USDA Releases FY05 Notice of Funding Availability (NOFA) for Renewable Energy Systems and Energy Efficiency Program

USDA and NREL will host informational webcast, April 7
(see below)

On March 28, the USDA’s Office of Rural Development released a solicitation of proposals for the Renewable Energy Systems and Energy Efficiency Improvements Program (Section 9006) authorized under Title IX, of the 2002 Farm Bill.

This year’s NOFA makes $22.8 million available in competitive grant funds for the purchase of renewable energy systems and energy efficiency improvements:  $11.4 million will be set aside until August 31, 2005 to be made available for guaranteed loans; after August 31 all non-obligated funds will be awarded through the competitive grant process.  Applications must be completed and submitted to the appropriate USDA State Rural Development Office postmarked no later than June 28, 2005, 90 days after the publication of the Federal Register Notice on March 28. Grant awards will be announced by September 30, 2005.

Eligibility for grant applications is limited to agricultural producers and rural small businesses.  Grant awards will not exceed 25 percent of the eligible project costs.  Of the 75 percent of project costs applicants are expected to provide, 10 percent can be provided by third party “in-kind” contributions; however, applicant “in-kind” or other Federal grant awards will not be eligible.

Due to the need for additional time to develop the program’s final rule, the Office of Rural Development has opted to issue a NOFA in order to provide ample time for grant applicants.  USDA intends to post a final rule later this fiscal year that will provide guidance on the loan guarantee and grant programs.

Click here to view NOFA of the Renewable Energy Systems and
Energy Efficiency Improvements Program.

Contact your State USDA Offices and State Energy Offices regarding potential assistance in developing applications or answering questions. Click here for list of contacts.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Grant amounts 

• Awards for renewable energy systems will be between $2,500 and $500,000.

• Awards for energy efficiency improvements will be between $2,500 and $250,000.

• The maximum grant award for an applicant of Renewable Energy Systems and Energy Efficiency Improvements is $750,000.

Evaluation Criteria  

• Renewable energy technologies being considered include: solar, wind, geothermal, biomass, and hydrogen (only if produced from renewable sources).  

• Renewable energy proposals will be given priority based on the quantity of energy to be replaced on-site (15 points for replacement of greater than 50 percent) or to be generated (10 points); if the anticipated public health and sanitary benefits of the project will exceed applicable standards by at least 5 percent (2-5 points); if the system to be used is commercially available, replicable, and provided with a 5 year warranty (5-10 points); if the applicant can provided written commitments for up to 100 percent of the matching funds (5-15 points); and if the project can return the cost of investment in at least 11years (1-5 points).  

• Energy efficiency improvements proposals will be given priority based on anticipated energy savings preference will be given to projects that realize at least a 20 percent savings in energy (5-15 points).  

•Applications will receive a technical merit score for the first time that will be maintained during the final stage of review.  Criteria will include: qualifications of the project team, energy/resource assessments, design and engineering, project development schedule, financial feasibility, etc.  

• Additional points will be awarded to small agricultural producers with a gross market value of less than $1 million (5 points), less than $600,000 (10 points), and less than $200,000 (15 points).

Eligibility  

 • The applicant must also have demonstrated financial need and in the case of a rural small business, the business headquarters must be in a rural area. The applicant must control at least 51 percent of the system and be managing the operation of the proposed project. Grant funds are not for research and development; they will only be used for commercial or pre-commercial technology.  

 • The applicant will be responsible for performing a National Environmental Policy Act (NEPA)* review taking into account environmental issues and safety concerns with emphasis on land use, air quality, water quality, noise pollution, soil degradation, wildlife, habitat fragmentation, aesthetics, odor, and other construction and installation issues applicable to this type of technology.  The environmental review must be completed with enough time for funds to be obligated by September 30, 2005.  

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Webcast~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~  

USDA and the National Renewable Energy Laboratory will be holding an open, informational webcast on the 2005 NOFA on Thursday, April 7, 2005 at 3:00 p.m. (Eastern Time). 

Webcast access information is provided below.  

AUDIO PARTICIPANT ACCESS 

            CALL DATE:             April 7, 2005  (Thursday)
            CALL TIME:              3 PM ET
            DURATION:              1 hr 30 min
            LEADER:                  Ms. Terri Walters  

            USA Toll Free Number:  888-566-5773
            PASSCODE: 9006  

            For security reasons, the passcode and the leader's name will be required to join your call.  

NET CONFERENCING PARTICIPANT ACCESS INFORMATION  

            URL:                                        https://www.mymeetings.com/nc/join/
            CONFERENCE NUMBER:    PG5446315
            AUDIENCE PASSCODE:      9006  

            If you are a repeat user, you can join the event directly at:  
            https://www.mymeetings.com/nc/join.php?i=PG5446315&p=9006&t=c  

For more information regarding the 2002 Farm Bill Programs, please visit www.eesi.org or contact Alexandra Morel (amorel@eesi.org or 202.662.1885).  

###

Click here for Print version