usdaprograms

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 RICHARD CARRIG Rural Business and Cooperative Programs Director Rural Energy Coordinator USDA-Rural Development (801) 524-4328 Richard.Carrig@ut.usda.gov

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 WHO IS USDA-RURAL DEVELOPMENT?? Federal Agency administered under USDA Goal is to help increase economic opportunities and quality of life for rural Americans Administer over 40 programs Business and economic development Municipal financing Housing assistance

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 WHO IS USDA-RURAL DEVELOPMENT?? Rural Development programs are delivered at National, State, Regional, and Local levels Each State has a USDA-Rural Development state office responsible for program delivery for that state The state office for Utah is located on the 4th floor of the Wallace F. Bennett Federal Building in Salt Lake City

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 WHO IS USDA-RURAL DEVELOPMENT?? USDA-Rural Development programs are also delivered at 7 field USDA service center locations: Tremonton Vernal Provo Richfield Cedar City Monticello Manti

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 Renewable Energy / Energy Efficiency Program

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 OUTLINE What is the Section 9006 Program Who is eligible What Projects are eligible What Projects are not eligible Changes from last year How to Apply Evaluation of Grant Applications

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 OUTLINE Environmental Assessment Reviews Project Awards Important Websites Important Dates Contacts for USDA-Rural Development

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 What is the section 9006 Program USDA program authorized by section 9006 of the Farm Security and Rural Investment Act of 2002 (Farm Bill) Grant and Guaranteed loan program to assist farmers, ranchers, and rural small businesses to purchase qualifying renewable energy systems, and/or to make energy efficiency improvements Renewable Energy defined as: “ Energy derived from a wind, solar, biomass, or geothermal source; or hydrogen derived from biomass or water using wind, solar, biomass or geothermal energy source”

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 What is the section 9006 Program Renewable Energy System defined as: “ A process that produces energy from a renewable energy source” Energy Efficiency Improvements defined as: “Improvements to a facility or process that reduce energy consumption”

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 What is the section 9006 Program Created as a 5 year program. Congress has funded the program at $22.8 million per year for the first three years Only the grant component enacted in FY 2003-04 Guaranteed loan component will be enacted in FY 2005, but guaranteed requests will be solicited separately from grant requests In 2003 and 2004, a total of $44 million in grants were awarded to 281 projects in 33 states

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 What is the section 9006 Program In 2004, USDA-Rural Development received about 250 applications nationwide 172 of the 250 applications received were considered eligible, and competed for funding 167 of the 172 eligible applications were funded!!

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 What is the section 9006 Program Grant requests are being solicited now! Notice of Funds Availability (NOFA) published in the Federal Register on March 28, 2005 90 day application window Grant Applications must be postmarked no later than June 27, 2005 to be considered for this year’s funding cycle $22.8 million available nationwide Expect to solicit guaranteed requests by mid-summer Pending publication of final regulation

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 Who is eligible Agricultural producers Agricultural Producer: An individual or entity directly engaged in the production of agricultural products (including farming or ranching) that gets 50% or more of their gross income from operations.

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 Who is eligible Rural small business Small Business: A private entity including a sole proprietorship, partnership, corporation, cooperative (including most Rural Electric Cooperatives), and certain other electric utilities. Most non-profit organizations are not eligible

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 Who is eligible Other applicant eligibility criteria: Rural small businesses must meet SBA definition of a small business (SBA size standards) www.sba.gov/size/indextableofsize.html Includes all parent, subsidiaries, holding, and affiliated interests Ag. producers do not have to meet small business size standards!!

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 Who is eligible Other applicant eligibility criteria: Rural small businesses must be headquartered in a rural area Ag. producers do not have to be headquartered in a rural area Project must be located in a rural area Rural defined as: Any area, other than a city or town with a population over 50,000 (2000 census), or located contiguous (adjacent) to a city or town with a population over 50,000 (2000 census) Almost all of Utah will qualify as rural!!

