USDA, Rural Development Business Programs Energy Program Brian Buch, Rural Energy Coordinator

USDA, Rural Development –“the leading advocate for rural America at the federal level.” –Our mission: increase economic opportunity and improve the quality of life in rural America. –Investment (’09): over $354 million in rural Idaho through our housing, infrastructure/community facilities & business programs Rural Development Programs  Housing Programs  Community Programs  Business Programs

USDA, Rural Development Housing Programs –Single family housing loans –Home repair loans and grants –Multi-family housing loans Community Programs –Water & Waste loans and grants –Community Facility loans and grants Business Programs –Business & Industry Loan Guarantee –Rural Business Enterprise Grants –Rural Business Opportunity Grants –Intermediary Relending Program –Renewable Energy & Energy Efficiency –Value Added Producer Grant

Energy Programs: Background  Rural Development’s First Energy Program, Section 9006, was authorized in 2002 Farm Bill (Title IX, Section 9006).  2008 Farm Bill: 9006 Reauthorized under Section 9007: Rural Energy for America Program (REAP) Expanded Uses (including Audits and Feasibility Studies) Increased Funding Created New Energy Programs Biorefinery Assistance (9003) Repowering Assistance (9004) Bioenergy Program for Advanced Biofuels (9005) Biomass Research and Development (9008) Rural Energy Self Sufficiency Initiative (9009)

Rural Energy For America Program (REAP) Renewable Energy Systems (RES) & Energy Efficiency Improvements (EEI): Grant & Loan Guarantee Program  Established a grant (up to 25% of project not to exceed $500,000 for a Renewable Energy System or $250,000 for an Energy Efficiency Improvement ) and loan guarantee (up to 75% of project or $25 million) program to assist eligible applicants (agricultural producers and rural small businesses) to: 1) purchase renewable energy systems; 2) make energy efficiency improvements.

Rural Energy For America Program (REAP) Renewable Energy System: A system that produces or produces and delivers usable energy from a renewable energy resources. Renewable Energy: Energy derived from wind, solar, renewable biomass, ocean (including tidal, wave, current, and thermal), geothermal or hydroelectric source or hydrogen derived from renewable biomass or water using wind, solar, ocean (including tidal, wave, current, and thermal), geothermal or hydroelectric sources Energy Efficiency Improvements: Improvements to a facility or process that reduce energy consumption.

Rural Energy For America Program (REAP) Renewable Energy Systems (RES) & Energy Efficiency Improvements (EEI): Grant & Loan Guarantee Program  Energy Grants may be used to pay up to 25% of the eligible project costs or as follows: Type of Application Minimum Amt. Maximum Amt. Renewable Energy System $2,500 $500,000 Energy Efficiency Improvement$1,500 $250,000  Energy Loan Guarantees (or combination Grant & Loan Guarantee) may be used to pay up to 75% of the eligible project costs or as follows: Type of Application Minimum Amt. Maximum Amt. Renewable Energy System $2,500 $25,000,000 Energy Efficiency Improvement$1,500 $25,000,000

Rural Energy For America Program (REAP) Renewable Energy Systems (RES) & Energy Efficiency Improvements (EEI): Grant & Loan Guarantee Program Emphasis for 2010: 1.Applications with Grant Requests of $20,000 or less. 20% of Program Funds has been set aside for these request. 2.Applications with Total Project Costs less than $200,000. Simplified Application Process Reduced Technical Report requirements (Renewable) Reduced Feasibility Study requirements (Renewable) Reduced Energy Audit requirements (Energy Efficiency) 3.Applications that combine a loan guarantee with a grant.  Program Scoring Criteria gives more priority to these types of applications.

Rural Energy For America Program (REAP) Renewable Energy Systems (RES) & Energy Efficiency Improvements (EEI): Grant & Loan Guarantee Program Idaho had 28 RES/EEI applications submitted. 26 applications were eligible and complete and competed for funding. 21 applications were funded, 80% funding rate.