Frequently Asked Questions
What is the Advanced Energy Job Stimulus Fund?
The Advanced Energy Job Stimulus Program awards loans and/or forgivable loans (for non-coal projects) and loans and/or grants (for coal projects) to qualified advanced energy projects in Ohio. It is part of a $1.57 billion bipartisan job stimulus package designed to create new jobs and boost Ohio’s energy industry.
The Program is administered through a public process managed by the Ohio Air Quality Development Authority (OAQDA). Funds are awarded 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.
In order to fulfill its economic development mission, the Advanced Energy Job Stimulus Program is primarily targeted toward commercialization and production rather than research and development.
What are the guiding principles of the Fund?
Eligible projects must demonstrate that they can:
- Create new fulltime jobs;
- Spark significant investment by other public and private partners;
- Represent a “tipping point” that advances a technology to a higher stage; and
- Strengthen Ohio’s manufacturing base and prepare Ohio’s workforce for the jobs of the future.
What types projects will be eligible for assistance from the Program, and what types will not be eligible?
Eligible advanced energy projects include, but are not limited to, those in fields encompassing:
- Advanced energy resources, such as clean coal technologies, advanced nuclear, fuel cells and distributed and co-generation;
- Renewable energy resources, such as solar, wind, hydro, biomass and geothermal;
- Energy efficiency;
- Edison Technology Centers; and
- University research and development programs.
A complete list of eligible projects can be found in the Ohio Revised Code (ORC), sections 3706.25 and 4928.621 (for non-coal technologies), 1551, and 1555 (for clean coal technologies), and in the Ohio Coal Development Agenda.
In general, eligible projects will be those that:
- Employ proven technologies;
- Produce new systems or products;
- Involve purchase of additional personal property or equipment; and
- Include financial support from other public or private entities.
Ineligible projects would be those that:
- Involve research or studies;
- Entail training;
- Are within the conceptual to demonstration stages; or
- Request 100 percent of project funding from the Program.
How and in what amounts will funds be awarded?
Each component of the Program has specific criteria and guidelines.
The nature of clean coal technology means that projects generally will be larger in size. Historically, the high end of Ohio participation in coal projects has been $5 million.
Non-coal project awards generally 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. 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.
What is the application and award process?
Applications are being accepted now. All applications are to be submitted through the online tool found on the Program’s website. The process will remain open as long as funds are available.
For both non-coal and coal projects, applicants will:
- Create a user name and profile;
- Provide general applicant information; and
- Complete an initial Letter of Intent (LOI).
The Ohio Air Quality Development Authority requires all applicants to submit a Letter of Intent (LOI) that is reviewed to determine whether the project meets the program criteria defined by statute (ORC 3706.25 and 4928.621) and falls within Advanced Energy Job Stimulus Program guidelines and award criteria. Applicants may be asked for additional information or clarification before an eligibility determination is made. Applicants deemed to be eligible will be required to submit an application fee of $750 in order to move forward in the application process. This fee is non-refundable and a signed LOI must accompany the check.
In the case of non-coal projects, The Part 1 Application follows an approved LOI and allows a business, financial and technical evaluation based on guidelines and award criteria, as well as possible in-person interviews and site visits. Again, applicants may be asked for additional information or clarification before a final recommendation is made. The Part II Application involves due diligence on the part of the state and will be the basis for beginning loan negotiations.
For coal projects, applicants will move to a Full Application (Parts I and II) via a downloadable application that must be completed and uploaded to the website for review and comment.
Is any technical assistance or consultation available to applicants during the application and award process?
Yes. OAQDA will provide consultation to applicants throughout the process to advise on eligibility and discuss project details.
What is the timing of awards?
OAQDA began reviewing proposed projects in early 2009. At its May and June meetings, OAQDA authorized the issuance of $150 million in bonds to fund the Advanced Energy Job Stimulus Program.
The clean coal component can be spent over the three-year period of the program. The non-coal component has been given appropriations of $28 million in each of the three years.