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 Who is eligible Other applicant eligibility criteria: Since most of Utah qualifies as rural, it is easier to list the communities that do not qualify as rural. They are: Over 50,000 population (considered urban), and not eligible areas for this program: Ogden, Layton, Salt Lake City, Sandy, West Valley, West Jordan, Taylorsville, Orem and Provo AND...

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 Who is eligible Contiguous to (adjacent) to the listed urban areas, and not eligible areas for this program: North Ogden, South Ogden, Harrisville, Washington Terrace, Riverdale, East Layton, Clearfield, Syracuse, Kaysville, Centerville, Woods Cross, Bountiful, North Salt Lake City, South Salt Lake City, Magna, Kearns, Taylorsville, Holladay, Sugar House, Murray, Midvale, Jordan, West Jordan, South Jordan, Draper, Pleasant Grove, Lindon, Lakeview, Irontown, and Springville ALL OTHER COMMUNITIES ARE ELIGIBLE!!!

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 Who is eligible Applicant must be the owner/operator of the project Applicants must demonstrate financial need (grants only) Unable to finance project without grant assistance Applicants must meet U.S. citizenship requirements Individuals must be U.S. citizens or legal permanent residents Entities (corporations, LLC’s, partnerships, etc.) must be primarily owned by U.S. citizens or legal permanent residents Applicants must have sufficient revenues and ability to provide for operation and maintenance of the system Applicants cannot be delinquent on any Federal debt

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 What projects are eligible Purchase and installation a qualifying renewable energy system, and/or energy efficiency improvements to an existing operation Qualifying renewable energy systems include wind, solar, biomass (including anaerobic digesters), geothermal or hydrogen systems Must be commercially or pre-commercially available Must be replicable Must be technically feasible

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 What projects are eligible Commercially available: Systems that have a proven operating history and an established design, installation, equipment, and service industry Pre-Commercial technology: Technology that has emerged through the research and development process and has technical and economic potential for application in commercial energy markets but is not yet commercially available

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 What projects are eligible Biomass- any organic material that is available on a renewable or recurring basis, including: agricultural crops trees grown for energy production wood waste and wood residues (small diameter timber) plants (including aquatic plants and grasses) residues, fibers (straw) animal wastes (manure) fats, oils and greases

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 What projects are eligible Maximum renewable energy system grant award is $500,000 Maximum Energy Efficiency grant award is $250,000 Minimum grant award is $2,500 Minimum $10,000 project size (eligible costs) to qualify for grant assistance Grant requests cannot exceed 25% of eligible project costs Applicant must provide matching funds of at least 75% of eligible project costs from other non-Federal sources Up to 10% of applicant’s matching funds can be third party ‘in-kind’ contributions

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 What projects are eligible Likely Guaranteed loan provisions.... Lender financed commercial loan. Loan guaranteed by USDA in event of default/loss to the lender Guaranteed loans cannot exceed 50% of eligible project costs Maximum guaranteed loan not exceed $10,000,000 Minimum guaranteed loan of $2,500 Eligible costs to include working capital and land acquisition 1% upfront guarantee fee, plus an annual 0.5 percent renewal fee

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 What projects are eligible Likely Guaranteed loan provisions.... Guarantee coverage: 85% for loans through $600,000 80% for loans above $600,000 through $5,000,000 70% for loans above $5,000,000 through $10,000,000 Loan terms: 7 years for working capital 15 years (or useful life, whichever is less) for equipment 20 years for combined loans on equipment and real estate 30 years for real estate

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 What projects are eligible Eligible project costs include: Post application purchase and installation of qualifying renewable energy systems Post application installation of energy efficiency improvements (as identified in an energy audit) Energy audits or assessments Permit fees Professional service fees (except for application preparation) Feasibility studies Business plans

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 What projects are eligible Eligible Energy Efficiency project costs also include: Energy Efficiency improvements in a new facility ONLY if: ‘New’ facility will be used for the same purpose as the ‘old’ facility ‘New’ facility will be approximately the same size as the ‘old’ facility ‘New’ Facility will be economically more energy efficient than the ‘old’ facility

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 What projects are NOT eligible Residential purposes Hydroelectric dam projects (except energy efficiency improvements) Biomass projects utilizing paper that is commonly recycled Biomass projects utilizing unsegregated solid waste Most Research and Development (R&D) projects Energy Efficiency improvements for new construction of facilities NOT replacing an existing facility Projects not owned by an Ag. producer or rural small business Municipal projects, school districts, etc.

