Section 9007 Rural Energy for America Program Grants

Section 9007 Rural Energy for America Program Grants for Farmers, Ranchers, and Rural Small Businesses

Purpose • Purchase renewable energy systems (A process that produces energy) • Improvements to a facility or process that reduce energy consumption

What is Renewable Energy?

What is Renewable Energy?

What is Renewable Energy?

What is Renewable Energy?

What is Renewable Energy? • By definition – Renewable energy is energy derived from wind, solar, biomass or geothermal sources; or hydrogen derived from biomass or water using wind, solar, biomass, or geothermal energy sources.

What are Energy Efficiency Improvements?

What are Energy Efficiency Improvements?

What are Energy Efficiency Improvements?

What are Energy Efficiency Improvements?

What Farmers and Ranchers Are Eligible? • Must directly engage in production of agricultural products. • At least 50% of gross income must be from their agriculture business.

What projects are eligible? • The project must be for the purchase of a renewable energy system or energy efficiency improvement. • Pre-commercial or commercially available and replicable technology. • Technically feasible • Located in a rural area • Applicant must be owner of the system • Adequate revenues for O&M

Renewable Energy Projects Description Energy Efficiency Improvements Projects A process that Improvements to a facility PRODUCES energy from or process that REDUCE a renewable energy source. energy consumption. Minimum grant (no more $ than 25% of total eligible project costs) 2, 500 $ 1, 500 Maximum grant (no more $ than 25% of total eligible project costs) 500, 000 $ 250, 000

What are Eligible Costs? • Post application purchase & installation of equipment, except agricultural tillage equipment and vehicles. • Post application construction or project improvements, except residential. • Energy audits or assessments • Permit fees • Professional service fees, except for application preparation. • • Feasibility studies Business plans Retrofitting Construction of a new facility – same purpose, same size, provides more energy savings than improving an existing facility

When are FY 2009 Grant applications due? • The 2009 NOSA was published on May 26, 2009 • Applications must be received at the USDA-RD State Office no later than 4: 30 pm (local time) on July 31, 2009 • $60 million is available. • Grants. gov for on-line application submission

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 cashflows to sustain it financially over the long term without grant assistance.

Energy Audit • A report conducted by a Certified Energy Manager or Professional Engineer that focuses on potential capital-intensive projects and involves detailed gathering of field data and engineering analysis. The report will provide detailed project costs and savings information with a high level of confidence sufficient for major capital investment decisions. It will estimate costs, expected energy savings from the subject improvements, and dollars saved per year. The report will estimate weighted-average payback period in years.

What does an Application Contain? • Forms • Table of Contents • Project Summary – Title, Applicant Eligibility, Project Eligibility, Operation Eligibility, Financial Information, Matching Funds, Self-Evaluation, Technical Report

Forms Needed • • • SF 424 Application for Federal Assistance SF 424 C – Budget Information SF 424 D – Assurances 1940 -20 – Environmental Information Certifications – Drug Free Workplace, Debarment, Lobbying, Equal Opportunity, Assurance, etc. – These are all signature pages only

Applicant Eligibility • Must be an agricultural producer or rural small business • Must be a citizen of the U. S. or legally admitted permanent resident • Business must be at least 51% owned US citizen or legally admitted permanent resident • Have no outstanding judgment in US Court or has not been debarred from receiving federal assistance • Have a demonstrated financial need

Project Eligibility • The project must be for the purchase of a renewable energy system or to make energy efficiency improvements • The project must be pre-commercially or commercially available and replicable technology • Must have technical merit • Must be located in a rural area • Applicant must own, control, and operate the project • Must maintain ownership and control while funds are financed by Federal loans • Must have sufficient revenues to be successful

Matching Funds • Submit a spreadsheet identifying sources of matching funds, amounts, and status of matching funds. Attachments should include any applications, correspondence or other written communication between the applicant and the matching fund source to document that those funds are available.