How does the program work, and how are the funds allocated?
The Program has two components based upon revenue sources, each with a slightly different process:
- $66 million for clean coal technology projects administered through OAQDA’s Ohio Coal Development Office (OCDO); projects are reviewed by staff and outside experts, then by the OCDO Technical Advisory Committee and approved by OAQDA; and
- $84 million for non-coal-related projects administered by OAQDA; projects are reviewed by staff and outside experts and the Development Finance Advisory Council, approved by OAQDA and brought before the Controlling Board for final approval.
What happens with proprietary and trade secret information?
OAQDA has the authority and responsibility to protect and keep confidential trade secrets and other proprietary information. In the event that the materials or data submitted are deemed to consist of trade secrets or other proprietary information, as defined by the ORC 1333.61 and as set forth in ORC 1555, then only those portions of the document can be kept confidential by OAQDA. It is solely the applicant’s responsibility to conspicuously mark such items. A proposal may be submitted with certain sections labeled as confidential. However, only that information that is deemed to be trade secret under the aforementioned ORC sections shall be required to be kept confidential. Entire proposals or entire pages so labeled shall not be deemed as proprietary and confidential. The public abstract must not contain any trade secret information. Please note OAQDA cannot, and does not, provide confidentiality for any material transmitted via e-mail.
We respect the privacy of your data. Proprietary, business confidential information should not be submitted on-line. It should be submitted in hard copy and an electronic copy on a CD with the confidential information clearly marked. Ohio law does not contemplate designation of an entire proposal as confidential. It is the responsibility of the applicant to precisely and clearly identify information to be held confidential.
Have any projects been approved and received funding from the Program?
Yes. OAQDA authorized funding awards for the following projects submitted for consideration to the Program. You may view project fact sheets here.
Non-coal projects:
- Willard & Kelsey Solar Group, LLC (Perrysburg, Wood County)
Willard & Kelsey was approved for a $10 million loan over two years to assist in the planned expansion of its manufacturing plant. The company manufactures thin-cell photovoltaic solar panels. - Ohio Cooperative Solar (Cleveland, Cuyahoga County)
Ohio Cooperative Solar was approved for a $1.53 million loan over six years to assist the company with the installation of photovoltaic (PV) solar panel modules on the roofs of commercial buildings for customers in the University Circle area of Cleveland. - Schmack BioEnergy, LLC (Columbus, Franklin County)
Schmack BioEnergy (which recently changed its company name to quasar energy group), a full service waste-to-energy company, will receive a $3.06 million loan over seven years for the construction of an anaerobic digester system in Columbus. - Technology Management, Inc. (Cleveland and Highland Heights, Cuyahoga County) and multiple demonstration locations TBD
Technology Management, Inc. (TMI), a developer of modular, solid oxide fuel cell (SOFC) systems, will receive a loan of $2,537,500 over five years to assist in collaboration with Lockheed Martin and Stark State College of Technology. - Wayne Trail Technologies, Inc. (Fort Loramie, Shelby County)
Wayne Trail will receive an $838,440 loan over five years to assist in the establishment of a unique manufacturing process used in lithium-ion battery packs – the type of batteries used to power hybrid electric vehicles. - Westerman Nuclear LLC (Bremen, Fairfield County)
Westerman Nuclear was approved for a five-year loan in the amount of $2.04 million for the construction of a new manufacturing facility to supply components to the nuclear industry in the U.S. and around the world. - Xunlight Corporation (Toledo, Lucas County)
Xunlight Corporation will receive a loan of $4.06 million over five years to significantly expand its capacity for manufacturing its amorphous silicon thin-film photovoltaic modules.
- Cool Containers, LLC (Marietta, Washington County)
Cool Containers will receive a loan of $235,870 to expand its manufacturing facility and equipment production of the PharmaPort 360 - a cold-chain cargo container that can be used for the air transport of pharmaceuticals and other materials that require ultra-low temperature refrigeration.
