Rural Energy Independence Act of 1979

Rural Energy Independence Act of 1979 - Amends the Food and Agriculture Act of 1977 to add a new title XX "Rural Energy Production and Use". Directs the Secretary of Agriculture to establish projects for the production of energy from agricultural commodities and forest products through direct, insured, or guaranteed loans, and grants. Specifies annual ceilings on the amounts of such loans and grants. Requires coordination with other energy loan and grant programs.

Authorizes the Administrator of the Rural Electrification Administration to make loans to specified classes of persons, corporations, and associations to finance projects for the generation and transmission of electricity using previously abandoned hydropower energy production facilities located adjacent to small streams and rivers in rural areas, or for the construction of new plants for electricity produced from biomass energy. Specifies the general terms of such loans.

Directs the Secretary to establish a Rural Energy Council: (1) to advise the Secretary on rural energy needs and production potential; and (2) to establish and operate wood and biomass energy demonstration centers in each Forest Service region.

Directs the Secretary to develop and implement a national rural energy research program as a separate and distinct mission of the Department of Agriculture. Requires the Secretary to conduct a study on the feasibility of alternative crop-livestock systems specifically designed to produce both foodstuffs for domestic and export markets and biomass for energy production use.

Directs the Secretary to establish a national rural energy extension program: (1) to disseminate the results of rural energy research; and (2) to encourage farmers and rural organizations to adopt projects for the production of energy from agricultural commodities.

Requires the Secretary to submit annual reports to Congress on the activities of the Department pursuant to this Act.