HILO, Hawaii (USDA) — The U.S. Department of Agriculture’s Rural Development provides financing opportunities for renewable energy systems and energy efficiency projects—in the form of guaranteed loans and/or grants. 
Rural Development State Director Lorraine P. Shin stated “Hawaii has been awarded $197,000 for six solar projects (out of 15 applications submitted) since the program started in 2002.  Although the grant program is competitive nationwide, we have been able to get a good percentage of our applications funded.  For this year, we would like to increase the level of funding to our local agriculture and small business community to help reduce Hawaii’s dependence on fossil fuels.  Also, we are putting more emphasis on funding energy efficiency projects for Hawaii.”
Energy efficiency improvement projects can be an addition to a renewable system and include things such as retrofitting existing processing operations, replacing lighting/refrigeration/electric motors with more efficient equipment.
It can even include building a more energy efficient facility, when the facility is for the same purpose, is approximately the same size, and will provide more energy savings than improving an existing facility. 
The program can be used to purchase and install renewable energy systems:  solar, bioenergy (biomass, biogas), geothermal, wind, and hydrogen.
Applications are currently being accepted, although no program dollars have yet been allocated for FY 2007. 
A deadline of March 2007 is anticipated for the first round of grant applications, and a July 2007 deadline for guaranteed loan and combination guaranteed loan/grant applications. 
Only ranchers/farmers and rural small businesses are eligible to apply. 
For more information, call Timothy W. O’Connell at 808-933-8313 or e-mail tim.oconnell@hi.usda.gov.