REAP Modernization Act of 2025

The Rural Energy for America Program Modernization Act of 2025 seeks to significantly improve the existing Rural Energy for America Program (REAP) by expanding its scope and increasing financial support for rural energy projects. A primary focus of the bill is to promote the reduction of greenhouse gas emissions and other climate benefits in projects funded through REAP, making climate impact a key consideration for grant evaluations. The legislation expands eligibility for grants and financial assistance to include producer cooperatives and nongovernmental organizations , and allows for limited case-by-case assistance to agricultural producer and rural electric cooperatives. It substantially increases the maximum grant amount for renewable energy systems and energy efficiency improvements from 25 percent to 50 percent of project costs, and raises the maximum grant for energy audits from $20,000 to $50,000. To simplify access, the bill mandates the development of a streamlined application process , including for bundled project applications. Furthermore, the Act enhances program support by expanding outreach to include technical assistance for applicants and education for recipients on integrating renewable energy with agricultural practices, such as dual-use energy systems. It requires the Secretary to conduct a study on these dual-use energy systems , which combine renewable energy production with agriculture on the same land, and report to Congress with recommendations for program expansion. Finally, the bill establishes a reserve fund , allocating at least 15 percent of annual funds for projects utilizing underutilized renewable energy technologies, ensuring continued innovation and adoption in rural areas.