ACEEE NEWS RELEASE

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GRANTS IN 2002 FARM BILL SPURRED EFFICIENCY INVESTMENTS IN STATES WITH EXISTING PROGRAMS

July 18, 2007

Washington, D.C.-- A study released today by the American Council for an Energy-Efficient Economy (ACEEE) shows that states with existing agricultural energy programs were able to effectively leverage energy efficiency and renewable energy grants provided by U.S. Departments of Agriculture under Section 9006 of the 2002 Farm Bill. Unfortunately, states that did not have existing agricultural energy programs were much less effective in developing projects to make use of these funds.

The new report, Agricultural Energy Efficiency Infrastructure: Leveraging the 2002 Farm Bill and Steps for the Future, reviews a selection of extant programs across the country, and is a follow-up to a 2005 survey of these programs that ACEEE prepared. This report examines the strengths and weaknesses of a sampling of the numerous energy efficiency programs in the agricultural sector, and it looks at some emerging trends across the country.  In addition, it explores the relationship, if any, between the emergence or expansion of these programs and Section 9006 of the 2002 Farm Bill.

ACEEE’s assessment finds that the Sec. 9006 grants and loans have proven to be enormously successful in the states and regions that were able to acquire funding. However, its benefits have not been felt nationwide—many states still do not have any technical assistance programs or energy experts to assist potential beneficiaries; thus, many of those states have not been able to acquire grants.

Since the 2002 Farm Bill sunsets in 2007, the upcoming Farm Bill will be the appropriate legislative vehicle to house the recommended provisions discussed in this report.  The report notes that the companion Section 9005 authorized grants to conduct audits to identify opportunities, but was never funded.  “Section 9005 was meant to help organizations create programs within the agricultural sector,” said Dr. Neal Elliott, co-author of the report and Director of ACEEE’s Industry and Agriculture Program  “By not funding Section 9005, the full potential of Section 9006 has been impossible to realize.”

“We hope that an expanded Section 9005 will be included with funding in the upcoming 2007 Farm Bill,” stated Dr. Elliott. “We need to provide aid the underserved states to enable them to build the capacity to deploy energy efficiency programs for the agricultural community.”

The report finds that new organizations specifically dedicated to improving efficiency on farms, ranches, and rural businesses have emerged over the past few years, and existing programs are widening their focus to include agricultural energy efficiency issues. Whether by offering rebates for energy-efficient farm equipment, providing online or on-farm audits, or lending technical or financial support, these programs play a key role in aiding producers and rural businesses in managing their energy budgets. “By reducing rural consumers’ energy costs, these programs often allow them to stay afloat in this time of sky-rocketing fuel prices,” said Dr. Elliott.  “In turn, these successes lead to increased rural economic development, food security, reduced dependence on foreign energy sources, and improved environmental quality.” 

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About ACEEE:The American Council for an Energy-Efficient Economy is an independent, nonprofit organization dedicated to advancing energy efficiency as a means of promoting both economic prosperity and environmental protection. For information about ACEEE and its programs, publications, and conferences, contact ACEEE, 1001 Connecticut Avenue, N.W., Suite 801, Washington, D.C. 20036-5525 or visit http://aceee.org