Electricity from the Wind- USDA Farm Bill Section 9006 Provides Funding for Farm and Ranch Wind Projects

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, Mont., 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.

Algers’ wind turbine wasn’t free, but his costs were greatly reduced when
he
applied for and received two grants to help defray the cost of his project.
The first grant, a National Center for Appropriate Technology (NCAT)
Universal System Benefits (USB) grant, is offered by NorthWestern Energy as
required by Montana law. 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.

Section 9006 of the 2002 Farm Bill provides funding for renewable energy
systems and energy efficiency improvement grants. In 2003 the USDA
invested
almost 22 million to 114 applicants in 24 states to develop energy systems
or efficiency improvements. In addition to wind energy development, grant
eligible projects include solar, biomass, geothermal, hydrogen, and
improvements to a facility or process that reduce energy consumption.

Anticipating 2004 funding already approved by Congress, Secretary of State
Bob Brown, the Montana department of environmental quality, and the Montana
Wind Working Group, with the support of a host of other organizations,
arranged four wind workshops around Montana in February 2004. Presenters
from USDA Rural Development, the National Renewable Energy Laboratory, and
Windustry, a Minnesota based organization that successfully applied for
USDA
renewable energy grants last year, showed people how to develop an
application for funding assistance under the Farm Bill.

Three months later on May 4, 2004, USDA Secretary Ann Veneman announced the
availability of $22.8 million in grants for the renewable energy systems
and
energy efficiency improvement program.

According to the USDA, grant applicants must be agricultural producers or
rural small businesses, U.S. citizens or legal residents, and have
demonstrated financial need; funds cannot be used for research,
development,
land acquisition, or crop production.

Interested Montana producers and rural small business owners should start
preparing their applications as soon as possible to meet the July 19, 2004,
application deadline. Up-to-date information and determinations on
applicant eligibility and other requirements are available from John
Guthmiller at the USDA Rural Development state office in Bozeman, Mont. at
(406) 585-2540, or by e-mail: [email protected].

Jess Algers said that although he had to work "long and hard" last year on
his grant applications, many people helped him through the process, and
he’s
glad that he put in the effort to find the funding for his new turbine.

"Wind seems like the right answer," Algers said.

SIDEBAR FOR MORE INFORMATION:

* 2002 Farm Bill: news and updates are available at
http://www.rurdev.usda.gov/rd/farmbill/latest.html.

* Information about additional energy grants provided for by the Farm Bill
and about USDA’s energy policy can be found at http://www.usda.gov/farmbill/ and
http://www.usda.gov/energy/ respectively.

* NOFA application process, requirements, and state contacts are available
at http://www.rurdev.usda.gov/rd/nofas/2003/rep040803.txt.

* Forms needed to apply for Section 9006 grants and other information are
available at http://www.rurdev.usda.gov/rbs/farmbill/9006form.htm.

* Windustry offers information and updates for farmers interested in wind
power at http://www.windustry.org/farmer/default.htm.

* Further information can be found at http://www.rurdev.usda.gov/rbs/farmbill.

The Montana Wind Working Group prepared this article with information
provided by the Department of Energy’s Wind Powering America Program and
the
National Renewable Energy Laboratory. For more information, please visit
http://www.windpoweringamerica.gov.