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Farm Energy Success Stories New Farm Income · Rur al Economic Development Energy Independence · A CLEANER Environment Congressional Support for THE Farm Bill’s Clean Energy programs

“American farmers and rural businesses “Our insatiable appetite for energy, particularly are successfully using the Rural Energy for from outside our borders, represents one of our America Program to leverage billions of gravest security threats. The Farm Bill’s energy dollars in private investment for successful programs recognize our nation’s new and energy efficiency and rural sector’s ability to confront these risks. projects. These new energy projects are good Solutions such as REAP improve our nation’s energy for rural , good for the environment equation and help strengthen our rural economies.” and good for our national energy security.”

—Senator Tom Harkin (D-Iowa) —Senator Richard Lugar (R-Indiana)

“Rural America possesses the resources and spirit “I strongly support the Rural Energy for America to lead our nation away from dependence on Program because it is one of the only federal programs foreign oil and non-renewable sources of energy. that comprehensively transforms a clean energy Building on the 2002 Farm Bill efforts, the development vision into action across agricultural 2008 Farm Bill is now expanding opportunities America. From the time when we created this for farmers, ranchers and small businesses to program in the 2002 Farm Bill to the nationally conserve energy and produce clean renewable successful program today, we have cemented our energy. Programs like the Rural Energy for commitment to transition rural and agricultural America Program provide the resources to America toward a future that treats energy as a transform practical ideas to save or produce strategic resource which must be conserved, protected energy into a reality. This kind of common- and produced. There is no turning back. America sense program will help transform rural America must break its foreign fuel dependency. The science into an energy resource for the entire nation.” of renewable energy rests in agriculture and unlocking the full potential of the molecule.”

—Representative Collin Peterson —Representative Marcy Kaptur (D-Minnesota) (D-Ohio)

“America needs a bold, new energy vision, and the Rural Energy for America Program can help. Our sustainable energy future must include the integration of energy efficiency and new technologies powered by clean renewable sources, such as wind, solar, and . REAP funds a wide range of renewable energy projects that stimulate rural economies, help create jobs and address environmental concerns.”

—Representative Jeff Fortenberry (R-Nebraska) Farm Energy Success Stories

New Farm Income Rural Economic Development Energy Independence A Cleaner Environment

Protecting the Midwest’s Environment and Natural Heritage ELPC.org | FarmEnergy.org

principal author Andy Olsen, senior policy advocate contributors Howard Learner, executive director John Moore, senior attorney Jill Geiger, director of communications Peter Gray, media relations associate Jamie West, communications associate Oliver Kiefer, Heather Lewis & Adam Smith, policy interns

ELPC.org FarmEnergy.org. © 2010. All rights reserved. Full reproduction permitted. This report can be downloaded from or Important: The ELPC information requests acknowledgment, contained in this indocument print, on is any for informationgeneral guidance or excerpts only, andreproduced as such is in provided another publication.with the understanding that ELPC is not providing any legal, , tax, or other professional advice. Readers should seek specific legal, accounting, tax or other professional advice from competent professionals prior to taking any action with respect to the matters discussed in this document. FarmEnergy.org

Front Cover: (Top) 15.99 kW PV array on at Camp Dewan, Burlington, Wisconsin - see for additional information (photo courtesy of H&H Solar Energy Services); (L-R) Rancher with Solar Electric Fence, Courtesy of DOE/NREL, Credit - Warren Gretz; Green Circle Growers’ greenhouse with energy-saving solar curtain; Wind farm in Woodstock, Minnesota. Back Cover: Wisconsin wind turbines. Farm Energy for America

The Rural Electric Convenience Cooperative’s Gob Nob turbine in Farmersville, Illinois. The faces historic energy Benefits of Expanding Farm Energy challenges to our , environment and REAP and other farm energy programs boost national security. Rural energy development, local economies in several major ways. They create especially on-farm energy production, responds demand for new jobs for system development, to these challenges through clean, low-carbon installation, operation and maintenance. They help renewable energy and energy efficiency small businesses, which are engines of job creation. opportunities, as this report documents. And they increase on-farm income and keep more The Farm Bill’s Rural Energy for America of our energy dollars in our local communities. Program (REAP) is helping farmers and ranchers, Farm energy also increases our energy other agriculture producers such as greenhouse independence. A stable energy supply – largely growers, and rural small businesses throughout immune to the supply shortages and pollution the country face and overcome these challenges. impacts of fossil fuels – is critical to our country’s security. The Farm Bill – Key Clean Energy Driver Clean energy also improves environmental The clean energy programs of the Farm Bill serve quality by reducing or eliminating water, air and the nation in many ways: expanding clean energy land pollution impacts from on-farm activities and production, slashing energy consumption and bills, fossil fuel power sources. promoting locally owned clean energy systems, With a strong national commitment to policies diversifying farm income and cutting global warming such as Farm Bill clean energy programs, America pollution. can today provide clean energy for jobs, security REAP and other Farm Bill clean energy and the environment for those who follow us. programs accelerate the research, development a ms F a rm Bill Cl ea n En e rgy Progr and commercialization of many renewable energy and energy efficiency technologies. In the process, American agriculture and rural communities realize new income and economic development opportunities. 2 Rural Energy for America Program (REAP)

The Rural Energy for America Program (REAP) REAP Popularity is a cornerstone of the Farm Bill’s Energy Title. REAP is successfully helping farmers and other innovators in Outpaces Resources rural communities across the country to pioneer the 140 next generation of American energy.

