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Section 9006 Energy Grant
Success Stories

Idaho  |  Iowa  |  Ohio  |  Oklahoma  |  Oregon  |  Pennsylvania  |  Washington 

For detail information about the program visit the Renewable Energy and Energy Efficiency Program webpage.
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Idaho:

Outline of Need:
On September 3, 2003, Idaho's U.S. Senators Larry Craig and Mike Crapo announced three U.S. Department of Agriculture grants totaling more than $1million for renewable energy systems in Idaho. "These three projects will be greatly enhanced by the grants announced today, and I am very proud of the forward-thinking efforts these gentlemen have undertaken to expand the role of renewable energy in our state," Senator Craig said.

In September of 2003, RBS approved an Energy Grant to Leroy Jarolimek. Mr. Jarolimek owns and operates a 1,900 acre farm located in Cassia County and has been farming for the past 40 years. He became interested in the potential of utilizing the wind resource on his farm several years ago and has been collecting wind resource data on his farm through an anemometer which was obtained through the Idaho Anemometer Equipment Loan Program, operated by the Idaho Energy Division, the Bonneville Power Administration, and the Idaho National Engineering and Environmental Laboratory.

How Rural Development Helped:
Energy funding in the amount of $10,000 was used to purchase and install a 20 kW wind turbine. The turbine was installed and began producing power in June of 2004. The power produced by the turbine is sold to Idaho Power through a “net metering” arrangement. It is anticipated that the wind turbine will supply the majority of power consumed by Mr. Jarolimek’s farm machinery repair shop as well as his residence.

The Results:
Title IX of the 2002 Farm Bill established the Renewable Energy Systems and Energy Efficiency Improvements (Energy) Program. Through the Energy Program, Rural Business-Cooperative Service (RBS) provided grants to agricultural producers and rural small businesses to purchase renewable energy systems and make energy efficiency improvements. The Energy Program is designed to help agricultural producers and rural small businesses reduce energy costs and consumption and help meet the nations critical energy needs.

This Energy project will meet the objectives of this Executive Order.

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Iowa:

How Rural Development Helped:
Rural Development funds in the amount $45,540 were made available to fund purchase of renewable energy systems and make energy improvements for agricultural producers and rural small businesses. In order to be eligible for grant funds, the agricultural producer or rural small business must demonstrate financial need. This project involves constructing a Bonus 450 KW wind turbine in Charles City, Iowa.

The Results:
As a result of this project one business was assisted.

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Iowa:
Outline of Need:
Rural Development funds in the amount of $12,250 were made available to fund purchase of renewable energy systems and make energy improvements for agricultural producers and rural small businesses. In order to be eligible for grant funds, the agricultural producer or rural small business must demonstrate financial need. The Grain Dryer Bin project will assist in the construction of a more efficient and faster grain drying system to replace the outdated facility in Okaloosa, Iowa.

The Results:
As a result of this project 1 business was assisted.

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Ohio:

Outline of Need:
Liquid Resources of Ohio, LLC utilized two RBS programs and partner agencies to construct a 6 million gallon ethanol plant in Medina, Ohio. Liquid Resources addresses two national priorities by reducing oil imports and improving the environment because their feedstock is not grain, but waste and stale consumer products such as beer, pop, and liquid food products. The company provides destruction services for these products and recycles the glass, plastic, and aluminum packaging as well as turns the contents into ethanol. Liquid Resources has provided a great alternative to the landfill for these products and is manufacturing an alternative fuel product in the process. The plant will be ready to produce ethanol in February, 2005 with the help of a grant awarded in the amount of $500,000.

How Rural Development Helped:
The B&I loan was further enhanced through a unique bond program issued by the Ohio Air Quality Development Authority, allowing Liquid Resources of Ohio special state tax benefits.

This project meets the agency’s biobased/bioenergy initiative and also involves a partnership with a state agency to enhance the financing package provided.

The Results:
As a result of this project, 20 jobs were created and 1 business assisted.

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Oklahoma:

Outline of Need:
COD Heat & Air Conditioning, Inc. of Perry, Oklahoma is proposing to install a new Rheem HVAC system, replace windows and new awnings. The estimate return on this project’s improvements is 10 years. The new improvements will save 30% of energy.

