Working with farmers, ranchers and rural communities to produce clean energy

November 2004 – Newsletter #7 | Archive

We’re late with this edition of the eNews Bulletin because we’ve been getting ready for the Fifth Harvesting Clean Energy Conference scheduled for January 20-21 in Great Falls, Montana. Take a look at the exciting agenda for this year’s gathering, then take advantage of the early registration rates! A great deal of exciting news has been building up over the fall. We hope you won't be overwhelmed, there’s certainly a lot to share...

Clean Energy Tax Credits Renewed, Expanded
The big news this fall has been passage of the American Jobs Creation Act of 2004, which contains tax credits for renewable electric generation and biofuels production. Generation sources qualifying for the renewable tax credit were expanded from wind and closed-loop biomass to geothermal, open-loop biomass, solar, small irrigation hydro, municipal solid waste, and refined coal. Indexed for inflation the credit is currently worth 1.8¢/kWh. This level was halved for open-loop biomass, small irrigation hydro, and municipal solid waste to .9¢/kWh. The bill requires that new electric projects come on-line by the end of next year to qualify. A 5-year tax credit term applies, except for wind and closed-loop biomass, which are eligible for a 10-year term. The early expiration date will necessitate another legislative effort next year to extend the credits.

Effective September 30, the excise tax credit for ethanol is offset through the Treasury instead of the Highway Trust Fund. Treasury will be responsible for awarding 51¢/gal for alcohol (ethanol) mixed with gasoline, 50¢/gal for biodiesel from used grease mixed with petrodiesel, and $1/gal for agri-biodiesel mixed with petrodiesel. Agri-biodiesel sources include canola, rape, safflower, flax and mustard, as well as first-use animal fats. The tax credit is applicable to the producer of fuel sold after December 31. The ethanol provisions terminate at the end of 2010, while biodiesel provisions terminate at the end of 2006. The new law was greeted with enthusiasm by the National Ethanol Vehicle Coalition, Renewable Fuels Association, and National Biodiesel Board (pdf 35kb).

Section 9006 Draft Rules Under Review, Comment Period Extended
On October 5, the USDA published its proposed rule governing the Section 9006 program and opened a 30-day public comment period, half the customary 60-day timeframe. The original comment period, which expired November 4, has now been extended until December 15. The USDA is particularly interested in learning the effect of the minimum funding level of $2,500 on potential projects, whether it would be appropriate to involve non-traditional lenders in the loan process, and how the agency can better streamline or simplify the application process. Check out the Environmental Law & Policy Center’s suggested language for how the program can be improved.

Farm Bill Energy Title Appropriations Still Pending
In September, the Senate Agriculture Committee completed their mark-up of FY05 appropriations for programs under the Farm Bill’s Energy Title, but action by the full Senate is still pending. Here’s a quick summary of current proposed allocations in millions (and the original level of funding mandated by the Farm Bill):

• Sec 6401 (Value-Added Producer Grants) – Admin $15, House $15.5, Senate $15 ($40/yr farm bill)
• Sec 9002 (Federal Procurement of Biobased Products) – Admin $2, House $2.969, Senate $2
• Sec 9004 (Biodiesel Fuel Education) – Admin $1, House $1, Senate $1 ($1/yr farm bill)
• Sec 9006 (Renewable Energy & Energy Efficiency) – Admin $10.77, House $23, Senate $20 ($23/yr farm bill)
• Sec 9008 (Biomass Research & Development) – Admin $14, House $14, Senate $14
• Sec 9010 (CCC Bioenergy Program) – Admin $100, House $100, Senate $100 ($150/yr farm bill)

DOE to Fund Renewable Energy, Energy Efficiency for Tribes
US DOE is accepting applications for two grant programs for tribes pursuing renewable energy and energy efficiency projects. Grants of up to $150,000 are available for strategic planning, options analysis or resource planning, organizational development, and human capacity building. Grants of up to $250,000 are available for feasibility studies, hardware demonstrations, and pre-development activities for renewable energy projects. Application deadlines are January 20 and February 4, respectively.

Grants Available for Biobased Product & Bioenergy Production Research
USDA’s Cooperative State Research, Education and Extension Service is seeking proposals for up to $500,000 to research use of agricultural biomaterials, including forestry derived biomass, for industrial and consumer products, including fuels and related by-products that reduce dependence on petroleum-based feedstocks, reduce emissions and improve biodegradability. Some $5.4 million has been allocated for this cycle. Applications are due January 14.

NRCS Creates New Tech Centers
USDA’s Natural Resources Conservation Service will establish three new national technology support centers and three remote sensing laboratories as part of an agency reorganization. The facilities will focus on the needs of small and limited resource farmers, lead technological advances, and have national responsibilities in three specialized areas. The Western center, to be located in Portland, is responsible for bioenergy, water quality and quantity, and air quality and atmospheric change.

