Rural Development

Rural Energy for America Program

REAPClean Energy Ambassadors WebinarSeptember 23, 2014

Kelley Messenger, Acting Energy Coordinator/Business Programs Specialist

Eligible Applicants

Agricultural Producer Agricultural Producers & Small Rural Small Businesses Can Apply• AGRICULTURAL PRODUCERS - 50% of GROSS Income is derived from ag operations (previous year tax return – Schedule F) - Must own & operate system for its useful life

• Individual or entity that receives 51 percent or more of their gross income from agricultural production – crops, livestock, aquaculture, forestry operations, nurseries, dairies

OWN & FARM the Land – can apply for whole project.TENANT – Equipment only (unless 20 year lease or evidence will own the ground)LANDLORD – Crop Share Rent AND actively engaged in the farming (must help plant and/or harvest)

• Energy Efficiency-Energy Savings per Audit or Assessment–Project MUST save energy (BTU savings) to

be eligible• USDA partners with Public Power District

(Nebraska Public Power District) in getting energy audits completed

–Shows percentage of energy to be saved by completing the project

–Shows annual dollar amount to be saved by ag producer by completing the project

What Projects are Eligible?

Eligible Project Costs Ineligible Project Costs

• Equipment: • Purchase & installation• New, refurbished, or

remanufactured equipment

• Post-application construction & facility improvements

• Professional service fees

• Energy audits & assessments

• Feasibility studies & technical reports

• Business plans

• Permits & license fees

• Retrofitting

• Working capital, land acquisition (Guarantee ONLY)

• Residential energy projects• Equipment:

• 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

REAP Grant Assistance

Energy Efficiency Improvements

Energy Efficiency Improvements

Minimum Grant Request

$1,500Total eligible project costs > $6,000

Minimum Loan Amount

$5,000Total eligible project costs > $6,667

Maximum Grant Request

$250,000Total eligible project costs > $1 million

Maximum Loan Amount

$25 MillionTotal eligible project costs > $33.4million

Up to 25%

of Eligible Project Costs

REAP Guaranteed Loan Assistance

Up to 75%

of Eligible Project Costs

Diesel to Electric Irrigation – Plainview, NE

ENERGY EFFICIENCY EXAMPLES

• 2 Diesel engine to electric motor conversions

• TPC $41,400• Grant $10,350

• Annual Savings $19,761• 2.1 year payback• 65.54% energy savings

•Gravity irrigation converted to Sub-Surface Drip Tape Irrigation (SDI), and a well rebowl

•TPC $89,502•Grant $22,421

•Annual Savings $368•243 year payback•47.13% energy savings

Gravity to Sub-Surface Drip Tape Irrigation – Lexington NE

ENERGY EFFICIENCY EXAMPLES

Gravity to Pivot Irrigation – Broken Bow NE

•Gravity Irrigation converted to Pivot Irrigation, and a well rebowl

•TPC $104,682•Grant $26,171

•Annual Savings $3,097•33.8 year payback• 37.43% energy savings

ENERGY EFFICIENCY EXAMPLES

Grain Dryer Replacement – Dawson County, NE

• Replaced old grain dryer system with new Tower Grain Drying system

• TPC $166,700• Guaranteed Loan $83,350• Grant $41,675

• Annual Savings $23,742• 7.02 year payback• 45.09% energy savings

ENERGY EFFICIENCY EXAMPLES

* $4,099 REAP Grant* $12,295 Leveraged funding

* The project replaced 2 mechanical windmills with Solar Powered Submersible Pumps for cattle watering.

Marlene Trampe - Kearney, Nebraska

RENEWABLE ENERGY EXAMPLES

* $17,507 REAP Grant * $54,522 Borrower Contribution

* Rural Development funds were used to install a 25Kw photo-voltaic solar system near an existing center pivot to replace the irrigation system’s existing energy source.

* Will produce 39,894 Kwh annually.

T&K Five Star Cattle Company, Inc - Lindsay, Nebraska

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RENEWABLE ENERGY EXAMPLES

MCGFF, LLC - Osceola, NE

•$19,750 RD funding•$75,250 Leveraged funding•REAP funds were used to install a 25KW wind turbine to provide electricity to operate a farm irrigation system•Jobs retained – 1

RENEWABLE ENERGY EXAMPLES

REAP Funding• Farm Bill authorized $50 Million/Year • Applications Accepted year-round• Next round of funding will be made available Oct/Nov.

How to Apply• Contact the USDA Rural Development Energy

Coordinator in your state for application materials and resources: http://www.rurdev.usda.gov/BCP_Energy_CoordinatorList.html

• Submit applications any time of year.

• Applications compete for funding based score.

• Funding selections are made at least once per year.