rural energy for america program everett january 19, 2011
DESCRIPTION
Rural Energy for America Program Everett January 19, 2011. INTRODUCTIONS Sharon Exley-Business Programs Specialist/NW Area Mary Traxler- Energy Coordinator/ State Office Jan Cyr-Area Specialist/ NW Area Office. Housekeeping. Participants: . Potential applicant-interest - PowerPoint PPT PresentationTRANSCRIPT
United States Department ofAgriculture
Renewable Energy ProgramsRural Development Business Programs
Rural Energy for America ProgramEverett
January 19, 2011
United States Department ofAgriculture Renewable Energy Programs
INTRODUCTIONSSharon Exley-Business Programs Specialist/NW Area
Mary Traxler- Energy Coordinator/ State OfficeJan Cyr-Area Specialist/ NW Area Office
United States Department ofAgriculture Renewable Energy Programs
Housekeeping
United States Department ofAgriculture Renewable Energy Programs
Participants: Potential applicant-interestTechnology provider-type
Other- Assistance OrganizationConsultant etc.
What you hope to gain from this session:
United States Department ofAgriculture
Renewable Energy Programs
RURAL DEVELOPMENTCommitted to the future of rural communities
USDA is an equal opportunity provider, employer, and lender
United States Department ofAgriculture
Renewable Energy Programs
USDA is an equal opportunity provider, employer, and lender.
United States Department ofAgriculture
Renewable Energy Programs
2008 Farm Bill Title IX Section 9003: Biorefinery Assistance Program –
Provides loan guarantees of up to $250 million for the development, construction and retrofitting of commercial-scale bio-refineries
Section 9004: Repowering Assistance – Provides payments to existing bio-refineries to
replace fossil fuels used to produce heat or power to operate the bio-refineries with renewable biomass.
United States Department ofAgriculture
Renewable Energy Programs
2008 Farm Bill Title IX
9005: Bioenergy Program for Advanced Biofuels Provides payments to eligible agricultural
producers to support and ensure an expanding production of advanced bio-fuels
9008: Biomass Research and Development Supports research, development, and
demonstration of biobased products, biofuels, and biopower
United States Department ofAgriculture
Renewable Energy Programs
Section 9007: Rural Energy for America Program• Establishes a grant and loan guarantee program to
assist ag producers and rural small businesses in purchasing renewable energy systems and making energy efficiency improvements
• Establishes a grant program for energy audits, technical assistance
2008 Farm Bill Title IX
United States Department ofAgriculture
Renewable Energy ProgramsRural Development Business Programs
Renewable Energy Feasibility Study Grant Renewable Energy Development Assistance Grant Energy Audit Grant Renewable Energy Systems & Energy Efficiency
Improvements Grant, Grant & Loan Guarantee, Loan Guarantee
REAP Funding Opportunities
United States Department ofAgriculture
Renewable Energy ProgramsRural Development Business Programs
Online Resources
Application templates & forms http://www.rurdev.usda.gov/wa/BUSREAP.htm
Part 4280-B Regulation http://www.rurdev.usda.gov/regs/regs_toc.htm
United States Department ofAgriculture
Renewable Energy ProgramsRural Development Business Programs
Online Resources:
Catalog of Federal Assistance: https://www.cfda.gov/
National Website:http://www.rurdev.usda.gov/rbs/farmbill/
index.html
United States Department ofAgriculture
Renewable Energy Programs
Purpose for REAP RE & EE
Provide financial assistance to agricultural producers and rural small businesses for the purpose of purchasing and installing renewable energy systems and energy efficiency improvements in rural areas.