120 An Am e ri ca n S u cce ss tory Many Projects, Strong Demand Since its inception in 2003, REAP (first known 100 as the “Section 9006” program) has helped thousands of farmers, ranchers and rural small businesses tap 80 into the clean energy resources on their lands and cut energy waste in their operations. REAP is extremely successful with over 3,000 $ Millions 60 project awards in all states. Even with more funding added in the 2008 Farm Bill, demand for REAP support 40 continues to outpace resources. 20 REAP Funding Totals 0 by Technology 2003-2009 2003 2004 2005 2006 2007 2008 2009

Grant requests Appropriated funds

Loan guarantee requests

Improvements in 2008 Farm Bill Wind 15% In 2008, Congress improved REAP in several major 27% ways: Anaerobic Digester Biomass

Energy Eciency » 21% » Energy Technical Assistance funding – for organizations to carry out energy audits and Solar 6% renewable energy development assistance. 29% »» Feasibility Study funding – to help assess the Hybrid 1% viability of new projects and improve program Geothermal 1% effectiveness. Hydropower1% »» Larger Loan Guarantees – increases limit from $10 million to $25 million per project.

REAP’s renewable energy technologies span To help pay for these enhancements and meet the the clean energy spectrum: wind and solar power, high demand for REAP resources, Congress increased geothermal, manure digesters, small hydroelectric mandatory funding to $255 million over four years power, biomass for heat and power, and even geothermal (more than double the 2002 Farm Bill level). Congress heating. also can add additional money through annual REAP also funds many different energy efficiency appropriations – for example, for fiscal year 2010, upgrades, helping farmers and businesses cut energy Congress pumped more than $39 million in additional costs, improve efficiencies and increase their revenue. discretionary funding into REAP, resulting in a total appropriation of nearly $100 million for the year.

3 Anaerobic Digester - Electricity Neighborhood Energy, LLC $357,990 Grant + at Maxwell Farms $326,770 Loan Guarantee Newport, Vermont 2007

Economic stability and homegrown renewable production and sales, animal bedding savings and sales, American energy go hand-in-hand. When Matthew sale of excess solids, and tax credits. The generator has a Maxwell returned from Boston to his family’s rural 225 kW capacity, which can produce up to 1.75 million Vermont farm he knew that the dairy industry had kWh of electricity each year, or enough to power almost changed. “ were low at the 200 homes. time. I mean really low,” he said. “I In addition to producing knew that we needed to diversify our electricity, the farm’s anaerobic revenue and create some stability.” digester removes harmful bacteria Maxwell Farms’ Neighbor­hood from the cow manure, producing Energy, LLC, joined the Central a high-value bedding that can be

RS Vermont Public Service (CVPS) used on the farm. “With the bedding Cow Power program, becoming especially we’ve seen huge savings. E the fifth farm to use an anaerobic Sawdust bedding used to be one digester. With a $357,990 grant and of our biggest expenses,” noted a $326,770 loan guarantee from REAP, $250,000 from Maxwell. ST the Vermont Clean Energy Development Fund, $100,000 “This technology is the type of thing that allows a

E from CVPS, and $75,000 from the Vermont Agency third generation kid like me to move back to the farm,” of Agriculture, the $1.8 million project was on sound he said. “To us, the important thing is that the technology financial footing. is getting better every day. The key is that we continue IG Maxwell projects a net income from the project of to pilot the process in the field so that we can improve $224,900 each year, for a 6.4 year payback. The project efficiency and make the technology efficient for smaller has a variety of financial benefits, including electricity farms.” C D

I Anaerobic Digester - CHP Hunter Haven Farms $240,000 Grant

B Pearl City, Illinois 2003

Farmers and rural small business owners have many technology is a lot like computers. The development is rapid, reasons for undertaking renewable energy projects. For but it needs money in order to thrive.” RO Doug Block at Hunter Haven Farms, it was simply a matter In addition to creating natural gas from cow manure, of improving on-farm efficiencies. which greatly reduces the farm’s “At the time, we never knew our heating expenditures, the digester AE energy costs would rise so much. produces a comfortable solid

N We just wanted to make our byproduct that can be used as operations more energy efficient.” bedding for the dairy cows. A Hunter Haven Farms is Block was quick to point out on the cutting edge of digester that most of Hunter Haven’s cost technology. In 2005, Doug Block savings comes from producing and his brother, Tom, installed an animal bedding. “We see about anaerobic digester on their 600- 35%-40% of our savings through head dairy farm in Northwestern production and sale of heat and Illinois. The 130 kW generator, electricity, but over 60% of our designed in nearby Chilton, Wisconsin by GHD, Inc., was an savings comes from bedding.” immediate success. Hunter Haven is now producing energy Block received $240,000 through REAP, accounting to sell back to the power grid, helping to grow American for 25% of the project’s $960,000 cost. Additional funding renewable energy solutions. from the Illinois Department of Commerce & Economic “We built our digester two years after another farm in Opportunity helped make the proposal a reality. Block, like Southern Illinois completed theirs,” noted Block. “They have so many other grant recipients, said that without REAP twice as many cows, but we’re producing more energy. The funding, “our project would have never been possible.” 4 Biofuels Easy Automation, Inc. $45,000 Grant Welcome, Minnesota 2007

In rural energy, manufacturers are constantly powered system. “We wanted a way to make renewable looking for innovative approaches. With that in mind, energy using renewable energy,” said Jayden Grupe, Easy Automation, an experienced manufacturer of feed Operations Manager for the company. The generator and automated storage systems, is working to develop serves nearly the entire electrical load for the . a modular ethanol plant that will allow farmers to Looking forward, Grupe believes that its modular B produce ethanol, including system will be able to incorporate IO – all operated the latest in ethanol technology. by a computer system similar to “We believe our system will be a feed mill or dryer. able to readily produce cellulosic F

