Ontario SMART GREEN Program

Program Overview  SMART Green is a program funded by the Ontario Government to drive competiveness, energy efficiency and GHG reductions for SME manufacturers in Ontario  50:50 matching grant funding up to $200,000 to implement capital investment projects that will deliver emission reductions, energy efficiency technologies, and best practices through process and/or product improvement.  Funding is available for approximately 110 projects across Ontario  SMART Green is Government/CME’s response to concerns about cost of Cap & Trade on SME’s  Launch planned for the fall - tentatively scheduled for October 18, 2016

Eligibility  Targeting SME’s and industry with annual greenhouse gas emissions under 25,000 tonnes per year and not participating in Ontario’s Cap & Trade program  Open to manufacturers in Ontario with minimum 10 employees and 3 years or more operating history  Multi-facility organizations eligible – Max 5 facilities up to $500,000 with the maximum funding allowance per facility being capped at $200,000  Companies can apply for one project per facility and can include one assessment audit per facility  Stacking of funds with other local distribution company or government programs will be considered on an individual basis

Eligible Projects  Projects that support reduction in GHG intensity and/or avoidance through upgrades to process /production equipment  Support energy efficiency, and  Lead to productivity improvements, which in turn lead to lower GHG emissions on per-production- unit basis  GHG reduction either on a gross or per-unit basis is the prerequisite for all projects to be eligible  Projects that do not demonstrate reductions in GHG will NOT be considered eligible for funding under the Program

Project Examples  Boiler Right Sizing and Load Management  Advanced Boiler Controls  High Efficiency Burners  Feedwater Economizers  Boiler Combustion Air Preheat  Blowdown Heat Recovery  Automated Blowdown Control  Condensate Return  Steam Trap Survey and Repair  Minimize Deaerator Vent Losses  Steam System Insulation  Boiler Tune Up  Reduced Furnace Openings (Air & Chain Curtains)  Exhaust Gas Heat Recovery  Oven/Kiln/Dryer/Furnace Insulation  Lighting Retrofit **  Advanced Heating and Process Controls  Optimize Combustion Air Compressor Heat Recovery  Ventilation Optimization  Ventilation Heat Recovery  Automated Temperature Control  Destratification Fans  Warehouse Loading Dock Seals  Minimize Door Openings  Process Integration and PINCH Analysis  Energy Management  Solar Walls  Reduce Boiler Steam Pressure  Condensing Boiler  Radiant Heaters  Condensing Economizers  Direct Contact Water Heaters  Burn Digester Gas in Boilers High-efficiency Ovens & Dryers  High-efficiency Furnaces  Regenerative Thermal Oxidizers  Process Heat Recovery  Process Improvements (i.e. changing cleaning chemicals, set points, exhaust, moisture control, etc.)  Steam Leak Repairs  Improved Building Envelope **  High Efficiency Heating Units  Gas Turbine Optimization  Steam Turbine Optimization ** This must be associated to the manufacturing process and does not apply to “comfort” upgrades, i.e. lighting, heating and cooling that is not related to production.

Eligible Project Costs  Eligible costs include all expenses directly related to the project and deemed reasonable and necessary for its execution  Costs may include:  Plant equipment purchases, including software and technologies that support the manufacturing processes;  Non-capital costs for equipment such as floor preparation, construction of area to install equipment i.e. ground reinforcement. Note: Building expansion costs are not covered;  Equipment or software installation and commissioning of new equipment from 3rd party suppliers;  Consulting Fees directly related and necessary to the project implementation (industry standard rates only);  Equipment and/or software training provided by equipment vendor.  50% of an Assessment Audit to a maximum of $10,000.  Eligible costs must be for arm's-length purchases.

Ineligible Costs  Ineligible costs include, but are not limited to:  Any costs determined not reasonable, not incremental, and/or not directly related to the eligible project activities  Costs incurred prior to the eligibility date as defined in the SMART Green Program’s Contribution Agreement  See for more details on ineligible costswww.cme-smart.ca/smart-green

Funding Levels  50% of costs of technical assessment and monitoring and verification work by approved auditors to a maximum of $10,000  Reimbursement of the eligible costs of the approved project up to a maximum of $200,000 or 50% of the total eligible project costs, whichever is less  Maximum funding per facility for a combined assessment and capital project is $200,000  Applicants seeking funding for projects at multiple locations are entitled to be reimbursed 50% of total eligible costs to a maximum of $200,000 per facility, up to 5 facilities, and an overall maximum funding amount of $500,000, whichever is less.

Project Selection  Applications will be received on a first-in, first- reviewed basis.  Projects will be selected based on:  Demonstrated reduction of GHG emissions from primary manufacturing process  Expectation of success for the project, as demonstrated by the feasibility, clarity and specificity of the project plan  Applicant’s ability to achieve the expected results, as demonstrated by the completed audit report provided with application  Priority will be given to companies in growth sectors that are energy intensive and trade exposed

Contact Us  For more details on the program, visit or contact a representative at