Transcript Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 USDA Funding for Renewable Energy and Energy Efficiency Improvements February 23, 2007 Rowan University Glassboro, New Jersey Presenter:

Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
USDA Funding for
Renewable Energy and
Energy Efficiency Improvements
February 23, 2007
Rowan University
Glassboro, New Jersey
Presenter: Victoria Fekete, Loan Specialist
USDA Rural Development
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Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
Outline
• What is the Section 9006
Program?
• Who is Eligible?
• What Projects are Eligible?
• How to Apply?
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Filling out the Application
Application Requirements
Technical Requirements
Environmental Requirements
Evaluation Criteria
Lessons Learned
More Information
Schedule of Award Process
Applications
Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
What is the Section 9006 Program?
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• Created as a U.S.D.A. program
• Program designed to assist farmers,
ranchers and rural small businesses
with energy projects
• In FY 2006, this program provided
$11 million nationwide in grant funds
for renewable energy systems and
energy efficiency improvements as
well as $176 million in loan
guarantees.
Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
Who is Eligible?
• Agricultural producers and rural small businesses
can apply
• Definitions:*
– Rural – Any area other than a city of town with
population over 50,000. Cannot be in urbanized area
adjacent to such a city or town.
– Agricultural Producer -- An individual or entity directly
engaged in the production of agricultural products
(including farming or ranching) that gets 50% + of their
gross income from the operations
– Small Business – A private entity including a sole
proprietorship, partnership, corporation or cooperative
• Must have 500 or fewer employees and $20 million or less
in total annual receipts.
• Excludes entities formed solely for a charitable purpose.
• Must meet SBA definition of small business
* Summarized definitions. See Full RD Instruction 4280-B for full definitions.
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Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
Who is Eligible? (cont’d)
• Must use systems that are
commercially available (have a
proven operating history & an
established design, installation,
equipment & service industry)
• Applicant must demonstrate that it is
unable to finance the project from its
own sources or other sources without
grant assistance.
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Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
Who is Eligible? (cont’d)
• Applicant 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 businesses and the
adequacy of raw materials and
supplies will also be assessed.)
• Must have technical feasibility.
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Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
Who is Eligible? (cont’d)
• Other requirements for eligible applicants:
– If individuals, must be U.S. citizens or
legal permanent residents of the U.S.
– If an entity, must be at least 51 percent
owned by individuals who are either U.S.
citizens or legal permanent residents of
the U.S.
– If a rural small business, the business
headquarters must be in a rural area &
the project funded also must be in a rural
area.
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Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
What Projects are Eligible?
• Any renewable energy and energy
efficiency project as defined in the
law.
• Requirements for eligible projects:
• Must be located in a rural area.
• Must be for a pre-commercial or commercially
available and replicable technology.
• Must be technically feasible.
• Must have sufficient revenues to provide for
operation and maintenance
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Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
What Projects are Eligible? (cont’d)
• Grants request must not exceed 25% of project
costs
• Renewable Energy:
• Minimum grant request: $2,500
• Maximum grant request: $500,000
• If request is over $200,000, NOFA requires a projectspecific feasibility study prepared by a qualifies
independent consultant
• Energy Efficiency
• Minimum grant request: $1,500
• Maximum grant request: $250,000
• If total project costs are over $50,000, an energy audit is
required (if under $50,000, energy assessment acceptable)
• The applicant must be the owner of the project and
control the operation and maintenance of the proposed
project.
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Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
ELIGIBLE PROJECT COSTS
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Purchase/Installation of Equipment
Construction & Improvements
Energy Audits
Permit Fees
Professional Service Fees
Feasibility Studies
Business Plans
Retrofitting
Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
ENERGY AUDIT
 Required for ALL energy efficiency
improvement projects over $50,000,
• written by an independent qualified
entity,
• documents current energy usage,
• recommends improvements & their
costs,
• projects savings, and
• shows the average payback period in
years.
