Edison Innovation Clean Energy Manufacturing Fund - Grants and Loans

Summary

Per the State of New Jersey Board of Public Utilities, the EDA Edison Green Growth Fund Loan closed December 2012

The Edison Innovation Clean Energy Manufacturing Fund (CEMF) is intended to provide assistance for the manufacturing of energy efficient and renewable energy products that will assist Class I renewable energy and energy efficiency technologies in becoming competitive with traditional sources of electric generation. The CEMF is administered by the New Jersey Economic Development Authority (EDA) and is structured to provide grants (Tranche I) and loans (Tranche II) for certain business development activities that further these goals within the State of New Jersey. Applicants may apply for both tranches together or separately apply for Tranche II funds, but Tranche I applicants must also apply for Tranche II funding. The program first opened early 2009, but the most recent solicitation was issued in May 2011. The program is currently accepting applications on an open, rolling basis.

The total amount of available funding is capped at a maximum of $3.3 million per project. A minimum 50% cash match of total project costs is required to be from non-state derived matching funds. This incentive program is directed at commercial manufacturing; prototype development projects are not eligible. Further details of each Tranche are provided below:

Project Assessment and Design Grants (Tranche I)
The CEMF will provide a grant of up to $300,000 for costs associated with site assessment, procurement, and design of an eligible facility. Qualified Tranche I costs may include identifying and securing a project site and obtaining the necessary permits and regulatory approvals. The grant may not exceed 10% of the total amount of funding requested for the project as a whole. Twenty percent of the grant is available up front at the time of closing.

Project Construction and Operation Loan (Tranche II)
A maximum $3 million is available in the form of a ten-year loan at an interest rate of 2% to support site improvements, equipment purchases, facility construction and completion. Repayments begin at the start of the fourth year following the close of the loan. Projects that meet certain milestones may be eligible to convert up to $1 million of the loan into a performance grant.

The CEMF is funded by the state societal benefits charge (SBC), thus proposed projects in municipalities that do not pay into the SBC will not be eligible for funding under this program. The 2012 Board of Public Utilities Clean Energy Budget Order specifies new 2012 funding of $2 million for the program. The overall program budget for 2012 is somewhat larger because it contains unused funds from prior years. In order to be considered for funding, applicants must submit an Eligibility Intake Form. For additional details please see the program web site, which contains the program solicitation, application information, and FAQs.