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- John Brown
- State and Local Initiatives
- 303.275.3615
- john_brown@nrel.gov
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- Wind
- Solar
- Biomass
- Anaerobic Digestion
- Geothermal
- Hydrogen
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- Declining Costs
- Fuel Price Uncertainty/Risk Mitigation
- Energy Security
- Rural Economic Development
- New jobs & economic development
- Increased economic diversity
- Zero or reduced air emissions
- Reduced public health costs related to pollution
- Emerging Markets for Green Power and Emissions
- Federal and State Policies
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- Compliance with state and federal statutes
- Health impacts
- Land, air, water impacts
- Climate change
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- Created as a U.S. Department of Agriculture program
- Program designed to assist farmers, ranchers and rural small businesses
with energy projects
- This program provides grants and guaranteed loans for renewable energy
systems and energy efficiency improvement projects
- Created as a 5 year program.
- Congress has funded the program at $22.8 million per year for the first
three years (FY06 budget also shows $23M)
- In 2003 and 2004, a total of $44 million in grants were awarded to 281
projects in 33 states.
- Currently over 380 grant requests in the system for FY05
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- Rural small businesses and agricultural producers can apply
- The regulation includes the following definitions:*
- Rural – Any area other than a city of town with population over
50,000. Cannot be in urbanized
area adjacent to such a city or town.
- Agricultural Producer - An individual or entity directly
engaged in the production of agricultural products (including farming
or ranching) that gets 50% + of their gross income from the operations
- Small Business - A private entity including a sole proprietorship,
partnership, corporation, cooperative (including most Rural Electric
Cooperatives), and certain other electric utilities.
- Must meet SBA size standards for small business www.sba.gov/size/indextableofsize.html
- Non-profits excluded
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- Grants: 2004 NOFA Under Review
- $11.4 million definite, remaining potential after loan guarantees
- Loan Guarantees $11.4M with remainder to go to grants
- $500K RE, $250K EE
- Combined grant plus loan guarantee cannot exceed 50%
- Simple application for projects < $100K
- Regulation now allows year-round submittal
- 2-3 Grant reviews per year
- Submit, receive feedback, submit again
- SUBMIT EARLY
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- Any renewable energy and energy efficiency project as defined in the
law.
- Requirements for eligible projects:
- Must be located in a rural area.
- Must be for a pre-commercial or commercially available and replicable
technology.
- Must be technically feasible.
- Must have sufficient revenues to provide for operation and maintenance
- Grants request must not exceed 25% of project costs
- Minimum grant request: $2,500
- Renewable Energy:
- Maximum grant request: $500,000
- If request is over $50,000, NOFA requires a project-specific
feasibility study prepared by a qualifies independent consultant
- Energy Efficiency
- Maximum grant request: $250,000
- If total project costs are over $50,000, NOFA requires an energy audit
- The applicant must be the owner of the project and control the operation
and maintenance of the proposed project.
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- Different Technology Requirements for:
- Biomass, Bioenergy
- Anaerobic Digester
- Geothermal, electric generation
- Geothermal, direct use
- Hydrogen
- Solar, small (10 kW or smaller)
- Solar, large (larger than 10 kW)
- Wind, small (100 kW or smaller)
- Wind, large (larger than 100 kW)
- Energy Efficiency
- USDA has worked with technology experts to develop Guidance on the
Technical Requirements for each technology.
- Designed to help applicants better understand how to respond to the
technical requirements of the 2005 NOFA.
- Available at www.rurdev.usda.gov/rbs/farmbill/ under “Tools and
Resources”
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- Refrigeration Upgrades
- Lighting Retrofits
- Heating Efficiency Improvements
- High Efficiency Circulation and Ventilation - “Big Ass Fans™”
- Grain dryers
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- Fourth generation MT farmer
- 1200 acre cattle ranch and wheat farm
- Offset all electricity used on home and farm operations
- 100 foot tower
- Turbine installed September 2003
- Class 3 winds 12 mph annual average
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- Installed Turbine System - $36,850
- Site preparation done by J. Algers
- USDA RESG (25% rebate) - $7,696
- NCAT USB Funds - $12,500
- Estimated electricity used 14,200 kWh/yr
- Estimate electricity produced 18,000 kWh/yr
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- Two LLCs formed with cooperative principles.
- Sold membership stock to 66 individuals (33 in each group, required 85%
of shares to be owned by farmers)
- No individual can own more than 15% of the shares.
- Developed two 1.8 MW projects (to use MN incentive)
- Built the project in late 2002.
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- Goals included:
- Local ownership
- Maximize return on investment
- Create local economic development
- Research and utilize available incentives
- Develop a “cookie-cutter” model
- Maintain cooperative principles
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- Seven more Minwind projects received $178,201 grants from USDA in 2003?
- Essentially, using funds to build interconnection substation to get all
7 projects on the grid.
- Minwind III-IX will have 147 owners.
- Signed power purchase contracts with a utility in November 2004?
- Seven 1.65MW turbines installed in December 2004 near Beaver Creek, MN
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- Three Rural Electric
Cooperatives received
USDA funds to develop
wind projects:
- Federated Rural Electric
Association (MN)
$500,000
- Nobles Cooperative Electric (MN)
$500,000
- Illinois Rural Electric Cooperative (IL) $438,544
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- Air Quality benefits
- Control odors from storage and field application
- Reduces Greenhouse gases (methane)
- Controls other emissions (H2S, ammonia)
- Water Quality benefits
- Stabilize manure organics (BOD)
- Significantly reduce pathogens
- Provide nutrient management predictability and flexibility
- Return on Investment…Energy Revenues
- High Capacity Factor
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- On-Farm or Farm Scale:
- System is owned and operated by farm owner/manager
- Currently the predominant project type in the U.S.
- Regional or Centralized Digesters:
- Off-farm management and operation with a third party
- Ideally located at a large energy consuming source or interconnection
point
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- Often very cost effective
- Modular and easy to relocate
- No fuel needs and low maintenance
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- Sugar-derived chemicals
- Lignin derivatives (BTX (petroluem building blocks), phenols,
etc.)
- Biodiesel & chemicals from vegetable oils
- Pyrolysis oils from biomass
- Oxygen rich “cracked stocks”
- Exploring options for refining/upgrading
- Gasification of biomass
- Fischer-Tropsch liquids
- Hydrogen
- Chemicals
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- CO potential not yet tapped to receive full benefit from 9006
- 37 combined w/ emissions regulations will help drive increased market
penetration of EERE measures
- Many economically viable opportunities beyond utility scale wind
- Leverage distributed generation technologies
- Don’t forget EE
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Notes