To compete with the ethanol,” he said. U economies of scale realized Easy Automation is hopeful by large ethanol , Easy that its customers will also be able E

Automation produces a to use REAP funding to purchase LS modular system benefiting from its modular ethanol production cost savings of mass production. facilities. The advantage of the Easy Automation hopes its company’s system is in its “plug modular, skid-mounted system and play” capability, said Grupe. can produce ethanol economically at a smaller scale to The prefabricated system allows a self-contained, fully overcome the transport costs of biomass. It asserts that automatic ethanol production system to be delivered to the technology can also convert cellulose to ethanol. a farm in trucks and assembled quickly. Combining units Easy Automation started with a REAP grant to allows for scale-up. All that’s left is to turn the grain into help convert the 100 kW natural gas genset at its fuel for the farm. Emmetsburg, Iowa manufacturing plant to an ethanol-

Bioenergy — Wood Pellet Production Maine Woods Pellet Company $400,000 Grant Athens, Maine 2007

With jobs on everyone’s mind in this tough and homeowners facing rising fossil fuel costs are economy, Maine Woods Pellet, LLC is creating jobs increasingly turning to biofuels to offset their energy B by producing homegrown renewable solid fuels. expenditures.

“We initially anticipated fourteen With many homeowners using IO employees,” said David Carr, Plant biofuels as a secondary heating source, Manager of the company’s production the trend away from conventional E facility in Athens, Maine. “But with the is noticeable. “We were demand we saw for home pellet heating, designed for bulk,” explained Carr, “But N we needed to expand our bagging our demand has changed so that we’re E operation. We now have thirty-two now doing a lot of bagging. In the future employees at our firm.” we could very well see home delivery RGY Carr was quick to point out that job like people used to have with coal.” creation doesn’t stop at the facility. “There The $10 million cost of the plant are more jobs in the woods because of our meant that numerous funding sources product, there are more people needed to would have to be utilized to see the transport the timber and wood chips, it all project to fruition. Still, the $400,000 adds up,” he continued. the company received through REAP Maine Woods Pellet, a joint venture was very important. “It may have been a of Maine Biomass Fuels and Linkletter and Sons relatively small grant,” said Carr, “but it was very helpful.” timber company, is part of the growing wood heating “This is one of the times you have to say that it’s pellet industry in the rural Northeast. Businesses money well spent,” added Carr.

5 Biomass Heat Cliff Fitchpatrick $20,000 Grant Wentworth, Missouri 2008

When propane costs hit $2.00 per gallon in the houses. Asked if he could have completed the project summer of 2008, Cliff Fitchpatrick decided that he without REAP funding, Fitchpatrick commented, had enough of relying on fossil fuels to heat his four “Not on this scale. It allowed me to do all four poultry chicken houses. He wasn’t alone. In 2007-08, at least houses instead of just two.” twelve other farmers in The new stove also Southwest Missouri joined is self-regulating, turning Fitchpatrick in making the off on warmer days when switch from propane to less heat is needed. “That’s biomass for heating their another easy way we save poultry houses. on energy costs,” he said. Fitchpatrick learned “We used to be at the about REAP funding beck and call of the oil through Bill Harvill, a industry,” he said. “The local poultry grower, who biomass stoves also give installed his own biomass us the flexibility to shift stove with a REAP grant. fuel sources from wood to The support of the local corn. It helps to stabilize USDA office in Springfield our energy costs.” While was essential, he said. payback will depend on “They were there any time future propane costs, you had a question on the grant. They really helped to Fitchpatrick says he could never think about going back. RGY walk you through the difficult parts of the application.” “Fundamentally,” he noted, “it’s all about looking

E Fitchpatrick received a REAP grant for $20,000, or forward. We can’t get caught in the do-nothing trap when about 25% of the total cost to buy and install an 800,000 oil prices are low. We need to be looking at promoting N BTU biomass stove that will heat all four of his chicken long-term sustainability.” E

Wood Boiler Heating System — CHP

IO Middleton Building Supply $461,000 Grant Middleton, New Hampshire 2006 B Middleton Building Supply, Inc. (MBS) in New The results prove out MBS’ decision, with the Hampshire faced growing energy costs that threatened company seeing an annual net energy savings of over the growth of its business as it tried to expand. In tough $1 million. Currently, the boilers meet about 40% of economic times and facing rising electricity costs, MBS MBS’ electricity needs, and the company expects that decided to adapt to a tough economy by transitioning figure to increase to about 60% in the near future. The its plant to renewable energy, helping protect the jobs company also hopes to sell excess generation to the of the 61 manufacturing employees. electric . In 2005, the sawmill used 314,450 gallons of fuel Combined heat and power systems are the most efficient and required 4,405,011 kWh of electricity. At a total way to tap the energy of a fuel such as wood. “Waste” heat cost of over $1.2 million, “energy as usual” stood out is tapped for other uses, serving two tasks with the same as a costly burden. With the help of a $461,000 REAP amount of fuel. CHP technology offers high efficiencies grant and additional assistance from local economic of 60% or more, which is helping MBS to realize a simple development organizations, MBS installed a high payback on their investment in less than four years. efficiency combined heat and power (CHP) wood- Businesses like MBS illustrate the innovation fired boiler to supply the lumber manufacturing facility. and success that REAP promotes. MBS saved 61 Utilizing 45 tons of mill chips, edgings and cuttings, jobs, created new jobs, and reduced imported fuel the 600 HP boiler and 600 kW steam turbine system is consumption by hundreds of thousands of gallons. designed to produce 5.1 million kWh annually.

