Hilo, Hawaii
December 4, 2009

Melissa L. Pang Ching, Hawaii Acting State Director for USDA Rural Development, announced today that USDA Rural Development is taking loan guarantees and grant applications for the Rural Energy for America Program, or REAP, for projects to be awarded in FY 2010. This year (FY 2009) producers and businesses in Hawaii and the Western Pacific have received over $132,000 in REAP grants, which can be used for renewable energy systems, and or energy efficiency improvements. Since 2005, Hawaii/Western Pacific has received almost $700,000 in grant funds for 15 solar photovoltaic (pv) projects.

Businesses and producers in rural Hawaii and the Western Pacific looking to create renewable energy, or make energy-saving improvements may be able to finance up to 75 percent of eligible project costs through the program. Stand-alone grants can be awarded up to 25 percent of total eligible costs. To qualify for financial assistance through REAP, project costs must be greater than $6,000 for energy efficiency projects, and $10,000 for renewable energy projects.

Details are at www.rurdev.usda.gov/rbs/farmbill/index.html. If you need additional information on the program, please contact Timothy W. O’Connell, Rural Energy Coordinator, in Hilo at 808-933-8313, or via e-mail at tim.oconnell@hi.usda.gov or Denise Oda, Business Programs Specialist, also in Hilo at 808-933-8323 or via e-mail at denise.oda@hi.usda.gov. The REAP program is authorized in Section 9007 of the 2008 Farm Bill. REAP offers grants and/or loan guarantees for the purchase and installation of renewable energy generating systems, and for energy efficiency improvements. Assistance is limited to rural small businesses and agricultural producers, including farmers and ranchers. Non-profits and units of government are not eligible. Residential use is not allowed. Projects must be located in a rural area, which is all of Hawaii and the Western Pacific except the Honolulu Census Designated Place (CDP). REAP grants and guarantees may be used individually or in combination. Together they may finance up to 75% of a project's cost. Grants can finance up to 25% of project cost, not to exceed $500,000 for a renewable energy system, and not to exceed $250,000 for an energy efficiency project. An applicant can even apply for both types of projects, obtaining a maximum grant of up to $750,000.

Energy efficiency improvement projects can be in addition to a renewable system and include things such as retrofitting existing processing operations, replacing lighting/refrigeration/electric motors with more efficient equipment, and even build a more energy efficient facility (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). The program can be used to purchase and install renewable energy systems: solar, bioenergy (biomass, biogass), geothermal, wind, hydropower, ocean (including tidal, wave, current, and thermal), and hydrogen.

USDA Rural Development’s mission is to deliver programs that will support increasing economic opportunity and improve the quality of life of rural residents. As a venture capital entity, Rural Development provides equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. Additional information about rural programs is available at a local USDA Rural Development Office or on USDA’s Web site at: www.rurdev.usda.gov or the Hawaii State Office Homepage at: www.rurdev.usda.gov/hi/.

USDA Rural Development is an Equal Opportunity Lender, Provider, and Employer. Complaints of discrimination should be sent to: USDA, DIRECTOR, Office of Civil Rights, Washington, D.C. 20250-9410.