How are digester projects usually funded?
Anaerobic digester projects are often eligible for various sources of funding, including grants, loans, and income from utility contracts. See the Federal Incentives fact sheet (PDF) (3 pp, 39 KB, About PDF) for current Federal funding opportunities. Since 2000, one of the primary funding sources for anaerobic digester projects is through USDA Rural Development grant and loan programs. In May 2008, Congress passed the Food, Conservation, and Energy Act of 2008 (Farm Bill). This builds upon the first-ever Energy Title of the 2002 Farm Bill, providing new programs and a stronger federal commitment to farm-based energy. Mandatory funding for the Rural Energy for America Program (REAP) – formerly the Section 9006 program – more than doubled from $115 million to $255 million. REAP will continue to include grant and loan funds for construction of proven anaerobic digester systems, but now also includes funds for technical assistance and feasibility studies. For more information, see the USDA