Northwest Biodiesel Production Anticipated
Oilseed growers, crushing facilities, and processing entrepreneurs throughout the Northwest are jockeying for position as regional biodiesel production appears imminent. On Washington’s eastside, ATP/Columbia Oilseeds hope to have a crusher on-line in Quincy by Christmas, and a second in Creston next summer. Columbia County recently received $75,000 in state and federal grants to fund a business plan from BBI based on mustard or canola feedstocks.

Meanwhile, Pacific Bio LLC, representing the six major agricultural coops in Spokane and Whitman counties with some 2500 member farmers, is pursuing funds to own and operate their own crushing facility. With the assistance of the Spokane County Conservation District, project leaders are also in negotiations with processing plant advocates in Seattle and Spokane County.

The westside processor closest to handling the much anticipated flow of eastside oil, Seattle Biodiesel, is busy completing permits and retooling their downtown facility to increase capacity. Oregon BioFuels in Portland also expects to begin production by the end of the year, though they plan to rely initially on waste grease as their feedstock. With passage of the new federal production tax credits, look for more processors to launch production facilities in the months ahead.

King County Now Largest Biodiesel User in Washington
King County announced on October 26 that it will begin using B5 in its transit and public works fleets. The press conference received extensive coverage and provided biodiesel advocates from throughout the state with a rare chance to meet in person. The county’s website has a video (realplayer) if you’d like to see some of the luminaries in action.

King County Metro Transit currently consumes 10 mgy, making it the single largest on-road diesel fuel consumer in the state. The new program will require 450,000 to 500,000 gallons of B100 a year, increasing statewide demand by at least 30%. Seattle City Light will provide up to $200,000 to cover the cost of Metro’s 2005 purchases through its Greenhouse Gas Mitigation program. King County Solid Waste is committed to using 50,000 gallons of B100 in 2005.

For their leadership in investing in advanced technologies and emissions reduction strategies, King County was one of six organizations to be recognized (pdf 33kb) recently by the Environmental & Energy Study Institute as a National Clean Bus Leader for 2004.

Portland Expands Use of B20
In the summer of 2002, the City of Portland and surrounding Multnomah County agreed to a Sustainable Procurement Strategy (pdf 186kb) that called for using B20 in some of their diesel vehicles. As noted in the program’s 2004 report (pdf 263kb), the city is now using B20 in all their diesel-powered vehicles with good results.

Idaho Biodiesel Forum
Presentations from the University of Idaho’s Biodiesel Utilization Workshop for State Departments of Transportation, held September 9-10 in Boise, are now available.

Sen. Craig Champions Cellulosic Ethanol (pdf 38kb)
Idaho Senator Larry Craig recently espoused the virtues of ethanol production in southeast Idaho, the possible home of the first commercial-scale (50-60 mgy) cellulosic ethanol plant in the country. The Canadian firm Iogen might break ground as soon as next year, with Shell handling fuel sales.

Portland Fuel Oxygenation Requirement May End
The Oregon Department of Environmental Quality wants to drop a requirement that Portland-area gas dealers sell oxygenated fuel – typically with a 10% ethanol mix – during the winter months. The state’s Environmental Quality Commission and federal EPA must approve the change. A public comment period ended October 25, and the OEQC is scheduled to issue its decision on December 9. With in-state production expected next year, the Sustainable Industries Journal explores the consequences of reduced demand on the fledging ethanol industry.

Fueling a Rural Revival: Co-ops & Biofuels Special Section (pdf 1.3mb)
The latest edition of USDA’s Rural Cooperatives magazine details a new cooperative arrangement for an ethanol plant in the Midwest and how they were financed. As one participant in the project points out, “The goal needs to be building true biorefineries where the renewable feedstock is fractionated into various components. Each component should then be used for its highest value: intermediate chemicals, fibers, nutrients, fuels, etc. This is the way in which petroleum refineries have maximized their profits.”

Assessing Biodiesel in Standby Generators on the Olympic Peninsula (pdf 238kb)
A new report from BPA assesses the merits of using biodiesel in standby generators for certain end-use customers. The impetus is to help meet electric transmission needs on the Olympic Peninsula with distributed energy resources. BPA can now proceed with trials of B20 and B100 as part of their Non-Wires Solution effort.

New Study Confirms Viability of Idaho Dairy Digesters (pdf 1.5mb)
A study commissioned by the USDA, BPA and Idaho Dairymen’s Association found roughly 2 MW of power could be produced by state dairies, and identified a business model that would make the process economically viable. The Idaho Dairy Waste Conversion to Electricity Pilot Project Feasibility Study investigated digester technologies, inventoried Magic Valley dairies for possible pilot project sites, analyzed project economics, and investigated associated permitting and power sale requirements. The resulting implementation plan calls for a statewide program and two pilot projects to test concepts. Several dairy sites were identified as candidates.

First Idaho Digester Nears Completion
Dairy operators throughout Idaho’s Magic Valley are eagerly awaiting completion of Intrepid Technology & Resources’ digester at Whitesides Dairy in Rupert. The facility, which recently received a $28,172 Value-Added Producer Grant from the USDA to help with construction, will initially produce 10 million feet of methane per year from 4,000 cows for the local heating fuel market. If the economic and environmental benefits pan out, Intrepid says their facility could grow to handle as many as 100,000 head within five years. Visit Intrepid’s website to see construction photos.

