The Connecticut Farm Energy Program provides technical assistance in the form of grant writing to eligible Ag producers & Ag based small business that are located in Connecticut in applying for USDA – Rural Development REAP (Rural Energy for America Program) Grants.  REAP Grants which are part of the Farm Bill, provide assistance to those who are eligible with Energy Efficiency and Renewable Energy projects. In addition to the grant writing assistance with REAP, Connecticut Farm Energy can direct the Connecticut Farm to additional sources of funding and incentives. Call our office today at 860-345-3977 for more information!

 

*NEWS* USDA Announces Application Deadlines for 2012 REAP

January 20, 2012 – Agriculture Secretary Tom Vilsack today announced that USDA is seeking applications to provide assistance to agricultural producers and rural small businesses to complete a variety of energy efficiency and renewable energy projects. Funding is available from USDA's Rural Energy for America Program (REAP) authorized by the Food, Conservation, and Energy Act of 2008 (Farm Bill). For more information go to www.usda.gov

Applicants are encouraged to contact the CT Farm Energy Program to discuss potential projects and request an application binder at 860-345-3977. Or contact your local USDA Rural Development Area Office for further assistance with your REAP Application.

 

In 2011 the Connecticut Farm Energy Program helped CT AG Producers secure over $360, 000 in grant assistance.

2012 Federal Register Notice for REAP Grants

Rural Development REAP Loan & Grant Info Sheet

 

*News* Clean Energy Finance and Investment Authority launches On-Site Renewable Distributed Generation Program Deadline Extended

Rocky Hill, Conn., December 6, 2011 — On October 27, 2011, the Clean Energy Finance and Investment Authority (CEFIA) announced a new funding round for the Operational Demonstration (Op Demo) Program. The Op Demo Program funds installation, demonstration and testing of innovative, pre-commercial clean energy technologies in Connecticut by providing financing of up to $500,000 to winning applicants. Funding in the amount of $1.5 million is available in this round to support qualified applicants via a competitive evaluation and selection process. The application submission deadline for this round has been moved back one month to February 9, 2012.

Eligible technologies must have been proven technically viable in a laboratory or other experimental setting and be field-operational. Eligible projects can be full systems, system components or manufacturing innovations. This funding round features an expanded list of eligible technology areas including, but not limited to:

*News* AGRICULTURE SECRETARY VILSACK ANNOUNCES FUNDING FOR OVER 900 PROJECTS TO BOOST RENEWABLE ENERGY PRODUCTION AND REDUCE ENERGY COSTS

August 17, 2011 Agriculture Secretary Tom Vilsack today announced grants for more than 900 agricultural producers and rural small businesses across the country to implement renewable energy and energy efficiency measures in their operations. Secretary Vilsack made the announcement as part of President Obama’s rural economic bus tour in the Midwest where today he highlighted efforts underway to reduce our country’s dependence on foreign oil, which will increase the economic competitiveness of rural America and promote job creation. Link to USDA Press Release

 

REAP Grants
The REAP/RES/EEI Grants Program provides grants for energy audits and renewable energy development assistance. It also provides funds to agricultural producers and rural small businesses to purchase and install renewable energy systems and make energy efficiency improvements.

How much are the grants?
The grants are awarded on a competitive basis and can be up to 25% of total eligible project costs. Grants are limited to $500,000 for renewable energy systems and $250,000 for energy efficiency improvements. Grant requests as low as $2,500 for renewable energy systems and $1,500 for energy efficiency improvements will be considered.

Who is eligible?
The program is designed to assist farmers, ranchers and rural small businesses that are able to demonstrate financial need. All agricultural producers, including farmers and ranchers, who gain 50% or more of their gross income from the agricultural operations are eligible. Small businesses that are located in a rural area can also apply. Rural electric cooperatives may also be eligible to apply.

