Funding Resources for AgriEnergy in Michigan

1
Funding Resources for Agri-Energy in Michigan

• Dulcey Simpkins
• Michigan Biomass Energy Program
• March 15, 2006

2
Michigan Biomass Energy Program

• What We Do Promote and support the use of
  domestically grown or produced biomass as fuel or
  energy feedstocks.
• How We Do It Various grant programs for biomass
  technologies that are near-to-market or new to
  Michigan market education and outreach
  presentations and materials facilitating
  information sharing among potential producers,
  consumers and beneficiaries of biomass energy.

3
MBEP Program Areas

• Waste-to-Energy ? Anaerobic Digestion, LFGTE
• Combustion, Gasification ? wood, crop residue
• Co-firing ? various biomass with fossil fuels
• Renewable Transport fuels ? ethanol, biodiesel
• Outreach and Education on how to plan, fund
  projects
• MBEP Grants
• Various programs throughout year, amount lt
  30,000, requiring up to 11 match, to
  non-profits, can have for-profit partners
• www.michigan.gov/biomass

4
State-Level EERE Funding

• Michigan Energy Office Grants www.michigan.gov/ene
  rgyoffice
• NextEnergy Authority Renewable Energy Production
  Tax Credits www.nextenergy.org
• MPSC LIEEF EERE Grants http//www.michigan.gov/lie
  efund

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State-Level EERE Funding contd

• DEQ Pollution Prevention Loans
• Karen Edlin, 517-323-0604, edlink_at_michigan.gov
• Brownfield Redevelopment Grants and Loans
• Bruce Moore, 517-373-6413, moorebc_at_michigan.gov 
• Ag Pollution Prevention
• Terri Novak, 517-930-3170, novaktl_at_michigan.gov
• For more information www.michigan.gov/deq

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State-Level EERE Funding contd

• Michigan Economic Development Corporation
• Renaissance Zone development, infrastructure
  www.michigan.org
• 21st Century Jobs Fundfirst round closed, more
  rounds possible http//www.michigan.org/medc/ttc/t
  ricorridor/?m141 background
• 21stCenturyJobs_at_michigan.org questions
• Michigan Department of Agriculture
• Julian-Stille Value-Added Agricultural
  Development Fund
• http//www.michigan.gov/mda/0,1607,7-125--137119-
  -,00.html
• Michael DiBernardo, 517-373-9144

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BUTfew state-level incentives

• No tax credits or incentives for biomass
  residential or commercial use
• No tax credits or incentives for biofuels
  production or use
• No rebates for EERE equipment, installation costs
• No Renewable Portfolio Standard (RPS)
• No production tax credits (PTC)

8
Renewables Portfolio Standards(RPS, RES)
MN 1,125 MW wind by 2010
ME 30 by 2000
NY 24 by 2013
MA 4 by 2009 1 annual increase
MT 15 by 2015
WI 2.2 by 2011
RI 15 by 2020
CT 10 by 2010
IA 105 MW
NJ 6.5 by 2008
CA 20 by 2017
NV 20 by 2015
CO 10 by 2015
PA 18¹ by 2020
DE 10 by 2019
MD 7.5 by 2019
AZ 1.1 by 2007
DC 11 by 2022
NM 10 by 2011
TX 5,880 MW by 2015
HI 20 by 2020
State RPS
Goal
Minimum requirement and/or increased credit for
solar ¹ PA 8 Tier I, 10 Tier II (includes
non-renewable sources)
DSIRE www.dsireusa.org


October 2005
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State Tax Credits Deductions for Renewables
State offers only Personal Tax Incentives
State offers only Corporate Tax Incentives
State/Territory offers Personal Corporate Tax
Incentives
DSIRE www.dsireusa.org


September 2005
10
Net Metering RulesMI max size 30kW, 0.03-0.06
dep. on utility
25 kW
100 kW
50 kW
25
VT 15/150
100


NH 25
100
50
MA 60

40
25
RI 25
10/400
30
20

25/100
CT 100

25

varies
NJ 2,000
no limit
500

40



DE 25
30


under development
10
MD 80
25

1,000
VA 10 /500
15

DC 100
100
25/100

10
10
10/100

50
25/100
varies
50
Net metering is available in 39 states D.C.
State-wide net metering for all utility types
State-wide net metering for certain utility
types (e.g., IOUs only)

Net metering offered by one or more individual
utilities
s indicate system size limit (kW) in some
cases limits are different for residential and
commercial as shown
DSIRE www.dsireusa.org


September 2005
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Some Michigan EERE initiatives have cropped
upmaybe 2006?

