State Programs
Below are some examples of programs that have already
contributed to the Cafeteria Plan as well as links to State Financial
Assistance Program Web Sites.
The NSBFAWG’s ongoing goal is to centrally archive this information
to serve as a standing online working reference for financial assistance
providers. Please contact
Audrey G. Zelanko if
you have any financial assistance program success stories/examples to
add. If you send or email information to share, please include:
description of your financial assistance program (type, funding, etc.),
strengths and weaknesses of your program, any improvements made or that
could be made to make the program better, and proven performance
benefits of the program.
Links to State Financial Assistance Program Web
Sites
Financial Assistance Program Survey Results
Database
Funding Opportunities -- U.S. EPA State and
Local Capacity Building Branch April 2004
directory of funding opportunities for energy
efficiency, renewable energy, and environmental
protection assistance programs.
Kansas Department of
Health and Environment Grant for Small Quantity
Generators
I recently received a grant from the Kansas Department
of Health and Environment for money to serve as a one-time disposal
incentive for SQGs in our service area to use our HHW program for proper
disposal of accumulated wastes, help in procuring proper containment,
and financial assistance in receiving collection service from our
contractor (Philip Environmental Services). There is no match required
from the SQG (who must all be pre-qualified through my office). When
appropriate - SQG waste will be commingled with HHW waste @ the
Lawrence/Douglas County HHW facility. We are targeting SQG generators of
heavy metals as these wastes are considered problematic by our
Industrial Pretreatment Water Quality Manager in Lawrence.
After the one-time incentive monies are spent, SQGs will pay to
dispose of the waste through the HHW Facility. The cost will be our
programs' cost for disposal (via our contract schedule of prices per DOT
class) plus a 15% Administrative fee. They must bring the materials to
our facility - we will not go and pick up wastes.
Here's the text that I've pulled from the grant that may explain it
better:
CESGQ ONE-TIME DISPOSAL INCENTIVE
Ten thousand dollars will be made available to CESQGs (first-come,
first-served basis) for a one-time disposal cost. This incentive money
will not be made available again through the Lawrence/Douglas County
Household Hazardous Waste Program.
Priority will be given to pre-qualified CESQGs with accumulations
greater than their normal CESQG monthly generation. (In Kansas, a SQG is
defined as a business generating less than 55 pounds /25 kilograms of
hazardous waste in any single calendar month or 2.2 pounds / 12 kilogram
of extremely hazardous waste). All businesses will be pre-qualified by
Waste Reduction and Recycling Division staff. Those businesses found to
be Kansas Generators will be referred to KDHE for registration and the
Kansas State Pollution Prevention Institute for non-regulatory technical
assistance.
WR/R staff will coordinate with certified hazardous waste haulers to
schedule "milkruns" as appropriate for drum quantities of CESQG waste.
Containers (DOT approved) will be available for those businesses who
have need of them. Businesses will not have to pay for either the
milkrun collection or container costs for the duration of this incentive
program. (An additional $5,000 has been earmarked through the grant for
container and "milkrun" collection costs).
Mollie Mangerich
City of Lawrence
Waste Reduction and Recycling Division
(785) 832-3030
(785) 832-3056
Minnesota Pollution Control Agency (Small
Business Ombudsman)
The Minnesota Pollution Control Agency’s Small
Business Environmental Improvement Loan Program offers low-interest
loans to small businesses for new equipment purchases that meet or
exceed environmental regulations, and for site investigation and cleanup
projects. Loan amounts range from $1,000 to $50,000 with terms up to
seven years. Interest rates are one-half the prime rate, or four
percent, whichever is higher at the time the loan is awarded. The
program was originally funded through a legislative appropriation. It
currently operates as a revolving loan account.
For more detail on Minnesota’s Small Business Environmental
Improvement Loan Program:
The Minnesota Pollution Control Agency (MPCA) recognizes the fact
that environmental regulations often have a significant impact on small
businesses. As a means to respond to this concern, the MPCA created the
Small Business Environmental Improvement Loan Program to help small
businesses achieve successes with their environmental projects and
goals. The program offers low-interest loans to small businesses for
making equipment or process upgrades that meet or exceed environmental
regulations, and for costs associated with the investigation and
clean-up of hazardous materials. So far the program has been nothing
short of a series of environmental and economic successes for
participating businesses and the MPCA. As a means to illustrate, loans
made to members of the dry cleaning industry were evaluated to provide a
"sector snapshot" of the program's effectiveness. Dry cleaners were
chosen due to the high response rate their industry has had to the
program. The results of the evaluation are summarized as follows.
