Maine manufacturing facilities are eligible for enhanced incentives to reduce fuel use through this program opportunity notice (PON). Funding is available for efficiency projects that reduce the use of natural gas, oil, biomass and other fuels. Bonus incentives are available for beneficial electrification and heat recovery projects.
For the purposes of this PON, a manufacturing facility is defined as those meeting North American Industry Classification System codes 31 through 33. These are broadly defined as establishments engaged in the mechanical, physical, or chemical transformation of materials, substances, or components into new products, and include categories such as food, beverage, textile, wood products, plastics, chemical, metal, and computer products manufacturing.
An eligible project is a measure or set of measures at a manufacturing facility that increases production thermal efficiency (reduced fuel use per widget produced). Also:
- Incentives awarded under this PON are intended to influence the implementation of projects that the applicant could not implement in the foreseeable future if not for the incentive.
- Projects must achieve a benefit-cost ratio greater than 1.0 using the benefit-cost test administered by the Trust.
- Projects that involve measures required by state or federal law or local building or energy codes, or projects that are deemed by Efficiency Maine to represent standard industry practice measures.
- Projects for which the customer (or its affiliate) has made binding commitments to proceed prior to the official award of funding under the Custom Program.
- Measures that rely solely on human behavior changes or facility maintenance.
- Feasibility studies.
- Fundraising seed money for projects to be completed and funded subsequently.
Incentives awarded through this PON will be subject to the following limitations:
- $100 per MMBtu of annual validated fuel savings.
- For retrofits of existing equipment, incentives will be limited to 60% of the net project cost (i.e., any tax credits and/or grants are deducted from the total cost to derive the net cost).
- For new construction or projects that are deemed a ‘lost opportunity’ by the Trust, such as replacement of a piece of equipment that is at or near the end of its useful life, incentives will be limited to 80% of the net incremental cost as measured between the efficient alternative and the industry standard.
- Beneficial electrification and heat recovery projects may be eligible for an additional 10% cost share.
- Projects awarded an incentive greater than $200,000 will require a formal contract with the Efficiency Maine Trust.