Area Offices

3. Area Offices • Bozeman / Helena Tom Atkins (406) 585-2530 Criag Hildreth & Clay Landry • Billings Gloria Hawkins (406) 657-6297 Matt Holben • Great Falls Vacant (406) 727-7580 Lea McGiboney • Kalispell Lad Barney (406) 756-2005 Eric Hanson • Missoula Kim Maines (406) 829-3395 Dan Johnson & Heather Handeland

4. Rural Energy for America Program(REAP) Section 9007 • Grants • Guaranteed Loans • Energy Audit • Feasibility Study • Project development: ►Renewable Energy Systems ►Energy Efficiency Improvements

5. Renewable Energy System • Defined: System that either produces or produces and delivers usable energy from a renewable energy system, or is a flexible fuel pump.

6. Renewable Energy System Technology • Bioenergy • Anaerobic Digester • Geothermal • Hydrogen • Hydropower • Solar • Wind • Flex Fuel Pump

7. Energy Efficiency Improvements • Defined: Improvements to a facility, building, or process that reduces: * energy consumption, or * energy consumed per square foot.

8. Energy Efficiency Improvement • Limited to improvements identified in an energy audit or energy assessment • Similar in capacity • If greater capacity, total eligible cost of the new equipment will be prorated based on the capacity of the existing equipment

9. Grant Funding Limitation25% of eligible project cost • Renewable Energy System: • Energy Efficiency Improvement: Minimum / Maximum $2,500 to $500,000 $1,500 to $250,000

10. Application Limitation Only One type of funding application for each project can be submitted per Federal Fiscal Year ● Grant-only ● Guarantee loan-only ● Guarantee loan / Grant combination

11. Matching Funds • New Rules removed restriction on third-party in-kind matching contribution. • Statute requires applicant to provide 75% of eligible project costs. ► Other Federal Funds can be used

12. Applicant Eligibility • Agricultural Producers • Directly engaged in agricultural production • 50% or greater of gross revenue • Small Business ► SBA size standards by NAICS ► Private entity, sole proprietor, partnership, corporation, cooperative, electric utility ► Tribal business enterprises formed as Sec. 17 Corporations ► Must operate independent of direct government control

13. Ineligible If: Outstanding judgment in Federal Court or delinquent on federal debt Debarred from receiving Federal assistance

14. Project Eligibility • Purchase of a renewable energy system or to make energy efficiency improvements. • Pre-commercial technology or commercially available, and replicable technology. • Technical merit. • Applicant must be the owner. • Sites must be controlled by the agricultural producer or small business. • Revenues sufficient for operation, management maintenance, and debt service. • Place of business must be located in a state of the U.S.

15. Project Eligibility - Continued • Small Business must be located in rural area • Agricultural Producer ► Project may be located in rural or non rural area ► Projects must be for facilities directly related to agricultural production ► Integral components must be co-located with agricultural production

16. Example • Greenhouse in nonrual area with adjacent retail stand proposes to install install solar panels to power both the greenhouse and retail stand. ► Both facilities are eligible for REAP

17. Eligible Project Costs ►Post-application purchase and installation ► Post-application construction or improvement ► Energy Audits or Assessment ► Permits and Licenses ► Professional fees ► Feasibility Study and Technical Report ► Business Plan and Retrofitting

18. REAP Guarantee • Commercial Loan • Minimum loan: $5,000 • Maximum loan: $25 Million • Rates: Negotiated • Terms • Fees

19. Percent of Loan Guarantee • 85% Loan is less than $600,000 • 80% Loan is $600,000 to $5 Million • 70% Loan is $5 Million to $10 Million • 60% Loan over $10 Million

20. Funding • State Allocation • National Office Reserve • 20% set aside for grants of $20,000 or less

21. Example: Combination REAP Guaranteed Loan & Grant • Eligible Project Costs: $100,000 • REAP guaranteed loan @ 50%: $50,000 • REAP grant @ 25% $25,000 • Owner contribution: $25,000 (IRP revolved funds, cash, loans) ___________________________________________________________ • N.W.E. credit: $10,000 • Fed. Investment tax credit: $19,500 • Possible State tax credit

22. Example: Other Fed. Grant Funds • Eligible Project Costs: $100,000 • REAP guaranteed loan @ 50%: $50,000 • REAP grant @ 15% $15,000 • NRCS grant @ 10% $10,000 • Owner contribution: $25,000 (IRP revolved funds, cash, loans) ___________________________________________________________ • N.W.E. credit: $10,000 • Fed. Investment tax credit: $19,500 • Possible State tax credit

24. Complete Mix Fixed-Film Digester

25. Solar

26. Small Wind

27. Large Wind

28. Hydrogen • Derived from renewable biomass or water using wind, solar, ocean (tide, wave, current and thermal), geothermal or hydroelectric energy sources.

29. Hydropower

30. Geothermal

31. Geothermal – electric generation • Geothermal plants can operate around-the-clock, which increases their value from a reliability point-of-view, unlike some intermittent renewable fuels such as solar and wind. • Geothermal electricity generation technologies consist of either "flash" technology or "binary" technology. With flash technology, water from 300 to 700 degrees Fahrenheit, but still in liquid form, is piped from its highly pressurized underground reservoir into a geothermal facility. Once this super-heated water is released, it flashes into steam that then drives a conventional turbine generator.

32. Flex Fuel Pumps

33. Energy Efficiency