Renewable Energy Grant Funds from USDA about to Expire
The clock is ticking on government funding for energy-related investments by rural businesses. Grants and loan guarantees are available from the U.S. Department of Agriculture, but their deadlines for the year are approaching quickly.
May 20, 2005
A specialized federal incentive program encourages the adoption of renewable energy. Time is running out for applicants who hope to win grants in 2005.
The Renewable Energy Systems and Energy Efficiency Improvement grant programs, created in the 2002 Farm Bill, are administered by the U.S. Department of Agriculture's Rural Development office.
The competitive grants, sometimes known as Section 9006 grants, can be used to purchase renewable energy systems and make energy improvements for rural small businesses, farmers and ranchers.
The deadline for grant applications for the current year is June 27, 2005. After that, applications will be considered for the following federal fiscal year.
Grants awarded up to $750,000
"This program is unique because the private sector has access to the grant funds. Grants are traditionally for municipalities and non-profit organizations," says Chris Cassidy, a Rural Business and Cooperative Programs Director and Renewable Energy Coordinator for Rural Development at the USDA.
This is a relatively tiny program, with US$11.4 million available in 2005 -- nowhere near the hundreds of millions of dollars in annual subsidies to fossil fuel producers. Grant applicants may request funds to pay for energy efficiency improvements or to purchase renewable energy equipment. Qualifying energy sources are solar, wind, hydrogen fuel cells, geothermal, anaerobic digesters, and bioenergy.
Grants can cover up to 25 percent of qualifying costs. The remainder must come from other sources, such as state, local, utility, or private funding programs, or through loans obtained by the system owner. For renewable energy systems the maximum grant is $500,000. For energy efficiency improvements the maximum is $250,000.
Loan guarantees
A loan guarantee program is included in Section 9006 as a companion to the grant program. A rule proposed in Congress in October, 2004, would make $11.4 million in funds available for loan guarantees. The final rule is nearing completion, Cassidy said.
Up to 50 percent of total eligible costs could be covered from a guaranteed loan, or from a combination of guaranteed loan and grant money. Application deadlines could be as early as July.
"People should start working with their financial institutions and Rural Development offices now to put loan applications together," Cassidy advises optimistically.
Any of the $11.4 million that are not used for loan guarantees will be converted to enlarge the grant program, making up to $22.8 million in grants available this year.
No shortage of applicants
For the size of the program, it has been popular. That's despite delays in getting the bill's energy provisions fully funded. The administration's 2006 budget request cut the funding for Section 9006 by $12.8 million. Just this week, the House Appropriations Subcommittee on Agriculture restored full funding. The House and Senate are expected to act on the appropriations in July.
Compared to production-based tax incentives, grants and loans provide a stronger incentive because they help with the high up-front cost of renewable energy equipment and energy efficiency improvements on a commercial scale.
In 2004, USDA Rural Development received 237 applications totaling $36.6 million for the grant program, according to Harvesting Clean Energy, a nonprofit organization that tracks projects under the program, and an outreach of Climate Solutions.
The grant program had only $23 million in funds that year, so over $13 million in applications were turned away. In each year of the program, the funds have been fully distributed.
Anaerobic digesters solve multiple problems
The most successful grant participants are the Midwest farm states, where the primary use of the grant funds is to build anaerobic digesters. These are systems that convert biomass -- in this case, dairy cow manure -- into a gas that is burned on site to produce electricity and heat.
The heat and power go to direct use on the dairy farm. Any excess power often can be sold to the local utility at a premium. But kilowatts are not the leading motivator for installing a digester.
Large dairy farms are under scrutiny for their air and water quality impacts. As the circle of urban growth closes in on farms, odor in particular becomes a serious issue.
Digesters solve these problems, with fortuitous byproducts -- liquid fertilizer and sterile fiber -- without net consumption of electricity.
"I saw my first anaerobic digester in Africa 25 years ago, and they're all over Asia and Europe," says Cassidy, "so they're nothing new in the world, they're just new to the U.S. market and use a higher, more sophisticated technology"
Wind energy projects expand
In the Northwest, wind power projects have been popular uses of grant funds. A private wind project in Idaho is being developed with the help of the USDA grants, and a Washington state wind cooperative has taken advantage of the funds since the program began. Washington has been one of the ten most active states in the grant program.
