1. Advancing Renewables in the Midwest A.L. Goldberg Energy and Waste Management Bureau Iowa Department of Natural Resources March 28, 2007

2. Presentation Summary State Energy Office Programs Area DNR Renewable Energy Projects Community-Based Anaerobic Digestion GIS AD Asset Mapping Tool Demonstration

3. DNR: State Energy Office U.S. DOE designated energy office for Iowa Non-regulatory Support EE/RE implementation in public facilities Provide EE/RE outreach and education to Iowa Communities IEO Mission Statement The mission of the Iowa Energy Office is to increase the use of energy efficiency and renewable energy technologies while ensuring the reliability of the state’s power.

4. Iowa Energy Bank Energy management program for school districts, local governments, hospitals, non-profit organizations, and private colleges Uses state resources and private sector money to help facilities achieve energy and money savings MOA to join the program Technical Engineering Analysis (TEA) Six-month interest free loan for TEA Savings generated repay the loan

5. SIFIC State of Iowa Facilities Improvement Corporation Finance energy management improvements in state agency facilities Reduce state spending by making state government more energy efficient Save state dollars once the cost of implementing the improvements has been recouped through energy cost savings

6. Iowa Clean Cities Coalition Expand infrastructure for alternative fuels and vehicles Develop and implement idle reduction and fuel economy strategies in the state Reduce our consumption of petroleum and improve air quality in the state Encourage public-private partnerships Blues for Greens Alternative Transportation Festival April 21, 2007 Des Moines Waterworks Park

7. New Bohemia Solar Project Collaboration between I-RENEW, Alliant Energy, the City of Cedar Rapids, the Thorland Co., and DNR – funded by US DOE 7,200 watts of solar-generated electricity for Alliant Energy’s Second Nature customers Kouba Building, Cedar Rapids New Bohemia Brownfields Redevelopment neighborhood www.iowadnr.com/energy/news/files/bohemiafact.pdf

8. EE Fort Dodge Home Collaboration between Iowa Central Community College carpentry program, RDG Planning and Design, and the DNR – funded by $100,000 US DOE Rebuild America Program grant 1,780 square feet – total production cost $180,000 Uses 60 – 64 percent less energy than a similar home Energy efficient envelope, ground source heat pump, high efficiency windows, daylighting, Energy Star appliances, on-demand water heater, and landscaping that minimize watering needs

9. G.A.P.R.I. Grinnell Area Petroleum Reduction Initiative Reduce community dependence on petroleum by increasing the use and procurement of bio-products Collaboration between Imagine Grinnell and Iowa DNR Energy – funded by U.S. DOE

10. Farm Bill 9006 Assistance DNR Energy is part of USDA’s Section 9006 RE/EE grant assistance team Provide letters of support to all Iowa applicants and grant writing assistance Iowa received 51 of the 375 grants awarded this year, second highest in the nation Iowa received 8 of 12 combination grant / guaranteed loan awards Amana Farms was awarded a $500,000 grant and a $1,068,500 guaranteed loan for their digester project

11. Waste Streams to Commodities Economic development opportunity to: Process manure and other organic waste streams to: Produce biogas and associated value-added products from a community-based anaerobic digester

12. AD Community Outreach Since June 2005, DNR has worked with 16 Iowa communities to investigate AD opportunities:

13. Community Digester Basics Anaerobic digestion is the bacterial decomposition of organic matter that occurs in the absence of oxygen

14. Why Large-Scale, Co-Digestion AD? Co-digestion of multiple, organic feedstock for better gas production Large-scale: 300 – 1,000 tons feedstock/day Produces large volumes of renewable energy, making that energy more marketable Relieves smaller livestock producers from digester operation and management Provides rural economic development and investment opportunities

15. Iowa Methane Potential Iowa Potential: 677,000 MWh/yr could power 63,469 average American homes, offsetting $47,390,000/yr in retail electricity (@ $0.07/kWh)

16. GIS AD Asset Mapping Tool

17. Iowa Opportunities

18. Woodbury County Example

19. Sioux City / Woodbury County

20. Project Design Models Farm scale – large dairies: 750 + Community-based, with centralized organics collection Food and Energy Enterprise Zones – possibly where the greatest opportunities lie Integration with community wastewater treatment facilities Industrial park model, where industries with problematic waste streams build and use a digester collectively

21. Economic Benefits Community economic development: businesses, jobs, local tax receipts, green energy investment opportunities Renewable energy: biogas and/or electricity + thermal Minimized wastewater treatment costs and tipping fees High value crop nutrients: measurable, more environmentally benign … Solids separation: soil amendments and/or livestock bedding Carbon credits, tradable on the Chicago Climate Exchange

22. Environmental Benefits Reduces odors by 90 percent or more Reduces GHG damage to the atmosphere: CO 2 X 21 = CH 4 Reduces nitrate pollution to water from faster nutrient uptake* Renewable fuel that reduces fossil fuel use and emissions associated with their use *Source: Danish Agricultural Advisory Service, Crop Production (15-year study)

23. Societal Benefits Addresses quality-of-life issues Promotes positive environmental stewardship Improves community’s perception of industry Makes livestock, food, and energy production sustainable in the community

24. DNR Assistance to Communities Organize core working group Develop and present community meetings Assemble and participate in advisory committees Identify project funding sources and incentives Identify technology providers Enlist contractor to complete financial and technical feasibility study Provide guidance for project permitting requirements

25. For more information, contact: A.L. Goldberg (515) 281-8912 Allan.Goldberg@dnr.state.ia.us Jim Bodensteiner (515) 281-8416 Jim.Bodensteiner@dnr.state.ia.us V isit our Web site at: http://www.iowadnr.com/energy/ Allan.Goldberg@dnr.state.ia.us Jim.Bodensteiner@dnr.state.ia.us http://www.iowadnr.com/energy/