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REAP Renewable Energy for America Program REAP (Rural Energy for America Program) USDA RURAL DEVELOPMENT Do you know existing businesses or farmers in your area that could benefit from making Energy Efficiency Improvements? Are you aware of the benefits and opportunities Renewable Energy Systems such as wind, solar, biomass, and geothermal can provide to local businesses and farmers? Energy Programs USDA RURAL DEVELOPMENT The Food, Conservation, and Energy Act of 2008 Renewable Energy for America Program (Section 9007) Biorefinery Assistance (Section 9003) Repowering Assistance (Section 9004) Bioenergy Program for Advanced Fuels (Section 9005) Biomass Research and Development (Section 9008) Rural Energy Self-Sufficiency Initiative (Section 9009) What is the Section 9007 Program? • Designed to assist farmers, ranchers and rural small businesses with energy projects What is the Section 9007 Program? • Provides Grants & Loan Guarantees for: Renewable Energy Projects and Energy Efficiency Projects What is the Section 9007 Program? • USDA has funded approximately 2,012 loan & grant projects totaling $143,658,988 since the Program began in FY 2003. • For FY 2008, 1,157 applications were filed, requesting $1,205,714,554 and 764 were funded totaling $49,805,805. Who is Eligible? • Agricultural producers and rural small businesses can apply What Projects are Eligible? • Any renewable energy and energy efficiency project as defined in the law. What Projects are Eligible? • Renewable Energy – Energy derived from: – wind – solar – renewable biomass – ocean (including tidal, wave, current & thermal) – geothermal – hydroelectric source – hydrogen derived from renewable biomass or water using one of the above energy sources What Projects are Eligible? • Renewable Biomass – any organic material that is available on a renewable or recurring basis. Includes: Renewable plant material, including • • • • Feed grains Other agricultural commodities Other plants and trees Algae Waste material, including • • • • Crop residue Other vegetative waste material (including wood waste & wood residues) Animal waste and byproducts (including fats, oils, greases, & manure) Food waste and yard waste Materials, pre-commercial thinnings, or invasive species from National Forest System land & public lands (See Section 9001 for further definition) What Projects are Eligible? • Energy efficiency projects typically involve installing or upgrading equipment to significantly reduce energy (BTU) use. What Projects are Eligible? • Pre-commercial or commercially available and replicable technology Grant requests $200,000 or less, commercially available technology only • Projects must be technically feasible • Must have sufficient revenues to provide for O&M What Projects are Eligible? • Energy Efficiency Projects – Energy Audit Required showing BTU Savings • Renewable Energy Projects – Business Level Feasibility Study Required If TPC $200,000+ Business Level Feasibility Study An acceptable feasibility study, completed by an independent third party, should include, but not be limited to, a discussion of the project’s: 1. 2. 3. 4. 5. Economic feasibility Market feasibility Technical feasibility Financial feasibility Management feasibility Grant Program Grant Request cannot exceed 25% of project costs Applicant must demonstrate financial need Maximum grant request $500,000 for Renewable Energy $250,000 for Energy Efficiency Minimum grant request: $2,500 for Renewable Energy $1,500 for Energy Efficiency Guaranteed Loan Program Guaranteed Loan cannot exceed 75% of total eligible project costs. Minimum Guaranteed Loan = $5,000 Maximum Guaranteed Loan = $25MM Simplified Application process for loans $600,000 or less Guaranteed Loan Program Maximum Percentage of Guarantee $600,000 or less = 85% $600,001 to $5 million = 80% $5 million to $10 million = 70% $10 million to $25 million = 60% Interest Rate set by Lender Guarantee fee = 1% of guaranteed portion, with annual renewal fee of ¼ of 1% of the guaranteed portion. No Prepayment Penalty Combination Grant/Guaranteed Loan Combination requests cannot exceed 75% of total eligible project cost Combo requests due on the 15th and last day of the month and are funded bi-weekly until funds exhausted. 100% of eligible combo’s funded to date Guaranteed Loan Program • Guaranteed Loan Terms Real Estate • 30 years maximum Machinery and Equipment • 20 years or the useful life Working Capital • 7 years maximum • Term W.C. Only, No Lines of Credit FY 2009 Total Allocation • • • • • Energy Audit & REDA 4% $ 2,400,000 Feasibility Study 10% $ 6,000,000 Grants of $20,000 or less 20% $12,000,000 State Allocations 46.2% $27,717,600 National Office REAP 19.8% $11,882,400 Reserve TOTAL: $60,000,000 Nevada State Allocation • Grant –only • Loan-only $338,850 $1,584,677 Pooling of Funds • State Allocations must be used by close of business approximately the end of May. • Priority of pooled funds – – – – Grants of $20,000 or less Loan only Loan and grant combos Grant only Dates to Remember • NOSA (Notice of Solicitation of Applications) Issued: Anticipated by end of February • Closing Date: Unknown • received at: USDA RD State Office 1390 S. Curry St. Carson City, NV 89703 • Pooling Date: 5/28/2010 Contact Information This program assists local businesses and farmers in obtaining grants & loans for renewable energy & energy efficiency projects. www.rurdev.usda.gov USDA RURAL DEVELOPMENT Mark Williams-Business Programs Specialist Ph. 775-887-1222 Ext 116 [email protected] Herb Shedd-Business Programs Director Ph. 775-887-1222 Ext. 119 [email protected]