This April 2008 report from the New Rules Project discusses how simple changes to the federal production tax credit (PTC) and SEC registration process for cooperatives could significantly reduce barriers to community ownership of wind.
Download the report from the New Rules website here: http://www.newrules.org/de/ptc-wind-ownership.pdf
This June/July 2007 article in Mother Earth News covers the basics of community wind and talks about the challenges to community wind in the U.S.
Click here to read the article on the Mother Earth News website.
Read the recent report released by the Department of Energy that outlines how wind can support up to 20% of our nations electrical demand by 2030. The report can be found here.
2006 Notice of Funding Availability
2007 Farm Bill Notice of Funding Availability
Washington, DC - 21st Century Infrastructure: Opportunities and Hurdles for Renewable Energy Development is a conference sponsored by the American University Washington College of Law and the Renewable & Distributed Generation Resources Committee of the ABA Section of Environment, Energy and Resources.
Topics will include:
The U.S. Department of Agriculture requests proposals for the New Era Rural Technology Competitive Grants Program (RTP). This program supports technology development, applied research, and/or training, with a focus on rural communities, to aid in the development of a workforce for bioenergy, pulp and paper manufacturing, or agriculture-based renewable energy.
July 2010, Washington, D.C. - Rep. Jay Inslee (WA) has introduced the Americans Making Power Act, or AMP Act, which would establish a national standard for net metering. The legislation would allow Americans to feed back into the grid excess renewable power they generate through their homes, small businesses and even places of worship. This legislation would also improve reliability of the nation's electric grid by encouraging a more diffuse means of energy production.
The National Renewable Energy Laboratory (NREL) has published a report analyzing the impacts that state level feed-in tariff policies can have on the renewable energy industry across the country. The report uses data and reports from around the world to highlight the various benefits that a feed-in tariff type of policy can have on renewable energy development.
A feed-in tariff is an energy policy that provides for a guarantee of payment to renewable energy developers for the energy that is produced. This type of policy can be thought of as an advanced form of a production-based incentive because payments are made for the actual electricity produced and not for how much capacity is installed. The most common feed-in tariff payment is based on the actual levelized cost of renewable energy generation. This method of payment provides a price adequate to ensure a reasonable rate of return on for investors.
The authors of the report delve into the various advantages of feed-in tariff policies and the number of challenges to implementing feed-in tariff policies in the U.S. The report also provides a review of the current state-level and utility-level feed-in tariff policies that are currently in place across the county and compares them with the successful models found in Europe. These states include Gainesville, Florida; various Wisconsin utilities; California; Vermont (report was written prior to passage of the state-wide feed-in tariff so this analysis focuses on the two utility-specific programs); Washington; and Oregon. The authors wrap up the report with a discussion of best practices for feed-in tariff policy design and implementation, followed by an analysis on how to use a feed-in tariff policy to achieve state renewable energy goals.
The authors highlight one of the most important elements of a feed-in tariff policy - that it allows for more participants in renewable energy project development. In their analysis the authors state that there are significant impacts of a feed-in tariff on developing community ownership, but it will depend on how the program is structured and payments determined.
A 2007 presentation from a webinar about Federal bonding incentives.
Avoiding the Haircut: Potential Ways to Enhance the Value of the USDA's Section 9006 Program.
Lawrence Berkley National Laboratory published this report, written by Mark Bolinger, to address concerns regarding the interaction between the USDA Farm Bill and the federal Production Tax Credits for wind energy projects.
This conference, sponsored by the Institute for Local Self-Reliance, will give participants a chance to hear from national and international experts on renewable energy payments (a.k.a. feed-in tariffs). It will be also be a good opportunity to learn about legislative efforts in Minnesota and other Midwestern states to get this policy into place.
In order to be financially competitive, most wind projects need to take advantage of federal and, where available, state tax incentives. It is critical to understand the role and mechanics of tax incentives while developing a commercial-scale community wind project because these incentives can represent one-half to two thirds of the total revenue stream over the first 10 years of operation due to the Federal Production Tax Credit (PTC) and Modified Accelerated Cost-Recovery System (MACRS) or other type of depreciation that can be applied to wind energy assets. You will need to consult a tax professional in the early stages of project planning to ensure that your financial projections are valid and accurately take into account the project’s tax burden and benefits.
