From an announcement issued by the USDA:

On May 26, 2009, the U.S. Department of Agriculture (USDA) announced it is accepting applications for Rural Energy for America Program (REAP) grants and loan guarantees. REAP (Section 9007 of the 2008 Farm Bill) is the former Section 9006 under the 2002 Farm Bill and provides incentives for the development/construction of renewable energy projects, such as anaerobic digester projects.

REAP renewable energy grants can provide up to 25 percent of eligible project costs, up to $500,000. Loan guarantees or grant and loan guarantee combinations are capped at 75 percent of eligible project costs. More details are available in the Federal Register at http://edocket.access.gpo.gov/2009/pdf/E9-12178.pdf or on the USDA Web site http://www.rurdev.usda.gov/rbs/busp/9006grant.htm.

Application materials may be obtained by contacting one of USDA Rural Development State Offices, which are listed at http://www.rurdev.usda.gov/recd_map.html or by downloading at http://www.grants.gov. Applications are due on July 31, 2009.