6

Geothermal Heat Pump Elkton Locker & Grocery $65,000 Grant + $65,000 Loan Guarantee Elkton, South Dakota 2007 When Steve and Diane Hammer looked into facility is now heated and cooled entirely by geothermal expanding their meat locker business to a full service energy,” he continued. Geothermal presents a great grocery store, the town of opportunity for rural Elkton had been without a small businesses across grocery for several years. the region to tap into They had already renewable energy, and developed acumen for the REAP is a part of realizing meat business, satisfying that potential. “Could we both customers and judges have done this project with “Big Daddy’s Meats.” without REAP? Probably RUR Now, with the help of not,” said Steve. The a $65,000 REAP grant, Hammers also received the Hammers were able small loans and grants from to bring a grocery store the South Dakota Office of back to their small town Economic Development. A in an environmentally “We’ve seen L SM sustainable and cost- considerable energy and cost effective manner. savings,” he noted. “With the “We were looking for a way to cut costs,” said Steve. way the President would like to ‘go green’ I think that this What they found was a clean, renewable geothermal program should play a larger role; we should get more of heat pump system that would save them money. “Our these projects funded.” A LL B Geothermal Heat Pump Quality Decorating $7,920 Grant Roseau, Minnesota 2007

Shirley Hovda knows the financial strain that Geothermal heat pumps are a good fit for many can come from heating businesses through the long businesses because they work efficiently in both USIN winters of the upper Midwest. Her Quality Decorating the winter and the summer, heating or cooling, and company, which replacing two separate specializes in custom systems. Hovda was wood finishing and attracted to geothermal

coatings, is located in for its efficiency and E Roseau, a northern for the fact that it can Minnesota town famous operate year-round. SS for its local high school The system at

hockey team. Quality Decorating E In February 2007, consists of a well Hovda faced a “body that is dug into the S check” of her own, ground which pumps courtesy of a $1,200 groundwater through natural gas bill. The pipes in the building. high heating costs The heat pump convinced her that a technology provides change was needed. After researching a number of heating and cooling, as needed, through both in- options, Hovda settled on a geothermal system to heat floor and forced air mechanisms. Hovda has been her newly constructed 6,000 square foot facility. With very pleased with the unit’s reliability. But the true help from a $7,920 grant through REAP, she was able satisfaction, she says, will come from seeing energy to purchase and install the system in January of 2008. bills that are 40% lower than in the past.

7 Geothermal, Energy Efficiency Family Chiropractic & Massage $12,801 Grant Enderlin, 2007

Dr. Maggie Peterson of Family Chiropractic & in five years. Massage in Enderlin, North Dakota knows that rural “The geothermal system just made sense,” she said. development is an opportunity that is best approached “It was the same cost as installing a conventional system, from the bottom up. The historic house she uses as and the operating costs are much lower.” The upgrades an office for her practice and expansion allowed Dr. seemed to be the ideal Maggie to hire two new candidate for an energy employees, and provide efficiency project, and the a market for four local

S adjacent garage was the farmers to sell their produce perfect place to build a six days a week. E small organic foods store “Everyone’s looking for for local farmers to sell their the big companies that will

SS produce. bring 1,000 new jobs to a Using a $12,801 community,” commented E grant from REAP and Dr. Maggie. “But if we only a $10,000 promissory focus on the big fish, we will note from the Enderlin miss all of the small fish that Economic Development are really driving our rural Committee, Dr. Maggie communities.”

USIN (as she is known) installed energy efficiency upgrades Asked if she could have done the project without and a geothermal heating and cooling system that will the support of REAP, Dr. Maggie said, “I don’t think so.

B cut her costs significantly. The REAP grant ended up Banks were willing to lend the money because I had the accounting for about 25% of her $52,000 construction backing of the REAP grant, and they trusted that the costs. She said she expects payback on her investment USDA knew that my project was a good one.” LL Solar Thermal A Red Lodge $26,390 Grant Red Lodge, Montana 2008

SM Sam Hoffman started in 1998, taking unit, using waste grease collected from his customers.

advantage of locally grown barley, hops and the clean Delivery trucks now drop off beer and pick up grease,

L mountain waters that flow through the small town of which is then used to fuel the Red Lodge delivery fleet. Red Lodge just north of Other innovations

A Yellowstone National Park. adopted by Hoffman include a Today, Red Lodge Ales may “Freeaire” refrigerator system now be one of the “greenest” for his large coolers that breweries in the country. exchanges chilly Montana When Sam needed to air from outside during the RUR expand his operation, he winter months, drastically wanted to incorporate more cutting his electric load and green energy into his new extending equipment life. facility and adopted several He’s also added wood stoves innovative approaches in for sustainable heat and solar energy with the help of ambience in public areas. a $26,390 REAP grant. Unfortunately, the Red The new Red Lodge Lodge Ales are only available facility sports an array of solar hot water panels in Montana, Wyoming and the greater Yellowstone that will provide space heat through floor heating in region. But maybe, with Hoffman’s ingenuity and drive, the winter, while providing hot water in the summer. we’ll be able to enjoy this “green” beer around the country Hoffman also constructed a production very soon. 8 Rural Electric Convenience Utility-Scale Wind $375,000 Grant Cooperative 2006 Farmersville, Illinois