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Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
INELIGIBLE PROJECT COSTS
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Land acquisition
Capital leases
Working capital
Residential improvements
Agricultural tillage equipment
Vehicles
Grant application preparation
Waste collection
Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
INELIGIBLE PROJECT COSTS
 Funding 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.
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Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
Farm Bill Definitions
• Renewable Energy – energy derived from:
– wind, solar, biomass, or geothermal source, or
– hydrogen derived from biomass or water using one of the
above energy sources
• Biomass – any organic material that is available on a
renewable or recurring basis. Includes:
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agricultural crops
trees grown for energy production
wood waste and wood residues
plants (including aquatic plants and grasses)
residues, fibers
animal wastes and other waste materials, and
fats, oils and greases (including those that are recycled).
• The term “biomass” does not include paper that is
commonly recycled or unsegregated solid waste.
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Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
How Do I Apply?
• Deadline for 2007 Applications – To Be Announced
• Full details concerning the application process will
only be available once Congress has issued a
Notice of Funds Availability (NOFA) which is
published in the Federal Register.
• USDA also will provide the NOFA at:
http://www.rurdev.usda.gov/rd/nofas/index.html
• More information and assistance available from
your our office at:
USDA Rural Development
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5th Floor North, Suite 500, 8000 Midlantic Drive
Mt. Laurel, NJ 08054
(856-787-7750)
Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
Filling out the Application
• The NOFA requires a number of Standard Forms
– All necessary forms available for download at
www.rurdev.usda.gov/rbs/farmbill/
• SF-424: Application for Federal Assistance
– Organizational DUNS
• To obtain your DUNS Number, call the government
dedicated DUNS Number self-request line at: 1-866-7055711
– Catalog of Federal Assistance Number
• Not applicable this year to this program
– Is application subject to review by State Executive
Order 12372 Process?
• New Jersey does not require a review
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Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
Application Requirements
• Must meet eligibility requirements for:
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Applicant
Project
Financial Need
Replicability
Complete application
• Technical Report required for both RE & EE
projects
• To qualify for funding, the application will
also have to pass:
– Technical Review
– National Environmental Policy Act (NEPA)
Review
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Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
Technical Requirements
• Different technical requirements are based on
type of technology & size of project
• All renewable energy requirements follow the
same standard project development process:
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Qualifications of project team
Agreements and permits
Resource assessment
Design and engineering
Project development schedule
Financial feasibility
Equipment procurement
Equipment installation
Operations and maintenance
Decommissioning
Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
Technical Requirements
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Different Technology Requirements for:
1. Biomass, Bioenergy
2. Anaerobic Digester
3. Geothermal, electric generation
4. Geothermal, direct use
5. Hydrogen
6. Solar, small (10 kW or smaller)
7. Solar, large (larger than 10 kW)
8. Wind, small (100 kW or smaller)
9. Wind, large (larger than 100 kW)
10.Energy Efficiency
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USDA has worked with technology experts to develop
Guidance on the Technical Requirements for each
technology.
– Designed to help applicants better understand
how to respond to the technical requirements.
– Available at www.rurdev.usda.gov/rbs/farmbill/
Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
Environmental Requirements
• All projects receiving federal grants are subject to
the provisions of the National Environmental Policy
Act (NEPA).
• The USDA will perform the NEPA review
• Per RD Instruction 4280-B, applicants must:
– Complete Form RD 1940-20, “Request for Environmental
Information.”
– Provide all information necessary for the Agency to
complete a NEPA review and analysis. USDA may
contact applicant after preliminary review if more
information is needed.
– Be responsible for any applicable analyses and studies
required as part of completing the NEPA analysis (i.e.
Archaeological studies, Biological Assessments, etc.)
– Strive to achieve positive community support, select
good sites, and mitigate environmental impacts
resulting from their proposals.
