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ELPC Commends Senate Agriculture Committee Support of Homegrown Energy

WASHINGTON – The Senate Agriculture Committee took an important step to support America’s farmers, renewable homegrown energy, rural development and national security by funding core energy programs through a Farm Bill amendment passed today.

“We commend Chairwoman Sen. Debbie Stabenow (D-Mich.) and the bipartisan group of 11 Senators who supported a bipartisan amendment supporting mandatory funding for programs that reduce dependence on polluting fossil fuels and help farmers cut energy costs and produce innovative renewable energy for America,” said Andy Olsen, Senior Policy Advocate with the Environmental Law & Policy Center.

“The state of the economy and our continuing energy challenges underscore the need for programs like the REAP (Rural Energy for America Program) and  BCAP (Biomass Crop Assistance Program) which generate rural development and provide a safety net to farmers,” Olsen said.

“We thank the energy title supporters, Senators Kent Conrad (D-N.D.), Richard Lugar (R-Ind.), Tom Harkin (D-Iowa), Ben Nelson (D-Neb.), Michael Bennet (D-Colo.), Sherrod Brown (D-Ohio), Amy Klobuchar (D-Minn.), John Thune (R-S.D.), Bob Casey (D-Pa.), John Hoeven (R-N.D.), and Charles Grassley (R-Iowa) for their support of an Energy Title amendment that provides mandatory funding of these core energy programs,” Olsen added.

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The Environmental Law & Policy Center is the Midwest’s leading environmental legal advocacy and eco-business innovation organization.

ELPC and the Environmental and Energy Study Institute (EESI) gathered experts on agriculture and clean energy development in Washington on Tuesday, July 19 to address the Rural Energy for America Program (REAP) and other Farm Bill energy programs. Speaking to over 150 staffers and stakeholders in separate House and Senate briefings, they explained the broad benefits of these programs for farmers, businesses, economic development and national energy security policy.

Panelists were:

• Bruce Knight, Dairy Advisor for Strategic Conservation Solutions, LLC and former Chief of the Natural Resources Conservation Service at the USDA under President Bush. Download presentation (PDF).
• Bennie Hutchins, Principal, Ag Energy Resources, Mississippi. Download presentation (PDF).
• Bill Midcap, Farmer and Rural Development Specialist, Rocky Mountain Farmers Union, Colorado. Download presentation (PDF).
• Andy Olsen, ELPC Senior Policy Advocate. Download presentation (PDF).

Other speakers at the briefings included EESI Executive Director Carol Werner and ELPC Director of Federal Relations Karen Torrent.

Energy Title Overview

The first panelist, Andy Olsen, provided a high level overview of how the Farm Bill is accelerating energy savings and clean energy production, supporting rural economic development in the process. Olsen emphasized that the private sector has responded positively to these programs with ingenuity and the American “can do” spirit. For example:

• Advanced biofuels production – The USDA has moved quickly with the Biorefinery Assistance Program, providing loan guarantee financing to build cellulosic ethanol, community digester, and other biofuels/biopower facilities. USDA is accelerating approval of these guarantees and plants are now under construction in several states, with a concentration in the Southeast.
• Energy crops – Although the Biomass Crop Assistance Program got off to a rocky start in 2009, the USDA made several key changes and the 2011 program is now back on track. USDA refocused BCAP on energy crop development and now more than 95% of all funding is for establishing and growing energy crops. BCAP should be judged on the basis of the 2011 program.

Focus on the Rural Energy for America Program

Olsen and the other speakers also highlighted how the Rural Energy for America Program (REAP) serves every agricultural sector in every state, sparking private sector investment and innovation and retaining and creating much needed jobs in rural America.  REAP now has helped to finance more than 6,000 projects across the country – see map below.

Bennie Hutchins

Bennie described the growing popularity and use of REAP in the South, focusing on the strong benefits to poultry producers in slashing energy costs and producing renewable energy. REAP also has helped fund energy projects in aquaculture and forestry. Hutchins emphasized the great benefits for rural small businesses, such as “Mom and Pop” grocers who can use REAP to cut energy costs.

Bruce Knight

Bruce described how consumer demand has led the dairy industry to shift towards more sustainable practices through the whole dairy supply chain. Sustainability is “no longer a philosophical movement,” he said, “it’s now a consumer response.” Knight added that the dairy industry has been very responsive to this consumer demand, pursuing a broad and aggressive program to cut energy use and produce renewable energy and other coproducts from cow manure.  REAP is key to many of these efforts.

Bill Midcap

Bill explained that electric cooperatives are member owned and many of them offer great opportunity for locally-owned projects. He showed how many rural electric cooperatives have used REAP in innovative ways, such as: using the energy audit and renewable energy development assistance program to identify new projects; using feasibility study funding for their own coop-owned projects; grants to build their own systems; and combining multiple projects on customer properties under one master grant. He stressed that “REAP plus rural electric cooperatives can turn electric consumers into electric producers.”

Video

Click here to view the embedded video.