"Washington's Last Mile Cooperative will be the state's first community-based wind facility," writes Moulton in Harvesting Clean Energy's eNews Bulletin, "and the first in the nation to directly benefit low-income citizens with energy bill assistance."
Future funding has broad support
The 2002 Farm Bill that created the grant program has a five-year life. If fully funded, the Energy title of the bill would have provided more than $400 million over the five years. Efforts are already underway to ensure renewal of the grants by Congress for 2007 and beyond.
Comments (Moderated)
I am looking for government grants , for renewable energy research. I have been working on producing millions of kilowatts of power, without using revers or nuclear sources . My work is with hydro plants , that must be within 2500 feet of any steady source of water. This does not pollute and water sources.
Posted by: george | November 20, 2005 10:08 AM
My family runs a small business of renting out lodges up in the Adirondack Mts. of New York.
We live in Wilmington, NY, close to the olympic center in Lake Placid and Whiteface Mt.
Many of us are suffering with astronomical heating bills and are in dire need of alternative energy sources to make this a more sustainable energy efficient community. I would very much appreciate any info., as we have a huge gap in the upper class and below poverty line individuals who recieve attention from volunteers in the community.
Thank-you
Posted by: Stephen O Hall | December 2, 2005 09:41 AM
We are really in need of funding. Our product is proven, but needs developed. Here is a letter of intent thank you jose clark.
Level of Technology Innovation and Energy Savings
Zero Pollution Power Supply is an invention that is an energy source that utilizes the sun to produce power primarily for electricity. Zero Pollution Power Supply through a system of different components utilizes a solar panel to power a generator to operate A. C. power equipment such as lights, TV’s, radio’s, tools, and possible assist power grids etc.
Generators of today use resources that are harmful to the environment, (i.e. emissions, noise, the work to recover resources to run the generator). Zero Pollution Power Supply is capable to perform the same tasks as of today's generators, on job sites, camp sites, R. V.’s, emergency response teams, and field operations.
The greatest benefit of Zero Pollution Power Supply is that it will perform with power supplied by the sun. It will not pollute our environment with noise or emission
from fuel. Which will in turn help the greenhouse effect the world is experiencing. It will not require the destruction of the environment to run Zero Pollution Power Supply Generators. Which in itself makes Zero Pollution Power Supply Generators superior over all conventional generators.
State-of-the-art type of generators consists of Wind Generators, Gas, Diesel, Propane, and Water.
Wind Generators are powered by the wind, but must have a minimum of 10 miles an hour of wind. Gas generators are using fossil fuels, pollution of air, and are very noise. There is submersible generators which also require a minimum speed of the stream (at around 5 mph. it will only produce 1.5 kW. of output power). Zero Pollution Power Supply uses an unlimited energy source, the sun. Zero Pollution Power Supply is designed to not use up the earths resources as conventional Gas generators, or really on the wind and the speed of a stream to produce enough power to operate lights, TV's and ect.
Our plans are to purchase .5 to 1 acre of land and to place a steel building around 40’x 30’. Will have workbenches, motor stands, welder, hand tools, and power tools. We would have local companies to mill parts we need and order all generators and dc. Motors. We are in need of approximately $250,000.00 for R&D per year.
1.
Foster & Sullivan states that in 2003 the Japan market alone sold over 200,000 units and in 2002 the U.S. market sold 357,000 units and 203,000 of those was home owners. Due to the increase of hurricane activity generator sales are increasing and look to continue to increase over the next 10 years. This is based on the last few years of generator sales due to storms and gas price increase.
According to Frost & Sullivan homeowners are the largest end users of light duty portable generator with the most popular size being 5to 6kw of output, accounting for about 52% of light duty sales. According to EPRI, most residential generator operates in the 3 to 10kw range.
Commercialization/Market Potential
The markets that are product will replace are Gas generators, Diesel generators, and Propane generators. There are about 40 U.S. suppliers of portable generators under 15kw-output range. Frost & Sullivan also indicate 3 firms dominate this market, Briggs & Stratton 27%, Coleman 18%, Honda 13%, producing about 60% of generator sales Revenue in the year 2002. We plan on replacing most gas, diesel, and propane generators in the U.S. and the world. This is primarily due to that Zero Pollution Power Supply does
not require fuel, nor does it pollute the air that we breath and that it gets it power supply from the sun.
