CIFT News


CIFT Hosts Clean Energy Funding Opportunities Workshop



On September 12, 2008, CIFT hosted a clean energy funding opportunities workshop at the Sawmill Creek Resort & Conference Center in Huron, Ohio. Attendees listened as USDA and Ohio Department of Development representatives discussed federal and state funding opportunities for agricultural producers and small rural business wishing to implement energy efficiency improvements or install renewable energy systems.

A representative from the Environmental Law and Policy Center discussed details of the upcoming 2008 Federal Farm Bill Rural Energy for America Program (REAP) and its implementation schedule and provided guidance and strategies for writing successful energy grant proposals.

Ohio 9th District Congresswoman Marcy Kaptur and Thomas Dorr, Under Secretary for USDA -Rural Development, were in attendance providing opening remarks and presenting a total of $348,712 in 2008 Ohio USDA renewable energy and value-added agriculture grants to three Northwest Ohio companies.

With Congresswoman Kaptur and USDA Under Secretary Dorr presiding, Mr. Randy Hunt, USDA Rural Development - Ohio, announced the grants for 2008. Two grants are part of the USDA Section 9006 Renewable Energy and Energy Efficiency Improvement Program and were presented to Green Circle Growers, Inc. of Oberlin, Ohio and PPI Properties, LLC of Milan, Ohio.

Green Circle Growers, Inc. received $227,500 to install greenhouse retractable energy curtains. These curtains act as a thermal blanket and prevent heat from escaping overnight. This project will reduce greenhouse energy usage by up to 43%.

PPI Properties, LLC received $23,712 to install a solar photo-voltaic system for onsite electricity production. This project will reduce energy costs by an estimated 15%.

The third grant is part of the USDA Value-Added Agricultural Marketing Program and was presented to Chef's Garden, Inc. of Huron, Ohio. This grant totals $97,500 and will be used to complete a feasibility study to determine if surplus naturally grown produce can be further processed to meet market demand.



Please view the presentation slides...



Please view the event video...

Workshop handouts...

USDA links...

Ohio Energy Office program links...

Environmental Law and Policy Center and Farmenergy.org links...



Randy Monhemius, USDA Rural Development - Ohio, presented an overview of REAP. He discussed the purpose of the program - to promote energy efficiency and renewable energy for agriculture and rural small businesses, its administration through USDA Rural Development and its funding mechanisms - loan guarantees and grants. Mr. Monhemius noted that, under the 2008 Farm Bill, funds will be available for energy audits and renewable energy feasibility studies, as well as, the projects themselves.

The projects covered under the REAP include alternate energy installations and energy efficiency improvements. Mr. Monhemius provided examples of alternate energy projects that have received funding or are projected to receive funding, including:

Examples of energy efficiency improvements included:

Possible future projects include hydrogen, wave action and hydroelectric technology grants and loan guarantees.

Mr. Monhemius also covered program applicant and project eligibility requirements and the program review process noting that USDA evaluates the financial feasibility of a proposed project while the Department of Energy (DOE) and the National Renewable Energy Lab (NREL) perform the technical feasibility reviews.



Mr. Jim Zuber of the Ohio Department of Development, Ohio Energy Office provided an update on Ohio advanced energy projects and an overview of Ohio's new alternative energy policy initiatives. This discussion centered on Ohio's energy economy, its new energy policies, the role of the Ohio Energy Office, and financial and technical resources available to those contemplating an alternative energy project in Ohio.

Mr. Zuber summed up Ohio's energy economy noting:

Advanced energy opportunities lie within Ohio's energy economy. Ohio's current standing in the industry and its resources are pluses for alternative energy development in the state. Mr. Zuber noted:

Mr. Zuber discussed Ohio's new energy policy and described advanced energy utilization and energy efficiency standards provided by recently passed legislation (SB221). He also noted that these standards, known as portfolio standards, are the third most aggressive standards in the US, behind California and Illinois, respectively. They are helping to entice new alternative energy companies to locate in Ohio because the portfolio standards show Ohio is seriously committed to alternative energy development.

In an overview of the Ohio Energy Office, Mr. Zuber described two programs, EnVinta and the Great Lakes Wind Network (GLWN). EnVinta is an energy program that takes a business approach to energy management. EnVinta's goals are to reduce a company's energy costs with a resultant improvement in its financial bottom line. It is a three stage program where a company's energy philosophy is evaluated and business systems issues are identified; potential solutions are analyzed and selected; and solutions are implemented. The Ohio Energy Office can provide funding for solution analysis and partial funding for solution implementation. The program also connects companies to other supply chain companies (OEMs and component makers), Ohio resources (research, innovation, workforce and manufacturing capacity), and local and state agency efforts.

