1. USDA Rural Development - New Jersey Renewable Energy Grant Program USDA Rural Development Renewable Energy Systems & Energy Efficiency Improvement Program February 28, 2006 Bordentown, NJ

2. USDA Rural Development - New Jersey Renewable Energy Grant Program Renewable Energy Program Notice of Funding Availability (NOFA) – February 13, 2006Notice of Funding Availability (NOFA) – February 13, 2006 $11 million nationwide in competitive grant funds for FY2006$11 million nationwide in competitive grant funds for FY2006 $176 million in loan guarantees$176 million in loan guarantees Purchase renewable energy systemsPurchase renewable energy systems Make energy improvementsMake energy improvements

3. USDA Rural Development - New Jersey Renewable Energy Grant Program Applicant Eligibility Ag producers – 50% or greater of gross income derived from agricultural production; must be located in an eligible rural areaAg producers – 50% or greater of gross income derived from agricultural production; must be located in an eligible rural area Rural Small Businesses – must meet U.S. Small Business Administration definition; must be located in an eligible rural areaRural Small Businesses – must meet U.S. Small Business Administration definition; must be located in an eligible rural area Must use systems commercially available (have a proven operating history and an established design, installation, equipment and service industry)Must use systems commercially available (have a proven operating history and an established design, installation, equipment and service industry) Applicant must demonstrate that it is unable to finance the project from its own sources or other sources without grant assistanceApplicant must demonstrate that it is unable to finance the project from its own sources or other sources without grant assistance

4. USDA Rural Development - New Jersey Renewable Energy Grant Program Applicant Eligibility Must have financial feasibility (the ability to achieve the projected income and cash flow. The cost accounting system, the availability of short term credit for seasonal business and the adequacy of raw materials & supplies will be assessed.) Must have technical feasibilityMust have technical feasibility

5. USDA Rural Development - New Jersey Renewable Energy Grant Program Applicant Eligibility Individual applicants must be citizens of the U.S. or reside in the U.S. after being legally admitted for permanent residenceIndividual applicants must be citizens of the U.S. or reside in the U.S. after being legally admitted for permanent residence Entities must be at least 51 percent owned directly or indirectly by individuals who are either citizens of the U.S. or reside in the U.S. after being legally admitted for permanent residenceEntities must be at least 51 percent owned directly or indirectly by individuals who are either citizens of the U.S. or reside in the U.S. after being legally admitted for permanent residence For small businesses, the business’ headquarters must be in a rural area and the project funded also must be in a rural areaFor small businesses, the business’ headquarters must be in a rural area and the project funded also must be in a rural area

6. USDA Rural Development - New Jersey Renewable Energy Grant Program Project Eligibility Must be for renewable energy systems (“Renewable”) orMust be for renewable energy systems (“Renewable”) or Efficiency improvements (“Efficiency”)Efficiency improvements (“Efficiency”) Project must be located in a rural area.Project must be located in a rural area. Not for research and developmentNot for research and development Applicant must own and control the proposed projectApplicant must own and control the proposed project

7. USDA Rural Development - New Jersey Renewable Energy Grant Program Rural Area Rural Area Definition - Any area other than a city or town with a population of greater than 50,000 and the urbanized area contiguous and adjacent to such city or town.Rural Area Definition - Any area other than a city or town with a population of greater than 50,000 and the urbanized area contiguous and adjacent to such city or town. Go to http://maps.ers.usdagov/loanlookup/ for assistance in determining rural area eligibility. This office will make the “official” determination.Go to http://maps.ers.usdagov/loanlookup/ for assistance in determining rural area eligibility. This office will make the “official” determination. http://maps.ers.usdagov/loanlookup/

8. USDA Rural Development - New Jersey Renewable Energy Grant Program Maximum Grant USDA Grant will not exceed 25% of eligible project costsUSDA Grant will not exceed 25% of eligible project costs “Renewable” grants – not less than $2,500 but no more than $500,000“Renewable” grants – not less than $2,500 but no more than $500,000 “Efficiency” grants – not less than $1,500 but no more than $250,000“Efficiency” grants – not less than $1,500 but no more than $250,000 Applicant must provide 75% balance of funds for project (leverage requirement)Applicant must provide 75% balance of funds for project (leverage requirement) In-kind contributions & other Federal grants do not count towards leverage requirementIn-kind contributions & other Federal grants do not count towards leverage requirement

