USDA REAP Training Webinar A U G U S T 2 0 1 6 Photo credit: NWSEED NORTHWEST SEED
About Northwest SEED jill@nwseed.org mia@nwseed.org • Pierce, King, Thurston = free assistance ends Dec 2017 • All other WA Counties = free assistance ends Dec 2016 • OR Counties = free assistance ends May 2017 NORTHWEST SEED
Agenda • Intro to REAP and frequently asked questions • REAP application toolkit • Q&A Photo credit: NWSEED NORTHWEST SEED
USDA REAP Rural Energy for America Program Clean energy Who qualifies? Deadlines project funding Oct 31, 2016 Rural small Grant = 25% ($20,000 or less businesses grant requests) March 31, Agricultural 2017 Loan = 75% producers (all projects) NORTHWEST SEED
USDA Rural Development Contacts Carlotta M. Donisi 1835 Black Lake Blvd SW, Suite C, Olympia, WA 98512 360-704-7724 Carlotta.Donisi@wa.usda.gov Brandon Hoffman 2021 E College Way, Mt Vernon, WA 98273 360-428-4322 Ext 161 Brandon.Hoffman@wa.usda.gov Roni Baer 1606 Perry Street Suite D, Yakima WA 98902 509.454.5743 Ext 134 veronica.baer@wa.usda.gov USDA REAP Website: http://www.rd.usda.gov/programs-services/rural-energy-america- program-renewable-energy-systems-energy-efficiency NORTHWEST SEED
Timeline • Notify your USDA representative that your client is interested in applying • Submit the completed application form, accepted year-round • Within 10 days, receive an “eligible applicant letter” from USDA that confirms receipt of your application • Begin construction and/or make progress payments if desired • Receive notification of award 1-2 months after deadline, more paperwork • Complete construction within 2 years of award notification • Submit receipts and other paperwork provided by USDA • Within 1 month of completed documentation, receive grant check • Awardee will receive an IRS Form 1099 (taxable income) • USDA will follow up for 3 years to get annual kWh production/ savings NORTHWEST SEED
What is a rural small business? • Rural = both the project and the business headquarters are located in a rural area, population of 50,000 or less (eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=rbs) NORTHWEST SEED
What is a rural small business? • Business = must fit into one of the NAICS categories and should be able to provide 3 years of business taxes • www. census.gov/eos/www/naics/index.html • www.naics.com/search NORTHWEST SEED
What is a rural small business? • Small = meets Small Business Association criteria (sba.gov/tools/size- standards-tool) NORTHWEST SEED
What is an agricultural producer? • 51% of GROSS household income is derived from agricultural sales • Household income includes off-farm jobs, retirement pension • Agricultural sales are gross, not net • Agricultural producers do NOT need to be rural • Agricultural producers might be able to apply as a rural small business ����� ������������ ����� % = ����� ������������ ����� + ����� ��� ���� ������ NORTHWEST SEED
Residences are not eligible • For properties with a farm house or home-based business, need to prove that the renewable energy system (and REAP dollars) will only be benefitting the farm/business, not the residence. • A second meter may need to be installed • The grant amount may be reduced NORTHWEST SEED
Step 1: Will a second meter be required? Will the proposed system be connected to a meter that is also connected to a residence? YES No Will the business use 51% or more of the renewable energy OK. No additional meter or generated by the proposed paperwork required. system? YES No No additional meter required. The applicant must install a second meter (or similar device) for Provide documentation of the the business and renewable energy system or otherwise certify amount of renewable energy that excess renewable energy generated will be sold to the grid to be produced and how much an not used for residential purposes. The additional meter is an energy the business uses eligible project cost. annually. NORTHWEST SEED
Step 2: Will the grant amount be reduced? Will the business use 100% of the renewable energy produced? YES No Calculate and document OK. Provide documentation the percent of renewable that the business use is energy that will be used by equal to or greater than the the business. The eligible expected energy REAP grant amount will be production. reduced proportionally. NORTHWEST SEED
Additional review required • Historic buildings (over 50 years old) need additional review so contact USDA immediately and plan to submit your application at least 30 days in advance. • Ground disturbance (e.g., ground-mounted solar or wind turbine project) requires environmental review. Contact USDA immediately and plan to submit your application at least 30 days in advance. • If the applicant entity is at least 20% owned by a veteran or owned by a member of a socially-disadvantaged group then the applicant may qualify for additional points. Contact USDA for more information. NORTHWEST SEED
Other FAQ • A single entity can only apply once per fiscal year per technology. Renewable energy and energy efficiency are considered different technologies. Solar and wind are considered the same “technology” (i.e., renewable). • A single grant application can cover two different locations of the same business entity (for example, a grocery store can apply for energy efficiency improvements at two store locations in different rural cities). • The applicant does not have to own the property but the lease must last at least as long as the expected simple payback period and is preferable for the lease to last at through the life expectancy of the equipment that is installed. • Any installation work that is done by the project owner is NOT an eligible project cost. • Any structural or electrical upgrades that are required in order for the proposed equipment to function can be considered an eligible project expense. Documentation must be provided that the upgrades are required. • The REAP grant is taxable income and therefore should not reduce the eligible federal tax credit amount for renewable energy systems. • Used equipment is not encouraged. Refurbished equipment must come with a warranty that extends beyond the expected simple payback period. NORTHWEST SEED
REAP Application USDA REAP Website: http://www.rd.usda.gov/programs-services/rural-energy-america- program-renewable-energy-systems-energy-efficiency NORTHWEST SEED
REAP Toolkit • Example completed REAP application forms • Small (total project cost of $80,000 or less) • Medium ($80,001 to $199,999) • Requires additional documentation if the equipment is not certified • Additional description of construction schedule and equipment • Large ($200,000 or more) • Need to include additional financial documents for the business • Additional description of permit requirements • More detailed construction schedule • Description of operations and maintenance plan • Requires a feasibility study by an independent, qualified entity NORTHWEST SEED
Electric Use Calculator NORTHWEST SEED
Final tips • Have the applicant start the DUNS and CAGE code registration process early. If the applicant has received USDA or NRCS funding in the past, they may already have a CAGE code. • The applicant doesn’t need to provide their entire tax returns, just the few pages that support the gross income numbers on the application. • Even if the site obviously does not have any shade, take a SunEye or Solar Pathfinder measurement during the site visit anyway for REAP documentation. Take photos of the site also. Otherwise, you may lose points for lack of documentation. • Include a PVWatts report or similar industry-standard software as documentation of the energy production estimate. • If some project costs are unknown at the time of application (e.g., permitting fees, structural upgrade requirements, etc), include a reasonable amount of contingency in your budget to make sure that your REAP grant is sufficient. It’s hard to ask for more funding later. NORTHWEST SEED
For more information • To receive a copy of the REAP Toolkit, email • jill@nwseed.org • mia@nwseed.org • If you are interested in technical assistance, fill out an intake form: • Pierce, King, Thurston - www.piercecd.org/373/Renewable-Energy- Efficiency-Assistance • All other WA and OR Counties - www.nwseed.org/intake-form NORTHWEST SEED
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