1. Rural Energy For America Program (REAP) & Rural e-Connectivity (“ReConnect”) Program

2. USDA Rural Development Alabama State Director Chris Beeker III

3. Rural Energy for America Program (REAP)
Program Overview
Program purpose
Grant Deadlines
Definitions
Guaranteed Loans
Eligibility
Sources of Matching Funds
Applications
Contacts
Grant Competitions

4. What is REAP’s purpose
Program is designed to assist farmers, ranchers and rural small businesses with renewable energy and energy efficient improvement projects
This program provides grants and loan guarantees for renewable energy and energy efficiency projects

5. Definitions Renewable Energy Systems (RES) &
Energy Efficiency Improvements (EEI)
Renewable Energy System is a process that produces energy from renewable energy sources (energy derived from a wind, solar, biomass, geothermal, hydrogen or anaerobic source).
Energy Efficiency Improvement is an improvement to a facility or process that reduces energy consumption

6. Definitions Agricultural Producers & Rural Small Businesses
Agricultural Producer is an entity who receives more than 50% of their income from production agriculture.
Rural Small Business is an entity who is located in a rural area (less than 50,000 in populations) and meets the size standard determined by SBA based on that entity’s NAICS code. The SBA can make this determination based on total revenues, total employees, or total assets.

7. Eligibility Applicant Agricultural Producer or Rural Small Business
No Federal Judgments, Delinquencies, or Debarment
*If applicant has received one or more grants under program then satisfactory progress must be made towards completion of any previously funded projects before any subsequent funding awarded.

8. Eligibility
Project
Purchase a Renewable Energy System or Make Energy Efficiency Improvements
Precommercial or Commercially Available Technology
Technical Merit (Determined by Tech Report)
Rural Area (Under 50,000 Population) - Business
Applicant = Owner, control of O&M, 3rd party can be used to manage
Site controlled by applicant for financing term
Revenue sufficient to cover O&M, Management, debt service for the life of the project.

9. Grant, Guaranteed Loan, and Project Limits
Eligibility
Grant, Guaranteed Loan, and Project Limits
Grants
RES – grant request from $2,500 to $500,000
Total project cost from $10,000 to $∞
Eligible project cost over $200,000 require a feasibility study
EEI – grant request from $1,500 to $250,000
Total project cost from $6,000 to $∞
Eligible project cost over $200,000 require an energy audit, otherwise an energy assessment is required certified by a licensed PE.
Guaranteed Loans
Up to $25,000,000 or 75% of the total eligible project cost, whichever is less.
Energy Audit and Feasibility Study requirements are the same as the grants above

10. Eligibility Eligible Cost
Only Cost Identified in the energy audit for EEI improvements are allowed
Post-application purchase and installation of equipment, (or remanufactured), except agricultural tillage equipment, used equipment, and vehicles
Post-application construction or improvements, except residential.
Energy Audits or Energy Assessments
Permit and License Fees
Professional Service Fees, except for app prep
Feasibility Studies and Technical Reports
Business Plans
Retrofitting

11. What Coast are NOT Eligible
Eligibility
What Coast are NOT Eligible
Pre-application improvements
Residential improvements
Energy efficiency improvements related to new construction
Vehicles or Agricultural tillage equipment
Research and Development projects considered by UDSA RD as not commercially available

12. Application Requirements Must meet the eligibility requirements for:
Applicant
Project
Financial Feasibility
Commercial Availability
Complete Application
In addition the application will also have to pass:
A Technical Review
A National Environmental Policy Act (NEPA) review
When construction is involved

13. Application Deadlines
Grant request of $20,000 or less (Restricted) &
Grant request of greater than $20,0000 (Unrestricted)
Restricted Grants – 2 Application Deadlines:
October 31st of every year
States receive 50% of their allocation for this competition
March 31st of every year
States receive the remaining 50% of their allocation for this competition
Unrestricted Grants – 1 Application Deadline:

14. Grant request of $20,000 or less (Restricted)
Grant Competitions
Grant request of $20,000 or less (Restricted)
Restricted Grants – Possibility of 5 competitions:
1st competition - October 31st Deadline
1st ½ of State Allocation for Restricted
2nd Competition March 31st Deadline
Remaining State Allocation for Restricted
3rd Competition March 31st Deadline
National Office reserve for Restricted
4th Competition March 31st Deadline
State allocation for Unrestricted
5th Competition March 31st Deadline
National Office reserve for Unrestricted

