Iowa Energy Center Press Releases

More than $10 million loaned through AERLP to support renewable energy production facility construction in Iowa

For Release: February 1, 2007

Over $3.8 million was distributed from Iowa’s Alternate Energy Revolving Loan Program (AERLP) in 2006, according to officials at the Iowa Energy Center.

Since 1996, the AERLP has provided approximately $10.5 million in financing for renewable energy production facilities in Iowa. The most recent financing agreements were with ten independent owners of wind turbines that make up the Crosswinds community wind farm in Palo Alto County. Each owner received $200,000 in AERLP zero-interest financing, matching it with financing from a lender of their choice. In addition to AERLP and lender financing, each turbine owner was the recipient of 2002 Farm Bill Title 9006 financing, administered by the USDA.

“It’s proof that Iowans continue to be interested in developing renewable energy options,” said Bill Haman, manager of the AERLP. “The AERLP has proven to be a successful state initiated economic development tool. Since the inception of the AERLP, approximately $140 million in renewable energy production facilities has been constructed in Iowa with assistance from the AERLP zero-interest financing.”

In July of this year, the Energy Center awarded $1.75 million in AERLP financing for seven independently owned wind turbines comprising the Hardin Hilltop community wind farm located in Greene County.

“The AERLP was the difference maker–I’m not sure we could have done the project without it,” said Bill Sutton, one of the Greene County wind turbine owners. “The combination of AERLP financing, USDA grants and the federal and state tax credits made this project cost competitive.”

The AERLP was created by the state legislature in 1996 and was funded by Iowa’s investor-owned utilities. AERLP initial funding totaled $5.9 million, which was collected over a three-year period from 1995 – 1997. Since that time, the program has loaned over $10 million in support of 70 commercial, school, and independent power producer projects – primarily wind turbines and biomass-to-energy projects.

“The nature of the revolving loan program ensures that the funding source will continue to be available to other applicants,” said Haman. “As loans are repaid to the AERLP, that money ‘revolves back’ into the program and becomes available to fund new renewable energy projects.”

The amount of money available at any given time depends on the number of applications, amount of funds requested, outstanding loan balances and the overall repayment rate.
Technical application cycles for projects with a total financed capital cost of $50,000 or less are accepted on a continuous basis. All other application cycles run on a quarterly basis and close on, or the first business day following, October 31, January 31, April 30 and July 31.

The Iowa Energy Center manages the AERLP for the State in addition to its legislative mandate to support energy efficiency and renewable energy research, education and demonstration projects. Visit www.energy.iastate.edu for more information.

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Media contact: Amy Swenson, Iowa Energy Center, swenson@energy.iastate.edu, (515) 294-4391.