FOR IMMEDIATE RELEASE

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.

The Senate Agriculture Committee draft would inflict steep cuts to programs, including REAP (Rural Energy for America Program), BCAP (Biomass Crop Assistance Program), and Biorefinery Assistance.

These programs have pushed innovative energy development and provide a safety net for farmers. (Click here to learn about the accomplishments of the 2002 and 2008 Energy Title.)

Without mandatory funding for these programs, they will wither, rolling back advances in clean, homegrown energy and placing rural jobs in peril. Contact the committee to demand mandatory funding of the energy title.

In 2011, the Rural Energy for America Program (REAP), just one program impacted by proposed cuts:

• Created or saved 7,000 jobs
• Cut greenhouse gases by almost 2 million metric tons
• Saved the equivalent of over 2 billion kilowatt-hours of electricity
• Generated $456 million in investments in our communities

“We thank the Senators for including Energy Title programs in the new Farm Bill in the difficult climate they face, especially the leadership from Senators Stabenow, Lugar and Harkin.  We also hope the Agriculture Committee can restore mandatory funding to these core clean energy programs that mean so much to our rural communities and to our nation,” said Andy Olsen, senior policy advocate with the Environmental Law & Policy Center.

“BCAP is an important and unique program that develops new biomass energy crops that can boost farmer income while providing a new energy source for the nation. It has potential across the country,” said Steve Falck, Senior Policy Advocate for the Environmental Law & Policy Center (ELPC).

The USDA will review the proposals and select producers or biomass facilities for the BCAP Project Areas. The growers will qualify for establishment or annual payments.

BCAP was first created in the 2008 Farm Bill. In FY2011, USDA selected nine project areas, approving more than 860 grower contracts for camelina, hybrid poplar, warm season grasses and giant miscanthus on almost 50,000 acres. The total investment in those projects is estimated to be $55 million.

In November 2011, Congress passed appropriations for 2012 limiting the total amount of BCAP funding to $17 million, reducing the potential number of projects and investments.

The Request for Proposal and additional information can be found at http://www.fsa.usda.gov/bcap.

To apply for a BCAP grant:

1.    Go to www.grants.gov.

2.    On the left side of the page, click on “Apply for Grants.”

3.    Click on “Download a Grant Application Package.”

4.    Type “10.087” in the box with the heading “CFDA Number” and click on “Download Package.”

WASHINGTON, D.C. – More than 100 diverse groups representing agriculture, energy, rural development and conservation called on Congress today to renew and fund core energy programs in the Farm Bill that push forward clean, homegrown energy. These programs advance energy efficiency, wind, solar, new energy crops, biomass energy and biobased products.

In a joint letter to the leaders of the House and Senate Agriculture Committees, signers noted, “These important and growing industries all benefit agriculture and forestry and are poised to make huge contributions to our economic, environmental and national security in the coming years, provided that we maintain stable policies that support clean energy.”

The energy programs are administered by the USDA and have made a number of accomplishments since the first Energy Title was created in the 2002 Farm Bill:

* The Rural Energy for America Program (REAP) has supported nearly 8,000 energy efficiency and renewable energy projects across the nation in varying agricultural sectors.

* The Biomass Crop Assistance Program has assisted farmers in developing homegrown energy crops that support farms and supply needed energy sources

* Biofuel advancements have accelerated through support from the Biorefinery Assistance Program.

“This letter arrives at the Agriculture Committees as rising gasoline prices remind America that our long-term energy challenges to our nation’s well-being require long-term commitment,” said Andy Olsen, ELPC Senior Policy Advocate. “Polls show the American people believe the Farm Bill should support clean energy and we know Congress can pass a Farm Bill that reflects the will of the American people.”

Download the letter.

“Olsen says biomass projects such as Show Me Energy serve multiple policy goals. They’re a source of cleaner-burning, homegrown energy, and the crops they use as feedstocks can help reduce soil erosion, improve air and water quality and conserve wildlife habitat.”

Read the story.