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 Changes from last year Slight changes in definitions: Changes to the definition of renewable energy Include energy derived from water using a biomass energy source Changes to the definition of a small business No additional limits beyond SBA ‘size standard’ definition Enables more rural electric cooperatives to apply Excludes most non-profit organizations Added definition of Very Small Business (fewer than 15 employees and less than $1,000,000 in sales)

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 Changes from last year Changes to evaluation criteria (scoring): Includes score based on technical merit Preference to small projects and applicants Requires technical reviews to also include financial feasibility on energy efficiency requests

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 Changes from last year Modified ceiling threshold requirements for Professional Engineers, energy audits and feasibility studies Professional Engineer review required for all renewable energy grant requests above $50,000 (was $100,000 last year), and all energy efficiency projects above $50,000 Professional full energy audit required for energy efficiency projects above $50,000 (last year, all energy efficiency requests had to have a professional full energy audit) Professional independent feasibility studies required for all renewable energy system grant requests above $50,000 (last year, all renewable energy system requests had to have a professional feasibility study)

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply Full application requirements and all required forms can be obtained at: www.rurdev.usda.gov/rbs/farmbill/ Very important to read and understand the 2005 Notice of Funds Availability (NOFA) published in the Federal Register on 3/28/05. All application requirements are discussed in this NOFA. All application forms can also be downloaded from the farmbill website Separate applications required for renewable energy system requests and energy efficiency improvement projects

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply Grant Applications must be received in Salt Lake City by C.O.B. on Friday, June 24, 2005, or postmarked no later than June 26, 2005 to be considered for this year’s funding cycle Mailing address: USDA-Rural Development Wallace F. Bennett Federal Building 125 South State Street, Room 4311 Salt Lake City, Utah 84138

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply Data Universal Numbering System (DUNS) number Effective 10/1/03, most applicants soliciting Federal grant assistance must have a registered DUNS number to apply To obtain a DUNS number, call the government dedicated DUNS number self-request line at: 1-866-705-5711 Separate applications required for renewable energy system requests and energy efficiency improvement projects

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply-Grant Application Requirements Grant applications will consist of: -Detailed table of contents -Project Summary (not to exceed one page) Title of project Detailed description of project Project purpose and need Project goals and tasks Project timetables, and who will complete tasks Clearly state whether the application is a renewable energy system request or a energy efficiency improvement request.

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply-Grant Application Requirements -Eligibility discussion Discuss how applicant and project meets eligibility requirements Ag. producer / small business U.S. citizenship Not delinquent on a Federal debt Rural location Financial Need (grant requests only)

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply-Grant Application Requirements Eligible RE/EE purpose Commercial / Pre-Commercial technology Technology feasible / replicable Owner / operator of facility Sufficient revenues for O&M

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply-Grant Application Requirements -Ag. producer/small business information Description of ownership (names, structure, % of ownership, etc.) Description of operation (management, resumes, etc.) Financial statements (total operations) current balance sheets and income statements (within 90 days) 3 years historical balance sheets and income statements pro forma startup balance sheet 3 years projected balance sheets, cashflow statements, and income statements (including list of assumptions)

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply-Grant Application Requirements Financial statements (continued) small business financial statements must meet GAAP small businesses must provide sufficient information for USDA to determine total annual income and cost of goods (total operations) small businesses must provide sufficient information for USDA to determine total annual income and cost of goods (total operations) Ag. producers must provide sufficient information for USDA to determine the gross market value of their ag, products sold for the prior calendar year

