Sustainable dairy digester programs receive $13.8 million Commerce investment

Funding will help reduce methane, wastewater from dairy manure and organic waste

OLYMPIA, Washington – Seven projects in five mostly rural counties, including one tribal community, will receive a total of $13,804,000 to help build, repair and upgrade systems that capture methane from dairy manure and other organic waste, reducing greenhouse gas emissions and improving wastewater management. The funding is from the Washington State Department of Commerce’s Dairy Digester Program.

There’s almost 250,000 cow and goat milk animals in the state, and dairy waste is a significant environmental challenge. Anaerobic digesters, a system that turns manure and food waste into useable energy, help address this issue by capturing methane from manure and other organic waste before it enters the atmosphere. These systems reduce greenhouse gas emissions, improve wastewater management, and create valuable byproducts like renewable energy and nutrient-rich fertilizer. By turning waste into resources, digesters provide environmental benefits and economic opportunities for dairy farms and the rural communities where they are usually located.

“These dairy projects cut emissions and boost the resiliency of rural communities,” said Sarah Clifthorne, interim director of the Department of Commerce. “They’re a smart, practical way to deliver cleaner air and water, while creating new economic opportunities for Washington farmers.”

Projects are expected to improve air and water quality near participating farms, and at least two will create economic opportunities for tribal members. Over the next 10 years, these projects are expected to reduce greenhouse gas emissions by more than 1 million metrics tons of carbon dioxide and capture more than 7,400 tons of waste runoff, helping improve local environmental conditions. Systems that capture methane will also catch harmful waste gases, reducing odors and turning waste into renewable energy.

Awards

• 5D RNG LLC (Franklin County): $2,530,275 for the construction of an anaerobic digester and nutrient recovery facility to reduce emissions and run-off.
• Tulalip Tribes of Washington (Snohomish County): $4,650,000 to upgrade existing digester facilities including wastewater management, construction of a second onsite digester, and a new centrifuge.
• James Road Dairy (Thurston County): $854,325 for construction of a cover-and-flare digester to lower emissions and odors while improving nutrient sustainability from the dairy’s operations.
• FPE Renewables LLC (Whatcom County): $650,000 to upgrade an outdated digester facility, including installation of a new 600-kW engine and coupling, attached generator, heat recovery/management systems, and electrical upgrades.
• Edaleen Cow Power LLC (Whatcom County): $800,000 to upgrade an outdated digester system with a new 750-kW engine, a connected generator, upgraded heat recovery, new electrical breaker, panel and engine monitoring system.
• Promus Energy LLC (Yakima County): $3,500,000 for a dairy digester to generate electricity for EV charging, recover and recycle nutrients, reduce air emissions, and improve water conservation.
• Sunny Dene Ranch LLC (Yakima County): $819,400 for construction of a cover-and-flare digester to reduce emissions and odors and increase nutrient retention from onsite dairy waste.

These investments advance Washington’s commitment to sustainable agriculture and climate action by reducing emissions and managing dairy waste while supporting rural communities. The Legislature appropriated $13.2 million in Climate Commitment Act (CCA) capital funding for anaerobic digester projects. Commerce launched a competitive solicitation in October 2025 and received 10 applications requesting more than $18 million. Additional award funding was provided through remaining Clean Energy Fund resources for rural clean energy development.

There is an additional $9.7 million in funding for dairy digester projects allocated in the 2026 supplemental budget. Commerce will hold another solicitation for digester projects later this year.

Community feedback helped shape opportunity

The program was informed by a 2023 Request for Information by the Washington State Conservation Commission, which gathered input on dairy digester construction, costs, timelines and technologies suitable for Washington’s agricultural conditions. Commerce gathered additional input from public listening sessions, online comments and a 2025 environmental justice assessment. That helped shape elements of the program, including limits on how far dairy waste can be transported to reduce traffic impact.

The feedback also helped Commerce identify cover-and-flare projects as a cost-effective and underused way to reduce methane emissions in Washington, appropriate for smaller dairies. Cover-and-flare is a method of capturing methane emissions in manure storage ponds, which improves the efficiency and effectiveness of the waste management system.

Washington has more than 400 dairies, according to 2021 data from the Washington State Dairy Federation. Dairy is the third-largest agricultural commodity in the state, with a $1.33 billion annual production value. The industry supports more than 40,000 jobs.

Additional funding helps connect producers to research

The program included a $500,00 appropriation to the Washington State University Energy Program. The WSU Energy Program, which is part of the WSU Extension, will provide technical expertise to grantees and others interested in developing dairy digesters in Washington, and will complete work to improve digester performance, advance nutrient recovery so valuable materials can be reused, and strengthen the long-term economic sustainability of on-farm digesters.

“These projects can represent a win-win, turning organic wastes into renewable energy that powers our state, while supporting agricultural viability and benefitting rural communities,” said WSU Energy Program Director Georgine Yorgey.

The WSU Extension has offices in every county in the state, which means that local ranchers and producers can connect quickly with experts who know their communities and their industry.

That connection will reduce barriers to implementation, said WSU Extension Director Vicki McCracken.

“This investment will help ensure these projects deliver meaningful benefits for farms and communities across Washington,” McCracken said. “This support comes at a critical time, helping producers strengthen the sustainability of operations while meeting economic and environmental goals.”