Transcript Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 USDA Funding Assistance for Rural Renewable Energy and Energy Efficiency Improvement Program December 1, 2006 Rowan.

Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
USDA Funding Assistance for
Rural Renewable Energy and Energy
Efficiency Improvement Program
December 1, 2006
Rowan University
Glassboro, New Jersey
Presenter: Kathy R. Purul, Loan Specialist,
USDA Rural Development
1
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?
•
•
•
•
2
–
–
–
–
–
Filling out the Application
Application Requirements
Technical Requirements
Environmental Requirements
Evaluation Criteria
Lessons Learned
More Information
Schedule of Award Process
Application
Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
What is the Section 9006 Program?
• Created as a U.S. Department of
Agriculture program
• Program designed to assist farmers,
ranchers and rural small businesses
with energy projects
• In FY 2006 USDA awarded
$17,510,887 in RE/EE grants to 375
recipients throughout the nation.
3
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 or 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, and a
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 RD Instruction 4280-B for full definitions.
4
Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
Who is Eligible? (cont’d)
• Must use systems 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.
5
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 business and the adequacy
of raw materials & supplies will be
assessed.)
• Must have technical feasibility.
6
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.
7
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
8
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 qualified
independent consultant
• Energy Efficiency
• Minimum grant request: $1,500
• Maximum grant request: $250,000
• If total project costs are over $50,000, NOFA
requires an energy audit
• The applicant must be the owner of the project &
control the operation and maintenance of the
proposed project.
9
Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
ELIGIBLE PROJECT COSTS
•
•
•
•
•
•
•
•
10
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
• Written by an independent qualified
entity,
• Document current energy usage,
• Recommend improvements & their costs,
• Project savings, and
• Show the average payback period in
years.
11
Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
INELIGIBLE PROJECT COSTS
•
•
•
•
•
•
•
•
12
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.
13
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:
–
–
–
–
–
–
–
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.
14
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 post a copy of 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
15
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 application requires a number of Standard
Forms which are 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 : 10.755
– Is application subject to review by State Executive
Order 12372 Process? No. New Jersey does not
require intergovernmental review
16
Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
Technical Requirements
• A Technical Report is required for both RE &
EE projects and are based on type of
technology & size of project
• The following standard project development
processes must be addressed:
–
–
–
–
–
–
–
–
–
–
17
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
18
•
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 Improvements
•
Guidance on the Technical Requirements for
each technology can be found as Appendix A
and B of RD Instruction 4280-B
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.
19
Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
Environmental Requirements
• If an environmental review cannot be completed in
sufficient time for grant funds to be obligated by
dated stated in the NOFA, grant funds will not be
awarded.
• If a project requires public comment and input as
part of the NEPA review, the applicant will need to
complete that effort as soon as possible.
• If you anticipate any potential environmental or
public concerns with your project, discuss these
with your USDA state rural energy coordinator early
in the development process.
20
Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
Application Evaluation Criteria
• All projects scored on:
21
– Quantity of energy replaced, produced or saved –
greater the quantity, higher the score
– Environmental Benefits – if project is needed to meet
environmental regulation, it receives 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 % match that the applicant
provides for the grant, the higher the score
– Management – if the project is monitored & managed
by a third-party qualified operator, it receives extra
points
– Small Agricultural Producer – if the applicant qualifies
as a small producer, it receives extra points
– Simplified application/low cost project – if project costs
under $200,00 or less, it receives extra points
– No Previous Grants within last 2 years – project
receives extra points.
Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
Lessons Learned
• Developing Your Project
–
–
–
–
22
Know your energy resource
Build a strong project team
Start as early as possible
Take advantage of other available state & 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 your USDA State Office right
away.
23
Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
More Information
• NJ USDA website:
http://www.rurdev.usda.gov/nj/reg.html
• Additional valuable website for info, fillable
forms and reference material is:
http://www.rurdev.usda.gov/ia/rbcs_REEE_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.
24
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, per
type
• Technical report must be submitted in 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 future NOFA
25
Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
Schedule of Award Process
FY 2007
Program
26
Look for Notice of Funds 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 original application plus 1 copy
no later than (date 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
27
Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
28
Renewable Energy and Energy Efficiency Program:
Farm Bill Section 9006
29