| Energy and agriculture |
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| Energy and ag news |
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Canola research field near Independence in May 2008
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Claiming Oregon’s biomass tax credits
The 2007 Legislature created tax credits for a variety of materials converted to biofuels or bioenergy. Learn more about the credits and how to claim them for tax year 2008.
Why we should continue support for renewable fuels despite falling oil prices
This summer, as gasoline prices reached $4 per gallon and diesel approached $5, ethanol and biodiesel became attractive to consumers because of their lower price in addition to their environmental and energy security benefits, and the creation of domestic jobs and wealth.
With the recent economic downturn, energy prices have plummeted. Gasoline is below $2 per gallon and diesel is well under $3. Ethanol and biodiesel are now more costly per gallon than gasoline and diesel.
Some American consumers may wonder if the current situation is similar to the energy crisis of the 1970s, which caused only temporary spikes in energy prices. However, key factors indicate the current situation is significantly different, and it is critical that we continue to support diversification and strategic management of our energy supply.
Read more...
Oregon State University publishes enterprise budgets for oilseeds, biodiesel production
Two new tools are available for producers interested in growing oilseed crops and producing biodiesel. Oregon State University has created enterprise budgets for winter canola, camelina, and flax, as well as an economic assessment tool for crushing oilseeds and processing the oil into biodiesel. The winter canola, camelina, and flax budgets are combined into one Excel document, along with several other field crops such as winter wheat and tall fescue. Both tools allow the user to change input costs and crop prices to reflect current conditions. The documents are available on the OSU-ODA Oilseed Project Web site, along with a variety of other resources about producing biodiesel.
USDA accepting applications for Biorefinery Assistance Program
USDA Rural Development is currently accepting applications for loan guarantees under the Biorefinery Assistance Program. For more information and application forms, visit the program Web site.
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| Energy and ag overview |
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Solar-powered livestock watering system in Crook County
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Major opportunities exist for Oregon agriculture in the fields of renewable energy and energy efficiency. Oregon farms and ranches create many potential feedstocks to generate energy and fuels, and can also develop energy facilities such as solar photovoltaic systems, wind turbines, small hydropower facilities, and geothermal systems. A variety of tools and practices are available to producers to reduce energy use and costs. Technologies and incentives for renewable energy and energy conservation are improving.
Download a brochure (956K pdf) about renewable energy and energy efficiency opportunities for Oregon agriculture.
Oregon’s renewable energy action plan
The Oregon Department of Agriculture joined with the Oregon Department of Energy and other partners to develop a renewable energy action plan for Oregon. Strategies in the action plan include renewable fuel generation and energy conservation. The final action plan was published in April 2005, and helped guide several renewable energy initiatives passed in the 2007 Oregon legislative session. Agency stakeholders continue to meet to guide the implementation of the action plan.
The 25 X ’25 coalition
25 X ’25 is a broad coalition of business, conservation, and government representatives who share the following vision: by 2025, America's farms, forests and ranches will provide 25 percent of the total energy consumed in the United States, while continuing to produce safe, abundant, and affordable food, feed and fiber. The Oregon Department of Agriculture supports and shares the 25 X ’25 vision.
Harvesting clean energy
Harvesting Clean Energy is an annual conference coordinated by Climate Solutions that promotes renewable energy and energy efficiency development for agriculture and other rural interests in the Pacific Northwest. The conference is held on a rotating basis in Oregon, Washington, Idaho, and Montana. Conference topics include:
- wind power
- biofuels
- biogas digesters
- other on-farm applications of renewable energy technology such as solar, micro-hydro, and geothermal
- energy efficiency
The next Harvesting Clean Energy conference will take place in Billings, Montana, January 27-29, 2009. Check the conference website for updates and registration information.
Oregon's response to climate change
There is growing concern that greenhouse gas emissions associated with human activities are affecting the world’s climate. A variety of efforts are underway internationally to address greenhouse gas emissions and adapt to anticipated climate change.
Oregon has joined the Western Climate Initiative (WCI), a coalition of governments on the west coast working to inventory and reduce greenhouse gas emissions and help stakeholders adapt to climate change. WCI covers an area from western Canada across the western US and into Mexico.
The Oregon Global Warming Commission is working to develop policy recommendations to address climate change in future legislatures and administrations. Jim Rue, a former Board of Agriculture member, serves on the Commission. ODA Director Katy Coba is also an ex-oficio member of the Commission. Learn more about Oregon’s efforts to address climate change and possible benefits to agriculture from climate change response strategies.
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| Energy efficiency |
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Greenhouse with efficient in-floor heating system
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Before considering renewable energy projects, it’s a good idea to evaluate energy-saving opportunities on your agricultural operation. Energy efficiency measures are often cheaper than renewable energy projects. Also, if you make energy efficiency improvements before planning a renewable project, you can match the size of the renewable project to your lowered energy use, saving costs.
A variety of programs and technologies are available to reduce energy use on agricultural operations. Reduced tillage offers fuel savings in addition to benefiting soil quality. Precision farming systems can reduce both fuel and fertilizer use. In addition to using more efficient irrigation equipment, management strategies such as frequent nozzle inspection and replacement can help reduce energy use from irrigation. Dairies, poultry growers, nurseries, and processors can save significantly by installing more efficient lighting, heating, and cooling systems.
Below are a few energy saving strategies for different types of agricultural operations. The “Publications and resources” section includes links to additional ideas and information.