9. USDA Rural Development - New Jersey Renewable Energy Grant Program Eligible Project Costs Purchase & installation of equipmentPurchase & installation of equipment Construction & ImprovementsConstruction & Improvements Energy AuditsEnergy Audits Permit feesPermit fees Professional service feesProfessional service fees Feasibility studiesFeasibility studies Business PlansBusiness Plans RetrofittingRetrofitting

10. USDA Rural Development - New Jersey Renewable Energy Grant Program Energy Audit Energy Audit – written by an independent qualified entity, documents current energy usage, recommends improvements and their costs, projects savings and shows the average payback period in yearsEnergy Audit – written by an independent qualified entity, documents current energy usage, recommends improvements and their costs, projects savings and shows the average payback period in years

11. USDA Rural Development - New Jersey Renewable Energy Grant Program Ineligible Project Costs Land AcquisitionLand Acquisition Capital leasesCapital leases Working capitalWorking capital Residential improvementsResidential improvements Agricultural tillage equipmentAgricultural tillage equipment VehiclesVehicles Grant application preparationGrant application preparation Waste CollectionWaste Collection

12. USDA Rural Development - New Jersey Renewable Energy Grant Program Ineligible Project Costs Funding of political or lobbying activitiesFunding of political or lobbying activities O & M, repairs, or fuel costsO & M, repairs, or fuel costs Production, collection, & transportation of energy inputsProduction, collection, & transportation of energy inputs Construction of a new facility, unless it is a similar replacement with net energy savingsConstruction of a new facility, unless it is a similar replacement with net energy savings Costs incurred prior to application being submitted to RD except for predevelopment costsCosts incurred prior to application being submitted to RD except for predevelopment costs

13. USDA Rural Development - New Jersey Renewable Energy Grant Program Evaluation Criteria Quantity of energy replaced, produced or saved Quantity of energy replaced, produced or saved Environmental BenefitsEnvironmental Benefits Commercial AvailabilityCommercial Availability Technical MeritTechnical Merit ReadinessReadiness Small Ag Producer/Very Small BusinessSmall Ag Producer/Very Small Business Low Cost Projects ($200,000 or less)Low Cost Projects ($200,000 or less) Previous GranteesPrevious Grantees Return on InvestmentReturn on Investment

14. USDA Rural Development - New Jersey Renewable Energy Grant Program Technical Merit Points Qualifications of the Project TeamQualifications of the Project Team Agreements and PermitsAgreements and Permits Energy or Resource AssessmentEnergy or Resource Assessment Design and EngineeringDesign and Engineering Project Development ScheduleProject Development Schedule Project Economic AssessmentProject Economic Assessment Equipment ProcurementEquipment Procurement Equipment InstallationEquipment Installation Operation and MaintenanceOperation and Maintenance Dismantling and Disposal of Project ComponentsDismantling and Disposal of Project Components

15. USDA Rural Development - New Jersey Renewable Energy Grant Program Applications You must submit a separate application for “Renewable” and “Efficiency” projectsYou must submit a separate application for “Renewable” and “Efficiency” projects Only one application per applicant for eachOnly one application per applicant for each The technical report is to be submitted in an original and one copyThe technical report is to be submitted in an original and one copy The maximum amount of grant assistance to any one entity can not exceed $750,000The maximum amount of grant assistance to any one entity can not exceed $750,000 Application content per RD Instruction 4280-BApplication content per RD Instruction 4280-B Also see our website at: http://www.rurdev.usda.gov/nj/rbs.htmlAlso see our website at: http://www.rurdev.usda.gov/nj/rbs.html

16. USDA Rural Development - New Jersey Renewable Energy Grant Program Applications Submit a complete application no later than close of business, May 12, 2006 to: USDA Rural Development USDA Rural Development Attn: Business & Community Programs Attn: Business & Community Programs 5 th Floor North, Suite 500 8000 Midlantic Drive Mt. Laurel, NJ 08054 5 th Floor North, Suite 500 8000 Midlantic Drive Mt. Laurel, NJ 08054 TEL 856-787-7750 FAX 856-787-7757 TEL 856-787-7750 FAX 856-787-7757 E-mail: victoria.fekete@nj.usda.gov E-mail: victoria.fekete@nj.usda.gov

17. USDA Rural Development - New Jersey Renewable Energy Grant Program