REAP Program Notes

Notes from the program Q&A document:

  • only a for profit entity can apply
  • one grant per fiscal year per entity max
  • grant and loan ok combined
  • if approved for grant, loan funds automatically reserved
  • must submit both grant and loan docs at same time
  • $500k grant max for energy efficiency improvements,
  • $ 1mm max for zero GHGE energy system projects
  • 30% investment tax credit can be taken 
  • grant is taxable income, will receive 1099-G
  • 12-60 months bills required for energy improvement projects
  • new entities are eligible if scored as energy generation project
  • The business must meet the Small Business Administration (SBA) size standards based on the North American Industry Classification System (NAICS) found in 13 Code of Federal Regulations (CFR) Part 121.
  • HVAC, insulation, refrigeration, etc all included as energy efficiency improvements
  • New equipment in a new building is not covered as an energy efficiency improvement
  • Energy generation equipment for new buildings is covered.
  • If the applicant (corporation) does not own the project site, a long-term lease between the applicant and the property owner is required. 
  • All projects require an environmental review.
  • > Who is responsible for environmental review? How is this done? Before or after application submission?
  • Eligible fees are only after application submission, so funds spent pre-app are not covered, eg engineering and feasibility studies.
  • Carport with solar is covered
  • Roof replacement for structural integrity to support solar is covered
  • > What is Build America, Buy America Act? 
  • Most PV systems do not require a feasibility study, but things like biomass processing would, since the farmers considered safe and known
  • All applicant entities must register in the system for award management (SAM), and a Unique Entity Identification (UEI) number is required. 
  • There is a separate pool of funds for under utilized renewable energy technology. this is tech that makes up less than 20% of the grant awards. No single tech (eg solar) can receive more than 50% of the funds from the pool. under utilized tech criteria is based on previous years application results and should be posted on the website. 
  • From Bard:
  • For FY2024 applications (submitted in 2023):
  • Technologies excluded from the underutilized category are solar and energy efficiency. These technologies received significant funding in FY2021, exceeding the 20% threshold.
  • All other renewable energy technologies are eligible for the underutilized designation, and this list could include:
    • Biomass: Generated from organic materials like animal waste, forest resources, or agricultural residue.
    • Wind: Small-scale wind turbines suitable for rural applications.
    • Geothermal: Ground-source heat pumps or other low-temperature geothermal systems.
    • Hydrogen: Renewable hydrogen production and utilization systems.
    • Marine and Hydro: Tidal and wave energy technologies.
    • Anaerobic digestion: Biogas production systems converting organic waste into fuel.
  • if not funded in one quarter, it automatically competes in the next