Idaho Dairies Receive EQIP Funds for Digesters
Two Idaho dairies, one south of Nampa and the second in Jerome, have each won $450,000 grants to help with construction of anaerobic digesters. The funds were awarded through the NRCS’s Environmental Quality Incentives Program with funds provided under the 2002 Farm Bill. State officials and dairy advocates are hopeful that, in addition to producing methane for electrical generation, the digesters will help reduce dairy odors.

Threemile Canyon Farms to Study Thermophilic Digestion
Threemile Canyon Farms in Boardman, Oregon will use a $1 million Conservation Innovation Grant from NRCS to test and evaluate an innovative anaerobic digester system that will produce renewable energy, return concentrated nutrients back to the farm, and substantially reduce the environmental impacts of concentrated animal agriculture operations. They expect to eventually host as many as 25,000 cows capable of producing enough methane to generate up to 4 MW of power.

WSU Receives Funding for Digester Co-product Research
Researchers at WSU will use a $683,000 Conservation Innovation Grant from NRCS to research two co-products of anaerobic digestion, a high-fiber peat moss substitute for soil conditioning and a slow-release fertilizer. The grant complements current work taking place under the Climate Friendly Farming initiative led by WSU’s Center for Sustaining Agriculture and Natural Resources. Staff recently made presentations on their bioproducts research (pdf 1.2mb) and Climate Friendly Farming (pdf 415kb) at the Northwest Renewable Energy Festival in Walla Walla.

Yakima County Explores Biomass Opportunities (pdf 179kb)
RW Beck prepared a report for Yakima County’s Department of Solid Waste last fall that explored biomass opportunities and barriers. Funded by the US Forest Service, the report contains information on fuels and technologies, and profiles selected projects. One local project not discussed was Bosma Dairy’s digester, which recently received a $85,000 Value-Added Producer Grant from the USDA to evaluate the feasibility of marketing four co-products: liquid natural gas, carbon dioxide, a fertilizer additive, and a peat moss substitute.

King County Seeks Digester Operator (pdf 455kb)
King County has released an RFQ for a firm to design, build, own and operate one or more digesters in the Enumclaw Plateau region. Responses are due November 18. A feasibility study and follow-up analysis of markets for residual solids were completed in 2003. Respondents must collect manure from participating dairy farms. Thus far, 18 of the 30 dairies, collectively owning over 6,000 of a total 9,000 milking cows, have signed a letter of interest.

Fuels for Schools Program Expands
Commissioning and monitoring reports are now available on the use of wood waste to heat schools in Darby MT. The pioneering school district installed a new heating system last November and realized some $41,000 in savings during the school year. Local wood chips are being used for schools in Darby and Victor, which recently installed their own boiler. A similar project is in the works for the community of Philipsburg. The three programs received substantial assistance through the US Forest Service’s Fuels for Schools grant program. Nearly 20 additional schools in the state have completed feasibility studies and are awaiting funding.

In Idaho, the state Department of Lands and Panhandle Lakes RC&D Council have partnered with the Forest Service to advance the Fuels for Schools program. Schools in Kellogg and Council are actively working on planning and design, and three other communities have completed feasibility studies. Council School District voters will be asked to support a November 16 bond issue to help cover costs. Fuels for Schools proposals are also budding in the Oregon towns of Seneca, Sisters, and possibly the Roseburg area.

Biomass Energy Heats Up in Warm Springs
Warm Springs Forest Products is preparing a due diligence report on expanding their biomass-to-energy capacity thanks to a $196,000 grant from the US Department of the Interior. The Central Oregon Partnership for Wildfire Risk Reduction, composed of environmentalists, industry, agency staff and others, is getting ready to sign a Declaration of Cooperation to encourage federal agencies to provide a steady supply of biomass, mainly small trees, to the Warm Springs tribe for energy and other products.

Survey Details State Clean Energy Fund Support for Biomass (pdf 274kb)
A new survey from the Clean Energy States Alliance highlights the various ways in which state clean energy funds are supporting biomass technologies and projects. These funds have over $3.5 billion to invest in renewable energy over the coming 10-15 years, and have begun to make significant investments in the biomass area. The Energy Trust of Oregon is the only Northwest program profiled.

Sun Grant Meeting Report
Notes from the third planning meeting for the Western Region Sun Grant Initiative are now available. Held in Portland in August, the meeting brought research and outreach faculty together with government and economic development representatives to refine regional priorities in bioenergy and bioproducts research and outreach, and define a competitive grants process.

Tax Credit Extension Spurs Wind Development
The relatively brief renewal of the federal Production Tax Credit will most likely benefit projects already under development. PPM Energy has announced specific development plans for their 75 MW Klondike II Wind Farm in Sherman County in north-central Oregon. And LeRoy Jarolimek’s 10 MW wind farm near Burley ID is looking to complete construction prior to the deadline.

