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Renewable Energy and Energy Efficiency Grant Program

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Kansas Wind and Renewable Energy Conference 2008 September 23 & 24, 2008 Topeka, KS Gary Smith Director, Business & Community Programs USDA Rural Development USDA ... – PowerPoint PPT presentation

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Title: Renewable Energy and Energy Efficiency Grant Program


1
(No Transcript)
2
  • Kansas Wind and Renewable Energy Conference 2008
  • September 23 24, 2008
  • Topeka, KS
  • Gary Smith
  • Director, Business Community Programs
  • USDA Rural Development

3
USDAS 2008 Farm Bill
  • Commitment to Rural America
  • Title IX Energy
  • 1 Billion in mandatory funding
  • Section 9003 Provides Biomass Loan Guarantees
  • Section 9004 Assists Conversion to Biomass Energy
  • Section 9005 Encourages Production of Advanced
    Biofuels
  • Section 9006 Continues Biodiesel Fuel Education
    Initiative

4
USDAS 2008 Farm Bill
  • Section 9007 Supports Rural RE and EE
  • Section 9008 Expands Biomass Research and
    Development
  • Section 9010 Promotes Sugar-Based Bioenergy
    Production
  • Section 9011 Promotes Biomass Crop Production,
    Harvesting, Processing

5
Rural Energy for America Program (REAP)Section
9007 formally known as the Renewable Energy
Systems and Energy Efficiency Improvements
Program (Section 9006)
6
Renewable Energy and Energy Efficiency Program
  • A program to help agricultural producers and
    rural small businesses purchase renewable energy
    systems and make energy efficiency improvements.

7
Who is eligible to apply for funding?
  • Agricultural producers directly engaged in ag
    production ( 50 of their gross income)
  • Rural small businesses that meet the
  • SBA Size Standards
  • Demonstrated financial need
  • Project must be located in a rural area
  • Non-profit organizations and public entities are
    excluded

Actual Definitions available in 7 CFR Part 4280
8
SBA Size Standards
  • http//www.sba.gov/services/contractingopportuniti
    es/sizestandardstopics/index.html

Excerpts from SBA Table of Small Business Size
Standards
9
Rural Area
  • Any area other than a city or town with
    population over 50,000. Cannot be in urbanized
    area adjacent to such a city or town.
  • http//eligibility.sc.egov.usda.gov/eligibility/we
    lcomeAction.do

10
What types of projects are eligible?
  • Biomass, Bioenergy
  • Anaerobic digester
  • Geothermal, electric generation
  • Geothermal, direct use
  • Hydrogen
  • Solar, small and large
  • Wind, small and large
  • Energy efficiency

11
Energy Efficiency Examples
  • Bldging Insulation
  • Lighting
  • HVAC Systems
  • Water Heating
  • Power Systems
  • Refrigeration
  • Grain Drying and Curing
  • Irrigation
  • Fans and Blowers
  • Compressors
  • Pumps
  • Windows

EE Projects must have the previous 12 months
history of energy use in order to measure savings
from the project improvements.
12
What projects are eligible?
  • Purchase RE or make EE improvements
  • Pre-commercial or commercially available, and
    replicable technology (No Research and
    Development)
  • Technical Merit and located in a rural area
  • Sufficient revenues for OM, Maintenance Debt
    Service
  • Applicant must own the project and control the
    revenues and expenses, including OM

Pre-Commercial at least one commercial unit in
operation for at least 1 full year in U.S.
13
Eligible uses
  • Post-application purchase and installation of
    equipment (except agricultural tillage equipment
    vehicles)
  • Post-application construction or project
    improvements (except residential)
  • Energy audits or assessments
  • Permit fees and Feasibility Studies
  • Professional service fees (except application
    preparation)

Only costs identified in the Energy Audit for
energy efficiency improvements are allowed (EE)
14
Eligible uses
  • Business plans
  • Retrofitting
  • Construction of a new facility (EE) - same
    purpose same size, based upon energy audit which
    provides more energy savings than improving the
    existing facility
  • Working capital (Guaranteed Loan only)
  • Land acquisition (Guaranteed Loan only)

Ineligible project costs include any costs not
identified above as eligible costs
15
What costs are NOT Eligible
  • Residential Improvements
  • Energy efficiency improvements related to new
    construction
  • Ag tillage equipment
  • Vehicles

This is not an all inclusive list.
16
Technical Requirements
  • Technical requirements are based on type and size
    of technology
  • All requirements follow the same standard project
    development process
  • Qualifications of project team
  • Agreements and permits
  • Resource assessment
  • Design and engineering
  • Project development schedule
  • Financial feasibility
  • Equipment procurement
  • Equipment installation
  • Operations and maintenance
  • Decommissioning
  • For RE projects with total eligible project cost
    greater than 400,000 and for EE projects with
    total eligible project cost greater than 200,000
    the involvement of certified PE required