PDF Version
Hundreds of megawatts of community wind projects have already been installed throughout the country, but increased policy support for locally-owned projects is needed so that rural America can continue to benefit from this growing industry.
The Clean Renewable Energy Bond (CREB) program is a new financial incentive created in the Energy Policy Act of 2005. It is available to municipal utilities and electric cooperatives and is intended to promote renewable energy development.
The Federal Production Tax Credit (PTC) has been the dominant mode of financing for renewable energy projects since it was made available in the early 1990s. The PTC, however, was designed to benefit the large investor-owned utilities and to track their capital into the renewable energy marketplace. Electric cooperatives and government entities like public power systems and municipal utilities have never been eligible for the PTC. In order to get into the marketplace, they successfully lobbied Congress in 2005 for the creation of CREBs, which is a tax credit bond available only to them. The program was modeled after the Qualified Zone Academy Bond (QZAB) program enacted in 1998 to provide tax incentives for the rehabilitation of public school buildings.
CREBs are tax credit bonds with an interest-free finance rate. The entire interest on the bond is paid by the U.S. Treasury in the form of a tax credit. $800 million have been allocated by the Secretary of the Treasury to the program for the time period between January 1, 2006 and December 31, 2007. $300 million of that has been designated for rural electric cooperatives. The borrower has five years to spend 95% of the proceeds. The tax credit rate is posted daily by the U.S. Treasury. The discount rate is designed to provide for the maximum term equal to produce 50% of the face amount of the bond (approximately 11 years).
Applications for CREBs were due April 26, 2006. The Secretary of the Treasury will allocate CREBs starting with the smallest project and proceeding through the larger projects until the entire $800 million has been allocated.
Released by the 25' X 25' Alliance, The Energy Foundation and Harvesting Clean Energy, this report makes clear that community wind must be an integral part of the nation's energy strategy and lays out a set of public policies designed to grow local wind investment and ownership.
Specifically, Community Wind 101 finds:
You can access the excutive summary here and read the full report here.
This report was written by Mark Bolinger of the Lawrence Berkely National Laboratory and published in March 2004. Find it online on the Laboratory website.
Washington, DC - The Sustainable Energy Coalition, in cooperation with Members of the U.S. House of Representatives and U.S. Senate Renewable Energy & Energy Efficiency Caucuses, will host the 13th annual Congressional Renewable Energy & Energy Efficiency EXPO + Forum.
There are many hurdles for connecting renewable energy projects to the existing electric power grid involving transmission lines, substations, regulatory processes and more. The good news is that both industry and government groups have invested in research on how to better connect renewable energy projects to the grid and how to construct a smart grid that can support a clean energy future.
The Database of State Incentives for Renewables and Efficiency (DSIRE) is a comprehensive database of incentives for wind and other forms of renewable energy. It is a great resource for up-to-date policy information.
WASHINGTON, D.C. - April 29, 2009 - Secretary of Energy Steven Chu announced that $93 million from the American Recovery and Reinvestment Act of 2009 (ARRA) will be used to support the development of wind energy projects.
Washington DC — The U.S. Department of Energy (DOE) has issued a Request For Information (RFI) to gain public input on the development of a Wind Energy Workforce Roadmap, which will provide details on the current workforce landscape in the wind industry as well as future steps necessary to train and develop a green workforce for the sector.
Double-declining balance, five-year depreciation schedule (I.R.C. Subtitle A, Ch. 1, Subch. B, Part VI, Sec. 168 (1994) (accelerated cost recovery system)) is another federal policy that encourages wind development by allowing the cost of wind equipment to be depreciated faster.