Elsewhere, listen as Portland General Electric and PacifiCorp tell the Oregon Public Utility Commission (mp3) on October 19 they are pursuing wind power deals that could meet the deadline. PGE’s Integrated Resource Plan (pdf 562kb) calls for about 200 MW of wind capacity, and the utility is in active negotiations with several developers. PacifiCorp is currently reviewing 15 proposals for up to 1,100 MW of new renewables capacity by 2010 under their Integrated Resource Plan, half of which could launch in 2005.

Another planned Northwest venture, Zilkha Renewable Energy’s 200 MW Wild Horse Wind Power Project east of Ellensburg, also is planning a 2005 debut. In September, Puget Sound Energy announced plans to spend up to $300 million to purchase the project, making the Bellevue-based utility the first in the state to own a wind farm. A definitive agreement is expected by year’s end. The purchase plan has resulted in the delay of formal hearings before the Washington Energy Facility Site Evaluation Council for Zilkha’s nearby, and more controversial Kittitas Valley Wind Power Project. According to project development manager Chris Taylor, Zilkha wants to concentrate on “the expeditious permitting of Wild Horse, given that we’ve got a customer that is eager to see this project come on-line and needs power in the near term.”

Farm Bill Section 9006 Grants Support Wind Projects
All four successful Northwest applicants for recent Farm Bill Section 9006 funding are pursuing wind power projects.

Luna Point Community Wind Project received a $307,000 grant to cover roughly a quarter of the cost of their 300 kW venture east of Goldendale. If the project succeeds in raising additional revenue, it will be Washington’s first community-based wind facility, and the first in the nation to directly benefit low-income citizens with energy bill assistance. Partners are Last Mile Electric Cooperative, Klickitat PUD, Northwest SEED, A World Institute for a Sustainable Humanity, Klickitat-Skamania Development Council and Our Wind Co-op.

Columbia Energy Partners will receive $500,000 to assist with construction of the Mar-Lu Wind Farm, the first of five projects being developed by Columbia in Oregon and Washington, and the first of two planned for the 8,500-acre site near Arlington OR. Total installed capacity for the first phase is 5 MW; phase two’s projected capacity is 104 MW. The power will serve local loads through interconnection to local utilities. Lead partner Chris Crowley has also leased property in Zillah near Yakima for a 24 Mw project.

West Slope Wind One, led by Idaho wind developer LeRoy Jarolimek, received $500,000 to install a 1.65 MW turbine, the first of six planned near Burley. The grant follows up on a $30,000 USDA grant they received last year to study the site’s wind potential.

Schwendiman Farm received $400,000 towards installation of the second of two 1.5 MW turbines northeast of Idaho Falls. The Schwendiman’s received a $500,000 grant last year to help with the first turbine. The power will be sold to Utah Power & Light, which serves about 56,000 customers in eastern Idaho.

IDAHO PROJECTS

Fossil Gulch Wind Park Nears Approval
In September, the Twin Falls County Planning and Zoning Commission approved a conditional use permit for Helena-based Exergy Development Group to develop the proposed Fossil Gulch Wind Park northwest of Hagerman. Pending approval by the Idaho Public Utilities Commission of a 20-year purchase agreement with Idaho Power, the 10.5 MW project plans to break ground this month.

BLM Assessment Continues for Cotterel Mountain Project
A draft Environmental Impact Statement is expected during the spring of 2005 on Windland’s proposal to lease 4,600 acres from the BLM on Cotterel Mountain, southeast of Albion. The Boise-based company says the EIS will examine siting criteria, avian issues, and socioeconomic impacts of the proposed 130-turbine, 200 MW wind power plant.

Turbines Explored for Mountain Home Air Force Base
Idaho Department of Water Resources Energy Division will use a $45,000 FEMA grant to investigate the potential of adding wind turbines to the Grasmere Radar Site, a part of Mountain Home Air Force Base. The remote site, about 60 miles south of the base itself, is powered by an 80kW solar array with batteries and diesel generators, and is used to train pilots by facilitating practice-bombing runs on simulated targets. The goal of the project is to eliminate fossil fuel use at the site.

Cooperative, Small-Scale Wind Farms Explored in Mini-Cassia
Community leaders from throughout Idaho recently toured successful wind projects in Minnesota to learn more about the potential for community-owned wind power in the Mini-Cassia region. “I would much rather see, in the future, co-ops and individuals have local ownership,” commented Cassia County Commissioner Clay Handy. “Wind power’s the only thing I’ve seen come along where an individual can own a piece of the pie, not just stock.”

MONTANA PROJECTS

Montana Issues First Lease for Wind Farm on Public Land
The first-ever lease of state land for a wind farm was signed September 20 for a 640-acre section south of Judith Gap. The state could see lease income of $50-$75,000/year, substantially more than the current $800 in annual grazing fees. WindPark Solutions Arcadia could become the first major wind-power project in Montana, but it has yet to sign a contract to sell the power. WindPark is bidding to supply all or part of the 150 MW of wind power NorthWestern Energy is seeking for its 300,000 Montana customers over the next 10-20 years.

