Contact Information

  • Governor's Office, 360-902-4111

  • Alt Contact:  Department of Agriculture: Jason Kelly, 360-902-1815

Governor Gregoire Delivers $6.4 Million to Washington Bioenergy Projects

For Immediate Release: July 2, 2007

Loans awarded to Spokane County Conservation District, South Yakima Conservation District, Port of Sunnyside and Odessa Public Development Authority

OLYMPIA � Governor Chris Gregoire today announced that Washington has signed agreements with four local agencies to provide an additional $6.4 million in low-interest loans for bioenergy production facilities.

�What better way to celebrate Independence Day than to deliver funding for home-grown energy projects,� said Governor Gregoire. �These loans provide new economic opportunities for Washington farmers, protect our environment, create jobs in smaller Eastern Washington communities and reduce our dependence on imported oil. What started as creative thinking and innovative problem-solving on our state�s energy needs is becoming a growing industry.�

The loans are awarded to projects with demonstrated long-term financial viability, job creation and benefits to the economy and environment. Loans have been awarded through a competitive application process and to projects specified by the Legislature. The local public entities are collaborating with private companies to develop the energy production facilities.

The four projects that received funds in June 2007 are:

  • Spokane County Conservation District � $2.6 million. The conservation district is working with Palouse-Bio, LLC to construct an oilseed crushing and biodiesel production facility.
  • South Yakima Conservation District � $2 million. The conservation district is working with George Deruyter Farm to construct an anaerobic digester that will turn dairy waste into methane fuel for electrical generation.
  • Port of Sunnyside � $750,000. The port is working with Natural Selection Farms on an oilseed crushing facility to produce oil that will be used in biodiesel production.
  • Odessa Public Development Authority � $1 million. The agency is working with Inland Empire Oilseeds on an oilseed crushing and biodiesel refining facility. The facility has already received $3.3 million in loans through the program.



These four projects, and a biodiesel facility at the Port of Warden, have received $13 million in loans from the Energy Freedom Loan Program in the past year. The loans were proposed by Governor Gregoire as part of her 2006 supplemental budget and subsequently approved by the Legislature. The Washington State Department of Agriculture conducted the contract negotiations that will ensure the repayment of the loans.

The low-interest loans were available to local governments, ports and other public entities and were intended to leverage additional private financing. Matching funds were required to cover at least one-half of the project�s total cost. The Energy Freedom Loans have a 10-year term with a one-percent annual percentage rate.

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