Bioenergy & Rural Electric Cooperatives Carol E. Whitman Agriculture as a Producer and Consumer of Energy June 24-25, 2004 Arlington, VA

Co-op Basics 865 distribution and 65 G&T cooperatives Serve 37 million people in 47 states Own and maintain 2.4 million miles, or 43%, of the nation’s electric distribution lines, spanning three quarters of the nation's landmass America’s Electric Cooperative Network

Bioenergy & Cooperatives Co-ops actively support the development of bioenergy and renewables through 5 resolutions, including 2 that specifically support increased use of ethanol and biodiesel.

Why Bioenergy/Renewables? Legal requirements Commitment to community Environmental stewardship Interest by cooperative members Good business

Co-op Experience Biodiesel Biomass to electricity

Biodiesel Distribution co-op serving 300,000 people, headquartered in Hughesville, MD Historically rural agricultural area DOE’s Alternative Fuel Transportation Program Southern Maryland Electric Cooperative (SMECO)

Biodiesel cont. State & Alternative Fuel Provider Rule Acquire new or used AFVs, Purchase credits from other covered fleets, Use credits they have earned, or Purchase biodiesel fuel blends of 20% biodiesel or greater

Biodiesel cont. PROs Satisfied requirements under AFTP Supported local businesses and farmers CONs Procurement issues Reduced fuel economy Storage issues Engine warranties

Biodiesel cont. SMECO’s solution Environmental credits

Biomass to Electricity G&T serving 25 co- ops and 20 municipals (500,000+ people), headquartered in LaCrosse, WI 5 states—WI, MN, IA, and MI Methane digester plan

Biomass to Electricity Renewable Energy Targets WI RPS of 2.2% by 2011 MN renewable energy objective of 10% by 2015 IA mandatory utility green power option IL renewable portfolio goal of 15% by 2020

Biomass to Electricity cont. PROs Support local economy Multiple benefits –Improved air and water quality –Pathogen and weed seed reduction Proven technology CONs High installed capital costs Permitting issues Farm stability critical to success Technical interconnection issues

Biomass to Electricity cont. Dairyland is working on 5 projects Wild Rose Dairy, La Farge, WI Back Farms, Dorchester, WI Norswiss Farms, Rice Lake WI Five Star Dairy, Elk Mound, WI Daley Farms, Rochester, MN

Conclusions Some technical constraints to use remain. Market barriers pose a greater challenge, e.g., –Cost –Availability –Performance