Since October of 1995, the program has loaned out close to $900,000
for 22 environmental improvement projects at dry cleaning businesses.
The vast majority of these projects have involved new equipment
purchases focused on replacing outdated "transfer" equipment technology.
As a means to measure the effectiveness of these projects, loan
recipients were surveyed a minimum of one year after project completion.
The survey results were impressive. From an environmental standpoint,
average annual solvent consumption has dropped 75 percent, or about 235
gallons per business. Similarly, average annual hazardous waste
generation has been reduced by almost 70 percent. Reductions in water,
natural gas and electricity consumption were reported but not
consistently quantified. Businesses also credited the projects with
improving indoor employee work environments.
Dollar-wise, the reported reductions in solvent usage are saving each
business an average of nearly $2,500 per year in material purchase
costs, while reductions in hazardous waste generation are saving each
business nearly $1,000 per year in handling and disposal fees.
Reductions in water, natural gas and electricity consumption were also
estimated to result in savings of as much as $1,500 per year.
Collectively, the annual cost saving per dry cleaner is believed to be
in the neighborhood of $5,000.With most of the loans to dry cleaners
falling in the $35,000 to $50,000 range, the new equipment purchases are
expected to pay for themselves in 7 to 10 years. This timeframe may be
even shorter given the higher load capacity and greater cleaning
efficiency of the new technology equipment, resulting in increased
production and higher profits margins.
The impacts of these cost savings are further evidenced by the fact
that none of the loans to dry cleaners have gone into default.
Information collected during the loan application process indicates that
dry cleaners are keenly aware of the cost savings possible with the new
technology equipment, and point to them as a means to help them qualify
financially for the loan program. This scenario provides a positive
benefit to the MPCA by providing a reliable, self-perpetuating, and
growing source of funding for the program via monthly principal and
interest payments. The small business community is benefited by the
continued existence of program funds to finance new environmental
improvement projects.
As a brief aside, not all of the information collected during the
evaluations fell into quantifiable environmental or economic categories.
Anecdotal information highlighting positive responses to the program
were also collected. For example, many respondents indicated that they
entered into the program because it was more flexible, and clearly more
affordable than loans offered through traditional lending institutions.
Others indicated that they elected to participate after receiving
environmental compliance assistance from the MPCA’s Small Business
Assistance Program. Many of the respondents indicated that they would
not have conducted their projects without the program, while all of the
respondents indicated that they would recommend the program to other
businesses.
As indicated at the outset, the Small Business Environmental
Improvement Loan Program has been a success from both sides of the
regulatory fence. While somewhat brief, I hope that this "sector
snapshot" has been helpful in illustrating this point. Future
evaluations will be conducted to help monitor the environmental and
economic pulses of the program. These evaluations will be used to keep
the program on course with the needs of the small business community. As
they become available we intend to share them through various forums,
including this web site. In the interim, please feel free to contact me
should you desire additional information regarding the MPCA’s Small
Business Environmental Improvement Loan Program.
State of Ohio, Clean Air Resource Center (Mark
Shanahan)
Ohio offers a tax exemption plan for purchases made
under their Small Business Assistance Program (SBAP) loans, and tax
exemption on the interest collected by the financial institutions making
the loans.
Pennsylvania Department of Environmental
Protection
This revolving loan program makes loans to businesses
with fewer than 100 employees, for pollution prevention (P2) or energy
conservation. New legislation is under consideration to create a "micro
loan" program for start-ups, where no collateral is required, only 2%
interest, and fees are limited to 1%, with seven- year terms, capped at
$50,000 or 75% of total project cost. The loan fund has been allotted $2
million per year for five years.
City of Austin, Texas Program for Gas and Electric
Customers
This information has been provided by Steve Saenz of
the City of Austin, Texas. Steve’s program pays rebates to gas and
electric customers for equipment, or measures to improve efficiency,
such as insulation.
Hydronic heating from water heaters is similar to co-generation,
capturing energy that would otherwise be wasted from heating water, and
using it for other means. In the arena of food service, the City of
Austin pays restaurants assistance to purchase booster water heaters for
dish washing. The small, auxiliary water heaters boost the water
temperature from the main water heaters to that needed for sanitary
dishwashing. This allows the main water heater to be set at a lower
temperature, saving energy and possibly increasing safety. On the
residential side, the City promotes the installation of higher
efficiency water heaters, similar to California standards, reducing
energy demands. All of these measures help to reduce nitrogen oxide
emissions.
