2. Agriculture Biofuel Summit October 19-20, 2010 USDA Rural Development Business Cooperative Programs John Guthmiller, Program Director 406-585-2540 john.guthmiller@mt.usda.gov

3. USDA Rural Development Matthew Jones State Director Business Coop Programs (BCP) John Guthmiller Rural Housing Programs (RHS) Deborah Chorlton Community Programs (CP) Steve Troendle

4. Business Cooperative Programs Business & Industry (B&I)Guaranteed Loan Rural Business Enterprise Grant (RBEG) Rural Business Opportunity Grant (RBOG) Rural Business Opportunity Grant (RBOG) Intermediary Relending Program (IRP) Rural Cooperative Development Grant (RCDG) Rural Cooperative Development Grant (RCDG) Rural Economic Development Loan & Grant (REDLG) Rural Economic Development Loan & Grant (REDLG) Value Added Producer Grant (VAPG) Renewable Energy for America Program (REAP)Grants & Guarantees Renewable Energy Audit (EA) Grants Energy Feasibility Study (FS) Grants Rural Microentrepreneur Assistance Program (RMAP)

6. Energy Programs Biorefinery Assistance Program (Section 9003) – Provides guarantees on loans up to $250 million to construct commercial scale biorefineries. – 2010 Application deadline is August 4, 2010 Repowering Assistance Program (Section 9004) – Provides payments to biorefineries to replace fossil fuel energy sources with renewable energy sources – 2010 Application deadline is July 20, 2010

7. Energy Programs (cont.) Bioenergy Program for Advanced Biofuels (Section 9005) – Provides payments to advanced biofuel producers (biomass conversion facilities) for producing advanced biofuels. – 2010 app deadline is July 6, 2010 for transportation fuels only Similar to FSA’s Biomass Crop Assistance Program (BCAP) (Section 9011) – Provides payments for collecting, harvesting, storing, transporting biomass to eligible advanced biomass conversion facilities. – http://www.fsa.usda.gov/FSA/webapp?area=home&subject=cops &topic=bcap http://www.fsa.usda.gov/FSA/webapp?area=home&subject=cops &topic=bcap

8. Energy Programs (cont.) Rural Energy Self-Sufficiency Initiative (Section 9009) – Provides grants for the purpose of enabling eligible rural communities to substantially increase their energy self sufficiency. – Rule to be published by Spring 2010.

9. Rural Energy for America Program (REAP) aka Section 9007 Grants Guaranteed Loans Project development: ► Renewable Energy Systems ► Energy Efficiency Improvements Energy Audit Grants Feasibility Study Grants

10. Renewable Energy System Technology  Bioenergy (Biomass)  Anaerobic Digestor  Geothermal – Electric Generation  Geothermal – Direct Use  Hydrogen  Solar  Wind  Hydropower

11. Energy Efficiency Improvements Defined: Improvements to a facility, building, or process that reduces energy consumption, or reduces energy consumed per square foot.

12. REAP Eligible Applicants Agricultural Producer – Directly engaged in agricultural production – 50% or greater of gross revenue from agriculture – Located in rural area less than 50,000 population Small Business – SBA size standards – Located in rural area less than 50,000 population – Must operate independent of direct government control

13. REAP Restrictions Residences cannot benefit from project – Separate meters Nonprofit corporations are not eligible Applicant must be the owner Maximum grant/loan combo cannot exceed 75% of eligible project cost Revenues sufficient for operation, management maintenance, and debt service.

14. REAP Guarantee Commercial Loan Minimum loan: $5,000 Maximum loan: $25 MM or 75% of project Rates & Terms: Negotiated Guarantee is 85% to $650,000 / 80%to $5 MM / 70% to $10 MM / 60% to $25 MM 1% Fee

15. REAP Grant Funding 25% of eligible project cost Renewable Energy System: Energy Efficiency Improvement: Minimum / Maximum $2,500 to $500,000 0r 25% $1,500 to $250,000 or 25%

16. 2010 REAP Funding State Allocation – Grants < $20,000 – $218,301 – Grants > $20,000 - $173,178 – Loan Guarantees - $1,858,870 National Office Reserve (priority order) – Loan Guarantee only – Loan Guarantee/Grant Combo – Grant only

17. Montana 2010 REAP Usage 4 small grants totaling $25,780 – $192,521 returned to the National Office 4 large grants totaling $577,587 – $404,409 received from the National Office 2 loan Guarantees totaling $10,200

18. Agricultural Biofuel Summit Important Websites: www.rurdev.usda.gov/mt www.farmenergy.org www.rurdev.usda.gov/ia Questions?