Montanans Learn Specifics of Small Wind Interconnection
Nearly 100 people attended a crash course on the issues and procedures involved in becoming a power producer at a recent seminar co-sponsored by Hill County Electric Cooperative and Montana Electric Cooperatives’ Association. “We get a lot of calls from people who are thinking of installing small turbines to generate power for their own use, and maybe sell the excess to us,” explained HCEC Operations Manager Rollie Miller. “People from all over the state showed up.”

Pilot Programs Point to Wind Potential for Blackfeet (pdf 565kb)
Two wind projects on the Blackfeet Reservation are profiled in the summer edition of the Native American Wind Interest Group Newsletter. A 100 kW demonstration turbine at Blackfeet Community College, and four 10 kW turbines that provide supplemental power to the Browning Wastewater Treatment Facility, have helped scientists, economists, and government officials evaluate local wind resources over the past decade. It’s estimated the reservation has enough wind power potential to service more than 1 million homes, though the area is challenged by its remoteness and lack of transmission lines.

WASHINGTON PROJECTS

Our Wind Co-op Dedicates New Turbine in Goldendale
Goldendale is now host to two of Washington’s three 10 kW turbines that are part of Our Wind Co-op. An October 25 dedication ceremony (pdf 22kb) brought together a wide variety business and community leaders, including Puget Sound Energy, Klickitat County PUD, NW Cooperative Development Center, NW SEED, Climate Solutions, state and federal resource agency staff, local economic development advocates, and plenty of neighbors.

Kittitas Planning Commission Rejects Desert Claim Wind Power Project
Incompatibility with existing and future land uses in the surrounding area was the primary reason for a unanimous recommendation that the Kittitas County Council not approve EnXco’s proposed Desert Claim Wind Power Project north of Ellensburg. Other factors included the county utilities ordinance, zoning code, comprehensive plan and problems with the development agreement. Proponents believe these concerns were adequately answered in the project’s environmental impact statement and during testimony by project officials. A decision by the County Council is expected later this month.

WIND RESOURCES & NEWS

• Small Wind Consumer’s Guides for Idaho (pdf 1.4mb) and Montana (pdf 1.4mb) have been released by the National Renewable Energy Lab.

• Wind Energy for Rural Economic Development (pdf 1.1mb) was recently revised by US DOE’s Office of Energy Efficiency and Renewable Energy. The brochure explores wind-energy projects and rural economic development, including case studies and additional resources.

• National Wind Farmers Network is a new membership-based exchange for landowners, communities, local elected officials, wind businesses, utilities, and others looking to connect with each other and access in-depth wind information and experts.

• Wisconsin Community Based Windpower details ways smaller investors can participate in ownership and financial returns from wind power projects. The report notes community-based projects – which might involve individual or small clusters of utility-scale turbines – have the potential to promote wind energy, democratize ownership in the wind industry, and enhance rural economic development.

• Idaho Energy Division has a new website with answers about wind power potential in the state, includes wind maps and links to expert opinions, equipment and financing. “This should help Idahoans start to access their potential to harness wind and both make and save money,” Wind Power Coordinator Gerald Fleischman said.

• Location of Wind Manufacturing (pdf 1.7mb) is a new study from the Renewable Energy Policy Project. They found some 90 companies in 25 states currently manufacturing wind turbine components, and more than 16,000 companies nationwide that have the technical potential to enter the market. Expanding US wind power capacity to 50,000 MW – a roughly eight-fold expansion – could create 150,000 manufacturing jobs. Current Northwest industries were few in the study, which only cited component manufacturers Metso Drives of Portland (gear boxes), Virtual Technologies in Post Falls (power electronics), and CC Jensen in Seattle (system balancing).

• Wind Hybrid Electricity Applications (pdf 1.2mb), published by the Iowa Wind Energy Institute, discusses technology options that mix wind with other power sources and storage devices to help deal with the intermittent nature of wind power. Hybrid technologies that work with small wind systems include biodiesel, biogas, solar and micro-hydro. Possible energy storage solutions include batteries, flywheels, pumped hydro, and compressed air. Emerging technologies include fuel cells, micro-turbines, and sterling engines.

• A Comparative Analysis of Community Wind Power Development Options in Oregon (pdf 493kb), commissioned by the Energy Trust of Oregon, explores ownership structures and financial and non-financial support available to community wind projects in the Northwest. Structures include cooperative ownership, aggregate net metering, on-site projects (interconnected on the customer side of the meter), projects owned by multiple local investors, projects owned through “flip” arrangements with tax-motivated corporate equity partners, and town-owned projects. With tradable business energy tax credits and an aggressive energy loan program, Oregon has a great potential for low-cost community-owned wind projects.

