Canadian Manufacturers & Exporters (CME) is adding to the legacy of the CME SMART funding program. In Fall 2016, CME in partnership with Government of Ontario launched a new $25 million SMART Green fund that will assist small- and medium-sized manufacturers reduce greenhouse gas (GHG) and improve their energy efficiency.
Since 2008, CME has administered approximately $80 million in direct funding to more than 1,400 manufacturing projects across Ontario through various SMART Programs.
Program Overview
The SMART Green Program is open to small- and medium-sized manufacturers throughout Ontario and provides assistance in the form of non-repayable grants of 50% of eligible costs up to $200,000. The program will improve the competitiveness of the Ontario manufacturing supply chain by not only delivering value to the SME-eligible manufacturers but also by contributing to Ontario’s 2020 targets for GHG emissions reduction.
The purpose of this Program is to support investments in technology and process improvements by manufacturers which result in GHG emissions intensity reductions and/or avoidance through upgrades to process/production equipment, deliver energy efficiency, and lead to productivity improvements, which in turn lead to lower GHG emissions on per-production-unit basis; more specifically, where improvements will include new process and/or production equipment installation and associated costs.
NOTE: We are aware of consulting firms, including grant writing firms, who are currently recruiting or seeking to establish preferred vendor relationships with engineering firms for the purposes of providing technical assessments to be included within the scope of a SMART Green program application. Please be advised that CME SMART does not endorse, promote or have any affiliation with these firms.
It is not a requirement for Applicants to work with a consulting firm for the purposes of preparing a SMART application. The only requirement applies to technical assessments and/or M&V reports required for the project funding process which must be provided by either a SMART-approved Qualified Technical Service Provider (QTSP) or by a third party service provider whose credentials match the standards set out by CME for its list of approved auditors.
Working with an external firm for the purposes of preparing an application has no bearing on the success rate of an applicant being awarded a SMART grant. Projects are evaluated on their overall merits and targeted results within the scope of the program’s objectives. Furthermore, any costs associated to the preparation of a SMART application are considered ineligible expenses under the program.
There is no cost to apply of a CME SMART Green grant nor is there a fee for technical consultants to be listed as a SMART Approved Qualified Technical Service Provider. Applicants should be aware that technical assessments performed by consultants who are not listed on the CME SMART Green website may not meet the criteria of the program, as such may not be reimbursed for the services. If an applicant wishes to work with a service provider who is not on CME’s list, the service provider must first submit a request to the SMART Green program to become a QTSP. We highly recommend that applicants contact a CME Technical Program Advisor prior to engaging the services of an engineering or consulting firm who is not listed as a SMART-approved QTSP.
Eligibility
- Manufacturers must be located in Ontario with a minimum of 10 full-time employees.
- The Program targets small and medium-sized manufacturers with annual greenhouse gas emissions under 25,000 tonnes per year.
- Manufacturers who are participating in or have opted into Ontario’s Cap & Trade Program are ineligible to apply for SMART funding.
- Applicant companies must be financially stable incorporated businesses with 3 years or more operating history. “Financially stable” will be generally interpreted to mean the company can demonstrate profitability and a healthy balance sheet in its two most recent year-end financial statements.
- Companies unable to do this may still be eligible to participate in the Program if they can otherwise demonstrate the long-term financial health of the company to CME.
- Applicants must demonstrate financial need for the funding, i.e., without a SMART Program grant, the project would fail to meet a desired hurdle rate/payback timeframe.
- Recipients of previous SMART Programs may apply.
- Companies must be engaged in manufacturing as their primary activity (as indicated by their North American Industry Classification System (NAICS) code), which is defined as:
- An establishment primarily engaged in the physical or chemical transformation of materials or substances into new products. These products may be finished, in the sense that they are ready to be used or consumed, or semi-finished, in the sense of becoming a raw material for an establishment to use in further manufacturing. Related activities, such as the assembly of the component parts of manufactured goods; the blending of materials; and the finishing of manufactured products by dyeing, heat-treating, plating and similar operations are also treated as manufacturing activities.
- This may also include establishments engaged in food processing where the primary activity is the treatment, preparation of food ingredients or the packaging of foods. Excluded from eligibility is the subsector of food production where the primary activity is the raising of livestock and growing of agricultural products for intermediate or final consumption.
Funding Process
Project funding will support two application types: a technical assessment for applicants who have do not have a baseline GHG emission report (via 3rd party), and a project funding application for capital investments.
- Applicants can receive 50% of eligible consulting costs to a maximum of $10,000 for a technical assessment and Measurement & Verification (M&V) work by an approved Qualified Technical Service Provider (QTSP).
- Applicants can receive 50% of eligible costs to a maximum of $200,000 for a qualified capital project.
- The maximum funding per facility for a combined assessment and capital project is $200,000.
- Companies can apply for one project per facility and can include one assessment audit per facility.
- Companies with more than one facility may apply for funding for a maximum of 5 facilities.
- The maximum funding allowance for multi-facility companies will be capped at $500,000, with the maximum funding allowance per facility being capped at $200,000 for a project including assessment audit.
- Where multiple facilities within a company are approved for funding, the company will determine the allocation of the SMART funding amount per facility up to the maximum allowable funding limit.