The buyers would consist of homeowners, construction crews, R. V‘s., campers, and possible utility companies. We estimate that over 200,000 generators to be sold in the first year. Now this number could increase greatly due to the storm
activity and always-increasing gas prices. We will license to the main corporations to manufacture and sell the product once developed. We expect that with in the first 3 years Zero Pollution Power Supply will proceed past $2 billion worth of gas and diesel generator shipped by the manufactures in the year 2002 (Frost & Sullivan).
Price of our units would range about $900 - $1,200 for a 1kw generator. We know that Japan had over 200,000 generators sold in the year 2003 and Australian government states that the diesel generators consumed more than 700 million liters of diesel fuel in there country.
2.
PTI is representing Zero Pollution Power Supply at trade shows and present it to all manufactures in the market of generator power. We will license Zero Pollution Power Supply to the manufactures and allow them to further commercialize the product.
Steve Adams, inventor is in the process of filing for a patent to protect the invention from being copied or stolen. At this point no one has a patent on this technology. The patent we are apply for will protect anyone from coping, changing, or developing the product any further without Mr. Adams consent. Steve Adams Inventor 812-794-0370 and Jose Clark partner 502-732-4882.
3.
Posted by: Jose Clark | January 24, 2006 06:15 PM
Good Morning Sir/Madam,
I am Maxwell Agyeman, Ghanaian Marketing Professional. I am the Founder and Director of Juaboso Agro Processing Company-(JAPC) in Ghana, West Africa. Our Company is located in SEFWI JUABOSO DISTRICT, of the Western Region-Ghana. Our community is one of the leading farming communities with over seven large forest reserves in Ghana, which enables it to get uninterrupted supply of raw materials for its processing.
I also do Local Projects Startup Consulting Services for Rural and Community Industries in Ghana, and represent other international companies as their local agent in Ghana and West Africa, including the IRA NETWORK LLC -NEW YORK (www.businessplanfunding.com), Global Marketing Group Inc. and other European Firms.
We are currently handling two important projects in Ghana:
Ø Sefwi Wiawso Cocoa Processing Company ($15 million)
Ø Ghana Bio Fuel (Soy oil to Bio Diesel) ($70 million)
We need Start Up Capital and Investment Funds to conduct Feasibility Studies, Develop Business Plans, and the complete Projects Developments cost.
We have contracts with the IRA NETWORK LLC -NEW YORK (www.businessplanfunding.com), to undertake the Wiawso Cocoa Processing project on a turn-key base, and a contract with Renewable Energy Group (www.renewable-energy-group.com) and its Crown Iron (www.crowniron.com) Partners to undertake the Ghana Bio Diesel Project also on a Turn-Key base for us in Ghana.
All equipments and related Technologies including project commissioning and 2 years marketing services would be provided by these USA firms on these projects in Ghana. There is high possibility of equity partners between the local Ghanaian Partners and the American Development Partners. These are great business relations between Ghana and the USA.
I would like to find out if our project could access financial support from your group to assist us undertake these projects.
We need funding support in:
Conducting the Feasibility and Business Plan Development Services
Procuring the needed equipments and Technologies from the USA for installations in Ghana
Site Designs, Constructions, and Development
Raw material purchases
Working Capital
other related cost Payment
in undertaking these projects in Ghana.
Kindly let me know if can support any of the above mentioned projects and specific budget areas. Your urgent response at your earliest convenience is welcomed.
We have friendly and flexible business Environment in Ghana and would do fair and honest business with you.
I Hope to hear from you soon.
Maxwell Agyeman
c/o Mrs. Doris Agyeman
Food House-Asokwa
Box 5219-Adum
Kumasi -Ghana
West Africa
233 244 844 871
233 244 758 813
www.japc-gh.com
Posted by: Maxwell Agyeman | June 10, 2007 02:34 AM
I will be representing the Zero Pollution Power Supply project at our next APUC meeting this month in Dickinson, N.D. If you have any drawings that might explain how your system works it would be helpful. Let me know if someone would be avaialable for a phone conversation prior to the May 15 meeting.
Thanks,
Myron Thompson
Posted by: Myron Thompson | May 3, 2008 11:20 AM
I will be representing the Zero Pollution Power Supply project at our next APUC meeting this month in Dickinson, N.D. If you have any drawings that might explain how your system works it would be helpful. Let me know if someone would be avaialable for a phone conversation prior to the May 15 meeting.
Thanks,
Myron Thompson
Posted by: Myron Thompson | May 3, 2008 11:22 AM