Title: Renewable Energy and Energy Efficiency Grant Program
1(No Transcript)
2 - Basics of Renewable Energy Systems and Energy
Efficiency Improvements Program - Chuck Banks, State Director
- Gary L. Smith, Program Director
- F. Martin Fee, BCP Specialist
- Topeka, Kansas
- September 26, 2007
3 - Basics of Renewable Energy Systems and Energy
Efficiency Improvements Program - F. Martin Fee
- Business and Community Programs Specialist
- Topeka, Kansas
- September 26, 2007
4Renewable Energy and Energy Efficiency Program
- A program to help agricultural producers and
rural small businesses purchase renewable energy
systems and make energy efficiency improvements.
5Who 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
6Formula for 50 of Ag Income
- Gross Farm Income
- __________________________________________
- Total Income Total Farm Business Expenses
7SBA Size Standards
- http//www.sba.gov/services/contractingopportuniti
es/sizestandardstopics/index.html
Excerpts from SBA Table of Small Business Size
Standards
8Rural 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
9What 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
10Energy Efficiency Examples
- Building Envelope
- Lighting
- HVAC Systems
- Water Heating
- Power Systems
- Refrigeration
- Grain Drying and Curing
- Irrigation
- Fans and Blowers
- Compressors
- Pumps
EE Projects must have the previous 12 months
history of energy use in order to measure savings
from the project improvements.
11What 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.
12Eligible 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)
13Eligible 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
14What 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
15What size of Guaranteed Loan (GL) is available?
- Not exceed 50 of total eligible project costs
- 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
16What Guaranteed Loan (GL) rates and terms are
available?
- Interest rate negotiated between lender and
applicant - Real estate must not exceed 30 years
- Machinery and equipment must not exceed 20 years
or useful life - Combined loans of real estate and equipment must
not exceed 30 years - Working capital must not exceed 7 years
172003-2006 Energy Projects
- 06-Hayes Sight and Sound, Inc.
- HVAC and lighting
- 26,000 grant
- 26,000 EE GL
- 52,000 BI GL
- 06-Whites KingCo, Inc.
- Refrigeration and lighting
- 48,838 grant
- 48,830 EE GL
- 05-Epic Homes of Kansas, Inc.
- HVAC
- 5,000 grant
- 05-Luray Grocery
- Refrigeration
- 9,673 grant
- 04-Community General Store
- Refrigeration
- 6,935 grant
- 05-T and T Foods, Inc.
- Refrigeration
- 11,000 grant
- 03-Mackinson Foods, Inc.
- Refrigeration, HVAC, insulation
- Lighting, efficient doors
- 29,075 grant
182006 Energy Projects
- Lipp Properties
- (2) 4 kW wind turbines
- 20,537 grant
- MM Market
- Refrigeration and energy efficient entry door
- 10,283 grant
- Cates Carquest
- HVAC
- 4,744 grant
- Satanta Grocery
- Refrigeration, lighting and insulation
- 23,488 grant
- 27th and Hall Laundry
- (2) hot water heaters
- 3,257 grant
- Cougar Custom Boats
- Water source heat pumps
- 49,683 grant
192007 Energy Projects
- CrossRoads Lumber Co., Inc.
- Heating and lighting
- 14,950 grant
- Thomas E. Wells, Jr.
- Insulation (roof)
- 3,819 grant
- Healy Biodiesel, Inc.
- Biodiesel
- 32,375 grant
- Ivan L. Bohl
- Irrigation (flood to center pivot)
- 33,343 grant
- Agency One
- Lighting, windows
- insulation (walls/ceiling)
- 2,270 grant
- Capers Café Bakery, LLC
- HVAC
- 3,678 grant
- Stafford Development, Inc.
- Air conditioning
- 3,239 grant
- Village Road, LLC
- Waste oil burner
- 7,872 grant
202007 Energy Projects
- Eagle Farms Energy, Inc.
- Biodiesel
- 41,835 grant
- 41,835 EE GL
- 83,670 BI GL
- CKG, Inc.
- Irrigation (flood to center pivot)
- 11,875 grant
- Becklin, Inc.
- Solar Thermal
- 5,500 grant
- HC Farms, Inc.
- Irrigation (engines/motors)
- 15,080 grant
- 15,080 EE GL
- Carlsons Grocery, Inc.
- Refrigeration and lighting
- 20,759 grant
- 20,769 EE GL
- 41,518 BI GL
21Websites
- Current solicitation, forms, and program
information - htttp//www.rurdev.usda.gov/rbs/farmbill
- http//www.rurdev.usda.gov/ks
- Other supportive programs
- http//www.rurdev.usda.gov/rbs/busp/bprogs.htm
22Section 9006 Projections for 2008
- Gary L. Smith
- Director, Business Community Programs
- Topeka, Kansas
- September 26, 2007
232007 Farm Bill Proposals U.S. Department of
Agriculture We need farm policy that recognizes
the tremendous potential of American agriculture.
