Tennessee Rural Energy for America Program Renewable Energy Systems & Energy Efficiency Improvement Loans & Grants

The program provides guaranteed loan financing and grant funding to agricultural producers and rural small businesses for renewable energy systems or to make energy efficiency improvements. Agricultural producers may also apply for new energy-efficient equipment and new system loans for agricultural production and processing. Who may apply for this program? • Agricultural producers an entity directly engaged in the production of agricultural products where at least 50 percent of their gross income comes from agricultural operations. • Small businesses ○ must be located in eligible rural areas and one of the following: ◘ a Private for-profit entity (sole Proprietorship, Partnership, or Corporation) ◘ A Cooperative [including those qualified under Section 501(c)(12) of IRS Code] ◘ an electric utility (including a Tribal or governmental electric utility) that provides service to rural consumers and operates independent of direct government control. ◘ A tribal corporation or other tribal business entities that are chartered under Section 17 of the Indian Reorganization Act (25 USC 477) or have similar structures and relationships with their tribal entity without regard to the resources of the tribal government. ○ must meet the Small Business Administration size standards in accordance with 13 CFR 121. NOTE: Agricultural producers and small businesses must have no outstanding delinquent federal taxes, debt, judgment, or debarment. Are there additional requirements? • Applicants must provide matching funds if applying for a grant only. ○ 50% Federal grant share limited to projects that meet one of the following: ◘ Project is a Renewable Energy System (RES), or RES retrofit that produces zero greenhouse gas emissions (Carbon Dioxide, Methane, Nitrous Oxide, or Fluorinated Gases) at the project level. ◘ Project is located in an Energy Community as defined in 26 USC 45(b)(11)(B) and determined by the Department of the Treasury. ◘ Project is an Energy Efficiency Improvement (EEI). ◘ Is a project proposed from an eligible Tribal Corporation or other Tribal Business entity (including agriculture operations) as described in 7 CFR part 4280. ○ All other projects are limited to 25% Federal grant share • Applicants must provide at least 25 percent of the project cost if applying for loan. • All projects must have technical merit and utilize commercially available technology. • Energy efficiency projects require an energy audit or assessment. • All projects require an environmental review prior to award or construction