Area Offices Bozeman / Helena Tom Atkins (406) 585-2530 Criag Hildreth & Clay Landry Billings Gloria Hawkins (406) 657-6297 Matt Holben Great Falls Vacant (406) 727-7580 Lea McGiboney Kalispell Lad Barney (406) 756-2005 Eric Hanson Missoula Kim Maines (406) 829-3395 Dan Johnson & Heather Handeland
Rural Energy for America Program(REAP) Section 9007 Grants Guaranteed Loans Energy Audit Feasibility Study Project development: ► Renewable Energy Systems ► Energy Efficiency Improvements
Renewable Energy System Defined: System that either produces or produces and delivers usable energy from a renewable energy system, or is a flexible fuel pump.
Renewable Energy System Technology Bioenergy Anaerobic Digester Geothermal Hydrogen Hydropower Solar Wind Flex Fuel Pump
Energy Efficiency Improvements Defined: Improvements to a facility, building, or process that reduces: * energy consumption, or * energy consumed per square foot.
Energy Efficiency Improvement Limited to improvements identified in an energy audit or energy assessment Similar in capacity If greater capacity, total eligible cost of the new equipment will be prorated based on the capacity of the existing equipment
Grant Funding Limitation 25% of eligible project cost Renewable Energy System: Energy Efficiency Improvement: Minimum / Maximum $2,500 to $500,000 $1,500 to $250,000
Application Limitation Only One type of funding application for each project can be submitted per Federal Fiscal Year ● Grant-only ● Guarantee loan-only ● Guarantee loan / Grant combination
Matching Funds New Rules removed restriction on third-party in-kind matching contribution. Statute requires applicant to provide 75% of eligible project costs. ► Other Federal Funds can be used
Applicant Eligibility Agricultural Producers Directly engaged in agricultural production 50% or greater of gross revenue Small Business ► SBA size standards by NAICS ► Private entity, sole proprietor, partnership, corporation, cooperative, electric utility ► Tribal business enterprises formed as Sec. 17 Corporations ► Must operate independent of direct government control
Ineligible If: Outstanding judgment in Federal Court or delinquent on federal debt Debarred from receiving Federal assistance
Project Eligibility Purchase of a renewable energy system or to make energy efficiency improvements. Pre-commercial technology or commercially available, and replicable technology. Technical merit. Applicant must be the owner. Sites must be controlled by the agricultural producer or small business. Revenues sufficient for operation, management maintenance, and debt service. Place of business must be located in a state of the U.S.
Project Eligibility - Continued Small Business must be l ocated in rural area Agricultural Producer ► Project may be located in rural or non rural area ► Projects must be for facilities directly related to agricultural production ► Integral components must be co-located with agricultural production
Example Greenhouse in nonrual area with adjacent retail stand proposes to install install solar panels to power both the greenhouse and retail stand. ► Both facilities are eligible for REAP
Eligible Project Costs ► Post-application purchase and installation ► Post-application construction or improvement ► Energy Audits or Assessment ► Permits and Licenses ► Professional fees ► Feasibility Study and Technical Report ► Business Plan and Retrofitting
REAP Guarantee Commercial Loan Minimum loan: $5,000 Maximum loan: $25 Million Rates: Negotiated Terms Fees
Percent of Loan Guarantee 85% Loan is less than $600,000 80% Loan is $600,000 to $5 Million 70% Loan is $5 Million to $10 Million 60% Loan over $10 Million
Funding State Allocation National Office Reserve 20% set aside for grants of $20,000 or less
Geothermal – electric generation Geothermal plants can operate around-the-clock, which increases their value from a reliability point-of- view, unlike some intermittent renewable fuels such as solar and wind. Geothermal electricity generation technologies consist of either "flash" technology or "binary" technology. With flash technology, water from 300 to 700 degrees Fahrenheit, but still in liquid form, is piped from its highly pressurized underground reservoir into a geothermal facility. Once this super-heated water is released, it flashes into steam that then drives a conventional turbine generator.