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20 July 2011
FOR IMMEDIATE RELEASE

Waste, Fraud, and Abuse Complaint to be filed in Conjunction with Arkansas Poultry Lighting Rebate Program

PLYMOUTH, MN. July 20, 2011 - LED lighting manufacturer, Once Innovations, Inc. (ONCE), is filing a Waste, Fraud, and Abuse Complaint under the American Recovery and Reinvestment Act in connection with a poultry lighting rebate program involving $1.2 million of Federal Stimulus Funds. ONCE claims the Arkansas Economic Development Commission (AEDC) Energy Office is managing the program using recovery funds in an arbitrary and capricious manner and steering rebate-eligible lamps toward specific, pre-selected manufacturers and lamp designs.

ONCE supports offering rebates in order to accelerate adoption of energy efficient LED lighting for poultry production, but has repeatedly expressed concern over inappropriate and incomplete specifications for lamps qualifying for these rebates. Michael J. Ostaffe, ONCE Executive Vice President, stated, “In addition to not requiring minimum power quality standards, the AEDC specifications were technically incompetent. They refused to add safety standards, even though urged to do so several times, an omission that could lead to the potential risk of fire, shock, or other electrical hazards detrimental to birds, farmers, and property. The specifications don’t require, or even reference, basic ANSI, NEMA, or UL standards, as is the norm for commercial lighting projects. Not only that, this is an energy saving program, yet lights that are significantly less energy efficient than CFLs or incandescent bulbs could actually qualify for a 50% rebate based on the minimum requirements published by the AEDC.”

Ron Demshar, ONCE Director of Ag Sales went on to express concerns over the potential risk of farmers having a bad experience if they purchase LED lamps not made specifically for poultry or harsh barn conditions. “None of us can afford to have farmers lose confidence in LED lights for poultry applications due to the actions of the AEDC.”

This is not the first time there have been issues with the program. In January of this year, ONCE challenged the AEDC on its administration and award of the grant on procedural grounds, and argued that any award of federal funds in conjunction with that program would be improper under the Administrative Procedures Act (APA). The company felt, similarly to the current program, that the Invitation for Bid steered the award toward specific, pre-selected manufacturers and lamp designs rarely used in poultry production.

Ultimately, the Office of State Procurement discontinued the Advanced Lighting for Poultry Houses Project Bid for reasons cited by J.D. Lowery, AEDC Renewable Energy Program Manager. In a March 11, 2011 memorandum Mr. Lowery wrote, “It was determined that many of the problems with the initial phase two bid, e.g. insufficient written procedures and incomplete bulb specifications, necessitated the cancellation of this bid.”

As for what farmers should consider when looking for LED upgrades, Mr Demshar offered this practical advice, “Take time to do some research and ask manufacturers about their lamp’s thermal management technology, illumination characteristics, power quality, and dimming capabilities. Also, be sure the companies you’re considering buying from will configure a plan for you that includes number of lamps, fixture height and spacing, calculation of energy savings, and anticipated payback period for your investment. And don’t be shy about asking for referrals. Finally, trust your instincts. If the light looks like it was designed for a home or office application or built to fit into a recessed ceiling fixture, it probably was … and it shouldn’t be placed in your poultry barn.”

Once Innovations (ONCE) is a privately held LED technology development company that makes part of its IP portfolio accessible to companies under licensing agreements while manufacturing highly differentiated LED lighting products – including the AgriShift® line of lamps for specific poultry applications. The ONCE technology research, marketing, and product development campus is located in Plymouth, MN United States of America.

For more information about ONCE, contact
John Moody, V.P. Marketing
763.381.5621 Ext. 705
Email: jmoody@onceinnovations.com
or visit: www.onceinnovations.com