Renewable Energy & Energy Efficiency Improvement Program

Transcription

1 Renewable Energy & Energy Efficiency Improvement Program

2 Purpose Provide financial assistance to agriculture producers and rural small businesses to purchase and install renewable energy systems and energy efficiency improvements

3 Grant Guaranteed Loans Loan/Grant Combinations

4 Eligible Applicants Ag Producers receive at least 50% of GI from farming operations Small Business- private entity that meets SBA s small business definition by NAICS typically gross sales or employees

5 Eligible Applicants cont. Financial Need Grant applicants certify or demonstrate financial need (depends on size of project)

6 Eligible Applicants cont. Rural Area Projects must be located in rural area Defined as population <50,000

7 Renewable Energy Systems 1. Bioenergy- systems that produce energy from a biomass source (corn/pellet burners, ethanol, biodiesel) 2. Anaerobic Digesters

8 Renewable Energy Systems 3. Geothermal direct use 4. Geothermal electric generation

9 Renewable Energy Systems 5. Hydrogen renewable energy system that produces hydrogen or a renewable energy system that uses hydrogen as an energy transport medium

10 Renewable Energy Systems 6. Solar (Small) < 10 kw 7. Solar (Large) > 10 kw

11 Renewable Energy Systems 8. Wind (Small) < 100 kw 9. Wind (Large) > 100 kw

12 Energy Efficiency Any type of improvement that decreases energy consumption. Energy savings is documented through an energy audit/assessment

13 Residential Use NO, NO, NO

14 Details Maximum grant assistance 25% of project costs renewable energy $500,000 energy efficiency $250,000 Maximum guarantee 50% of project costs up to $10 million Minimum grant renewable energy $2500 (system $10,000) energy efficiency $1500 (system $6000)

15 Types of Grant Applications Simplified Application Full Application

16 Simplified Application TPC < $200,000 technology is commercially available complete project in 24 months grant reimbursement after project is completed

17 Full Grant Application TPC >$200,000 Technology proven but may not be commercially available

18 Combination Loans & Grants Encouraged for larger projects~~better chance of competing successfully Pure grant applications are weighted more heavily for projects <$200,000 Evaluated for funding monthly instead of annually

19 Combo examples (2006) Anaerobic digester $500,000 grant and $1,065,850 guaranteed loan 2 MW wind turbine $280,000 grant and $250,000 guaranteed loan Biodiesel facility $500,000 and $2 million loan guarantee

20 Scoring Guidelines 1. Quantity of Energy Replaced, Produced, or Saved A. Energy Replacement (self use) >0 but < 25% 5 pts >25% < 50% 10 pts >50% 15 pts

21 B. Energy Savings (EE) 20% < 30% 5 pts 30% < 35% 10 pts >35% 15 pts ** Additional 5 points if TPC < $50,000 and obtained a professional energy audit C. Energy Generation production of energy for sale 10 pts

22 2. Environmental Benefits proposed system contributes to the environmental goals and objectives of other Federal, State, or local programs 10 pts. 3. Commercial Availability Currently comm available & replicable 5 pts. AND provided w/5 yr warranty 10 pts

23 4. Technical Merit Project Team Agreements & Permits Energy or Resource Assessment Design & Engineering Project Development Schedule Project Economic Assessment Equipment Procurement

24 4. Technical Merit (cont) Equipment Installation Operations & Maintenance Dismantling & disposal of project Total points possible under Technical Merit section = 35 points

25 5. Readiness (matching funds) 50% < 75% 5 pts 75% < 100% 10 pts 100% 15 pts

26 6. Small Ag Producer/Very Small Rural Business < $600,000 gross sales 5 pts <$200,000 gross sales OR very small rural business (<15 empl AND < $1M in annl recpts) 10 pts

27 7. Simplified Application (TPC < $200,000 & commercially available technology & complete w/i 24 months & grant reimbursement 5 pts

28 8. Previous Grantees and Borrowers No loans or grants under this program within last 2 years 9. Return on Investment 5 pts < 4 yrs 10 pts 4 yrs but < 8yrs 4 pts 8 yrs but < 11 yrs 2 pts

29 10. Loan Rate (Guaranteed only) < prime plus 1.5% 5 pts Prime + 1% 10 pts

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46 Applications Grocery Store (EE) Greenhouses (bioenergy & geothermal) Hotel renovation (EE) Irrigation Equipment (EE) Dairy operations Pellet manufacturing Restaurants

47 MN Success ~$18 million in grants during the 4 years program has been available Primarily in large wind but in 06 same number of large and small wind applications were funded

48 Additional Information Program website Minnesota Lisa Noty x120