USDA Rural Development

Transcription

1 USDA Rural Development Striving to improve the economy and quality of life in all of rural Minnesota Waste-to Energy Workshop May 24, 2011 Lisa Noty

2 Agency Background

3 Rural Development Food, Conservation, and Energy Act 2008 Energy Title Programs with Mandatory Funding

4 RD Energy Programs Biorefinery Assistance Program Advanced Biofuel Payment Program Rural Energy for America Program

5 Biorefinery Assistance Program (9003) Guaranteed loan program for the development and construction of commercial-scale biorefineries and for the retrofitting of existing facilities using eligible technology for the development of advanced biofuels.

6 Biorefinery Assistance Program (9003) Biorefinery A facility that converts renewable biomass into biofuels and biobased products and may produce electricity. Energy must be sold.

7 Biorefinery Assistance Program (9003) Advanced biofuel Fuel derived from renewable biomass, other than corn kernel starch including: (i) biofuel derived from cellulose, hemicellulose, or lignin (ii) biofuel derived from waste material (crop residue, veg waste material, animal waste, food waste, and yard waste)

8 Biorefinery Assistance Program (9003) Advanced biofuel cont (iii) Diesel-equivalent fuel derived from renewable biomass (iv) Biogas produced through the conversion of organic matter from renewable biomass (v) Butanol or other alcohols produced through conversion of organic matter from renewable biomass (vi) Other fuel derived from cellulosic biomass

9 Biorefinery Assistance Program (9003) Eligible technology (i) technology that is being adopted in a viable commercial-scale operation of a biorefinery that produces an advanced biofuel or (ii) technology that has been demonstrated to have technical and economic potential for commercial application in a biorefinery that produces an advanced biofuel

10 Biorefinery Assistance Program (9003) Guaranteed Loans 2011 Funding level $129 million Application deadline May 10

11 Advanced Biofuel Payment Program (9005) Purpose To support and ensure the expanding production of Advanced Biofuels by providing payments to Eligible Advanced Biofuel Producers

12 Advanced Biofuel Payment Program (9005) Advanced Biofuel Producer An individual, corporation, company, foundation, association, labor organization, firm, partnership, society, joint stock company, group of organizations or non-profit entity that produces and sells advanced biofuels

13 Advanced Biofuel Payment Program (9005) Payment Amounts fiscal year 2010 $80 million 80% Allocated in Base Payments $16 MM per quarter 20% Allocated to Incremental payments, $16 MM one-time payment made at the end of the fiscal year

14 Advanced Biofuel Payment Program (9005) Most recent Base Payment $ per BTU

15 Rural Energy for America Program (REAP)

16 Rural Energy for America Program (REAP) 1. Energy audits and Renewable Energy Development Assistance 2.Feasibility Studies 3. Renewable Energy Systems and Energy Efficiency Improvements

17 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

18 Feasibility Studies Purpose conduct Feasibility Studies for renewable energy systems. Typically include: Economic Feasibility, Market Feasibility, Technical Feasibility, Financial Feasibility, Management Feasibility, and Qualifications

19 Feasibility Studies Applicant eligibility 1) small businesses located in non-metropolitan area or ag producer, 2) be the owner of RES,

20 Feasibility Studies Details 1) $3 million available in ) MN received 3 applications submitted 1 3) maximum grant $50,000 or 25% 4) 2 years to complete Examples - large wind turbines, biomass system to heat turkey barns, biomass in ethanol plant, geothermal system in greenhouse

21 Renewable Energy or Energy Efficiency Improvement Systems Purpose - Provide financial assistance to agriculture producers and rural small businesses to purchase and install renewable energy systems and make energy efficiency improvements

22 Renewable Energy or Energy Efficiency Improvement Systems Types of Assistance Grant Guaranteed Loans Loan/Grant Combinations

23 Eligible Applicants cont. Rural Area Small business projects must be located in nonmetropolitan area - population <50,000 and rural in nature Ag Producers can be located anywhere in the state

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

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

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

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

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

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

30 Program Limitations Residential Use Vehicle Use Used equipment

31 Details Maximum grant assistance 25% of project costs renewable energy $500,000 energy efficiency $250,000 Maximum guarantee 75% of project costs up to $25 million* Minimum grant renewable energy $2500 (system $10,000) energy efficiency $1500 (system $6000) *maximum REAP benefit is 75% of TPC

32 Details Mandatory Set Aside - Grant requests of $20,000 or less - $21 million Funding Level (2011): Farm Bill $70 MM Appropriations $5 MM

33 Types of Grant Applications Simplified Application Full Application

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

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

36 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

37 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

38 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

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

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

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

42 6. Small Ag Producer/Very Small Rural Business Ag Producer < $600,000 gross sales 5 pts <$200,000 gross sales OR Very Small Rural Business (<15 empl AND < $1M in annl receipts) 10 pts

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

44 8. Previous Grantees and Borrowers No loans or grants under this program within last 2 years 5 pts

45 9. Simple Payback Renewable energy Systems < 10 yrs 15 pts 10 yrs but < 15 yrs 10 pts 15 yrs up to and including 20 yrs 5 pts Energy Efficiency <4 yrs 15 pts 4 yrs but < 8 yrs 10 pts 8 yrs up to and including 12 yrs 5 pts

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

47 Minnesota Projects

48 Biomass

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57 Small Wind

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63 Large Wind

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66 Geothermal

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68 Dennis Klarenbeek st Luverne

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70 Small Solar

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74 Energy Efficiency

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89 2010 Applications (received) 438 Applications Small Solar (8) Large Solar (2) Biomass (4) Anaerobic Dig (2) Geothermal (25) Small Wind (13) Large Wind (39) Energy Efficiency (342)

90 Challenges Part of planning process (capital replacement) Competitive environment Shortage of energy auditors Assistance with grant preparation

91 2011 Changes Increase diversity of projects Flex Fuel Systems/Blender pumps

92 Other incentives DSIREUSA.ORG

93 Additional Information Lisa Noty x120