The Results:
An Energy Efficiency Improvement grant was awarded in the amount of $4,432. One business was assisted through this program.

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Oregon:

Outline of Need:
Columbia Energy Partners, LLC is a for profit Limited Liability Corporation established in December of 2003 for the purpose of developing wind power electrical generation projects in the Northwest. The purpose of this $500,000 Renewable Energy Systems and Energy Efficiency Improvements Grant is to assist the grantee in construction of a 4.5 megawatt wind power electrical generation facility (Mar-Lu Wind Farm).

The proposed Mar-Lu Wind farm will consist of three 1.5 megawatt wind turbines erected on a portion of an 8,500 acre parcel of private property located in the North central portion of Oregon, two miles west of Arlington, Oregon. It will generate 13,048 megawatts of renewable energy per annum to be sold under the terms of a Purchase Power Agreement with the local utility, PacifiCorp. This Renewable Energy System will provide renewable energy directly to the host community of Arlington and to surrounding Gilliam County. This project will reduce the strain on regional electrical transmission systems, reduce the dependence on hydropower and fossil fuels, provide energy security, and improve the tax and economic base of the rural communities of Gilliam County.

The Results:
This is the first phase of a 104 megawatt wind power electrical generation project which is anticipated to produce 301,554 megawatts of renewable energy per annum and provide essential power supply to the rural areas of the Pacific Northwest. The project will result in the need for additional services such as wind turbine repair and maintenance which will, in turn, create approximately 30-40 family wage job opportunities in the rural communities of Gilliam County.

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Pennsylvania:

Outline of Need:
Custom Fuels, Inc. is working to create a model agriculture resource recovery energy business that refines soybean oil into diesel fuel additive/extender.

How Rural Development Helped:
$177,975 was obligated 9/30/04

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Pennsylvania:
Outline of Need:
Turbotville Development Corp. is working to install a geothermal direct use open loop system to capture heat from water, concentrate it and sell the energy captured to businesses and residences within the project (Breeze Point Landing, Warren, PA) area.

How Rural Development Helped:
$249,435 was obligated 9/30/04

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Pennsylvania:
Outline of Need:
The Four Winds Farm is working on recoverable energy through a manure anaerobic digester: Design and install a plug flow digester. The system will utilize the dairy farm's manure to increase farm revenue by optimizing the recovery and use of energy. Treated digester effluent will provide improved manure management options.

How Rural Development Helped:
$196,978 was obligated 9/30/04

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Pennsylvania:
Outline of Need:
Frederick L. England dba Penn-England Farm is working on recoverable energy through a manure anaerobic digester: Design and install a plug flow digester. The system will utilize the dairy farm's manure to increase farm revenue by optimizing the recovery and use of energy. Treated digester effluent will provide improved manure management options.

How Rural Development Helped:
$203,725 was obligated 9/30/04

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Washington:

Outline of Need:
In Lynden, Washington, an Anaerobic Digester was created to convert dairy manure into methane gas. The methane produced is used to fire an electrical generator to provide power for a portion of the dairy’s needs. Through interconnect and power purchase agreements, the excess energy is sold to the local utility through the grid. The project meets criteria for “Green Tags” and is an approved design consistent with the AgStar program. AgStar is a joint program of the USDA, EPA, and DOE designed to encourage the use of livestock manure as an energy source. Additional benefits of the project include the reduction of greenhouse gases, reduction in surface and subsurface water contamination, reduction of odors, and the production of marketable byproducts including soil amendments and bedding material. The ability of the dairy industry to remain economically viable and retain employment in the rural areas is significant.

How Rural Development Helped:
The proceeds of the USDA Renewable Energy Grant for $272,000 and an additional $816,000 contribution from the recipient dairy and 5 neighboring dairies were used to install an anaerobic digester to convert manure from 1500 animals into methane gas.

The Results:
Job creation is not generally one of the attributes of the Renewable Energy Grant Program. However, within the Vander Haak Dairy business structure, there are two FTE positions directly involved in the renewable energy system operation and maintenance. The employees’ jobs on the 5 participating dairies are more secure because as the conversion from animal waste to clean renewable energy has made the dairies less susceptible to environmental regulatory concerns. Additional benefits include lower operating costs and additional revenue streams.