“We commend the experts and Senators who took a stand for homegrown clean energy today,” says Andy Olsen, Senior Policy Advocate at the Environmental Law & Policy Center (ELPC), a long-time champion of the Farm Bill’s clean energy programs. “Through these programs, America has made unprecedented gains in rural renewable energy and energy efficiency. Congress and the White House should continue this forward momentum.”

Steve Flick, one of the nation’s farm energy entrepreneurs, called for Congressional action to renew and fully fund core Farm Bill clean energy programs, such as the Rural Energy for America Program (REAP), Biomass Crop Assistance Program (BCAP) and the Biorefinery Assistance Program. “America’s farmers, ranchers and rural residents can have a bright future ahead of them with the right incentives,” Flick says. “Renewable energy is the future of rural America.”

Bennie Hutchins of Mississippi provided numerous examples of how REAP has helped agricultural producers and rural small businesses save money and produce income across the South. He shared ELPC analysis showing that REAP produces jobs at a greater than average rate.

“Farm Bill clean energy programs have been an unprecedented success. They have helped farmers reduce their energy bills and energy waste through energy efficiency and accelerated the introduction of modern clean energy technologies into the marketplace,” Olsen says. “Congress and the White House should continue this momentum by renewing and fully funding core Farm Bill clean energy programs.”

Of all the Farm Bill clean energy programs, the President’s budget only recommends funding the Rural Energy for America Program, REAP, at $4.6 million in 2013. This funding level is a cut of 82% from 2012 funding levels. The President restricts this funding to only loan guarantees, which have seen very low demand over the years. No other energy title programs would be funded in 2013 under the President’s proposal. It is not known at this time if the White House supports continuation of the Energy Title in the next Farm Bill.

While the President’s budget proposes to cut tax breaks for fossil fuel extraction in the next decade to spend more for conservation and alternate energy, apparently none of those funds would be used for agricultural clean energy programs.

This proposal is in stark contrast to the call in the President’s State of the Union  pursue an energy strategy of “all-out, all-of-the-above.” Clearly, his approach excludes further progress on Farm Bill clean energy efforts.

The clean energy programs of the Farm Bill have made unprecedented progress in developing and accelerating a broad range of clean energy technologies. Farmers and rural small businesses in every state and many agricultural sectors have benefited while the programs stimulate private investment, technology investment and jobs. Hopefully, Congress will reject this part of the President’s budget request and maintain the forward momentum for modern farm energy technologies.

For more information:

• Energy and Environmental Study Institute, Fact Sheet: Obama Administration FY 2013 Budget Proposal: Sustainable Energy and Transportation
• Main page for President’s 2013 budget documents.

This is the earliest in the year that the USDA has released the funding notice for REAP in the program’s history. Following are deadlines applicants will need to know. Those interested in applying should contact their USDA Rural Development energy coordinator.

Deadlines for REAP Applications for 2012

Loan guarantee preference continues

The funding notice makes available the $61 million in total 2012 funding by providing $12.5 million in grants and $48.5 million in total loan guarantees. The USDA provides preferential treatment for loan guarantees including expedited processing of loan guarantees and longer times to submit guaranteed loan applications. However, there is no preference for combination loan and grant applications, unlike previous years. Unused loan guarantee funding will be used for grant and combination applications.

Reduced support from USDA for feasibility studies

Feasibility study support provides “seed funding” to help local owners develop community-owned energy projects and make wise investment decisions. This year the USDA capped the amount for any one feasibility study to $50,000 (or 25% of projects costs), with a nationwide cap of $500,000, or 10 feasibility studies. This action is unfortunate and will lead to fewer projects entering the development pipeline. USDA should lift this cap.

Energy Audits and Renewable Energy Development Assistance

These applications are on a tight turnaround and will be capped overall at $880,000. This funding helps rural electric cooperatives, state and local governments and others administer programs to provide energy audits and renewable energy development assistance in their region.

The 2012 REAP Notice of Funding availability can be downloaded here.