Dairy operations
- Variable speed drives on vacuum pump motors
- Scroll compressors in refrigeration systems
- In-line plate cooler to cool milk before it enters the bulk tank
- Energy-efficient lighting
- Energy-efficient fans
Greenhouses
- Weatherstripping around doors
- Caulking or weatherstripping gaps along corners
- Double poly on sidewalls
- Floor or under-bench heating system
- Thermal blankets
- Drip irrigation systems
Irrigators
- Premium efficiency irrigation pumps
- Frequent maintenance of all system components
- Variable speed drives on pump motors
- Ensure irrigation pump is properly sized
- Upgrade to more efficient irrigation system, e.g. from wheel lines to pivot or linear sprinkler systems
Farm Vehicles
- Reduced till or no-till system
- Overlap reduction system
- Keep tires properly inflated
- Minimize idling
- Perform regular vehicle maintenance
Energy efficiency incentives
Oregon’s Business Energy Tax Credit (BETC) provides a 35% credit for energy and fuel conservation projects. You must apply for the credit prior to beginning your project.
Residential Energy Tax Credits are available for a variety of efficiency measures, such as efficient appliances, heating and cooling systems, and water heaters.
Energy Trust of Oregon provides incentives and support to help businesses install qualified energy efficient equipment. Oregon customers of Pacific Power, Portland General Electric, NW Natural Gas, and Cascade Natural Gas are eligible. Typical projects include energy efficiency upgrades to irrigation systems, motors, pumps, air compressors, fans and lighting, and installation of variable frequency/speed drives.
USDA Rural Development offers competitive grants for up to 25% of the costs of energy efficiency projects. Prior to applying, you must have an energy audit completed by a certified assessor.
Success stories
Nursery upgrades greenhouse walls, installs roof vents
Nursery maximizes energy value through efficiency projects
Dairy follows energy pyramid philosophy: efficiency, then renewables
Farmers save energy in Grande Ronde Valley with management technologies, incentives
Nursery energy efficiency measures save money, earn Salmon-Safe certification
Publications and resources
Tips to reduce agricultural energy costs from Mississippi State University Extension Service
The USDA Natural Resources Conservation Service Energy Estimator offers energy saving suggestions for nitrogen, tillage, irrigation, and animal housing.
The Farm Assessment Toolkit developed jointly by the University of Wisconsin and Focus on Energy assesses your farm’s energy efficiency and identifies efficiency opportunities.
The National Sustainable Agriculture Information Service Web site includes a wide variety of energy-related publications, success stories, and links.
Oregon Resource Conservation & Development (RC&D) Councils help producers conduct on-farm energy audits and secure program funding for energy efficiency upgrades. Those who want to develop and complete projects to save energy and money on the farm, or need help sorting through programs, can find assistance through services from Oregon’s RC&D councils to
- Conduct a comprehensive on-farm energy audit
- Identify energy efficiency improvements
- Seek grants and other funding for upgrades from USDA Rural Development, Oregon Department of Energy, Energy Trust of Oregon, local utilities, and others
To obtain contact information for Oregon RC&D councils, contact Merlin Berg at (541) 296-2391 x117 or Karen Strohmeyer at (541) 967-5925, or visit the Wy’East RC&D Web site.
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| Biofuels and bioenergy |
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Methane digester at Cal-Gon Farms, Salem
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A variety of agricultural crops and byproducts can generate heat, electricity, and fuel. Oilseed crops can be crushed and converted to biodiesel, and grains can be processed into ethanol. Several biofuel companies and researchers are refining technologies to produce cellulosic ethanol from materials such as grass straw, poplar, and biosolids. Livestock manure and food processing byproducts can be used in methane digesters. Wood waste from nursery clippings, poplar, juniper, and forest slash materials can power boilers to generate heat and electricity.
Agricultural operations can produce and use biomass and biofuels in a variety of ways. Many operations use wood waste for heat and/or electricity generation. Some producers are purchasing or manufacturing biodiesel for their farm equipment. Others are selling oil to biodiesel manufacturers. Growers are also participating in trials to investigate appropriate crops for biodiesel and cellulosic ethanol production in the Pacific Northwest.
The costs and benefits of using and/or producing biomass for bioenergy production or crops for biofuels vary greatly with the type of technology. For more complex projects, a feasibility study and/or business plan is valuable to evaluate whether the project will work for your operation.
Permits
Permit requirements for biofuel or bioenergy production vary depending on the type of project. Generally, fuel and energy generation facilities on agricultural lands require a land use permit from your county planning department. If a component of the energy generation facility, such as an engine, will produce emissions, you may also need a permit from the Oregon Department of Environmental Quality.
If you are interested in growing canola (rapeseed) for biofuels, you need to first check to find out if you are in a rapeseed control area. If your growing site is within one of these areas, you may only grow canola for oil with a special permit from Oregon Department of Agriculture.
Anyone producing fuel in Oregon must be licensed with the Oregon Department of Transportation. If the fuel is used in off-road machinery or equipment, it is not taxed. If it is used on public roads, it is taxed at 24 cents per gallon. For more information, visit the Oregon Department of Transportation Fuels Tax Web site.
Some additional permits are necessary for anaerobic digesters. If a digester is installed on a Confined Animal Feeding Operation (CAFO) permitted by the Oregon Department of Agriculture, the digester design must be submitted to ODA for approval prior to construction. If products produced from the digester will be marketed as having nutrient value, an ODA fertilizer license may be required. If other material is brought in from offsite to be added to the digester, a solid waste permit may be required from the Oregon Department of Environmental Quality or solid waste issues must be addressed in the CAFO permit.
Incentives
There are a number of primary tax credit and incentives in Oregon for agricultural producers to develop biofuels or bioenergy projects.
Oregon’s Business Energy Tax Credit (BETC) provides a 50 percent credit for the capital costs of biofuels and bioenergy projects. You must apply for the credit before beginning your project. Examples of biofuels and bioenergy projects include the following.