15. Grant Competitions (cont.)
Grant request of greater than $20,000 (Unrestricted)
Unrestricted Grants – 2 competitions:
1st Competition March 31st Deadline
State allocation for Unrestricted
2nd Competition March 31st Deadline
National Office reserve for Unrestricted

16. REAP Guaranteed Loan Program
Eligibility requirements are the same as the grant program
Loans made by private lender are insured by Federal Government
Guaranteed Loan funds can be used for working capital and land acquisition (which is different than the grant program)
Amount of loan (or combined loan and grant) made will not exceed 75% of eligible project costs
Minimum is $5,000 and Maximum is $25 Million
Projects with total eligible project costs less than $600,000 use a simplified application process
Interest Rates negotiated between Lender and Borrower

17. REAP Guaranteed Loan Program (cont.)
Collateral sufficient to protect interests of Lender and Government
Maximum Loan to Value (subject to be reduced depending on collateral type)
Real Estate 80%
Machinery and Equipment 70%
Working capital 60% (A/R, Inventory, & furniture fixtures and equipment)
Cash injection requirements – 25% of the total eligible project cost
Outside financing could be counted as a cash injection
In-kind contributions are not eligible as the cash injection
Eligible lenders – Federally insured or state licensed lenders and credit unions

18. Sources of Matching Funds
For Grants
3rd party financing
Does not include leases
Cash injections
For loans
Loans from financial institutions
Only 75% of the project can be funded through REAP
A combination Grant and Loan application is available
50% of the project could be the guaranteed loan
25% of the project could be the grant
Remaining 25% must be a cash injection

19. Contacts Huntsville Office – Brian Yarbrough, 256-532-1677
Cullman Office – John Vandiver,
Anniston Office – Andrew Wackerle,
Tuscaloosa Office – Teresa Long,
Tuskegee Office – Quinton Harris,
Camden Office – Nivory Gordon,
Ozark Office – Landra Siegfried,
Bay Minette Office – Allen Johnson,
State Office (Montgomery) – Michael Wilber,

20. Rural e-Connectivity (“ReConnect”) Program
Program Overview
Program purpose
Proposed Funding Service Area
Statutory Overview
Evaluation Criteria
Program Timeline
Submission
Eligible Entities
Evaluation and Processing
Grant and Loan Products
Management Analysis Profile
Eligible Cost
Technical Assistance
Eligibility Factors
Contacts

21. ReConnect Program Summary
Program Purpose
ReConnect Program Summary
Rural Development Announces its general policy and application procedures for funding under the ReConnect Program, established pursuant to the Consolidated Appropriations Act, 2018
The awards made under this program will bring high-speed broadband to rural areas that lack sufficient access to broadband.
The delivery of broadband connection and high-quality service will enable technologies critical to rural communities, such as precision agriculture.
The pilot will fuel long-term economic development and opportunities in rural America.

22. Statutory Overview Consolidated Appropriations Act 2018:
Enacted on March 21, 2018
Establishes a new pilot program to provide loans and grants to extend broadband service to rural areas.
The ReConnect Program’s Goal:
Expand broadband service to rural areas that do not have sufficient access.
Congress provided Rural Development with $600 million and expanded its existing authority to make loans and grants. USDA named the program “ReConnect”.
Reaches rural areas where 90% of households do not have sufficient access to broadband service (defined as 10Mbps* downstream and 1 Mbps upstream).

23. Program Timeline Dec 14, 2018 Early March 2019 February 2019
The Agency announces the ReConnect Program and associated Funding Opportunity Announcement.
Anticipated application acceptance date. Note: application windows are not final until the second Federal Register Notice on February 22, 2019.
February 2019
July – Nov 2019
The Agency will finalize the application window by notice in the Federal Register and Grants.gov Late February 2019.
The review, score, and award process will begin mid April Award announcements will begin in the summer and continue through the fall.

