Western New York Greenhouse Owner Back on his Feet Thanks to New York Power Authority

One of the Zittel greenhouses.

Amos Zittel & Sons, a large Buffalo-area farm, has rebuilt two acres of greenhouse space destroyed in a severe snowstorm, using funds from the New York Power Authority to help support 30 jobs.

New York Power Authority provided $380,000 for the $2.5 million project from money authorized by the Western New York Power Proceeds Act. 

It allows for net earnings of unused power from the authority's Niagara Power Project to be sold into the wholesale electricity market in order to spur capital investments and job creation in Western New York.

“This is precisely the result that Governor Cuomo had in mind when he signed the Proceeds Act in 2012,” said power authority President an Chief Executive Officer Gil C. Quiniones.

“Proceeds funding allows for NYPA to be a more flexible economic development engine, turning power earmarked for the region into dollars that can be used in ways power alone cannot,” he said.

Amos Zittel & Sons, a fresh market vegetable producer with a significant greenhouse operation, has finished building state-of-the-art greenhouses that will allow the farm to be more competitive with its rooted liner and finished annual flower business. In addition, the farm plans to extend its vegetable growing season this fall by producing an organic vegetable crop.

Zittel had applied for the money following a crippling 2014 storm that destroyed two large greenhouses. The new project will facilitate the retention of 25 jobs and the creation of five new positions.

“The Power Authority’s support of our business enabled us to build back our greenhouse operation and make it more energy efficient than ever,” said co-owner Bill Zittel. “We want to thank NYPA for providing financial aid at such a critical time.”

Under the Proceeds Act, eligible applicants must be located within a 30-mile radius of the Niagara project and their proposed initiatives must underpin the growth of a business. 

Consideration is also given to how providing the money would be consistent with the strategies and priorities of the Western New York Regional Economic Development Council. 

Power authority trustees have approved about $32 million in power proceeds funding for 36 Western New York enterprises.

Deadline July 1 to Apply for Agricultural Discount Programs from Energy Companies

Here is some information about the New York Power Authority Residential Agricultural Discount Programs.

Thanks to Jay Matteson of Jefferson County Agricultural Economic Development for passing this along.

Recently, Jefferson County Economic Development sent out a reminder for farms to re-apply for the New York Power Authority Residential Agricultural Discount Program.
Several farms contact our office inquiring about the program so we contacted National Grid for assistance. Below is information about the program. Even if you had not applied previously, you may still apply. The deadline is July 1, 2016. --- Jay Matteson

Are You a National Grid, NYSEG or RG&E agricultural customer? 
If you are, you may be eligible to receive a monthly discount on your electricity delivery bill beginning Sept. 1, 2014. This discount is possible thanks to funding from the New York Power Authority’s (NYPA) ReCharge NY program for National Grid’s, NYSEG’s and RG&E’s Residential Agricultural Discount programs.

Do I qualify for the discount? 
You’re eligible to receive the discount if you meet the two conditions noted below: 
1. You have an active residential electric service account with National Grid, NYSEG or RG&E billed under the following service classifications: – National Grid: Rates beginning with Electric SC1 or Electric SC1C; refer to page 2 of your bill. – NYSEG: 12001, 12008, or 12012 noted after Electricity Rate on page 3 of your bill. – RG&E: PSC 19 SC1 or SC 4 noted after Electricity Service on page 3 of your bill.
2. You have submitted IRS Schedule F (Form 1040) - Profit or Loss From Farming (supporting documentation) with your most recently filed federal tax return.

How do I apply? 
By completing a Residential Agricultural Discount application and submitting it to your utility company along with your supporting documentation. 

Where can I obtain an application and how do I submit it? Applications are available on your utility’s website – refer to contact information below. You can submit your completed application and supporting documentation by email, fax or mail – details are available on the websites. https://www1.nationalgridus.com/files/AddedPDF/…/RAD_App.pdf complete the application and mail it to Niagara Mohawk d/b/a National Grid, 300 Erie Blvd. W., Syracuse, 13202. If anyone has any questions, they should contact Jason Eno at (315) 428-6533.

How much is the discount, how is it calculated and how is it reflected on my bill? 
The discount amount will be calculated each month and will vary based on how many people participate, the amount of electricity used by each participant and available funds from NYPA. The discount amount is then multiplied by your monthly billed kilowatt-hours and your discount will appear as a credit in a separate line item, “Res agricultural discount,” on your utility bill.

When does the discount begin? 
The 2014-2015 discount begins with meter readings on or after Sept. 1, 2014. However, it’s important to submit your application by July 1, 2014 to start receiving the discount in September 2014.