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply-Grant Application Requirements Production information for renewable energy projects (RE requests only) Must document that technology used is commercially or pre-commercially available and replicable Discuss availability of materials, labor and equipment for the RE project Business market information (RE requests only) Demand (past, present, future) and customer base Supply (past, present, future) and competition Market niche Copy of a bank statement or a copy of the confirmed funding commitment on all matching funds

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply-Grant Application Requirements - Required Forms, Certifications, and Agreements Form SF 424.2 “Application for Federal Assistance-Construction” DUNS number goes in item 5 Catalog of Federal Domestic Assistance Number (item 10) is 10.755 All applications are subject to review by the State Executive Order 12373 process (item 16) Form SF424C “Budget Information-Construction Programs” Include total project costs itemize by purpose, and by eligible (allowable) and ineligible (costs not allowable for participation)

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply-Grant Application Requirements Form SF 424D”Assurances-Construction Programs” Basically a read/sign form Assuring compliance to 19 requirements AD-1049 “Certification Regarding Drug-Free Workplace Requirements” Basically a read/sign form Policies and procedures to ensure a drug-free workplace

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply-Grant Application Requirements AD-1048 “Certification Regarding Debarment , Suspension, Ineligibility and Voluntary Exclusion-Lower Tiered Covered Transactions” Basically a read/sign form A ‘lower tier participant’ is basically any project contractor or vendor doing business with the applicant

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply-Grant Application Requirements AD-1047 “Certification Regarding Debarment , Suspension, and Other Responsibility Matters-Primary Covered Transactions” Basically a read/sign form This one is signed by the applicant only. A ‘primary participant’ is the applicant Exhibit A-1 (Certification for Contracts, Grants and Loans) Only required if grant request exceeds $100,000 Basically a read/sign form Certifying that no Federal funds will be used for lobbying or other activities

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply-Grant Application Requirements Exhibit A-2 (Statement of Loan Guarantees) Only required if loan guarantee request exceeds $150,000 Basically a read/sign form Certifying that no guaranteed loan funds will be used for lobbying or other activities Form SF-LLL “Disclosure of Lobbying Activities” Only required if applicant will use Non-Federal funds for lobbying activities

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply-Grant Application Requirements Form RD 400-1 “Equal Opportunity Agreement” Only required if Federal Assistance exceeds $10,000 Basically a read/sign form Applicant agrees to include ‘Equal Opportunity’ language into contract documents Form RD 400-4 “Assurance Agreement” Only required if Federal Assistance exceeds $10,000 Basically a read/sign form Applicant agrees to comply with the civil rights act of 1964 (non discrimination requirements)

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply-Grant Application Requirements Form RD 1940-20 “Request For Environmental Information” Basically a checklist of 32 environmental resources that may be affected by the project If the project involves interconnection to an electric utility: Letter of intent to purchase power, or a power purchase agreement, or Letter of intent for a interconnection agreement, or Interconnection agreement

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply-Grant Application Requirements Intergovernmental consultation comments in accordance with Executive Order 12372 Basically, this references an agreement between the Federal and State Governments stating that the Federal government won’t fund projects that the State government is opposed to. In Utah, the Association of Government (AOG) serving the project area must be notified of the project, and given an opportunity to provide comments on the project (60 days) BRAG, Five County AOG, Mountainland AOG, Six County AOG, Southeastern Utah AOG, UBAG, Wasatch Front Regional Council

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply-Grant Application Requirements Certification, indicating whether or not there is a known relationship or association with a USDA employee Spouse, other relative, close friend, business partner, etc.