BLM Releases Draft Environmental Study for Wind Development
The federal Bureau of Land Management’s draft EIS assesses the environmental, social and economic impacts and management approaches for wind energy development on BLM-administered lands in 11 western states. The agency’s preferred option is to implement a comprehensive Wind Energy Development Program that would establish new policies and best management practices, amend land use plans to address wind energy development, and identify wind-energy exclusion areas. Comments are due December 10, with a final version expected by June 2005.

USDA Falls Short on Wind Power (pdf 3mb)
In their new report, Renewable Energy: Wind Power’s Contribution to Electric Power Generation and Impact on Farms and Rural Communities, the US Government Accountability Office asserts the USDA has not fully utilized all the Farm Bill’s provisions to promote wind power development on farms and in rural communities. The agency points out the loan and loan-guarantee components of Section 9006 – the key program for supporting wind power and other renewable energy initiatives – have yet to be implemented. These elements would increase the program level to about $200 million annually. Direct loans would be borrowed from the US Treasury. Guaranteed loans would be made by banks and other private lending institutions. The agency also notes that less than 1% of the nation’s installed wind power capacity is owned by farmers, who generally find leasing easier than owning. “However, ownership of a turbine may double or triple the farmer’s expected income over leasing,” said the GAO.

BPA Addresses Transmission Issues
Up to 800 MW of new wind-generated energy could hit the region’s electrical grid by the end of 2005. To accommodate the load, BPA must build three new substations to interconnect the five new wind farms expected in Oregon and Washington. Most of the interconnection studies are nearly complete, and environmental studies for the five Northwest projects are underway. According to Steve Enyeart, customer service engineer for BPA’s Transmission Business Line division, “Planning, environment, design and construction may be faced with some interesting challenges in the coming months if we are going to meet the schedules proposed by the developers wanting to take advantage of the tax credit.”

New BLM Policy Encourages Solar Power on Public Lands
The Bureau of Land Management has adopted a new land management policy to encourage development of solar resources on public lands. The new guidelines, which build on a 2003 report prepared by DOE and BLM, identify the top 25 BLM areas with high solar energy development potential. The policy also encourages the installation of renewable energy systems at BLM facilities.

Geopowering the West Assists State Programs
Four Northwest geothermal initiatives were recently funded by the US DOE’s Geopowering the West program. The Idaho Energy Division and Idaho Water Resources Research Institute were awarded $75,000, to be matched by $20,720 in state funds, to update Idaho’s geothermal water resources inventory, evaluate areas with a potential for geothermal power generation, and assess prospective district heating and other direct use developments. Montana’s Department of Environmental Quality will catalog information on roughly 300 sites around the state, and undertake more detailed site evaluations. The Oregon Department of Energy will finalize a geothermal working group, develop an action plan, and craft new on-line and printed resources, including an About Direct Uses of Geothermal Energy Book. The fourth project will look at project development sites in the Northwest as part of a broader electrical generation cost/benefit analysis that will explore development and production costs.

State-Level Geothermal Summit Convenes
Presentations at the third annual Geopowering the West State Working Group Summit in September are now available. Representatives from all four Northwest states were in attendance. Featured topics included a legislative and policy update, the turn-key geothermal project development process, geothermal heat pumps, and geothermal development on tribal lands.

NREL Issues New Publications
Three new documents on geothermal resources are now available from the National Renewable Energy Lab:

• Buried Treasure: The Environmental, Economic, and Employment Benefits of Geothermal Energy (pdf 2.6mb) contains current details and updated information on geothermal’s environmental, economic, and employment benefits and impacts.

• Geothermal Technologies Program: Direct Use (pdf 2.5mb) describes how direct-use systems have been effectively applied, profiles DOE’s R&D efforts, and summarizes several projects.

• Geothermal Technologies Program Strategic Plan (pdf 715kb) explores present program direction and emphasis, vision and mission, strategic goals, performance measures, and activities timeframe.

Law Firm Shares Insights into Geothermal Development
Portland-based Stoel Rives LLP has developed a Lava Law guide exploring the experience their multi-state Geothermal Team has gained over the past ten years serving the US geothermal industry, including current legal and policy issues most likely to affect the industry and development of individual geothermal projects. The publication will be updated annually. For more information, email Cathie Baker or call (503) 294-9661.

Idaho Studies Economic Impacts of Geothermal Development (pdf 1.6mb)
Development and economic impacts of four proposed geothermal projects are explored in this report. The first proposal is to heat a community recreation center and swimming pool in Cascade (Valley County). The second is construction of a 10 MW power plant in Raft River (Cassia County). This project recently received press attention as the proponents prepare to begin construction. The third is construction of an onion drying facility near Weiser (Washington County). The final project at Lava Springs Hot Springs (Bannock County) involves retrofitting a community center’s space heating.

Oregon Renewable Energy Plan Nears Completion
As the comment period on second draft of Oregon’s Renewable Energy Action Plan (pdf 369kb) draws to a close, a partnership of the Harvesting Clean Energy program, Oregon Farm Bureau, and the state departments of agriculture and energy is organizing renewable energy seminars for the annual meetings of several organizations. Presentations to the Association of Oregon Counties, Oregon Wheat Growers League, Oregon Seed Growers League and Oregon Farm Bureau will take place over the coming weeks. Nearly a year in the making, the state REAP report outlines actions state agencies can take to promote renewable energy production and identifies policies, funding sources, tax incentives and market potential.

