• Department of Energy Streamlines Loan Guarantee Process for Renewable Energy

    U.S. Department of Energy

    Washington DC — The U.S. Department of Energy (DOE) has announced it will provide up to $750 million in funding from the American Recovery and Reinvestment Act to help accelerate the development of renewable energy generation projects. This funding will cover the cost of loan guarantees which could support as much as $4 to 8 billion in lending to eligible projects, and the Department will invite private sector participation to accelerate the financing of these renewable energy projects.

    The Recovery Act created a new Section 1705 under Title XVII of the Energy Policy Act of 2005 (Title XVII) for the rapid deployment of renewable energy projects and related manufacturing facilities, electric power transmission projects and leading edge biofuels projects that commence construction before September 30, 2011. The new Financial Institution Partnership Program (FIPP) offers a streamlined set of standards designed to accelerate DOE's loan guarantee underwriting process and leverage private sector expertise and capital for the efficient and prudent funding of eligible projects.

    This first solicitation under the new program will seek loan guarantee applications for conventional renewable energy generation projects, such as wind, solar, biomass, geothermal and hydropower. Past solicitations for renewable energy generation projects have focused on loan guarantee applications using new or innovative technologies not in general use in the marketplace.

    Under this first FIPP solicitation, proposed borrowers and project sponsors do not apply directly to DOE; instead they work with financial institutions satisfying the qualifications of an eligible lender which may apply directly to DOE to access a loan guarantee. The solicitation invites applications from eligible lenders for partial, risk-sharing loan guarantees from DOE.

    Read more information on this solicitation and the Department's Loan Guarantee Program at www.lgprogram.energy.gov

  • New Community Wind Financing Handbook

    The Environmental Law & Policy Center has published an updated version of the Community Wind Financing Handbook. This guide reflects new financing opportunities available from federal energy and economic stimulus legislation, the new Farm Bill, and state incentives.

    Community Wind Financing Handbook

    Since ELPC published the first edition of the Community Wind Financing Guide in 2004, wind power has become the United States' fastest-growing source of electricity. Community wind projects, which represent a small but growing share of the wind market, are largely owned by farmers and other local investors with a significant economic stake in the project. Such local ownership generates powerful economic and social benefits for rural areas.

    The updated Handbook provides the latest information on financing community wind projects, including ownership structures, roles of financial intermediaries, sources of federal and state financial support and consultant/developer directories. Although building these projects has become somewhat easier over time, understanding and accessing financing opportunities remains perhaps the most important requirement for a successful project.

    The Handbook can be downloaded at no cost on the ELPC web site from the link below.

  • USDA Selects Windustry to Form Landowner Wind Energy Association Resource Center

    USDA logo

    Washington, Sept. 24, 2009 - Agriculture Secretary Tom Vilsack today announced that 58 recipients have been selected to receive $8 million in grants to spur economic development in rural communities in 41 states, the Territory of Puerto Rico and the Western Pacific. Minnesota-based Windustry has been selected to receive a $200,000 grant to form the Landowner Wind Energy Association Resource Center. The Center will provide technical assistance to rural small businesses to analyze, organize, develop and expand rural wind energy projects. Windustry will work with businesses seeking to construct wind projects in Montana, West Virginia and Wisconsin.

    Tom Vilsack, secretary of agriculture
    Tom Vilsack, secretary of agriculture

    “Rural businesses are the lifeblood of rural communities and their financial health is vital as we work to create jobs and expand entrepreneurship throughout the country,” Vilsack said. “The funding we are announcing today will help lay the foundation for economic growth in many communities, consistent with the Obama Administration's vision of rebuilding and revitalizing rural America.”

    The funds are being provided through the U.S. Department of Agriculture's Rural Business Enterprise Grant (RBEG) program, which finances development of small and emerging rural business. The grants may be used for project planning, land acquisition and development, transportation and infrastructure improvements; renovation or construction, equipment purchases, establishment of working capital or revolving loan funds, adult job training and technical assistance.

    USDA Rural Business Enterprise Grant announcement

    Windusty's Introduction to Landowner Wind Energy Associations (LWEA)

  • Second Round of Clean Energy Awards Announced by Treasury

    Washington, D.C. - The U.S. Treasury Department has announced the second round of awards for cash assistance to energy producers in place of tax credits. This provides provides an additional $550 million, bringing the total to more than $1 billion awarded to dateto companies committed to investing in domestic renewable energyproduction.

    “This Recovery Act program is an example of a true federal partnership with the private sector,” said Treasury Secretary Tim Geithner. “Not only are our Recovery dollars meeting an immediate funding need among innovative companies, they are also jumpstarting private sector investment in communities across the country, with benefits for the renewable energy industry and our economy alike.” 