Scoring • Quantity of Energy Replaced, Produced or Saved (5, 10, 15 points) • Environmental Benefits (10 points) • Commercially Available (5, 10 points) • Technical Merit (up to 35 points) • Readiness (5, 10, 15 points) • Small Ag Producer/Very Small Business (5, 10 points) • Simplified Application (5 points) • Previous Grantee (5 points if not a previous recipient) • Return on Investment (2, 4, 10 points)

Components of the Technical Report 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Qualifications of the project team Agreements and Permits Resource Assessment Design and Engineering Project Development Schedule Financial Feasibility Equipment Procurement Equipment Installation Operation and Maintenance Decommissioning

Simplified Applications • Simplified grant applications (under $200, 000 in total project costs) • Less stringent requirements for: – Technical Report, Financial Information, Project Engineers, Feasibility Study

Feasibility Study • For each application for a renewable energy system, with total project costs of over $200, 000, a business-level feasibility study by an independent, qualified consultant will be required. An acceptable feasibility study must at least include an evaluation of economic, market, technical, financial and management feasibility.

Professional Engineer • For renewable energy projects with total eligible project costs greater than $400, 000 and for energy efficiency projects with eligible costs greater than $200, 000, the design review, installation monitoring, testing prior to commercial operation and project completion certification will require the services of a licensed professional engineer (PE) or team of licensed PE’s.

Information to be received by Utah RD prior to 4: 30 pm, 7/31/2009 Submit 2 copies of the • grant application package, including • score sheet, and • technical report to USDA, Rural Development 125 South State St, Rm. 4311 Salt Lake City, UT 84138

Guaranteed RE/EE Loans • Loan cannot exceed 75% of project costs • Maximum loan is $25 million • Percentage of Guarantee – – 85% for loans under $600, 000 80% for loans between $600, 000 & $5 million 70% for loans between $5 million & $10 million 60% for loans over $10 million • Guarantee Fee – 1% • Annual Renewal Fee – maximum is. 5% but is determined each year

Loan Terms • Real Estate – 30 years maximum • Machinery and Equipment – 20 years or the useful life • Working Capital – 7 years maximum

Guaranteed Loans • Eligible Project Costs – – – Post application purchase of machinery and equipment Post application construction or improvements Energy audits or assessments Permit and license fees Professional fees Feasibility studies Business plans Retrofitting Construction of a new facility Working Capital Land Acquisition

Completion of SF 424

Insert Date submitted X Applicant’s Legal Name DUNS Number needed for all except individuals te e l p m Co Needed X L. Individual: M. Profit Corp. : O. Non-Profit Rural Business – Cooperative Service

DUNS Number New regulations taking affect Oct. 1, 2003 mandate that a DUNS number be provided on all federal grant and cooperative agreement applications. The DUNS number will offer a way for the federal government to better match information across all agencies. The DUNS number is a unique nine-character identification number provided by the commercial company Dun & Bradstreet (D&B). You may call D&B at 1 -866 -705 -5711 to register and obtain a DUNS number. The process to request a DUNS number takes about 10 minutes and is free of charge.

DUNS Number Use the following instructions to navigate through the voice prompts: • Enter "3" to register your business and obtain a DUNS number • Enter "2" for assistance • Enter "1" to create a new listing • Enter "1" for Federal Registration. At this point, a service representative will answer, and suggest that you buy the Credit Builder Service. This is not necessary to do business with the Government. If you want to do business with other vendors outside the government, this is an optional service that allows you to do business using a line of credit.

DUNS Number • Individuals who would personally receive a grant from the Federal government apart from any business or non-profit organization they may operate are exempt from this requirement.

Section 9007 Renewable Energy & Energy Efficiency 10 -775 Insert short description of project. Local city, county, region or state Insert anticipated dates Where applicant is located Amount of grant Applicants Matching funds others Contributions from te ple m o C Sign Where project is located

State Environmental Review Requirements (Executive Order 12372) • Prior approval is needed for the environmental assessment on projects involving construction, renovation, or rehabilitation that will have federal, state or local funds or for those projects that will have a state-wide impact. • Intergovernmental Review by USDA, Rural Development and by the appropriate Association of Governments is required for all projects, including those that involve technical assistance, equipment purchases, or other miscellaneous issues i. e. refinancing, inventory, or working capital. • Contact your local USDA, Rural Development Office for more details.

