Funding Digester Projects thru USDA - Lavin
-
Upload
massrecycle- -
Category
Documents
-
view
330 -
download
0
description
Transcript of Funding Digester Projects thru USDA - Lavin
Rural Development
Rural Business and CooperativeDevelopment Service (RBS)
Jim Lavin, Area Specialist
Farm Bill Section 9007 – 7CFR 4280-B Rural Energy for America
Program (REAP)
Grants and Guaranteed Loans for
Farmers, Ranchers, and
Rural Small Businesses
What is Section 9007 ?• Created 2002 Farm Bill and amended by section 9001 of the 2008
Farm Bill.• Expands and renames the program formerly called the Renewable
Energy Systems and Energy Efficiency Improvements Program.• Hydroelectric Source Technologies will be added as eligible.• Feasibility Studies have been added as an eligible purpose. • USDA / RD has published 4280-B program Regulation.• Designed to help farmers & small businesses with energy needs &
projects.• To date, the program has provided $4,016,946 in grants and loans
to 36 applicants in CT/MA/RI jurisdiction.
Provides for grants and/or loan guarantees for renewable energy systems and energy efficiency improvements for agricultural producers and rural small businesses.
Program demand for Section 9006 exceeded 3 times available funds
Funding increased to $255 million over four years Additional $100 million authorized in 5-year discretionary spending
New Component
– Guaranteed loan limit increased to $25 MM.– Federal share including loan increased to
75%. Maximum grant remains at 25%– Grants to complete energy audits and
renewable energy development assistance– Eligible applicants
• governmental• educational• electrical cooperative & public power entities • other similar organizations
Purpose
• Purchase renewable energy systems
(A process that produces energy)
• Make improvements that reduce energy consumption
Basic Technical Eligibility
Proposal must be for an eligible technologyRenewable Energy• Wind• Solar• Geothermal• Biomass• Hydrogen • Hydroelectric
Other Requirements
To qualify for funding, projects must pass:
• Technical Review (USDA, DOE, NREL)
• National Environmental Policy Act Review
Biomass Projects
Utilize any organic material that is available on a renewableor recurring basis. Include: - agricultural crops - trees grown for energy production - wood waste and wood residues - plants - residues - fibers - animal wastes, and - fats, oils and greases
Biomass Projects(continued)
Bioenergy Projects(examples):
- Waste-wood fired furnaces
- Pellet(fuel) production
- Biodiesel plants
- Biorefineries
- Ethanol plants
- Co-firing for electric/heat generation
Past AD ProjectsGrant Loan kWh/yr
FY # Amt. Amt. Generated
2003 33 7,518,530 0 138,934,992
2004 37 9,508,946 9,830,000 133,553,644
2005 14 5,018,017 0 51,424,869
2006 11 2,915,457 1,065,850 34,970,391
2007 15 5,468,815 3,259,027 34,787,904
2008 10 10,165,952 4,981,440 55,423,731
Totals 121 40,595,717 19,136,317 449,095,531
Energy Efficiency Projects
Improvements to a facility, building, or process thatreduces energy consumption, or reduces energyconsumed per square foot. - Compressed Air Systems - Building Envelope - Greenhouse Thermal Blankets - Lighting - Motors - Pumps - HVAC
Projects that are NOT Eligible
- Residential improvements
- Energy efficiency improvements related to
new construction
- Agricultural tillage equipment
- Vehicles
Who Is Eligible?
• Rural Small Business• Agricultural producers• At least 50% of gross income
must be from their agriculture business.
• Must be either citizens or legally admitted.
• Must not be debarred or have federal delinquency.
• Applicant must be site owner & responsible for project O&M
Demonstrated Financial Need
The demonstration by an applicant that the applicant is unable to finance the project from its own and commercially available resources without grant assistance, or that the project proposed by the applicant cannot achieve the income and cash flows to sustain it financially over the long term without grant assistance.
Self-Certification for Small Projects.
Additional Documentation for Large Projects.
Applicant Eligibility Cont.
Project must be located in rural area. To
make sure your project is in an eligible area
visit our website at:
http://www.rurdev.usda.gov/rbs/ and click
on ERS – Rural Area Determinations
What are Eligible Costs?
• Post application purchase & installation of equipment, except agricultural tillage equipment, used equipment and vehicles.
• Post application construction or project improvements, except residential.
• Energy audits or assessments.• Permit and license fees
Eligible Costs
• Professional service fees, except for application preparation.
• Feasibility studies and technical reports• Business plans• Retrofitting• Construction of a new facility – same purpose, same
size, provides more energy savings than improving an existing facility
• Working Capital and Land Acquisition - Eligible costs for guaranteed loans only.
• Capital Improvements to an existing Renewable Energy System – Eligible costs for guaranteed loans only.
Some Projects Funded in MA/CT/RI Jurisdiction
• Dove and Boar Farm; $29,397 renewable energy grant. Purchase and installation of a 15.6 KW Grid Connected Photovoltaic system at applicant’s farm in Hampton, CT
• S & D Farm; $49,751 renewable energy grant. Purchase and installation of a 50 KW Wind Turbine at applicant’s farm in Lisbon, CT.
• Smith Country Cheese: $48,000 renewable energy systems grant. Purchase and installation of a 20 KW Grid Connected Photovoltaic system at applicant’s farm in Winchendon, MA.
What Small Businesses Eligible?
• Proposed project in a rural area.• Demonstrated financial need (grants only).• Meets the definition of a small business
according to SBA (http://sba.gov/size/index.html)» Use the “NAICS search” option
• A private entity including a sole proprietorship, partnership, corporation, a cooperative, and a governmental electric utility.
• Nonprofit organizations and public entities are not eligible.
What Projects are Eligible
• Project must be for the purchase of a renewable energy system or energy efficiency project.
• Pre-commercial or commercially available and replicable technology.
• Technically feasible.• Located in a rural area.• Applicant must be owner of the system and
control site for the term of the loan.• Adequate revenues for O&M.
What Is Not Eligible?
•Residential•Agricultural Tillage Equipment•Vehicles•Applicant In-Kind Contributions
Maximum Grant Amount
Total Project Costs ________Minus Ineligible Costs ______= Total Eligible Costs ______ x 25%Equal Maximum Grant of ______
Total Eligible Costs minus Grant =Matching Funds Required to be Covered by the Applicant
Grants cannot exceed $500,000 for renewable energy projects and $250,000 for energy efficiency projects.
Percentage of Guarantee
• 85% Loans of $600,000 or less.
• 80% Loans greater than $600,000 but less than or equal to $5,000,000.
• 70% Loans greater than $5,000,000.
Rates and Terms
Interest rate negotiated between lender and borrower.
Term: Real estate 30 years Equipment 20 years or
useful life.
Working Capital 7 years
Fees
• Guarantee Fee* 1% maximum• Renewable Fee* .5% maximum
(.25% for FY 2008) on balance @ 12/31 X guaranteed portion
* Fees will be published annually
Tools and Resources
• Regulation:
http://www.rurdev.usda.gov/regs/regs_toc.html
• Outreach Materials, Technical and Environmental Guidance:
http://www.rurdev.usda.gov/rbs/farmbill/
tools.html
Funding Cycle
• Annual NOSA/NOFA.• Anticipate early 10
issuance.• Nationwide
competition for funds.• Early and final
deadlines. Last year 4/15 and 6/16.
Questions?
Contact:Jim Lavin
Area SpecialistUSDA Rural Development
52 Boyden RdHolden, MA 01520508-829-4477 x126