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FARM Energy Success Stories New Farm INcome 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 agriculture new renewable energy 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 economies, 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 carbohydrate 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, biomass and biofuels. 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, accounting, 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 barn 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 ms A rgy Progr The Rural Electric Convenience Cooperative’s Gob Nob turbine in Farmersville, Illinois. E The United States faces historic energy Benefits of expanding farm energy challenges to our economy, 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 n En 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 EA 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 rm Bill Cl pollution. can today provide clean energy for jobs, security REAP and other Farm Bill clean energy and the environment for those who follow us. A programs accelerate the research, development F 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 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 E added in the 2008 Farm Bill, demand for REAP support 40 ri continues to outpace resources. 20 CA REAP funding Totals 0 by Technology 2003-2009 2003 2004 2005 2006 2007 2008 2009 n Grant requests Appropriated funds Loan guarantee requests s Improvements in 2008 farm Bill u Wind 15% In 2008, Congress improved REAP in several major 27% ways: CCE 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% ss » Feasibility Study funding – to help assess the Hybrid 1% viability of new projects and improve program Geothermal 1% effectiveness. Hydropower1% s » – increases limit from Larger Loan Guarantees tory $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. “Milk prices 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.”
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