USDARURAL DEVELOPMENT FUNDING OPPORTUNITIES FOR RENEWABLE ENERGY PROJECTS

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• RICHARD CARRIG
• Rural Business and Cooperative Programs
  Director
• USDA-Rural Development
• [phone]
• Richard.Carrig_at_ut.usda.gov

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• Renewable Energy / Energy Efficiency Program
• Value-Added Producer Grant Program
• Rural Business Enterprise Grant Program
• Rural Business Opportunity Grant Program
• Rural Economic Development Loan and Grant Program
• Business and Industry Loan Guarantee Program
• Electric Program (Direct and Guaranteed loans)
• 504 loan program

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• Renewable Energy / Energy Efficiency
• Program

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• Renewable Energy / Energy Efficiency Program
• Authorized by section 9006 of the Farm Security
  and Rural Investment Act of 2002 (Farm Bill)
• Grant / guaranteed loan program to assist
  eligible farmers, ranchers, and rural small
  businesses to purchase renewable energy (RE)
  systems, or make energy efficiency (EE)
  improvements
• RE systems for wind, solar, biomass, geothermal
  or hydrogen
• Cost effective energy efficiency improvements
  
• RE system technology must be commercially
  available (no RD)
• Cannot fund residential RE systems or EE
  improvements!!

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• Renewable Energy / Energy Efficiency Program
• Most of Utah qualifies as Rural!! (50,000 or less
  population)
• Only 39 communities not eligible in Utah
• Grant requests will be solicited separately from
  guaranteed loan requests
• Grant applications solicited March 28th, with
  application deadline of June 26th (90 day
  application window)
• Guaranteed loan applications will be solicited
  May/June of this year
• Grant awards cannot exceed 25 of eligible
  project costs
• Guaranteed loans cannot exceed 50 of eligible
  project costs

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• Renewable Energy / Energy Efficiency Program
• About 23 million dollars available nationwide in
  FY2005
• Same as FY2004
• 94 renewable energy systems were funded
  nationwide in FY2004
• 38 wind systems
• 37 anaerobic digester systems
• 13 biomass systems
• 2 Hybred systems
• 2 Geothermal systems
• 2 solar systems
• 73 energy efficiency projects were funded
  nationwide in FY2004

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• Renewable Energy / Energy Efficiency Program
• Maximum RE grant awarded cannot exceed 500,000
• Maximum EE grant awarded cannot exceed 250,000
• Maximum guaranteed loan (RE and EE ) cannot
  exceed 10,000,000
• Minimum RE or EE grant awarded must be at least
  2,500
• Minimum 10,000 project size to qualify
• Minimum RE or EE guaranteed loan awarded must be
  at least 2,500
• Minimum 5,000 project size to qualify

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• Renewable Energy / Energy Efficiency Program
• Additional information, request for applications,
  and application requirements are available at
  www.rurdev.usda.gov/rbs/farmbill

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• The Value-Added Producer Grant
• Program

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• Value-Added Producer Grant (VAPG) Program
• Authorized by section 6401 of the Farm Security
  and Rural Investment Act of 2002 (Farm Bill)
• Purpose is to increase value-added profit margins
  to producers of agricultural commodities
• Applicants must be a independent agricultural
  producer, a agricultural producer group, a farmer
  or rancher cooperative, or a majority-controlled
  producer based business venture
• Applicants must have majority ownership and
  control of the value-added venture

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• Value-Added Producer Grant (VAPG) Program
• Grants may be awarded as a planning grant to
  study or assess a value-added project (develop
  business plans, conduct feasibility studies,
  develop marketing plans, etc.), or as a working
  capital grant to launch a value-added project
  (implement a business plan, marketing study,
  etc).
• About 14 Million dollars available in FY 2005
• Grant awards cannot exceed 50 of relevant
  project costs

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• Value-Added Producer Grant (VAPG) Program
• Grant funds cannot be used for bricks and
  mortar or equipment acquisition.
• Maximum planning grant awards cannot exceed
  100,000
• Maximum working capital grant awards cannot
  exceed 150,000
• Many renewable energy projects can qualify for
  this program (wind studies, biomass projects,
  etc)

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• Value-Added Producer Grant (VAPG) Program
• 12 renewable energy projects were funded in
  FY2004
• 7 biomass related projects
• 3 anaerobic digester related projects
• 1 solar related project
• 1 wind related project
• 32 renewable energy projects were funded in
  FY2003
• 24 biomass related projects
• 4 wind related project
• 1 anaerobic digester related projects
• 3 other