Some might look at an abandoned coal mine is the Adams Electric Cooperative of Camp Point, as wasteland. Illinois’ Rural Electric Convenience which received a REAP grant in 2007. Cooperative saw a prime location for wind power. Using Rural electric cooperatives are tax exempt entities RUR a $375,000 REAP grant and additional assistance from so they cannot use the federal Production Tax Credit. the Illinois Department of Commerce and Economic REAP makes up some of the difference in lost Opportunity, the RECC constructed its first wind incentives. While the “Gob Nob” is the first turbine turbine atop the 60-foot heap of coal tailings left over that the co-op has commissioned, it may not be the from the mine’s active days. Dubbed the “Gob Nob” by last. “The door is open,” said Dana Smith, Director of A

locals, the 900 kW turbine began generating power for Member & Public Relations for the RECC. “There is L E the RECC’s 300 members in the Farmersville area on the possibility of up to three turbines at the same site.” March 4, 2009. “We need to see what kind of funding is available,” The RECC is the second rural electric cooperative noted Smith. “For our project to succeed, we needed that in Illinois to construct a wind turbine, following the assistance.” In the meantime, wind atop the Gob Nob L

lead set by the Illinois Rural Electric Cooperative of will be blowing, waiting for the turbines that will power EC Winchester two years earlier. Close behind the RECC the region in a clean, renewable, and reliable way. TRI C OO PE R A TI VE S

9 Geothermal Southern Iowa Electric Cooperative $165,340 Grant + Bloomfield, Iowa $165,340 Loan Guarantee 2007 When the Southern Iowa Electric Cooperative (SIEC) have been able to include [heating] the warehouse, and it began planning its new headquarters, its leaders wanted a would likely still be running on fossil fuels.” building that would reflect the The SIEC uses its building concerns of their customers and as an example for customers. demonstrate how clean energy The SIEC is promoting a “Take

S can save money. With the help Control and Save” program, of a $165,340 REAP grant from providing energy audits and the USDA and an additional rebates to customers for clean

VE loan guarantee, they were able to energy improvements. For install a geothermal heat pump geothermal alone, SIEC provides

TI to heat and cool their 12,000 members a rebate of $750 per ton square foot office and 22,000 for new systems in their homes A square foot warehouse. and businesses. “We needed to figure out The program is catching on. R how we could encourage our Aeilts said, “our rebate helps to customers to save energy in dramatically cut the payback time

PE their homes, and we concluded for these investments. What might the best way was to lead by have taken six or seven years to pay example,” said Mark Aeilts, CEO off is now taking only four.” of the SIEC. Geothermal systems reduce

OO The 90-ton geothermal electric loads in the summer and system in SIEC’s new facility lower gas bills in the winter. cost over $350,000, but REAP Aeilts said that the project funding helped make the project a success. “It certainly has many benefits. “It’s certainly a cost-savings, it uses a C broadened the scope of what we were able to do,” said reliable resource, and we’re able to be good stewards of Aeilts. “Without USDA grant assistance we would not the blessings God has given us here.”

Utility-Scale Wind TRI Nobles Cooperative Electric $500,000 Grant Worthington, Minnesota 2003

EC When the Minnesota legislature began considering construction allowed us to get into the wind business; to

L a statewide renewable electricity standard, Rick Burud, produce our own power to serve our members. That was General Manager of Nobles important,” said Burud. Cooperative Electric, knew Burud also manages that he had to move quickly the neighboring Federated L E if Nobles was to stay ahead REA, and helped it to

A of the renewable energy secure REAP funding for curve. Given their location its turbine. “We have pretty in breezy southwestern strong winds in this part Minnesota, wind power of Minnesota,” he noted. was the obvious choice. “Annually, we’re looking at

RUR Because Nobles is a a 33-34% capacity factor non-profit, it is ineligible for our turbine, but some for the Production Tax months it has been over Credit that provides 40%.” incentives for corporations Most importantly, with taxable income. That’s REAP funding helped where REAP helped. Nobles received $500,000 from make the project economical for Nobles. “It’s a tool that REAP, over 15% of the total $3.2 million cost. “This we needed in our tool box,” said Burud.

10 Energy Efficiency —R everse Osmosis Sechler’s Shack $6,050 Grant Somerset County, Pennsylvania 2007

When most people think of maple syrup, Vermont ratio drops to 1.2 gallons of fuel per gallon of syrup,” immediately comes to mind. But for Everett Sechler said Everett. Even with low energy prices brought and his wife, Chris, Southwestern Pennsylvania will do on by the economic downturn, Everett says he is still just fine. In 1983, the couple began tapping their own saving time and money. “The amount of time it takes trees in Somerset County and to produce our syrup has been have been growing their small almost cut in half,” he said, business each year since, always happily. making an effort to stay on the Everett is a pioneer of sorts cutting edge of technological in Pennsylvania, as he was the innovation. first maple syrup producer in the In 2007, they applied for commonwealth to receive REAP a REAP grant to install a new funding for a reverse osmosis E

reverse osmosis machine to project. The $6,050 he received N help separate the sugar from covered exactly 25% of the the water in maple sap. Usually project’s $24,200 cost, and other E done entirely through energy- producers in the area have taken RGY EFF intensive evaporation, reverse notice. osmosis allows 75-80% of water Asked what he thought of to be removed from the sap before boiling off the REAP grant funding, Everett said, “This is something remainder. The fuel savings are substantial. practical. It allows maple syrup producers to save “I used to use about 4.25 gallons of fuel oil to make resources and it helps the sugar maker to make choices one gallon of maple syrup. With reverse osmosis that that help the environment and our economy.”

