Incentives for Agricultural Energy
Gerry Palano, Renewable Energy Coordinator, MDAR
EBC Renewable Energy Seminar
Sustainable Regional Agriculture through
Renewable Energy
Springfield, MA
March 19, 2009
Funding Terminology
• Grant – means you are competing with others
and funds will be disbursed based on the best
proposals, i.e., those best meeting the program
requirements and intent. Generally periodic
offerings.
• Rebates – generally means first- come, firstserved till the funds run out. Need to meet the
program requirements to be approved.
Generally rolling, on-going offerings.
Generic Guide for Programs
• Local – contact your town office – property tax breaks
• State – administer energy programs
– Utilities – most utilities offer some form of energy efficiency
program – all local distribution companies (LDCs) do, not all
Municipal Power & Light companies do.
– Renewable Energy Trust (RET) for renewable technologies
• Federal – USDA probably most prevalent but NRCS has
also provided incentives
• Others – funded agencies or groups in your state, e.g.,
Berkshire-Pioneer Resources Conservation
Development Areas (BPRC&D)MA Farm Energy
Program
3/16/2016
3
Invaluable
Internet Resource
• http://www.dsireusa.org/
• Database of State Incentives for
Renewables & Efficiency
• DSIRE is a comprehensive source of
information on state, local, utility, and
federal incentives that promote renewable
energy and energy efficiency.
Massachusetts
– State Grant Program
– MTC - Clean Energy Pre-Development Financing
Initiative (Grants)
– MTC - Large Onsite Renewables Initiative (LORI) Grants
– MTC - Matching Grants for Communities
– State Loan Program
– MTC - Clean Energy Pre-Development Financing
Initiative (Loans)
– State Rebate Program
– MTC - Commonwealth Solar Rebates
– MTC - Small Renewables Initiative (SRI) Rebates
Massachusetts
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Utility Rebate Program
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Bay State Gas - Commercial Energy Efficiency Program
Bay State Gas - Residential Energy Efficiency Programs
Belmont Municipal Light Department - Residential Energy Efficiency Rebate Program
Berkshire Gas - Residential Energy Efficiency Rebate Program
Chicopee Electric Light - Residential Energy Efficiency Rebate Program
Chicopee Electric Light - Solar Rebate Program
Concord Municipal Light Plant - Energy-Efficient Lighting Rebate Program
Concord Municipal Light Plant - Residential Energy Efficiency Rebate Program
Mansfield Municipal Electric Department - Residential Energy Efficiency Rebate Program
Marblehead Light Department - Residential Energy Efficiency Rebate Program
National Grid - Commercial (Electric) Energy Efficiency Incentive Programs
National Grid – Commercial (Gas) Energy Efficiency Programs
National Grid – Residential (Electric) Energy Efficiency Incentive Programs
National Grid – Residential (Gas) Energy Efficiency Programs
National Grid - Small/Mid-Sized Business Energy Efficiency Program
National Grid - Solar Thermal Rebate Program
New England Gas Company - Energy Saving Rebate Programs
NSTAR - Commercial Energy Efficiency Rebate Programs
NSTAR - Construction Energy Solutions Program
NSTAR - Residential Energy Efficiency Programs
Reading Municipal Light Department - Business Lighting Rebate Program
Reading Municipal Light Department - ENERGY STAR Appliance Rebate Program
Shrewsbury Electric - Residential Energy Efficiency Rebate Program
Unitil - Commercial and Industrial Energy Efficiency Programs
Unitil - Residential Energy Efficiency Programs
Wakefield Municipal Gas & Light Department
Generic Utility Programs
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Provide electric & natural gas related energy audits at no cost; may
provide more in-depth technical assessment @ cost share with upper
limit
Focus on energy efficiency although NGRID/Keyspan will assist in
solar thermal
Energy efficiency measures could include:
Electric Utilities:
– Improved ventilation fan efficiencies
– Refrigeration efficiency improvements
– Motor replacements
– Variable Speed Drives
– Lighting
– Automatic Temperature Controls
Natural Gas Utilities:
– Higher efficiency boilers & furnaces (condensing if applicable)
– Distribution piping insulation
– Other thermal envelope improvements such as thermal blankets
– Automatic Temperature Controls
– Combined heat & power
MA Renewable Energy Trust (RET)
• Commonwealth Solar – provides rebates for
photovoltaic projects up to 500 kW in size
• Large On-site Renewable Incentives (LORI) –
being redesigned; offers feasibility studies and
design/construction grants.
• Small Renewables Incentives (SRI) – rebate
program for small hydro and wind, < 10 kW
projects.
MDAR
• Massachusetts Department of Agricultural Resources
(MDAR) – AEEP, AICG and FVEP are all annual
competitive cycles, not energy programs per se but have
funded energy related projects and/or programs within
the context of the program’s charter.