- Purchase of equipment to grow biofuel feedstocks and process them on the farm
- Purchase of infrastructure to store and dispense biodiesel on the farm
- Installing high-efficiency combined heat and power facilities
- Installing a manure digester, or purchasing equipment to haul manure to a digester
Per-unit biomass credits are available for several types of biofuel and bioenergy feedstocks. The credits rates for biomass are
- $.05 per pound for oilseed crops
- $.90 per bushel for grain crops (corn is excluded, and wheat is eligible only after January 1, 2009)
- $.10 per gallon for virgin oil or alcohol delivered for production in Oregon from Oregon-based feedstock
- $.10 per gallon for used cooking oil or waste grease
- $10.00 per wet ton for wastewater biosolids
- $10.00 per green ton for woody biomass collected from nursery, orchard, agricultural, forest, or rangeland property in Oregon, including but not limited to prunings, thinning, plantation rotations, log landing or slash resulting from harvest or forest health stewardship
- $10.00 per green ton for grass, wheat straw, or other vegetative biomass from agricultural crops
- $5.00 per wet ton for yard debris and municipally generated food waste
- $5.00 per wet ton for animal manure and rendering offal
Learn more about the biomass tax credits and how to claim them.
Residential Energy Tax Credits are available for certain premium-efficiency wood and pellet stoves.
Energy Trust of Oregon's Biopower Program provides financial incentives to help support development of biopower projects that use organic waste to generate electricity. In some cases, Energy Trust provides funding to share the cost of feasibility studies for projects. Applications are taken on an ongoing basis. Projects must in most cases deliver power to Portland General Electric or Pacific Power in Oregon.
U.S. Department of Agriculture Rural Development offers competitive grants and loans for capital construction costs associated with renewable energy projects through the Rural Energy for America Program. Grants can range from $2,500 to $500,000, and must not exceed 25 percent of the eligible project costs.
Another USDA-Rural Development program, the Value-Added Producer Grant Program, offers competitive grants for renewable energy projects. These grants can cover up to 50 percent of the eligible project costs, and can be used for planning (feasibility studies, business planning, marketing planning, etc) with a maximum of $100,000 per project, or for working capital projects (purchase inventory, marketing campaigns, etc) at a maximum of $300,000 per project.
Download a report (100 K pdf) by the Congressional Research Service on federal biofuel incentives.
Success stories
Farm-brewed biodiesel blend powers harvesting equipment
Biofuels partnership powers city water bureau fleet
Digester helps dairy with odor, nutrient management
Michigan nursery installs biomass boiler
Missouri, Ohio growers find alternative heating sources for greenhouses
Ethanol plant fuels cows, too
A cheaper 'whey' to make ethanol
Biodiesel production and use
Producing Biodiesel in Oregon - resources for potential biodiesel producers compiled by the Oregon Department of Energy
Letter to Oregon auto dealers regarding biodiesel use and engine warranties, prepared by the Northwest Biofuels Association and Oregon Auto Dealers Association.
Business Management for Biodiesel Producers (2.1 MB pdf) published by the National Renewable Energy Laboratory
2004 Biodiesel Handling and Use Guidelines (1.6 MB pdf) published by the Energy Efficiency and Renewable Energy division of the U.S. Department of Energy
The National Biodiesel Board provides a variety of resources for biodiesel users and producers.
The Northwest Biofuels Association includes both biodiesel and ethanol producers, and also provides a variety of resources for producers and users.
World Report on Biodiesel Production published by USDA in 2004
Biodiesel in Oregon report published by Oregon Department of Agriculture – this report also includes additional biodiesel references.
Oregon State University Bioenergy Program
Biofuels Summit I: Exploring the Long-term Feasibility of an Oilseed Industry in the Columbia Basin, November 2-3, 2006
This summit included a variety of presentations about northwest oilseed crops and biofuels from researchers, policymakers, and producers, including the following.
The Farm as a Producer/Processor (.86 MB pdf) by Kent Madison, Echo, Oregon
Economics - The Bottom Line for Farmers (.7 MB pdf) by Kate Painter, Washington State University
In December 2005, Oregon Environmental Council hosted two Biodiesel on the Farm workshops in Corvallis and Pendleton. The workshops included information about on-farm processing, using biodiesel in farm equipment, and incentives for biodiesel production. Oregon Environmental Council (OEC) also hosts the Oregon Biofuels Network.
"How to" resources for small scale production
Utah Biodiesel Supply Tutorial
Biodiesel – A Primer published by the National Center for Appropriate Technology
Biodiesel processing equipment
This information is provided for reference only and does not imply any endorsement by the Oregon Department of Agriculture.
Imerjent LLC, an Oregon company, manufactures and sells Modular Reaction Units (MRUs) that are fully automated, continuous-flow biodiesel production systems, ranging from 500,000 to 4 million gallons per year.
Olympia Green Fuels in Olympia, Washington, manufactures a biodiesel processor that processes 500,000 to 1,000,000 gallons annually depending on configuration.
Utah Biodiesel Supply produces small-scale production units and also sells plans for production units made from water heaters.
Florida Biodiesel, Inc manufactures home and commercial biodiesel production units.
Planet Biodiesel has a variety of links to biodiesel processing equipment suppliers, biodiesel providers, financial incentives, and other resources.
EcoBusinessLinks provides a directory of biodiesel and other biofuel production equipment.
Presses/extractors/crushers
Screw press oil extractors..."sizes up to 300T/day available, and we stock 1, 2, 4, 5, and 6 ton models.” sawyer335@gmail.com or sawyer@pacifier.com for any questions, or call, Joel, at 503-573-1166." Portland, OR.
Goyum Screw Press manufactures and exports several oil expeller models.
Dupps manufactures agricultural processing equipment, including oilseed presses.
IBG Monforts Oekotec produces both presses and biodiesel processing equipment.
Producers’ Natural Processing, Inc.
Although most of the small-sized oil seed presses seem to be manufactured in Europe, Bob Leader of Producers' Natural Processing Inc. (PNPI) provides connections from around the U.S. on the cold press expeller method of seed oil extraction, which does not use volatile solvents. PNP does not sell equipment but does have information about where to obtain new and used equipment.