Energy Efficiency — Energy Curtain Green Circle Growers $227,500 Grant Camden Township, Ohio 2008 I C

One of the most important resources in a Norman Baxter, Green Circle’s Chief Financial I greenhouse is heat. With 80 acres of greenhouse in Officer, emphasized the project’s quick payback. “With E its Northwestern Ohio operation and high natural gas the help of the grant, we’re looking at only 3-4 years N prices, Green Circle Growers realized that costs could before the energy savings will have made the energy quickly spiral out of curtain pay for itself.” C

control. It decided to Asked if Green Y be proactive. Circle would have In 2008, Green proceeded with Circle applied for a its energy savings $227,500 REAP grant project without to purchase and install REAP funding, an energy curtain on 12 Baxter replied, “It’s acres of its greenhouses, questionable. The with an estimated grant made it a definite energy savings of ‘go’ for us.” 43% in the covered Green Circle has area. The curtain, had such success with new technology from REAP on this project , allows light that it will be applying for the plants to pass through while holding heat that for another grant when it installs five new wood- would otherwise escape during the cold Midwestern burning boilers to replace its conventional natural gas nights. boilers later this year.

11 SOLAR ENERGY ENERGY EFFICIENCY farm in Connecticut and is expected to supply about about supply working to a on expected is installed and be to panel Connecticut in 78 first The farm the of barn. one main is the of array rooftop the on array solar kW able 15.6 a install was to Fund, Boar & Dove Energy Connecticut Clean the funding from additional and grant REAP $29,400 a of money. saving farm’s while footprint his y environmental l l reduce a wanted been t n to e and m n o conscious r i always v n e Association, has Organic Farming of Northeast member the a Huchthausen, Tim owner already Farm growing . and and chickens, and sheep raising Connecticut, zones the to directly water delivers it because REAP were which system, possible. install made to technologies irrigation hoped drip and subsurface efficient homework new a his earth did more and He soils that – available. – contractor” from “dirt moving knew a as and costs business his use, energy water high and system’s the costs. pumps operational high fueled had and diesel used old This system system. irrigation a gravity used he central recently, south Until Little in Nebraska. the in watershed Blue Juniata, near family acre farm 1,000 his on and corn grows He farmers. energy those REAP. the 240 from irrigation help Over with their use, water yields. cut often and crop have costs, farmers increase help Nebraska to irrigation Hampton, Connecticut Dove Boar & Farm Juniata, N Stromer Farms By taking advantage advantage taking By Hampton, in farm start-up a is Farm Boar & Dove efficient more is irrigation drip Subsurface about concerned was Darrell of one is Stromer Darrell using is that state farm leading a is Nebraska ebraska 12 supplier of the array, was most helpful in every aspect aspect every in process.” grant helpful the of most was the array, the of Renewables], supplier Atlantis [now Solarwrights “because installation is financed over 10 years. 10 over financed The is power. electrical installation for self-reliant farm the completely making almost needs, energy farm’s the of percent 85 As energy.” plants. and and water the ahead go saving me to of helped goals my meet directly funding because “This crops said, his Stromer for deliver better will be it also irrigation new should diesel reduce The of will costs. system also gallons maintenance system and 1,300 operation irrigation of The use annually. the fuel avoid and 50%, pressure system. the water the by throughout that surface correct be engineering ensured would soil Careful the Irrigation . beneath Eco-Drip the to water “Driplines” dispense plant. the of will reduce his fuel costs by nearly nearly by costs fuel his reduce will the of costs. 25% project’s about for pays process. facilitate grant The application helped grant REAP also the over irrigation by NPPD use an water 60%. cut The that would system audit. revealed energy an audit District the with jump-start project Power him helped Public (NPPD), Nebraska 2009 $25,977 G Energy Efficiency 2007 $29,400 G S olar Electric Mr. Stromer says the new system system new the says Stromer Mr. the utility, Stromer’s Mr. rant rant easy,” Huchthausen said, and said, Huchthausen easy,” flawless fairly grant was manner. the for “Applying a in specialty sustainable round year foods and fruits, eggs, prepared fresh grow vegetables, sell to and will them walk- which allow cooler, and in certified kitchen, heated a greenhouse, plan the includes of that five-year part farm’s is array The solar power power solar The Solar Electric Pinehold Gardens $4,940 and $8,310 Grants Oak Creek, Wisconsin 2004 and 2006

Pinehold Gardens, a community-supported farm solar technology as an answer to electricity costs. They in Oak Creek, Wisconsin, has become a solar pioneer in decided to add a second system, which would allow them to southeastern Wisconsin. With the help of grants from REAP, meet 100% of the farm’s electrical needs including irrigation, Sandy Raduenz and David Kozlowski, the farm’s owners, refrigeration, and heating their chicken house. The newer recently added their second system, added in October 2008, photovoltaic solar system to is 2.7 kW and is expected to their 21-acre and produce 3,438 kWh per year. farm. Again, they were able to make When they were the investment with the help of considering their first project, an $8,310 REAP grant. a 2.5 kW dual-axis tracker Kozlowski said the benefits installed in May of 2005, go beyond reducing the farm’s Raduenz joked that they would operating costs and increasing “probably” be alive to see their profitability. “The system,” expected 19-year payback. he said, “functions as a sort SOL However, through multiple of marketing tool for us too.” funding sources, including a Customers are already drawn $4,940 grant from the REAP to Pinehold Gardens because

program, an overachieving system, and rising energy costs, of the sustainable way in which they grow food, but with A they are recovering their investment faster than expected. the solar panels on-site, “people see it as a double bonus.” The solar tracker, which was supposed to generate 4,100 Raduenz said that her customers like the panels and that R E kWh/year has bested expectations, averaging 4,400 kWh/ the farm has gotten more attention because of them. “We’ve year over its first three years of operation. been on the Midwest Renewable Energy Association’s solar This performance bolstered the pair’s confidence in tour for three or four years . . . it’s a really great thing to do.” N Solar Electric Whispering Pines Fish Farm $23,125 Grant E

