HR-6093-119
Referred to the Subcommittee on Commodity Markets, Digital Assets, and Rural Development.
Sponsored by Dusty Johnson (R-SD)
What it does
This bill would amend Section 9007 of the Farm Security and Rural Investment Act of 2002, which governs the USDA's Rural Energy for America Program. It would add agricultural cooperatives with fewer than 2,500 employees to the list of entities eligible for the program's assistance for renewable energy systems and energy efficiency improvements. It does not itself change funding levels or program rules.
Who benefits
Agricultural cooperatives with fewer than 2,500 employees, such as grain, dairy, and processing cooperatives, which could apply for energy grants, loan guarantees, or efficiency funding. Farmer-members of those cooperatives, who may see lower energy costs passed through. Renewable energy and energy-efficiency equipment vendors and installers who could gain new customers. Rural communities where cooperatives are major employers.
Who is hurt
Existing eligible applicants (individual producers and rural small businesses) who may face more competition for a fixed pool of program funds unless appropriations rise. Taxpayers, if added demand leads to higher spending. USDA staff who may face a larger application workload. Smaller cooperatives and producers may be disadvantaged if larger cooperatives with more grant-writing capacity win a larger share of funds.
Supporters argue
Supporters argue that many agricultural cooperatives run energy-intensive operations like grain drying, refrigeration, and processing, and that their size can exclude them from existing eligibility categories even though they are owned by farmers. They contend that the 2,500-employee cap keeps the program focused on cooperatives rather than large corporations, and that the bipartisan group of sponsors reflects broad rural support for lowering farm-sector energy costs.
Opponents argue
Opponents argue that the program was designed for individual producers and small rural businesses, and that adding cooperatives with up to 2,500 employees could divert limited funds toward sizable organizations that can finance projects on their own. They contend that, without a matching increase in appropriations, the change could reduce awards to smaller applicants and add to federal spending and administrative burden.
Constitutional context
Congress acts under its Article I, Section 8 Spending Clause authority to fund agricultural and energy programs and attach eligibility conditions, as recognized in South Dakota v. Dole (1987) and United States v. Butler (1936). The bill raises no other significant constitutional question.
Checks and balances
Congress expands eligibility and controls funding through appropriations, while USDA administers the program and sets application procedures. Oversight comes through House and Senate Agriculture Committees and the annual appropriations process.
Historical precedent
The Rural Energy for America Program has been reauthorized and modified in successive farm bills since 2002, with eligibility and funding adjusted periodically, including through the 2008 and 2018 farm bills.