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• Value-Added Producer Grant (VAPG) Program
• Only one funding cycle per year
• Applications for FY2005 must have been received
  in Washington D.C. by May 6th!!
• Too late for this year, but there will be another
  funding cycle in FY2006
• Additional information, including application
  requirements and forms are available at
• www.rurdev.usda.gov/rbs/coops/vadg.htm

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• The Rural Business Enterprise Grant
• (RBEG) Program

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• Rural Business Enterprise Grant (RBEG) program
• Applicants must be a public body, a private
  non-profit organization, or a Federally
  recognized tribe
• Purpose is to promote the economic development of
  multiple small and emerging rural businesses
• Businesses with fewer than 50 employees and less
  than 1 million dollars in gross annual sales
• Most of Utah qualifies as rural (50,000 or less
  population)

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• Rural Business Enterprise Grant (RBEG) program
• Many renewable energy projects can qualify for
  this program
• 18 renewable energy projects funded from
  FY2001-04
• 1 Utah anaerobic digester project
• Funds may be used for bricks and mortar
• Not a pass through grant program
• Funds may also be used to provide technical
  assistance, or capitalize a revolving loan
  program
• No minimum or maximum limit, but most funded
  projects are under 100,000

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• Rural Business Enterprise Grant (RBEG) program
• About 40 million available in FY2005
• No matching funds requirement, but most funded
  projects will include matched funds
• Requests are typically funded at multiple
  intervals throughout the year from state and
  national allocations
• Contact the State Office for USDA-Rural
  Development for an RBEG application packet

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• The Rural Business Opportunity Grant
• (RBOG) Program

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• RBOG program
• Applicants must be a public body, a private
  non-profit organization, or a Federally
  recognized tribe
• Purpose is to assist economic development
  technical assistance projects that will serve
  economically depressed rural communities
  (feasibility studies, market research activities,
  training activities, etc.)
• Most of Utah qualifies as rural (50,000 or less
  population)
• Many renewable energy projects can qualify for
  this program
• 4 renewable energy projects funded from FY2001-04
• 1 Utah biomass project

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• RBOG program
• Funds cannot be used for bricks and mortar
• Maximum RBOG award is 50,000- no minimum
• Maximum 150,000 for multi-state projects
• No matching funds requirement, but most funded
  projects will include matched funds
• Funded from Washington, but applications must be
  
• submitted through the USDA-Rural Development
  State
• office in SLC

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• RBOG program
• Complete applications must be received by 5/27/05
  to
• compete for funding in FY2005
• About 3 million dollars available nationwide in
  FY2005
• Contact the State Office for USDA-Rural
  Development for an RBOG application packet

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• The Rural Economic Development Loan and Grant
  (REDLG) Program

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• REDLG program
• About 35 million dollars available in FY2005
• Projects are funded quarterly each year
• Funded from Washington D.C., but applications
  processed through the State office for USDA-Rural
  Development
• Consists of a zero interest loan program (REDL),
  or provide funding for a revolving loan program
  (REDG)

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• REDLG program
• Applicants are limited to limited number of
  electric and telecommunications companies
  financed by USDA
• Eligible utility companies in turn utilize REDLG
  assistance to fund community assistance and
  private business loans
• Many renewable energy projects could qualify!!
• 5 renewable energy projects funded from FY2001-04

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• REDLG program
• In Utah, there are currently 7 entities that can
  apply for REDLG financing
• Beehive Telephone Company, Inc.
• Central Utah Telephone, Inc.
• Dixie-Escalante Rural Electric Association (REA)
• Flowell Electric Association
• Garkane Power Association
• Moon Lake Electric Association
• Uintah Basin Telephone Association

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• REDLG program
• Loan program
• Maximum 10 year loan term
• Maximum loan size (FY2005) of 740,000
• Grant program
• Maximum 300,000 grant (FY2005)
• Funds must first be revolved in the form of a
  zero interest loan to assist a rural community
  assistance project
• Seed funds for the revolving loan program are
  generated as the community assistance funded loan
  is repaid

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• REDLG program
• Loan program
• Maximum 10 year loan term
• Maximum loan size (FY2005) of 740,000

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• The Business Industry
• (BI)
• Loan Guarantee Program