Producers' Natural Processing Inc. 8197 W 800 S
Brookston, IN 47923
765-563-3437
765-563-6753 FAX
Methane digesters
Oregon Department of Agriculture Methane Digester Web site
Midwest Rural Energy Council (MREC)
The MREC is a membership organization with Land Grant Universities in the upper Midwest whose mission is to support outreach, education and research on rural energy issues. In addition to information about anaerobic digesters, the MREC site also has other energy efficiency and renewable energy resources.
Economic Feasibility of Anaerobic Digestion To Produce Electricity on Florida Dairy Farms published by the University of Florida Extension Service
The Minnesota Project has a renewable energy program that promotes anaerobic digesters.
Anaerobic Digester Lagoon with Methane Gas Recovery: First Year Management and Economics by Leland Saele, USDA-Natural Resources Conservation Service
Valley Air Solutions, LLC provides consulting and design services for digesters.
Other biomass resources
The National Sustainable Agriculture Information Service Web site includes a wide variety of energy-related publications, success stories, and links.
The USDA Agricultural Research Service maintains a database of bioenergy research projects.
The Agricultural Marketing Resource Center is a national resource for producers interested in value-added agriculture. The Web site includes links to studies about a variety of agricultural products for bioenergy.
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| Solar |
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Courtesy of Mike Haverkate, Stoller Vineyards
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Solar projects work well across Oregon, which receives as much sun as the national average. Solar photovoltaic (PV) systems can power pumps for livestock watering, provide power to a farm or ranch building, offset a home or farm building’s electricity use, or charge electric fencing. Technology is also now available to provide solar power for irrigation.
Solar thermal systems use the sun’s energy to preheat water for home or business use. These systems can reduce energy costs for home and industrial water heating.
The costs and benefits of solar energy systems vary widely depending on your location. For a residential or business photovoltaic system, a good rule of thumb is $8 to $10 per watt of system capacity.
In certain situations, installing a solar electric system can be cheaper than installing utility lines out to a site. Even if utility power is already available at your site, solar may still be a highly economically viable option. With current tax benefits, cash incentives, and possible third party ownership and financing, solar photovoltaic and water heating may provide energy at a similar cost to utility power.
Investing in your own power generation also provides energy independence and stabilizes your energy costs for the future. In addition to the financial benefits, solar is a visible symbol of your environmental stewardship and commitment to lean energy. These benefits may offer marketing advantages. A careful evaluation of costs and incentives is necessary to make these determinations.
Permits
On agricultural lands, solar electric projects may require a building permit, in addition to an electrical permit. Solar water heating may also require a building permit in addition to a plumbing permit.
Financial incentives
Oregon’s Business Energy Tax Credit (BETC) provides a 50 percent credit for all eligible costs of photovoltaic and solar thermal systems. You must apply for the BETC before beginning your project. Residential Energy Tax Credits are also available for solar photovoltaic and solar thermal systems.
Energy Trust of Oregon offers cash incentives for eligible commercial and residential solar electric systems installed in Oregon in Pacific Power or Portland General Electric service territory, as well as for solar water heating systems offsetting gas or electricity in Portland General Electric, Pacific Power, NW Natural, and Cascade Natural Gas service territories. PV incentives are based on the rated power capacity of the solar array in wattsDC.
U.S. Department of Agriculture Rural Development offers competitive grants and loans for capital construction costs associated with renewable energy projects through the Rural Energy for America Program. Grants can range from $2,500 to $500,000, and must not exceed 25 percent of the eligible project costs.
Another USDA-Rural Development program, the Value-Added Producer Grant Program, offers competitive grants for renewable energy projects. These grants can cover up to 50 percent of the eligible project costs, and can be used for planning (feasibility studies, business planning, marketing planning, etc) with a maximum of $100,000 per project, or for working capital projects (purchase inventory, marketing campaigns, etc) at a maximum of $300,000 per project.
A 30% federal tax credit is available for solar photovoltaic projects. DSIRE USA maintains a list of both federal and state tax credits for renewable energy projects.
Success stories
Incentives align to make solar a reality for nursery
Solar watering project benefits livestock, wildlife, and rangeland health
Local growers harness sun to produce row crops, meet sustainability goals
Solar panels, efficiency measures earn green building certification for winery
Solar publications and resources
Natural Resources Canada – Applications of Solar Energy
Agricultural Applications of Solar Energy published by the U.S. Department of Energy Office of Energy Efficiency and Renewable Energy
Solar Energy information on the National Sustainable Agriculture Information Service Web site
Solar manufacturers/installers
This information is provided for reference only and does not imply any endorsement by the Oregon Department of Agriculture.
Tanner Creek Energy in Portland, Oregon has installed several solar photovoltaic systems on agricultural lands.
Summers Solar Systems in Salem, Oregon has installed several solar photovoltaic systems on agricultural lands. (503) 363-4108
Real Goods offers several small solar-powered pumps and panels.
World Water can install solar power on irrigation pumps, power pumps up to 1,000 horsepower.
American Solar produces water heaters with a variety of agricultural applications.
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| Wind |
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Several Oregon farms and ranches host large-scale wind developments on their lands, and even more farms and ranches can install smaller wind turbines to supply power to their own operations.
Wind turbine output depends heavily on the wind speeds, both at your site and at the specific height of the turbine. Wind power is generally only economical if your site has an average annual wind speed of 10 miles per hour or more. The following Web sites can help you determine if wind power may be an option at your site.
3 Tier Group
National Renewable Energy Laboratory
AWS True Wind
Permits
Like other electricity generation projects, a wind turbine will require a land use permit from your county planning department. You will also need to work with your local utility to hook your system into the power grid, if you plan to be tied to the grid. Assess the site carefully for the ability to tie to the grid, as the cost of installing new line for any significant distance to a wind site can be more than the beneficial cost of the project.
Incentives
Oregon’s Business Energy Tax Credit (BETC) provides a 50 percent credit for all eligible costs of wind systems. You must apply for the BETC before beginning your project. Residential Energy Tax Credits are also available for wind systems.