Virginia's Small Business Environmental
Compliance Assistance Loan Fund
The Virginia Department of Environmental Quality (DEQ)
has entered into a cooperative agreement with the Virginia Department of
Business Assistance (DBA) to develop and administer a revolving loan
program. Through this program low-interest rate loans are available to
small businesses for the purchase and installation of replacement
equipment needed to comply with the Clean Air Act; or to implement
voluntary pollution prevention measures; or for the implementation of
selected voluntary agricultural best management (BMPs) practices as
listed in the Virginia Agricultural BMP Manual.
Some examples of eligible loan uses include environmental pollution
control equipment, equipment to implement voluntary pollution prevention
measures, or equipment and structures to implement agricultural best
management practices. The equipment must be needed by the small
business to comply with the federal Clean Air Act or enable the small
business to implement voluntary pollution prevention measures or
Agricultural Best Management Practices. Loans may not be used to comply with an enforcement action.
Interest rates on these loans will be fixed at 3%. The maximum loan
amount is $100,000 per borrower and repayment terms will be based
upon the borrower's ability to repay and the useful life of the
equipment, or the life of the BMP being implemented. There is an
application fee of $30.00.
Loans may only be made to qualified businesses defined as small
businesses that meet the definition of a small business found in §
10.1-1197.1 of the Code of Virginia; e.g., the business employs 100 or
fewer people; and is a small business concern as defined in the federal
Small Business Act (15 U.S.C. § 631 et seq.) as amended.
(from
www.deq.state.va.us/osba/finance.html#loanfund)
Francis Campbell
DEQ Office of Financial Management
800.592.5482
King County, Washington
The Local Hazardous Waste Management Program (LHWMP)
in King County (Seattle, WA) has completed a seminar held on behalf of
the newly formed Northwest Dry Cleaners Association. This association
formed out of a previous organization, and joins the Washington State
Korean Dry Cleaners Association in representing the dry cleaning
industry in our county and our State. It has proven valuable to the
LHWMP to work through business associations. In the absence of a trade
association to represent the members of the previous organization, we
decided to provide financial assistance and logistical support for the
creation of the new association. At this seminar, we brought together
the leaders of the two associations to promote cooperation between their
members, and with the involved government agencies. Trevor Fernandes of
the LHWMP was instrumental in this effort. We had presentations at the
seminar, held on October 12, 1999, from representatives of several
agencies involved with small businesses. With us were representatives of
the local air regulatory body, Puget Sound Clean Air Agency; a
representative of the State equivalency of OSHA, Washington Labor and
Industries; representatives of the State environmental agency,
Washington Department of Ecology; and a representative of our extension
of the Federal Small Business Administration, Washington State
University-Small Business Development Center. This powerful seminar
provided a tremendous amount of good information to the associations.
Our efforts were well received, and I would recommend this kind of
multi-agency cooperation in providing assistance to businesses.
King County (Seattle, Washington) provides technical and financial
assistance to businesses that are considered small quantity generators
(SQGs) to assist them to come into compliance with applicable
environmental regulations. The purpose of the Voucher Incentive Program
(VIP ) is to provide financial assistance for these businesses to better
manage their hazardous materials. Field team staff issue vouchers to
SQGs that have implemented the Best Management Practices (BMPs)
specified by the field team staff. The VIP reimburses eligible
businesses for half the cost of their hazardous materials management up
to $500 per business site. The vouchers can cover costs associated with
utilizing hazardous waste transporters, as well as treatment, storage,
and disposal facilities (TSDFs). These costs might include services such
as waste profiling; transportation and shipping; treatment, storage, and
disposal; or recycling of hazardous materials. Vouchers may also be
issued to help pay for the purchase of secondary containment, spill
control, and cleanup equipment, fire suppression or safety equipment,
personal protective equipment (PPE), and education or training pertinent
to the management of hazardous materials. Vouchers do not cover disposal
costs for nonhazardous wastes or services not specified by program field
team staff. Businesses that receive reimbursement must agree to continue
to manage their hazardous waste in a proper, responsible manner.
King County is currently working with the Puget Sound Clean Air
Agency on joint inspections at automotive body shops. If the shops agree
to adopt a certain standard of hazardous materials management, then the
County can help shops attain this standard with Voucher Incentive
Program funds. Shops can then apply to have their air emission permit
fees reduced, and not have to have any local government agency
inspection for a period of time, maybe two years. This is a cooperative
effort that you may be able to practice in your State.
West Virginia, Office of Air Quality
West Virginia provides a low-interest revolving loan
program, with loans made for environmental improvements, pollution
prevention, recycling, or waste reduction. Loans are only provided to
small businesses, with fewer than 50 employees. Amounts loaned range
between $5,000 and $150,000, with the interest fixed at half of the
prime rate but not less than 4%. Collateral and down payments are
required. This program is based on Senate Bill 96.