Committed to the Future of Rural Communities

8/14/2019 Committed to the Future of Rural Communities

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Committed to the future of rural communities


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POWER-GEN Renewable Energy & Fuels 2008 Conference

Session: Bio-Energy Policy and Local Opportunities USDA Renewable Energy Programs Supporting Local Economic Development

Las Vegas, Nevada February 21, 2008

William F. Hagy III Deputy Administrator, Business Programs

USDA Rural Development



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Tonight, I ask Congress to join

me in pursuing a great goal. Let us build on the work we'vedone and reduce gasoline

usage in the United States by20 percent in the next 10

years.

The Presidents State of the Union Address



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Funding for Alternate Fuels and

Advanced Technology FY 2002 Farm Bill Title IX

Other USDA Programs



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Farm Bill Energy Title

Section 9006 Renewable Energy Systems and Energy Efficiency Improvements Program

Establishes a grant, loan, and loan guarantee program to assist eligible farmers, ranchers, and rurasmall businesses in purchasing renewable energy systems and making energy efficiency improvements


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Renewable Energy Systems And Energy EfficiencyImprovements Combination

Iowa Riksch Bio-fuels, LLC needed assistance to construct a 10

mgy biodiesel production facility. $500,000 Grant.

$3,250,000 B&I Guarantee Loan. Funds used to purchase inventory, purchase factory, and

construction. 10 jobs created. Riksch Bio-fuels, LLC owned by local businesses and

farmers.



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Renewable Energy Systems and Energy EfficiencyImprovement Grant (9006)

Pennsylvania

Project Name: Koller and Son, Inc., Anaerobic Digester Amount : $500,000 - 9006 Grant Description of Project : Digestion project will convert waste cheese and waste food into

methane gas, which will replace100,000 gallons of propane use, and 1,000,000 KWHof electricity per year, for an annual savings of $375,000. An alternative energy system,reducing fossil fuels and imported oil, along with lowering emissions of greenhousegases.

Total project cost - $2,035,000 Jobs created:/Saved/Businesses Assisted: Seven jobs saved and two businesses

assisted. Leveraged funds: $375,000 from PA., DOE Harvest Grant, $350,000 from First

Industries Funds, Machinery and Equipment Loan Fund and $810,000 from Koller andSon, Inc.



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John Koller and Son, Inc.



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John Koller and Son, Inc.



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Renewable Energy Grant Section 9006 andB&I Guarantee

Maine Project Name: Backyard Farms, LLC of Madison

Amount : $500,000- 9006 Grant and $500,000 B&I Guarantee to assist in theacquisition and installation of the parts and equipment for a biomass boiler, willgenerate 6 MW.

Description of Project: provides vine ripened tomatoes year round with a 25 acregreenhouse. The biomass boiler will reduce the company dependency on propane toheat greenhouses.

Jobs Saved/created: The company expects to grow from 95 year-round employees(125 at peak periods) to 225 year-round employees (320 at peak periods).

Leveraged funds : 500k grant, 500k guaranteed loan with Farm Credit, and the rest wasapplicant's equity. Total cost of project $7,296,570



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Backyard Farms, LLC



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B&I And 9006 Guaranteed LoanNew York

Project Name: Western New York Energy (WNYE)

Amoun t: $15 million Business and Industry Loan Guarantee $10 Million Renewable Energy Loan Guarantee

Description of project: Construct an $87.4 million dry mill ethanol plant on 144 acres inthe Town of Shelby. The plant will produce 50 million gallons plus of fuel-grade ethanolannually. The carbon dioxide produced when making ethanol will be captured and sold tosoft drink manufacturers. This will add another 25 to 35 jobs at the site.

The plant will use 20 million bushels of corn annually, creating a new market for New York farmers.

The operation will also provide a plentiful source of distillers grain for the 300,000 dairycattle located within 80 miles of the site.



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Western New York Energy (WNYE)continued:

A high-protein cattle feed is another by- product of ethanol production, the distillers grain will bemarketed to local farmers.

The ethanol plant has created a mini-economic boom in the area.

Jobs Saved/Created Construction of project created more than 850 jobs initially and plant willemploy 50 full-time workers when it goes into full production.

Leveraged funds: $ 7,000,000 Grant assistance from the State of New York.

$21,000,000 Term Loan from Farm Credit Western New York.

$8,000,000 Revolver Loan from Farm Credit Western New York for working capital.



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Western New York Energy



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Renewable Energy & Energy Efficient Grant

Iowa Project Name : R J Farms Amount $19,561 Renewable Energy & Energy Efficiency Grant

Description of project : Company needed to reduce corn production costs with an electronically monitoredgrain dryer.

