Environmental groups, supported by farmers, solar agencies, and various organizations, have initiated a lawsuit against the U.S. Department of Agriculture (USDA) regarding significant changes to the Rural Energy for America Program (REAP). The changes, implemented during the Trump administration, are claimed to have rendered nearly all solar projects ineligible for funding.
The lawsuit highlights that these modifications were retroactively applied, negatively affecting projects that had already begun construction based on prior eligibility assurances. The Iowa Farmers Union reports that Iowa has been a key participant in the program since its inception in the 2008 farm bill, which aimed to promote renewable energy development in rural areas.
Chad Hughes from the Environmental Law & Policy Center expressed concern that the USDA’s recent announcements have essentially halted the program while introducing new, restrictive regulations. These changes have raised fears among farmers who invested in solar energy under different rules, leading to feelings of betrayal and confusion.
The lawsuit emphasizes that the original intent of REAP was to support renewable energy, and alterations to its funding guidelines, particularly those favoring farmland preservation over solar energy, contradict Congress’s direction. The USDA will face scrutiny, as its processes and reasoning for the changes will be questioned in court. Meanwhile, a new rule requires REAP projects to be fully operational before funding is sought, placing more financial risk on applicants, particularly small farmers and rural businesses.