Fifth Northwest Power and Conservation Plan Released
On September 22, the Northwest Power and Conservation Council released its draft blueprint for meeting regional electricity needs over the next 20 years. The Council consists of two governor-appointed representatives for each Northwest state. Their job is to balance energy and environmental demands in the Columbia River basin. The draft issues a challenge to the region’s utilities: Get all the cost-effective energy efficiency available, and develop thousands of megawatts of consumer-protecting renewable energy over the next two decades. Public hearings are ongoing throughout the Northwest. Written comments will be accepted through November 19. Visit the Northwest Energy Coalition for their spin on the proposal.

Priestley: National Energy Legislation Should Boost Renewable Fuels
In an August Capital Press guest commentary, Idaho Farm Bureau president Frank Priestley voiced his support for Renewable Fuel Standards and urged Congress to, “get behind meaningful energy legislation that encourages development of alternative resources like wind, ethanol, geothermal, biodiesel and methane and biomass digesters. These new technologies would not only create jobs and commerce in rural America, they’ll reduce energy costs for American families.”

Dailey: Renewable Energy, New Crop for Farmers and Ranchers?
In his regular radio commentary in August, Montana Farmers Union president Brooks Dailey noted, “Wind, solar, biofuels and ethanol all are in their infancy in our state, and in some cases still remain in the planning stages. We believe that supporting the development of these emerging energy options makes sense for all Montanans whether they live in the city, in small-town Montana or on a farm or ranch.”

Smith: Renewable Energy Will Pay Dividends, On the Farm and Off
Randy Smith, Director of Rural Affairs for Northwest SEED and a long-time orchardist in Cashmere, prepared this opinion piece for the Wenatchee World. Written in response to an editorial that bemoaned the high price of renewable energy and the subsidies it receives, Smith lays out facts revealing that renewable energy is a net positive for our state and our nation, both today and in the future.

Lauer: Unintended Consequences of Utilizing Agricultural “Wastes” for Energy
David Lauer, Director of the Benton Clean Air Authority, shares his thoughts on wood waste energy systems in this edition’s Letter to the Editor. Warns Lauer, “There are a number of potential unintended effects from introducing energy production from agricultural residues into the already complex and severely perturbated biological systems of animal and crop production.” Lauer has a PhD in soil chemistry and worked in agricultural research for 23 years before beginning his current 12-year involvement in air pollution regulation.

Idaho Power Plans Bigger Role for Renewables
The favored acquisition scenario under Idaho Power’s new draft Integrated Resource Plan calls for 9% of their power needs to be supplied through non-hydro renewables by 2013 (350 MW of wind energy in 2006, 2007 and 2010, and 100 MW from geothermal sources in 2008). An RFP for 200 MW of wind power is expected this fall, followed by an RFP for the geothermal component next year. At least two major wind farms and two geothermal power projects have been publicly proposed in Idaho. The Idaho Public Utilities Commission is seeking public comment on the plan through December 3. Comment directly at the PUC’s website and fill in case number IPC-E-04-18 and your comments.

New Analysis Details National RES Benefits for Oregon (pdf 215kb)
On September 8, Northwest SEED and the Union of Concerned Scientist teamed up with farmers, business owners, and citizens from around Oregon to release a new report about how renewable energy will create jobs and boost the economy of the state. The study shows that a national Renewable Electricity Standard of 20% by 2020 would produce more than 6,700 jobs and save Oregon’s consumers $620 million.

Cultivating a New Rural Economy
The Environmental & Energy Study Institute’s October Bioenergy-Climate Protection-Oil Reduction Newsletter includes a wealth of legislative news and resources. Jim Kleinschmit of the Institute for Agriculture and Trade Policy in Minneapolis provides a feature article entitled, Cultivating a New Rural Economy: The Potential of the Bio-Based Sector to Revitalize Farming & Rural Communities.

State Renewable Energy Requirements and Goals Report
This report from the Energy Information Administration, a statistical agency of the US Department of Energy, analyzes 17 programs in 15 states, none in the Northwest, that encourage development and use of renewables through 2003. Attention is given to cost recovery, enforcement approaches, the effect of renewable portfolio standards on project development, and mandated versus voluntary efforts.

Smart Energy Development Promises Economic Rewards
Smarter, Cleaner, Stronger: Secure Jobs, Clean Environment, and Less Foreign Oil, a new report from Refueling Progress, details the economic benefits from energy policies that stimulate development of clean energy technologies on a national and state-by-state basis. The report emphasizes that American ingenuity will lead the way to energy security and a strong economy.