    Created under Section 1603 of the Recovery Act, the program provides cash assistance to energy producers in place of tax credits. The payments improve project viability, enabling companies to create and retain jobs, and establish sufficient financing bases for projects that may otherwise not be possible, dramatically expanding and accelerating the development of renewable energy projects throughout the country. Under this program, the federal government provides a cash payment in lieu of a tax credit totaling 30 percent of the qualifying cost of the project; for each federal dollar spent in payments, more than two dollars are spent in private sector investments. 

    The following 25 projects were funded in this announcement.

    STATE

    PROJECT

    LOCATION

    AMOUNT

    CA

    Bob's Big Boy LLC

    Burbank, CA

    $53,648

    CA

    Ameresco Half Moon Bay LLC

    Half Moon Bay, CA

    $6,641,747

    CA

    Ameresco Keller Canyon LLC

    Pittsburgh, CA

    $2,796,377

    CA

    BioFuel Oasis Cooperative, Inc

    Berkely, CA

    $16,858

    CO

    5135 Company

    Denver, CO

    $23,130

    FL

    Conditioned Air Corporation of Naples

    Naples, FL

    $50,250

    HI

    Two Daughters

    Kihei, HI

    $15,150

    IA

    Barton Wind Farm

    Kinsett, IA

    $93,419,883

    MN

    BI

    Minneapolis, MN

    $25,649

    MN

    Spruce Tree Centre

    St. Paul, MN

    $107,764

    MO

    Farmers City Wind Farm

    Tarkio, MO

    $84,959,857

    MO

    Ameresco Jefferson City LLC

    Jefferson City, MO

    $2,300,244

    NC

    Solar Billboard Property

    Bolivia, NC

    $5,850

    NJ

    Meadowlands Exposition Center

    Secaucus, NJ

    $767,937

    NJ

    EHT Leasing LLC

    Egg Harbor Township

    $118,560

    NJ

    OC Kearny

    Kearny, NJ

    $992,006

    NV

    Enel Salt Wells, LLC

    Fallon, NV

    $21,196,478

    NV

    Enel Stillwater, LLC

    Fallon, NV

    $40,324,394

    NY

    OP 110 E. 59th St. CHP

    New York, NY

    $415,774

    SD

    Impervious Energy Systems, LLC

    Whitewood, SD

    $31,511

    TX

    Barton Chapel Wind Farm

    Jacksboro, TX

    $72,573,627

    TX

    Rio Grande Valley Sugar Growers, Inc.

    Santa Rosa, TX

    $10,232,261

    TX

    Bull Creek Wind LLC

    O'Donnell, TX

    $91,390,497

    TX

    Pyron Wind Farm, LLC

    Roscoe, TX

    $121,903,306

    VT

    Wheeler Brook Apartments

    Warren, VT

    $19,155

     

     

     

    $550,381,913

  • USDA Announces $13 Million in REAP Grants and Loans

    USDA logo

    The United States Department of Agriculture (USDA) is providing more than $13 million in loans and grants for 233 renewable energy projects in 38 states under the Rural Energy for America Program (REAP). The loan guarantees and grants will help agricultural producers and rural small businesses to conduct energy audits and feasibility studies for renewable energy systems, for renewable energy development assistance, and to purchase and install renewable energy systems and make energy efficiency improvements.

    “Rural businesses are the lifeblood of rural communities and their financial health is vital as we work to create jobs and expand entrepreneurship throughout the country,” said Agriculture Secretary Tom Vilsack. “The funding will help lay the foundation for economic growth in many communities, consistent with the Obama Administration's vision of rebuilding and revitalizing rural America.” 

    An example of a project, Milford Wind Energy, LLC, Story City, Iowa, has been selected to receive a $1.8 million guaranteed loan and a $500,000 grant to build a 900 kilowatt wind turbine for energy generation. When complete, the turbine is expected to produce nearly 3.3 million kilowatts of electricity annually and generate more than $200,000 in electricity that will be sold to the local utility company. Construction of the turbine is expected to be completed next year.

    The following links provide full information:

    USDA REAP Funding Announcement & Project List
    Rural Energy for America Program (REAP)

  • Minnesota Transmisson Study Suggests Grid Upgrades for Renewable Energy

    A new study released by the Minnesota Office of Energy Security shows that the state's power grid could accomodate 600 megawatts of new renewable energy capacity by making upgrades to electric transmission systems. A previous study had shown that another 600 MW could be added to the existing tranmission grid without impacting it's performance.

    "Dispersed Renewable Generation Transmission Study Phase II" completes a two-part study chartered by the Minnesota legislature as part of the Minnesota NextGen Energy Act passed in 2007. The act calls for 25 percent of the total energy used in the state to be derived from renewable energy resources by the year 2025. In order to meet that goal, dispersed generation of the grid would allow many distributed power generators, such as wind farms, to add significant energy capacity to the system. Together, the combined studies created complex computer models designed to add 1200 MW of dispersed capacity by the year 2013.

