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USDA ANNOUNCES OVER $2.8 MILLION TO SUPPORT RURAL RENEWABLE ENERGY AND ENERGY EFFICIENCY EFFORTS IN NEW YORK STATE

        AUBURN, N.Y., September 24, 2003---USDA Under Secretary for Rural Development Thomas C. Dorr, Lt. Governor Mary O. Donohue and Patrick H. Brennan, State Director for USDA Rural Development in New York today announced the selection of 18 applications for Renewable Energy Systems and Energy Efficiency Improvement Grants (REEG).  The grants totaling $2.8 million were announced at a ceremony held at Oakwood Dairy in Auburn , one of the grant recipients.  In all, 16 businesses in nine Upstate New York counties received funding.  In addition to the grants announced today, the businesses received leveraged funding of nearly $14.7 million.

        The grant program is part of the Bush Administration’s overall effort to increase America ’s energy independence through the development of renewable energy resources as well as improving efficiency of existing systems.

            “ America ’s rural businesses, farmers and ranchers are key to the development of renewable energy for our country,” said Under Secretary Dorr.  “The capital investments being made through these grants will support the conversion of our natural resources and residuals of farming operations into new sources of energy and help meet the energy goals outlined by President Bush in 2001.” 

            Lt. Governor Donohue said, "The efforts we are making at the state level, combined with announcements we are making today through federal government support, are proof that New York remains a national leader in energy efficiency projects and programs."

            "I am very pleased to announce these grants which will further President Bush's efforts in encouraging alternative energy sources and energy independence here in New York State ," said Mr. Brennan.  " New York State ranked second in the nation in project dollars awarded; much of our success can be directly attributable to an extremely successful state energy policy developed under the leadership of Governor Pataki."

        State Agriculture Commissioner Nathan L. Rudgers said, "Agriculture serves as the economic backbone for rural New York .  These 18 projects, along with Governor Pataki's on-going commitment to reducing energy costs, will help our farms remain viable in Upstate New York by helping them become more energy efficient and independent."

        "Thanks to the energy efficiency and renewable energy grants from the USDA, many New York farms will have the ability to control their energy costs and improve their profitability," said New York State Energy Research and Development Authority (NYSERDA) Acting President Peter R. Smith.  "These grants will also complement what NYSERDA is already doing in the agricultural community.  With Governor Pataki's support, NYSERDA will continue to provide the necessary financial and technical assistance to help farms reduce energy use and save money."

            Nationwide, 113 grants have been awarded to projects in 24 states totaling $21.2 million.

        Oakwood Dairy, LLC was awarded a $153,743 Energy Efficiency Improvement Grant for a system that reduces the energy required to spread manure on croplands.  The new system reduces diesel fuel consumption by one fifth the annual amount.  This project also included $500,000 in leveraged funds.

        The 2002 Farm Bill authorized the Renewable Energy Systems and Energy Efficiency Improvements program. Applicants for the funding include agricultural producers or rural small businesses, U.S. citizens or legal residents and have demonstrated financial need.  Rural Development grant funds can be used to pay up to 25 percent of the eligible project costs.  Eligible projects include those that derive energy from a wind, solar, biomass, or geothermal source, or hydrogen derived from biomass or water using wind, solar, or geothermal energy sources. Awards were made on a competitive basis for the purchase of renewable energy systems and to make energy improvements.

        In New York State , eight of the 18 awards are for Energy Efficiency Improvements totaling $842,811; and 10 are for Renewable Energy Systems for over $2 million.  With leveraging of nearly $14.7 million, this represents total project costs of over $17.5 million.

        Nationwide, funding to assist with the development of renewable energy systems included: 35 applications totaling $7.4 million to support wind power, 30 applications totaling $7 million for anaerobic digesters, 6 applications totaling $1.1 million solar and 16 applications totaling $3.9 million for a ethanol plants/anaerobic digesters, direct combustion and fuel pellet systems.  Awards were made on a competitive basis for the purchase of renewable energy systems and to make energy improvements. 

        In New York State , the renewable energy systems applications included: one for $78,819 for a 100 kilo watt wind turbine, two applications totaling $216,194 for wood/bio-mass heat and power systems, and seven totaling over $1.7 million for anaerobic digesters. 

USDA Rural Development's mission is to deliver programs in a way that will support increasing economic opportunity and improve the quality of life of rural residents. As a venture capital entity, Rural Development provides equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure.  Further information on the Renewable Energy Systems and Energy Efficiency Improvement Grant Program can be obtained by contacting Robert Pestridge at (315) 477-6426.  Information on rural programs is available by contacting a local USDA Rural Development Office or by visiting USDA's web site at www.rurdev.usda.gov.  USDA Rural Development is an Equal Opportunity Lender, Provider, and Employer.  Complaints of discrimination should be sent to: USDA, Director, Office of Civil Rights, Washington , D.C. 20250-9410

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Note to Editors: Attached is a table showing the grants awarded in New York State sorted by County.

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