Massachusetts Farm Energy Program

Immediate Assistance: Existing Energy Programs

Farm Energy Discount Program

The Massachusetts Department of Agricultural Resources (MDAR) is the state agency responsible for determining and certifying eligibility for the Farm Energy Discount Program included in the legislation enacted to restructure the utility industry. As a result of the utility restructuring, all agricultural ratepayers will enjoy a mandated ten percent reduction on their energy bills for electricity and natural gas. Those persons or corporations that are principally and substantially engaged in the business of production agriculture or farming for an ultimate commercial purpose are eligible. Upon determination that the applicant qualifies for the Farm Discount, MDAR will certify to the appropriate power supplier (electricity and/or natural gas) that the applicant meets the requirements for the Farm Discount and is eligible for a ten percent discount on rates. To maintain the Farm Discount, the applicant is required to submit a yearly renewal application to MDAR for confirmation of information and signature. The discount is not available for propane or fuel oil accounts. As of October 1, 2007, about 1500 farmers were in the program. Interestingly, the latest Agricultural Census reports there are about 6100 farms in Massachusetts. The Farm Energy Discount Program may be underutilized.

A two-page application is available at http://www.mass.gov/agr/admin/farmenergy.htm or contact Linda Demirjian, Office Manager, MDAR, at (6l7) 626-1733.

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Massachusetts Department of Agricultural Resources

The Massachusetts Department of Agricultural Resources (MDAR), through their newly created renewable energy coordinator position, now offers support for farms interested in energy efficiency, conservation, and renewables. The primary function of the coordinator is to promote energy knowledge and awareness and to facilitate the implementation of energy related projects for our agri-businesses through energy efficiency, energy conservation and renewable energy applications, as a means to reduce both energy costs and environmental pollution. A number of data bases of relevant resources are being developed and informative web-links are being identified to assist in your ability to obtain technical and financial assistance toward energy related matters for your agricultural business. More information and technical resources are available at http://www.mass.gov/agr/programs/energy/index.htm.

To discuss the technical aspects of your proposed energy project, please contact Gerry Palano, MDAR Renewable Energy Coordinator and partner in the MFEP at 617-626-1706 or Gerald.Palano@state.ma.us .

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Non-Municipal, Investor-owned ("Public") Utility Conservation & Energy Efficiency Programs

There are four investor-owned electric utility companies in Massachusetts: National Grid, NSTAR, UNITIL (Fitchburg Gas & Electric), and Western Massachusetts Electric Company. In addition, Cape Light Compact operates the regional energy efficiency program for the Cape and islands. Natural gas companies include Berkshire Gas, Bay State Gas, Keyspan Gas, and NSTAR. Keyspan will become National Grid in March 2008. Customers of these investor-owned ("public") utility companies pay into conservation and renewable energy funds and therefore have access to energy conservation programs, as well as the renewable energy programs offered by the Massachusetts Technology Collaborative. These "public" conservation and energy efficiency programs are regulated by the MA Department of Public Utilities. Typically, energy audits and some types of energy assessment, performed by a contractor or employee of the utility company, are offered as well as financial incentives (cost-share) on energy efficiency measures that are cost effective relative to energy savings. In simple terms, the energy cost savings divided by the investment costs must be greater than one. However, there may be some energy efficiency measures that would be of great benefit to agricultural operations but do not meet the cost effectiveness formula used by the public utility industry.

Investor-owned Utility Contact Information:

Cape Light Compact
To request an energy audit for your farming operation, contact Maggie Downey, PO Box 427/SCH, Barnstable MA 02630, mdowney@barnstablecounty.org, 508-375-6636
Bay State Gas Co.
To request an energy audit for your farming operation, contact Partners in Energy Intake Center, 300 Friberg Parkway, Westborough MA 01581, www.baystategas.com, 800-232-0120
Berkshire Gas
To request an energy audit for your farming operation, contact Ken Sadlowski, 115 Cheshire Rd., Pittsfield, MA 01201, ksadlowski@berkshiregas.com, 413-445-0345
National Grid
To request an energy audit for your farming operation, contact Michael Pace, 52 2nd Ave., Waltham MA 02415, mpace@keyspanenergy.com, 781-907-1610
NSTAR Electric & Gas
To request an energy audit for your farming operation, contact W. Hugh Gaasch, One NSTAR Way, SW 360, Westwood MA 02090, w.hugh.gaasch@nstar.com, 781-441-8706
Fitchburg Gas & Electric/UNITIL
To request an energy audit for your farming operation, contact Ed Mailloux, 6 Liberty Lane W., Hampton NH 03842, mailloux@unitil.com, 603-773-6541
Western MA Electric Co (WMECO)
To request an energy audit for your farming operation, contact Robert Dvorchik, 333 West St., Pittsfield MA 01201, dvorcrs@nu.com, 413-499-9004

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Municipal Utilities

Many farmers fall through the cracks of the commercial energy conservation programs for various reasons. Customers that are serviced by the forty municipal electric, and in some cases gas, utility departments typically do not pay into conservation or renewable energy funds. Municipal customers therefore do not have access to energy conservation programs offered by the utility industry or renewable energy programs offered by the Massachusetts Technology Collaborative (see below). However, because some municipal utility companies have developed fee for service audit programs, it is important to contact your individual municipal utility company to see if other options are available.

