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Renewable energy, energy efficiency playing key role in Iowa's growing rural renaissanceBy Mark Reisinger Iowa State Director, USDA Rural Development Iowa Whether you are directly involved in renewable energy or energy efficiency industries, or are one of the approximately 250,000 Iowans falling behind on their energy bills this winter, it is clear that energy production, consumption, and efficiency affect our entire state. In February, MidAmerican Energy reported that in the four-month period between October and January, the average residential customer's natural gas bill increased by $22, from $357 to $379, compared to a year earlier, an increase of 6.2 percent. In January 2008, the average MidAmerican Energy residential customer used 166 therms of natural gas to heat their home compared to 120 therms in January of 2007, a 38 percent increase. From my viewpoint as USDA Rural Development state director, the pursuit of renewable energy and efficient energy usage is, in part, responsible for Iowa's growing rural renaissance. According to the American Wind Energy Association, Iowa is fourth among all states in wind electricity generation, behind Texas, California, and Minnesota. The Iowa Office of Energy Independence reports that Iowa, on a per capita basis, is first in the nation in wind electricity generation. There are around 1,000 large wind turbines in Iowa, and more are being built. MidAmerican Energy alone will erect another 260 wind turbines in Iowa this year bringing its total number of wind turbines to 726, the most in the nation owned by a regulated utility company. There are also many smaller turbines scattered across Iowa producing energy for farms, homes, and small businesses. Biofuels constitute another key area. Iowa's growing ethanol industry uses around 507 million bushels of corn, or about 20 percent of the 2.5 billion bushels harvested last fall by Iowa producers. Biodiesel refineries in Iowa produce 317.5 million gallons of biodiesel annually, with expansion plans to add another 35 million gallons. In fact, a recent study released by the Iowa Renewable Fuels Association reported that the renewable fuels industry adds $12.7 billion to Iowa's gross domestic product. At USDA Rural Development we make it a priority to serve the growing renewable energy and energy efficiency industries in our state and across the nation. Guaranteed loans and grants are available from USDA Rural Development to help with renewable energy production, as well as to assist businesses in becoming more energy efficient. Our agency is currently accepting applications for 2008 funding. During the past five years, nearly 230 projects in Iowa have received $37 million in two general categories. The first helps rural small businesses or agricultural producers finance the installation of wind turbines, solar panels, geothermal units, and anaerobic digesters, or construct biodiesel and ethanol plants. The other category funds energy efficiency projects, such as installing new electric motors that are more efficient in equipment, replacing inefficient lighting, adding insulation, and improving electrical or heating and cooling systems. Along with on-farm uses, businesses such as restaurants, grocery stores, bakeries, greenhouses, cold storage businesses, ethanol plants, and manufacturing facilities looking to make energy-efficient upgrades may be eligible to receive assistance from this program. Costs incurred before submitting an application are not eligible and funds are not available for residential use. While we can't control Mother Nature, as evidenced by our harsh winter, we can control the production of energy and technologies to make energy-efficiency improvements to our businesses and our transportation needs. I encourage interested business owners and producers to contact Rural Development to learn more about financing programs for their renewable energy and energy efficiency projects. Please give us a call at 515-284-4663. You can also e-mail me at mark.reisinger@ia.usda.gov or visit www.rurdev.usda.gov/ia. Mark Reisinger was appointed USDA Rural Development State Director in Iowa in May 2005. Rural Development has 11 offices including a State Office in Des Moines, along with Area Offices in Albia, Atlantic, Humboldt, Indianola, Iowa Falls, Le Mars, Mount Pleasant, Storm Lake, Tipton and Waverly. 3/17/08 Date: 3/12/08
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