2011 Minnesota Department of Agriculture Bioenergy Grants FAQs

11/2/11

What is the duration of funded projects? Is there a limited time frame during which funds must be spent?

• All grant funds must be spent by June 30, 2013—the date the appropriation ends (see Laws of Minnesota 2011, Chapter 14, Section 3, Subdivision 4). Work may continue on projects after this date (for instance, NextGen funds may only fund a certain phase of a larger project), but the state cannot reimburse funds beyond the appropriation end date. 

What are eligible match dollars?   

• Can Renewable Developent Fund (RDF) funds be used as cost-share/non-state dollars?
  • Funds appropriated by the legislature are considered state funds and therefore would not be eligible. However, because RDF funds are technically provided through Xcel Energy ratepayer funds, these funds are eligible.
• With respect to in-kind match, are salaries and fringe of state-funded staff eligible to be considered in the in-kind match calculation? In other words, can a portion of the in-kind contain staff time that is supported by State of MN funds?
• How much match can be in-kind versus cash?
  • Projects must provide at least 25% of their matching funds in cash—although more cash match is allowable. Up to 75% (or less) of the project match can come from in-kind sources. See page 3 of the RFP for details on the definition of in-kind contributions. If, for example, only 50% of matching funds are in-kind, the other 50% could come from cash, or from other non-cash sources such as grants not obtained through the Minnesota legislative process (e.g., federal grants, etc.).

What are the requirements for eligible companies? Must they be registered in the state or a Minnesota firm?  What if they own a company in another state and are buying a Minnesota facility or company?

• Eligible applicants must have a physical address in Minnesota. Firms outside the state may apply in partnership with an eligible entity (company, facility or service provider as outlined on page 3 of the RFP) in Minnesota.

Can a small technology company receive funding through this opportunity?

• Small technology companies could apply if they are providing services or research related to bioenergy development or production. Please see page 3 of the RFP for more details.

Are previous NextGen Energy Grant applications available for review?

• Yes. All previous applications are now considered public data and may be reviewed. A formal data request must be submitted to the MN Department of Agriculture for this information; fees may apply if a requested application is more than 20 pages. Also, portions of some applications have been deemed Trade Secret under Minnesota Statutes §13.37 and are therefore non-public.
• Please contact Christina Connelly (christina.connelly@state.mn.us ) if you would like the data request form.

Can NextGen funds be used for the following: 

• A feasibility study?
• To complete a business plan?
• To develop an entity’s organizational procedures, share criteria, member and feedstock agreements?
• To develop a strategy for meeting entity goals?
• To determine the economic impact and number of jobs created/maintained from the feedstock supply value chain portion of the project?

According to legislation (Laws of MN for 2011, Chapter 14, Sec. 3, Subd. 4), non-government entities may receive grants for business plan development and structures related to community ownership. In addition, organizations may apply for funds that provide “on-station, on-farm field scale research and outreach to develop and test the agronomic and economic requirements of diverse stands of prairie plants and other perennials for bioenergy systems.” The third category of eligible activities is for owners of MN facilities producing bioenergy. Other activities are not specified in legislation.

Please see the RFP, page 3, for more details on eligibility requirements and definitions.

What is the legislative requirement for a qualified engineer (page 6 of the RFP)? What does certification of the proposed technology involve? Can an engineer who is involved in the project qualify under this requirement, or does the engineer need to be an external reviewer?

• According to legislation (Laws of MN for 2011, Chapter 14, Sec. 3, Subd. 4), “projects must have a qualified engineer provide certification on the technology and fuel source.” Legislation does not specify the certification requirements, nor does it prohibit qualified engineers on staff with an entity applying for a NextGen grant from fulfilling this requirement.

Are colleges and universities considered non-governmental organizations under the RFP?

• Private colleges and universities are considered non-governmental organizations. The University of Minnesota and schools that fall under the MnSCU (MN State Colleges and Universities) system are considered governmental organizations. However, these entities may be eligible for funds as owners of MN facilities producing bioenergy, or organizations providing on-farm/on-station research and outreach on diverse stands of prairie plants and other perennials for bioenergy systems.

• Please see the RFP, page 3, for more details on eligibility requirements and definitions.

Can an entity outside of Minnesota partner with a Minnesota entity to apply for an RFP?

• Applicants must have an address within Minnesota, but may partner with other entities including those outside of Minnesota. There are no restrictions on grantees paying for services procured from out-of-state partners.

Can an entity that is a subcontractor (not applicant) on a NextGen grant charge indirect costs to NextGen projects?

• Yes--subcontractor charges are considered direct expenses to the grantee.  The allowable billable rate can include labor plus fringe costs for professional services such as engineering, accounting, legal, etc.

How detailed should the proposed budget be? Can the format on page 11 of the RFP be reworked to include additional detail?

• You may reformat the budget, or include additional detail on another page. You may include as much or as little detail as you feel is necessary to adequately represent your proposed project.

Do eligible projects need to be related to energy or are bio-products which replace petroleum-based products (e.g. plastics, chemicals, ammonia) eligible?

• The legislation that established this grant program (Laws of MN for 2011, Chapter 14, Sec. 3, Subd. 4) is specific to projects related to bioenergy/biofuels.