Despite the success and popularity of the program, a Congressional “Conference Committee” is now deliberating just how drastically to cut REAP funding for 2012. “REAP is a successful clean energy program, generating jobs and economic development in rural communities while cutting pollution,” said Andy Olsen, Senior Policy Advocate for the Environmental Law & Policy Center. “Congress can create jobs and grow our economy, by continuing to renew and robustly REAP for 2012 and beyond.”

The greatest number of awards went to solar energy, for both solar electric and solar thermal (heat). For the entire year, REAP funded 478 solar projects in 44 states. Michigan fared the best with 48 awards followed by New York (39), Pennsylvania (36), Tennessee (34) and California (29). Farmers have always harvested the sun for growing food and fiber and now more are embracing solar energy for power and heat.

For the year 2011, REAP funded 55 wind power awards, with Iowa and New York leading with seven each. Wind power has flourished under REAP for both small and utility-scale technologies, but fell off significantly this year, from 164 projects in 2010.

Geothermal projects use the energy of the earth for efficient heating and cooling, saving money while cutting pollution. Fifty-nine awards sparked new project construction across the country. Leading states include Minnesota (13), Iowa (11) and Michigan (7).

Small hydroelectric projects were included in REAP in the 2008 Farm Bill revisions and new awards were made for a number of projects in the West (Oregon, Nevada, Idaho) and the southeast (Georgia and North Carolina).

The Rural Energy for America Program (REAP) is a Farm Bill program that enables farmers and rural small businesses to install diverse renewable energy or energy efficiency technologies to cut costs and increase profits. REAP provides loan guarantees and grants for up to 25% of the project cost, leveraging private sector investment and creating jobs. REAP is up for renewal in the new Farm Bill now being debated by Congress.

The Environmental Law & Policy Center (ELPC) has advocated for REAP from the program’s inception and has helped expand the program to benefit rural communities across the nation. ELPC is working to protect REAP funding and promote job creation and clean energy for rural communities.

Digesters turn waste streams; municipal waste, foods, oils, grease and livestock manure; into clean energy, creating jobs and reducing pollution in the process.

One of the new biodigesters will be located at the waste water treatment plant in Wooster, Ohio. It is expected to produce 2 million kilowatt hours of renewable energy each year, enough to power more than 200 homes a year.

These digesters will also help U.S. dairy producers meet their goal of reducing greenhouse gas emissions from dairy farms by 25 percent by 2020. ELPC is proud to work with the Dairy industry and USDA to achieve these important pollution reductions.

Since its creation in the 2002 Farm Bill, REAP has assisted almost 7,500 businesses, farmers and ranchers across the country, and created or saved an estimated 15,000 jobs.  REAP projects have created or saved an estimated 13.4 billion kilowatts of electricity, reduced almost 14.5 million metric tons of greenhouse gas emissions

Read USDA’s press release here:

Agriculture Secretary Vilsack Announces Funding for Biodigester Projects to Produce Energy, Reduce Pollution in Seven States

WASHINGTON, October 26, 2011 – Agriculture Secretary Tom Vilsack today announced that USDA is funding anaerobic digester projects in seven states to encourage renewable energy production and reduce greenhouse gas emissions and farm-based pollution.   Of the 16 projects announced nationwide, Ohio is receiving funding for five – more than any other state in the union. The announcement was made on the Secretary’s behalf by Under Secretary for Rural Development Dallas Tonsager during a trip to Wisconsin.

“Through the efforts of the Obama Administration, the Rural Energy for America Program has helped rural small businesses, farmers and ranchers across the nation,” Vilsack said. “This program creates jobs, increases energy efficiency and reduces carbon emissions. It also provides producers with new opportunities to create revenue and compete globally.”

Funding for the biodigesters is provided through the USDA Rural Energy for America Program (REAP).  Vilsack said that, since its creation in the 2002 Farm Bill through Fiscal Year 2010, REAP has created or saved an estimated 13.4 billion kilowatts of electricity, reduced almost 14.5 million metric tons of greenhouse gas emissions, assisted almost 9,600 businesses, farmers and ranchers, and created or saved an estimated 15,000 jobs.