17
Section 9006 FY2008 Program Technical Merit
18
Evaluation Criteria
  • Used to rank eligible projects to determine order
    of funding
  • Points awarded for
  • Quantity of energy produced or saved
  • Environmental benefits
  • Commercial availability
  • Technical merit
  • Financing readiness
  • Applicant size
  • New applicants

19
What size of grant is available?
  • Not exceed 25 of total eligible project costs
  • Minimum grant request
  • Renewable energy system - 2,500
  • Energy efficiency improvements - 1,500
  • Maximum grant request
  • Renewable energy system - 500,000
  • Energy efficiency improvements - 250,000

Maximum grants per applicant per fiscal year is
750,000
20
What size of Guaranteed Loan (GL) is available?
  • Not exceed 50 of total eligible project costs
    (may be increased to 75)
  • Maximum combination GL and grant cannot exceed
    50 of total eligible project costs
  • Minimum GL request is 5,000 (less grant amount)
  • Maximum GL request is 10 million

Can combine with up to 25M of Business and
Industry GL for larger projects
21
Maximum Loan Guarantees
  • 85 guarantee for loans 600,000
  • 80 guarantee for loans 5MM
  • 70 guarantee for loans 10MM
  • 60 guarantee for loans 25MM

22
Rates and Terms
  • Interest Rates
  • Negotiated between lender and borrower
  • May be Fixed or variable
  • Maximum Loan Terms
  • 7 years for Working Capital
  • 20 years for Machinery Equipment
  • 30 years for Real Estate

23
Rural Energy for America Program Section 9007
  • New Component
  • Grants to complete energy audits and renewable
    energy development assistance
  • Energy applicants
  • Governmental
  • Educational
  • Electric cooperatives and public power entities
  • Other similar organizations

24
Rural Energy for America ProgramSection 9007
  • Funding mandatory
  • FY 09 - 55 million
  • FY 10 - 60 million
  • FY 11 - 70 million
  • FY 12 - 70 million
  • Discretionary Funding 25 million each fiscal
    year for FY 09 - 12

25
Funding Activity FY 2003 thru
2007 Renewable Energy/Energy
Efficiency
Technology No. Amount
Leveraged Biomass 249
135,612,303 458,692,476 Wind
199 36,481,754 504,739,962 Solar 49
1,862,651 4,519,509 Geothermal 26
1,461,337
3,463,084 Hybrid 14 2,529,700
185,664,978 RE Subtotal 537
177,947,745 1,157,080,009 Energy
Efficiency 875 20,703,966
48,343,062 Grand Total 1,412
198,651,711 1,205,423,071
  • Committed to the future of rural communities

26
Funding Activity FY 2003 thru
2007 Renewable Energy/Energy
Efficiency Award
Type No.
Grant Guar. Loan Leveraged
Average Award Grant 1,115
95,153,871 985,265,349
85,340 Guar. Loan 9
70,820,000 176,184,000
7,868,889 Combination 144
11,967,985 20,709,855
43,973,722 226,929
  • Committed to the future of rural communities

27
Rural Energy for America ProgramSection 9007
  • 2008 Awards
  • 639 individuals and businesses in 43 States and
    Virgin Islands.
  • 35.0 million in Grants and Guaranteed Loans for
    RE or EE projects.
  • 27.5 mil. Grant and 7.4 mil. Guaranteed loan

28
Section 9006(9007) Application Deadlines in
FY2008
  • Application Period
  • 2 cycles for grant apps in FY2008
  • 1st deadline was April 15th
  • 2nd deadline was June 16th
  • Guaranteed and Combo deadline was June 16th
  • Multiple Rounds Anticipated for Program in 2009

29
TIPS for Applying for a 9006(9007) Grant
  • Tips
  • Submit an application
  • Start the process early
  • Do some preplanning
  • Check project eligibility
  • Check whether you are an eligible applicant
  • Fill out total application
  • Answer all Questions on the Technical Report
  • Understand what professional services you will
    need

30
TIPS for Applying for a 9006(9007) grant
  • Tips (cont.)
  • Get a Good Energy Audit that tells the story
  • Be prepared to do the process right avoid
  • ill-advised short cuts
  • Allow adequate time to complete the task
  • Do a self-scoring of your application before
    submittal
  • Dont start the project prior to submitting the
    application
  • Coordinate with your local Rural Development
    office
  • What is not in your application cannot be
    considered

31
Section 9006(9007) Program Trends
  • Trends
  • Pitfalls
  • Environmental Issues can hold up application
    development
  • Leverage need commitment
  • Technical Issues not addressed
  • Readiness
  • Incomplete / Inconclusive information
  • Application started too late

32
Past Energy Projects
  • 06-Furniture Store
  • HVAC and lighting
  • 26,000 grant
  • 26,000 EE GL
  • 52,000 BI GL
  • 06-Grocery
  • Refrigeration and lighting
  • 48,838 grant
  • 48,830 EE GL
  • 05-Commercial Bldg
  • HVAC
  • 5,000 grant
  • 05-Grocery Store
  • Refrigeration
  • 9,673 grant
  • 04- General Store
  • Refrigeration
  • 6,935 grant
  • 05-Grocery Store
  • Refrigeration
  • 11,000 grant
  • 03-Grocery Store
  • Refrigeration, HVAC, insulation
  • Lighting, efficient doors
  • 29,075 grant

