1301, Feb. 8, 2006, 120 Stat. 6 .)

Amendments

2006-Subsec. (f). Pub. L. 109–171 substituted "2006 and $3,000,000 for fiscal year 2007" for "2007".