Renewable Energy and Energy Efficiency Program by 1AfH7A


									                       Renewable Energy and Energy Efficiency Program
                                      FACT SHEET

Per NOFA Published in the Federal Register March 28, 2005
Applications must be postmarked by Monday, June 27, 2005

Section 9006 – The Renewable Energy and Energy Efficiency Program, through USDA-
Rural Development, offers grants to help farmers, ranchers, and rural small businesses
purchase renewable energy systems and make energy efficiency improvements.

Who is eligible?
   Farmers, ranchers, and rural small businesses with a demonstrated financial need.
   Farmers and ranchers must directly engage in the production of agricultural
      products and obtain at least 50% of their gross income from their agriculture
   Rural small businesses must meet the definition of a small business according to
      SBA (Small Business Administration) standards and must be headquartered in a
      rural area. SBA small size standards can be found at
   A private entity including a sole proprietorship, partnership, corporation,
      cooperative (including a cooperative qualified under section 501(c) (12) of the
      Internal Revenue Code, and 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. These entities must operate independent of direct
      Government control.

Public or private non-profit entities are excluded, except as provided above.
A very small business is a business with fewer than 15 employees and less than $1
million in annual receipts.

How much assistance can be provided?

                                Renewable Energy Projects   Energy Efficiency Improvements
Description                     A process that PRODUCES     Improvements to a facility or process
                                energy from a renewable     that
                                energy source               REDUCE energy consumption
Minimum grant                   $ 2,500                     $ 2,500
(no more than 25% of total
eligible project costs)
Maximum grant                   $ 500,000                   $ 250,000
(no more than 25% of
total eligible project costs)
Energy assessment or            NO                          YES
energy audit required?
Feasibility study             For grant requests in excess       NO
required?                     of $50,000
Categories of projects        Biomass, Anaerobic                 Energy Efficiency Improvements
                              Digester, Geothermal –             verified by an energy audit or
                              electric generation,               assessment
                              Geothermal – direct use,
                              Hydrogen, Small and Large
                              Wind, Small and Large Solar

Grant requests of more than $50,000 require the services of a professional engineer
What are eligible costs?                                  1. Post application purchase and installation
                                                              of equipment, except agricultural tillage
                                                          2. equipment and vehicles.
All eligible projects must be located in a rural area and 3. Post application construction or project
utilize a replicable pre-commercial or replicable             improvements, except residential
commercially available, and feasible technology.
                                                          4. Energy audits or assessments
The applicant must be the owner of the project and        5. Permit fees
control the operation and                                 6. Professional service fees, except for
maintenance of the proposed project.                          application preparation.
                                                          7. Feasibility studies
Applicants must demonstrate the project has sufficient
revenues to provide for
                                                          8. Business Plans
operation and maintenance.                                9. Retrofitting
                                                          10. Construction of a new 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

Applications must be postmarked by Monday, June 27, 2005.

Two (2) copies of your application are to be submitted to the USDA Rural Development
333, Phillips Dr., McDonough, GA 30253

Selection is based on a nation-wide competition for funds. To qualify for consideration
for funding, an application must meet the application requirements, technical 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
The grant application will consist of 2 copies of:

1. Application documents, including
2. Score sheet and attached documentation, and
3. Technical report

You may decide you need assistance assembling your grant application. A possible grant
writing team could be composed of the following:

1. Someone to help prepare financial statements.
2. Someone to help prepare the technical report.
3. Someone to review your application for completeness.

Resources to Possibly Help File an Application

For a complete list of tools, forms, and links provided by Georgia Rural Development,
please go to: and click on Section 9006
Energy Program

Georgia Rural Development Business-Cooperative Specialists – Craig Scroggs, 678-583-
0866 e-mail

For a complete list of tools, forms, and links provided by the Rural Development
National Office, please go to:

Georgia Industrial Technology Partnership –
Phone: (706) 542-4493

University of Georgia Extension Service– E-mail
Phone: 706-542-9080

The Center for Emerging Crops -


Your local banker or your accountant

Georgia Small Business Development Centers

Georgia Agricultural Innovation Center

Resource Conservation and Development Districts (RC&D) Coordinators – for names
and locations, please go to:

Georgia Department of Natural Resources –
For help on Energy Audits – Contact your energy provider for interconnect or energy
audit information.

For Technical Report Guidelines –go to

For an Application Template – go to

When we review an application, we are looking for the answers to the following
1. Is the applicant eligible?
2. Is the project eligible?
3. Is the application complete?
4. Does the project meet funding requirements?
5. Did the technical report have technical merit (pass or fail)?
6. How did the application score (national competition)?


FY 2005 (the 3rd year of a 5 year program) will have $22.8 million available nationally
for the Section 9006 Energy Program.

In FY 2004 (the 2nd year of the program), $22.8 million was available nationally in
competitive grant funds,167 applications were approved for funding nationally, of the 3
applications received in Georgia, 1 was approved for funding.

In FY 2003 (the 1st year of the program), $21.23 million was available in competitive
grant funds,113 applications ere approved for funding nationally, of the 2 applications
received in Georgia, 0 were approved for funding.

Examples of Energy Projects Awarded Grants in Iowa in FY 2003 and FY 2004

Renewable Energy

Agricultural Producer - Install a factory made wood burning furnace that is located
outside. The furnace will heat water that will be pumped through insulated underground

Agricultural Producer - Installing a geothermal renewable energy system at a winery and

Agricultural Producer - Erect a Bonus 450 KW wind turbine in order to strengthen
farming operation through efficiency and diversity of operations and additional source of
Agricultural Producer - Installation of a 5,600,000 kW wind turbine on a farm.

Agricultural Producer - Installation of 10 kW wind turbine on a farm for farm electrical

Agricultural Producer - Manure processing project that generates own energy for drying
manure on a dairy farm.

Small Business Installation of a Cogeneration wood fired boiler system primarily to
create heat to operate the kilns and steamer and also produce electricity.

Small Business - Install hot water renewable fuel boiler along with solar PV electric and
solar thermal supplemental design for heating a greenhouse project.

Small Business - Provide electric power to headquarters facility with 2 wind turbines and
photovoltaic systems.

Small Business - Construct a wind turbine (67-1650KW) electric generation farm.

Small Business - Installation of wind turbines and solar PV array pumping system.

Small Business - Build a 12,000,000 gallon bio-diesel production plant.

Energy Efficiency

Agricultural Producer - Installation of an energy efficient grain drying bin.

Small Business - Install energy efficient equipment and lighting in a restaurant using a
Reverse Ambient Solar Energy Refrigeration System (RASERS).

Small Business - Install new boiler system and high efficiency dry kilns.

Small Business - Energy conservation and efficiency for office/warehouse for calibrated
day lighting controls, lighting controls, lighting design alternatives, conditioning of
outside air, and insulation.

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