What types of projects are eligible?
Most rural projects that reduce energy use and result in savings for the agricultural producer or small business are eligible as energy efficiency projects. These include projects such as retrofitting lighting or insulation, or purchasing or replacing equipment with more efficiency units. Eligible renewable energy projects include projects that produce energy from wind, solar, biomass, geothermal, hydro power and hydrogen-based sources. The projects can produce any form of energy including, heat, electricity, or fuel.

For all projects, the system must be located in a rural area, must be technically feasible, must meet environmental requirements, and must be owned by the applicant. For Renewable Energy Projects seperate meters are required if there is a residence on the farm.

REAP Guaranteed Loan Program
The REAP Guaranteed Loan Program encourages the commercial financing of renewable energy (bioenergy, geothermal, hydrogen, solar, wind and hydro power) and energy efficiency projects. Under the program, project developers will work with local lenders, who in turn can apply to USDA Rural Development for a loan guarantee.

Guaranteed Loan Specifications
Loans Limits:

• Loans up to 75% of the project’s cost
• Maximum of $25 million, minimum of $5,000

Maximum percentage of guarantee (applies to whole loan):

• 85% for loan of $600,000 or less
• 80% for loans greater than $600,000 but $5 million or less
• 70% for loans greater than $5 million up to $10 million
• 60% for loans greater than $10 millon up to $25 millon

Fees and Interest Rates

• Lender’s customary interest rate, fixed or variable, negotiated by lender and business Lender’s customary fees, negotiated by lender and business
• One-time guarantee fee equal to 1% of guaranteed amount
• Annual renewal fee

Benefits to Businesses
Benefits include higher loan amounts, stronger loan applications, lower interest rates and longer repayment terms that can assist businesses that may not qualify for conventional lender financing.

Benefits to Lenders
Lender benefits include expanding lender’s loan portfolio, allowing lenders to make loans above loan limits, protecting guaranteed portion of loan against loss by the Federal Government, existing secondary market for REAP guarantees, helping to satisfy Community Reinvestment Act (CRA) requirements, and allowing lenders to use their own forms, loan documents, and security instruments.

Eligibility: Borrowers, Lenders, Location
New definition being determined. Borrowers must be an agricultural producer or rural small business. Agricultural producers must gain 50% or more of their gross income from their agricultural operations. An entity is considered a small business in accordance with the Small Business Administration’s (SBA) small business size standards NAICS code. (http://www.sba.gov/size/index.html). Most lenders are eligible, including national and state-chartered banks, Farm Credit System banks and savings and loan associations. Other lenders may be eligible if approved by USDA.

Eligible Project Costs
Eligible project costs include: 1) Post-application purchase and installation of equipment, 2)Post-application construction or improvements, 3) Energy audits or assessments, 4) Permit or license fees, 5) Professional service fees, 6) Feasibility studies and technical reports, 7) Business plans, 8) Retrofitting, 9) Construction of a new energy efficient facility only when the facility is used for the same purpose, is approximately the same size, and based on the energy audit will provide more energy savings than improving an existing facility, 10) Working capital, 11) Land acquisition.

REAP Summary
How much assistance can be provided?

• Grant: 25% of total eligible costs
• Guaranteed Loan: 75% of total eligible costs
• Combination grant and guaranteed loan: 75% of total eligible costs

Minimum grant amounts:

• Renewable Energy projects: $2,500
• Energy Efficiency projects: $1,500

Maximum grant amounts:

• Renewable Energy projects: $500,000
• Energy Efficiency projects: $250,000

Minimum guaranteed loan amounts:

• Renewable Energy projects: $5,000
• Energy Efficiency projects: $5,000

Maximum guaranteed loan amounts:

• Renewable Energy projects: $25,000,000
• Energy Efficiency projects: $25,000,000

Who is eligible?

Rural small businesses and agricultural producers.

How to Apply
To apply please contact your local Rural Development Office or the Connecticut Farm Energy Office at (860)345-3977.

Grant Application Information is available online