United States Department ofAgriculture
Renewable Energy ProgramsRural Development Business Programs
Eligible Technologies
Biomass and Bioenergy Projects Anaerobic DigestersHydrogen production from renewablesGeothermal, direct use
United States Department ofAgriculture
Renewable Energy ProgramsRural Development Business Programs
Eligible Technologies
Geothermal, electric generationSolar, small and large, electric and thermalWind, small and largeEnergy Efficiency Improvements
United States Department ofAgriculture
Renewable Energy Programs
Grant Funding
Maximum grant assistance to one individual or entity -$750,000
Renewable Energy Systems Applications -minimum grant $2,500, max $500,000
Energy Efficiency Improvements Applications- minimum grant $1,500, max $250,000
United States Department ofAgriculture
Renewable Energy Programs
General Provisions for REAP RE & EE
Grant amount may not exceed 25% of the eligible costs of the project
A combined loan guarantee and grant may not exceed 75% of the eligible project costs
United States Department ofAgriculture
Renewable Energy Programs
Program Considerations – Grants and Loan Guarantees
Type of system to be purchasedEstimated quantity of energy to be generatedEnvironmental benefits of the systemExtent of system replicationExpected energy savings - energy auditEstimated payback period
United States Department ofAgriculture
Renewable Energy Programs
Applicant Eligibility
1. The applicant must be an agricultural producer or a rural small business.
2. Individuals must be citizens of the U.S. or reside in the U.S. after being legally admitted for permanent residence
United States Department ofAgriculture
Renewable Energy Programs
Applicant Eligibility3. Entities must be 51% owned or directly or
indirectly by either citizens or the U.S. or legally admitted for permanent residence
May not have outstanding Federal judgments, delinquent Federal income taxes, delinquent Federal debt
Must have a demonstrated financial need
United States Department ofAgriculture
Renewable Energy Programs
Project Eligibility
1. The project must be for the purchase of a renewable energy system or to make energy efficiency improvements.
2. The project must be for pre-commercial or commercially available and replicable technology.
Not for research and development projects.
United States Department ofAgriculture
Renewable Energy ProgramsProject Eligibility
3. The project must be technically feasible. Technical feasibility will be based on information provided by the applicant and recognized industry experts. The National Renewable Energy Laboratory (NREL) may review some projects for technical feasibility.
Project Eligibility
United States Department ofAgriculture
Renewable Energy ProgramsProject Eligibility
4. The project must be located in a rural area
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
Project Eligibility
United States Department ofAgriculture
Renewable Energy Programs
Project Eligibility
5. The applicant must be the owner of the system and control the operation and maintenance of the proposed project. A qualified third party operator may be used to manage the operation and/or maintenance of the proposed project.
United States Department ofAgriculture
Renewable Energy Programs
Project Eligibility
6. The project site must be controlled by the applicant for the term of the Federal assistance.
7. All projects financed must be based on satisfactory sources of revenue in an amount sufficient to provide for the operation and maintenance of the system or project. (Financial Feasibility)
United States Department ofAgriculture
Renewable Energy Programs
Eligible Project Costs – Grants and Loan Guarantees
Must be integral &necessary part of the system:1. Post-application purchase and installation of
equipment (new, refurbished, or remanufactured), except agricultural tillage equipment, used equipment, and vehicles
2. Post-application construction or improvements, except residential
United States Department ofAgriculture
Renewable Energy Programs
Eligible Project Costs – Grants and Loan Guarantees
3. Energy audits or assessments4. Permit and License Fees5. Professional service fees, except for
application preparation fees6. Feasibility Studies and Technical Reports7. Business Plans8. Retrofitting
United States Department ofAgriculture
Renewable Energy Programs
Eligible Project Costs – Grants and Loan GuaranteesConstruction of a new energy efficient facility
only when: new facility is used for same purpose is approximately same size will provide more energy savings than improving the existing facility (based on the energy audit) Only costs identified in the audit for energy efficiency improvements are allowed.
United States Department ofAgriculture
Renewable Energy Programs
Eligible Project Costs – Grants and Loan Guarantees
For Renewable Energy Projects Onlycan also include10. Working capital11. Land acquisition
United States Department ofAgriculture
Renewable Energy Programs
Ineligible Project Costs
Those NOT an integral and necessary part of the renewable energy system or energy efficiency improvement.
Agricultural tillage equipment, used equipment and vehicles
Residential projects (single family, multi-family and Bed & Breakfast)
Fees for application preparation
United States Department ofAgriculture
Renewable Energy Programs
Ineligible Project Costs
All costs not specifically listed as “Eligible Project Costs”
ie: capital leases, residential improvements, waste collection: production, collection, and transportation of energy inputs, funding of political or lobbying activities, etc.