    Phase I, completed in June 2008, identified locations in the state transmission grid where a total of 600 MW of renewable energy projects could be developed with little or no changes required to the existing grid infrastructure. Although the study noted that dispersed generation can have impacts on the electric grid, it concluded that the majority of the 600 MW could be sited without disruptions at locations in southern Minnesota. In fact, in 2008 the state added 454 MW of commercial wind power with the vast majority sited in southwestern Minnesota.

    Proposed DRG Phase II Sites

    Phase II of the study sought an additional 600 MW and found that there were limited locations in the state that could accommodate 10-40 MW generation projects without incurring some amount of transmission investment. So, the study team focused on sites that could potentially accommodate generation with only minor transmission investments, not the construction of new high-voltage transmission routes. The total cost of the transmission upgrades were estimated to be $121 million. In comparsion, the CapX 2020 project for constructing three new high-voltage transmission lines across the state is estimated to cost $1.7 billion.

    As a result of the studies, the Minnesota Office of Energy Security concluded that achieving the renewable energy goal calls for a dual strategy of:

    • Using our existing transmission infrastructure more efficiently, through increased energy conservation and efficiency, demand response, emerging efficiency technologies and dispersed renewable generation where it can be interconnected reliably, and
    • Significantly increasing high-voltage transmission capacity in the state.

    The studies and explanatory recorded webinars are available from the Minnesota Office of Energy Security on the link below.

    Tom Wind (Wind Utility Consulting) acting as a consultant to Windustry served as a member of the Technical Review Committee for both studies.

  • Transmission Cost Allocation Proposal Threatens Wind Development

    Washington, DC, August 13, 2009 - The American Wind Energy Association (AWEA) and its regional partner Wind on the Wires (WOW) have filed a protest with the Federal Energy Regulatory Commission (FERC) urging rejection of a proposal from the Midwest Independent System Operator (MISO).

    MISO claims that current cost allocation rules produce inequitable results for a few transmission owners in some circumstances. In particular, the transmission system operator maintains that the existing cost-allocation method can introduce high costs to a small group of transmission owners with facilities in the vicinity of, but whose load is not proportionally benefited by, upgrades to the system necessary to accommodate interconnection requests from generators.

    AWEA and WOW argue that the problem is impacting only a small fraction of transmission owners in the Midwest ISO’s footprint, but the proposal would overhaul the cost allocation for the entire region without any justification for removing costs from the vast majority of transmission owners and imposing them on generators.

    “The proposed policy change is like requiring the next car entering a congested highway to pay the full cost of adding a new lane,” said WOW Director Beth Soholt. “Obviously such a policy is unworkable, which in our case means that wind projects will not be able to connect to the grid.”

    “At a time when the wind industry is one of the few bright spots of the U.S. economy, having created 35,000 new jobs last year, this policy is saying the Midwest is becoming less friendly for the wind business, and that will clearly have an impact on not only wind development but manufacturing and supply-chain jobs throughout the region,” said AWEA CEO Denise Bode.

    Read the filing of Protest of The
    American Wind Energy Association
    and Wind On The Wires
    .

  • Treasury, Energy Announce $500 Million in Awards for Clean Energy Projects

    Washington, D.C. - Marking a major milestone in the effort to spur private sector investments in clean energy and create new jobs for America's workers, Treasury Secretary Tim Geithner and Energy Secretary Steven Chu announced $502 million in the first round of awards from an American Recovery and Reinvestment Act (Recovery Act) program that provides cash assistance to energy production companies in place of earned tax credits.

    The new funding creates additional upfront capital, enabling companies to create jobs and begin construction that may have been stalled until now.

    Created under Section 1603 of the Recovery Act, the program is expected to provide more than $3 billion in financial support for clean energy projects by providing direct payments in lieu of tax credits. These payments will support an estimated 5,000 bio-mass, solar, wind, and other types of renewable energy production facilities in all regions of the country over the life of the program. As a result of this first round of funding, more than 2,000 Americans will have access to jobs in the renewable energy industry - both in construction and in manufacturing - while moving the nation closer to meeting the Administration's goal of doubling renewable energy generation in the next few years. 

    The Treasury Department opened the application process for the 1603 program on July 31, 2009 and is today making the first awards in half the statutorily mandated turnaround time of 60 days. The following is a chart of projects funded as part of today's announcement. Additional awards under the program will be announced in the coming weeks. 

