CONNECTICUT FARM ENERGY PROGRAM

1. CONNECTICUT FARM ENERGY PROGRAM Farm Energy Conference November 5, 2013

2. Connecticut Farm Energy The CT Farm Energy Program (CFEP) began in 2009 to serve as a resource of information on assistance and funding opportunities in relation to energy and agriculture in Connecticut. • The CT Farm Energy website www.CTFarmEnergy.org • Publications such as the CT Farm Energy Best Management Practice (BMP) guide • Workshops & Events • Email Updates & Correspondence The CT Farm Energy Program also provides FREE grant writing assistance to CT Farms and Rural Small Businesses in Connecticut with applying for USDA Rural Development REAP Grants. Partnership of Eastern CT RC&D Area, Inc. & USDA - Rural Development

3. Connecticut Assistance STATE: Energize CT Programs: Connecticut Energy Efficiency Fund Clean Energy Finance & Investment Authority (CEFIA) ZREC & LREC Connecticut Department of Agriculture FEDERAL: USDA Rural Development – REAP Program USDA – NRCS EQIP Program USDA – FSA (Loans)

4. Conservation - 1st Energy Efficiency - 2nd Renewable Energy - 3rd An Energy Audit is Your 1st step to achieving these goals.

5. Eligibility for Energy Initiative Assistance • Applicant must be Eligible under the Farm Bill Environmental Quality Incentives Program (EQIP) • Participant & Land must both be Eligible under EQIP rules • Contract may only include practices from a recently completed Ag. Energy Management Plan (AgEMP122 or 124) or a comprehensive on-farm energy audit that meets ASABE S612 Type 2 Standard • An approved audit is REQUIRED for • 374 Farmstead Energy Improvement • 670 Lighting System Improvement • 672 Building Envelope Improvement

6. Agricultural Energy Management Plan (AgEMP) • What is an AgEMP? • An analysis of current farm infrastructure and management with recommendations about how to reduce energy consumption on the farm. • These plans can be done on: • Farm Headquarters such as dairy, greenhouse, orchard or maple syrup operations. • Field crops • Many of the recommendations from the AgEMP can be funded through EQIP financial assistance.

7. AgEMP 2013 Payment Rates**2014 Payment Rates Have Not been released yet** 2014 Payment Rates will be posted. Go to: www.ct.nrcs.usda.gov search under Programs > Financial Assistance >EQIP > Conservation Activity Plans

8. Energy practices to be offered in 2014 include: • Maple Syrup Operations: Reverse Osmosis, Enhanced Preheaters & Evaporators (air injected, parametric control and gasifiers) • High-efficiency Building Heating Systems • Greenhouse Screens • Wall Insulation – for Buildings and Greenhouses • Plate Cooler • Refrigeration Scroll Compressors • Automatic Controller Systems • Variable Speed Drives • Motor Upgrades • Lighting – LED, Fluorescent • HAF Fans • Exhaust Fans • Compressor Heat Recovery • Root Zone Heating • Greenhouse Roof Vents

9. 2014 NRCS Conservation Programs Sign-up • Applications for AgEMP or implementation of energy practices are accepted year-round, on a continuous basis • NRCS ‘batches’ applications into a Batching Group for ranking/funding purposes • FY 2014 Batching Group Dates for CT NRCS Programs: • December 20, 2013 • January 17, 2014 • February 21, 2014

10. Questions about NRCS Energy Program? Contact your local Service Center: Fairfield & New Haven Counties: 51 Mill Pond Rd; Hamden CT (203) 287-8038 Middlesex & New London Counties: 238 West Town St; Norwich CT (860) 887-3604 Litchfield County: 1185 New Litchfield St; Torrington CT (860) 626-8258 Hartford & Tolland Counties: 100 Northfield St; Windsor CT (860) 688-7725 Windham County: 71 Westcott Rd; Danielson CT (860) 779-0557 CT NRCS State Office: 344 Merrow Rd; Tolland CT (860) 871-4011

11. Renewable Energy of America Program (REAP) What is REAP? Also referred to as Section 9007 of the Farm Bill Is a program of USDA Rural Development, Created in 2002 Farm Bill The program is designed to assist agricultural producers & rural small businesses with energy projects There is National and State allocations REAP Grants can….. Purchase and Install Renewable Energy Systems Make Energy Efficiency Improvements Energy Audits Feasibility Studies Guaranteed Loans for energy projects REAP Grants can not do..... Residential Improvements Energy Efficiency Improvements that are related to new construction that is larger than existing size Agricultural Tillage Equipment Vehicles

12. USDA – Rural Development REAP Eligibilty • AG Producer (50% of gross income must be from Ag production) OR • Small Business (Meets the definition of a small business according to SBA) • Project must be located in a Rural Area if a small business • Technically feasible & commercially available (off the shelf) • Renewable Energy projects require 2 separate electric meters if a residence is on the farm • Energy Efficiency projects require an Energy Audit to be completed prior to applying • RD Grant Approval required before project begins • Must not be debarred or have federal delinquency • Nonprofit organizations and public entities are not eligible.

