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The Clean Energy Manufacturing Program will provide financing through a combination of the state and federal stimulus funding: the Energy Commission's existing Alternative and Renewable Fuel and Vehicle Technology Program ($59.5 million) and the State Energy Program (SEP) Clean Energy Business Financing Program ($30.6 million) funded through the American Recovery and Reinvestment Act of 2009 (ARRA). This program encourages the production and manufacture of energy efficiency and renewable energy components; systems and technologies; alternative and renewable fuels; and vehicles and vehicle components.
The two programs will provide financial support for businesses; public-private partnerships; and technology developers, fleet owners, academic institutions, consortia, and collaboratives through a variety of financial mechanisms. These include grants, loans, loan guarantees, tax-exempt financing, production incentives, and credit enhancements.
Clean Energy Business Financing Program Evaluation
Findings and Analysis
Publication # CEC-600-2012-007, posted November 15, 2012 (PDF, 70 pgs, 2.9 mb)
The Clean Energy Business Financing Program uses ARRA State Energy Program (SEP) funds to provide $30.6 million in low-interest loans to eligible applicants that improve or expand their energy efficiency or renewable energy manufacturing facilities in California.
The Clean Energy Business Financing Program will leverage private capital and other funds and incentives to maximize benefits for Golden State-based businesses. Applications will be competitively awarded until all funds have been exhausted.
The Energy Commission is working with the California Business, Transportation and Housing Agency, and four Financial Development Corporations (FDCs) located statewide that will evaluate applicants' financial qualifications and manage the loans. The participating FDCs are:
Loans to qualifying applicants will range from $50,000 to a maximum of $5 million and may be used to expand existing or retool facilities or the manufacturing of eligible energy efficiency or renewable energy products, components, systems, and technologies. Loan funds are also available to successful applicants for projects generating either new production or expanded production of biomethane gas from biomass that is direct-injected into natural gas transmission lines.
Successful applicants will meet program requirements and lending qualifications. Projects must demonstrate program success, leverage other project funds, demonstrate profitability, and show California job creation and/or retention.
To be considered for review, completed applications must be submitted to the Energy Commission by 5 p.m. on May 6, 2010.
The Energy Commission created the Alternative & Renewable Fuel Technology Program (under Assembly Bill 118 [Núñez, Chapter 750, Statutes of 2007]) to develop and position alternative and renewable fuels and advanced transportation technologies that will advance California towards meeting the state's climate change goals. The program's annual budget of approximately $100 million supports projects that include:
The Clean Energy Manufacturing Program offers four AB 118-funded vehicle manufacturing and renewable fuel production solicitations in 2010.
Biomethane Production ($21.5 million). This solicitation focuses on the design, construction and operation of new biomethane facilities. Applications for the program were due November 25, 2009 and the Energy Commission staff is reviewing 25 proposals from public agencies, vehicle and technology entities, businesses and public-private partnerships, and academic institutions and will be awarding the grants by the second quarter 2010. Projects are expected to start construction in Summer 2010.
Ethanol Production Incentives ($6 million). Financial incentives will re-start idle corn ethanol production facilities by providing price assurance to the plant owners. Participating facilities commit to reducing their greenhouse gas emission starting in the third year of receiving funds.. Solicitations targeted at existing California corn ethanol producers will be released April 2010. Projects are expected to start plants in Fall 2010.
Vehicle and Component Manufacturing ($19 million). This solicitation will fund projects that improve, modify or expand existing California vehicle and component (such as electric vehicles and batteries) manufacturing facilities or activities. Solicitations will be released April 2010 for public agencies, vehicle and technology entities, businesses and public-private partnerships to apply. Projects are expected to start construction in Fall 2010.
Advanced Biofuel Production ($13 million). Funding is available for the design, construction and operation of new California refineries that will produce ultra-low carbon biofuels. Solicitations will be released April 2010 for public agencies, vehicle and technology entities, businesses and public-private partnerships to apply. Projects are expected to start construction in Fall 2010
Clean Energy Business Financing Program: CEBFP@energy.state.ca.us
Alternative & Renewable Fuel Technology Program: AB118@energy.state.ca.us
Information on the Energy Commission's AB 118 programs is available at: www.energy.ca.gov/altfuels/
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