United States Department ofAgriculture
Renewable Energy Programs
Ineligible Project Costs
Construction of a new energy efficient facility that is not to be used for the same purpose, is not approximately the same size and would provide less energy savings than improving an existing facility;
Costs not identified in an energy audit.
United States Department ofAgriculture
Renewable Energy Programs
Feasibility Study
A business level feasibility study will be required on all renewable energy system projects with total eligible project costs exceeding $200,000.
Study must be completed by an independent qualified consultant.
United States Department ofAgriculture
Renewable Energy Programs
Feasibility Study Components
Must include an evaluation of: economic feasibility market feasibility technical feasibility financial feasibility management feasibility
United States Department ofAgriculture
Renewable Energy Programs
Energy Audit
An energy audit or energy assessment must be included on all energy efficiency projects with total eligible costs exceeding $50,000
Conducted by a Certified Energy Manager or Professional Engineer
EA that meets criteria for Farm Service Agency programs
United States Department ofAgriculture
Renewable Energy Programs
OKSO…. HOW DO I APPLY?
United States Department ofAgriculture
Renewable Energy ProgramsRural Development Business Programs
DO NOT APPLY AT GRANTS.GOV
United States Department ofAgriculture
Renewable Energy Programs
Application Process
Separate applications must be submitted for the Renewable Energy Systems, Energy Efficiency Improvement projects and Feasibility Study projects.
United States Department ofAgriculture
Renewable Energy Programs
Application Process
Submit Applications to the USDA Rural Development State Energy Coordinator in Olympia, Washington
Submit an original and one complete copy Applications are accepted at any time and
will be considered for available funds.
United States Department ofAgriculture
Renewable Energy Programs
Application Process
Parallel paths :Grant application underwayTechnology provider producing tech reportUSDA environmental review process Lender working on loan application
United States Department ofAgriculture
Renewable Energy Programs
Application Process
Critical step: Discuss project and environmental review process with the Area Business Specialist
Environmental must be completed when application is submitted.
United States Department ofAgriculture
Renewable Energy Programs
Application Process
Sharon Exley, NW Washington 360-428-4322, Ext. [email protected]
Carlotta Donisi, SW Washington [email protected]
Ted Anderson, NE Washington 509-924-7350, Ext. [email protected]
Roni Baer, SE Washington 509-454-5740, Ext. [email protected]
United States Department ofAgriculture
Renewable Energy Programs
Application Process
Key resource:Wa. State Energy Website- for NOFA/ NOSA
templates, forms, regulations, checklists
http://www.rurdev.usda.gov/wa/BUSREAP.htm
United States Department ofAgriculture
Renewable Energy Programs
Application Process
Applications must be in the format as provided in template
http://www.rurdev.usda.gov/wa/BUSREAP.htm
United States Department ofAgriculture
Renewable Energy Programs
Application Process
No 3-ring binders or bound papersBinder Clip, rubber band or 8 position folderSections need to be tabulated, indexed or
dividedTable of Contents, reference section and page
numbers
United States Department ofAgriculture
Renewable Energy Programs
Application Process
All grant applicants must obtain a DUNS number
Website – http://fedgov.dnb.com/webform/displayhomepage.do
United States Department ofAgriculture
Renewable Energy Programs
Application and Documentation Table of Contents
Include page numbers for each component of the application in the Table of Contents.
