Notes from the program Q&A document:
https://www.rd.usda.gov/media/file/download/reap-renewable-energy-systems-faqs.pdf
- 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