rural energy for america program (reap) energy efficiency...
TRANSCRIPT
Rural Energy for America Program (REAP)
Energy Efficiency & Conservation Loan Program (EECLP)
and the Rural Energy Savings Program (RESP)
Program Overview
Presented by: Bob Coates
• REAP, EECLP and RESP• Loan Purpose and Authority• Eligibility• REAP vs EECLP vs RESP - Overview• Environmental Review• EECLP Information• RESP information• REAP Information
Agenda
Loan Purpose and Authority
Rural Energy for America Program (REAP) (Loan and Grant Program)
• Provides guaranteed loan financing and grant funding to ag producers and small businesses to purchase or install renewable energy systems or make energy efficiency improvements
• Governed By 2014 Farm Bill• 7 CFR 4280 Subpart B
Rural Energy Savings Program (RESP) (Direct RUS Loan)
• Help rural families and small businesses achieve cost savings through loans that would enable them to implement durable cost-effective energy efficiency measures.
• Governed By 2014 Farm Bill
Loan Purpose and Authority
Energy Efficiency & Conservation Loan Program (EECLP) (FFB Guarantee)
• Finance DSM, EEC, on-grid/off-grid renewables that will result in • the better management of the utility
system load growth• more beneficial load profile• greater optimization of the use of
alternative energy resources
• Rural Electrification Act of 1936 as amended in 2008• 7 CFR Subpart H
Eligibility
REAP
• Agricultural producers in rural and non-rural areas
• Businesses in an area other than a city or town of greater than 50,000 and the urbanized areas of that city or town.
RESP• any public power district, public
utility district, or similar entity, or any electric cooperative that borrowed and repaid, prepaid, or is paying an electric loan made or guaranteed by RUS;
• any entity primarily owned or controlled by 1 or more entities described before; or
• any other entity that is an eligible borrower of RUS, as determined by 7 CFR 1710.101.
Eligibility
EECLP
• A utility system that has direct or indirect responsibility for providing retail electric service to persons in a rural area. • Including existing borrowers &
utilities who meet RUS borrower requirements
REAP and RESP Overview
REAP - RESP- $45M in FY17
Eligibility Agriculture and Small business in rural areasNot limited to utilities but they have to serve rural areas (E.g. subsidiaries of utilities)
PurposeProvides funding for renewable energy systems or to make energy efficiency improvements
To help rural families & rural small businesses reduce energy costs or consumption
Interest RateNegotiated with Lender, subject to USDA approval
0%
Maximum Loan sizeLoan- up to $25 MillionGrants up to $250k Renewable/$500k Energy Efficiency
Not specified
Mark-up to end user N/A Capped at 3%
Loan term Varies by purpose, up to 30 years for Real Estate Up to 20 years
Acceptable financial structures/ investments
Loan Guarantee up to 75%, grants up to 25% of total eligible project costs, combined to 75%
Only for re-lending like in tariff charge, PACE programs, traditional consumer loans (on bill financing)
EECLP Overview
EECLP- $Billions
Eligibility Utilities in rural areas
PurposeTo help utilities manage their system load growth or a more beneficial load profile
Interest Rate US treasury rate + 1/8th %
Interest Rate to Borrower
US treasury rate +borrowers interest rate from RUS +1.5%
Mark-up to end userCapped at 1.5% above costs, waived on case by case basis (See 7 CFR 1710.405)
Advances Reimbursable
Loan term 15 years or useful life of equipment
Acceptable financial structures/ investments
On bill, on bill-tariff based structures, direct investments in the utility’s system
RUS Cushion of Credit Account
Available
Commitments:
1. Prior to re-lending, the RUS borrower willa. Conduct a screening of the consumer’s proposed use of funds to determine if they fall within the
Categorical Exclusions.b. Obtain sufficient information from the consumer to determine applicability of the Cat. Ex. or to
evaluate an Environmental Report and determine if extraordinary circumstances exist. c. Document conclusions regarding the applicability of the Cat. Ex for each approved loan.d. Refer to RUS for further environmental review:
i) Activities that do not meet the criteria for Cat Ex.ii) Consumer applications with extraordinary circumstances; iii) Consumer applications that may be in violation of 7 CFR § 1970.12, Limitations on actions
during the NEPA process. Note: WEP staff will be assisting the RESP Applicant during this process.Attachments to the Agreement will provide guidance.
