Businesses get energy help from government program
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RONAN – Energy costs can be a major expense for agriculture productions and small rural business, but the government wants to help with a grant program in an effort to increase American energy independence and lower energy bills.
“We want to increase economic opportunity,” said USDA Rural Development Director Lad Barney. Barney described the program during an energy workshop hosted by Lake County Community Development Corporation on Wednesday, Feb. 17.
The Farm Bill of 2014 paved the way for a loan guarantee financing and grant-funding project called the Rural Energy for America Program. It provides funds to develop rural energy projects that can include the purchase, installation, and construction of renewable energy systems like biomass production, hydropower, wind energy and solar energy.
Grant funding can also be used for energy-efficiency improvements like insulation, lighting, cooling, windows, electric gravity pumps for sprinkler pivots, switching from diesel to electric irrigation motors and replacing energy-inefficient equipment.
“Grocery stores have used this for energy efficient coolers,” he said adding that it was important to match the project with the energy needs of the business.
Energy projects need to be substantial in size with a minimum grant project for renewable energy systems set at $2,500 and a maximum of $500,000. The energy efficiency grant minimum is $1,500 and the max is at $250,000. The grants are for up to 25 percent of the total cost of the project. Minimum loan amounts are set at $5,000 with a maximum of $25 million, and they provide funding for up to 75 percent of the total cost of the project.
Lake County residents qualify for the program by way of location. Businesses need to be in an area away from a city or town with a population greater than 50,000 to qualify for the program, although having outstanding federal taxes disqualifies a business.
Larry Neskey of Awesome Acres farm in St. Ignatius attended the workshop to hear about the options. He raises pigs, goats and turkeys and sells eggs. He plans on growing vegetables in the spring. Energy sustainability and the environment are key factors in his farming decisions.
“I’m going to put this in my back pocket,” he said of the grant and loan program. He said it might be helpful for future farming projects like solar power or energy efficiency methods for a shop.
Flathead Lake Cheese in Polson received about $9,000 in grant money from the program in 2010.
“The grant gave us the opportunity to offset the price,” Flathead Lake Cheese owner Wendi Arnold said of a solar project she did with her husband Joe.
When the couple started the project, it was possibly the only one of its kind in the world.
“We used solar thermal tubes to heat hot water,” she said. The hot water moves through pipes and gets hot enough to pasteurize the milk they use to make cheese.
“We were looking for energy efficiency,” she said.
The environment was also a factor in their decision.
“We need to look at alternative energy,” she said. “Oil and gas are finite resources. Wind and solar are free – so why not use them?”
With experience filling out grant applications, Arnold had a few words of advice about the process. She said to set aside plenty of time for paperwork.
“This isn’t something you can just rush through,” she said. “But if you don’t do it right, you can try again.”
Heather Handeland, area specialist for the USDA, said that the application process recently changed.
“It’s gotten easier,” Handeland said.
The next application deadline is May 2, but it opens up again in October.
“The application cycle is ongoing,” said Business and Cooperative Program Director Brent Donnelly for the USDA.
Applications can be submitted any time of year at http://www.rd.usda.gov/mt. Rural Development offices of Montana also have applications, and the USDA Missoula office can be reached at 406-829-3395.
