USDA REAP Training WebinarA U G U S T 2 0 1 6 Photo credit: NWSEEDNORTHWEST 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

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Agenda• Intro to REAP and frequently asked questions• REAP application toolkit• Q&A

Photo credit: NWSEED

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USDA REAP Rural Energy for America Program

Clean energy project funding

Grant = 25%

Loan = 75%

Who qualifies?

Rural small businesses

Agricultural producers

Deadlines

Oct 31, 2016($20,000 or less grant requests)

March 31, 2017

(all projects)

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USDA Rural Development ContactsCarlotta M. Donisi1835 Black Lake Blvd SW, Suite C, Olympia, WA 98512360-704-7724Carlotta.Donisi@wa.usda.gov

Brandon Hoffman2021 E College Way, Mt Vernon, WA 98273360-428-4322 Ext 161Brandon.Hoffman@wa.usda.gov

Roni Baer1606 Perry Street Suite D, Yakima WA 98902 509.454.5743 Ext 134veronica.baer@wa.usda.gov

USDA REAP Website:http://www.rd.usda.gov/programs-services/rural-energy-america-program-renewable-energy-systems-energy-efficiency

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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

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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)

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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

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What is a rural small business?• Small = meets Small Business Association criteria (sba.gov/tools/size-standards-tool)

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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

% = +

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Residences are not eligible

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• 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

Step 1: Will a second meter be required?

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Will the proposed system be connected to a meter that is

also connected to a residence?

Will the business use 51% or more of the renewable energy

generated by the proposed system?

No additional meter required. Provide documentation of the amount of renewable energy

to be produced and how much energy the business uses

annually.

The applicant must install a second meter (or similar device) for the business and renewable energy system or otherwise certify that excess renewable energy generated will be sold to the grid an not used for residential purposes. The additional meter is an

eligible project cost.

OK. No additional meter or paperwork required.

YES

YES

No

No

Step 2: Will the grant amount be reduced?

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Will the business use 100% of the renewable energy

produced?

OK. Provide documentation that the business use is

equal to or greater than the expected energy

production.

Calculate and document the percent of renewable

energy that will be used by the business. The eligible

REAP grant amount will be reduced proportionally.

YES No

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.

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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.

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REAP ApplicationUSDA REAP Website:http://www.rd.usda.gov/programs-services/rural-energy-america-program-renewable-energy-systems-energy-efficiency

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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

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Electric Use Calculator

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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.

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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

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