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply-Grant Application Requirements - Feasibility study (renewable energy system requests only) Only required if grant request exceeds $50,000 Project specific, prepared by a qualified independent consultant Must address the following: Market analysis Financial analysis Economic analysis Technical analysis Management analysis Must also include an opinion and recommendation by the consultant

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply-Grant Application Requirements - Technical requirements reports All projects, regardless of size, must be supported with a technical report Technical reports must demonstrate that the project design, procurement, installation, startup, operation, and maintenance of the project will operate and perform as specified over its design life in a reliable and cost effective manner USDA has worked with technology experts to develop guidance on technical requirements for each technology to help applicants respond to the technical requirements of the 2005 NOFA

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply-Grant Application Requirements Technical requirements are available at www.rurdev.usda.gov/rbs/farmbill/ under “Tools and Resources” Specific technical report requirements are based on type of technology used, and the size of the project, but reports will follow the same standard outline addressing: Qualifications of the project team Agreements and permits Resource assessment (Energy assessment for energy efficiency projects) Design and engineering (PE required if grant request exceeds $50,000) Project development schedule

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply-Grant Application Requirements Specific technical report outline (cont): Financial feasibility Equipment procurement Equipment installation Operations and maintenance Decommissioning

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply-Grant Application Requirements Requirements are categorized into 10 technology areas as follows: Biomass, bio-energy: Projects that produce fuel, thermal energy, or electric power from a biomass source, including wood, agricultural residue excluding animal wastes, or other energy crops considered biomass or bioenergy projects Biomass; anaerobic digesters: Projects that use animal waste and other organic substrates to produce thermal or electrical energy via anaerobic digestion.

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply-Grant Application Requirements Geothermal, electric generation: Projects that produce electric power from the thermal potential of a geothermal source Geothermal, direct use: Projects that directly use thermal energy from a geothermal source Hydrogen: Projects that produce hydrogen, or use mechanical or electric power or thermal energy utilizing hydrogen as an energy transport medium.

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply-Grant Application Requirements Solar, small: Small solar electric projects and small solar thermal projects. The rated power generation of a small solar electric project is 10kW or less. Small solar thermal projects are systems with a rated storage volume of 240 gallons or less. Solar, large: Large solar electric projects and large solar thermal projects. The rated power generation of a large solar electric project is larger than 10kW. Large solar thermal projects are systems with a rated storage volume of greater than 240 gallons

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply-Grant Application Requirements Wind, small: Wind energy systems for which the rated power of the wind turbine is 100kW or less and generator hub height of 120 feet or less Wind, large: Wind energy systems for which the rated power of the wind turbine is greater than 100kW or the generator hub height exceeds 120 feet Energy efficiency improvements: Projects that involve improvements to a facility, building or process resulting in reduced energy consumption or reduced amount of energy required per unit of production. Projects in excess of $50,000 require a full energy audit.

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply-Grant Application Requirements Energy efficiency improvements: Projects that involve improvements to a facility, building or process resulting in reduced energy consumption or reduced amount of energy required per unit of production. Projects in excess of $50,000 require a full energy audit System engineering for projects in excess of $50,000 must be completed by Professional Engineer

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 How to apply-Grant Application Requirements Full Energy Audit: Written report by an independent, qualified entity that documents current energy usage, recommended potential improvements and their costs, energy savings from these improvements, dollars saved per year, and simple payback period in years (total costs divided by annual dollars of energy savings). The methodology of the energy audit must meet professional and industry standards. Audit must be completed as outlined in the technical requirements report guidelines for energy efficiency projects

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 Evaluation of Grant Applications State Offices will review all applications and determine eligibility and completeness (except technical reviews) NREL will conduct technical reviews Complete applications that are eligible, and pass technical reviews requirements will be considered for funding Nationwide funding competition Projects funded based on project evaluation scores Projects will be scored USDA, and 2 independent reviews

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 Evaluation of Grant Applications Evaluation criteria (total maximum score is 110 points): 1. Quantity of energy replaced (one of three categories) a. Energy replacement (max. 15 points) b. Energy savings (max. 15 points) c. Energy generation (max. 10 points) 2. Environmental benefits (one of two categories) a. Improve health and safety standards (max. 5 points) b. Environmental goals (max. 5 points)

