Rural Development Rural Energy for America Program REAP Clean Energy Ambassadors Webinar September 23, 2014 Kelley Messenger, Acting Energy Coordinator/Business Programs Specialist

Eligible Applicants Agricultural Producer Agricultural Producers & Small Rural Small Businesses Can Apply AGRICULTURAL PRODUCERS - 50% of GROSS Income is derived from ag operations (previous year tax return – Schedule F) - Must own & operate system for its useful life Individual or entity that receives 51 percent or more of their gross income from agricultural production – crops, livestock, aquaculture, forestry operations, nurseries, dairies OWN & FARM the Land – can apply for whole project. TENANT – Equipment only (unless 20 year lease or evidence will own the ground) LANDLORD – Crop Share Rent AND actively engaged in the farming (must help plant and/or harvest)

Energy Efficiency-Energy Savings per Audit or Assessment –Project MUST save energy (BTU savings) to be eligible USDA partners with Public Power District (Nebraska Public Power District) in getting energy audits completed –Shows percentage of energy to be saved by completing the project –Shows annual dollar amount to be saved by ag producer by completing the project What Projects are Eligible?

Eligible Project Costs  Ineligible Project Costs Equipment: Purchase & installation New, refurbished, or remanufactured equipment Post-application construction & facility improvements Professional service fees Energy audits & assessments Feasibility studies & technical reports Business plans Permits & license fees Retrofitting Working capital, land acquisition (Guarantee ONLY) Residential energy projects Equipment: Farm tillage equipment Used equipment Vehicles Pre-application construction & facility improvements Application preparation or grant writer fees Line of credit Lease payments Payment to the applicant/business owner, beneficiary, or relative

REAP Grant Assistance Energy Efficiency Improvements Minimum Grant Request $1,500 Total eligible project costs > $6,000 Minimum Loan Amount $5,000 Total eligible project costs > $6,667 Maximum Grant Request $250,000 Total eligible project costs > $1 million Maximum Loan Amount $25 Million Total eligible project costs > $33.4million Up to 25% of Eligible Project Costs REAP Guaranteed Loan Assistance Up to 75% of Eligible Project Costs

Diesel to Electric Irrigation – Plainview, NE ENERGY EFFICIENCY EXAMPLES 2 Diesel engine to electric motor conversions TPC $41,400 Grant $10,350 Annual Savings $19, year payback 65.54% energy savings

Gravity irrigation converted to Sub-Surface Drip Tape Irrigation (SDI), and a well rebowl TPC $89,502 Grant $22,421 Annual Savings $ year payback 47.13% energy savings Gravity to Sub-Surface Drip Tape Irrigation – Lexington NE ENERGY EFFICIENCY EXAMPLES

Gravity to Pivot Irrigation – Broken Bow NE Gravity Irrigation converted to Pivot Irrigation, and a well rebowl TPC $104,682 Grant $26,171 Annual Savings $3, year payback 37.43% energy savings ENERGY EFFICIENCY EXAMPLES

Grain Dryer Replacement – Dawson County, NE Replaced old grain dryer system with new Tower Grain Drying system TPC $166,700 Guaranteed Loan $83,350 Grant $41,675 Annual Savings $23, year payback 45.09% energy savings ENERGY EFFICIENCY EXAMPLES

* $4,099 REAP Grant * $12,295 Leveraged funding * The project replaced 2 mechanical windmills with Solar Powered Submersible Pumps for cattle watering. Marlene Trampe - Kearney, Nebraska RENEWABLE ENERGY EXAMPLES

* $17,507 REAP Grant * $54,522 Borrower Contribution * Rural Development funds were used to install a 25Kw photo- voltaic solar system near an existing center pivot to replace the irrigation system’s existing energy source. * Will produce 39,894 Kwh annually. T&K Five Star Cattle Company, Inc - Lindsay, Nebraska Insert Photo Here RENEWABLE ENERGY EXAMPLES

MCGFF, LLC - Osceola, NE $19,750 RD funding $75,250 Leveraged funding REAP funds were used to install a 25KW wind turbine to provide electricity to operate a farm irrigation system Jobs retained – 1 RENEWABLE ENERGY EXAMPLES

REAP Funding Farm Bill authorized $50 Million/Year Applications Accepted year-round Next round of funding will be made available Oct/Nov. How to Apply Contact the USDA Rural Development Energy Coordinator in your state for application materials and resources: CoordinatorList.html Submit applications any time of year. Applications compete for funding based score. Funding selections are made at least once per year.