Michael Drewiske - Ethanol Producers & Consumers

Area Offices
• Bozeman / Helena
Tom Atkins
(406) 585-2530
Criag Hildreth & Clay Landry
• Billings
Gloria Hawkins
(406) 657-6297
Matt Holben
• Great Falls
(406) 727-7580
Lea McGiboney
• Kalispell
Lad Barney
(406) 756-2005
Eric Hanson
• Missoula
Kim Maines
(406) 829-3395
Dan Johnson & Heather Handeland
Rural Energy for America Program(REAP) Section
Guaranteed Loans
Energy Audit
Feasibility Study
Project development:
►Renewable Energy Systems
►Energy Efficiency Improvements
Renewable Energy System
• Defined:
System that either produces or produces and
delivers usable energy from a renewable
energy system, or is a flexible fuel pump.
Renewable Energy System Technology
 Bioenergy
 Anaerobic Digester
 Geothermal
 Hydrogen
 Hydropower
 Solar
 Wind
 Flex Fuel Pump
Energy Efficiency Improvements
• Defined:
Improvements to a facility, building, or
process that reduces:
* energy consumption, or
* energy consumed per square foot.
Energy Efficiency Improvement
Limited to improvements identified in an
energy audit or energy assessment
Similar in capacity
If greater capacity, total eligible cost of the
new equipment will be prorated based on
the capacity of the existing equipment
Grant Funding Limitation
25% of eligible project cost
Minimum / Maximum
• Renewable Energy
$2,500 to $500,000
• Energy Efficiency
$1,500 to $250,000
Application Limitation
Only One type of funding application for each
project can be submitted per Federal Fiscal
● Grant-only
● Guarantee loan-only
● Guarantee loan / Grant combination
Matching Funds
• New Rules removed restriction on third-party
in-kind matching contribution.
• Statute requires applicant to provide 75% of
eligible project costs.
► Other Federal Funds can be used
Applicant Eligibility
• Agricultural Producers
• Directly engaged in agricultural production
• 50% or greater of gross revenue
• Small Business
► SBA size standards by NAICS
► Private entity, sole proprietor, partnership, corporation, cooperative,
electric utility
► Tribal business enterprises formed as Sec. 17 Corporations
► Must operate independent of direct government control
Ineligible If:
• Outstanding judgment in Federal Court or
delinquent on federal debt
• Debarred from receiving Federal assistance
Project Eligibility
• Purchase of a renewable energy system or to make energy
efficiency improvements.
• Pre-commercial technology or commercially available, and
replicable technology.
• Technical merit.
• Applicant must be the owner.
• Sites must be controlled by the agricultural producer or small
• Revenues sufficient for operation, management maintenance,
and debt service.
• Place of business must be located in a state of the U.S.
Project Eligibility - Continued
• Small Business must be located in rural area
• Agricultural Producer
Project may be located in rural or non rural area
Projects must be for facilities directly related to agricultural
Integral components must be co-located with agricultural
• Greenhouse in nonrual area with adjacent
retail stand proposes to install install solar
panels to power both the greenhouse and
retail stand.
► Both facilities are eligible for REAP
Eligible Project Costs
► Post-application purchase and installation
► Post-application construction or improvement
► Energy Audits or Assessment
► Permits and Licenses
► Professional fees
► Feasibility Study and Technical Report
► Business Plan and Retrofitting
REAP Guarantee
Commercial Loan
Minimum loan: $5,000
Maximum loan: $25 Million
Rates: Negotiated
Percent of Loan Guarantee
• 85% Loan is less than $600,000
• 80% Loan is $600,000 to $5 Million
• 70% Loan is $5 Million to $10 Million
• 60% Loan over $10 Million
• State Allocation
• National Office Reserve
• 20% set aside for grants of $20,000
or less
Example: Combination REAP
Guaranteed Loan & Grant
• Eligible Project Costs:
• REAP guaranteed loan @ 50%:
• REAP grant @ 25%
• Owner contribution:
(IRP revolved funds, cash, loans)
• N.W.E. credit:
• Fed. Investment tax credit:
• Possible State tax credit
Example: Other Fed. Grant Funds
Eligible Project Costs:
REAP guaranteed loan @ 50%:
REAP grant @ 15%
NRCS grant @ 10%
Owner contribution:
(IRP revolved funds, cash, loans)
• N.W.E. credit:
• Fed. Investment tax credit:
• Possible State tax credit
Complete Mix
Fixed-Film Digester
Small Wind
Large Wind
• Derived from renewable biomass or water
using wind, solar, ocean (tide, wave, current
and thermal), geothermal or hydroelectric
energy sources.
Geothermal – electric generation
• Geothermal plants can operate around-the-clock,
which increases their value from a reliability point-ofview, unlike some intermittent renewable fuels such
as solar and wind.
• Geothermal electricity generation technologies consist
of either "flash" technology or "binary" technology.
With flash technology, water from 300 to 700 degrees
Fahrenheit, but still in liquid form, is piped from its
highly pressurized underground reservoir into a
geothermal facility. Once this super-heated water is
released, it flashes into steam that then drives a
conventional turbine generator.
Flex Fuel Pumps