Environmental Compliance Agreement-Applicable to RESP and EECLP
Air Flow Efficiency - Interior - Add/Replace
Some Activities Listed as Cat Ex
Cooling System - Interior - Add/Replace
▪ Air Destratification
▪ Airflow and fan speed reduction
▪ Ductwork system with centrifugal or vane axial fans
▪ Enclosed high-velocity fan
▪ Improve design and balance of duct system
▪ Increase pipe insulation
▪ Install local ventilation and makeup air hoods
▪ Open propeller fans
▪ Reduce Ventilation Loads
▪ Reduce ventilation rate to minimum
▪ Variable-air-volume (VAV) system to reduce fan energy use
▪ Multiple Compressors and Controls for Air Conditioning
▪ Systems
▪ Optimize cooling tower flow controls
▪ Parallel unequal reciprocating compressor
▪ Reciprocating compressor
▪ Rotary compressor
▪ Screw compressor
▪ Use multiple chillers and optimization controls
▪ Improve Cooling Efficiency
▪ Increase chilled water design temperature
▪ Increase Condensing Efficiency
▪ Increase Condensing Unit Efficiency
▪ Install Double-Bundle Chillers
▪ Install High-Efficiency Compressor
▪ Install More Efficient Cooling System
▪ Install Refrigerated Space Doors or Curtains
▪ Lower condenser water design temperature
• Program launched in June 2016.• 9 Loans Obligated
• Brand new program- working out the bugs now
• Details for latest round for 2017:
• Announced in the Federal Register on November 20, 2017
• Five Letters of Intent Received as of January 19, 2018
• Letters currently under review
• Expect another open application period soon
RESP- Highlights
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RESP Loan Conditions
• 20 Year Maximum Loan Term
• 10 Year Draw Period
• Up to 4% for startup
• Must start repayment at 10 years
• Rurality
• ATTACHED to a dwelling/building/property
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RESP Eligible Activities (NOSA Section E(d))
i. Lighting Improvements (Residential and commercial)ii. HVAC Systemsiii. Building Envelope Improvementsiv. Water Heatersv. Compressed Air Systemsvi. Motorsvii. Boilers, Dryers, Heaters and process related equipmentviii. Energy Auditsix. On or Off Grid Renewable Energy Systemsx. Energy Storage Devicesxi. Energy Efficient Appliance Upgradesxii. Irrigation or Water and Waste Disposal System Efficiency Improvementsxiii. Other Activities and investments directly related to Energy Efficiency
Implementation
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2017 RESP Forecast
• Approximately $45 Million available Loan Funds
• Five Letters of Intent Submitted by January 19, 2018
• Total Requests Thus Far $15,500,000
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RESP Future Adjustments/Improvements
• Allowance to replace manufactured homes
• Autos (electric, fuel cell, hydrogen?)
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Custom Loan Options
• Partial Improvement Contributions• Energy efficient improvements/enhancements on new dwellings
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Issues/Concerns
• Energy Star program may go away
Rural Business-Cooperative Service
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Agricultural Producer Rural Small Business
• Individual or entity that receives 51 percent or more of their gross income from agricultural production– crops, livestock, aquaculture, forestry operations, nurseries, dairies
• For-profit small business - as defined
by the Small Business Administration (SBA)
• Rural area or non-metro community of < 50,000
Rural Energy for America Program (REAP)
REAP Applicants and Borrowers
Rural Business-Cooperative Service
Rural Energy for America Program (REAP)
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Energy Efficiency Renewable Energy
Lighting Solar
Heat & Power Wind
Refrigeration Small Hydroelectric
HVAC Anaerobic Digesters
Equipment and Processes
Biomass
Automated Controls Geothermal
Buildings Updates Wave/Ocean Power
The technology must be commercially available. Research and development projects do not qualify.
Rural Business-Cooperative Service
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Renewable Energy Systems Energy Efficiency Improvements
Grant amount cannot exceed 25% of Eligible Project Cost
Minimum Grant Request$2,500Total eligible project costs > $10,000
Minimum Grant Request$1,500Total eligible project costs > $6,000
Maximum Grant Request $500,000Total eligible project costs > $2 million
Maximum Grant Request $250,000Total eligible project costs > $1 million
Minimum Loan Amount$5,000Total eligible project costs > $6,667
Maximum Loan Amount$25 millionTotal eligible project costs > $33.4 million
Details • USDA guarantees a commercial loan; applicant must have a willing lender.• Terms are negotiated between the lender and borrower.
• Applications accepted year round
• Loan and Grant combo ≤ 75% of project cost
Loan amount (and combo loan and grant amount) cannot exceed 75% of eligible project cost
REAP Loan and Grant Terms
Rural Business-Cooperative Service
REAP Program Key Points:• Applicants must provide at least 75% of the project cost if applying
for a grant only.
• Applicants must provide at least 25% of the project cost if applying for loan, or loan and grant combination.
• Projects greater than $200,000 require a technical report.
• Energy efficiency projects require an energy audit or assessment.
• Must use commercially available technology
• Open ongoing guaranteed loan application process
• Competitive grant program 20
Rural Business-Cooperative Service
How do we get started?• Applications for this program are accepted year round at your local USDA Rural
Development office: https://www.rd.usda.gov/contact-us/state-offices
• Who can answer questions? Contact your Rural Development Energy Coordinator:https://www.rd.usda.gov/files/RBS_StateEnergyCoordinators.pdf
USDA Rural Development Resources:
http://www.rd.usda.gov
https://www.rd.usda.gov/programs-services/programs-services-businesses
http://www.usda.gov/energy/matrix/FindPrograms
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Mark Brodziski, Deputy Administrator Energy Programs202-205-0903 [email protected]
Contact Information :
Bob CoatesRural Development
Rural Utilities Service, Electric [email protected]
Office: (202) 260-5415www.rd.usda.gov