Are projects related to algae-based biomass (e.g., for electricity or combined heat and power) considered eligible bioenergy systems under the RFP?

• According to legislation (Laws of MN for 2011, Chapter 14, Sec. 3, Subd. 4), “eligible bioenergy facilities are those currently producing or that will produce biomass-based transportation fuels or biomass-based commercial heat, industrial process heat or electrical power prior to June 30, 2013.” The legislation further defines bioenergy to include “transportation fuels derived from cellulosic material, as well as the generation of energy for commercial heat, industrial process heat, or electrical power from cellulosic material via gasification or other processes.” The NextGen Board has determined that the legislative intent of this language, however, was to be broad.

Does the cash match have to represent 25% of the total project amount requested, or the total project cost?    

• The cash match only applies to the total project amount being requested for this grant award. As an example, if the total project cost is $100,000, and the grant amount being requested is $50,000, then the total match would be $50,000, of which at least $12,500 would need to be in cash.

Do attachments need to be submitted in electronic and hard copy format?

• Yes. The entire application must be submitted both in hard copy format as well as electronic. Snail mail and email addresses for submitting your application are provided in the RFP.

What if I have specific eligibility questions?

• Eligibility requirements are outlined in the RFP based solely on legislation—it is up to the NextGen Energy Board, and ultimately, the Commissioner of Agriculture to take those legislative requirements and assess each application individually. Please read the RFP eligibility requirements and criteria carefully to determine whether you fit into the goals of the program.

Is there a limitation on the file size for the electronic version of the application document that needs to be submitted to you?

• No, there is not a limit on electronic file size. You may need to split your application into several files if it is too large to send as one.

Upon award of the grant to a company, how would the requested amount of money be distributed to the company? Would it be distributed after submitting invoices for incurred costs to the NextGen board or is there a lump sum that would be distributed in advance?

• The grant amount will be distributed on a quarterly basis, upon receipt of required quarterly reports and invoices. Advance payments will not be provided.

Are there final reports from the last round of grants, in 2008?

• Not every grantee submitted a final report—only those who included a report in their project plan. However, the Department completed brief final reports on each grantee detailing project goals, outcomes, budget changes, etc. These and reports from grantees who prepared them as part of their projects can be requested from the Department – please contact Christina Connelly at christina.connelly@state.mn.us for the formal data request form.
  

For on-farm or on field biomass production research, can the rental value of the land be used as in-kind match?

• Yes, under some circumstances. If access to the land is being provided to the project without a rental fee, then the rental value of the land involved can be considered an in-kind match. However, if the land is state owned, such as a Wildlife Management Area, then the match would not be considered non-state and therefore would not be eligible. This limitation on state land still applies if there is a federal interest in the land involved, even if that federal interest has prohibited the use of such land as in-kind match to federal grants. If the land involved is privately owned with a state conservation easement, the rental value of the land would be eligible non-state match so long as the fee title owner is providing rights or uses that were retained by the fee title owner.

Can biomass harvested from state lands in a on-farm on field biomass production research project, or the proceeds from the sale of such material, be used as match?

• Yes, so long as the State releases ownership of any harvested material in the permits or agreements authorizing the harvest.

The RFP asks for past performance on MDA grants/contracts. We archive our grant files after four years – do we need to include information after that time period?

• Please provide any information that you have available on past MDA grants and contracts. If your files are archived after a certain time, please include information on how long files are kept before archiving. If the review team has questions about older grants/contracts, they will contact you.

The RFP states that ineligible match funds include the cost of general operating support such as routine overhead expenses not related to the grant project. What about overhead expenses that do relate to the project?

• Overhead expenses related to the project can qualify as match funds. Up to 75% of project match can be non-cash or in-kind expenses that are non-state funds.

Do the first two pages of the formatted grant application in the RFP count towards the 10 pages?

• Yes. Look on pp. 10-11 of the RFP to see the page limits for each section. Your total application (not counting attachments) should equal 10 pages.

How detailed should the proposed budget be? Do we need to include information on contractors for specific portions of the project?

• The proposed budget should simply outline your expected costs and the categories of work/tasks the funds will pay for, as well as information on matching funds. If a grant is awarded, the budget can be updated to reflect changes/new details, such as contractors that may not be determined until after a grant award is made.

Should groups that have ownership in a company applying for a grant be included in the section on significant partners?

• In providing contact information for significant partners, please include any partners that may be involved in the grant project. If an applicant is owned by multiple entities, include this information as well with detail on their potential involvement (if any).

If we have multiple proposals out for potential contractors, how should we proceed with attachments on technical and economic feasibility of the project? If we use information supplied by one manufacturer, are we free to later switch to another?

• In your application, please provide as much information as you can that demonstrates technical and economic feasibility of the project. Some contractors may change once a grant is awarded; this information can be updated at a later time. 

If an applicant is partially owned by other partners, should the applicant demonstrate financial and technical capability for all entities or just the applicant?

• Please provide any relevant information that helps demonstrate financial and technical capacity of the applicant. If this includes data on entities with ownership in the applicant’s entity, we welcome this information. However, it is not necessary so long as the applying entity can demonstrate their capacity.