Washington DC, July 15, 2009 - U.S. Department of Energy Secretary Steven Chu today announced plans to provide up to $22 million from the American Recovery and Reinvestment Act to support the planning and installation of utility-scale community renewable energy projects in up to four communities nationwide. This funding opportunity directly supports the Obama Administration's goals of developing clean, renewable energy supplies, and creating new jobs and economic opportunities.
St. Paul, MN - This year's E3 conference takes place Tuesday, November 30 at the Saint Paul RiverCentre. E3 2010 keynote speakers include energy policy expert Daniel Kammen and U.S. Department of Commerce Assistant Secretary Nicole Y. Lamb-Hale. Conference topics will include:
This report by David Morris of the Institute for Local Self Reliance can be downloaded here.
A federal statute that, among other things, established additional forms of non-utility generators. It also permitted non-generator-owning municipalities to purchase wholesale electricity, thus opening the door to municipalization, which allows municipal governments to take control over providing electric service to electric consumers.
The first time since 1992 that the federal government revisited national energy policy. The Energy Policy Act of 2005 included an extension of the Production Tax Credit (PTC) through the end of 007, the creation of Clean Renewable Energy Bonds, and many other provisions.
For the first time in U.S agriculture policy, the 2002 Farm Bill included an energy title that established a variety of programs to support farm-based renewable energy grant and loan guarantee program administered through the U.S Department of Agriculture - Rural Development. The Farm Bill is on a 5-year cycle and there is talk about additional support for agriculturally based wind and other renewable energy development.
The Wind Energy Production Tax Credit (PTC), is a per kilowatt-hour tax credit for wind-generated electricity. Available during the first 10 years of operation, it provides 1.5 cents per kWh credit adjusted annually for inflation. The adjusted credit amount for 2005 is 1.9 cents per kWh. Enacted as part of the Energy Policy Act of 1992, the credit has gone through several cycles of expiration and renewal. The inconsistent nature of this tax credit has been a significant challenge for the wind industry, creating uncertainty for long term planning and preventing steady market development. In July 2005, the PTC was "seamlessly" renewed for the first time when an extension through December 31, 2007 was included in the federal Energy Bill. The PTC was extended again in December 2006, and will now expire December 31, 2008.
Read more about the PTC on the American Wind Energy Association web site.
The tax credit also is primarily useful for corporations and is difficult (but, not impossible) for other entities (farmers and individuals, schools, municipal utilities, etc.) to use effectively.
Many community wind projects find ways to use the production tax credit, but it can be a challenge. The federal Renewable Energy Production Incentive supported many municipal and school projects, but is not available for new projects. There have been a number of proposals to make the PTC more accessible for community projects and other alternatives.
Why is the PTC difficult for farmers and other average individuals to use?
Adapted from the Government Accountability Office's September 2004 report, Wind Power's Contribution to Electric Power Generation and Impact on Farms and Rural Communities:
According to Department of Treasury officials, for a farmer who does not materially participate in a wind power project to make use of the production tax credit, the farmer must have tax liability attributable to passive income (e.g., rental income or income from businesses in which the farmer participates only as an investor) against which to claim the production tax credit.* Passive income does not include income from the farmer's active farming business, wage income, or interest and dividend income. Unless a farmer materially participates in the production of wind power, the production tax credit cannot offset tax liability attributable to income from these sources. Since many farmers do not have passive income and do not materially participate in wind power production, this passive versus nonpassive income distinction limits the number of farmers that are able to take advantage of the renewable energy production tax credit.
*Internal Revenue Service Publication 925 defines criteria for material participation in a trade or business activity. For example, an individual materially participates in a trade or business activity if the individual participates more than 500 hours during the tax year.
The US currently generates close to nine percent of its electricity from renewable sources such as wind, solar, biomass, and hydropower. During the past several years, renewable electricity markets have surged as a result of new federal and state policies. Thirty-five states and Washington, DC, have established renewable energy targets designed to increase the amount of renewable electricity in utility portfolios. Despite the impressive amount of new policies that have been implemented, many policy makers in the US are evaluating how to further accelerate renewable energy growth. As can be seen in the graph below, renewable electricity generation has declined since a peak at over 12 % in the 1990s because of decreases in hydropower output. The US will need to dramatically increase the amount of installed renewable energy capacity in order to surpass recent historical highs, improve energy security, create new jobs, and address the growing risks of climate change. Since the start of this decade, non-hydro resources, especially wind and solar energy, have grown rapidly in key state markets (Sherwood, 2009; Wiser & Bolinger, 2009). The question remains, however: is current growth fast enough to transition to a more sustainable energy supply and meet the threat of climate change?