10000 2000 40000 52000 13000

signature owner date

Farm Address Type or Print Name signature date

Type or Print Name signature date

date name

signature

Name Address Name Signature date

signature owner date

Signature

Name County X x x date x x signature owner

X signature

x x x x See attached map

signature

Name $$$$

12 March 08 signature

NA – I am a sole proprietor

Items to Complete an Application • Narrative (Tab D) – Project Summary – Applicant Eligibility – Project Eligibility – Operation Description • Financial Information – Copy of most recent Tax Return

Items to Complete an Application • Matching Funds Documentation (Tab F) – Letter from lender – Copy of Bank Statement

Items to Complete an Application • Self Evaluation Score (Tab G) – Energy Saving • 20% up to but not including 30%, award 5 points. • 30% up to but not including 35%, award 10 points • 35% or greater, award 15 points. Additional points. • If the project has total eligible project costs of $50, 000 or less AND opts to obtain a professional energy audit, award an additional 5 points.

Items to Complete an Application • Self Evaluation Score – Environmental Benefit • Letter from local or state authority indicating that your project meets a directive to increase energy efficiency – 10 points – Commercially Available Technology • 5 points • 10 points if you have a 5 year warranty

Items to Complete an Application • Self Evaluation Score – Technical Merit • Based on the Technical Report – 35 Points – Readiness • Based on your matching funds being available • 15 points if 100% of matching funds are documented – Small Agricultural Producer • If total sales for previous year were less than $600, 000 – 5 points • If total sales for previous year were less than $200, 000 – 10 points

Items to Complete an Application • Self Evaluation Score – Simplified Application • Total project costs under $200, 000 – 5 points – Previous Grantee • If no previous grant has been received – 5 points – Return on Investment • Based on your Energy Audit – Less than 4 years – 10 points – 4 to 7 years – 4 points – 8 to 11 years – 2 points

Items to Complete an Application • Energy Audit (Tab H) – Most Recent 12 month history of energy usage – Bid on Motor and Installation – Present Motor Specifications – New Motor Specifications – Warranty Information – Audit completed by Certified Energy Manager or Professional Engineer – Professional Engineer Certification

Items to Complete an Application • Contractor Certification Form (AD-1048) must be completed and signed by the primary potential contractor/company submitting above bid and attached to the bid.

Items to Complete an Application • Technical Report (Tab I) – Project Team • Can include your County Agent, Energy Auditor, Irrigation Company Representative • Need very short biography to show their background assistance with your project – Agreements and Permits • Describe the necessary agreements and permits required for the project and the schedule for securing those agreements and permits.

Items to Complete an Application • Technical Report – Energy or Resource Assessment • Describe the quality and availability of a suitable renewable resource, or an assessment of expected energy savings for the proposed system. – Design and Engineering • Describe the design, engineering, and testing needed for the proposed project. The description supports that the system will be designed, engineered, tested so as to meet its intended purpose, ensure public safety, and comply with applicable laws, regulations, agreements, permits, codes, and standards.

Items to Complete an Application • Technical Report – Project Development Schedule • Describe the development method including the key project development activities and the proposed schedule for each activity. The description identifies each significant task, its beginning and end, and its relationship to the time needed to initiate and carry the project through to successful completion. The description addresses grantee or borrower project development cash flow requirements. – Project Economic Assessment • Describe the financial performance of the proposed project, including the calculation of simple payback. The description addresses project costs and revenues, such as applicable investment and production incentives and other information to allow the assessment of the project’s cost effectiveness.

Items to Complete an Application • Technical Report – Equipment Procurement • Describe the availability of the equipment required by the system. The description supports that the required equipment is available, and can be procured and delivered within the proposed project development schedule. – Equipment Installation • Describe the plan for site development and system installation.

Items to Complete an Application • Technical Report – Operations and Maintenance • Describe the operations and maintenance requirements of the system necessary for the system to operate as designed over the design life. – Dismantling and disposal of project components • Describe the plan for dismantling and disposing of project components at the end of their useful lives and associated wastes.

Items to Complete an Application • • • Map to Property Aerial Map Matching Funds Documentation Copy of Deed Most recent Tax Return (1040 and Sch. F) Farming Description 12 month of Energy Usage Bids for Equipment and Installation Warranty Information Project Team Qualifications Energy Audit

The End Roger Koon USDA, Rural Development 125 South State Street, Rm 4311 Salt Lake City, UT 84138 801. 524. 4301 roger. koon@ut. usda. gov