Jeffrey Jobe National Business

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Renewable Energy Federal Grant, Loan and Finance
Workshop  Session Federal Energy
ProgramsOrlando, FloridaDecember 16, 2008
Jeffrey JobeNational Business Cooperative
Programs Field AdvisorUSDA Rural Development
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USDA Rural Development

• Rural Housing and Community Facilities Programs
• Rural Utilities Programs
• Rural Business and Cooperative Programs

We are essentially an investment bank for rural
America with a combined portfolio of more than
100 billion in business, infrastructure,
housing, and community facilities.
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Rural Business and Cooperative Programs

• Technical Assistance
• Loans
• Grants
• Loan Guarantees

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Technical Assistance

• Group organizational development assistance
• Feasibility studies review
• Business plan guidance review
• Board development
• Cooperative education
• Resource
• Guidance on Application development

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Intermediary Relending Loans

• Funds to organizations for
• Revolving loan fund startup or recapitalization
  to assist community and business development
• Gap financing

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Rural Business Enterprise Grants

• To support the development of small and emerging
  business enterprises in rural areas.
• Public bodies, non-profit corporations, Native
  American Tribes

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Use of Grant Funds

• Buy and develop land
• Construction, conversion, repairs and
  modernization of buildings, plants and equipment
• Loans for start up and WC
• Technical assistance
• Reasonable fees and charges for professional
  services
• RLF
• Training in conjunction with TA
• Create, expand, and operate rural distance
  learning networks or program

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Rural Business Opportunity Grants

• Funds to public bodies, non-profit corporations,
  Native American Tribes, cooperatives
• Technical assistance and planning for business
  development in rural areas

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Rural Development Programs Renewable Energy /
Energy Efficiency Activity FY 2001 2007
Number and Dollar Amounts
Awarded Business and Industry Guaranteed
Loans 26 212,347,493 Rural Business
Enterprise Grants 35
1,823,178 Rural Business Opportunity Grants 10
577,841 Rural Economic
Development Loans and Grants
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4,580,000 Value-Added Producer Grants
181
28,162,860 Section 9006 Renewable Energy
Grants 1,115
95,123,871 Section 9006 Renewable Energy Loans
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70,820,000 9006 Renewable Energy
Loan/Grant Combos 144
20,709,855(Loans)
144
11,967,985(Grants) Electric Program Loans
16 148,035,544 High
Energy Cost Grants 19
22,108,472
9008 Research Development Grants
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58,140,531 Totals 1,763
674,397,630
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Value-Added Agricultural Products Market
Development (VAPG) Grants
Purpose To assist with marketing of
value-added products. Eligible
Recipients Independent producers,
agricultural produce
group, farmer or rancher cooperative, or majority
controlled producer-based business venture.
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VAPG Best Practices

• Crosswind Energy, LLC 87,000
• Funds will be used to assess the feasibility of
  operating a 21 megawatt wind farm
• The power produced will be sold to an area
  utility company.
• Local ownership

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VAPG Best PracticesOregon

• 300,000 Grant for working capital to operate a
  new Biodiesel facility.
• Biodiesel fuel generated from canola seed.
• Cooperative consist of 2,400 owners/producers.
• Fuel will be sold to Portland fleet of vehicles.

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Rural Economic Development Loans Grants (REDLG)

• Eligibility RUS electric and telephone
  borrowers (not delinquent on any Federal debt or
  in bankruptcy proceeding) and certain other
  electric utilities.
• Purposes Revolving loan programs, community
  development, technical assistance, construction,
  capital improvements, purchase of machinery and
  equipment, and working capital.

Highline Electric Association in Holyoke
Melissa Memorial Hospital
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Rural Economic Development Grant(REDG) Minnesota

• Albert Lea Economic Development Agency.
• 400,000 from REDG.
• Projects 500 new jobs.
• Will produce 30 million gallons of fuel annually.
• Soy-Mor, a biodiesel plant.

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Rural Economic Development LoanIowa

• Western Iowa Energy, LLC.
• 740,000 loan to construct a Biodiesel facility.
• 24 jobs created.
• Produce 30 million gallons a year.

