Transcript USDA Rural Development Renewable Energy Systems & Energy Efficiency Improvement Program February 28, 2006 Bordentown, NJ USDA Rural Development - New Jersey Renewable Energy Grant Program.

USDA Rural Development
Renewable Energy Systems & Energy
Efficiency Improvement Program
February 28, 2006
Bordentown, NJ
USDA Rural Development - New Jersey
Renewable Energy Grant Program
Renewable Energy Program
• Notice of Funding Availability (NOFA) –
February 13, 2006
• $11 million nationwide in competitive
grant funds for FY2006
• $176 million in loan guarantees
• Purchase renewable energy systems
• Make energy improvements
USDA Rural Development - New Jersey
Renewable Energy Grant Program
Applicant Eligibility
• Ag producers – 50% or greater of gross income
derived from agricultural production; must be
located in an eligible rural area
• Rural Small Businesses – must meet U.S. Small
Business Administration definition; must be
located in an eligible rural area
• Must use systems commercially available (have
a proven operating history and an established
design, installation, equipment and service
industry)
• Applicant must demonstrate that it is unable to
finance the project from its own sources or other
sources without grant assistance
USDA Rural Development - New Jersey
Renewable Energy Grant Program
Applicant Eligibility
Must have financial feasibility (the ability to
achieve the projected income and cash
flow. The cost accounting system, the
availability of short term credit for
seasonal business and the adequacy of
raw materials & supplies will be assessed.)
• Must have technical feasibility
USDA Rural Development - New Jersey
Renewable Energy Grant Program
Applicant Eligibility
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Individual applicants must be citizens of the
U.S. or reside in the U.S. after being legally
admitted for permanent residence
Entities must be at least 51 percent owned
directly or indirectly by individuals who are
either citizens of the U.S. or reside in the U.S.
after being legally admitted for permanent
residence
For small businesses, the business’
headquarters must be in a rural area and the
project funded also must be in a rural area
USDA Rural Development - New Jersey
Renewable Energy Grant Program
Project Eligibility
• Must be for renewable energy systems
(“Renewable”) or
• Efficiency improvements (“Efficiency”)
• Project must be located in a rural area.
• Not for research and development
• Applicant must own and control the
proposed project
USDA Rural Development - New Jersey
Renewable Energy Grant Program
Rural Area
• Rural Area Definition - Any area other
than a city or town with a population of
greater than 50,000 and the urbanized area
contiguous and adjacent to such city or
town.
• Go to http://maps.ers.usdagov/loanlookup/ for
assistance in determining rural area eligibility. This
office will make the “official” determination.
USDA Rural Development - New Jersey
Renewable Energy Grant Program
Maximum Grant
• USDA Grant will not exceed 25% of eligible
project costs
• “Renewable” grants – not less than $2,500 but no
more than $500,000
• “Efficiency” grants – not less than $1,500 but no
more than $250,000
• Applicant must provide 75% balance of funds
for project (leverage requirement)
• In-kind contributions & other Federal grants do
not count towards leverage requirement
USDA Rural Development - New Jersey
Renewable Energy Grant Program
Eligible Project Costs
• Purchase & installation of equipment
• Construction & Improvements
• Energy Audits
• Permit fees
• Professional service fees
• Feasibility studies
• Business Plans
• Retrofitting
USDA Rural Development - New Jersey
Renewable Energy Grant Program
Energy Audit
• Energy Audit – written by an independent
qualified entity, documents current energy
usage, recommends improvements and
their costs, projects savings and shows the
average payback period in years
USDA Rural Development - New Jersey
Renewable Energy Grant Program
Ineligible Project Costs
• Land Acquisition
• Capital leases
• Working capital
• Residential improvements
• Agricultural tillage equipment
• Vehicles
• Grant application preparation
• Waste Collection
USDA Rural Development - New Jersey
Renewable Energy Grant Program
Ineligible Project Costs
• Funding of political or lobbying activities
• O & M, repairs, or fuel costs
• Production, collection, & transportation of
energy inputs
• Construction of a new facility, unless it is a
similar replacement with net energy savings
• Costs incurred prior to application being
submitted to RD except for predevelopment
costs
USDA Rural Development - New Jersey
Renewable Energy Grant Program
Evaluation Criteria
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Quantity of energy replaced, produced or saved
Environmental Benefits
Commercial Availability
Technical Merit
Readiness
Small Ag Producer/Very Small Business
Low Cost Projects ($200,000 or less)
Previous Grantees
Return on Investment
USDA Rural Development - New Jersey
Renewable Energy Grant Program
Technical Merit Points
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Qualifications of the Project Team
Agreements and Permits
Energy or Resource Assessment
Design and Engineering
Project Development Schedule
Project Economic Assessment
Equipment Procurement
Equipment Installation
Operation and Maintenance
Dismantling and Disposal of Project Components
USDA Rural Development - New Jersey
Renewable Energy Grant Program
Applications
• You must submit a separate application for
“Renewable” and “Efficiency” projects
• Only one application per applicant for each
• The technical report is to be submitted in an
original and one copy
• The maximum amount of grant assistance to any
one entity can not exceed $750,000
• Application content per RD Instruction 4280-B
• Also see our website at:
http://www.rurdev.usda.gov/nj/rbs.html
USDA Rural Development - New Jersey
Renewable Energy Grant Program
Applications
Submit a complete application no later than
close of business, May 12, 2006 to:
USDA Rural Development
Attn: Business & Community Programs
5th Floor North, Suite 500
8000 Midlantic Drive
Mt. Laurel, NJ 08054
TEL 856-787-7750
FAX 856-787-7757
E-mail: [email protected]
USDA Rural Development - New Jersey
Renewable Energy Grant Program
USDA Rural Development - New Jersey
Renewable Energy Grant Program