Excerpt from “FITness Testing: Exploring the myths and misconceptions about feed-in tariff policies,” published by the World Future Council.
Download the report document and visit the web site in the links below.
A 2007 presentation from a webinar about Federal bonding incentives.
The Harvesting Clean Energy Conference is the Northwest’s premiere gathering for agriculture and energy interests working to advance new opportunities for agriculture producers and rural communities in clean energy production. Clean energy offers real solutions – financial and practical – for our farmers, ranchers, rural utilities and towns, tribes, and regional economy.
Now that Congress has passed and President Obama has signed the American Recovery and Reinvestment Act of 2009, how will this help to stimulate Community Wind projects? According to Denise Bode, American Wind Energy Association CEO, "the stimulus bill contains a number of provisions aimed at helping our industry continue the very strong growth in new installations and new jobs we have seen over the past few years."
The phrase “feed-in tariff” has recently entered the daily dialogue of not only renewable energy advocates, but policy makers as well. A feed-in tariffs is a policy mechanism that provides a renewable energy facility with a guarantee of interconnection to the electrical grid and a set price paid for that renewable energy. Feed-in tariffs are proven to be the most successful policy for the rapid development of significant amounts of renewable energy world-wide, and have experienced increasing attention in North America over the last year. Feed-in tariffs work because they are more equitable than other policies. They enable everyone - including homeowners, farmers, cooperatives, and businesses large and small - to profit from renewable energy.
Once a feed-in tariff is implemented, utilities are required to purchase the electricity produced from a qualified renewable energy facility at a set price, or tariff, per kilowatt-hour generated. The cost of purchasing this energy is paid for by the utility and energy consumer, just like any other electricity generation source, and not with government incentives paid for by taxpayers who may not be using the energy. To ensure the tariff rate is successful, it should be set at a level that allows recovery of the cost of the facility plus a return on the investment. This is similar to how regulations of utility rates happen in many parts of the country and is a familiar concept for the industry. A feed-in tariff is separate from net-metering because the electricity generated is not used on-site. All of the output from the facility is purchased by the utility and the facility owner continues to pull electricity from the grid as before.
This type of policy has had notable success in Europe, particularly in Germany where as of 2008, over 75 percent of the electricity generated from renewable sources was purchased according to the tariffs under the Renewable Energy Sources Act (EEG), Germany’s feed-in tariff. The additional costs associated with this program for 2008 accounted for an additional 1.05cent/kWh. An average German household had an increase of 3.10 euro in their monthly electricity bill as a result of the feed-in tariff. The German Ministry for the Environment, Natural Conservation and Nuclear Safety issues an annual report on the status of renewable energy in Germany that analyzes these figures. You can read the 2008 preliminary report here.
In North America this type of policy has been slow to gain support despite efforts on both the federal and state levels. However, the past year has witnessed major strides in implementing feed-in tariff policies. According to the Alliance for Renewable Energy, there are 20 states that have considered feed-in tariff style policies. Below are some highlights from a few of these efforts: California’s Start; The Gainesville Story; Vermont Joins In; The Canadian Perspective.
California’s Start
In early 2008 the California Public Utilities Commission announced the availability of two expansions of a tariff designed to support and encourage the development of up to 480MW of renewable energy from small generating facilities throughout the state. This program is targeted specifically to the publicly owned water and wastewater treatment facilities.
The key elements of the tariff are:
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A fixed price, non-negotiable contract for 10, 15, or 20 years
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A project size cap of 1.5MW
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According to the order establishing this tariff, an eligible facility is one that is defined in PUC code § 399.12 which requires the facility to meet the definition of § 25741 of that code. The definition includes wind facilities that are located within the state of California and generally requires the first point of interconnection to be within the state.
