Financing Programs - Edison Innovation Clean Energy Manufacturing Fund (CEMF)

Applications for CEMF are now being accepted in an open, rolling process.  Applications will be reviewed on a first-come, first-serve basis.  Please note that financing under CEMF is subject to available funding.

IF YOU ARE: A qualified manufacturer of Class I renewable energy or energy efficiency systems, products or technologies.

YOU MAY BE ELIGIBLE FOR: Up to $3.3 million in grants and loans through the Edison Innovation Clean Energy Manufacturing Fund (CEMF) program.

TO BE USED FOR: Project assessment and design, and project construction and operation, associated with a new manufacturing line or the material expansion of an existing line of a New Jersey manufacturing facility.

PROGRAM DETAILS: Funding is available under two separate components:

  • Project Assessment and Design Grant – Up to $300,000, not to exceed 10% of total CEMF project funds requested, is available as a grant to assist with the manufacturing site identification and procurement, design, and permits. Twenty percent of the grant is available up front as seed funds at closing.
  • Project Construction and Operation Loan – Up to $3 million is available as a 10-year, 2% interest loan with repayments to start at the beginning of the fourth year, to support site improvements, equipment purchases, and facility construction and completion. One-third of the loan, not to exceed $1 million, may convert to a performance grant if business and technology-based milestones specific to each company are met during the first three years. No more than one-half of the funds may be advanced prior to commercial production on the manufacturing line.

Please note that the terms are subject to change.

ELIGIBLE TECHNOLOGIES:

  • The energy efficiency products proposed for manufacturing are limited to those which conserve the end use of gas or electricity.  Energy efficiency equipment and technology that reduce electric or natural gas consumption, such as furnaces, boilers, and air conditioning systems with higher efficiencies than adopted New Jersey building energy codes or federal or New Jersey appliance standards, as well as lighting systems, including LED lights and energy monitoring and control systems would qualify.  Products that improve the efficiency of electricity or gas generation, transmission or distribution are not eligible.
  • Products manufactured for Class I renewable energy, such as photovoltaic, solar, wind energy, renewably fueled fuel cells, wave, tidal, renewably generated hydrogen, sustainable harvested biomass, and methane gas from landfills.
  • Other manufactured technologies or equipment that can demonstrate their integral nature to the development of Class I renewable energy and energy efficiency technologies, including “balance of system” technologies that produce or support the production of renewable or clean electricity generation.

Please note that power plant projects, including those that use biodiesel and ethanol as fuels, are not eligible under this solicitation nor are proposals that produce fuels or feedstocks. CEMF is not intended to finance facilities that will produce renewable electricity from these technologies in any form, such as the installation of solar photovoltaic panels at a facility.


REQUIREMENTS:

  • Products manufactured contribute to the cost-competitiveness of renewable energy and energy efficiency in New Jersey, and other tangible ratepayer benefits, such as economic development and environmental benefits, from either the production or the direct use of the company's products.
  • Preference will be given to those projects that demonstrate a greater percentage of the project being designed, manufactured, processed, assembled or made ready for commercial sale at the company's project facility within New Jersey.
  • Company must be a for-profit entity and may include corporate joint ventures.
  • Company must plan to manufacture eligible products in New Jersey and be entering or expanding within the manufacturing stage of commercial (not prototype) development.
  • The loan is subordinate in collateral position to the company's existing senior debt.  A subordinate mortgage may be required to secure the CEMF financing if the applicant or related party is the owner of the real property housing the manufacturing financed.
  • Applicant must have a full-time management team who works only at the applicant company and consists of W-2 employees.  The full-time W-2 management team must include at least one individual with applicable manufacturing industry operating experience (to be detailed in supplied business plan).
  • A minimum 1:1 cash match of total project costs from non-state grants, loans, or equity, is required for both CEMF components.  Company may apply prior to receipt of other funding commitments.  If the required matching funds are not reported on the applicant's balance sheet at the time of application, a written letter of interest (LOI) must be provided for the 1:1 cash match.  In order to be acceptable, the LOI must contain the basic terms of the proposed financing including form (equity, debt, or grant), repayment (if applicable), and proposed collateral (if applicable). The LOI must be converted to a funded commitment for the transaction closing and evidenced by bank statement or other applicable documentation.
  • Must comply with financial reporting and annual audit requirements (see FAQs document for further details).
  • Construction projects will be subject to prevailing wage requirements pursuant to P.L. 2009, c. 203,  which  amends P.L. 2009, c. 89, as well as the prevailing wage regulations promulgated by the New Jersey Department of Labor and Workforce Development pursuant to P.L. 1963 c. 150 as amended, and N.J.A.C. 17:27 and Affirmative Action rules.

APPLICATION PROCESS:

  • Interested parties are required to contact a Business Development Officer at the EDA prior to submitting an eligibility intake form for preliminary technical review.  Should the EDA notify the applicant that it has met its pre-screening criteria, the applicant will be asked to submit a full application. Applicants that submit a complete application package and meet the evaluation criteria, as stated within Section 4F of the Solicitation, will be asked to make a project presentation to a Clean Technology Advisory Committee comprised of EDA, BPU, and representatives from other government entities and industry volunteers with energy efficiency and/or renewable energy and business technology subject matter expertise.  The Clean Technology Advisory Committee will review and advise based upon the applicant's presentation and ability to meet the evaluation criteria within Section 4F of the Solicitation.  The EDA will administer the underwriting, closing and disbursement of funds to the Awardees.

FEES*:

Division of Taxation Tax Clearance Certificate Application Processing Fee: $75 for standard processing; $200 for expedited processing (response within three business days)

For more program details, follow the links below, contact EdisonCEMF@njeda.com or call 866-534-7789.

*All fees are non-refundable.

 

Updated 11/26/2012