Farm Energy Discount Program – administered by
MDAR, discount from respective utility
AEEP – Agricultural Environmental Enhancement
Program
AICG – Agricultural Innovation Center
FVEP – Farm Viability Enhancement Program
Farm Energy Discount
• As a result of the utility restructuring, all
eligible farm ratepayers will enjoy a
mandated ten percent reduction on their
energy bills for electricity and natural gas
from their local distribution company
(LDC).
MDAR
• AEEP – Agricultural Environmental
Enhancement Program – competitive, dedicated
to mitigation of air & water pollution
• Grants typically range from $5,000 - $25,000,
will pay up to 95% of materials, no labor costs
• Will consider biomass thermal projects
• 2007-08 Awardees included Volante Farms
(New Greenhouse) and Mann Farms
(Cranberry) for Energy Efficiency Projects
• 2007-08 Awardees included Cider Hill and
Caretaker Farms for Photovoltaics (PV) Projects
MDAR
• FVEP – Farm Viability Enhancement Program,
competitive, dedicated to assisting farms create
and implement business plans to diversify and
sustain agriculture
• Two offerings – 5 year commitment with $25,000
funding; 10 year commitment with $50,000
funding
• Some past recipients had energy related
equipment identified and purchased as part of
the business plan
MDAR
• AICG – Agricultural Innovation Center Grant, annual
competitive, uses grants to build partnerships with
MDAR and industry support & trade organizations to
develop agricultural enterprises that are economically
viable and environmentally sustainable.
• Funding has varied from $5,000 to over $1,000,000
• 2007-08 awardees included one devoted to developing
and implementing a business model for producers
(growers) and end users (nurseries/greenhouses) using
kernel corn as a solid fuel
Federal
• USDA Section 9007: Renewables &
Energy Efficiency Grants & Loans –ValueAdded Producer Grants
• DOE/USDA/EPA – various grants
throughout the year, including R&D,
Demonstration Projects and Conservation
Innovation Grants
USDA RD 9007 Program
Renewable Energy & Energy Efficiency
• Eligibility is key – need to be in USDA defined rural area & must be
a USDA defined agriculture or small business
• Provides grants & guaranteed loans
• Provides funding for technical assistance audits – first time
• Grants up to 25% of total project cost
– Renewables from $2,500 - $ 500,000
– Energy Efficiency from $1,500 - $250,000
– Renewables – biomass, anaerobic digesters, geothermal,
hydrogen, small and large wind & solar
– Energy Efficiency Improvements - verified by an energy audit or
assessment
• Projects under $200,000 use simplified application process
• Loan guarantees up to 75% of total project costs
– Range from $5,000 - $10,000,000 per project
USDA’s Value-Added Producer
Grants
• Eligibility Requirements:
– Applicant – independent producer, farmer or rancher
cooperative, agricultural producer group, majority-controlled
producer-based business venture
– Product – change in physical state, differential production or
marketing, product segregation, farm-based renewable energy
– Purpose – planning & working capital
– Matching - % matching funds required
• Planning Activities (e.g. feasibility study, business plan,
marketing plan) $100,000 maximum
• Working Capital (e.g. labor, inventory, advertising)
$300,000 maximum
• Matching Funds @ least 50%
• March 31, 2008 deadline
Others
• State RC&Ds - New MA Farm Energy
Program (MFEP)
Services Available through the
Massachusetts Farm Energy Program
Informational Meeting for USDA Rural Energy for America
Program (REAP) - E. Wareham, MA Feb. 4, 2009
The MFEP
• 2008-2009 pilot project, funded by NRCS & MDAR, to
establish a statewide program
• streamline technical & financial assistance
• provide energy audits and/or renewable energy
assessments
• provide technical assistance & financial incentives for
implementation of audit recommendations
• develop best management practices for farm energy
systems
MFEP Services
• Technical assistance for:
Massachusetts Farm Discount Program (MDAR)
Public utility energy efficiency programs
Massachusetts Technology Collaborative programs
• Technical Support & Grant Writing for:
USDA-RD 9006/9007 grants & loan guarantees
• Financial assistance for:
MFEP Audits & Incentives
MFEP Technical Assistance for USDA-Rural
Energy for America (REAP)
Program materials for Section 9007 of the 2008 Farm Bill are not yet available,
however, we assume they will be similar to the 9006 program (formerly called the
Renewable Energy Systems and Energy Efficiency Improvements Program)
• Berkshire-Pioneer RC&D and Mass Woodlands Institute (MWI) are
partners in this grant support initiative for 2009
• Primary clients are projects <$200,000 but will assist some
>$200,000
• Must meet USDA-Rural Development eligibility
• Must be farming-related business, including forest products
• Apply on-line through BPRC&D webpage
• BPRC&D screens applicants & provides on-going technical support
for environmental compliance, energy audit, technical worksheets,
scoring, …
MFEP Audits & Incentives
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“Targeted” audits for other fuels to augment existing public utility
programs
