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NSAC Far Western Chapter 54 th Annual Meeting May 28, 2010 REAP what you sow: Planning for Green Energy.

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Presentation on theme: "NSAC Far Western Chapter 54 th Annual Meeting May 28, 2010 REAP what you sow: Planning for Green Energy."— Presentation transcript:

1 NSAC Far Western Chapter 54 th Annual Meeting May 28, 2010 REAP what you sow: Planning for Green Energy

2 What do you do? We are CPA’s, but we don’t do “CPA” work Planning and Feasibility Interim Executives Special Projects People Services Grant Writing 2

3 Grants = Free Money! Right? Not exactly; it takes work, lots of work. Find the grant Write the grant Administer the grant 3

4 Find the Fake Grant A.Pygmy Rabbit Research B.Bluemouth Sucker and Flannelmouth Sucker Genetic Analysis C.Environmental Regulatory Enhancement D.Ponies for Preschoolers E.Molecular sexing of Red Knot and Marbled Godwits 4

5 Rural Energy for America Program (REAP) The REAP program funds renewable energy projects – wind, solar, biomass, geothermal and anaerobic digesters The REAP program also funds energy efficiency improvements and energy audits 5

6 REAP: Agency & contact info USDA Rural Development Office Phil Brown – Business and Cooperative Specialist and Energy Coordinator (California) (530) 792-5811 6

7 REAP: Available funding REAP grants will fund up to 25% of your total project costs Grants and loan guarantees total funding of $99.34 million in FY 2010, with at least $70 million for both FY 2011 and FY 2012 Broken into different “buckets” Small grants (requests of $20,000 or less) Mid-size grants (requests of $20,001 to $50,000) Large grants (requests of $50,001 to $500,000) Loan guarantees of up to 75% of total project costs 7

8 REAP: Eligibility Must be in a “Rural” area (see USDA map) Must be a “small business” (SBA standards) OR an agricultural producer (SBA standards don’t apply) Demonstrate financial need for the grant Majority ownership must be US citizens Nonprofits and public projects are NOT ELIGIBLE 8

9 REAP: Eligible projects Solar, Biomass, geothermal, hydrogen, wind, hydropower Energy efficiency improvements (fixtures, machinery, equipment), energy audits Feasibility studies 9

10 Rules vs. Preferences The Rules are what they tell you…the Preferences are what they don’t…unless you ask. REAP program is full of “Preferences” 10

11 REAP Preferences Small applications have a greater chance of success Large applications don’t stand a chance if they aren’t submitted with a loan guarantee Applications received early in the process stand a much better chance of getting funded than those submitted at the application deadline – “First Come, First Serve” Ag producers are preferred over small businesses Application is documentation heavy 11

12 REAP: Big vs. Small Big REAPs are applications requesting over $50,000. The application is more involved and will require a independent feasibility study (including financial projections) to be done. Midsize REAPs are for applications requesting $50,000 or less have a simpler application and don’t require a feasibility study. Also there is a “preference” for applications requesting $20,000 or less (small REAPs). 12

13 REAP: How can I be competitive? Start working now for next year Apply before the program is announced Early applications will get funded at the state level and won’t have to compete at the national level If your project is large (request over $50,000) get a bank to do a loan guarantee Start talking to your vendor, a lot of information will be required from them which takes time 13

14 REAP: Is it worth it? Yes, it does take time and effort to prepare a successful package, but consider this… 25% REAP grant 30% Investment tax credit (ITC) 5-10% in other rebates (CSI, EBPP, etc.) Actual cost to you could be only 35-40% of the total project. Dropping your simple payback period to less than 10 years. 14

15 REAP: California is losing out! Midwestern states like Iowa and Nebraska are getting our funding. They have 12 to 13 USDA-RD energy coordinators while California has only one! They prepare applications all year long and submit the day the program is announced. Once their state allocation is all gone they start taking all the national level funding too. 15

16 REAP: Important Dates Renewable Energy and Energy Efficiency projects are due June 30, 2010 Feasibility Study and Energy Audit grants have not yet been announced, which means there is still time for this year. Don’t know when the FY 2011 REAP grants will be announced – it really doesn’t matter, work on your application now before the program is announced, if you wait until the program is announced it will be too late. 16

17 What to learn more – find other grants Contact Brent Morrison or myself Contact Phil Brown or your state’s USDA-RD Energy Coordinator Visit Calif’s USDA RD’s website www.rurdev.usda,gov/cawww.rurdev.usda,gov/ca Visit Visit Over 2,000 grant programs with emphasis in food, agribusiness, energy, and the environment Grant notification Free resources Blog 17

18 Find the Fake Grant A.Go for Broke National Education Center B.Light Footed Clapper Rail Monitoring C.Flammulated Owl Surveys D.Support for a National Monitoring and Evaluation System, Strategic Information Coordination, Data Synthesis, and Data Use to Strengthen the Multi-Sector HIV/AIDS Response in the United Republic of Tanzania 18


20 Geoff Chinnock, CPA Morrison & Company 2623 Forest Ave., Ste. 110 Chico, CA 95938 (530) 893-4764 20

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