Holland, New York 2006 RGY

On a frigid January day in 2007 with wind chills dipping from a New York state energy program and tax credits at both well below zero, Stephen Welk installed a solar photovoltaic the state and federal levels. “Without any one of those, I would system on his fish farm in Holland, New York. Welk, who not have done it,” Welk noted of his project, the total cost of has been involved with which was about $93,000. aquaculture for more than Thus far, he has been very 20 years, raises nine different happy with the performance species of fish including of his system, which has perch, , and bass. These supplied about one-third fish are then sold as sport fish of the farm’s energy. Welk for stocking rivers and lakes says he is confident in the in the area. After taking a technology and he knows that course in solar technology, he it works, even if it would have became interested in a new been pricey in the absence of catch: installing a functioning support from programs like solar electric system on his REAP. His system has been own farm. very dependable, producing With a grant of $23,125 11,000 kWh over a twelve- from REAP, he was able to install a 10 kW system on his month period. On its best day of production, Welk’s system property. In evaluating the feasibility of his project, Welk produced 67 kWh. Now, Welk loves “just sitting back and stressed the importance of securing funding from multiple watching the meter spin” as he avidly tracks the system’s daily sources. Aside from the REAP grant, he received support clean energy production.

13 Small-Scale Wind Sylvan Nursery $33,144 Grant Westport, Massachusetts 2007

Massachusetts does not leap to mind as a top an unconventional place. “It was first a cost savings wind energy producing state, but Sylvan Nursery and investment for us,” said McBratney. “Secondarily it many of its neighbors in Westport are finding small was an environmental decision, but fundamentally wind a prudent investment. In 2007, Sylvan received we just hated being beat with a stick because of high a $33,144 grant through REAP to install two 10 kW energy costs.” wind turbines at its facility. There are other benefits The grant covered 25% of as well, he noted. “The the project’s cost, and with community appreciation is additional funding from the really there. The novelty of Massachusetts Technology the project certainly hasn’t Collaborative, payback worn off.” The Sylvan project on the investment will be sparked others when word achieved quickly. spread quickly. Within a ten- “The small nature of mile radius of Sylvan, eight the turbines makes them similar turbines have been less intrusive,” says Jim erected. McBratney, President and While McBratney General Manager of Sylvan. calculates Sylvan’s payback for “But they still generate up the project at eight years, he rgy rgy to about 70% of the electricity used by the buildings says that’s a conservative estimate. “To legislators thinking

e they supply.” about funding this type of project, I say ‘Go for it.’ This is Sylvan Nursery is a great example of how renewable the right thing to do. It spurs on the industry and allows energy technology can realize cost savings, even in new, better technology to reach the market.”

Utility-Scale Wind Crosswind Energy Project $2,326,000 for 10 Grants + Ruthven, Iowa $250,000 Loan Guarantee d En 2007

With the help of REAP, a group of rural Iowa as it would from an outside developer. The addition of entrepreneurs joined together to develop a locally- Crosswind Energy to its power supply mix brought the owned wind farm that produces clean power, energy renewable content of its members’ electricity to nearly

Win independence and economic development. 15%. Crosswind Energy Project was one of Iowa’s first Wind farms bring new investment and jobs to locally owned wind farms. rural economies but local The project consists of 10 ownership, such as the farmer-owners pooling their Crosswind Energy Project, investments for a 10-turbine retains even more wealth wind farm totaling 21 MW of in the community. What’s clean generation capacity. more, the community REAP was key to project roots bring a shared sense financing because local farmer- of purpose with the local owners cannot directly use the community, building wind federal Production Tax Credit. farm support. In forming a partnership with Edison Mission Energy Community ownership also grows energy (EME), the entrepreneurs used REAP as a source of independence. Crosswind Energy generates enough equity investment, while EME uses the tax credit. power to meet the annual electricity needs of Palo Alto During the 10-year life of the tax credit, EME owns most County. of the project. Soon thereafter, the local investors will Crosswind Energy demonstrates how REAP can assume ownership. Corn Belt Power in Humboldt, Iowa yield multiple benefits for clean energy, rural economic purchases all of the power from the local company, just development and energy independence. 14 Small-Scale Wind Solar Enterprises $15,375 Grant Winamac, Indiana 2009

Glen White found that his 35-acre farm in Northern decided to purchase a Bergey 10 kW wind turbine. A Indiana could be a prime location for renewable energy local metal fabricator built the tower and is now ready growth. REAP provided the seed that allowed his to make more. family’s business to grow during a recession. Mr. White The wind turbine has performed as well as the is now in the solar and wind power business in addition solar, producing enough power to meet the electricity to livestock and construction. needs of his Indiana farmstead. And the construction Mr. White first tried solar water heating on his and energy businesses have created more employment farmstead, using evacuated tube collectors, with for him and his workers to fill out the year. success. He decided solar was ready for the market and Investing in a new venture in early 2009 was risky has been selling and installing solar energy systems for given the dire economic conditions. REAP incentives several years. made his wind turbine feasible. White has since plowed By the way his flag snapped in the breeze White his clean energy savings back into growing a clean knew he also had a wind energy resource he could energy enterprise. tap. He made a winter project out of researching wind “We can see steady growth in this field but we need

power resources around the world. Ultimately, Glen to educate people on the possibilities,” said Glen. W

