Transcript Slide 1

Agriculture Biofuel Summit
October 19-20, 2010
USDA Rural Development
Business Cooperative Programs
John Guthmiller, Program Director
406-585-2540
[email protected]
USDA
Rural Development
Matthew Jones
State Director
Business
Coop Programs
(BCP)
John Guthmiller
Rural Housing
Programs
(RHS)
Deborah Chorlton
Community
Programs
(CP)
Steve Troendle
Business Cooperative Programs
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Business & Industry (B&I)Guaranteed Loan
Rural Business Enterprise Grant (RBEG)
Rural Business Opportunity Grant (RBOG)
Intermediary Relending Program (IRP)
Rural Cooperative Development Grant (RCDG)
Rural Economic Development
Loan & Grant (REDLG)
Value Added Producer Grant (VAPG)
Renewable Energy for America Program (REAP)Grants & Guarantees
Renewable Energy Audit (EA) Grants
Energy Feasibility Study (FS) Grants
Rural Microentrepreneur Assistance Program (RMAP)
Energy Programs
• Biorefinery Assistance Program (Section 9003)
– Provides guarantees on loans up to $250 million to
construct commercial scale biorefineries.
– 2010 Application deadline is August 4, 2010
• Repowering Assistance Program (Section 9004)
– Provides payments to biorefineries to replace fossil fuel
energy sources with renewable energy sources
– 2010 Application deadline is July 20, 2010
Energy Programs (cont.)
• Bioenergy Program for Advanced Biofuels (Section 9005)
– Provides payments to advanced biofuel producers (biomass
conversion facilities) for producing advanced biofuels.
– 2010 app deadline is July 6, 2010 for transportation fuels only
• Similar to FSA’s Biomass Crop Assistance Program (BCAP)
(Section 9011)
– Provides payments for collecting, harvesting, storing, transporting
biomass to eligible advanced biomass conversion facilities.
– http://www.fsa.usda.gov/FSA/webapp?area=home&subject=cops
&topic=bcap
Energy Programs (cont.)
• Rural Energy Self-Sufficiency Initiative (Section
9009)
– Provides grants for the purpose of enabling
eligible rural communities to substantially increase
their energy self sufficiency.
– Rule to be published by Spring 2010.
Rural Energy for America Program
(REAP) aka Section 9007
• Grants
• Guaranteed Loans
• Project development:
►Renewable Energy Systems
►Energy Efficiency Improvements
• Energy Audit Grants
• Feasibility Study Grants
Renewable Energy System Technology
Bioenergy (Biomass)
Anaerobic Digestor
Geothermal – Electric Generation
Geothermal – Direct Use
 Hydrogen
Solar
Wind
Hydropower
Energy Efficiency Improvements
• Defined:
Improvements to a facility, building, or
process that reduces energy
consumption, or reduces energy
consumed per square foot.
REAP Eligible Applicants
• Agricultural Producer
– Directly engaged in agricultural production
– 50% or greater of gross revenue from agriculture
– Located in rural area less than 50,000 population
• Small Business
– SBA size standards
– Located in rural area less than 50,000 population
– Must operate independent of direct government
control
REAP Restrictions
• Residences cannot benefit from project
– Separate meters
• Nonprofit corporations are not eligible
• Applicant must be the owner
• Maximum grant/loan combo cannot exceed
75% of eligible project cost
• Revenues sufficient for operation,
management maintenance, and debt service.
REAP Guarantee
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Commercial Loan
Minimum loan: $5,000
Maximum loan: $25 MM or 75% of project
Rates & Terms: Negotiated
Guarantee is 85% to $650,000 / 80%to $5 MM
/ 70% to $10 MM / 60% to $25 MM
• 1% Fee
REAP Grant Funding
25% of eligible project cost
Minimum / Maximum
• Renewable Energy
System:
$2,500 to $500,000
0r 25%
• Energy Efficiency
Improvement:
$1,500 to $250,000
or 25%
2010 REAP Funding
• State Allocation
– Grants < $20,000 – $218,301
– Grants > $20,000 - $173,178
– Loan Guarantees - $1,858,870
• National Office Reserve (priority order)
– Loan Guarantee only
– Loan Guarantee/Grant Combo
– Grant only
Montana 2010 REAP Usage
• 4 small grants totaling $25,780
– $192,521 returned to the National Office
• 4 large grants totaling $577,587
– $404,409 received from the National Office
• 2 loan Guarantees totaling $10,200
Agricultural Biofuel Summit
Important Websites:
• www.rurdev.usda.gov/mt
• www.farmenergy.org
• www.rurdev.usda.gov/ia
Questions?