1. USDA Rural Development: Financing Energy Projects

2. Ken Yearman, Loan Specialist & Energy Coordinator VT/NH
Contact Information
Ken Yearman, Loan Specialist & Energy Coordinator VT/NH
(802)
Eric Law, Community Loan Specialist VT/NH
(802)

3. Mission: Rural Development is committed to helping improve the economy and quality of life in rural America.
Housing (Single and Multi-Family) 502, 504, 515 Programs
Business Development
RBDG, B&I, REAP Programs
Essential Community Facilities
CF, WEP Programs

4. Renewable Energy Systems & Energy Efficiency Improvements Program

5. Eligible Applicants Agricultural Producer Rural Small Business
Individual or entity that receives 51 percent or more of their gross income from agricultural production – crops, livestock, aquaculture, forestry operations, nurseries, dairies
For-profit small business - as defined by the Small Business Administration (SBA)
Rural area or non-metro community of < 50,000

6. of Eligible Project Costs
REAP Grant Assistance
Up to 25%
of Eligible Project Costs
Renewable
Energy Systems
Energy Efficiency Improvements
Minimum Grant Request
$2,500
Total eligible project costs > $10,000
$1,500
Total eligible project costs > $6,000
Maximum Grant Request
$500,000
Total eligible project costs > $2 million
$250,000
Total eligible project costs > $1 million

7. REAP Grant Allocations
FY16
For Grant Requests <$20,000
For Grant Requests >$20,000
Vermont
$142,000
$380,000
New Hampshire
$143,000
$384,000

8. REAP Guaranteed Loan Assistance
Up to 75%
of Eligible Project Costs
Minimum Loan Amount
$5,000
Total eligible project costs > $6,667
Maximum Loan Amount
$25 million
Total eligible project costs > $33.4 million
Details
USDA guarantees a commercial loan; applicant must have a willing lender.
Terms are negotiated between the lender and borrower.
Fees, appraisals, equity & collateral requirements apply.

9.  Eligible Project Costs  Ineligible Project Costs
Equipment:
Purchase & installation
New or refurbished
Post-application construction & facility improvements
Retrofitting
Professional service fees
Permits & license fees
Working capital, land acquisition (Guarantee loan ONLY with restrictions)
Residential energy projects
Farm tillage equipment
Used equipment
Vehicles
Pre-application construction & facility improvements
Application preparation or grant writer fees
Line of credit
Lease payments
Payment to the applicant/business owner, beneficiary, or relative

10. Grant Scoring Criteria
Quantity of Energy Generated or Saved per REAP Grant Dollar Requested (10 points)
                      
Quantity of Energy Replaced, Saved or Generated (15 points)  
                                                      
Environmental Benefits (5 points)
Commitment of Funds (20 points)
Size of the Agricultural Producer or Rural Small Business (10 points)
Previous Grantees and Borrowers (15 points)
Simple Payback (15 points)
State Director and Administrator Priorities (10 points)

11. Edgewater Farm Rooftop solar panels $56,141 Total Cost
$14,035 REAP Grant
$42,106 Applicant Funds
Produces over 45% of electricity needs

12. Middlebury Train Depot
Historical Energy Retrofit
$364,913 Total Cost
$29,913 REAP Grant
$44,869 REAP Loan Guarantee
49% reduction in energy costs

13. Community Facility and Water Environmental Loan and Grant Programs

14. Eligible Applicants Municipal Entities Private-Non-Profits
For CF, rural areas of < 20,000 – towns, villages, schools, libraries, etc.
For WEP, rural areas of < 10,000 – water, wastewater, stormwater, and solid waste utilities
Community-based non-profits – hospitals, daycares, assisted living facilities, community centers, theatres, small colleges, museums, etc. serving rural areas of < 20,000
Private, non-profit water utilities – water and wastewater utilities serving < 10,000

15. CF Loan & Grant Assistance
Equipment Only or Entire Project
Renewable
Energy Systems
Energy Efficiency Improvements
Grant Request
75, 55, 35, or 15% of Project
Maximum grants of $50K
Loan Request (2.875%)
Up to 100% of Project

16. WEP Loan & Grant Assistance
100%
of Eligible Project Costs

17. Community Program Allocations
Community Facilities
Water Environmental
Vermont
$500K Grant,
$11M Loan
$3M Grant
$4M REAP $10M Loan
New Hampshire
$300K Grant,
$12.5M Loan
$3M Grant,

18. Running the Numbers (CF Example)
$250,000 Town Hall Solar Project
35% CF Grant- Eligible Town
$50K ($87K-eligible but capped this year to $50K)
Check out eligibility at
CF Loan Amount
$150K
Other Funding
$25K (Clean Energy Development Fund Grant)
$25K (Donations/Capital Campaign)

19. CP Funding Criteria
Small Communities with a Population of less than 5,500 (up to 30 points)
Median Household Income below the Statewide Average, $55K in VT and $67K in NH (up to 30 pts.)
                      
Health and Sanitary Benefits (up to 25 pts.)                                                     
Commitment of Funds/Use of Other Funds (up to 15 pts.)
Project Consistent with a Regional Plan (up to 10 pts.)
State Director and Administrator Priorities (up to 15 pts.)
Other Points include Consolidation, Operational Efficiency, and Facility Type (esp. public safety and health)

20.  Eligible Project Costs  Ineligible Project Costs
Land purchase/site development
Equipment:
Purchase & installation
New only
Construction (e.g., weatherization efforts)
Legal, engineering, and other consultant services
Permits
Short-term financing interest
Other costs deemed necessary for project completion
Pre-application construction & facility improvements
Operation and Maintenance Costs
*Electric production > facility needs
Covering construction costs under a loan kicks in basis of design, voter approval, environmental review, and bidding/contract requirements

21. Catamount Arts Center
80 Off-site Solar Panels, LED Lighting, and 3 Heat Pumps
$272K Total Cost, $150K Direct Loan, $41,000 Grant
$59,000 VT Grant, $22K Applicant
30-40% reduction in operating expenses

22. Wastewater Utility Model
On-Site Solar Panel Install
$360,000 Total Cost
$75,000 NH PUC Grant
$285,000 WEP Loan
60% reduction in energy costs

23. Contact Information
Ken Yearman, Loan Specialist & Energy Coordinator VT/NH
(802)
Eric Law, Community Loan Specialist VT/NH
(802)
Thank you!