- Buckeye Silicon (Toledo, Lucas County)
Buckeye Silicon will receive a loan of $1.4 million to install and operate one reductive combustion process manufacturing system to supply the solar cell production and wafer production industries.
Coal projects:
- AMP (Letart Falls, Meigs County)
THIS PROJECT WAS WITHDRAWN AT THE REQUEST OF THE APPLICANT - InSeT Systems LLC (Beallsville, Belmont County)
InSeT Systems will receive a grant of $330,586 to assist in the expansion of the company’s patented Internal Sensor Tracking system, which provides the capability of real-time tracking of miners working in underground mines. - The Ohio State University Research Foundation (Columbus, Franklin County)
The OSU Research Foundation Coal Combustion Products Extension Program will receive a $324,717 grant to continue work within this program. - The Ohio State University Research Foundation (Conesville/Brilliant, Coshocton/Jefferson Counties)
The OSU Research Foundation will receive a $1,436,035 grant to continue work on its project entitled, ‘Reclamation of Ohio Coal Mine Sites using FGD Byproducts: Phase II Demonstration Projects.’ - The Ohio State University Research Foundation (Columbus, Franklin County)
The OSU Research Foundation will receive $3.2 million for a pilot project to demonstrate a method for producing hydrogen from coal syngas and a stream of CO2 suitable for sequestration. This grant provides matching funds for a $5 million US DOE ARRA grant as a part of the ARPA-E Program. - Touchstone Research Laboratory (Wooster, Wayne County)
Touchstone will receive $108,698 for a pilot project to demonstrate that waste heat and carbon dioxide from the flue gas of a coal-based boiler at Cedar Lane Farms can be used in a year-round algae production process to produce a transportation fuel and electricity. The grant provides matching funds for $538,574 in funds provided by the U.S. Department of Energy National Energy Technology Laboratory.
I qualify for funding under ORC section 4928.621 (Creating an advanced energy manufacturing center) but I haven’t seen a stand-alone RFP yet. What is the status of the RFP?
After legal review of the program, these funds cannot be used for grants. Stand-alone RFPs will not be released.
Why was OAQDA chosen to administer this Program?
Part of the core mission of OAQDA since its inception has been to provide financing for projects aimed at promoting clean air and reducing air pollution in Ohio. As home to OCDO, OAQDA has led Ohio’s efforts to help finance and support clean coal technology research, development and deployment. In January 2007, OAQDA Executive Director Mark R. Shanahan was named to serve as the Governor’s Energy Advisor. The choice of OAQDA to administer the Advanced Energy Job Stimulus Program is a natural outgrowth of the agency’s history and expanding mission.
What are the fees and expenditures associated with the Advanced Energy Job Stimulus Program loan and forgivable loan closings?
Amount of Loan |
TOTAL Customer Fee Based on the Percentage of Loan Proceeds |
| $200,000 - $600,000 | 3.00% |
| $600,001 - $1,000,000 | 2.50% |
| $1,000,001 - $2,000,000 | 2.00% |
| $2,000,001 + | 1.5% |
Annual Servicing Fee
Loan servicing includes the monitoring of loan performance and the reporting that is necessary for effective portfolio management; the annual servicing fee includes communication with borrowers through mail, phone and electronic means. This service commences once the loan is booked and loan payments made by borrowers are expected to be received quarterly. The annual servicing fee is $1600 for performing loans and $3200 for non-performing loans.
What is ‘takeout financing?’
The Advanced Energy Job Stimulus Program is designed to fund fixed assets - that is, hardware and equipment and not working capital or operating capital. In a takeout financing scenario, an applicant receives financing from their bank and all or a portion of the bank financing is replaced with Advanced Energy Job Stimulus Program funds at closing. Closing occurs when the fixed assets are purchased and in place.
I have a question the Advanced Energy Job Stimulus Program. Who do I contact to answer my question?
For non-coal technology questions, submit your inquiry by clicking on the 'contact' link here.
For coal technology questions, submit your inquiry by clicking on the ‘contact’ link here.