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 Evaluation of Grant Applications 3. Commercial availability (max. 10 points) 4. Technical merit score (max. 35 points) 5. Readiness (max. 15 points) amount of matched funds in place to start project 6. Small ag. producer / very small business (max 15 points) 7. Previous grantees and borrowers (max. 10 points) If applicant has not received a previous REEP award 8. Return on investment (max. 5 points)

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 Environmental assessment reviews A environmental assessment on the project must be completed before USDA can commit funding!! National Environmental Policy Act (NEPA) review impact on threatened or endangered species impact on wildlife Historical/Cultural/Archeological impact assessment State Historical Preservation Office (SHPO) review Tribal Historical Preservation Office (THPO) review

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 Environmental assessment reviews Environmental Justice assessment Executive order 12898, Civil rights impact analysis Land use issues Prime farmlands Wetlands concerns flood zone issues Zoning open spaces Wild/scenic river impact assessment

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 Environmental assessment reviews Wilderness area / proposed wilderness area impact assessment Natural Landmark impact assessment Hazardous waste (TSQ, phase I, II) Transaction Screen Questionaire (TSQ) Phase I or Phase II site assessments Public acceptance Air quality issues Scenic quality impact assessment Aquifer impact assessment

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 Environmental assessment reviews Intergovernmental consultation Executive Order 12372, Association of Government (AOG) project concurrence Environmental assessment process overview 1940-G ‘Environmental Program’ www.rurdev.usda.gov/regs/regs/pdf/1940g.pdf Environmental process resources available from the farmbill website Tools and Resources link

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 Environmental assessment reviews Form RD 1940-20 ‘Request For Environmental Information’ Completed by applicant Consultation process Applicant provides a comprehensive project description to appropriate entities (i.e. AOG, F&W, SHPO, THPO, etc.), and solicits project comments Comments submitted to USDA

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 Environmental assessment reviews Levels of Environmental Assessments (EA’s) Categorical Exclusion (most smaller sized projects that don’t involve new construction) Class I assessment (most small projects) Class II assessment (most large sized projects) Environmental Impact Statement (EIS) (very large size projects) Finding of No Significant Impact (FONSI) USDA must be able to determine that the project will have no unacceptable adverse environmental impact USDA must be able to issue an acceptable FONSI before approving funds to the project

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 Project awards All project awards will likely take place by the middle of September Selected grant applicants will be sent a Letter of Conditions, which they must accept before the project can be approved Environmental assessment must be completed before USDA can issue a Letter of Conditions Selected guaranteed loan applicants will be sent a Conditional Commitment for Guarantee which the lender and borrower must accept before the project can be approved Environmental assessment must be completed before USDA can issue a Conditional Commitment for Guarantee All projects must be approved by September 30, 2005

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 Important websites Farmbill website: rurdev.usda.gov/rbs/farmbill SBA sizestandards website: www.sba.gov/size/indextableofsize.html USDA environmental regulation: www.rurdev.usda.gov/regs/regs/pdf/1940g.pdf

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 Important dates March 28, 2005: Section 9006 Notice of Funds Availability (NOFA) published in the Federal Register June 27, 2005: Applications must be postmarked no later than June 27, 2005 to be considered for this year’s funding cycle August 31, 2005: Guaranteed loan funding conversion date September 15, 2005: Approximate date for final project awards September 30, 2005: All projects must be approved by this date

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 Contacts for USDA-Rural Development Richard Carrig Rural Business and Cooperative Programs Director Rural Energy Coordinator Phone: (801) 524-4328 email: Richard.Carrig@ut.usda.gov Roger Koon Rural Business and Cooperative Programs Specialist Phone (801) 524-4301 email: Roger.Koon@ut.usda.gov

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 Vern Anderson Rural Business and Cooperative Programs Specialist Phone: (435) 789-2100, ext. 19 email: Vern.Anderson@ut.usda.gov LuAnn Wilson Rural Business and Cooperative Programs Technician Phone (801) 524-4322 email: LuAnn.Wilson@ut.usda.gov

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006FY 2005: 

Renewable Energy and Energy Efficiency Program: Farm Bill Section 9006 FY 2005 QUESTIONS?????