Rural Energy for America Program Everett January 19, 2011

1. Rural Energy for America Program Everett January 19, 2011

2. INTRODUCTIONS Sharon Exley-Business Programs Specialist/NW Area Mary Traxler- Energy Coordinator/ State Office Jan Cyr-Area Specialist/ NW Area Office

3. Housekeeping

4. Participants: Potential applicant-interest Technology provider-type Other- Assistance Organization Consultant etc. What you hope to gain from this session:

5. RURAL DEVELOPMENT Committed to the future of rural communities USDA is an equal opportunity provider, employer, and lender

6. USDA is an equal opportunity provider, employer, and lender.

7. 2008 Farm Bill Title IX • Section 9003:Biorefinery Assistance Program – • Provides loan guarantees of up to $250 million for the development, construction and retrofitting of commercial-scale bio-refineries • Section 9004: Repowering Assistance – • Provides payments to existing bio-refineries to replace fossil fuels used to produce heat or power to operate the bio-refineries with renewable biomass.

8. 2008 Farm Bill Title IX • 9005: Bioenergy Program for Advanced Biofuels • Provides payments to eligible agricultural producers to support and ensure an expanding production of advanced bio-fuels • 9008: Biomass Research and Development • Supports research, development, and demonstration of biobased products, biofuels, and biopower

9. 2008 Farm Bill Title IX • Section 9007: Rural Energy for America Program • Establishes a grant and loan guarantee program to assist ag producers and rural small businesses in purchasing renewable energy systems and making energy efficiency improvements • Establishes a grant program for energy audits, technical assistance

10. Renewable Energy Feasibility Study Grant • Renewable Energy Development Assistance Grant • Energy Audit Grant • Renewable Energy Systems & Energy Efficiency Improvements • Grant, Grant & Loan Guarantee, Loan Guarantee REAP Funding Opportunities

11. Online Resources Application templates & forms http://www.rurdev.usda.gov/wa/BUSREAP.htm Part 4280-B Regulation http://www.rurdev.usda.gov/regs/regs_toc.htm

12. Online Resources: Catalog of Federal Assistance: https://www.cfda.gov/ National Website: http://www.rurdev.usda.gov/rbs/farmbill/ index.html

13. Purpose for REAP RE & EE • Provide financial assistance to agricultural producers and rural small businesses for the purpose of purchasing and installing renewable energy systems and energy efficiency improvements in rural areas.

14. Eligible Technologies • Biomass and Bioenergy Projects • Anaerobic Digesters • Hydrogen production from renewables • Geothermal, direct use

15. Eligible Technologies • Geothermal, electric generation • Solar, small and large, electric and thermal • Wind, small and large • Energy Efficiency Improvements

16. Grant Funding • Maximum grant assistance to one individual or entity -$750,000 • Renewable Energy Systems Applications -minimum grant $2,500, max $500,000 • Energy Efficiency Improvements Applications- minimum grant $1,500, max $250,000

17. General Provisions for REAP RE & EE • Grant amount may not exceed 25% of the eligible costs of the project • A combined loan guarantee and grant may not exceed 75% of the eligible project costs

18. Program Considerations – Grants and Loan Guarantees • Type of system to be purchased • Estimated quantity of energy to be generated • Environmental benefits of the system • Extent of system replication • Expected energy savings - energy audit • Estimated payback period

19. Applicant Eligibility • The applicant must be an agricultural producer or a rural small business. • Individuals must be citizens of the U.S. or reside in the U.S. after being legally admitted for permanent residence

20. Applicant Eligibility • Entities must be 51% owned or directly or indirectly by either citizens or the U.S. or legally admitted for permanent residence • May not have outstanding Federal judgments, delinquent Federal income taxes, delinquent Federal debt • Must have a demonstrated financial need

21. Project Eligibility • The project must be for the purchase of a renewable energy system or to make energy efficiency improvements. • The project must be for pre-commercial or commercially available and replicable technology. Not for research and development projects.

22. Project Eligibility Project Eligibility • The project must be technically feasible. Technical feasibility will be based on information provided by the applicant and recognized industry experts. The National Renewable Energy Laboratory (NREL) may review some projects for technical feasibility.

23. Project Eligibility Project Eligibility 4. The project must be located in a rural area http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

24. Project Eligibility • The applicant must be the owner of the system and control the operation and maintenance of the proposed project. A qualified third party operator may be used to manage the operation and/or maintenance of the proposed project.