Utility-Scale Wind

Buttercreek Power, LLC $500,000 Grant IN Echo, Oregon 2007

Kent Madison has always tried to stay on the operational control. After their corporate partner realizes D E cutting-edge of farm technology. His third generation a return on investment, in 10-12 years, local ownership family farm in the foothills of the Blue Mountains in and revenues flip to 95% for the remainder of the project Eastern Oregon grows , corn, alfalfa, potatoes, life. N and canola, and he makes biodiesel fuel from canola. Madison points out that REAP “allows us to own a

Given his previous success with innovative bigger share of the turbines more quickly.” The project E projects, Madison recently decided to add wind power also demonstrates the close connection between locally to its harvest with the help of a REAP grant. owned farm energy and rural economic development. RGY He joined forces with a wind developer and one of his neighbors to build the project more efficiently. They shared the costs of construction equipment, negotiated a better contract with John Deere Renewable Energy, and in the end expanded their installed capacity to 64 MW of clean wind power. Madison’s portion of the project eventually included three Vestas V82 1.65 MW turbines. The project was organized with a “flip” financing structure, where Madison started with a 1% of ownership and 51% of

15 2008 Farm Bill Clean Energy Programs

2008REAP is Farm one of anBill array Clean of innovative Energy 2008 Programs Farm Bill Energy Title farm energy programs in the 2008 Farm Bill. Mandatory Funding Taken together, these programs provide a great Repowering Assistance Biobased Markets & Biomass 3% Biodiesel Fuel Education opportunity to produce more clean energy from Crop Assistance* 1% ms farms, ranches, other agriculture operations and 6%

a rural small- and medium-sized businesses. Total mandatory funding for the Energy Biomass R&D Title averages $280 million a year, compared 11% to $160 million annually in the 2002 Farm Bill. Biorenery Assistance However, comparing the 2002 and 2008 Farm 29%

Bills is not “apples to apples” – program funds are Advanced Biofuels now allocated differently and more favorably for / rogr REAP cleaner energy. For example, mandatory funding 23% 27% for REAP more than doubled from $115 million to $255 million. The 2008 Farm Bill also includes $400 million in cellulosic ethanol tax credits. You can learn more about these programs at FarmEnergy.org. *Congress did not limit BCAP funding. While this chart uses the federal budget estimate of $70 million over 4 years, actual BCAP rgy p rgy spending will be much larger. e Biomass Crop Assistance Program (BCAP) Other Programs with Mandatory Funding n This program incentivizes farmers and others to »» Biomass Research and Development grow and harvest sustainable biomass energy crops like Accelerates new biomass energy technologies switchgrass and other prairie grasses or fast growing through cost-share funding for research by trees. BCAP helps to solve the “chicken or egg” dilemma companies, universities and government. n e that is delaying the commercialization of advanced »» Bioenergy Program for Advanced Biofuels biofuels – no markets for producers and no Pays biofuels producers to produce advanced energy projects because no supply of energy crops. By biofuels, defined as most biofuels except corn ea providing grants for establishing, growing, harvesting, -based ethanol. collecting, storing and transporting energy crops, l »» Biobased Markets Program BCAP can encourage farmers to grow low-carbon, Expands the federal preference for biobased sustainable energy crops at a profit. product labeling guidelines. Assistance »» Biodiesel Fuel Education Program Inconsistent federal funding has delayed Continues this existing program. commercialization of advanced biofuels like cellulosic ill c ill »» Biofuels Infrastructure Study ethanol. The Biorefinery Assistance program provides USDA to assess the infrastructure requirements grants and loan guarantees for emerging technologies. for biofuels production and transport. Demonstration scale plants are eligible for grants up to 30% of costs, and commercial scale plants are eligible Other Programs with Only Discretionary for loan guarantees for up to $250 million per plant. Funding (subject to appropriations) rm b Repowering Assistance »» Rural Energy Self-Sufficiency Initiative

a This program helps ethanol plants reduce their Helps rural communities improve energy independence through building improvements

F carbon footprint and pollution by burning energy crops and other renewable biomass instead of coal and renewable energy production. or natural gas in plant boilers. In addition to cutting »» Forest Biomass for Energy pollution, the program helps to create new markets for Research and development to encourage use of energy crops. “low-value” forest biomass for energy. 16 2008 Farm Bill Clean Energy Programs F a rm b rm ill c l ea n e

Unloading bales at the Show Me Energy Cooperative in Centerview, Missouri. »

» Community Wood Energy ethanol excise tax credit (“blender’s credit”) from 51 n Helps state and local governments install wood cents to 45 cents per gallon, subject to some limitations.

energy systems in community facilities. e

»» Renewable Fertilizer Study Other Provisions rgy p USDA to assess the viability of producing Several other provisions in the 2008 Farm Bill nitrogen fertilizer from renewable resources either directly or indirectly encourage more farm-based (such as wind power) in rural areas. energy production and energy efficiency. For example, Title II of the bill significantly increases the size of Tax Credit Incentives the Conservation Stewardship Program (formerly the A new cellulosic biofuels production tax credit Conservation Security Program), which among other for up to $1.01 per gallon is available through 2012. things encourages farmers to use energy-saving best rogr This credit will be available for cellulosic biofuels practices. A new Sun Grant program in the Research Title produced from agricultural waste, wood chips, encourages biobased energy technology development perennial energy crops and other non-food feedstocks. (although this program did not receive any mandatory Congress helped to pay for that credit and other funding), and other Research Title programs also focus tax credits in the Farm Bill by reducing the volumetric on clean energy development. a ms

Learn more about these and other clean energy programs in the Farm Bill at FarmEnergy.org

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