In 2007, Energy Trust of Oregon launched a Small Wind Program that provides resources and cash incentives for up to $60,000 to help customers of Portland General Electric and Pacific Power install turbines up to 50 kilowatts. Projects greater than 50 kilowatts may be eligible for funding through Energy Trust’s Community Wind Program. More information is available online or by calling toll-free 1-866-368-7878.
U.S. Department of Agriculture Rural Development offers competitive grants and loans for capital construction costs associated with renewable energy projects through the Rural Energy for America program. Grants can range from $2,500 to $500,000, and must not exceed 25 percent of the eligible project costs.
Another USDA-Rural Development program, the Value-Added Producer Grant Program, offers competitive grants for renewable energy projects. These grants can cover up to 50 percent of the eligible project costs, and can be used for planning (feasibility studies, business planning, marketing planning, etc) with a maximum of $100,000 per project, or for working capital projects (purchase inventory, marketing campaigns, etc) at a maximum of $300,000 per project.
A federal investment tax credit is now available for small wind systems. DSIRE USA maintains a list of both federal and state tax credits for renewable energy projects.
Success stories
Harnessing sun and wind: a hybrid system brings water to a remote location
Wind energy publications and resources
Wind-Powered Electric systems for Homes, Farms, and Ranches: Resources compiled by the National Sustainable Agriculture Information Service
Wind energy information compiled by the Oregon Department of Energy
Wind energy information on the National Sustainable Agriculture Information Service Web site
Wind turbine manufacturers/installers
This information is provided for reference only and does not imply any endorsement by the Oregon Department of Agriculture.
Abundant Renewable Energy in Newberg, Oregon manufactures wind turbines up to 10 kW in size.
Bergey Windpower manufactures small turbines for home or small business use.
Western Community Energy manufactures small to mid-sized turbines for home or business use.
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| Geothermal |
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Geothermal energy heats Tracy Liskey's greenhouses.
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Some regions of Oregon have sufficient geothermal resources to provide heat or power to a farm or ranch. Geothermal wells deliver steam or hot water to the ground surface, which can be used for heating or electricity generation. Examples of agricultural uses of geothermal energy include heating greenhouses, heating processing water, or heating a fruit or vegetable drying facility.
Geothermal resources exist in parts of central, eastern, and southern Oregon. The Oregon Institute of Technology maintains a list of known geothermal resources.
Permits
You will need to secure several permits prior to drilling a geothermal well. The Oregon Water Resources Department, Federal Energy Regulatory Commission, and Oregon Department of Geology and Mineral Industries are some of the main permitting agencies you may interact with. You should also contact your county planning department to determine whether you need a land use permit.
Incentives
Oregon’s Business Energy Tax Credit provides a 50 percent credit for the capital costs of geothermal projects, such as well drilling, piping, and fans. You must apply for the credit before beginning your project.
Energy Trust of Oregon’s Open Solicitation Program provides incentives and support for renewable energy projects not eligible for other Energy Trust renewable energy programs, including geothermal projects that generate electricity. Eligible projects must either be located in or deliver power to the Oregon service territories of Portland General Electric or Pacific Power. Off-grid projects are not eligible for Energy Trust support. More information is available on the Energy Trust Web site or by calling toll-free 1-866-368-7878.
U.S. Department of Agriculture Rural Development offers competitive grants and loans for capital construction costs associated with renewable energy projects through the Rural Energy for America Program. Grants can range from $2,500 to $500,000, and must not exceed 25 percent of the eligible project costs.
Another USDA-Rural Development program, the Value-Added Producer Grant Program, offers competitive grants for renewable energy projects. These grants can cover up to 50 percent of the eligible project costs, and can be used for planning (feasibility studies, business planning, marketing planning, etc) with a maximum of $100,000 per project, or for working capital projects (purchase inventory, marketing campaigns, etc) at a maximum of $300,000 per project.
Success stories
Geothermal resources allow Klamath Falls farm to diversify, produce clean fuel
Geothermal energy publications and resources
Geothermal Energy Overview by the Oregon Department of Energy
The Geo-Heat Center at the Oregon Institute of Technology in Klamath Falls conducts geothermal heat research and maintains a database of geothermal resources in Oregon.
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| Small hydro |
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Water flows from this pond to hydroelectric turbines.
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Small hydroelectric or micro-hydro systems are a highly efficient form of renewable energy. Micro-hydro systems involve diverting water from a water source such as a stream or pond, and piping the water to a turbine, generating electricity. There are also opportunities to install turbines on piped irrigation canals.
To determine if a micro- or small-scale hydropower system is appropriate for your farm, ranch, or irrigation district, the first step is to determine how much power the system can generate based on the amount of water flow and head. Canyon Hydro offers a tutorial on how to determine water flow. You can roughly estimate head, or water pressure, by the vertical distance the water must travel between the top of the pipe, or penstock, and the point where the water discharges from the turbine.
Costs of a hydroelectric system vary greatly depending on the type of facility. Potential costs include the turbine(s), penstock, powerhouse construction, interconnection with utility power, and any earthmoving for water storage ponds.
You will need to secure several permits prior to installing a small hydropower facility. The Oregon Water Resources Department, the Federal Energy Regulatory Commission, Oregon Department of Fish and Wildlife, and the Oregon Department of State Lands are some of the main permitting agencies you may interact with. You should also contact your county planning department to determine whether you need a land use permit.
Incentives
Oregon’s Business Energy Tax Credit provides a 50 percent credit for all eligible costs of small hydropower systems. You must apply for this credit before beginning your project. Applications are available from the Oregon Department of Energy.
The Energy Trust of Oregon’s Open Solicitation Program provides incentives and support for renewable energy projects not eligible for other Energy Trust renewable energy programs, including hydropower. Eligible projects must either be located in or deliver power to the Oregon service territories of Portland General Electric or Pacific Power. Off-grid projects are not eligible for Energy Trust support. Projects must also be located outside of state or federally protected areas to receive Energy Trust funding.