25. Project Eligibility • The project site must be controlled by the applicant for the term of the Federal assistance. 7. All projects financed must be based on satisfactory sources of revenue in an amount sufficient to provide for the operation and maintenance of the system or project. (Financial Feasibility)

26. Eligible Project Costs – Grants and Loan Guarantees Must be integral &necessary part of the system: • Post-application purchase and installation of equipment (new, refurbished, or remanufactured), except agricultural tillage equipment, used equipment, and vehicles 2. Post-application construction or improvements, except residential

27. Eligible Project Costs – Grants and Loan Guarantees 3. Energy audits or assessments 4. Permit and License Fees 5. Professional service fees, except for application preparation fees 6. Feasibility Studies and Technical Reports 7. Business Plans • Retrofitting

28. Eligible Project Costs – Grants and Loan Guarantees Construction of a new energy efficient facility only when: • new facility is used for same purpose • is approximately same size • will provide more energy savings than improving the existing facility (based on the energy audit) Only costs identified in the audit for energy efficiency improvements are allowed.

29. Eligible Project Costs – Grants and Loan Guarantees For Renewable Energy Projects Only can also include 10. Working capital 11. Land acquisition

30. Ineligible Project Costs • Those NOT an integral and necessary part of the renewable energy system or energy efficiency improvement. • Agricultural tillage equipment, used equipment and vehicles • Residential projects (single family, multi-family and Bed & Breakfast) • Fees for application preparation

31. Ineligible Project Costs All costs not specifically listed as “Eligible Project Costs” ie: capital leases, residential improvements, waste collection: production, collection, and transportation of energy inputs, funding of political or lobbying activities, etc.

32. Ineligible Project Costs • Construction of a new energy efficient facility that is not to be used for the same purpose, is not approximately the same size and would provide lessenergy savings than improving an existing facility; • Costs not identified in an energy audit.

33. Feasibility Study • A business level feasibility study will be required on all renewable energy system projects with total eligible project costs exceeding $200,000. • Study must be completed by an independent qualified consultant.

34. Feasibility Study Components • Must include an evaluation of: • economic feasibility • market feasibility • technical feasibility • financial feasibility • management feasibility

35. Energy Audit • An energy audit or energy assessment must be included on all energy efficiency projects with total eligible costs exceeding $50,000 • Conducted by a Certified Energy Manager or Professional Engineer • EA that meets criteria for Farm Service Agency programs

36. OK SO…. HOW DO I APPLY?

37. DO NOT APPLY AT GRANTS.GOV

38. Application Process • Separate applications must be submitted for the Renewable Energy Systems, Energy Efficiency Improvement projects and Feasibility Study projects.

39. Application Process • Submit Applications to the USDA Rural Development State Energy Coordinator in Olympia, Washington • Submit an original and one complete copy • Applications are accepted at any time and will be considered for available funds.

40. Application Process Parallel paths : • Grant application underway • Technology provider producing tech report • USDA environmental review process • Lender working on loan application

41. Application Process Critical step: Discuss project and environmental review process with the Area Business Specialist Environmental must be completed when application is submitted.

42. Application Process • Sharon Exley, NW Washington 360-428-4322, Ext. 159 sharon.exley@wa.usda.gov • Carlotta Donisi, SW Washington 360-704-7724 carlotta.donisi@wa.usda.gov • Ted Anderson, NE Washington 509-924-7350, Ext. 115 ted.anderson@wa.usda.gov • Roni Baer, SE Washington 509-454-5740, Ext. 134 veronica.baer@wa.usda.gov

43. Application Process Key resource: • Wa. State Energy Website- for NOFA/ NOSA templates, forms, regulations, checklists http://www.rurdev.usda.gov/wa/BUSREAP.htm

44. Application Process • Applications must be in the format as provided in template • http://www.rurdev.usda.gov/wa/BUSREAP.htm

45. Application Process • No 3-ring binders or bound papers • Binder Clip, rubber band or 8 position folder • Sections need to be tabulated, indexed or divided • Table of Contents, reference section and page numbers

46. Application Process • All grant applicants must obtain a DUNS number • Website – http://fedgov.dnb.com/webform/displayhomepage.do

47. Application and Documentation Table of Contents • Include page numbers for each component of the application in the Table of Contents. • Begin pagination immediately following the Table of Contents

48. Application Process – Required Forms Complete forms for Template Tab A • SF 424 – Application for Federal Assistance • SF 424C - Budget Info/Construction • Or SF 424D- Assurances - Construction • 1940-20 Environmental Questionnaire

49. Application Process – Required Forms Complete forms for Template Tab B • AD 1049 – Certification Regarding a Drug-Free workplace Requirements • AD 1048 - Certification Regarding Debarment, Suspension and Other Responsibility Matters – Lower tier • Exhibit A-1 of 1940-Q Cert. for Contracts, Grant and Loans (If grant app is $100,000 or more)

50. Application Process – Required FormsTAB B Continued • SF-LLL - Disclosure of Lobbying Activities • AD 1047 – Certification Regarding Debarment, Suspension and Other Responsibility Matters – Primary Covered Transactions • RD 400-1 – Equal Opportunity Agreement • RD 400-4 – Assurance Agreement • Intergovernmental comments (if applicable)