    STATE PROJECT LOCATION AMOUNT
    CO Movement Gym PV System (Solar) Boulder, CO $157,809
    CT Solaire Development, LLC Danbury, CT $2,578,717.00
    ME Evergreen Wind Power V, LLC Danforth, ME $40,441,471
    MN Moraine II Wind Farm Woodstock, MN $28,019,520
    NY Canadaigua Power Partners, LLC (Wind) Cohocton, NY $52,352,334
    NY Canadaigua Power Partners II, LLC (Wind) Cohocton, NY $22,296,494
    OR Wheat Field Wind Farm Arlington, OR $47,717,155.00
    OR Hay Canyon Wind Farm Moro, OR $47,092,555
    OR Pebble Springs Wind Farm Arlington, OR $46,543,219
    PA Highland Wind Farm Salix, PA $42,204,562
    PA Locust Ridge II, LLC (Wind) Shenandoah, PA $59,162,064
    TX Penascal Wind Farm Sarita, TX $114,071,646
          $502,637,546

     

  • Municipal Wind Power in Minnesota

    AUGUST 2009, MN - The city of Chaska, Minnesota, will soon have an 80-foot-tall wind turbine generating clean, renewable electricity for local residents and businesses. The Pioneer Ridge Wind Turbine is just one of the eleven turbines that will be installed through the Hometown WindPower program created by the Minnesota Municipal Power Agency (MMPA). After holding an open house and a neighborhood meeting to gather citizen input, the Pioneer Ridge Middle School site was chosen after a variety of factors were considered including visibility, proximity to existing power sources, educational value, and impact to neighbors. Construction could begin as soon as September, 2009.

    "Hometown WindPower will put power generation right into the community where it will be used."
    —Derick Dahlen, Avant Energy

    The Hometown WindPower program began in 2006, when MMPA began an ambitious program to locate wind turbines for their 11 member communities across the state of Minnesota. The Agency is owned by its member cities and governed by a board of directors with representatives from each community working together to provide competitively priced, reliable and sustainable energy to their local customers. Now, five of the member communities, Chaska, Anoka, Buffalo, North Saint Paul, and Shakopee, have entered the planning stage for their wind power projects this year.

    The program was designed by Avant Energy, a Minneapolis firm that provides services to municipal utilities and public power agencies. "Wind power is most efficient when it can be used at the point of generation, rather than being transmitted many miles away," says Avant Energy president Derick Dahlen. "Hometown WindPower will put power generation right into the community where it will be used, and it will happen using a clean, endlessly renewable source of power."

    A turbine in Anoka, recently approved by the city council with a 4-1 vote, will be located near the Anoka High School with construction slated to begin this fall. Buffalo has selected a site at Buffalo High School near the Buffalo water tower. North St. Paul has selected a site by a public works garage. The 165-kilowatt wind turbines with 80-foot towers and 35-foot blades are refurbished machines from California purchased for $300,000 each. Hometown WindPower will help MMPA meet its Minnesota state requirement to achieve a renewable energy standard (RES) of 25 percent by 2025.

    Willmar Municipal Utilities wind turbine
     
    Willmar Municipal Utilities
    wind turbine

    Municipal wind power projects are developed by small political subdivisions of cities and townships, rural electrification cooperatives, and other municipal entities or municipally owned corporations that provide electric transmission, distribution or generation services. Advantages of municipal wind power projects include the ability of a local government body to manage the regulatory process and to arrange for public meetings during the planning process along with the use of public lands for siting.

    While these projects are much smaller than commercial wind farms with megawatt-scale tubines, they demonstrate how local government and public utilities can provide their own clean energy from sustainable resources. Hometown WindPower is a prime example of how Community Wind is being used in small communities to help keep energy costs stable by creating a long-term fixed price for the power, providing a hedge against rising fuel costs, such as coal and natural gas.

    Other Minnesota municipalities are using wind power for these benefits as well.

    Willmar Municipal Utilities recently completed construction of two wind turbines that will be used to power about 3% of the city's electric needs. These 262-foot, 2-MW DeWind wind turbines were manufactured in Round Rock, Texas, with blades made in Germany, and the steel tower sections built in Nebraska. The city of Willmar is using bonding to spread out the cost over a 10- to 15-year period. Over the 20-year life of the turbines, the projected cost for each kilowatthour of electricity produced is less than 5 cents.

    Capture the Wind Turbines in North Moorhead
    Capture the Wind Turbines
    in North Moorhead

    Moorhead Public Service (MPS) was a pioneer in 1999 erecting a .75-MW wind turbine, followed by a second turbine in 2001. MPS instituted a Capture the Wind program allowing residents and local businesses to help support the municipal wind project by paying additional fees of no more than a half-penny per kWh. This allows customers the opportunity to make a positive environmental choice to support clean, renewable energy by paying a little extra without impacting other customers who do not choose to support the project. The program was so popular that the subscription targets for both turbines were achieved within their first months of being offered, and customers went on waiting lists to join the program with extended offerings.

Pages