These proposals do just that. We listened to the
people and now deliver our proposals for
Americas farm bill. - Mike Johanns,
Secretary of Agriculture
24- Title VI
- Rural Development Programs
- All funding reflects 10-year totals unless
otherwise noted
25Title VI Rural Development
- Consolidate rural development programs to
increase flexibility and efficiency - Provide 1.6 billion in loans to complete the
rehabilitation of all 1,283 certified Rural
Critical Access Hospitals
26Title VI Rural Development
- Provide an additional 500 million to reduce the
backlog of rural infrastructure projects - Water and waste disposal loans and grants
- Emergency water assistance grants
- Community Facilities loan and grant programs
- Distance learning and telemedicine grants
27- Title IX
- Energy Programs
- All funding reflects 10-year totals unless
otherwise noted
28Title IX Energy
- Provide 500 million to create a Bioenergy and
Bioproducts Research Program - Increase cost-effectiveness through cooperation
between university and Federal scientists - Provide 500 million for rural alternative energy
and energy efficiency grants - Directly assists farmers, ranchers, and rural
small businesses
29Title IX Energy
- Provide 2.1 billion in loan guarantees to
support cellulosic ethanol projects in rural
areas - Provide 150 million for biomass research
competitive grants, focusing on cellulosic ethanol
30- Section 9006 Trends FY 2003 to 2006
- Rural Development Business Programs
- U.S. Department of Agriculture
31Award Dollars by Technology
32Award Numbers by Technology
33Geographic Award Distribution
34Replicable Business and Technology Models
- Efficiency Improvements
- Poultry Houses
- Grain Dryers
- Irrigation Upgrades
- Community Wind
- Enable local ownership of 1 2 utility-scale
wind turbines - Often employ innovative ownership structures such
as flip model
35Volume of Applications
36Shift in Project Size
37Median Total Project Cost and Award Amount
38Guaranteed Loan and Combination Applications
- In FY 05, 2 guaranteed loans, for a total amount
of 10.1 million (both bioenergy) - short window for application
- In FY 2006, 17 Guaranteed loans, for a total
amount of 24.3 million (varied technologies) - considered first full year
- 15 of these are combination applications
39Guaranteed Loan Technology Breakout, 2005 and 2006
40Guaranteed Loan Activity, 2005 06
41FY 2007 Projects Awarded
42FY 2007 Projects Awarded Nationwide
43Section 9006 FY2008 Program
- Programs
- Grants
- Combination Grant / Guaranteed Loans
- Loans - Guaranteed
44Section 9006 FY2008 Program
- Trends
- Small projects do get funded
- FY07 Average Grant Size
- Grant Only 32,700
- Combo Grant 64,600
- FY07 Average Loan Size
- Combo Loan 76,000
- Loan Only 9,500,000
45Section 9006 FY2008 Program
- NOFA for 2008
- In Process
- Application Period
- To Be Determined
- Start Early Now
- Multiple Rounds Anticipated for Grants
46Section 9006 FY2008 Program
- Trends / Tips
- Program getting very competitive
- Application preparedness increasingly important
- Utilize Scoring Criteria for application
preperation
47Section 9006 FY2008 Program Scoring Criteria
- Quantity of energy produced, replaced or saved
- 10-20 points
- Environmental benefits
- Maximum of 10 points
- Commercial availability
- Maximum of 10 points
- Technical merit
- Maximum of 35 points
- Readiness (grants only)
- Maximum of 15 points
NREL Opinion
NREL Determines
48Section 9006 FY2008 Program Scoring Criteria
- Small agricultural producer/Very small business
- Maximum of 10 points
- Simplified application
- Maximum of 5 points
- Previous grantees or borrowers
- Maximum of 5 points
- Return on investment
- Maximum of 10 points
- Loan rate (guaranteed loan only)
- Maximum of 10 points
NREL Opinion
NREL Determines
49Section 9006 FY2008 Program Technical Merit
50Section 9006 FY2008 Program
- Trends / Tips
- Pitfalls
- Environmental Issues can hold up application
development - Leverage need commitment
- Technical Issues not addressed
- Readiness
- Incomplete / Inconclusive information
- Application started too late
51Section 9006 FY2008 Program
- Growing in Interest
- Government
- Businesses (big and small)
- Wall Street
- International
- Government increasing dollars in RE/EE Programs
- Private Investments increasing dollars
committed
52- Section 9006
- Success Stories
- FY 2003-2007
53Energy Efficiency Success
Epic Homes of Hoisington, Kansas
54Energy Savings
559006 Success StoryHoisington, KS
- 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
56Energy Efficiency Success
MM Market of Belle Plaine, Kansas
572006 EE Testimonial
- MM Market 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. - Mark Fillmore M M Market
589006 Success StoryBelle Plaine, KS
- 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
- Energy savings during the first few months appear
to be meeting their expectations - Anticipated Return On Investment (ROI) 4.32
years
592007 RE Award
- Becklin, Inc. of Spring Hill, Kansas will be
utilizing a 5,500 a RE grant along with matching
funds of 16,888 for the purchase of a small
solar thermal system which will provide heat and
hot water for the buildings that house Becklin,
Inc. This system will produce solar thermal
energy in the form of BTU output for use in
heating the businesses buildings and provide hot
water. The BTU's produced by the system will
replace the BTU's purchased as conventional
fossil fuels and electricity. The energy
replacement is projected to be 816,000 BTU's. The
project's matching funds will be provided by
owner and Becklin, Inc.
602007 EE Award
- CKG, Inc. of Grinnell, Kansas will be utilizing
a 11,875 EE grant along with matching funds of
35,625 to make energy efficiency improvements to
their farm's irrigation system located in Gove
County, Kansas. The EE improvements will consist
of the conversion of a flood irrigation system to
a center pivot system which will provide a
projected 53 percent annual energy savings. - The added benefits of the conversion may include
water savings and higher crop yields. The
project's matching funds will be provided through
a loan from the State - Bank of Grinnell.
612007 RE Award
- Eagle Farms Energy, Inc. of Cherryvale, Kansas
will be utilizing a 14,835 RE grant along with
matching funds of 125,505 for a batch biodiesel
processing system located in Labette County,
Kansas. The system will utilize canola seed,
Virgin Vegetable Oil, or Waste Vegetable Oil to
produce off road, ASTM 6751 standard biodiesel.
The project estimates to produce 360,000 gallons
per year at full production.