REAP Update: USDA Issues Final Rule Ahead of Next Application Window
On October 2, 2026, the U.S. Department of Agriculture announced a final rule for the Rural Energy for America Program (REAP). REAP provides grants and guaranteed loans to agricultural producers and rural small businesses for Renewable Energy Systems (RES) and Energy Efficiency Improvements (EEI). USDA notes the rule is intended to streamline how the program is delivered, simplify the application process, reduce risk to the agency, and protect taxpayer dollars.
What USDA has highlighted so far
According to USDA's announcement, important changes to program requirements include:
Implementation of the Agriculture Secretary Brooke Rollins' direction to disincentivize solar photovoltaic and wind energy systems on cropland.
Requiring projects to be fully built, operational, and demonstrating performance before applying. This ensures that the applicant can demonstrate the project's actual documented output, energy savings, costs, and system performance.
Multilocation projects and specific application of certain technologies are now ineligible.
Implementation of a single streamlined national competition process to simplify program administration and prioritize projects delivering verifiable results.
A planned online application portal will significantly decrease burden for applicants by shortening application length and review times across the program.
USDA also noted that applications with a Form RD 1940-1 signed by both the applicant and the agency before the rule takes effect will generally continue to be processed, as long as the project stays in line with its terms and conditions. The announcement also notes a per-year funding limit for each applicant. Businesses that share ownership or management, directly or indirectly and regardless of percentage, will be treated as a single entity under that limit.
What we're doing
Wy'East is following these updates closely and is in communication with the Oregon USDA Rural Development State Office as details become available. Some specifics, including application window dates, are expected in upcoming annual program notices. Our understanding of how the rule applies to individual projects may continue to develop as USDA releases more guidance.
Source: USDA press release, "USDA Issues Final Rule with Comment Period Ahead of Opening the Application Window for Rural Energy for America Program," October 2, 2026.