U.S. Department of Agriculture Rural Development offers competitive grants and loans for capital construction costs associated with renewable energy projects through the Rural Energy for America program. Grants can range from $2,500 to $500,000, and must not exceed 25 percent of the eligible project costs.
Success stories
Crown Hill Farm: small hydro pioneer
Hydropower publications and resources
Guide to Hydro Power by Canyon Hydro
Micro Hydroelectric Systems overview by Oregon Department of Energy
Hydropower equipment manufacturers and installers
This information is provided for reference only and does not imply any endorsement by the Oregon Department of Agriculture.
Canyon Hydro manufactures turbines for residential and commercial use.
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| Other resources |
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Renewable energy reports and information
The National Sustainable Agriculture Information Service Web site includes a wide variety of energy-related publications, success stories, and links.
The Washington State University (WSU) Energy Program is part of WSU’s Extension Service and provides a variety of energy services, products, and information. WSU also has published a variety of energy-related reports.
The Environmental and Energy Study Institute maintains information on federal renewable energy research.
Two studies released by the 25 x '25 Coalition indicate the strong potential for renewable energy adoption in the U.S. First, a RAND Corporation study shows that increasing the use of renewable energy may lower the country's total future energy costs relative to our current path, under the right conditions regarding energy prices and technology improvements. The RAND Corporation used energy demand and supply projections prepared by the U.S. Energy Information Administration (EIA) and ran 1,500 separate analyses, varying future costs and rates of technological change for both fossil fuels and renewable energy. The RAND analysis found that renewable energy could produce 25% of U.S. electric power and motor vehicle fuels by 2025 at no additional cost to the economy, as long as renewable technology continues to improve at least 20% in the next 20 years relative to fossil fuel technologies.
The second study, an economic analysis conducted by researchers at the University of Tennessee, outlines how America's vast natural resources can be tapped to produce 25 percent of the nation's energy supply from renewable sources by 2025. With continued advancements in technology and significant shifts in cropping patterns, U.S. farmers, ranchers and foresters can all contribute to this energy goal while still providing abundant supplies of food, feed and fiber, according to the scenarios outlined in the report.
The National Sustainable Agriculture Information Service has a variety of energy efficiency and renewable energy-related resources on its Web site, including Renewable Energy Opportunities on the Farm (1.5 MB pdf).
2008 Farm Bill opportunities
Biobased markets program
Establishes process for determining eligibility criteria for intermediate ingredients and feedstocks for Federal agency procurement. Continues voluntary "USDA Certified Biobased Product" labeling program and establishes a process for determining which new products may qualify to receive the label. Adds heating oil as an excluded category. Calls for establishment of a National Testing Center Registry of testing centers for biobased products that will serve biobased product manufacturers.
Biorefinery assistance program
Authorizes competitive grants to assist development and construction of demonstration-scale biorefineries that convert renewable biomass to advanced biofuels. Grants may not exceed 30% of project cost.
Authorizes loan guarantees to fund development, construction, and retrofitting of commercial-scale biorefineries. Loan guarantees of up to 90% of principal and interest may not exceed $250 million and are limited to 80% of project costs.
Grants and loan guarantees for both types of projects are subject to feasibility studies and a scoring system.
Repowering assistance
Authorizes payments to encourage existing biorefineries to replace fossil fuels used to produce heat or power for operation of the biorefinery. Payments would be made for installation of new systems that use renewable biomass or for new production of energy from renewable biomass.
Bioenergy program for advanced biofuels
Advanced biofuel producers entering into contract with USDA are reimbursed a proportion of feedstocks purchased for additional biofuel production. Eligible producers entering into a contract with Secretary are paid based on quantity and duration of advanced biofuel production and on net nonrenewable energy content of the advanced biofuel. Funding to a single eligible producer may be limited to ensure equitable distribution of funding.
Biodiesel fuel education program
Grants to non-profit organizations and higher education to educate private and government users of vehicle fleets about the benefits of biodiesel fuel use.
Rural Energy for America program
Provides grants and loan guarantees for energy audits, feasibility studies, and project development of renewable energy systems/energy efficiency improvements.
Competitive grants may be provided to government, educational, or other institutions to promote energy audits, improved energy efficiency, and use of renewable energy technologies and resources. Agricultural producers or rural small businesses are required to pay at least 25% of cost of an energy audit conducted by a grant recipient.
Grants for energy efficiency improvements and renewable energy systems may not exceed 25% of cost. Loan guarantees are capped at $25 million/loan. Combination of grant and loan guarantees may not exceed 75% of cost.
Biomass Research and Development
Up to $35 million/yr. available over next several years for biomass research and development. See the full request for details. Grant will pay up to 80% of the cost of a project with a 20% match requirement.
Rural Energy Self-Sufficiency Initiative
Authorizes new program to provide financial assistance to increase energy self-sufficiency of rural communities. Provides grants to conduct energy assessments, formulate plans to reduce energy use from conventional sources, and install integrated renewable energy systems, Integrated renewable energy systems are defined as community-wide systems that reduce conventional energy use and incorporate renewable energy use.
Biomass Crop Assistance program
Establishes a program to support establishment and production of eligible crops for conversion to bioenergy, and to assist agricultural and forest landowners with collection, harvest, storage, and transportation of these crops to conversion facility. Project sponsors apply for selection as Biomass Crop Assistance Program (BCAP) project areas. Requires Secretary to provide necessary financial assistance to eligible producers in selected areas. Assistance includes:
- payments for up to 75% of cost of establishing an eligible crop
- annual payments to support production
- matching payments of up to $45/ton for 2 years for collection, harvest, storage, and transportation to a biomass conversion facility
Contract terms are up to 5 years for annual and perennial crops and up to 15 years for woody biomass. Eligible crops and other biomass do not include those eligible for commodity payments under Title I, invasive or noxious plants, animal waste and byproducts, food and yard waste, or algae. Specified conservation practices must be adhered to.
