Doing business is expensive these days, and knowing what financial assistance is available is important. There are federal incentives to help defer the costs of adding a blender pump, and depending on your location, there may also be state and local funding available as well.
GET STARTED HERE:
Rural Energy For America Program Grants
GRANT FUNDING FOR RENEWABLE FLEXIBLE FUEL BLENDER PUMPS
The Rural Energy for America Program (REAP) offers grant and guaranteed loan funding for eligible rural businesses to assist with the cost of purchasing and installing flexible fuel pumps for mid-range ethanol blends (including E85).
BYO Ethanol to offer grant writing services through Sage Project Consultants to station owners for USDA REAP Flexible Fuel Pump Installations
For the second year, the Blend Your Own (BYO) Ethanol Campaign, a partnership between the American Coalition for Ethanol (ACE) and the Renewable Fuels Association (RFA), is offering to offset costs associated with grant writing fees for these projects. The projects are designed for retail fuel station owners seeking assistance with the purchase and installation of renewable fuels infrastructure equipment through the USDA Rural Energy for America Program (REAP) .
In FY2011, Sage wrote and helped submit a total of 21 USDA REAP applications representing 15 different states that successfully secured $1.3 million in total funding. For the 2012 funding cycle, we are poised to help retail fuel station owners across the country prepare and submit competitive applications to USDA that represent 25% of their eligible project costs associated with the purchase and installation of new blender pumps.
The deadline (March 30, 2012) is rapidly approaching to submit grants for this year’s funding, so please act quickly if you are interested in taking advantage of this program! Contact rachel@sageprojectconsultants.com or 605-728-5303 for more information and to discuss your project.
FY2012 USDA REAP Applicant Checklist
Sage Project Consultants has developed a checklist by which to obtain information from applicants in support of your USDA REAP application.
Applicant Checklist (fillable)
Applicant Checklist (pdf copy)
If interested in applying for this grant opportunity:
1. E-mail or call Sage Project Consultants to discuss your project
For assistance with completing the additional required forms and preparing an official USDA REAP application, please contact rachel@sageprojectconsultants.com or 605-728-5303.
2. Download and complete the Applicant Checklist and return to Sage Project Consultants by e-mail as soon as possible.
APPLICANT ELIGIBILITY
- The applicant must be a rural small business or agricultural producer. For gasoline service stations with convenience stores, applicants must have total income of $27 million or less in the previous tax year. Total income is defined as gross receipts less cost of goods sold.
- Current on all Federal debts.
PROJECT ELIGIBILITY
- The project must be for the purchase and installation of a renewable flexible fuel blender pump system (such as mid-range ethanol blends or E85).
- The project must be for commercially available technology.
- The project must be located in a rural area, which is defined as any area other than a city or town that has a population of greater than 50,000 inhabitants and the urbanized area contiguous and adjacent to such a city or town according to the latest decennial census of the United States.
- The applicant must be the owner of the project and control the revenues and expenses of the project, including operation and maintenance. A third-party under contract to the owner may be used to control revenues and expenses and manage the operation and/or maintenance of the project.
- Satisfactory sources of revenue in an amount sufficient to provide for the operation, management, maintenance, and debt service of the project must be available for the life of the project.
GRANT FUNDING
- The amount of grant funds that will be made available to an eligible project will not exceed 25 percent of total eligible project costs. The minimum grant amount is $2,500 and maximum amount is $500,000.
- The applicant is responsible for and must secure the remainder of the total eligible project costs not covered by grant funds. State, local, and private funds, and investment tax credits, can be used in conjunction with the REAP grant. Other direct Federal grant funds cannot be used to meet the matching fund requirement.
ELIGIBLE PROJECT COSTS
Costs must be an integral and necessary part of the renewable flexible fuel blender pump system. Grant applications must be submitted to USDA Rural Development prior to incurring project costs. Costs incurred before submission of the grant application are not eligible for grant funding. Eligible costs include the following:
- Post-application purchase and installation of equipment (new, refurbished, or remanufactured), including dispensers, pumps, tanks, and piping.
- Post-application construction or improvements.
- Permit and license fees.
- Professional service fees, except for application preparation.
- Retrofitting.
APPLICATIONS
Grant applications are selected for funding based on a competitive process based on criteria including the type and quantity of renewable energy generated or saved, expected environmental benefits of the renewable energy system, and the estimated project economic investment return.
Loan guarantees are also available for projects utilizing commercial bank financing.
USDA CONTACTS
UDSA-Rural Development State Office or Rural Energy Coordinator
DETERMINING SITE ELIGIBILITY
For determining site eligibility for this program click here.
U.S. SMALL BUSINESS ADMINISTRATION – SMALL BUSINESS SIZE CATEGORIES
For determining business size to qualify for federal benefits, tax credits and regulatory relief click here.
BLENDER PUMP DISTRIBUTORS
To locate a Wayne distributor click here or to locate a Gilbarco distributor click here.
For a full press release click here or for a copy of the USDA REAP brochure click here.
