Transcript Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 USDA Funding for Renewable Energy and Energy Efficiency Improvements April 20, 2007 Rowan University Glassboro, New Jersey Victoria.

Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
USDA Funding for
Renewable Energy and
Energy Efficiency Improvements
April 20, 2007
Rowan University
Glassboro, New Jersey
Victoria Fekete, NJ Energy Coordinator
for USDA Rural Development
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Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
What is the Section 9006 Program?
• 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.
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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 annual revenues.
• 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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Applicant must have financial feasibility - the ability to achieve
the projected income and cash flow. (Your accounting system,
the availability of short term credit if your business is seasonal and
the availability of raw materials/supplies will also be assessed.)
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. http://eligibility.sc.egov.usda.gov/eligibility/
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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 project-specific 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
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
How Do I Apply?
• Deadline for 2007 Grant Applications – May 18, 2007
• Full details concerning the application process can be found in the
Notice of Funds Availability (NOFA) which was published in the
Federal Register on March 22, 2007.
• A copy of the NOFA can be obtained at:
http://www.rurdev.usda.gov/rd/nofas/index.html
• More information and assistance available from 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: 1-866-705-5711
– Catalog of Federal Assistance Number: 10.775
– 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 by the National Renewable Energy Lab
– National Environmental Policy Act (NEPA) Review
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Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
Technical Requirements
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Different technical requirements are based on type of technology
and size of project:
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Biomass, Bioenergy
Anaerobic Digester
Geothermal, electric generation
Geothermal, direct use
Hydrogen
Solar, small (10 kW or smaller)
Solar, large (larger than 10 kW)
Wind, small (100 kW or smaller)
Wind, large (larger than 100 kW)
Energy Efficiency
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
Technical Requirements
• 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
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
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 dated March 22, 2007
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Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
Assistance Available
• Assistance in the completion of the application
package can be obtained from:
Rutgers EcoComplex
David R. Specca, Director
1200 Florence-Columbus Road
Bordentown, NJ 08505-4200
609-499-3600 phone
609-499-3647 fax
[email protected]
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Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
Lessons Learned
• Preparing Your Application :
– Carefully read all the terms of the NOFA and RD Instruction
4280-B. Include everything that they require.
– 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
Schedule of Award Process
FY 2007
Program
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Notice of Funding Availability (NOFA)
Published in the Federal Register
March 22, 2007
NOFA for renewable energy and energy efficiency grants
is issued. USDA begins accepting applications.
May 18, 2007
Deadline for applications.
August 2, 2007
USDA announces awards .
September 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 grant only application
no later than MAY 18, 2007
• 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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