Provides funding separate from BCAP program for collection, harvest, storage, and transport of certain biomass for delivery to biomass conversion facility.
Sun Grant program
Revises Sun Grant Research Initiative; authorizes grants to 5 regionally based Sun Grant Centers and 1 subcenter intended to:
- develop, distribute, and implement biobased technologies
- promote diversification and environmental sustainability through biobased energy and product technologies
- promote diversification of rural areas through biobased energy
- enhance efficiency of bioenergy and biomass research and development through collaborations among USDA, Department of Energy (DOE), and land grant universities
Forest Biomass for Energy
Authorizes new competitive research and development program to encourage use of forest biomass for energy. To be administered by USDA's Forest Service, priority project areas include:
- developing technology and techniques to use low-value forest biomass for energy production
- developing processes to integrate energy production from forest biomass into biorefineries
- developing new transportation fuels from forest biomass
- improving growth and yield of trees intended for renewable energy
Community Wood Energy program
Authorizes new program to provide State and local governments with matching grants of up to $50,000 to develop community wood energy plans and to fund a program of competitive grants to acquire community wood energy systems (that use woody biomass as the primary fuel) for public facilities.
Biofuels Infrastructure Study
Requires Secretaries of Agriculture, Energy, and Transportation and Administrator of Environmental Protection Agency to jointly conduct a study that includes:
- assessment of infrastructure needs for expanding domestic production, transport, and distribution of biofuels
- recommendations for infrastructure needs
- development of a report that summarizes infrastructure needs, analyses alternative development approaches, and provides recommendations for specific infrastructure development actions taken
Renewable Fertilizer Study
Requires Secretary to conduct a study to assess current state of knowledge regarding potential for production of fertilizer from renewable-energy sources in rural areas.
Study on Bioenergy Operations
Directs Secretary to conduct a study to evaluate role of animal manure as fertilizer and potential additional uses. Study to evaluate:
- extent to which animal manure is used as fertilizer in agricultural operations, by type and size of operations
- potential impact on consumers and agricultural operations resulting from limits on use of animal manure as fertilizer
- effects on agriculture production due to increased competition for animal manure from bioenergy producers, including as feedstock or replacement for fossil fuels
Other incentives
Value-Added Producer Grants
Applications for this program will likely be accepted again beginning in early 2009. It's important to start working on a proposal well in advance of the appiication deadline.
The Value-Added Producer Grant (USDA/VAPG) is intended to help independent agricultural producers enter into value-added activities. The grant can be used to fund one of the following two activities:
- Planning activities needed to establish a viable value-added marketing opportunity for an agricultural product (e.g. conduct a feasibility study, develop a business plan, develop a marketing plan); or
- Acquire working capital to operate a value-added business venture that will allow producers to better compete in domestic and international markets. Renewable energy projects are eligible for this funding.
Contact: Martin Zone, USDA Rural Development, (503) 414-3361
The Federal Bio-based Initiative and Procurement Program Web site was established to
- Provide federal agencies with information that will help them meet requirements to purchase biobased products
- Increase awareness of biobased products among manufacturers/vendors, federal agencies, and public consumers.
- Be a source of information on those biobased products designated for preferred procurement.
- In the future, serve as the gateway through which manufacturers/vendors of qualifying biobased products can obtain the use of the official "U.S.D.A. Certified Biobased Product" label.
The Oregon Department of Energy administers the Business Energy Tax Credit Program and Energy Loan Program
DSIRE USA maintains a database of state and federal incentives for renewable energy projects.
Energy Trust of Oregon provides incentives and support for a variety of energy efficiency and renewable energy projects. Eligible projects must in most cases be located in or deliver power to the service territories of Portland General Electric or Pacific Power. Off-grid projects are not eligible for Energy Trust support. Energy Trust also offers cost-sharing for grantwriting or feasibility study costs associated with certain renewable energy projects.
The West Coast Collaborative, a public-private partnership to reduce diesel emissions, has compiled a list of grants and resources on their Web site.
The Western Sustainable Ag Research Grant Program (SARE) seeks research and education proposals that meet the following goals.
- Satisfy human food and fiber needs
- Enhance environmental quality and the natural resource base upon which the agricultural economy depends
- Make the most efficient use of nonrenewable and on-farm resources and integrate, where appropriate, natural biological cycles and controls
- Sustain the economic viability of agricultural operations and their communities
- Enhance the quality of life for farmers and ranchers and society as a whole
Agricultural producers can submit Farmer/Rancher SARE proposals to conduct research and/or on-farm demonstrations and educational outreach in an area of sustainable agriculture with assistance from an agricultural or natural resource professional.
Agricultural or natural resource professionals, working with one or more producers, can submit Producer/Professional SARE proposals to conduct research, on-farm demonstration and/or educational outreach in an area of sustainable agriculture.
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| The food vs. fuel debate |
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Biofuels are a very small factor in recent food price increases. Several studies and experts have concluded that biofuel impacts on food prices are 2 to 4% of the 40% increase in prices globally, and about 2/10ths of 1% of the 4-5% increase in food prices domestically.
- The U.S. Department of Agriculture recently held a briefing to explain that high energy prices, increasing global demand, drought, and other factors-- not biofuels-- are the primary drivers of high food costs. During the briefing, U.S. Agriculture Secretary Ed Schafer pointed to International Energy Agency data showing that global biofuels production has cut consumption of crude oil by one million barrels per day, offering daily savings of $120 million.
- Edward Lazear, chairman of the President's Council on Economic Advisers, testified to the Senate Foreign Relations Committee that corn ethanol is only responsible for about 3% of the increase in food prices over the past year.