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Any customer may sell to Edison or PG&E
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Only water and waste water customers may sell to the other four utilities: San Diego Gas and Electric Company, PacifiCorp, Sierra Pacific Power Company, Bear Valley Electric Service Division of Golden State Water Company, and Mountain Utilities
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The tariff rate is determined by the following formula:
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Price paid in $/kWh = (kWh of energy distributed onto the grid at a certain time) * (the baseload market price reference fixed at time of actual commercial operation) * (the time of delivery adjustment)
o
More information on these factors can be found in the order establishing the tariff from the CA PUC
Electricity purchased by the utility under this tariff may be used to satisfy the state renewable energy standards.
IRS bulletin 2007-45 (skip to page 967) provides a summary of IRS Rev Proc 2007-65 which establishes a safe harbor for the allocation of tax credits for wind projects that use a flip business structure.
A 2007 presentation from a webinar about Federal bonding incentives.
A 2007 presentation from a webinar about Federal bonding incentives.
The theme of this year's convention will focus on renewable energy economic opportunities for farmers, ranchers and rural communities.
Ethanol, cellulosic ethanol, biodiesel, carbon sequestration, and farmer- and community-owned wind (technology) each represent a new renewable energy based market with new sources of revenue.
In order to maximize the long-term economic benefits of these new value-added renewable energy opportunities for rural communities, the converence will focus on farmer and community ownership of this new renewable energy development.
Minneapolis, MN - The Midwest is one of the nation's most valuable renewable energy regions. In this conference, leading renewable energy professionals address opportunities and challenges for developers including the business and regulatory environment for renewables in the Midwest.
Overview
The New Markets Tax Credit Program (NMTC) provides a credit against Federal income taxes in exchange for making qualified equity investments in designated Community Development Entities (CDEs). All of these investments must in turn be used by the CDE to provide loans or equity investments for designated projects in lower-income communities. The credits are provided to the CDE and passed through to investors based on their proportionate investment in the CDE. The credits are equal to 39 percent of the funds invested and are claimed over a seven-year credit allowance period. In each of the first three years, the investor receives a credit equal to five percent of the total amount paid for the stock or capital interest at the time of purchase. For the final four years, the value of the credit is six percent annually. Investors may not redeem their investments in CDEs prior to the conclusion of the seven-year period.
CDE’s apply for an allocation during the annual allocation period (July-September). The CDE does not have to identify specific projects or have a committed source of capital to fund those projects. To date, the Fund has made 170 awards totaling $8 billion in allocation authority.
A designated community must meet certain low-income characteristics. Eligible communities include low-income rural counties with high out-migration. An organization wishing to receive awards under the NMTC Program must be certified as a CDE by the Fund.
Once a CDE is awarded a NMTC allocation, it solicits projects consistent with its targeted investments. At the same time, it attracts private capital to invest in the CDE. The CDE then makes equity investments in or lends to the designated projects. Lending terms are usually better than what may be offered by commercial lenders. The outside investors receive tax credits and, depending on the structure of the transaction, either interest payments from or an equity stake in the projects.
Eligibility
To qualify as a CDE, an organization must:
Wind Applicability
In 2006, three Midwestern and one Gulf Coast CDEs were awarded NMTC allocations to provide debt and equity for rural businesses involved in value-added agricultural activities including renewable energy. These were:
Midwest Minnesota Community Development Corporation, Detroit Lakes, MN
www.mmcdc.com
$80 million allocation
Projects in Minnesota
Dakotas America, LLC, Sioux Falls, SD
www.dakotasamerica.com
$50 million allocation
Projects in North and South Dakota
American Community Renewable Energy Fund, LLC, New Orleans, LA
www.amcref.com
$42 million allocation
Projects in the Gulf Coast
Potential developers of community wind or other renewable energy projects in the targeted geographic investment areas of the four CDE entities listed above can contact them to discuss financing considerations.