One of the biodigesters announced today will be located at the waste water treatment plant in Wooster, Ohio. It is expected to produce 2 million kilowatt hours of renewable energy each year, and is funded in part with a $500,000 grant and $750,000 loan combination, enough to power more than 200 homes a year.

“This round of REAP funding places Ohio in the forefront of the anaerobic digester industry nationwide,” said Ohio Rural Development State Director Tony Logan. “These advanced biodigesters not only create jobs for Ohioans, they turn our existing waste streams – municipal waste, foods, oils and grease and livestock manure – into valuable biomass inputs. They are solid investments for our economy and our environment.”

Today’s announcement is in concert with an agreement signed by Secretary Vilsack in December, 2009. During climate change talks in Copenhagen, Denmark, the Secretary signed a historic agreement to help U.S. dairy producers cut greenhouse gas emissions. The agreement between USDA and the Innovation Center for U.S. Dairy calls for the parties to work to reduce greenhouse gas emissions from dairy farms by 25 percent by 2020. Secretary Vilsack said today the agency is on track to fund an average of one biodigester a week for the coming year.

In Fiscal Year 2011, USDA, through the REAP program, provided over $20 million in assistance for biodigesters, and leveraged $110 million in other funds.  Through its Value-Added Producer Grant program, USDA provides planning grants of up to $100,000 and working capital grants of up to $300,000 to be used for establishment of a biodigester.  Additionally, the Natural Resources Conservation Service (NRCS) offers financial and technical assistance through the Environmental Quality Incentives (EQIP) program.
REAP anaerobic digester funds announced today included grants and loans to the following:

AgPower Jerome, LLC                       Lincoln Co., Idaho      $500,000 grant

New Energy Two, LLC                      Middleton, Idaho        $500,000 grant

New Energy Three LLC                     Middleton, Idaho        $500,000 grant

Sioux Pharm Inc.                                Sioux Center, Iowa     $263,250 loan, $263,250 grant

Mill Creek Digester, LLC                   West Unity, Ohio        $600,000 loan, $499,924 grant

Belmont County Bioenergy, LLC      St. Clairsville, Ohio     $750,000 loan, $500,000 grant

Lime Lakes Energy, LLC                   Barberton, Ohio          $1.5 million loan, $500,000 grant

Wooster Renewable Energy, LLC,     Wooster, Ohio             $750,000 loan, $500,000 grant

Ringler Energy, LLC                          Cardington, Ohio        $3,238,750 loan, $500,000 grant

Farm Power Misty Meadow, LLC     Tillamook, Ore.           $1 million loan, $500,000 grant

Farm Power Tillamook, LLC              Tillamook, Ore.           $2.65 million loan, $100,000 grant

Hard Earned Acres, Inc.                     Shippensburg, Penn.   $331,709 grant

Reinford-Frymoyer Farm, LLC          Mifflintown, Penn.     $337,224 grant

Arlen Benner                                       Mount Joy, Penn.        $500,000 grant

Riverview Farm                                  Franklin, VT                $429,703 loan, $214,851 grant

Heller Farms (Cow Poo, LLC)           Alma Center, Wis.      $1,321,187 loan, $500,000 grant

Funding of each award is contingent upon the recipient meeting the conditions of the grant or loan agreement. Grants can finance up to 25 percent of a project’s cost, not to exceed $500,000 for renewables, $250,000 for efficiency.

Since taking office, President Obama’s Administration has taken significant steps to improve the lives of rural Americans and has provided broad support for rural communities. The Obama Administration has set goals of modernizing infrastructure by providing broadband access to 10 million Americans, expanding educational opportunities for students in rural areas, and providing affordable health care. In the long term, these unparalleled rural investments will help ensure that America’s rural communities are repopulating, self-sustaining and thriving economically.

USDA, through its Rural Development mission area, administers and manages housing, business and community infrastructure and facility programs through a national network of state and local offices. Rural Development has an active portfolio of more than $155 billion in affordable loans and loan guarantees. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America.