U.S. Department of Agriculture Rural Development (USDA-RD) Alaska State Director Jim Nordlund today announced that USDA-RD has awarded $250,000 to the Gwitchyaa Zhee Utility Company (GZUC) in Fort Yukon for a wood biomass heat distribution project.
The Gwitchyaa Zhee Utility Company project is a great example of what USDA grant and loan programs can do for rural Alaska energy providers and the residents they serve,” said Nordlund. “Instead of burning expensive, imported heating oil, GZUC can now mix waste heat from their generation facility with abundant locally renewable wood to heat seven to eleven buildings in the community.”
GZUC currently generates and sells electricity to approximately 600 residents plus local organizations in Fort Yukon. By growing their business model to include heat sales generated by wood biomass, GZUC will be able to expand their business, create local jobs, and reduce the operating costs of local businesses and organizations. The project will offset approximately 93,000 gallons of diesel fuel annually. This translates to a savings of about $545,000 that will now stay within the local economy. Fort Yukon is located above the Arctic Circle in the Doyon region which is designated as a USDA StrikeForce for Rural Growth and Opportunity area.
The grant funding to GZUC is being provided through USDA-RD’s Renewable Energy Systems & Energy Efficiency Improvement Loans & Grants program, which is administered under the Rural Energy for America Program (REAP). Other partners in this project include the State of Alaska and the U.S. Department of Energy.
Coincident to announcing the Fort Yukon award, USDA-RD is also announcing that applications for energy awards in 2017 are now being accepted. The agency is encouraging rural small businesses and agricultural producers to apply for loans and grants to support renewable energy and energy efficiency projects. USDA is accepting applications for: 1) energy audit and renewable energy development assistance grants, and 2) renewable energy system and energy efficiency guaranteed loans and grants.
Applications for renewable energy systems or energy efficiency improvement grants of $20,000 or less are due by Oct. 31, 2016. Applications for renewable energy systems or energy efficiency grants of any eligible size are due by March 31, 2017.
Applications received after March 31, 2017, will be considered in Fiscal Year 2018, which starts Oct. 1, 2017. Guaranteed loan applications will be reviewed and processed when received, with periodic competitions. Eligible applicants include agricultural producers and rural small businesses, including tribal business entities, rural electric cooperatives and public power entities.
Renewable energy sources include wind, solar, renewable biomass (including anaerobic digesters), small hydro-electric, ocean, geothermal or hydrogen derived from these renewable resources. Energy efficiency grants can provide equipment and building upgrades that result in energy savings for the small business, such as heating, ventilation and cooling systems; insulation; lighting and refrigeration.
Eligible applicants for energy audit and renewable energy development assistance grants include state, tribal or local governments; institutions of higher education; and rural electric cooperatives and public power entities. The applicant then helps provide technical assistance to small businesses in the region.
The application deadline for energy audit and renewable energy development assistance grants is Jan. 31, 2017. For example, in May 2016, the Southeast Conference was awarded a $96,000 USDA-RD Energy Audit Grant to help fund 26 energy audits for rural small businesses in Southeast Alaska.
“We are committed to energy projects because they create long-term, economic benefits for businesses and rural communities,” Nordlund said. “USDA-RD’s funding helps promote Alaska’s energy independence and supports the production of home-grown energy sources. I highly recommend all eligible applicants to take advantage of these great funding opportunities.”
For additional information, contact the Jessie Huff, USDA-RD Alaska’s Energy Coordinator at (907) 761-7768 or jessie.huff@ak.usda.gov, or see page 71689 of the October 18 Federal Register.
Since 2009, the U.S. Department of Agriculture-Rural Development (USDA-RD) Alaska, has invested more than $2 billion in 226 rural Alaskan communities. These investments include project funding for housing, community facilities, business, energy, water and sewer, telecom and electric. This funding has helped to grow rural Alaska’s economy and enhance the quality of life for its rural residents.