Massachusetts Farm Energy Program

Immediate Assistance: Existing Energy Programs

View or download a two page document "What you can do to start saving money and participate in the MFEP at no cost to you!"

View or download a one page summary document "Mass Farm Energy Program Services for Farmers"

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.

Farm Energy Discount Program Update: The Massachusetts Department of Agricultural Resources (MDAR) and the Massachusetts Department of Public Utilities have been working together over the last few months to clarify the provisions of the Farm Energy Discount Program.  While local gas and electric distribution companies (LDC’s) as well as municipal plants are required to provide the discount, there has been much confusion as to whether competitive electric and natural gas providers (competitive suppliers) have the same obligation to provide the discount.

We have concluded that trying to impose and enforce the Farm Energy Discount Program on competitive suppliers is not possible because the rates charged by competitive suppliers are not regulated. However farms still have a means to pursue a discounted commodity rate when shopping for competitive supply:

  • Find out from your LDC or municipal light plant how much they will charge you for gas or electricity, including the 10% discount.
  • Have a conversation with your LDC representative to better understand past and existing rates and possibly even discuss future projected rates. While LDC rates are set by tariff, this information can be leveraged to negotiate with several competitive suppliers and brokers to ensure that any proposal is competitive with your LDC’s discounted rate.
  • Work with competitive suppliers, brokers, and LDC’s to negotiate lower energy supply prices to achieve an equivalent discounted rate, or other favorable terms and conditions.

Currently MDAR is tracking and will be posting companies that provide the discount on the Farm Energy Discount Program web page, http://www.mass.gov/agr/admin/farmenergy.htm.

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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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Department of Public Utilities (DPU) Net Metering Draft Regulations

The DPU has issued draft regulations for public comment pertaining to Net Metering. DPU was enabled by the Green Communities Act legislation, signed into law last July by Governor Patrick, to develop regulations pertaining to this legislation. A general hearing is scheduled April 27, 2009 and all comments are due no later than May 4, 2009. For more information go here.

The Net Metering legislation and corresponding regulations will help incentivize distributed renewable energy electrical generating projects including wind and solar as well as agricultural related technologies such as anaerobic digesters.

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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, National Grid (formerly Keyspan Gas), and NSTAR. 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 contact Vicki Marchant, Superior Court House, PO Box 427, Barnstable, MA 02630, vmarchant@capelightcompact.org, 508-744-1278, fax 508-362-4136
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, 201 Jones Rd., Waltham MA 02451, michael.pace@us.ngrid.com, 781-907-1610
NSTAR Electric & Gas
To request an energy audit for your farming operation, contact Augustine Pimentel, One NSTAR Way, SW 360, Westwood MA 02090, augustine.pimentel@nstar.com, 339-987-7568
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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Massachusetts Technology Collaborative 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). 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 projects up to 500 kilowatts (kW). Commonwealth Solar has $68 million available for funding over the next four years to support PV installations. MTC's Large Onsite Renewables Initiative (LORI) grants are awarded for feasibility studies and design & construction projects of systems greater than 10 kW. MTC anticipates that the next round of LORI applications will be due in the spring of 2009. 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. 10% of funding will be reserved for projects benefiting beginning or socially disadvantaged farmers and ranchers, and 10% shall be reserved for projects developing mid-tier value chains. $15 million will be available nationally. The Notice of Solicitation of Applications could be issued early in 2009. For more information visit the VAPG web site which contains application guidance, FAQs, application guide and application templates (which is strongly recommended).

