Teaching local energy efficiency

Tuesday, February 17, 2009

An upcoming workshop will give local agricultural producers and small business owners the information they need concerning energy efficiency.

The Fort Scott Area Chamber of Commerce and the United States Department of Agriculture Rural Development office will host a workshop covering the USDA Rural Energy for America Program. The workshop is scheduled to begin at noon Tuesday, Feb. 24, in the lobby of the Gordon Parks Center for Culture and Diversity on the Fort Scott Community College campus, 2108 S. Horton St.

The purpose of the workshop is to inform participants about the Rural Energy for America Program, which provides grants and loans to agricultural producers and rural small business owners to help them purchase renewable energy systems or to make energy efficient improvements to their operations.

"Anytime we can help provide information for local companies on how to improve their businesses, we want to do it," FSACC Business Development Division Chairman Bryan Holt said.

During the workshop, participants will learn the key points of the program's application process; obtain supportive materials for the program; learn about energy-related USDA Rural Development programs; and the importance of energy audits.

"It's an information session," Katie Casper, an area loan specialist with the USDA Rural Development Area Office in Iola, said. "The loan is a guaranteed loan that a bank would make with a USDA guarantee. A grant is also available." Casper said the program can be beneficial to any for-profit small business owner who is seeking to improve the business' energy efficiency.

"It's (the program) very, very important," she said. "For older businesses looking to do upgrades, it could be a valuable tool. It's a good program for small grocery stores, because a lot of times their coolers or refrigeration units get out of date." Through the program, businesses can also make improvements to heating and air conditioning systems, insulation, lighting, irrigation systems, pumping systems, air systems, motor systems, and many others. Business owners can also use the program to create a renewable energy system that produces and delivers usable energy from a renewable energy source.

Business owners may apply for a minimum of $2,500 and a maximum of $500,000 for the purchase of renewable energy systems, and a minimum of $1,500 and maximum of $250,000 for energy efficiency improvement projects. The maximum amount any business can receive through the program during the year is $750,000. Grant requests cannot exceed 25 percent of the total eligible project costs, and applicants must provide at least 75 percent of the total project costs as matching funds.

The maximum guaranteed loan amount cannot exceed 50 percent of total eligible project costs. The minimum loan amount that each business may apply for is $5,000, minus the grant amount, and the maximum loan amount that each business may apply for is $10 million. Combined grant and loan amounts may not exceed 50 percent of total project costs, according to documents provided by Casper.

Business owners who apply for grants of at least $50,000 for improvement projects will be subject to an energy audit, Casper said.

"There must be an audit," she said. "An energy assessment is required to determine what they're using, and what is saved through their proposal." Improvement projects with total costs in excess of $200,000, as well as renewable energy system costs in excess of $400,000, will require the services of a professional engineer. Projects with total costs in excess of $200,000 may require a business-level feasibility study by an independent, qualified consultant, according to the USDA.

For more information on the Feb. 24 workshop, call the chamber at (620) 223-3566. For more information on USDA Rural Development programs, call the USDA Rural Development Area Office in Iola at 365-2901.