A brief overview of the Industrial Assessment Center (IAC) program and its benefits for small and medium-sized manufacturers.

What is the IAC Grant?

The IAC Grant provides small and midsize manufacturing companies with up to $1.2 million annually in grant funding.  (This is for a single applicant.)  These grant funds cover 50% of the costs associated with energy efficiency, productivity, and waste reduction projects. 

For a manufacturing company to become eligible, they must work with an Industrial Assessment Centers (IACs), which are scattered throughout the United States. IACs are university-based teams of faculty and students that conduct energy, waste, and productivity assessments for small and medium-sized manufacturers (SMMs) at no cost to them. The goal of the IAC program is to help SMMs reduce their energy consumption, greenhouse gas emissions, waste generation, and operating costs, while increasing their competitiveness and sustainability.

Who is eligible for the IAC Grant?

The IAC Grant is available for SMMs that meet the following criteria:

·       They have gross annual sales below $100 million.

·       They have fewer than 500 employees at the plant site.

·       They have annual energy bills between $100,000 and $3.5 million.

What are the benefits of the IAC Grant?

The IAC Grant offers several benefits for SMMs, such as:

·       They receive a comprehensive report that identifies energy, waste, and productivity improvement opportunities, along with the
associated costs, savings, and payback periods.

·       They can implement the recommendations with the help of the IAC team, which provides technical assistance and follow-up
support.

·       They can access other resources and incentives from the Department of Energy (DOE), such as the Better Plants program, the
Advanced Manufacturing Office, and the State Energy Program.

·       They can improve their environmental performance, reduce their carbon footprint, and enhance their social responsibility.

·       Finally, there is a 50% recapture of the project costs to implement from the Department of Energy.  (AS mentioned above, up to
$1.2 million per year.)

How to apply for the IAC Grant?

Our firm, EIAG (Economic Incentives Advisory Group), will work with you to complete the following:

·       Find the nearest IAC from the list of 31 centers on the DOE website.

·       Coordinate with the IAC director and request an assessment.

·       Provide basic information about the plant, such as the size, layout, equipment, processes, and energy usage.

·       Schedule a date for the IAC team to visit the plant and conduct the assessment, which typically takes one day.

·       Receive the report within 60 days (about 2 months) and review the recommendations with the IAC team.

·       Implement the recommendations and report the results to the IAC team within six to 12 months.

·       Receive a reimbursement of up to $300,000 per project and $1.2 million annually.

What Type of Projects Are Eligible for Grant Funding at a Rate of 50% of the Costs?

·       Replace existing HVAC unit with High-Efficiency model

·       Replace existing chiller with High-Efficiency model

·       Use solar heat to make electricity

·       Replace existing equipment with more suitable substitutes

·       Install or upgrade insulation on HVAC distribution systems

·       Install adjustable frequency drive or multiple speed motors on existing system

·       Upgrade controls on compressors

·       Purchase optimum sized compress

·       Install insulation on steam lines

·       Install de-aerator in place of condensate tank

·       Utilize High-Efficiency lamps and/or ballasts

·       Replace fossil fuel equipment with electrical equipment

·       Replace obsolete burners with more efficient ones

·       Insulate glazing, walls, ceilings and roofs

Found Money!  What Next?

This is basically a found money opportunity for SMMs that were already going to implement energy efficiency, productivity, and waste reduction projects.  If it was not in your budget, knowing that 50% is covered by grant funding, would this allow you to proceed?

Contact EIAG at (602) 687.7000 to get started.