REAP

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REAP Renewable Energy forAmerica Program
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REAP (Rural Energy for America Program)USDA
RURAL DEVELOPMENT
Do you know existing businesses or farmers
in your area that could benefit from making
Energy Efficiency Improvements? Are
you aware of the benefits and opportunities
Renewable Energy Systems such as wind,
solar, biomass, and geothermal can provide
to local businesses and farmers?
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Energy ProgramsUSDA RURAL DEVELOPMENT

• The Food, Conservation, and Energy Act of 2008
• Renewable Energy for America Program (Section
  9007)
• Biorefinery Assistance (Section 9003)
• Repowering Assistance (Section 9004)
• Bioenergy Program for Advanced Fuels (Section
  9005)
• Biomass Research and Development (Section 9008)
• Rural Energy Self-Sufficiency Initiative (Section
  9009)

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What is the Section 9007 Program?

• Designed to assist farmers, ranchers and rural
  small businesses with energy projects

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What is the Section 9007 Program?

• Provides Grants Loan Guarantees for
• Renewable Energy Projects
• and
• Energy Efficiency Projects

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What is the Section 9007 Program?

• USDA has funded approximately 2,012 loan grant
  projects totaling 143,658,988 since the Program
  began in FY 2003.
• For FY 2008, 1,157 applications were filed,
  requesting 1,205,714,554 and 764 were funded
  totaling 49,805,805.

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Who is Eligible?

• Agricultural producers and rural small businesses
  can apply

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What Projects are Eligible?

• Any renewable energy and energy efficiency
  project as defined in the law.

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What Projects are Eligible?

• Renewable Energy Energy derived from
• wind
• solar
• renewable biomass
• ocean (including tidal, wave, current thermal)
• geothermal
• hydroelectric source
• hydrogen derived from renewable biomass or water
  using one of the above energy sources

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What Projects are Eligible?

• Renewable Biomass any organic material that is
  available on a renewable or recurring basis.
  Includes
• Renewable plant material, including
• Feed grains
• Other agricultural commodities
• Other plants and trees
• Algae
• Waste material, including
• Crop residue
• Other vegetative waste material (including wood
  waste wood residues)
• Animal waste and byproducts (including fats,
  oils, greases, manure)
• Food waste and yard waste
• Materials, pre-commercial thinnings, or invasive
  species from National Forest System land public
  lands (See Section 9001 for further definition)

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What Projects are Eligible?

• Energy efficiency projects typically involve
  installing or upgrading equipment to
  significantly reduce energy (BTU) use.

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What Projects are Eligible?

• Pre-commercial or commercially available and
  replicable technology
• Grant requests 200,000 or less, commercially
  available technology only
• Projects must be technically feasible
• Must have sufficient revenues to provide for OM

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What Projects are Eligible?

• Energy Efficiency Projects
• Energy Audit Required showing BTU Savings
• Renewable Energy Projects
• Business Level Feasibility Study Required
• If TPC 200,000

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Business Level Feasibility Study
An acceptable feasibility study, completed by an
independent third party, should include, but not
be limited to, a discussion of the projects

1. Economic feasibility
2. Market feasibility
3. Technical feasibility
4. Financial feasibility
5. Management feasibility

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Grant Program

• Grant Request cannot exceed 25 of project costs
• Applicant must demonstrate financial need
• Maximum grant request
• 500,000 for Renewable Energy
• 250,000 for Energy Efficiency
• Minimum grant request
• 2,500 for Renewable Energy
• 1,500 for Energy Efficiency

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Guaranteed Loan Program

• Guaranteed Loan cannot exceed 75 of total
  eligible project costs.
• Minimum Guaranteed Loan 5,000
• Maximum Guaranteed Loan 25MM
• Simplified Application process for loans 600,000
  or less

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Guaranteed Loan Program

• Maximum Percentage of Guarantee
• 600,000 or less 85
• 600,001 to 5 million 80
• 5 million to 10 million 70
• 10 million to 25 million 60
• Interest Rate set by Lender
• Guarantee fee 1 of guaranteed portion,
• with annual renewal fee of ¼ of 1 of the
  guaranteed portion.
• No Prepayment Penalty

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Combination Grant/Guaranteed Loan

• Combination requests cannot exceed 75 of total
  eligible project cost
• Combo requests due on the 15th and last day of
  the month and are funded bi-weekly until funds
  exhausted.
• 100 of eligible combos funded to date

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Guaranteed Loan Program

• Guaranteed Loan Terms
• Real Estate
• 30 years maximum
• Machinery and Equipment
• 20 years or the useful life
• Working Capital
• 7 years maximum
• Term W.C. Only, No Lines of Credit

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FY 2009 Total Allocation

• Energy Audit REDA 4 2,400,000
• Feasibility Study 10 6,000,000
• Grants of 20,000 or less 20 12,000,000
• State Allocations 46.2
  27,717,600
• National Office REAP 19.8 11,882,400
• Reserve
• TOTAL
  60,000,000

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Nevada State Allocation

• Grant only 338,850
• Loan-only 1,584,677

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Pooling of Funds

• State Allocations must be used by close of
  business approximately the end of May.
• Priority of pooled funds
• Grants of 20,000 or less
• Loan only
• Loan and grant combos
• Grant only

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Dates to Remember

• NOSA (Notice of Solicitation of Applications)
  Issued Anticipated by end of February
• Closing Date Unknown
• received at USDA RD State Office
  1390 S. Curry St.
  Carson City, NV 89703
• Pooling Date 5/28/2010

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Contact Information
This program assists local businesses and
farmers in obtaining grants loans for
renewable energy energy efficiency projects.
www.rurdev.usda.gov USDA RURAL DEVELOPMENT
Mark Williams-Business Programs Specialist Ph.
775-887-1222 Ext 116 Mark.Williams_at_nv.usda.gov
Herb Shedd-Business Programs Director Ph.
775-887-1222 Ext. 119 Herb.Shedd_at_nv.usda.gov