- Informa economics released a study on December 10, 2007 about the causes of consumer food price inflation. The study found no statistical evidence that the growth in the ethanol industry is driving consumer food prices higher.
- John Urbanchuk of LECG, LLC recently released a report titled, "The relative impact of corn and energy prices in the grocery aisle," concluding that both corn and energy prices will affect food prices, but an increase in energy prices will have a much greater impact than the same increase in corn prices. View this report and others on ethanol and economic issues.
- The International Energy Agency recently posted a statement summarizing the agency’s views on the impacts of biofuels on food and energy security, economic development and reduction of greenhouse gases, as well as the importance of sustainable biofuels production.
- The Federal Reserve Bank of Kansas City released a report in March 2008 about the factors driving food price inflation. The report noted that marketing costs have been the largest driver of food price increases. Download the report (316 K pdf)
- The United Nations Conference on Trade and Development's position on biofuels policy and the global food crisis states, "It is UNCTAD's view that increased biofuels production has been, for certain crops and certain countries, a driver of food price inflation, but not the dominant one."
- Secretary of Energy Samuel W. Bodman and Secretary of Agriculture Edward T. Schafer sent a letter on June 11, 2008 to Senator Jeff Bingaman addressing a number of questions related to biofuels, food, and gasoline and diesel prices.
- Texas A&M University's Agricultural and Food Policy Center released a report titled "The Effects of Ethanol on Texas Food and Feed." A key finding was that energy price increases are the underlying force driving changes in the agriculture industry. The report concluded that corn price increases have had little effect on food price increases. The report also notes that the livestock industry has borne the costs of higher corn prices, and the structure of the industry has made it unable to pass the costs along through the supply chain.
- Duncan Green, Oxfam International's head of research, points out in a Guardian article that a lack of investment in agriculture has contributed significantly to the global food crisis.
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| Renewable fuel standards |
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In 2007, the Oregon Legislature passed renewable fuel standards for ethanol and biodiesel. The legislation specified that once ethanol and biodiesel production levels in Oregon reached certain thresholds, these biofuels must be blended into fuel sold in Oregon.
Ethanol production in Oregon reached the required threshold of 40 million gallons per year in 2007, triggering implementation of the renewable fuel standard for ethanol. Currently, fuel sold in western Oregon must be 10% ethanol, and beginning September 16, 2008, fuel sold in central and eastern Oregon must be 10% ethanol. Certain fuel uses are exempt from the 10% ethanol blending requirement.
Oregon's renewable fuel legislation set two standards for biodiesel. The first, a 2% biodiesel blending requirement, will take effect after biodiesel production in Oregon, using feedstocks from Oregon, Washington, Idaho, and Montana, reaches 5 million gallons per year. The second standard, a 5% biodiesel blending requirement, will take effect after biodiesel production using feedstocks from the four-state area reaches 15 million gallons per year.
Oregon Department of Agriculture's Measurement Standards Division will implement the renewable fuel standards for ethanol and biodiesel.
Ethanol basics
Ethanol can be blended with gasoline for automotive engine use. Ethanol is made from sugar extracted from plant materials and fermented into alcohol. In the United States, field corn is the main material (also called "feedstock") used to produce ethanol. Many other plants are being evaluated as feedstock material for conversion to ethanol.
Biodiesel basics
Biodiesel can be blended with diesel for use in diesel engines. Biodiesel is made from plant or animal-based oils. Many oilseed crops, such as soy, canola, mustard, sunflower, flax, and camelina, can be converted to biodiesel.
Benefits of Oregon's renewable fuel standards
Ethanol-blended fuel provides several benefits to Oregon consumers.
- Reduced fuel costs. A recent study estimated that ethanol in the U.S. fuel supply has reduced fuel prices by 30 to 40 cents per gallon because it is cheaper than gasoline.
- Improved air quality. Ethanol reduces emissions from vehicles of several types of pollutants, including fine particulates, ozone, and carbon monoxide.
- Lower greenhouse gas emissions. Several studies have found that greenhouse gas emissions from producing and using ethanol are lower than those from gasoline (estimates are 10-40% lower emissions).
- Greater energy return from energy investment. Several studies, including a report by the Institute for Local Self-Reliance, have looked at the benefits of ethanol over gasoline. There is general agreement that for every unit of energy put into producing ethanol, the output is 1.3 units or more. For every unit of energy put into producing gasoline, the energy output is only .8 units.
The Oregon Department of Energy's Ethanol Forum provides additional information and links about the benefits of ethanol.
Fuel economy of ethanol-blended fuel is only slightly lower than conventional gasoline. Pure ethanol has 67% of the energy value of regular gasoline (or 33% less than gasoline), so a ten percent ethanol blend has only about three percent less energy than gasoline. Some consumers have reported a larger than 3% drop in fuel economy after starting to use ethanol-blended fuel. If a vehicle's mileage drops much more than that expected three percent, possible reasons include a clogged fuel filter or a problem with the oxygen sensor.
Biodiesel provides many similar benefits to consumers.
- Air quality benefits. Biodiesel reduces emissions of pollutants such as particulate matter and sulfur dioxide.
- Lower greenhouse gas emissions. A joint study by the U.S. Departments of Agriculture and Energy found carbon dioxide emissions from soy-based biodiesel were 78 percent lower than those from gasoline.
- Greater energy return from energy investment. The same joint study referenced above found that for every unit of energy invested into biodiesel production, the energy output is 3.5 units.
Ethanol blended fuel troubleshooting
Experiencing decreased fuel economy or vehicle performance problems? A 10% ethanol blend should cause a minimal decrease in fuel economy (3% or less). This has been documented in several studies, including the following.
If you've experienced a greater drop in fuel economy, possible problems include a clogged fuel filter or bad oxygen sensor. Ethanol cleans deposits from a vehicle's gas tank and fuel system, which can result in a clogged fuel filter the first time an ethanol blend is introduced into the fuel system.
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