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Business and Industry (BI) Guaranteed Loan
Program

• Eligibility Individuals corporations,
  cooperatives, partnerships, and other legal
  entities, public and private, organized and
  operated on a profit or nonprofit basis and
  Federally recognized Indian tribal groups.
• Purposes Loan proceeds may be used for working
  capital, machinery and equipment, buildings and
  real estate, and certain types of debt
  refinancing. The primary purpose is to create
  and maintain employment and improve the economic
  climate in rural communities.

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BI Guaranteed LoanNew York

• Western New York Energy (WNYE).
• 25 million Business and Industry Loan Guarantee.
• 50 million gallons a year dry mill ethanol plant.
  
• CO2 is captured and sold to soft drink
  manufacturers.
• This will add another 25 to 35 jobs at the site.

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BI Best Practices

• Bison Renewable Energy.
• 9.5 million loan guarantee.
• Biogas Regional Anaerobic Digester (BRAD)
• Officially broke ground on July 10, 2007
• This facility will be capable of producing
  commercial levels of pipeline grade natural gas.

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Definition of Rural Area

• BI, RBEG, RBOG, REDLG, Section 9007
• Any area other than a city or town that has a
  population of greater than 50,000 inhabitants and
  the urbanized area contiguous and adjacent to
  such city or town.

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Farm Bill Energy Title Formerly Section 9006
Renewable Energy Systems and Energy Efficiency
Improvements Program Section 9007, Rural Energy
for America Program. Establishes a grant and
loan guarantee program to assist agriculture
producers and rural small businesses in
purchasing renewable energy systems and making
energy efficiency improvements. Establishes a
Grant Program for energy audits, technical
assistance and feasibility studies.

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Farm Bill Energy Title (Continuation)

• Rural Energy for America Program
• - Loan Guarantee Limits
• 25 Million Cap
• Cap Federal share at 75 of project costs
• - Mandatory Funding
• 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

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Renewable Energy Technologies

• Wind
• Large
• Small
• Geothermal
• Direct Use
• Electrical Generation
• Solar
• Photovoltaic
• Thermal
• Biomass
• Bioenergy
• Digesters
• Hydrogen
• Hydro electric sources
• Energy Efficiency

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Rural Energy for AmericanPennsylvania

• Koller and Son, Inc., Anaerobic Digester.
• 500,000 - 9006 Grant.
• Digestion project will convert waste cheese and
  waste food into methane gas, which will replace
  100,000 gallons of propane use, and 1,000,000 KWH
  of electricity per year, for an annual savings
  of 375,000.

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Renewable Energy Grant Section 9007 andBI
Guarantee Maine

• Backyard Farms, LLC of Madison.
• 500,000- 9007 Grant and 500,000 BI Guarantee
  to assist in the acquisition and installation of
  the parts and equipment for a biomass boiler,
  will generate 6 MW.
• Provides vine ripened tomatoes year round with a
  25 acre greenhouse. The biomass boiler will
  reduce the company dependency on propane to heat
  greenhouses.

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Wind Energy, LLC Example

• VAPG
• Wind Energy, LLC 87,000
• Funds will be used to assess the feasibility of
  operating a wind farm with the power produced
  sold to an area utility company.

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Wind Energy LLCExample
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Winds Energy, LLC

• Section 9006 Renewable Energy
• Wind Farm, LLC 245,000.00
• Wind Farms, LLC 224,000.00
• Wind Farm, LLC 240,000.00
• Wind Farm, LLC 219,000.00
• Farms, Inc. 26,896.00
• Wind Farm, LLC 216,000.00
• Wind Farm, LLC 205,000.00
• Wind Farm, LLC 226,000.00
• Wind Farm, LLC 240,000.00
• Wind Farm, LLC 206,000.00

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Wind Energy LLCExample

• VAPG
• Wind Energy, LLC 215,125
• To pay for working capital expenses associated
  with generating wind from on-farm turbines.

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Small WindNorth Side Marina

• A 3,328 grant will be used by North Side Marina
  to install a small wind turbine to offset their
  electrical use at the marine.

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Comstock Seed, Inc.

