Ohio gets $96 million in stimulus funds to promote green manufacturing

$96 million awarded; nearly half of it is already on the way

Saturday, June 27, 2009
John Funk
Plain Dealer Reporter

Ohio`s plan to jump-start green manufacturing got a $96 million boost Friday.

The U.S. Department of Energy awarded the Ohio Department of Development`s energy program that much in federal stimulus funds - nearly half of which is already on its way.

The remainder will flow to Ohio government bank accounts over the next 18 months, if the state spending meets federal guidelines.  "We are sending the checks today," Department of Energy senior adviser Matt Rogers said in a joint news conference with Mark Shanahan, energy adviser to Gov. Ted Strickland.

Shanahan said the state has already received "thousands of projects that could be eligible, representing more than $1 billion in requests."

The administration will contact companies that have already registered proposals, to explain the application process, he said. The state intends to focus on manufacturers who want to make parts for or assemble wind turbines, solar arrays and other renewable-energy technologies.

Secondly, the state wants to help manufacturers use less energy. Even homeowners and small businesses can apply.

"There is no question that these dollars will help lay the foundation for an energy-based economy that Ohio needs in order to come out of the current recession," Shanahan said.

Included in the spending:

Grants totaling $35 million will be awarded to help Ohio manufacturers.

State loans totaling $30 million --combined with $60 million to $90 million in private funding -- will be available to the same renewable-energy "supply chain" manufacturers for expanding and modernizing.

"We hope to put $100 million or more to work in Ohio at positive finance terms, again helping our folks prepare for the recovery," Shanahan said.

$15 million in grants to help Ohio manufacturers reduce energy use through efficiency technologies.

$8 million in grants for commercial and residential buildings for energy efficiency that will eventually pay for itself.

$500,000 to develop Ohio`s carbon management, in anticipation of federal legislation mandating the capture or reduction of carbon dioxide emissions and other "greenhouse" gases from manufacturing.

"Ohio is historically one of the largest emitters of those gases because of the nature of our economy and how much electricity we use," Shanahan said. "We need to have a strategy to get ready for whatever federal requirement comes. And to do that in a way that leads to economic development rather an economic restraint."

The stimulus funds come from the American Recovery and Reinvestment Act. The Department of Energy`s "state energy program" is awarding $3.1 billion nationwide for energy-related projects, said the agency`s Rogers.