• B2 mandate proposed from Reps
• B20/E10 and consumer tax credit counterproposal
  from Dems
• RPS testimony before House Energy Committee
  2005-6
• Michigan Renewable Energy Program
• MREP www.michigan.gov/mrep
• Capacity Needs Forum
• CNF http//www.cis.state.mi.us/mpsc/electric/cap
  acity/cnf/

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Federal Grant Programs

• USDA grants and loans most directly apply to
  Ag-EERE
• Farm Bill 9006
• Paula Gromak, [phone] ext.120
• paula.gromak_at_mi.usda.gov
• Rick Vanderbeek, [phone] ext.5218
• rick.vanderbeek_at_mi.usda.gov
• Value-Added Producer Grant Business Programs
• Traci Smith, 517-324-5221
• traci.smith_at_mi.usda.gov
• Both programs may not be funded after 2006.

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Federal Grant Programs, contd

• USDA funds from Natural Resources Conservation
  Service
• http//www.mi.nrcs.usda.gov/
• Conservation Innovation Grants (CIG)
• http//www.nrcs.usda.gov/programs/cig/
• Environmental Quality Incentives Program (EQIP)
• http//www.mi.nrcs.usda.gov/programs/eqip.html
• Conservation Reserve Programenergy crops
• http//www.mi.nrcs.usda.gov/programs/crp.html
• And more

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Federal Grants for EERE

• Federal Grantsall
• http//www.grants.gov
• DOEopen solicitations, energy-related
• http//www.eere.doe.gov/regions/western/solicitati
  ons.html
• DOE Financing Website
• http//www.eere.energy.gov/financing/ 

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Federal Incentives for EERE

• EPAct 2005 tax incentives for RE production
• Tax credits for solar (30)
• Tax credits for EE
• For buildings placed in service in 2006-7
• CREBSCommunity RE Bonds
• Conservation Tax Credits
• And more

Energy Policy Act 2005 FAQsMichigan Energy
Office http//www.michigan.gov/cis/0,1607,7-154-25
676_31631-127538--,00.html
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EPAct Rebates for RE SystemsAs cited in H.R. 6
Energy Policy Act of 2005, Sec. 206--Renewable
Energy Security (Thomas)

• (c) Rebate Program
• (1) ESTABLISHMENT- The Secretary shall establish
  a program providing rebates for consumers for
  expenditures made for the installation of a
  renewable energy system in connection with a
  dwelling unit or small business.
• Definition of small business at www.sba.gov
• http//app1.sba.gov/faqs/faqindex.cfm?areaID15
• (2) AMOUNT OF REBATE- Rebates provided under the
  program established under paragraph (1) shall be
  in an amount not to exceed the lesser of--
• (A) 25 percent of the expenditures described in
  paragraph (1) made by the consumer, or
• (B) 3,000.
• Rebates wont come online until FY 2006
• rulemaking and appropriations necessary.

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Biofuels Incentives JOBS Act 2004

• Created a penny-per-percent of biodiesel in
  diesel/biodiesel blends (thus, B100 is not
  included) for agricultural biodiesel (from
  vegetable oils, etc.), and ½ penny per-percent
  for recycled biodiesel (waste grease).
• Works as a rebate, with blenders filing a form
  with IRS to receive tax rebate.
• Blenders can pass this credit along to consumers
  to be more competitive with other blenders
• BUTmany are not passing this on, and consumers
  dont have good informationshop around, and ask
  your vendor about the tax credit!
• Similar incentives for ethanol.

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Biofuels Incentives EPAct 2005

• 2005 Energy Bill extended JOBS Creation Act of
  2004 biodiesel credits through 2008.
• Biofuels Infrastructure Tax Credit 30 tax
  credit up to 100,000 (30,000 maximum) for E85
  and/or B20 infrastructure development at retail
  stations.

WOW!
Wacker Oil, Manchester, MI on Oct 21, 2005
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Community Funding

• County Economic Development groups
• Municipal partnerships
• Producer Co-operatives
• Local businesses, investors
• Banks
• Self-finance ? if 2-3 year payback, it may be
  worth it.

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• Questions?
• Dulcey Simpkins
• Michigan Biomass Energy Program
• dlsimpk_at_michigan.gov
• www.michigan.gov/biomass