SIOUX CENTER, Iowa, Aug. 8, 2006-Agriculture Secretary Mike Johanns today announced the selection of 12 projects in Iowa, Kansas and Oregon to receive over $9 million in loan guarantees and grants to fund renewable energy and energy efficiency projects. Eight Iowa recipients will receive more than $6 million.

"One year ago today President Bush signed into law the Energy Policy Act, the most comprehensive overhaul of energy policy in over a decade that will help spur enhanced energy security and greater energy independence," said Johanns. "The renewable energy projects funded today are a step toward achieving that goal, promoting energy efficiency and the development of renewable farm based energy sources."

The Renewable Energy and Energy Efficiency program provides grants and loan guarantees to eligible farmers, ranchers, and rural small businesses to assist in developing renewable energy systems and making energy improvements. Projects must be located in a rural area (any area other than cities or towns of greater than 50,000 population and the immediate or adjacent urbanized areas of the cities or towns).

Eligible businesses include sole proprietorships, partnerships, corporations, and cooperatives organized in accordance with 501c(12) of the Internal Revenue Code. In addition, the applicant must meet the Small Business Administration's small business size standards.

More than $6 million of the funds announced today will go to eight Iowa recipients. One of the recipients, Amana Farms, Inc., of Iowa, will receive a $500,000 grant and a $1,065,850 loan guarantee to install an anaerobic digester system. Green Prairie Energy, LLC of Prole, Iowa, will receive a $280,000 grant and a $250,000 loan guarantee to install a 2 MW wind turbine. Tri-City Energy in Keokuk, Iowa, will use a $500,000 grant and a $2 million loan guarantee to construct a biodiesel facility.

Rough and Ready Lumber Company of Cave Junction, Ore., will receive a $500,000 grant and a $2,350,000 loan guarantee to install a biomass high pressure boiler and back pressure turbine generator system to increase steam production for the lumber drying process and produce 1.5 MW of power that will be sold to a local power company. Additional funds will be used by recipients to make energy saving improvements to businesses and to install new energy efficient grain dryers. In all, Johanns announced the award of $9,076,716 in grants and loan guarantees. To see recipients click here:

Recently, Secretary Johanns and U.S. Department of Energy Secretary Sam Bodman announced that the two agencies will co-host a national renewable energy conference to help create partnerships and strategies necessary to accelerate commercialization of renewable energy industries and distribution systems, the crux of President Bush's Advanced Energy Initiative (AEI). The conference, Advancing Renewable Energy: An American Rural Renaissance, is scheduled for October 10-12, 2006, in St. Louis, Missouri.

USDA Rural Development's mission is to increase economic opportunity and improve the quality of life in rural communities. As a venture capital entity, Rural Development has invested over $72 billion since the beginning of the Bush Administration to provide equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. Over 1.2 million jobs have been created or saved through these investments. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA's web site at http://www.rurdev.usda.gov. Additional information about the Advancing Renewable Energy Conference is available at http://www.AdvancingRenewableEnergy.com