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Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
Environmental Requirements
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• If an environmental review cannot be completed in
sufficient time for grant funds to be obligated by
September 30, 2007, grant funds will not be
awarded.
– One potential exception: funds may be obligated
even though the U.S. Fish and Wildlife and
Historic Preservation portions of the NEPA review
are not completed.
– Funds will not be disbursed until the full NEPA
review is satisfactorily completed.
• If a project requires public comment and input as
part of the NEPA review, the applicant will need to
complete that effort prior to September 30 to
receive an award.
• If you anticipate any potential environmental or
public concerns with your project, discuss these
with your USDA state rural energy coordinator as
early in the development process as possible.
Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
Evaluation Criteria
• All projects scored on:
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– Quantity of energy replaced, produced or saved –
greater the quantity higher the score
– Environmental Benefits – if project is needed to meet
environmental regulation, it gets extra points
– Commercial Availability – extra points if available
– Technical Merit Score - this is scored by NREL
– Cost Effectiveness – the shorter the payback, the
higher the score
– Matching Funds – the higher percentage match that the
applicant provides for the grant, the higher the score
– Management – if the project is monitored and managed
by a third-party qualified operator, it gets extra points
– Small Agricultural Producer – if the applicant qualifies
as a small producer, the project gets extra points.
– Simplified application/low cost project – if project costs
under $200,000, it gets extra points
– No Previous Grants within last 2 years – project gets
extra points.
Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
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
Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
Lessons Learned
• Developing Your Project
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Know your energy resource
Build a strong project team
Start as early as possible
Take advantage of other available state and local
incentives
– Tap into the resources available in your area
• USDA state office, non-profit organizations,
state energy and agriculture agencies
– Recognize this is a long-term project and requires
a long-term commitment
– Remember: Evaluation criteria are important in
getting an award. Think about tailoring your
project to the NOFA.
Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
Lessons Learned (cont’d)
• Preparing Your Application :
– Carefully read all the terms of the NOFA and
include everything that it requires.
– Make use of available resources, especially the
USDA state rural energy coordinator.
– Only include more information if it will really add
value and help bolster your project. Longer is not
better.
– Organize your application in line with the NOFA
and include a table of contents, page numbers.
– If you don’t understand something on a form or in
the NOFA, contact the USDA State Office.
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Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
More Information
• Web site for the USDA Farm Bill Section 9006:
www.rurdev.usda.gov/rbs/farmbill/
– Overview of Program
– Standard Government Application Forms
– Technology-specific Guidance for Technical
Requirements
– Links to other resources and incentives for these
technologies
• Additional website for invaluable assistance, fillable
forms and reference material is:
www.rurdev.usda.gov/ia/rbcs_RE-EE_grants.html
• NOTE: This is a site maintained by USDA Rural
Development in Iowa. All inquiries, correspondence
and applications must be addressed to USDA Rural
Development in NEW JERSEY.
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Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
MORE INFORMATION (cont’d)
• Submit separate applications for
“Renewable” and “Efficiency” projects
• Only 1 application - per applicant for each
• Technical report must be an original + 1
copy
• Maximum amount of grant assistance to
any one entity cannot exceed $750,000
• Application content see RD Instruction
4280-B and NOFA to be forthcoming
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Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
Schedule of Award Process
FY 2007
Program
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Look for Notice of Funding
Availability (NOFA)
Published in the Federal Register
TBA
NOFA for renewable energy and
energy efficiency grants is issued.
USDA begins accepting applications.
TBA
Deadline for applications.
TBA
USDA announces awards .
Sept 30, 2007
End of Fiscal Year
Deadline for obligating all funds to
awardees
Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
APPLICATIONS
• Submit a complete application no later than
(to be announced in future NOFA)
• Mail to:
USDA Rural Development
Attn: Business & Community Programs
5th Floor North, Suite 500
8000 Midlantic Drive
Mount Laurel, NJ 08054
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Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
1-856-787-7750 NJ RD State Office
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Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
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