Michigan Senator Debbie Stabenow, Chairwoman of the U.S. Senate Agriculture, Nutrition and Forestry Committee, recently highlighted the importance of the Rural Energy for America Program (REAP) for energy creation and job growth. In this article, published on June 30, 2011 in the Huron Daily Tribune, she explained how REAP and other Farm Bill energy initiatives are helping farmers and rural small businesses invest in clean energy projects and boosting job creation and employment.
From the Huron Daily Tribune 06/30/2011

Energy production crucial part of Farm Bill

It may surprise you that Henry Ford was one of Michigan’s greatest agriculture pioneers. Nearly 100 years ago, he knew thatagriculture could be a source of homegrown energy. Ford once told a reporter that “the fuel of the future will come from apples, weeds, and sawdust – almost anything.” Energy production  is an important part of Michigan agriculture. That is recognized by the federal Farm Bill, which is updated ev ery five years. The Farm Bill includes an entire section devoted to energy from agriculture. As the Chair of the Senate Agriculture Committee, I am focused on writing a new Farm Bill that will help us reduce our dependence on foreign oil and support the work our Michigan producers are doing to become energy independent. Thanks to the work we did in the last Farm Bill, farmers and small business owners across Michigan have taken advantage of new energy  opportunities. They are creating energy from animal waste, installing solar panels and wind turbines, making  plastics from plant sources, and converting crop and forest residue into fuel. Each of these new opportunities also creates jobs for workers who design, build, market, and install these new products, creating a win-win for Michigan’s economy.

One example is Jim Reid, who testified  at our first Farm Bill field hearing  in East Lan sing last month. At our hearing, he spoke about how the last Farm Bill helped him reduce energy costs on his dairy farm in Jeddo, Michigan. That Farm Bill included a program called Rural Energy for America, or REAP, which helps farmers  and small business owners save money on their energy bills.

Mr. Reid used REAP to buy solar panels from Michigan Solar and Wind Power Solutions, a Michigan small business, and installed the panels on the roof of his barn. His energy bills are so much lower that he expects his new solar panels will pay for themselves  in just three years.

And these renewable energy programs  aren’t only for farmers – small business owners across Michigan are also tapping them. Lowell McDonald, who runs a local family-owned grocery store in Huron County, has used the program to cut back on energy bills as well. Since November, McDonald has saved nearly $7,000 on energy costs by installing a heat recovery system. McDonald tapped the innovation and expertise of a local Michigan business to install the system, continuing to support Michigan’s economy and support  local, small businesses.

These are examples of how the Farm Bill turned out to be a win-win for Michigan’s economy. Producers pay lower energy bills, and small businesses  create new jobs by supplying farmers and other business owners with new equipment.

As we move forward on writing the next Farm Bill, I will keep building  on the great strides we have made and realize the potential recognized by Henry Ford more than 100 years ago. By making the right choices, we can help our farmers save money while creating new jobs in every part of Michigan.

Senator Debbie Stabenow is Chair of the Senate Agriculture Committee.

Hundreds of farmers, ranchers and rural small businesses are making greater profits and slashing energy costs with REAP.

Join the Environmental Law & Policy Center, the South Dakota Famer’s Union, River Electric Power Cooperative and your local Touchstone Energy Cooperatives to learn how you can take advantage of REAP.

At the meetings, experts will share important information about program eligibility, energy audits, and other specifics about applying. There will be opportunities to ask questions about REAP and find out if it’s right for specific farms, businesses or communities.

The REAP was included in the 2008 Farm Bill and is administered through the United States Department of Agriculture (USDA). REAP provides grants and loan guarantees to farmers and rural small businesses for renewable energy (bioenergy, geothermal, hydrogen, solar, wind and hydro power) and energy efficiency projects.

Meeting Dates and Locations:

Tuesday, December 14

1:00 p.m. – 3:00 p.m.
Codington County Electric Cooperative
3520 9th Ave SW
Watertown, SD

Wednesday December 15

1:00 p.m. – 3:00 p.m.
Swiftel Center
824 32nd Ave
Brookings, SD

Thursday December 16

1:00 p.m. – 3:00 p.m.
Beresford Public Library
115 S. 3rd St
Beresford, SD

Hundreds of farmers, ranchers and businesses are making greater profits and slashing energy costs with REAP.

Mindi Grieve of the Environmental Law & Policy Center and Dennis Rodin of USDA’s Office of Rural Development explained the program and answered questions.  You can listen to the webinar and view slides from the discussion to learn how you can use REAP to make your energy efficiency or renewable energy project a reality.

Webinar Recording

USDA REAP Presentation

ELPC REAP Success Stories and Application Tips

One program that’s made thousands of new clean energy projects possible is the USDA’s Rural Energy for America Program (REAP). ELPC’s Farm Energy Success Stories report highlights clean energy projects on farms and rural small businesses across the country that are saving money, creating new income and reducing pollution. ELPC is advocating to expand REAP and other farm energy programs. Listen to the interview here.

According to Moore, several government policies have helped spur the development of wind power in rural America. Listen to the interview on the Brian Allmer Radio Network (BARN).