24. Eligible Entities
States, local governments, or any agency, subdivision, instrumentality, or political subdivision thereof
A territory or possession of the United States
An Indian tribe (as defined in section 4 of the Indian Self- Determination and Education Assistance Act (25 U.S.C. §450b))
Non-profit entities
For-profit corporations Limited liability companies
Cooperative or mutual organizations

25. Grant and Loan Products
Combo Loan/Grant
25/3 mbps minimum, incentive for higher speeds
Loan
Grant
Buildout speed
25/3 mbps minimum
25/3 mbps minimum, incentive for higher speeds
2% Interest Rate
Max award: $50 million
25% match
Max award: $25 million
50/50 Loan/Grant
Interest Rate of Fed Funds (~3%)
Max award: $50 million
Terms
Application Review
Open (non-competitive): rolling approvals over 120 days
Competitive Scoring,
60-day application window
Competitive Scoring,
90-day application window
Federal Funds Available in Round 1
$100 million grant +
$100 million loan
$200 million
$200 million

26. Products: 100% Loan Requirements Application Process
PFSA must be located in an area where 90% of households do not have sufficient access to broadband.
Tangible Equity to Total Assets must be at least 20% (Yr 3 through 5)
Applicants must meet at least two of the following: a minimum TIER of 1.2, a minimum DSCR of 1.2, or a minimum current ratio of 1.2.
Application Process
Applications will be accepted on a rolling, first-in first- out, basis during a 120-day window.
RUS may require additional information through the review process.
Applicants must respond to RUS within 30 days.

27. Products: 50% Loan & 50% Grant
Requirements
PFSA must be located in an area where 90% of households do not have sufficient access to broadband.
Applicants must meet at least two of the following: a minimum TIER of 1.2, a minimum DSCR of 1.2, or a minimum current ratio of 1.2.
Application Process
Applications will be accepted on a competitive basis during a 90-day window.
Applicants applying for this category will be targeting the highest possible score as laid out under the Program Scoring Guidelines.
Applicants will be scored and applications with the highest score will receive an award.

28. Products: 100% Grant Requirements Application Process
PFSA must be located in an area where 100% of households do not have sufficient access to broadband.
Applicants must meet at least two of the following: a minimum TIER of 1.2, a minimum DSCR of 1.2, or a minimum current ratio of 1.2.
Application Process
Applications will be accepted on a competitive basis during a 60-day window.
Applicants applying for this category will be targeting the highest possible score as laid out under the Program Scoring Guidelines.
Applicants will be scored and applications with the highest score will receive an award.

29. Eligible Cost
The construction or improvement of facilities, including buildings and land, required to provide broadband service
Pre-application expenses (not to exceed 5% of the total award). Costs must be incurred after the publication date of the FOA and be properly documented.
For 100% loans only – The acquisition of an existing system that does not currently provide sufficient access to broadband (limited to 40% of the total loan amount).
Terrestrial-based facilities for satellite broadband service.
Costs must be reasonable, allocable, and necessary.
Applications that propose to use any portion of the award or matching funds for any ineligible cost may be rejected.

30. Application Eligibility Factors

31. Notice of Proposed Funded Service Area
The Agency will publish a public notice of each application which will include the following information:
The identity of the applicant.
A map of each proposed funded service area showing the rural area boundaries and the areas that do not have sufficient access to broadband.
Existing service providers will have 30 calendar days to file a response. The response must include the following:
The number of customers currently purchasing broadband service, the rates of data transmission and the cost of each level of broadband service charged.
The number of customers receiving voice and video services, and the associated rates for those services.
A map showing where the existing service provider already offers service within the applicant’s PFSA.

32. Application Evaluation Criteria

33. Application and Submission

34. Evaluation and Processing Procedures
Review of Application
Applications will be evaluated using the criteria stated in the FOA
Eligibility of the applicant PFSAs will be verified by the Agency
100% Loans
Applications will be accepted on a rolling, first-in first-out, basis
100% Grants and 50/50 Loan/Grant Combinations
Applicants will be scored and applications with the highest score will receive an award
Award Notices
Successful applicants will receive an offer letter and award documents from RUS
Applicants may view sample award documents at

35. Management Analysis Profile (MAP)
Review of Awardee Operations
RUS may complete a Management Analysis Profile (MAP).
MAPs are used to evaluate an awardee’s strengths and weaknesses and are prepared to fulfill the terms of the award.
Once an award offer is accepted, RUS may schedule a site visit.
RUS reserves the right to not advance funds until the MAP has been completed.
If the MAP identifies issues of an operation and the in-ability to complete project, those issues must be addressed to the satisfaction of RUS before funds can be advanced.

36. Technical Assistance

37. Contacts for ReConnect
Andrew E Hayes – GFR for Telecom Cell Phone: (770) States Covered: FL, GA, PR, VI, AL Reggie Taylor – Community Development Specialist in Georgia Office Phone: Dale Gregory – Southern Regional Coordinator for the Innovation Center Cell: Office:

38. Michael Wilber Energy and Broadband Coordinator USDA Rural Development (334)