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Renewable Energy Trust

Although there are numerous farmers investing in renewable and alternative energy projects, there are many more who could be taking advantage of renewable energy programs administered by the Massachusetts Technology Collaborative (MTC). A new initiative, Commonwealth Solar, provides rebates through a non-competitive application process for the installation of photovoltaic (PV) projects. Non-residential PV projects are eligible for rebates for up to 500 kilowatts (kW). Commonwealth Solar has $68 million available for funding over the next four years to support PV installations. MTC's Small Renewables Initiative (SRI) provides rebates for the installation of wind and small hydroelectric projects that are up to 10 kilowatts. The SRI distributes approximately $3.6 million of rebates each year through FY2010.  Rebates will be provided on a "first come - first served" basis. MTC's Large Onsite Renewables Initiative (LORI) grants are awarded for feasibility studies and design & construction projects of systems greater than 10 kW. MTC is now accepting applications for LORI. The deadline for submission is February 21, 2008 at 4pm. Prior to submitting a LORI application, each applicant must secure a consulting team. The applicant (and project site) must be a customer of a Massachusetts investor-owned electric distribution utility.

Contact Information for Massachusetts Technology Collaborative:

Massachusetts Technology Collaborative
To inquire about renewable energy projects for your farming operation, contact Elizabeth Kennedy at 508-870-0312, ext. 1241 or kennedy@masstech.org.

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USDA-Rural Development's (RD) Value Added Producer Program (VAPG)

Rural Development's Value-Added Producer Grant Program (VAPG) may be used for planning activities and for working capital for marketing value-added agricultural products and for farm-based renewable energy. Eligible applicants are independent producers, farmer and rancher cooperatives, agricultural producer groups, and majority-controlled producer-based business ventures. For more information visit their VAPG web site which contains application guidance, FAQs, application guide and application templates (which is strongly recommend). $18.4 million is available nationally and applications are to be submitted to USDA-RD State Offices instead of the National Office by 3/31/08.

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USDA-Rural Development's (RD) Renewable Energy Systems and Energy Efficiency Improvements Program

The Section 9006 of the 2002 Farm Bill provides funding for renewable energy systems and energy efficiency improvements. Rural Development administers these funds and offers grants, guaranteed loans, or a combination to farmers and rural small businesses. Applications must be received by RD by April 15 (Round 1) or by June 16 (Round 2). The Massachusetts Farm Energy Program through Berkshire-Pioneer RC&D, is currently offering grantwriting assistance to complete the application, for any project under $200,000 and for a limited number of projects over $200,000.

Grant requests (to RD) must not exceed 25% of the eligible project costs. RD renewable energy grants can range from $2,500 to $500,000, and can be combined with MTC grants. Energy efficiency grants can range from $1,500 to $250,000, and may be combined with non-municipal incentive programs. Projects under $200,000 qualify for a simplified application process. You can learn more about the programs at this link.

Please note that the energy generated or saved by the 9006 program cannot be for residential use. The cost of installing an electrical meter to separate farm use from residential use would be an eligible project expense. Information to determine eligibility can be found here. If you still have questions about eligibility, level of energy assessment, or environmental review requirements, contact your local Rural Development Area Office. This process may be lengthy so RD will advise you on how to get the environmental review started.

The 9006 Renewable Energy/Energy Efficiency application process is competitive so it is important that you do the best job possible to attain the highest possible score. The Berkshire-Pioneer RC&D is currently offering assistance to complete the application. The Energy Efficiency component of this program has been underutilized in Massachusetts so far. We are confident that farmers can benefit from the features of this program. The Energy Efficiency applications will require an energy assessment or an energy audit.

Completed applications must be received by Charles Dubuc, USDA Rural Development, 60 Quaker Lane, Suite 44, Warwick RI 02886 by close of business on April 15 (Round 1) or by June 16 (Round 2).

MFEP grant proposal writing assistance for applying to the USDA-Rural Development Energy Efficiency & Renewable Energy programs in early 2008.

Contact Information for USDA/Rural Development:

http://www.rurdev.usda.gov/rbs/farmbill/index.html

To inquire about energy efficiency & renewable energy projects for your farming operation, contact the following USDA-RD staff:

Serving Western Massachusetts
Berkshire, Franklin, Hampshire, and Hampden Counties
Peter Laurenza, Area Director
Phone: 413-585-1000 Ext. 4
Fax: 413-586-8648
Email: peter.laurenza@ma.usda.gov
Serving Central Massachusetts and North Shore
Worcester, Middlesex, Suffolk, and Essex Counties
Lyndon S. Nichols, Area Director
Phone: 508-829-4477 Ext. 4
Fax: 508-829-3721
Email: lyndon.nichols@ma.usda.gov
Serving South Eastern Massachusetts, Cape Cod and the Islands
Bristol, Norfolk, Plymouth, Dukes, Nantucket and Barnstable Counties Thomas S. McGarr, Area Director
Phone: 508-295-5151 Ext. 3
Fax: 508-291-2368
Email: tom.mcgarr@ma.usda.gov

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Massachusetts Farm Energy Program