 Have you considered how your
business might contribute to air pollution? Every person and business – even
small businesses – contributes to the often nasty mix of chemicals emitted in
our air every day. Now there is an exciting opportunity to clear the air and
help make Minnesota a healthier place to live. The MPCA has $320,000 in grant
funding for small businesses interested in reducing emissions of volatile
organic compounds (VOCs) from their facilities. The grants can help pay for changes
to manufacturing processes and chemical usage, as well as facility-wide
opportunities such as reducing vehicle miles traveled, purchasing low-VOC
supplies, and improving energy efficiency.
Proposals are accepted through August 13, 2014. A wide variety of eligible costs will be
considered. Businesses are encouraged to apply for any project that directly or
indirectly reduces VOC emissions.
Background
VOCs
are emitted from many industrial and commercial processes used in businesses
all around us. You may recognize them as the solvent-like fumes coming from
coatings, inks, solvents, adhesives, gasoline, or other chemicals used in
everyday commerce. They are
released when fuels are burned in cars, trucks, generators, lawn mowers,
machinery and recreational equipment. VOCs can also be released from the
storage and transportation of chemicals and fuels. When
these VOCs are released into the air, they can be chemically transformed into
ground-level ozone, which is a component of smog and is a harmful air
pollutant. Some common business sectors emitting VOCs are trucking companies, dry
cleaners, auto body shops, print shops, and gas stations.
There is a growing acceptance
that a non-regulatory approach to VOC reductions can go a long way toward making
our air cleaner. The 2013 Legislature appropriated funding for assistance to
businesses wishing to engage in facility-wide VOC reduction projects. The
recently published Clean Air Dialogue Final Report: A
Collaborative Plan to Reduce Emissions
is the groundwork for the MPCA’s planned activities to address VOCs.
Why
reduce your VOC emissions?
Your
workplace will have better indoor air quality. Indoor concentrations of VOCs
can be up to ten times higher than outdoor air.
Acute
exposure can cause eye, nose, and throat irritation, and headaches, nausea and
dizziness.
Chronic
exposure can increase cancer risk and damage to the liver, kidneys, and central
nervous system.
Reductions
can help you save money:
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Use and buy fewer
chemicals.
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Implement modern technology and more-efficient methods.
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Improve worker health, productivity, and retention.
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Avoid regulatory obligations and
associated costs.
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Use less protective equipment.
As
federal mandates become more rigorous, Minnesota is at risk of not meeting air
quality standards. Such “non-attainment” status would trigger costly new
regulations for everyone. Reducing VOC emissions voluntarily before that
happens will help Minnesota businesses save money by avoiding these regulations.
Stay in the loop. Receive
notifications on upcoming grant and technical assistance opportunities here.
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The Minnesota Pollution Control Agency (MPCA) recognizes that environmental issues often have a significant financial impact on small businesses. Coming up with the initial funding to purchase equipment that meets regulatory obligations or goes beyond what the regulations require can be a barrier to making environmental changes in the shop. This might be a good option for the smaller business with capital improvement needs that do not qualify for the Environmental Assistance grants.
Some examples include dry cleaners switching to a less hazardous solvent or auto body shops wanting to switch from a solvent-based to a water-based coating system. For long haul truck drivers, idling emissions can be reduced by purchasing auxiliary equipment. For other companies it might mean financial assistance to investigate or clean up contaminated sites.
Businesses benefit in many ways from the projects possible with the loan program. Common benefits include reduced worker exposures, lower costs for waste disposal fees and reduced regulatory burdens. Businesses may also find that through pollution prevention efforts they may qualify for simpler environmental permits or licenses. Frequently, these benefits also have a positive impact on the business bottom line.
Eligibility
Many different types of businesses are eligible to receive loans through the MPCA Small Business Environmental Loan Program. To qualify, a borrower must:
be an existing small business corporation, sole proprietorship, partnership or association and have less than 50 full-time employees, have an after-tax profit of less than $500,000 and a net worth of less than $1,000,000, demonstrate an ability to repay the loan.
The types of projects that qualify need to involve pre-approved capital equipment purchases that meet or exceed environmental rules and regulations, or pre-approved site investigations and cleanups. Please note — projects that were begun or completed prior to receiving approval from the MPCA through the application process are not eligible. Loans are awarded on a competitive basis throughout the year and are based on available funds and number of applications received. It typically takes a minimum of 45 days to complete the process once a loan is awarded.
For Auxiliary Power Units (APUs), diesel truck engines need to be older than 2007. The EPA maintains a list of verified idle reduction technologies, including APUs. These can be found on EPA’s Verified Idling Reduction Technologies page.
The general terms are as follows:
- a loan amount not less than $1,000 or more than $50,000,
- an interest rate of four percent or one-half the prime rate, whichever is greater at the time the loan is awarded,
- a repayment term of not more than seven years for environmental improvements, collateral is required.
In addition, once the project is completed, borrowers are asked to complete an evaluation of the project's realized environmental and economic benefits. The MPCA uses this information as ongoing feedback to evaluate and enhance the program.
To receive an application, contact the MPCA's Small Business Ombudsman, Mike Nelson at michael.nelson@state.mn.us or 651.757.2122.
If the current grant
round is not for you, the MPCA encourages applications for the MPCA
Environmental Assistance (EA) Loan Program. Consider applying if you’ve been
thinking about a project in green chemistry, pollution prevention, source
reduction, recycling, or source-separated composting. Eligible
applicants for the EA Loan Program include Minnesota-based, small- to
medium-sized businesses and political subdivisions of Minnesota. Candidates that are contemplating
smaller projects are particularly encouraged to apply this spring. Since the
amount that is available fluctuates, it is recommended to contact the program
with questions on fund availability.
Eligible loan costs are
limited to the capital costs of implementing waste or pollution prevention technologies
in Minnesota. Capital costs are limited to the costs of acquisition of
machinery and equipment, including freight and installation, and related
improvements.
The EA loan program is
offering participatory and direct loans. Participatory loans provide up to
$100,000 at zero percent interest. Participatory loan funds must be matched by
a minimum dollar-for-dollar match by loans from a participating financial
institution. In addition to the competitive interest rate charged by the
participating financial institution on its matching funds, an administrative
fee may be added to the participatory loan to defray costs associated with the
servicing of the EA Loan by the financial institution. Direct loans are limited
to businesses/entities and provide for awards up to a maximum loan of $50,000
at four percent interest or one half the prime rate, whichever is greater.
Direct loans must be matched by a minimum of one dollar for every two dollars
received of funds from the applicant. Start-up businesses are not eligible for
direct loans.
Priority eligible
applicants are Minnesota-based small to medium-sized businesses and political
subdivisions of Minnesota. Applications are being accepted until June 30, 2015. Visit the MPCA Environmental Assistance Loan Program for more information
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