• Comstock Seed specializes in Native Seed
  acquisition and consultation. they inventory
  shrub, grass, and flower seed, both native and
  cultivars, for the Western U.S.
• 9 kilowatt photovoltaic system
• Purpose is to offset the electrical use of the
  seed business.

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Small Wind 10 KW

• An 11,305 guaranteed loan and a 11,305 grant
  were used to purchase and install a 10KW wind
  turbine with estimated energy output of 18,000
  KWh. The proposed wind turbine will help defray
  the costs of the goat dairy operation by
  approximately 90. Leveraged funding amounts to
  22,610.

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Project Example
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Energy Efficiency ImprovementRefrigeration
Improvements

• The project consists of purchasing and installing
  door freezers, produce cases, beverage coolers,
  and florescent light fixtures to replace the old,
  inefficient equipment. The technology in the
  replacement units will provide 41.9 energy
  savings.

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Energy Efficiency ImprovementRefrigeration
Improvements
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Energy Efficiency ImprovementHVAC System
Rooftop Unit

• The project consists of purchasing, installing,
  and operating a new HVAC rooftop system to
  replace three 30 year old rooftop units. The
  technology in the replacement unit will provide
  30 energy savings.

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Energy Efficiency ImprovementHVAC System
Rooftop Unit
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Energy Efficiency ImprovementHVAC System
Improvements

• The project consists of purchasing, installing,
  and operating new heat pumps to replace
  inefficient heating/cooling units. The
  technology of the replacement units will provide
  49 energy savings.

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Energy Efficiency ImprovementHVAC System
Improvements
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Section 9006 Funding Activity
FY 2003 thru 2007 Renewable
Energy/Energy Efficiency
Technology No.
Amount Leveraged Biomass 218
49,219,744 282,508,476 Wind
193 35,800,088 505,221,691 Solar 49
1,862,651
4,519,509 Geothermal 24
1,230,996 3,232,743 Hybrid
13 2,514,643
185,649,921 Subtotal 497
90,628,122
981,132,340 Energy Efficiency 762
16,493,734
42,969,435 Subtotal 1,259
107,121,856 1,024,101,775 Guaranteed
Loans 153 91,529,855
181,321,296 Grand Total 1,412
198,651,711
1,205,423,071
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2008 Farm Bill Energy Title Summary
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Biorefinery Assistance Program

• The purpose of this section is to assist in the
  development of new and emerging technologies for
  the development of advanced biofuels, so as to
• increase the energy independence of the United
  States
• promote resource conservation, public health, and
  the environment
• diversify markets for agricultural and forestry
  products and agriculture waste material and
• create jobs and enhance the economic development
  of the rural economy.

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Uses and Use Restrictions

• Loan guarantees are made to fund the development,
  construction, and retrofitting of
  commercial-scale biorefineries using eligible
  technology. The maximum loan guarantee is 250
  million. Mandatory funding is available through
  FY 2012

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Eligible Technologies Under the Program Include

• Technology that is being adopted in a viable
  commercial-scale operation of a biorefinery that
  produces an advanced biofuel and
• Technology not described in subparagraph A. that
  has been demonstrated to have technical and
  economic potential for commercial application in
  a biorefinery that produces an advanced biofuel.

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Deadlines

• To be considered for funding in the first half of
  Fiscal Year 2009, applications must be completed
  and submitted to the USDA Rural Development
  National Office by December 31, 2008. To be
  considered for funding in the second half of
  Fiscal Year 2009, complete applications must be
  submitted to the USDA, Rural Development ,
  National Office between March 1, 2009, and April
  30, 2009.
• http//www.rurdev.usda.gov/rbs/busp/baplg9003.htm

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How to Learn More About Business Cooperative
Programs
Director, Joseph M. Mueller, Rural
Business-Cooperative Service4440 N.W. 25th
Place Gainesville, Florida   32606 Telephone 
(352)  338-3482 Fax  [phone]E-Mail
joe.mueller_at_fl.usda.gov
Brunilda Robles- BC Specialist4440 N.W. 25th
PlaceGainesville, Florida   32606 Telephone 
352-338-3442Fax [phone]E-Mail
Brunilda.robles_at_fl.usda.gov
www.rurdev.usda.gov/rbs/busp/bpdir.htm