JOHANNS ANNOUNCES THE AVAILABILITY OF $188 MILLION IN LOAN GUARANTEES
AND GRANTS FOR RENEWABLE ENERGY AND ENERGY EFFICIENCY PROJECTS

LAS VEGAS, Feb. 22, 2006 - Agriculture Secretary Mike Johanns announced today the availability of
$176.5 million in loan guarantees and almost $11.4 million in grants to support investments in renewable energy and energy efficiency improvements by agricultural producers and small
businesses. Johanns also highlighted that Energy Secretary Samuel W. Bodman today
announced $160 million in cost-shared funding over three years to construct up to three
biorefineries in the United States.

"The availability of these funds will further the Bush Administration's goal to increase renewable energy
from domestic sources, reducing our dependence on imported oil and strengthening our economy,"
Johanns said during keynote remarks at the Renewable Fuels Association's 11th Annual National
Ethanol Conference. "These loans and grants advance USDA's comprehensive energy strategy
announced last December to help farmers, ranchers and rural businesses mitigate the impact of high
energy costs and develop long-term solutions."

In his State of the Union Address, President Bush announced the Advanced Energy Initiative, which
requests $2.1 billion to develop new technologies and alternative sources of energy to help diversify
and strengthen our nation's energy mix. "By applying the talent and technology of America," President
Bush said during the State of the Union, "this country can dramatically improve our environment, move
beyond a petroleum-based economy and make our dependence on Middle Eastern oil a thing of
the past."

The American Competitiveness Initiative is a multi-agency commitment to ensure that America remains
competitive in the global marketplace. It will invest $5.9 billion in FY 2007, and more than $136 billion
over the next 10 years to increase investments in research and development, strengthen education in
math and science, and encourage entrepreneurship and innovation.

In addition, the President's FY 2007 budget proposal for USDA includes more than $250 million each
year in fiscal years 2006 and 2007 for renewable energy and energy efficiency projects through Rural
Development's loan and grants programs, as well as a core investment of $85 million for USDA's energy- related projects. This funding includes resources to support renewable energy research and
demonstration projects and additional efforts to support energy development and transmission
across public lands.

The Renewable Energy and Energy Efficiency loan and grant program was established under Section
9006 of the 2002 Farm Bill to encourage agricultural producers and small rural businesses to create
renewable and energy efficient systems. A total of 435 grants totaling $66.7 million have been awarded
in 36 states since the program began and in 2005, for the first time, renewable energy loan guarantees
were made under the program. One guarantee, for $10 million, was combined with a Business and
Industry guarantee to help fund construction of a 20-megawatt biomass electrical generating plant in
Arizona. That plant will use wildfire damaged timber along with waste from a nearby paper mill as a
fuel source. Grants have been awarded to fund a wide range of wind, solar, biomass, geothermal and
conservation technologies.

Under the program, the maximum amount of a loan guarantee made to a borrower is $10 million. For
renewable energy systems, the minimum grant request is $2,500 and the maximum is $500,000. For
energy efficiency improvements, the minimum grant request is $1,500 and the maximum is $250,000. Rural development grants under the program will not exceed 25 percent of the eligible program costs and a combination of grants and guaranteed loans will not exceed 50 percent.

Applications for grants must be completed and submitted to the appropriate USDA Rural Development
state office postmarked no later than May 12, 2006. Guaranteed loans will be awarded on a continuous
basis. Applications are due to the National Office for funding consideration by July 3, 2006. Any
guaranteed loan funds not obligated by August 1, 2006, will be made available for competitive grants.
For more information refer to the announcement in the February 13, 2006 Federal Register or contact any state Rural Development office. Information is also available on the web at:
http://www.rurdev.usda.gov/rbs/farmbill/index.html.

Johanns also highlighted Energy Secretary Samuel W. Bodman's announcement of $160 million
solicitation as part of President Bush's Biofuels Initiative, which will lead to the use of non-food based
biomass, such as agricultural waste, trees, forest residues and perennial grasses in the production of
transportation fuels, electricity and other products. Accelerating research to make "cellulosic ethanol"
cost-competitive by 2012 offers the potential to displace up to 30 percent of our nation's current fuel use.
For more information on the Department of Energy's $160 million for the development of biofuels and
renewable energy, visit: http://www.doe.gov.

More information on President Bush's Advanced Energy Initiative is available at:


Lola J. Lucero
Rural Development Manager
phone: (307) 672-5820 Ext. 4 Fax: (307) 672-0052
Email: lola.lucero@wy.usda.gov

COMMITTED TO THE FUTURE OF RURAL AMERICA