The GLWN's goal is to expand and promote Ohio's wind supply chain. It is sponsored by the Ohio Department of Development in partnership with the state's regional Edison Centers and universities. GLWN is encouraging Ohio manufacturers to manufacture wind turbine components for the alternative energy industry. So far, GLWN has identified 80 to 100 Ohio manufacturers that have the potential to manufacture wind turbine components.

Mr. Zuber wrapped up the discussion with an overview of available alternative energy financial resources. These include federal resources such as the US Department of Energy's State Energy Plan (SEP), special SEP projects and state resources such as the Advanced Energy Program and Transportation Energy Grants.

The Advanced Energy Program is an economic development tool that provides energy-related funds to companies located within the Ohio investor-owned utility territories. The Distributed Energy Resources Projects Program and the Renewable Energy Program are two of its current programs. The Distributed Energy Resources Projects Program provides advanced energy grants to point of use energy sources. Its projects include combined heat and power, clean burning, and landfill/methane power generation installations. The Renewable Energy Program provides funds for projects located within the Ohio investor-owned utility territories. Eligible projects include solar electric, solar thermal and wind installations.

The Transportation Energy Grants include the Alternate Fuels Transportation Grant and the Biodiesel B20 School Bus Program. The Alternative Fuels Transportation Grant provides funds for E85 ethanol and biodiesel retail distribution installations at existing and new facilities and also provides E85 and biodiesel educational materials. The Biodiesel B20 School Bus Program covers the incremental cost of using B20 and is available to school districts, local K-12 agencies and Mental Retardation and Development disabilities (MRDD) programs.



Mr. Andy Olsen of the Environmental Law and Policy Center discussed the the energy provisions of the USDA Farm Bill including the purpose of the bill's clean energy provisions and an overview of the 2002 and 2008 Farm Bill energy components. Andy also discussed strategies for writing successful energy project grant applications.

The Farm Bill energy provisions provide three benefits: cutting costs and developing new income streams for rural areas; contributing to environmental progress by improving air and water quality; and bolstering national security by protecting the economy from energy supply disruptions.

In his discussion of the 2002 USDA Farm Bill, Mr. Olsen noted that, of the $405 million in mandatory energy funding, half went to the Commodity Credit Corporation for ethanol and biodiesel and half for Section 9006 grants, biomass R&D, the Federal biobased products purchasing preference program and biodiesel fuel education.

The Section 9006 Renewable Energy and Energy Efficiency Improvements Program, which ran from 2003 through this year, provided farmers, ranchers and rural small businesses with grants and loan guarantees for energy projects using a wide range of technologies. Mr. Olsen discussed the 2003 - 2008 awards distribution and presented funding breakdowns including total funding by technologies; number of grants by technologies; and state-by-state total funding.

Mr. Olsen discussed the 2008 Farm Bill energy provisions contained in the tax, research, rural development and energy titles of the bill. The tax title includes $403 million in tax credits for cellulosic ethanol and the research title includes funding for renewable energy and biofuels research programs. The rural development title provides more funding for rural electric cooperatives.

Energy title mandatory funding has increased to $1.1 Billion over four years. Discretionary funding has increased to $1.1 billion. Mandatory funding provides money for:

Energy title discretionary funding includes money for:

Noting that the USDA Section 9006 program has been renamed the Rural Energy for America Program (REAP), Mr. Olsen discussed the new provisions of the REAP Program, as well as, its opportunities.

Opportunities include improved financial viability of agricultural concerns, improved chances of obtaining financing for projects with positive NREL technical reviews and the greening and repowering of ethanol plants. New provisions include funding for energy technical assistance such as energy audits and feasibility studies; increased loan guarantees and expanded eligibility; support for small replicable projects; and improved program outreach.

Mr. Olsen noted that the REAP is in the rule-making phase and USDA will release funding notices over the next few months. He recommended that prospective applicants start planning their funding proposals now including organizing projects and performing both energy audits and feasibility studies.

Mr. Olsen provided examples of projects funded by the USDA Section 9006 program. These included:

Andy Olsen wrapped up his presentation by discussing successful funding submission strategies. Mr. Olsen noted the keys to success and the pitfalls to avoid, as well as, the importance of teamwork among applicants, state and local agencies and industry organizations. Successful proposals require that applicants:

Among the pitfalls to avoid, Mr. Olsen listed:

Mr. Olsen noted that states with coordinated application assistance strategies do well in the program. State agencies and industry organizations can provide letters of support and provide help with applications. Replicating applications for the same technologies can increase the number of successful applications.





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