NEWS FROM THE AMERICAN CORN GROWERS
ASSOCIATION
For
Immediate Release Contact:
Larry Mitchell (202) 835-0330
Electricity from the
Wind: USDA Farm Bill Section 9006 Provides Funding for Farm and Ranch Wind
Projects
A Special
Report from the American Corn Growers
WASHINGTON,
May 14, 2004—Jess Algers hasn’t paid his electric bill since October
2003. And he couldn’t be happier about it.
Algers, a farmer and rancher from Stanford, Montana, hasn’t paid his electric
bill since he installed a grid-tied Bergey 10- kilowatt (kW) wind turbine. He
now produces more power than he uses, so his electric meter runs backward.
“The wind is
free, so why not use it?” Algers said.
And although
Algers’ wind turbine wasn’t free, his costs were greatly reduced when he
applied for and received two grants to help defray the cost of the project. The
first grant, a National Center for Appropriate Technology (NCAT) Universal
System Benefits (USB) grant, is offered by the state of Montana. The second
grant, a Section 9006 grant, is offered by the U.S. Department of Agriculture
(USDA) to farmers and ranchers throughout the country under provisions in the
2002 Farm Bill.
According to
Alger, the availability of the grants cemented his decision to pursue owning a
wind turbine. The grants, along with a state tax credit and good financing,
made the project affordable—and helped turn his electric bill into a distant
memory.
Algers’
project was one of 34 wind energy projects funded by the first round of Section
9006 grant awards. Farmers and ranchers interested in pursuing subsequent
funding awards should start preparing their applications as soon as possible.
Although the following overview provides basic information, interested parties
can receive up-to-date information from the local rural energy coordinators at
their respective USDA State Rural Development Offices. (A list of these rural
energy coordinators is available at http://www.rurdev.usda.gov/rbs/farmbill/contacts.htm.)
What is Section 9006 of the 2002 Farm
Bill?
Section 9006 of the 2002 Farm Bill provides funding for renewable
energy systems and energy efficiency improvement grants. On
April 8, 2003, the USDA announced the availability of $23 million in new
federal grants for farmers, ranchers, and rural businesses to help purchase
renewable energy systems and make energy efficiency improvements in 2003.
Congress approved $23 million for project funding for fiscal year 2004 as well,
and the USDA is determining how the funds will be allocated. Local USDA rural
energy coordinators have the latest details.
Who is eligible for funding?
An agricultural producer or rural small business that owns and controls
the operation may be eligible for funding. Grant funding requires that the
applicant demonstrate financial need. The funds cannot be used for research,
development, land acquisition, or crop production.
What types of projects are eligible for funding?
Renewable energy projects
include projects in which energy is derived from a wind, solar, biomass, or
geothermal source or hydrogen derived from biomass or water using wind, solar,
or geothermal energy sources. Energy efficiency improvements are improvements
to a facility or process that reduce energy consumption.
(more)