Funds used to purchase grain dryer System was installed and operational by the 2006 corn harvest.

Results: Dollar savings per year $5,400 electric and LP usage

BTU savings per year 381,846,216



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RJ FarmsContinued



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Farm Bill Energy TitleSection 9008

Purpose:Support of research, development and demonstration on biobased products, biofuels, and biopower.

Eligible Recipients:Institutions of Higher Learning; National Laboratory; Federal Research Agency; State Research Agency;

Private Sector Entities and Nonprofit Organizations or a consortium of two or more of entities described above.



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Section 9008 Best Practices

Wisconsin Virent Energy Systems, Inc $2 Million award in FY 2006

$.685 Million matching funds Platform for co-production of propylene glycol and

biodiesel



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Section 9008 Best Practices

North Carolina North Carolina State University $435,997 award in FY 2006

$109,899 matching funds Analysis and strategic guidance for solutions for

increased commercialization of biofuels



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Value-Added Agricultural ProductsMarket Development (VAPG) Grants

Purpose: To assist with marketing of value -added products.

Eligible Recipients: Independent producers,agricultural produce group, farmer or rancher cooperative, or majority controlled producer-

based business venture.



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VAPG Best Practices

Kentucky

$500,000 Grant for initial working capital/Start-up Ethanol funding

20 mgy capacity

30 jobs created

Owned by 180 farmers



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VAPG Best Practices

Oregon $300,000 Grant for working capital to operate a new

Biodiesel facility.

Biodiesel fuel generated from canola seed. Cooperative consist of 2,400 owners/producers. Fuel will be sold to Portland fleet of vehicles.



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Rural Economic Development

Loans & Grants (REDLG)

Eligibility: RUS electric and telephone borrowers (not delinquent on any Federal debt or in bankruptcy proceeding) and certain other electric utilities.

Purposes: Revolving loan programs, community developmentechnical assistance, construction, capital improvements, purchase of machinery and equipment, and working capital.



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Rural Economic Development Grant(REDG) Minnesota

Albert Lea Economic Development Agency $400,000 from REDG Projects 500 new jobs Will produce 30 million gallons of fuel annually Soy-Mor, a biodiesel plant Exol corn ethanol plant 100 percent farmer-owned. Exol shares its site with Soy-Mor to save on infrastructure costs



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Rural Economic Development Loan Iowa

Western Iowa Energy, LLC $740,000 loan to construct a Biodiesel facility 24 jobs created Produce 30 million gallons a year



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Business and Industry (B&I)Guaranteed Loan Program

Eligibility: Individuals; corporations, cooperatives, partnerships, and other legal entities, public and private,organized and operated on a profit or nonprofit basis; and

Federally recognized Indian tribal groups.

Purposes: Loan proceeds may be used for working capital,machinery and equipment, buildings and real estate, and

certain types of debt refinancing. The primary purpose is tocreate and maintain employment and improve the economicclimate in rural communities.



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B&I Best PracticesWisconsin

$10 Million for guarantee. Refinancing/expansion of Wisconsin ethanol plant to

30 mgy

Saved 35 jobs. Created 4 jobs. Increased market price of local corn 20 cents/bushel.



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B&I Best Practices Michigan

Bio-Diesel LLC $3 million loan guarantee Alternative use for soybean oil and chicken fat

22 Jobs Created Operational in December 2006



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Definition of Rural AreaB&I, RBEG, RBOG, REDLG, Section 9006

Any area other than a city or town that has a population of greater than 50,000 inhabitants and the urbanized area contiguous and adjacent to such city or town.



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Rural Development ProgramsRenewable Energy / Energy Efficiency

Activity FY 2001 2007

Number and Dollar Amounts Awarded:Business and Industry Guaranteed Loans 26 $212,347,493Rural Business Enterprise Grants 35 1,823,178 Rural Business Opportunity Grants 10 577,841Rural Economic Development Loans

and Grants 9 4,580,000 Value-Added Producer Grants 181 28,162,860 Section 9006 Renewable Energy Grants 1,115 95,123,871Section 9006 Renewable Energy Loans 9 70,820,000 9006 Renewable Energy Loan/Grant Combos 144 20,709,855(Lo

144 11,967,985(GrantsElectric Program Loans 16 148,035,544 High Energy Cost Grants 19 22,108,472 9008 Research & Development Grants 55 58,140,531

Totals 1,763 $674,397,630 Committed to the future of rural communities


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Program Delivery

National Office State Office Area / Local Offices



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How to Learn More About Business Programs

State Office, or www.rurdev.usda.gov/rbs/busp/bpdir.htm



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Documents

Committed to the Future of Rural Communities