Combining NMTCs with the PTC
According to tax counsel at the law firm Nixon Peabody LLP, a renewable energy project that is eligible for Section 45 tax credits can utilize both NMTCs and the production tax credits from the project. Unlike other grant or subsidized loan programs, there would be no reduction in the available production tax credits from the project. If the CDE is providing debt to the project, then the investors in the CDE can claim the NMTCs while equity investors in the project can claim the PTCs. If the CDE is providing equity support to the project (less typical these days because the Treasury strongly favors CDEs that aren’t “related” to the businesses they invest in), then the investors in the CDE can claim both the NMTCs and their proportionate share of the PTCs. Note that for a typical wind project ($1,500/kW, 35% capacity factor), the New Markets Tax Credit has roughly the same value as the PTC.
For More Information
This 2000 report out of the National Renewable Energy Laboratory reviews an assessment of distributed wind generation and it's associated business, policy and technical issues, and includes action steps for facilitating the growth of distributed wind.
The project, "Power Through Policy: Best Practices for Cost-Effective Distributed Wind," will identify policies most helpful in making consumer-owned wind turbines more affordable, measuring the impact of various policy combinations on the cost of energy, and highlighting attractive state and utility markets for small wind turbines that offer the quickest return on investment. The project will use a financial model to determine which policy options have the most impact on improving the bottom line of small-scale wind turbines.
Lawrence Berkely National Laboratory (LBNL) and the National Renewable Energy Laboratory (NREL) have released a combined report that may help wind project developers understand which federal incentives will be most economical: PTC, ITC, or Cash Grant? An Analysis of the Choice Facing Renewable Power Projects in the United States.
The Public Utilities Regulatory Policy Act of 1978 (PURPA) was enacted as part of the National Energy Act of 1978, during a time of unprecedented energy supply instability in the United States. The law requires utilities to purchase energy from non-utility generators or small renewable energy producers that can produce electricity for less than what it would have cost for the utility to generate the power, or the "avoided cost." Although once considered a key incentive for renewable energy, PURPA is less helpful for renewables today due to lower fossil energy prices.
Read background information on PURPA on the Union of Concerned Scientists web site.
A federal law passed in 1978 that requires electric utilities to purchase electricity produced from certain efficient power producers (frequently using renewable or natural gas resources). Utilities purchase power at a rate equal to the costs they avoid by not needing to generate the power themselves. State regulatory agencies establish the rate based on local conditions, utility balance sheet, and resource reporting.
Reaching Community Wind's Potential is a report written by Windustry as a supplement to the Farmers' Legal Action Group report, Community Wind: A Review of Select State and Policy Incentives. Windustry's report discusses policy incentives for community wind, and gives general recommendations for creating policy that works.
A federal production payment of 1.5¢ per kWh that is made available to new qualifying renewable energy generation facilities. However, since the REPI involves spending of federal funds, money must be appropriated annually by Congress. The Energy Policy Act of 2005 reauthorized appropriations for fiscal years 2006 through 2026 and has expanded the list of eligible technologies and facilities owners. See 42 USCS § 13317 for the new REPI statute.
The Renewable Energy Production Incentive (REPI) provides financial incentive payments for electricity produced and sold by new qualifying renewable energy (including wind) generation facilities. Eligible electric production facilities are those owned by state and local government entities (such as municipal utilities) and not-for-profit electric cooperatives. Qualifying facilities are eligible for annual incentive payments of 1.5 cents per kilowatt-hour for the first ten-year period of their operation. This incentive is not considered bankable since it must be appropriated each year by Congress. This incentive expired September 30, 2003 but was reauthorized for 2006-2026 by the Energy Policy Act of 2005.
Read more about the REPI on the Database of State Incentives for Renewables and Efficiency website.
The U.S. Department of Energy (DOE) Technical Assistance Project (TAP) for state and local officials is offering a Web seminar on how to use funding from the 2009 Recovery Act to establish a revolving loan fund for energy efficiency and renewable energy.