Begin pagination immediately following the Table of Contents
United States Department ofAgriculture
Renewable Energy Programs
Application Process – Required Forms
Complete forms for Template Tab A SF 424 – Application for Federal Assistance SF 424C - Budget Info/Construction Or SF 424D- Assurances - Construction 1940-20 Environmental Questionnaire
United States Department ofAgriculture
Renewable Energy Programs
Application Process – Required FormsComplete forms for Template Tab BAD 1049 – Certification Regarding a Drug-Free
workplace RequirementsAD 1048 - Certification Regarding Debarment,
Suspension and Other Responsibility Matters – Lower tier
Exhibit A-1 of 1940-Q Cert. for Contracts, Grant and Loans (If grant app is $100,000 or more)
United States Department ofAgriculture
Renewable Energy Programs
Application Process – Required FormsTAB B Continued
SF-LLL - Disclosure of Lobbying Activities AD 1047 – Certification Regarding Debarment,
Suspension and Other Responsibility Matters – Primary Covered Transactions
RD 400-1 – Equal Opportunity Agreement RD 400-4 – Assurance Agreement Intergovernmental comments (if applicable)
United States Department ofAgriculture
Renewable Energy Programs
Application Process – Required FormsTAB B Continued
Certification of Relationship with AgencyCertification of Demonstrated Financial Need Intergovernmental Review if applicable
United States Department ofAgriculture
Renewable Energy Programs
Application and Documentation Forms, Certifications, and Organizational Documents
Tab C Organizational Documents- Legal organizational documents are
required to be submitted as part of the application, except for sole proprietorships
United States Department ofAgriculture
Renewable Energy Programs
Application and Documentation Project SummaryTab DTitle – Provide a descriptive title of the
project (should be the same as on SF 424)Applicant Eligibility – describe how each
criteria outlined in §4280.107 is metProject Eligibility – describe how each criteria
outlined in §4280.108 is met
United States Department ofAgriculture
Renewable Energy Programs
Application and Documentation Project Summary
Description of Operation• Describe the applicant’s farm, ranch or
business operation - §4280.111(b)(3)(iv)Financial Information for Size Determination
• Must be substantiated by authoritative records - §4280.111(b)(3)(v)
United States Department ofAgriculture
Renewable Energy Programs
Application Process Tab E - Matching Funds Documentation Applicant must provide at least 75 percent of
the eligible project costs to complete the project – “Matching Funds”
Matching Funds may not include applicant in-kind contributions or other Federal grant awards
United States Department ofAgriculture
Renewable Energy Programs
Tab F - Self Evaluation ScoreEvaluation Criteria
1. Quantity of Energy Replaced, produced or Saved.
2. Environmental Benefits. 3. Commercially Available.4. Technical Merit Score. (NREL will make
Determination
United States Department ofAgriculture
Renewable Energy Programs
Technical Report (filed in Tab H)
A critical component used by USDA RD-NREL
In scoring
United States Department ofAgriculture
Renewable Energy Programs
Technical Report
Use Appendix A to RD Instruction 4280-B for projects with total eligible costs less than $200,000.
Use Appendix B to RD Instruction 4280-B for projects with total eligible costs exceeding $200,000.
United States Department ofAgriculture
Renewable Energy Programs
Technical Report
Projects greater than $1,200,000 must include an opinion and recommendation by an independent qualified consultant
RE projects costing more than $400,000 and EEI projects costing more than $200,000 require the services of a professional engineer (PE)
United States Department ofAgriculture
Renewable Energy Programs
Technical Report
A PE may be required for smaller projects depending on the level of engineering and if necessary to ensure public safety
United States Department ofAgriculture
Renewable Energy Programs
(4) Technical Merit Most Important Area of Scoring Criteria Each category has its own maximum possible scoreand will be scored according to the following criteria: 100% description has no significant weaknesses,
exceeds requirements 80% description has one or more significant
strengths, meets requirements
United States Department ofAgriculture
Renewable Energy Programs
(4) Technical Merit
60% description meets basic requirements, but has weaknesses
40% description is lacking one or more critical aspects, key issues not addressed, demonstrates some merit or strengths