13. REAP Grant Amounts Energy Efficiency Projects The minimum grant amount is $1,500 and the maximum grant amount is $250,000 Example $1,500 grant (25% of total project cost) min project cost $6,000.00 Renewable Energy Projects The minimum grant amount is $2,500 and the maximum grant amount is $500,000. Example $2,500 grant (25% of total project cost) min project cost $10,000.00 Feasibility Studies The maximum grant amount is $50,000. Minimum/Maximum Guaranteed Loan Amounts The minimum guaranteed loan is $5,000 and the maximum loan guarantee is $25 million. Grant can not exceed 25% of total project cost. Can apply for a guaranteed loan for up to 50%. The remaining matching funds 25% must come from non-federal sources including assets, other available state or local grants, loans or investors.

14. REAP Grants with CFEP Assistance Since 2010 CFEP has helped to secure $643,971.00 in REAP Funds for Connecticut of which $169,618.00 was 2013 REAP Grants Examples of REAP Grants Funded • Specialty Plant Grower – Energy Efficiency Project to replace lights in the greenhouses. - $16,141.32 • Specialty Plant Grower – Energy Efficiency Project with multiple measures - $12,477.00 • Vineyard – Renewable Energy Project to install solar $22,637.00 • Dairy Farm – Renewable Energy Project to install solar $77,363.00 • Grower & Farmstand – Renewable Energy Project to install solar $41,000.00 • Greenhouse Grower- Energy Efficiency Project to replace glass and install shade/heat curtain in the greenhouse - $18,885.00 • Vineyard - Energy Efficiency Project to upgrade refrigeration system and insulate tanks and piping - $20,000. • Greenhouse - Energy Efficiency Project to upgrade outdated in-efficient oil burning heater units with new energy efficient gas powered heater units - $45,218. • Perennial Grower - Renewable Energy Project to install solar for greenhouse use - $20,000. • Historic Mill - Renewable Energy Project to install hydro-electric system - $275,000. • Veterinary Hospital - Renewable Energy Project to install free standing solar panel system - $31,750 in REAP Grant Funds with a $63,500 Guaranteed Loan.

15. REAP Funding USDA Rural Development puts out a NOSA (notice of soliciting applications) once a year, then you have 60 days to submit your application. 2013 NOSA came out in March due in May and we expect it to be similar this year. Since we are on a continuation pattern with the Farm Bill it is unclear at this point what fund allocations will be in 2014. Next Step….. Do you meet eligibility requirements? Have you had an Energy Audit done? Do you have a project in mind? (CT Farm Energy BMP Guide can help with that) Have you meet with contractors for cost estimates? (More than 2 estimates is best) Have you selected a contractor and do you have a budget/funding sources

16. Connecticut Farm Energy CFEP Projects & Upcoming Events Connecticut Farm Energy Best Management Practice Guide is available online at www.CTFarmEnergy.org Connecticut Farm Energy Surveyis currently open until December 31, 2013 and farms are encouraged to take it online at www.surveymonkey.com/s/CTFarmEnergy “This Project was funded in part by matching funds from the Connecticut Department of Agriculture through the Community Investment Act, 05-228.” 2013/2014 Connecticut Farm Energy Grant Assistance Workshops

17. Connecticut Department of Agriculture • Grants & Deadlines • 1. Farm Transition Grant (Applications from farmers and agricultural cooperatives ) Deadline is November 8, 2014 • Priority will be give to projects involving the following: • strengthening of agricultural infrastructure • other adaptations to increases in the number and/or severity of weather events • operations to follow GAP and/or anticipated FSMA requirements • 2. Farm Viability Grant (Applications for Non-Profits and Municipalities) • Deadline is December 9, 2013 • 3. Farm Reinvestment Grant – Deadline is April 2014 (If Funding is available) • Contact Information for AG Grants • Ron Olsen at Ronald.Olsen@ct.gov 860-713-2550 • Applications are available at www.ct.gov/doag/cwp/view.asp?a=3260&q=419410

18. CONTACT US Eastern CT RC&D Area, Inc. Tolland AG Center (TAC) 24 Hyde Ave Vernon, CT 06066 www.EasternRCD-CT.org CT Farm Energy Program Middlesex County Extension Office 1066 Saybrook Rd, Po Box 70 Haddam, CT 06438 (860) 345-3977 www.CTFarmEnergy.org USDA – Rural Development David Brown USDA Service Center 100 Northfield Drive, 4th Floor Windsor, CT 06095 (860) 688-7725 Ext. 135 This is an Equal Opportunity Employer