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USDA-Rural Development's (RD) Section 9007: Rural Energy for America Program (REAP), formerly called Renewable Energy Systems and Energy Efficiency Improvements Program

The Section 9007 of the 2008 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. REAP information is being updated to reflect the requirements in Title IX of the 2008 Farm Bill. Program details will be available after October 2008. The Massachusetts Farm Energy Program, through Berkshire-Pioneer RC&D, and the Massachusetts Woodlands Institute, are currently offering grant writing assistance to farmers and forest products businesses for applying to this program, 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 public utility incentive programs. Guaranteed loans can be made up to 75% of the project to a maximum of $25 million, or a combination of 25% grant and up to 50% guaranteed loan. 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 9007 program cannot be for residential use. The estimated 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 9007 REAP application process is competitive so it is important that you do the best job possible to attain the highest possible score. Berkshire-Pioneer RC&D, MA Woodlands Institute and USDA-Rural Development are offering a series of information sessions around the state to help farmers learn about the application process. As needed, follow-up grant writing workshops will provide technical support and grant writing assistance. These workshops will provide one-on-one assistance. The workshop schedule is as follows and registration is required:

FOR WESTERN MASS
REAP Info Session
January 9, 2009, 9 AM — Noon
Deerfield Town Hall
8 Conway Street, South Deerfield, MA
Contact: Emily Boss
Massachusetts Woodlands Institute
413-397-8800
emily@masswoodlands.coop

REAP Info Session
February 18, 2009, 9:30 AM — 12:30 PM
Lanesborough Town Hall Community Room
83 North Main Street, Lanesborough, MA
Contact: Emily Boss
Massachusetts Woodlands Institute
413-397-8800
emily@masswoodlands.coop

REAP Technical Assistance/Grant Writing Workshop
March 17, 2009, 9 AM — Noon
Hadley RD Area Office
195 Russell St., Suite B7, Hadley, MA
Contact: Emily Boss
Massachusetts Woodlands Institute
413-397-8800
emily@masswoodlands.coop

FOR CENTRAL MASS
REAP Info Session
January 27, 2009, 9 AM — Noon
Rutland Public Library, Rutland, MA
Contact: Jim Lavin
USDA RD
508-829-4477 Ext 126
james.lavin@ma.usda.gov

REAP Technical Assistance/Grant Writing Workshop
February 19, 2009, 9 AM — Noon
Holden RD Area Office
52 Boyden Road, Suite 100, Holden, MA
Contact: Jim Lavin
USDA RD
508-829-4477 Ext 126
james.lavin@ma.usda.gov

REAP Technical Assistance/Grant Writing Workshop
March 19, 2009, 9 AM — Noon
Holden RD Area Office
52 Boyden Road, Suite 100, Holden, MA
Contact: Jim Lavin
USDA RD
508-829-4477 Ext 126
james.lavin@ma.usda.gov

FOR SOUTHEASTERN MASS
REAP Info Session
February 4, 2009, 9 AM — Noon
Cape Cod Cranberry Experiment Station Library
1 State Bog Road, E. Wareham, MA
Contact: Anne Correia
USDA - Rural Development
15 Cranberry Hwy
West Wareham, MA 02576
508-295-5151 Ext 136
Anne.Correia@ma.usda.gov

REAP Technical Assistance/Grant Writing Workshop
March 18, 2009, 9 AM — Noon
West Wareham Field Office
15 Cranberry Highway, W. Wareham, MA
Contact: Anne Correia
USDA - Rural Development
15 Cranberry Hwy
West Wareham, MA 02576
508-295-5151 Ext 136
Anne.Correia@ma.usda.gov

REAP Technical Assistance/Grant Writing Workshop
April 23, 2009, 9 AM — Noon
West Wareham Field Office
15 Cranberry Highway, W. Wareham, MA
Contact: Anne Correia
USDA - Rural Development
15 Cranberry Hwy
West Wareham, MA 02576
508-295-5151 Ext 136
Anne.Correia@ma.usda.gov

The Berkshire-Pioneer RC&D and the MA Woodlands Institute are also currently offering assistance to complete the REAP application. The Energy Efficiency component of this program has been underutilized in Massachusetts so far. In 2008, the MFEP assisted seven applicants and all were funded. Energy Efficiency projects require an energy assessment or an energy audit thus additional time and professional services must be planned for. The MFEP offers technical assistance and financial assistance for energy audits.

MFEP & MA Woodlands Institute grant proposal writing assistance for applying to the USDA-Rural Energy for America Program in early 2009.

Contact Information for USDA/Rural Development:

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