Renewable Energy and Energy Efficiency Program
INFORMATION SHEET
Section 9006 Ð The Renewable Energy and Energy Efficiency Program, through USDA-Rural Development, offers grants, guaranteed loans, and combination grant/guaranteed loans to help agricultural producers and rural small business purchase and install renewable energy systems and make energy efficiency improvements in rural areas. Helpful information regarding the Section 9006 program can be found at: www.rurdev.usda.gov/rbs.html
Who is eligible?
Ÿ An agricultural producer (individual or entity) directly engaged in the production of agricultural products and obtains at least 50% or greater of their gross income from their agriculture business.
Ÿ A rural small business Ð an entity is considered a small business in accordance with SBAÕs (Small Business Administration) small business size standards (by NAICS codes). SBA small size standards can be found at http://www.sba.gov/size/index.html
--A private entity including a sole proprietorship, partnership, corporation, and a cooperative (including a cooperative qualified under section 501(c) (12) of the Internal Revenue Code.
--An electric utility, including a Tribal or governmental electric utility that provides service to rural consumers on a cost-of-service basis without support from public funds or subsidy from the Government authority establishing the district, provided such utilities meet SBAÕs definition of small business. These entities must operate independent of direct government control.
Ÿ With the exception of the entities described above, all other non-profit organizations and public entities are excluded.
Ÿ For projects with a total eligible cost exceeding $200,000, agricultural producers and rural small businesses with a demonstrated financial need.
Ÿ For projects with total eligible costs of $200,000 or less, applicants must provide a statement certifying their financial need.
How much assistance can be provided?
|
|
Renewable Energy Projects |
Energy Efficiency Improvements Projects |
|
Description |
A system that produces or produces and delivers usable energy from a renewable energy source. |
Improvements to a facility, building, or process that reduces energy consumption. |
|
Minimum grant (no more than 25% of total eligible project cost) |
$2,500 |
$1,500 |
|
Maximum grant (no more than 25% of total eligible project cost) |
$500,000 |
$250,000 |
|
Maximum grant per applicant per fiscal year $750,000 |
||
|
|
Renewable Energy Projects |
Energy Efficiency Improvements Projects |
|
Minimum guaranteed loan (no more than 50% of total eligible project costs) |
$5,000 |
$5,000 |
|
Maximum guaranteed loan (no more than 50% of total eligible project cost) |
$10,000,000 |
$10,000,000 |
|
|
|
|
|
Minimum grant portion of the combined funding request |
$1,500 |
$1,500 |
|
Maximum combination grant/guaranteed loan (no more than 50% of total eligible project costs) $10,000,000
|
||
|
|
|
|
|
Services of a Professional Engineer required? |
Projects with total eligible costs > $400,000 |
Projects with total eligible costs > $200,000 |
|
Energy audit and energy assessment required? |
NO |
Required for all energy efficiency projects. Projects with total eligible cost > $50,000 require an energy audit. |
|
Business Level Feasibility study require? |
Projects with total eligible costs > $200,000 |
NO |
|
Technical Report Required? |
YES |
YES |
We encourage you to start planning your project now.
Two (2) copies of your application are to be submitted to the USDA Rural Development Area Office where your project is located or, in the case of a rural small business, where they are headquartered.
Selection is based on a nation-wide competition for funds. To qualify for consideration for funding, an application must meet the application requirements, technical requirements, and environmental requirements.
Separate applications must be submitted for renewable energy system and energy efficiency improvement projects. Only one application per each type of project may be submitted per year.
These are the types of projects Rural Development can consider:
|
|
Renewable Energy Projects |
Energy Efficiency Improvements Projects |
|
Categories of projects
(The project must be located in a rural area.) |
Biomass, Anaerobic Digester, Geothermal - electric generation, Geothermal - direct use, Hydrogen, Small and Large Wind, Small and Large Solar |
Energy Efficiency Improvements verified by an energy audit or assessment. |
What type of application should be submitted to the Alabama Rural Development State Office?