33
Past Energy Projects
  • 06 Small Wind Turbine
  • (2) 4 kW wind turbines
  • 20,537 grant
  • 06 Grocery/General Store
  • Refrigeration and energy efficient entry door
  • 10,283 grant
  • 06 Auto Parts Store
  • HVAC
  • 4,744 grant
  • 06 Grocery Store
  • Refrigeration, lighting and insulation
  • 23,488 grant
  • 06 Laundry Facility
  • (2) hot water heaters
  • 3,257 grant
  • 06 Manufacturing
  • Water source heat pumps
  • 49,683 grant

34
Past Energy Projects
  • 07 Lumber Co.
  • Heating and lighting
  • 14,950 grant
  • 07 Commercial Bldg.
  • Insulation (roof)
  • 3,819 grant
  • 07 Biodiesel Plant
  • Biodiesel
  • 32,375 grant
  • 07 Farming
  • Irrigation (flood to center pivot)
  • 33,343 grant
  • 07 Office Bldg
  • Lighting, windows
  • insulation (walls/ceiling)
  • 2,270 grant
  • 07 Café Bakery
  • HVAC
  • 3,678 grant
  • 07 Energy Source
  • Waste oil burner
  • 7,872 grant

35
Past Energy Projects
  • Biodiesel Plant
  • Biodiesel
  • 41,835 grant
  • 41,835 EE GL
  • 83,670 BI GL
  • Farming
  • Irrigation (flood to center pivot)
  • 11,875 grant
  • Commercial Business
  • Solar Thermal
  • 5,500 grant
  • Farming
  • Irrigation (engines/motors)
  • 15,080 grant
  • 15,080 EE GL
  • Grocery Store
  • Refrigeration and lighting
  • 20,759 grant
  • 20,769 EE GL
  • 41,518 BI GL

36
  • Section 9006
  • Success Stories

37
Energy Efficiency Success
Kansas 05
38
Energy Savings
39
9006 Success Story Key Data
  • Energy efficiency improvements
  • Replaced old boiler with 3 new high efficiency
    heating units
  • Estimated total eligible project costs 20,000
  • Grant amount 5,000 (25)
  • Projected energy savings gt 40
  • Realized energy savings first 12 months gt 66
  • Anticipated Return On Investment (ROI) 8-11
    years
  • ROI being realized first 12 months 5-6 years

40
Energy Efficiency Success
Kansas 06
41
EE Testimonial
  • Business The assistance we received through the
    Energy Efficiency Program has had a tremendous
    impact on our business and on our community. The
    improvements that were made have allowed us to
    offer the people of our community a much wider
    selection of products. These changes have
    impacted both our bottom line and the health of
    the people in our community. The significantly
    higher level of efficiency of our new units has
    allowed us to be bigger but also to be greener.
    The Energy Efficiency Program has been a
    difference maker in our business.
  • Owner

42
9006 Success Story
  • Energy efficiency improvements
  • Replaced refrigeration cases/freezer with three
    (3) new higher efficiency units
  • Estimated total eligible project costs 41,132
  • Grant amount 10,283 (25)
  • Projected energy savings 4,052,160 kWh/year
  • Anticipated Return On Investment (ROI) 4.32
    years

43
Business Community Programs Business
Programs Business Industry - Guaranteed Loan
(BI) Rural Economic Development Loan Grant
Program (REDLG) Renewable Energy Energy
Efficiency Grant (RE/EE) Rural Business
Enterprise Grant (RBEG) Value Added Producer
Grant (VAPG) Intermediary Relending Program
(IRP) Rural Business Opportunity Grant
(RBOG) Rural Cooperative Development Grant (RCDG)
44
(No Transcript)
45
USDA Rural DevelopmentArea Offices
  • Area 1
  • 2715 Canterbury Drive
  • Hays, KS 67601
  • (785) 628-3081 Phone
  • (785) 625-6065 Fax
  • Area 2
  • 3705 Miller Parkway, Suite A
  • Manhattan, KS 66503
  • (785) 776-7582 Phone
  • (785) 539-2733 Fax
  • Area 3
  • 202 W. Miller Road
  • Iola, KS 66749
  • (620) 365-2901 Phone
  • (620) 365-5785 Fax

46
USDA Rural DevelopmentArea Offices
  • Area 4
  • 1405 South Spencer
  • Newton, KS 67114
  • (316) 283-0370 Phone
  • (316) 283-2379 Fax

Area 5 2106 East Spruce Garden City, KS
67846 (620) 275-0211 Phone (620) 275-4903 Fax
47
USDA Rural DevelopmentTopeka State Office
  • (785) 271-2700 Phone
  • (785) 271-2771 Fax
  • http//www.rurdev.usda.gov/ks
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