Thursday, August 12, 2004
Cows willing, but power flow slow
By ERIC STERN
BEE CAPITOL BUREAU
August 12, 2004
SACRAMENTO -- During the 2001 state energy shortage, lawmakers passed a $10 million emergency measure to convert methane-packed manure from dairy farms into electricity.
But three years later, only two of the 14 approved projects are up and running -- and that was only in recent months, according to testimony presented Wednesday at a state Senate hearing. In fact, $2.8 million in unused funds was returned to the state.
It wasn't for a lack of interest.
"We have a number of projects that are right on the cusp," said Mike Marsh, chief executive officer of the Modesto-based Western United Dairymen, which helped administer the state grants.
Dairy farmers and biogas operators complained Wednesday of a sluggish response from utility companies to connect dairies to the energy grid. The hearing was a joint session of the Senate Select Committee on Air Quality in the Central Valley and the Senate Energy, Utilities and Communications Committee.
"They don't really support other people in the business," said Mark Moser of RCM Digesters.
He took aim at Pacific Gas & Electric Co. for creating a "dysfunctional" system of red tape that led to long and ongoing delays for dairies still trying to tap into cow power.
"I can't get straight answers out of them," Moser said.
Sen. Dean Florez, D-Shafter, called the hearing to accelerate the projects and criticized utilities for a "cavalier" approach to the biogas concept.
John Busterud, senior environmental counsel for PG&E, responded that his company "strongly supports" methane digesters as an alternative energy source. But he acknowledged, "We have room for improvement in the area of hookups."
Carl Morris, general manager of Joseph Gallo Farms in Atwater, told the committee that a company dairy has been generating manure-based power for the past three weeks -- about eight months behind schedule.
He said it took 16 months of talks with PG&E for approval.
"It's time-consuming and costly," he said.
The state awarded Gallo Farms a $600,000 grant to pay for 50 percent of the project, although cost overruns put Gallo's share closer to 75 percent, Morris said.
"We went way over budget," he said.
Though start-up costs are high, cow power can translate into huge savings: One cow equals two light bulbs, energy experts say.
A covered manure lagoon at the Gallo dairy now provides 25 percent of the energy needed to run a cheese production plant, Morris said.
Morris said he was anxious to get the methane digester operational. With the delays, he said the farm was losing $1,000 a day in potential savings.
Florez said he will hold a similar hearing next year to check on the progress of other dairies trying to set up biogas systems.
Bee Capitol Bureau reporter Eric Stern can be reached at 916-326-5544 or estern@modbee.com.
BEE CAPITOL BUREAU
August 12, 2004
SACRAMENTO -- During the 2001 state energy shortage, lawmakers passed a $10 million emergency measure to convert methane-packed manure from dairy farms into electricity.
But three years later, only two of the 14 approved projects are up and running -- and that was only in recent months, according to testimony presented Wednesday at a state Senate hearing. In fact, $2.8 million in unused funds was returned to the state.
It wasn't for a lack of interest.
"We have a number of projects that are right on the cusp," said Mike Marsh, chief executive officer of the Modesto-based Western United Dairymen, which helped administer the state grants.
Dairy farmers and biogas operators complained Wednesday of a sluggish response from utility companies to connect dairies to the energy grid. The hearing was a joint session of the Senate Select Committee on Air Quality in the Central Valley and the Senate Energy, Utilities and Communications Committee.
"They don't really support other people in the business," said Mark Moser of RCM Digesters.
He took aim at Pacific Gas & Electric Co. for creating a "dysfunctional" system of red tape that led to long and ongoing delays for dairies still trying to tap into cow power.
"I can't get straight answers out of them," Moser said.
Sen. Dean Florez, D-Shafter, called the hearing to accelerate the projects and criticized utilities for a "cavalier" approach to the biogas concept.
John Busterud, senior environmental counsel for PG&E, responded that his company "strongly supports" methane digesters as an alternative energy source. But he acknowledged, "We have room for improvement in the area of hookups."
Carl Morris, general manager of Joseph Gallo Farms in Atwater, told the committee that a company dairy has been generating manure-based power for the past three weeks -- about eight months behind schedule.
He said it took 16 months of talks with PG&E for approval.
"It's time-consuming and costly," he said.
The state awarded Gallo Farms a $600,000 grant to pay for 50 percent of the project, although cost overruns put Gallo's share closer to 75 percent, Morris said.
"We went way over budget," he said.
Though start-up costs are high, cow power can translate into huge savings: One cow equals two light bulbs, energy experts say.
A covered manure lagoon at the Gallo dairy now provides 25 percent of the energy needed to run a cheese production plant, Morris said.
Morris said he was anxious to get the methane digester operational. With the delays, he said the farm was losing $1,000 a day in potential savings.
Florez said he will hold a similar hearing next year to check on the progress of other dairies trying to set up biogas systems.
Bee Capitol Bureau reporter Eric Stern can be reached at 916-326-5544 or estern@modbee.com.
# posted by Senator Dean Florez @ 8:27 AM 