Journal of State Government Explores Renewable Energy
Jay Morrison of the National Rural Electric Cooperative Association authors an extensive article, Renewable Energy Policy: Promoting New State Strategies, in the summer edition of Spectrum: The Journal of State Government. Morrison finds that if states do their due diligence, they can design programs to support renewable energy without degrading the safety or reliability of electric service, or raising prices unreasonably for any class of electric consumers.

Biobased Products Legislation Summary
This searchable listing of previous and current legislation related to bioproducts is an example of the resources available through the Council of State Governments. Explore their searchable database for other clean energy incentive programs.

Farm Bill Technical Assistance Available
Kim Leval, Senior Policy Analyst with the Center for Rural Affairs, is available to help Northwest projects with ideas or questions related to federal farm policy and funding. The Center and other area partners are especially interested in working with farmers and ranchers, agricultural commodity groups and commissions unique to the Northwest (i.e. berry and horticultural commissions), boards and staff of environmental groups, state and federal agency staff including Resource Conservation & Development districts, extension staff working with direct market clientele, and others. Email Kim or call her at (541) 687-1490 to sign up for tailored outreach presentations, activities and materials.

Energy TechNet On-Line
US DOE’s Inventions & Innovation Program recently launched Energy TechNet, a comprehensive resource for entrepreneurs engaged in developing and commercializing innovative energy efficient and renewable technologies. The site provides information and instruction on idea development, market assessment, intellectual property protection, funding, and a complete collection of state and federal funding and business assistance resources. Energy TechNet is a product of New Horizon Technologies, a subsidiary of the National Center for Appropriate Technology in Butte.

Montana Issues Energy Guides
The legislative Environmental Quality Council offers two useful reports on Montana’s energy future. The first is Hydrogen, Wind, Biodiesel, and Ethanol: Alternative Energy Sources to Fuel Montana’s Future? The second, Understanding Energy in Montana, explores transmission and fossil fuels.

IREC Updates Grid Interconnection Guide (pdf 1.4mb)
The Interstate Renewable Energy Council has released the latest edition of its interconnection guide, Connecting to the Grid: A Guide to Distributed Generation Interconnection Issues. This fourth edition will assist those looking to interconnect systems ranging from residential PV to 2 MW distributed generation systems. A major addition is IREC Model Distributed Generation Interconnection Procedures, which includes the latest model interconnection applications and agreements.

Webcast Series Explores Renewables in Energy Supply Portfolios
Through next April, the first Monday of every month offers a free webcast geared towards small and medium-sized public power utilities looking to expand the role of renewable resources in their energy supply portfolio. The series will draw on strategies other utilities have used to increase their percentage of renewable energy and provides a step-by-step process for considering renewable resources, especially wind and geothermal. To register, email Debbie Rock with the Western Area Power Administration or call (720) 962-7271. Attendance is limited to the first 40 participants.

Agriculture as a Producer and Consumer of Energy
Materials from the Agriculture as a Producer and Consumer of Energy conference are now available. The gathering was hosted by the Farm Foundation and USDA’s Office of Energy Policy and New Uses this past June.

REPIS Features Updated Capacity Maps and Charts
The National Renewable Energy Lab’s Renewable Electric Plant Information System website recently added a collection of capacity charts and maps. These downloadable files offer a visual representation of capacity numbers for operating and planned biomass, geothermal, hydroelectric, photovoltaic, solar thermal, and wind energy technologies. This inventory represents all the known grid-connected renewable electric facilities in the US.

Overview of State Clean Energy Fund Support for R&D Projects (pdf 492kb)
The Clean Energy States Alliance, a multi-state collaboration among most of the state renewable energy funds, issued this short survey of state clean energy fund support for earlier-stage technology R&D, principally focusing on renewable energy but also touching on fuel cells.

Northwest Solar Summit #7, Nov 14-16, Seattle (pdf 2mb)
This year’s Solar Summit, scheduled for Talaris Conference Center, will examine legislation, policies, technologies, utility programs, and other strategies. Register on-line or call Jim White at (509) 661-4829. Panel topics will include Growing an Industrial Cluster Around Renewable Energy, Community Solar, Community Wind Projects, Interconnection and much more.

Oregon Wind Working Group, Nov 18, The Dalles
The next OWWG meeting, organized by the Gorge Ecology Institute in collaboration with Oregon Department of Energy, will focus on avian, wildlife and cultural issues associated with large and small wind farms. Pre-registration deadline is November 12.

Wood Utilization Solutions to Hazardous Fuels, Dec 14-15, Spokane
Washington State University and the Pacific Northwest Research Station host this wood utilization workshop at the Red Lion Hotel at the Park in Spokane. Topics range from energy production to value-added opportunities at a variety of scales. A workbook with information on local and regional utilization technologies will be distributed.

Harvesting Clean Energy V, Jan 20-21, Great Falls
Don’t miss the region’s premiere event bringing agriculture and energy together to share resources and ideas on how to profit from clean energy sources. Now in its fifth year, the conference will feature experts and farmers with direct experience in successful clean energy projects. Speakers will walk through renewable energy feasibility and economic assessments, technical and financial resources, and finding markets.