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• BI Loan Guarantee Program
• Federal guarantee of a loan made by a commercial
  lender
• About 610,000 million dollars funding authority
  available in FY2005
• A commercial lender applys to USDA-Rural
  Development for a guarantee (usually 80) for a
  proposed loan to the lenders customer

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• BI Loan Guarantee Program
• Purpose of the program is to encourage rural
  lenders to finance quality businesses that
  support a diversified economic base and provide
  or save good quality jobs in rural areas
• Most of Utah qualifies as rural (50,000 or less)
  
• USDA will not guarantee marginal or substandard
  loans
• Many renewable energy projects will qualify!!
• 11 renewable energy projects funded from
  FY2001-04

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• BI Loan Guarantee Program
• USDA will not guarantee marginal or substandard
  loans
• BI loan limit is 25 million dollars
• BI loan guarantee limits
• 80 for loans up to 5 million dollars
• 70 for loans of 5 million dollars up to 10
  million
• 60 for loans of 10 million dollars and above

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• BI Loan Guarantee Program
• Repayment terms
• Working capital- Maximum 7 years
• Equipment- Maximum 15 years
• Real Estate- Maximum 30 years

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• BI Loan Guarantee Program
• Interest rates
• Can be fixed or variable
• Negotiated between lender and borrower

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• Electric Program
• (Direct and Guaranteed Loans)

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• Electric Program
• The RUS electric portfolio currently consists of
  about 700 electric systems in 47 states
• Loan or loan guarantee program to finance the
  construction and improvement of electric
  facilities in rural areas, including generation,
  transmission, and distribution facilities

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• Electric Program
• Some community scale renewable energy projects
  could qualify!!
• 96 of funded projects are non-profit
  cooperatives
• 4 of funded projects are municipal systems,
  native american tribal utilities, and other
  entities
• Eligible electric program borrowers are entities
  that will provide
• Retail electric service to rural areas, or
• Supply power needs of distribution borrowers in
  rural areas

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• Electric Program
• Eligible electric program borrowers are entities
  that will provide
• Retail electric service to rural areas, or
• Supply power needs of distribution borrowers in
  rural areas
• Can finance off-grid or on-grid renewable
  energy systems (including hydropower)
• RUS has financed both photovoltaic (solar) and
  wind powered community scale systems.

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• Electric Program
• 35 year maximum loan term
• 30 supplemental financing typically required
• 100 guarantees possible
• Federal Financing Bank (FFB)
• Rural Utilities Cooperative Finance Corporation
  (CFC)
• National Bank for Cooperatives (CoBank)

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• Electric Program
• Rural areas for this program include incorporated
  communities (towns) of less than 2,500 persons,
  and unincorporated areas (counties) of less than
  50,000 persons

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• 504 Loan Program

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• 504 Loan program
• Residential purposes only--available only to very
  low income rural homeowners
• Maximum loan size is 20,000
• Maximum 20 year loan term
• 1 interest rate
• Rural areas for this program include incorporated
  areas (towns) up to 20,000

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• Important websites
• USDA-Rural Development website
  www.rurdev.usda.gov
• USDA-Rural Development Business and Cooperative
  Programs website www.rurdev.usda.gov/rbs
• Renewable Energy/Energy Efficiency program
  (section 9006) website www.rurdev.usda.gov/rbs/f
  armbill
• Value-Added Producer Grant (VAPG) website
  www.rurdev.usda.gov/rbs/coops/vadg.htm

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• Important websites
• Electric Program website www.rurdev.usda.gov/rus
  /electric/
• 504 Loan Program website www.rurdev.usda.gov/rhs
  /sfh/brief_repairloan.htm

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• Contacts for USDA-Rural Development
• Richard Carrig
• Rural Business and Cooperative Programs
  Director
• Phone [phone]
• email Richard.Carrig_at_ut.usda.gov
• Roger Koon
• Rural Business and Cooperative
  Programs Specialist
• Phone [phone]
• email Roger.Koon_at_ut.usda.gov

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USDA-RURAL DEVELOPMENTFUNDING OPPORTUNITIES FOR
RENEWABLE ENERGY PROJECTS

• Contacts for USDA-Rural Development
• Vern Anderson
• Rural Business and Cooperative Programs
  Specialist
• Phone [phone], ext. 19
• email Vern.Anderson_at_ut.usda.gov
• LuAnn Wilson
• Rural Business and Cooperative
  Programs Technician
• Phone [phone]
• email LuAnn.Wilson_at_ut.usda.gov