Small Business Energy Cost Reduction program
.(JavaScript must be enabled to view this email address) · (207) 498-8736
P.O. Box 779
Caribou, ME 04736
Description
SBECR
Program components
NMDC proposes to create a grant program that will greatly assist small businesses and small manufacturers in acquiring good information on their energy use and the measures they could take to reduce those costs.
Facilitate obtaining detailed energy audits performed by licensed firms.
Audits would provide information on ROI for proposed improvements
Financial resources for improvements will be identified and communicated to the businesses.
Tracking of improvements that are instituted
Comparison of before and after energy costs attributed to the program.
How it will be delivered
NMDC will use its existing contacts from the Maine Extension Partnership, Leaders Encouraging Aroostook Development, the Aroostook Partnership for Progress and the SBA Small Business Development Center programs, all of which are housed at NMDC, to provide direct outreach for the program.
NMDC staff with backgrounds in energy audit procedures due to their past affiliation with the “Efficiency Maine” program will act as contact points for businesses/manufacturers.
We will work with Efficiency Maine staff to arrange for investment grade audits that will be performed by energy audit professionals contracted for by Efficiency Maine.
Audit agreements between the small business and NMDC will spell out the requirements of the program with a not to exceed cost clause for the business.
We will help the business to interpret the energy audit results and proposed improvements
We will identify and communicate to the business possible financial resources and tax incentives for proposed improvements and will offer small business assistance program services to help review their financial information for prospective loan program applications
Incentives for participation
Participation in the project by small businesses will have several incentives and some commitments;
Program would provide 60% of the energy audit costs with the business picking up the other 40%,
All payments from the program will be direct payment to the third-party energy audit firm.
Business must commit to making 100% of the energy improvements that have less than a 5-year payback and that cost less than $10,000.
Additional energy improvements that have payback periods of more than 5 years, or that cost more than $10,000, will be discussed with the business as to the reasonableness of putting them in place.
Business will agree to provide NMDC with energy cost information for a two year period after any energy improvements are completed.
Benefits of the program
Businesses will have an added reason to obtain good information on their energy uses and to implement cost-effective improvements
Program lifts the burden of the business having to draw up technical descriptions for the RFP and tracking performance.
Businesses will have guidance in judging which improvements make the most sense and in obtaining funding to accomplish them
Tracking of before and after energy costs will provide empirical information on the cost benefits.
Stage of Development: On the Ground
Total Budget: $385,000
Results
Response has been sluggish since the program's inception in early summer 2009. We are making adjustments to the program, such as a further write-down of the audit costs and some grant matching money for the actual energy improvements, in order to obtain better participation by area small businesses.
Last updated by Mike Eisensmith on December 10, 2009