20% description has serious deficiencies, internal inconsistencies, missing information
0% description has no merit
United States Department ofAgriculture
Renewable Energy Programs
Rural Development Business Programs
(4) Technical Merit 100% 80% 60% 40% 20%
4A Qualifications of Project Team 3.5 2.8 2.1 1.4 0.7
4B Agreements & Permits 1.75 1.4 1.05 0.7 0.35
4C Energy or resource assessment 3.5 2.8 2.1 1.4 0.7
4D Design & Engineering 10.5 8.4 6.3 4.2 2.1
4E Project development schedule 1.75 1.4 1.05 0.7 0.35
4F Project economic assessment 7 5.6 4.2 2.8 1.4
4G Equipment procurement 1.75 1.4 1.05 0.7 0.35
4H Equipment installation 1.75 1.4 1.05 0.7 0.35
4I Operation and Maintenance 1.75 1.4 1.05 0.7 0.35
4J Dismantling and Disposal 1.75 1.4 1.05 0.7 0.35
United States Department ofAgriculture Renewable Energy Programs
So…. Some helpful hints, things to considerfor the technical report
United States Department ofAgriculture Renewable Energy Programs
Evaluation Criteria
5. Readiness. (Grants Only)6. Small Agricultural Producer/ Very Small
Business. 7. Simplified application 8. Previous Grantees and Borrowers. 9. Return on Investment. 10.Loan Rate (Guaranteed Loan Only)
United States Department ofAgriculture
Renewable Energy Programs
Tab G-Energy Audit
An energy audit or energy assessment must be included on all energy efficiency improvement projects with total eligible costs exceeding $50,000
Conducted by a Certified Energy Manager or Professional Engineer
EA that meets criteria for Farm Service Agency programs
United States Department ofAgriculture
Renewable Energy Programs
Submit Application for review one month before published deadlines-call specialist to determine delivery method
Sharon Exley, NW Washington 360-428-4322, Ext. 159
Carlotta Donisi, SW Washington 360-704-7724
Ted Anderson, NE Washington 509-924-7350, Ext. 115
Roni Baer, SE Washington 509-454-5740, Ext. 134
United States Department ofAgriculture Renewable Energy Programs
GUARANTEED LOAN FUNDING
United States Department ofAgriculture
Renewable Energy Programs
Guaranteed Loan Funding
The minimum amount of guaranteed loan to a borrower is $5,000 less any program grant amounts.
The maximum amount of guaranteed loan is $10 million.
United States Department ofAgriculture
Renewable Energy Programs
Guaranteed Loan Funding
Percentage of guarantee: 85% for loans $600,000 or less; 80% for loans greater than $600,000 up to
and including $5 million; 70% for loans greater than $5 million up to
and including $10 million.
United States Department ofAgriculture
Renewable Energy Programs
Terms of Loan
Real Estate - 30 years maximum; Machinery/equipment - 20 years or the
useful life, whichever is less; Combined on Real Estate and equipment –
must not exceed 30 years; Working capital - 7 years maximum
United States Department ofAgriculture
Renewable Energy Programs
Guaranteed Loan Funding
The amount of the loan made available to an eligible project will not exceed 75% of the total eligible project costs.
United States Department ofAgriculture
Renewable Energy Programs
Credit Quality
Lender must determine the following:(a) Cash flow – business has adequate debt coverage and can accommodate expansion.(b) Collateral – Discounted collateral value will be
at least equal to the loan amount.(c) Industry – Current status of the industry.
United States Department ofAgriculture
Renewable Energy Programs
Credit Quality
Equity - must meet requirements of (1) or (2).
(1) For loans > $600,000 cash equity injection in the project of not less than 25% is required.
(2) For loans < $600,000 cash equity in the project of not less than 15% is required.
United States Department ofAgriculture
Renewable Energy Programs
Equity
Cash equity injection can be in the form of: Cash; Federal Grants; The market value of equity in real property that is to
be pledged as real collateral for the loan may be substituted in whole or in part to meet the cash equity requirement.
United States Department ofAgriculture
Renewable Energy Programs
Equity
RE and EE Guaranteed Program: Cash equity injection = cash injection + FMV of RE
pledged + grants divided by total eligible project costs
Business & Industry Guaranteed Program:Tangible balance sheet equity = tangible equity divided
by total tangible assets
United States Department ofAgriculture
Renewable Energy Programs
Questions?
United States Department ofAgriculture
Renewable Energy Programs
Thank You
USDA is an equal opportunity provider, employer, and lender.