The presentation will take place Wednesday, August 26, from 3 to 4:15 p.m. Eastern Daylight Time, and is titled "Revolving Loan Funds: Basics and Best Practices."
The presenters will be:
Washington, D.C., April 28, 2010 - U.S. Senators Harry Reid, Blanche Lincoln, and Debbie Stabenow were joined by former president Bill Clinton and wind energy developer Dan Juhl as they hosted a Rural Summit at the capitol. The event brought together stakeholders from communities around the country to focus on revitalizing rural America through economic development and job creation, and preserving the rural way of life for future generations.
On May 22, 2008, Congress overrode the President's veto of the Food, Conservation, and Energy Act of 2008 (the "Farm Bill"). The Farm Bill is an investment in our nation's food and farm economy. It will ensure food security and promote healthier foods and local food networks, strengthen international food aid and reform commodity and farm programs, protect our natural resources and promote homegrown renewable energy.
The Farm Bill has historically addressed not only farm regulations, but also food security and protection of environmental resources. As our country seeks to reduce its dependence on foreign oil, our ranchers and farmers will continue to be vital players in the development and growth of renewable energy resources. Biofuels, wind energy, solar power and ethanol production are all addressed in the new Farm Bill 2008.
There are a total of 14 titles in the Farm Bill ranging from commodity programs to research to energy to insurance to nutrition. Renewable energy, specifically wind generated energy, is mainly addressed by 4 titles: Conservation, Rural Development, Research, and Energy.
Similar to the previous Value-Added Produce Grants and 9006 Programs, the 2008 Farm Bill will offer both grants and guaranteed loans for eligible projects under the Renewable Energy for America Program, or REAP. The USDA Rural Development website has information on applying and guidance documents for applications.
As a result of the delay in passing the 2008 Farm Bill, Congress has extended many of the programs from the 2002 Farm Bill including the Section 9006 Renewable Energy and Energy Efficiency Improvement Program. On March 6, 2008 the USDA annouced the availability of funding for these programs under Section 9006. The deadline for applications is June 16, 2008. The 9006 Forms for applications can be found here.
For the most up-to-date application information, contact your state Rural Energy Coordinator. Check back here for updates as they are announced and stay tuned to the USDA site for more information. Also, please see the attached "Farm Bill FAQ" pdf file.
Value-Added Producer Grant Program
Section 9006 Energy Title Grant Program:
"An American Success Story" (ELPC)
USDA Websites:
2008 Award Winners and USDA 2008 Press Release
2007 Award Winners and USDA 2007 Press Release
2006 Award Winners and USDA 2006 Press Release
2005 Award Winners and USDA 2005 Press Release
2004 Award Winners and USDA 2004 Press Release
2003 Award Winners and USDA 2003 Press Release
For more information about energy provisions in the Farm Bill:
--Environmental and Energy Study Institute- Energy and Agriculture Program
--Database of Renewable Energy Incentives- Renewable Energy Systems and Energy Efficiency Improvements Program summary
--North Dakota SEED- Farm Bill Energy Title resources
--Iowa Rural Development - Farm Bill
Winners of the USDA Farm Bill for uses with wind power, 2004-2006
The United States Department of Agriculture ("USDA") is seeking comments from the public on its proposed strategic goals and planning priorities for climate change research, education and outreach programs.
The Value-Added Producer Grant (VAPG) program was first established in the Agriculture Risk Protection Act of 2000 and was later amended in the 2002 Farm Bill. Grant funds are available for planning activities and working capital for marketing value-added agricultural products and for farm-based energy. Independent producers, farmer and rancher cooperatives, agricultural producer groups, and majority-controlled producer-based business ventures are eligible.
The USDA website includes information about past winners, the application process, a full program guide, and links to the required federal forms:
www.rurdev.usda.gov/rbs/coops/vadg.htm
The Rural Business-Cooperative Service (RBS) announced the availability of approximately $19.3 million in competitive grant funds for fiscal year (FY) 2007 to help independent agricultural producers enter into value-added activities. Awards may be made for planning activities or for working capital expenses, but not for both. The maximum grant amount for a planning grant is $100,000 and the maximum grant amount for a working capital grant is $300,000.Paper copies must be postmarked and mailed, shipped, or sent overnight no later than May 16, 2007, to be eligible for FY 2007 grant funding. Electronic copies must be received by May 16, 2007 to be eligible for FY 2007 grant funding.
