Advanced Energy Job Stimulus Fund Explained
Program Details
Authority and Intent
On June 12, 2008, Governor Ted Strickland signed a $1.57 billion bipartisan job stimulus package (HB 554) to create new jobs in the near term while laying the foundation for future economic prosperity.
This bond-funded program creates an Advanced Energy Job Stimulus Fund that is administered through a public process managed by the Ohio Air Quality Development Authority (OAQDA). The Program will award funds to a portfolio of advanced energy projects that serve to attract new investment to Ohio, build upon Ohio's manufacturing strength, advance energy technology development toward commercialization and prepare Ohio's workforce for the future.
HB 554 defines the projects eligible for OAQDA assistance to include advanced energy projects and advanced energy resources. Detailed definitions of eligible advanced energy projects and renewable energy resources may be found in ORC 3706.25 and 4928.621.
In order to fulfill its economic development mission, the Advanced Energy Fund is primarily targeted toward commercialization and production rather than research and development.
Available Funding
The $150 million advanced energy money (over three years) seeks to increase the development, production and use of advanced energy technologies in the state, and is divided in the following manner:
- $66 million for clean coal technology projects administered through OAQDA’s Ohio Coal Development Office (OCDO) (reviewed by the Technical Advisory Committee and approved by OAQDA); and
- $84 million for non-coal-related projects in three $28 million annual appropriations administered by OAQDA (reviewed by the Development Finance Advisory Council, approved by the OAQDA and brought before Controlling Board for final approval).
In addition, the legislation expanded the traditional financing and incentive programs of OAQDA to include advanced energy projects and advanced energy resources as defined above.
Ranges of Awards
As a general guideline, awards will range from approximately $50,000 to $2 million, based on size and scope and on jobs, investments and other impacts and may be considered for higher awards if outstanding potential value is demonstrated.
Additionally, five percent of the fund may be set aside for small awards (generally in the range of $50,000) to support disruptive technologies with significant potential for success, even if they are in earlier stages of development.
For highly qualified applicants, loans could be structured a number of ways including below market rates, subordinate collateralized positions with participating financial institutions and/or varying principal payments for a specified period of time. Again, projects presenting an outstanding value proposition may be considered for higher levels of assistance.
It should be noted that projects receiving assistance through this program may be subject to Ohio prevailing wage requirements. Applicants should review these guidelines carefully.
It is important to understand that -- based on language in the Ohio Constitution -- the Program provides forgivable and non-forgivable loans ONLY. The Ohio Constitution does not allow grant awards for this Program.