NEWS RELEASE

               CALIFORNIA ENERGY COMMISSION


For Immediate Release: January 13, 1995
For More Info Contact: Rob Schlichting, (916) 654-5159


        ENERGY COMMISSION OFFERS LOW-INTEREST LOANS 
        FOR AGRICULTURAL ENERGY EFFICIENCY PROJECTS


The California Energy Commission is offering low-interest 
loans of up to $150,000 to agriculture operators seeking to 
purchase energy efficient equipment and services.

A total of $500,000 is available at 3.3 percent interest 
through the state's Agricultural Energy Assistance Program.  
Applications for the funds will be accepted on a first-come, 
first-served basis by the Energy Commission in Sacramento 
beginning February 10, 1995.  To be considered, the 
applications must be postmarked no later than April 7, 1995.

The loans will be made to individual farmers or to groups 
interested in implementing energy efficiency programs in 
three targeted areas.  "We're looking for project partners 
who are committed to undertaking demonstration projects, 
using new, commercially available technology already tested 
by the state's university system," said Commissioner Jananne 
Sharpless of the California Energy Commission.

An estimated two to five loans will go to irrigation 
districts willing to install variable frequency drives on 
their electric pump motors.  Variable frequency drives 
minimize wasted energy by allowing electric motors to run at 
a range of speeds. Studies at California Polytechnic State 
University in San Luis Obispo indicate the technology can cut
energy use by 50 percent or more.  

A second area of funding  -- the installation of energy 
efficient electrical motors -- is open to any agricultural 
user.  In a two-year-long project, the Center for Irrigation 
Technology at California State University, Fresno has 
concluded that conventional motor efficiencies range from 82 
to 94 percent.  Premium motors now available offer 94-to-96 
percent efficiency and can save energy to reduce the cost of 
pumping water.  The Energy Commission estimates that 10 to 15
loans could be made to replace electrical motors with more 
efficient models.

Greenhouse operations are the third targeted area of the 
agricultural loan program.  Qualifying efficiency projects 
include the installation of movable insulating and shading 
screens to reduce energy costs and ensure more even
greenhouse temperatures; the conversion of typical greenhouse
heating systems to soil, floor and bench-top designs that 
warm the root zone of plants while allowing the room to be 
kept at lower temperatures; and the replacement of old 
fiberglass roofing with new, double-inflated thermoclear 
sheeting that reportedly reduces energy use by 50 percent.  
Two to five greenhouse projects will likely be funded this 
year.

"Loan programs like this are a good investment for 
California," Sharpless said.  "Each of the new technologies 
can provide substantial energy savings that will help farmers
to control their production costs.  The projects also have 
great export potential, bringing additional jobs to our 
state."

"In 1993, when these types of loans were last offered, the 
number of applications exceeded the available funds," warned 
Sharpless, who recommended that interested parties submit 
completed applications as early as possible.

For loan application forms or more information, contact the 
California Energy Commission, Efficiency Services Office, 
Agricultural Energy Assistance Program, 1516 Ninth Street, 
Sacramento, CA 95814, Attention: Elizabeth Boynton.  The 
telephone number is (916) 654-4089.

News media should contact Assistant Executive Director
Claudia Chandler at (916) 654-4989.


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End of file
Finle Name: 95-01-13_Agriculture Loan