Matson Consulting

Bio Energy

Bio Energy

At Matson Consulting we believe in the critical role of alternative energy sources, biomass, energy efficiency and use of renewable resources. Bioenergy is an important and growing part of the renewable energy spectrum. We work with our clients to create value generated from bio-based material that often were previously considered as a waste product.

These are new and exciting areas for new project development. Although this area is rapidly changing, we are constantly abreast of current trends. Matson Consulting pairs its experience in business and strategic planning to create the structural underpinning our clients need to form successful bioenergy ventures.

Matson Consulting provides a number of technical services in this area.

Matson consulting has assisted our clients' projects across a wide range of biofuels and energy efficiency projects. Some of our previous project areas have involved:

We have been successful in working with our clients to create applications and feasibility studies that have received USDA approvals.

REAP Program * (Rural Energy for America Program)

ENERGY EFFICIENCY
Grants for energy efficiency measures – e.g., lighting, heating, cooling, insulation, & pump improvements The REAP program provides grants (& loan guarantees) to rural small businesses & agricultural producers for up to 25% of the cost of making energy efficiency improvements to their facilities. Renewable energy generation projects (which are discussed in a separate information sheet) are also eligible for assistance under this program.

Funds available
In FY2008, over $34 million in REAP grants were awarded. Over $50 million may be available in FY2009.

Grant size
$250,000 maximum ($1,500 minimum) per project – cannot exceed 25% of total project cost.

Eligible applicants Rural small businesses – “Rural” means the project is not located in a Census-defined Metropolitan Statistical Areas (i.e., outside the Portland, Salem, Eugene, Medford, & Bend MSA’s). “Small” is as defined by SBA and depends on business type – typically < 500 employees & revenue < $6.5 million. Agricultural producers (including nurseries & dairies) – individuals or business entities receiving at least 50% of gross income from agriculture. (The SBA-“small business” limitation does not apply to ag producers.) Preference is given to “very small businesses” – those with < 15 employees & < $1 million in annual receipts. The applicant must have a demonstrable financial need for the grant assistance. Majority ownership must be held by US citizens or permanent residents. Nonprofits & public projects are not eligible.

Eligible purposes
Purchase & installation in a rural location of non-residential energy efficiency improvements to a building or process resulting in reduced energy consumption. Strong preference is given for technology that is “commercially available” – i.e., that has a proven operating history and has an established design, installation, & service industry. Pre-commercial technologies – i.e., those that have emerged through the R&D process and have commercial potential – may qualify, but require substantially more documentation. Experimental or R&D projects are not eligible. The applicant must own & control the system, though a qualified third-party may be engaged to operate it.

Authorized uses
Energy-efficient fixtures, machinery & equipment (new or refurbished) – both purchase & installation (including reimbursement for these costs only if the costs were incurred after submitting your application). » Vehicles & farm equipment are ineligible • Energy-efficient real estate improvements – both materials & construction (including reimbursement for these costs only if the costs were incurred after submitting your application) » New facilities are ineligible unless they exactly replace an existing inefficient facility in the same size & purpose. Furthermore, the REAP assistance is limited to costs directly attributed to energy efficiency improvements over & above conventional design and as supported by an energy audit. • Energy audits, permits, professional fees (except application packaging), feasibility studies, & business plans (including reimbursement for such costs whether incurred before or after applying)

Application process
“Simplified” applications are allowed for projects seeking ≤ $50,000 grant & with ≤ $200,000 total project cost. Grants are awarded twice a year via a national competition. USDA only accepts applications during certain periods. The window for submitting applications in FY2009 has not yet been announced.

Recent examples. In FY2008, 3 Oregonians received energy efficiency grants – for lighting at a dairy, lighting at a manufacturing facility, and for greenhouse glazing retrofits at a commercial nursery.

Additional requirements
Matching funds – 75% of the project cost must come from non-Federal funds. “In-kind” contributions from third parties of up to 10% of the project cost may be counted toward the match. Energy audit – a report by an independent, professional, qualified party (such as a Certified Energy Manager) is required with the application. (Applications for < $50,000 are exempt from this requirement, but receive extra priority points for meeting it.) The audit must address current energy use, recommended improvements & costs, energy savings from the improvements, dollars saved per year, and weighted-average payback in years. Interim financing – Grant funds are typically disbursed when the project is complete, tested, & certified operational.

Priority Point System
REAP applications are competitively chosen for funding based on the following weighted selection criteria:

Max Points Grant selection criteria
15 Energy saved (max points for projects with ≥ 35% energy savings)
5 Professional energy audit obtained(these points are given only if total project cost is ≤ $50,000)
10 Environmental benefits - the project helps meet state environmental goals(true for Oregon)
10 Commercial availability of the system (max points for improvements with a 5+ year warranty)
10% of 35pts Technical merit score - qualifications of the project team
5% of 35pts Technical merit score - agreements & permits
10% of 35pts Technical merit score - energy savings audit/assessment
30% of 35pts Technical merit score - design & engineering
5% of 35pts Technical merit score - project development schedule
20% of 35pts Technical merit score - financial feasibility
5% of 35pts Technical merit score - equipment installation
5% of 35pts Technical merit score - equipment installation
5% of 35pts Technical merit score - operations & maintenance
5% of 35pts Technical merit score - decommissioning
15 Readiness(max points if all other funding sources have already given written commitment)
10 "Smallness" of applicant(max points if <$1 MM gross revenue for business, < $200,000 for farms)
5 "Small" project(e.e., ≤ $50,000 grant & ≤ $200,000 project) using simplified application
5 No previous REAP award to applicant within last 2 years
10 Time for project to repay cost of investment(max points if simple payback in < 4 years)

Shaded points are awarded by independent technical review committees; other points awarded by USDA.