Renewable Energy Demonstration Pilot Program

Summary

Note: The budget for 2012 is $500,000; this round of funding is specific to renewable energy generation technologies on water or wastewater treatment systems.  Application forms are available here.  Deadline for applications is July 13, 2012.

The Texas Department of Rural Affairs (TDRA) offers the Renewable Energy Demonstration Pilot Program (REDPP), which provides grants to local, non-entitlement local governments for the installation of renewable energy projects. The REDPP is part of the larger federal Community Development Block Grant Program (CDBG). The primary objectives of the CDGB program are: to primarily benefit persons of low and moderate income; to aid in the elimination of slums and blight; and to meet other community development needs of a particular urgency that pose a serious and immediate threat to the health and safety of the public. The CDBG program separates local governments into two major categories: entitlement communities and non-entitlement communities. Entitlement governments, defined as cities with more than 50,000 residents and qualifying counties with more than 200,000 residents, receive an automatic allocation of CDBG funds. The REDPP portion administered by the TDRA is offered only to those local governments that do not receive an automatic allocation. There are a total of approximately 1260 non-entitlement cities and counties in Texas.

In order to qualify for funding under the REDPP, activities must use "a naturally occurring, theoretically inexhaustible source of energy such as biomass, solar, wind, tidal, wave, or hydroelectric". Beyond this requirement, eligible activities are determined according to the broader terms of the CDBG program. The program guidebook contains a detailed list of eligible and ineligible activities for CDGB funds. Grants will be awarded on a competitive basis according to an evaluation structure which considers:

• Type of project (e.g., does the project provide public facilities that serve basic human needs)
• Use of innovative technologies and/or methods
• Prospects for wider application or duplication in other rural areas
• Long-term cost/benefits and relationship to state renewable energy goals (e.g., expected energy savings)
• Partnerships and collaborations with other entities focusing on promoting renewables
• Leveraging of other funding sources (i.e., level of matching funds)
• Location in rural areas