Can I apply after the July 1, 2014 deadline? 
Yes. Applications will be accepted after July 1, 2014; however, such applications may not be processed until after the Sept. 1, 2014 start date. Please allow up to three months for processing. The discount is not retroactive.

How long will the discount be available? 
The program will be administered on an annual basis, Sept. 1 through Aug. 31, with the monthly discount provided until funding is no longer available through NYPA. It’s necessary to reapply by July 1 each year to determine continued eligibility.

For more information about the Residential Agricultural Discount program, contact your utility company:
Website: www.ngrid.com/resagriculturaldiscount Call: (800) 642-4272, Monday through Friday, 7 a.m. to 7 p.m.

Website: www.nyseg.com (click on “Your Business,” then on “Residential Agricultural Discount.”) Call: (800) 572-1111, Monday through Friday, 7 a.m. to 7 p.m.
 
Website: www.rge.com (click on “Your Business,” then on “Residential Agricultural Discount.”) Call: (800) 743-2110, Monday through Friday, 7 a.m. to 7 p.m.

State Makes $20 Million Available for Dairy Programs

From Gov. Andrew Cuomo's office:

Nearly $21 million is being made available to farmers in New York state to help them produce renewable energy and improve their business operations.

Gov. Andrew M. Cuomo said Tuesday the money will help dairy farmers convert farm waste to energy and develop individualized business and environmental plans to reduce operating costs and increase profitability. 

The funding for these efforts stem from recommendations made at Cuomo’s Yogurt Summit in 2012 to ensure the industry continues to grow and create jobs in New York state. 

In his 2014 State of the State Address, Cuomo pledged a second Yogurt Summit to identify additional economic growth opportunities within this growing sector of the economy. 

“The state is committed to creating new economic opportunities for our dairy farmers, who have helped make New York the Yogurt Capital of the nation,” Cuomo said. “With this funding, we are providing significant financial assistance to farmers so they can cut their energy costs, increase efficiencies in their operations, and develop plans to expand their businesses and contribute to cleaner communities."

Here is what is planned:

Waste-to-Energy Anaerobic Digesters

Starting Jan. 17 (Friday), $20 million will be available through NYSERDA to install anaerobic digester technology that produces renewable biogas used to produce electricity and heat from organic wastes. 

Farms, food processing manufacturers or municipal wastewater sites would be eligible for up to $2 million per project.

Biogas-to-power technology has several steps. Dairy manure and other organic wastes are pumped into digestion tanks where bacteria break down the waste, creating a methane-rich gas called biogas and a nutrient-rich effluent that can be applied to crops as fertilizer. The biogas is burned in engines to produce electricity and heat. 

Through this process, farmers can often eliminate a significant portion of the electricity they would otherwise purchase from the utility grid, and periodically export surplus electricity onto the electrical grid in exchange for credits. Furthermore, farmers can realize operational savings in other areas as well.

During the past 10 years, NYSERDA and the New York Power Authority have awarded nearly $30 million toward anaerobic digestion projects and related technology, resulting in significant energy savings to New York-based businesses while reducing the use of fossil fuel. 

Currently, this funding supports 20 operational digester projects. The digester technology funding will be available on a first-come, first-served basis for eligible projects. 

Dairy Acceleration Program

Funding for the Dairy Acceleration Program (DAP) will be increased by $850,000, which is in addition to the $1 million announced by the governor this past August. 

DAP is jointly funded by the Department of Agriculture and Markets and DEC. DAP is resonating very positively with dairy farmers across the state, most with herds of fewer than 300 cows. 

Combined with some funding still available under the current program, this new funding will serve at least 100 more dairy farms across New York. 

Payments under DAP may include: up to $5,000 per farm to write a business plan or develop a combination of a business and facility growth plan; and up to $4,500 to update an existing Comprehensive Nutrient Management Plan (CNMP) or $6,000 to develop a new one. 

Additional funds also will be available to design farm practices described in CNMPs. CNMPs are a conservation system for animal feeding operations designed to address soil erosion and water quality concerns. 

The CNMP encompasses the storage and handling of manure as well as using and applying manure nutrients on farm land. Through DAP, the state awarded dozens of projects already for farms with an average herd of about 140 cows. 

Business planning may include financial analysis, farmstead development planning, facility planning and capital investment planning for increased milk production per cow. Environmental planning includes CNMP development and updates. Farms without an existing CNMP can hire a certified Nutrient Management planner to develop a new CNMP.

To be eligible for DAP, a dairy cattle farm must have complete financial records. Preference will be given to farms with fewer than 300 cows. DAP funding will cover up to 80 percent of a project’s cost.

To apply for DAP, visit http://ansci.cornell.edu/prodairy/dairy_acceleration/.