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Full “targeted” audits to farms with municipal utilities
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“Targeted” renewable energy assessments or consultations
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BPRC&D energy contractors to provide audits at negotiated rates
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Incentives to implement at least 50% of MFEP and public utility
audit recommendations &/or renewable energy recommendations
1. MFEP financial incentives based on energy savings
2. USDA-REAP technical assistance
3. Referrals to other programs to “leverage” additional funds
Requirements for MFEP Audits & Incentives
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Be an agricultural producer - a person or corporation principally &
substantially engaged in ag. for commercial purpose. (MA-DAR)
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Complete the on-line application & possible follow-up interview
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Meet the NRCS Environmental Quality Improvement Program
(EQIP) eligibility rules
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Provide energy use records for up to the last 3 years to BPRC&D
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Provide reports to BPRC&D from past energy audits & renewable
energy assessments and other info. important for "targeting" audit
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Provide 25% cost-share to BPRC&D prior to receiving services
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Plan to implement at least 50% of the audit recommendations
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Obtain the necessary approval from the Agricultural Preservation
Restriction (APR) program, or any other land restriction program,
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Provide follow-up energy savings information after implementation
MFEP Audits & Incentives
MFEP incentives based on projected energy
savings from energy efficiency & renewable
energy systems *
$0.150 incentive per kWh electricity
$2.50 incentive per therm natural gas
$2.75 incentive per gal propane
$3.00 incentive per gal fuel oil
*subject to change as needed to meet the intent of the program
MFEP Audits & Incentives
Energy Efficiency Groups (EEG) – greater MFEP incentives to
farmers with less access to other audit & incentive programs
• EEG 1: Eligible for neither public utility electric nor gas energy
efficiency programs – municipal utility customers
• EEG 2: Eligible for either electric or gas energy efficiency programs
• EEG 3: Eligible for both electric and gas energy efficiency programs
MFEP Audits & Incentives
Energy
Efficiency
Group
Audit/assessment
cost
MFEP cost
at 75%
Farmer cost
at 25%
EEG1
EEG2
EEG3
$1000-2000
$1000
$400-700
$750-1500
$750
$300-525
$250-500
$250
$100-175
Note: Consultations can be provided in lieu of audit, likely at the EEG rate
MFEP Audits & Incentives
Renewable Energy Groups (REG) – greater MFEP incentives to
farmers with less access to other renewable energy programs
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REG 1: Eligible for neither MTC programs nor USDA-REAP
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REG 2: Eligible for USDA-REAP and/or eligible for MTC competitive grants
(No MFEP Incentives if awarded MTC grant)
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REG 3: Eligible for MTC rebates, but not eligible for USDA-REAP
(No MFEP incentives)
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REG 4: Eligible for both MTC rebates & USDA-REAP (No MFEP incentives)
MFEP Audits & Incentives
Renewable
Assessment/
Energy
Consultation cost
Group
MFEP cost
at 75%
Farmer cost
at 25%
REG1 assess
REG2 consult
$750-3750
$300-525
$250-1250
$100-175
$1000-5000
$400-700
As funding is limited for renewable projects, MFEP will pay 75% of the cost of “targeted”
assessments or consultations for applicants or projects not eligible for MTC rebates, i.e. REG 1 and
REG 2 applicants.
Estimates for renewable energy assessments can vary widely and are provided above but the actual
amount will be determined by BPRC&D prior to the assessment.
MFEP Assistance & Contacts
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Webpage
http://www.berkshirepioneerrcd.org/mfep/index.php
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Information Sheet with links
“What you can do to start saving money and prepare for the Mass Farm Energy Program – at no
cost to you!”
http://www.berkshirepioneerrcd.org/mfep/docs/what_you_can_do.pdf
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Web-based questionnaire for capturing energy use & project plans, follow-up
suggestions and referrals via phone & email
http://www.berkshirepioneerrcd.org/mfep/forms/questionnaire.php
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Technical Assistance for USDA REAP
http://www.berkshirepioneerrcd.org/mfep/forms/grant_writing_req.php
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MFEP Audits & Incentives
http://www.berkshirepioneerrcd.org/mfep/energy.php
Darlene Monds, Coordinator, USDA/NRCS
Ann Gibson, Program Assistant
darlene.monds@ma.usda.gov
agibson@berkshirepioneerrcd.org
Phone 413.256.1607
Fax
413.253.5542