Value Added Produce Grants website
Contact your State Rural Development Office for details.
Wray Farmer-Owned Wind Farm Group, Colorado: $128,000
Grant funds will be used to conduct a feasibility study and to develop a business plan for a farmer-owned commercial wind energy project in Wray, CO.
Iowa Floyd County Wind: $7,312
Purpose: This is a 6 member producer group using Value-added Producer Grants funds to investigate the potential of electrical wind generation in Floyd County, IA.
Iowa Farm Energy, LLC: $7,500
Purpose: Farm Energy, LLC requested grant funds to assist in determining the feasibility and business planning of a small scale producer owned wind farm in Northwest Iowa.
Idaho West Slope Farms, Inc: $20,250
Purpose: To determine the feasibility of installing on-farm wind turbines.
Oregon Summit Ridge Group: $85,900
Provided a positive outcome of the feasibility study, the project will create a new business to coordinate and finance the development, construction and operation of on-farm wind turbines, resulting in the sale of electricity.
Harvest Land Cooperative, Morgan, Minnesota: $148,000
Purpose: To assist in the development of on-farm renewable energy generation using wind.
Last Mile Electric Cooperative, Olympia, Washington: $150,000
Purpose: To assess the feasibility of installing small scale wind turbines on farms in the Pacific Northwest.
"Increasing the amount of energy America gets from wind is a good idea," agree 89% of American voters, according to a new poll released by the American Wind Energy Association (AWEA). The poll shows that only clean energy sources incuding wind, solar, and natural gas receive a favorable opinion, while coal and oil are given unfavorable ratings, and nuclear energy has split ratings with no majority opinion.
The New Federal Tax Exempt Bonding Bill for Community Energy webinar was recorded on June 1, 2007.
The proposed Rural Community Renewable Energy Bonds Act (S. 672), introduced by Sen. Ken Salazar (D-CO) and Sen. Gordon Smith (R-OR), would provide tax exempt private purpose bonds to fund locally owned community energy projects, e.g. those under 40 MW with at least 49% local ownership. If enacted, this bill would give local community energy project developers a better alternative to federal renewable energy production tax credit funding.
To view just the slides from the presentations, click on the links in the list of speakers, below.
Speakers include:
John Covert
Executive Director, Colorado Working Landscapes (Introduction)
Presentation: Introduction
Lisa Daniels
Executive Director, Windustry (Moderator)
Presentation: Financing Locally Owned Wind Projects
Steve Black
Energy Advisor to Senator Salazar
Gregory Johnson
Partner, Patton Boggs, LLP
Presentation: New Financing Opportunities for Renewable Energy
Lee White
Executive Vice-President, George K. Baum & Company
Presentation: Financing Renewable Energy Projects
Andy Olsen
Environmental Law and Policy Center
Presentation: Next Steps
For more information about the Rural Community Renewable Energy Bond Act contact:
Lee White
Renewable Energy Finance Coalition (http://www.refcoalition.com)
303-292-1600
[email protected]
Webinar Sponsored by:
Renewable Energy Finance Coalition
Environmental Law and Policy Center
Windustry
Washington, D.C. - U.S. Representative Tim Walz and House Agriculture Committee Chairman Collin Peterson have introduced the Wind Energy Promotion Act, which will make it easier for individuals and small groups to take advantage of tax incentives that encourage wind energy production. Walz, a freshman member of the Agriculture Committee, said he heard about the need for the legislation while he was holding a series of Farm Bill forums throughout southern Minnesota in February and April.
2002 Farm Bill Makes History with New Energy Title
Winter 1999 Newsletter
Wind Energy Sails into the Next Millennium
Women of Wind Energy - Twin Cities is pleased to host a Legislative Policy Panel, to include:
