Purpose

The purpose of the Dairy Power Production Program (DPPP) was to encourage the development of biologically based anaerobic digestion and gasification (“biogas”) electricity generation projects on California dairies.  Objectives of the program included developing commercially proven biogas electricity systems that could help California dairies offset the purchase of electricity, and providing environmental benefits by reducing air and ground water pollutants associated with storage and treatment of livestock wastes.

The California Energy Commission (CEC), acting under authority of the Legislative enactment in 2001 of SB5X (Section 5(b)(5)(C)(i)), appropriated and encumbered $9,640,000 for the Dairy Power Production Program (DPPP).  Western United Resource Development, Inc. (WURD) was selected by the Energy Commission as the Contractor for this program.
 
Total grants

The program has funded ten methane digester projects with an estimated generating capacity of 2.5 megawatts. The projects installed to date have herd sizes ranging from 245 to 6,000 head and are located throughout California, from Marin County to San Diego County. Four of these projects are plug flow digesters, five are covered lagoon systems, and one is a modified mix plug flow.  Six of the systems were new installations, and four were refurbishment or expansion projects.  Individual systems have an electricity production capacity ranging from 75 kilowatts to over 550 kilowatts.

A program extension in late 2006 made a second round of funding available for new projects.  Nine more methane digester construction projects were approved through the extended program. New project locations also span the state, ranging from Butte County to Imperial County.  Both free stall and dry lot dairies are represented, with herd sizes range from 300 to 3,200 head. It is estimated the projects will have a generating capacity of 1.33 megawatts when completed by March 31, 2008. The projects include several types of digesters, including six covered lagoons, one plug flow, and two complete mix systems. Most systems will be new; however, the plug flow system will be a refurbishment and expansion. Once completed, individual systems are expected to produce anywhere from 25 kilowatts to 400 kilowatts.
 
Types of funding

Two types of assistance were made available for the grant program: Buydown grants, which cover a percentage of the capital costs of the proposed biogas system, and incentive payment grants for generated electricity. Buydown grants cover up to 50 % of the capital costs of the system based on estimated energy production, not to exceed $2,000 per installed kilowatt, whichever is less. Electricity generation incentive payments are based on 5.7 cents per kilowatt-hour of electricity generated by the dairy biogas system, which totals the same amount of a buydown grant paid out over five years.
 
What is a digester?

A digester is an airtight container that uses bacteria to break down manure. As part of that process, methane gas is produced and used to power electrical generators.
 
Advisory Group

The grant program is overseen by an advisory board comprised of representatives from the California dairy industry; California Department of Food and Agriculture; California Energy Commission; California State Water Resources Control Board; Sustainable Conservation; University of California; and U.S. Environmental Protection Agency AgSTAR Program.

Projects Online

The following projects that are the recipients of DPPP funds are now operational:

Castelanelli Dairy
Cal-Denier Dairy
Hilarides Dairy
Joseph Gallo Farms
Meadowbrook
Straus Family Creamery
Van Ommering Dairy
St. Anthony Farm

Click here to view map provided by the California Energy Commission of Project Locations Under Utility Areas With Transmission Lines