|
Application process |
Total eligible project costs |
|||
|
Simplified grant application criteria and procedures 4280.109 |
$200,000 or less |
|||
|
Applicant provides a certification of financial need |
$200,000 or less |
|||
|
Technical Report guidelines can be found in |
Appendix A to 4280-B |
|||
|
|
|
|||
|
Full grant application criteria and procedures 4280.111 |
> $200,000 |
|||
|
Applicant has demonstrated financial need |
> $200,000 |
|||
|
Technical Report guidelines can be found in |
Appendix B to 4280-B |
|||
|
|
|
|||
|
Guaranteed loans - Reduced application and documentation 4280.128 |
= or < $600,000 |
|||
|
Guaranteed loans - Full application and documentation |
> $600,000 |
|||
|
|
|
|||
|
Guaranteed loan - Equity evidence by borrowers |
= or < $600,000 - not less than 15% of eligible project costs > $600,000 - not less than 25% of eligible project costs |
|||
|
|
|
|
||
|
Maximum percentage of guarantee |
= or < $600,000 |
85% |
||
|
|
> $600,000 & = or < $5 million |
80% |
||
|
|
> $5 million & = or < $10 million |
70% |
||
|
Guaranteed loan - Appraisal |
= or < $600,000 complete self-contained appraisal > $600,000 complete summary appraisal |
|||
Program information
|
|
Grant |
Guaranteed Loan |
Combination Grant & Guaranteed Loan |
|
|
|
|
|
|
Who is the applicant? |
Agricultural producers or rural small business |
A lender is the applicant seeking a guarantee on a loan to an agricultural producer or a rural small business. |
2 applications needed. The grant application is from the agricultural producer or the rural small business. The lender submits an application for the guaranteed loan. |
|
|
Grant |
Guaranteed Loan |
Combination Grant & Guaranteed Loan |
|
|
|
|
|
|
What are eligible costs?
(All eligible projects must be located in a rural area and utilize a replicable pre-commercial or replicable commercially available and feasible technology.
The applicant must be the owner of the project and control the operation and maintenance of the proposed project.
Applicants must demonstrate the project has sufficient revenues to provide for operation and maintenance.) |
1. Post application purchased and installation of equipment (new, refurbished, or remanufactured), except agricultural tillage equipment, used equipment and vehicles. 2. Post application construction or project improvements, except residential. 3. Energy audits or assessments. 4. Permit and license fees. 5. Professional service fees, except for application preparation. 6. Feasibility studies and technical reports. 7. Business Plans. 8. Retrofitting. 9. Construction of a new energy efficient facility only when the facility is used for the same purpose; is approximately the same size; and based on the energy audit, will provide more energy savings than improving an existing facility. |
The same eligible costs as listed for a grant, with the addition of:
10. Working Capital. 11. Land Acquisition. |
Only the guaranteed portion can be used for working capital or land acquisition. |
Please see the attached page for local Area Office Listings. Please note that we are accepting applications year round. However, you should watch for the announcements in the energy website to determine the deadline for submissions. Any applications submitted past the deadline will be considered in the next fiscal year. You should contact your local area office for more information.
Also, the Iowa website has a step by step process to assist you in completing your application, please review it for more information at:
http://www.rurdev.usda.gov/ia/
Steve Pelham, State Director
USDA Rural Development
4121 Carmichael Road, Suite 601 á Montgomery, AL 36106-3683
334-279-3400 (phone) á 334-279-3403 (fax)
http://www.rurdev.usda.gov/al
Area 1: Calhoun, Cherokee, Clay, Cleburne, Colbert, DeKalb, Etowah, Franklin, Jackson, Lauderdale, Lawrence, Limestone, Madison, Marshall, Morgan, Randolph, St. Clair,
Talladega
Brian Yarbrough 256-544-5795
Area Director 256-544-2158 (fax)
4890 University Square, Suite 3-G
Huntsville, AL 35816 brian.yarbrough@al.usda.gov
Area 2: Autauga, Barbour, Bullock, Chambers, Coffee, Coosa, Crenshaw, Dale, Elmore,
Geneva, Henry, Houston, Lee, Macon, Montgomery, Pike, Russell, Tallapoosa
Ronnie Wyatt 334-793-7819
Area Director 334-793-2744 (fax)
205 W. Adams Street ronnie.wyatt@al.usda.gov
Dothan, AL 36303
Area 3: Bibb, Blount, Chilton, Cullman, Fayette, Greene, Hale, Jefferson, Lamar, Marion, Pickens, Shelby, Sumter, Tuscaloosa, Walker, Winston
Teresa St. John 205-553-1733 ext 5
Area Director 205-553-5100 (fax)
3831-B Palisades Drive teresa.st_john@al.usda.gov
Tuscaloosa, AL 35405
Area 4: Baldwin, Butler, Choctaw, Clarke, Conecuh, Covington, Dallas, Escambia, Lowndes, Marengo, Mobile, Monroe, Perry, Washington, Wilcox
Ricky Dawson 251-937-3297 ext 5
Area Director 251-937-4984 (fax)
207 Faulkner Drive, Suite 119 ricky.dawson@al.usda.gov
Bay Minette, AL 36507
Possible Packagers for Energy, Audits and/or Feasibility Studies