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NSAC Far Western Chapter54th Annual Meeting
May 28, 2010
REAP what you sow: Planning for Green Energy
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
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Grants = Free Money! Right?
Not exactly; it takes work, lots of work.
•Find the grant
•Write the grant
•Administer the grant
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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
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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
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REAP: Agency & contact info
USDA Rural Development Office
Phil Brown – Business and Cooperative Specialist and Energy Coordinator (California)(530) [email protected]/ca
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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
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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
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REAP: Eligible projects
•Solar, Biomass, geothermal, hydrogen, wind, hydropower
•Energy efficiency improvements (fixtures, machinery, equipment), energy audits
•Feasibility studies
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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”
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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
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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).
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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
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REAP: Is it worth it?
Yes, it does take time and effort to prepare a successful package, but consider this…
25% REAP grant30% 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.
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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.
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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.
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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/ca•Visit www.grants.gov•Visit www.morrisongrants.com
•Over 2,000 grant programs with emphasis in food, agribusiness, energy, and the environment•Grant notification•Free resources•Blog
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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
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FREE RESOURCES
GRANT WRITING
ADMINISTRATION
DATABASE
a service of:
Geoff Chinnock, CPAMorrison & Company
2623 Forest Ave., Ste. 110Chico, CA 95938(530) 893-4764
www.MorrisonGrants.com
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