USDA REAP Training Webinar A U G U S T 2 0 1 6 Photo credit: - - PowerPoint PPT Presentation

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USDA REAP Training Webinar A U G U S T 2 0 1 6 Photo credit: - - PowerPoint PPT Presentation

Sep 19, 2023 315 likes •549 views

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

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USDA REAP Training Webinar

A U G U S T 2 0 1 6 Photo credit: NWSEED

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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 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

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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
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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

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Step 2: Will the grant amount be reduced?

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Will the business use 100%

  • f 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

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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 Application

USDA 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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