Renewable energy loans OK’d
OLYMPIA – It was a good news/bad news moment Thursday, when Gov. Chris Gregoire announced nearly $7 million in low-interest state loans for seven renewable energy projects, most of them in Eastern Washington.
The good news: Biodiesel and manure-to-methane ventures will get hundreds of thousands of dollars in loans.
The bad news: Most will get far less money than they requested.
“We like the intent and where everything’s pointed, but we are a little frustrated,” said Mike Conklin, CEO for Co-Ag Producers.
The farm cooperative’s offshoot, Palouse-Bio, wants to build an oilseed crusher and biodiesel refinery in Spokane Valley. State lawmakers last winter approved $2 million in loans, plus another $853,871 announced by Gregoire on Thursday. Still, that’s less than half the projected $7 million cost of the new plant.
“It’s like sending someone out to build a house with only a partial toolbox,” said Conklin. “We get a lot of head shaking and nodding and smiling, and when it comes to the end of the line, we’re left with something less than what we really need.” He said the group would continue to seek grants, loans and cash.
“We’re going to persevere,” he said. “We still think this is a great opportunity for Washington agriculture.”
The money was divided based on scores compiled by an evaluation panel.
The panel included officials from the state and federal departments of agriculture, Washington State University, Department of Ecology and economic development groups.
Gregoire and state lawmakers have repeatedly called for a regional alternative fuel industry that helps reduce the nation’s reliance on foreign oil.
“As a matter of national security, we cannot continue to rely on imported petroleum,” Gregoire said Thursday. “These loans will help reduce that dependence, help to create jobs in rural communities and support farming families.”
Two of the projects will get full funding:
•Port of Sunnyside and George DeRuyter and Sons Dairy: $1,972,715 to build a Sunnyside-area anaerobic digester to convert cow manure into fertilizer, livestock bedding, compost and methane gas. The gas will be burned to generate electricity.
•Tulalip Tribes and local farm and salmon groups: $1.5 million for a similar plant in Monroe. It will convert cow manure to electricity, which will be sold to local utility companies.
The other projects include:
•Port of Whitman County and Wi BioFuels: A seed processing and biodiesel plant in Clarkston to process canola or other oilseeds into fuel. Requested: $5 million. Will get: $778,869.
•Odessa Public Development Authority and Inland Empire Oilseeds: A biodiesel plant in Odessa. Requested: $1.5 million. Will get: $848,102.
•Port of Warden and Washington Biodiesel: A plant in Warden to convert oilseeds to biodiesel. Requested: $2.5 million. Will get: $415,397.
•Port of Warden and Washington Biodiesel: A similar plant in Warden to process glycerin and other byproducts from biodiesel production. Requested: $2.5 million. Will get: $380,780.
For several of the projects, this was the second round of state loans.
Lawmakers dedicated more than $10 million to five projects this winter.