Building on 30 Years of Success: Introducing the Small Business Clean Air Program

Earlier this year, we published the first part of our blog series celebrating 30 years of helping small businesses across Ohio achieve economic growth, sustain family-owned operations for the next generation, and comply with federal regulations.

As part of our goal to expand access to clean air upgrades and support economic growth for small businesses across Ohio, we have evolved this program to serve communities for the next 30 years and beyond. The result is a more flexible, accessible program designed specifically for small businesses.

Recognizing a demonstrated need for financial assistance for smaller pollution control and energy improvement projects, we listened and learned from our customers, along with market research data and stakeholder feedback. OAQDA administered a pilot period to expand technology and eligibility for projects qualified for financing.  

The revamped program

The Small Business Clean Air Program is designed around the needs of Ohio's small businesses, offering financial support for two main categories of projects:  

• Ohio businesses affected by federal clean air regulations that are installing equipment (like dry cleaning machines, spray booths, dust collection equipment, and other equipment to achieve compliance) 

• Additional financial tools are available to support the needs of these projects (outlined below) 

• Energy improvement projects consisting of energy efficiency, behind-the-meter generation, or alternative-fuels transportation measures, which helps Ohio businesses save money in the face of rising energy costs 

These projects can receive financial benefits, including sales and use tax exemption, additional financial assistance for compliance projects, and the ability to access tools like Property Assessed Clean Energy. It can work with the lending structures of their choice and offers business owners a streamlined way to access the Authority's financial tools. 

Clean Air Act compliance projects have long been supported by OAQDA, but the new guidelines  have been carefully considered to meet Ohio's businesses where they are in providing beneficial long-term support.  

For energy projects, the standards have been designed to enable projects to be evaluated without needing extensive and costly audits or modeling.

A straightforward, updated fee schedule is also taking effect, which was designed with a tiered structure to incentivize smaller projects to be able to participate.  is also taking effect, which was designed with a tiered structure to incentivize smaller projects to be able to participate. 

Market Research and Stakeholder Engagement

Market research and stakeholder engagement revealed strong demand for energy improvement projects among Ohio's small businesses, which represent more than 99 percent of businesses in the state. The research also identified a financing gap, particularly for rural projects and those under $2 million, that often struggle to access credit or financing tools such as Commercial Property Assessed Clean Energy (C-PACE). 

Rising energy costs, supply chain pressures, and the desire to reduce operating expenses are increasing both the need for these improvements and demand for financial support. To ensure the program is accessible, OAQDA worked with third-party technical firms to develop practical standards that do not require extensive or costly modeling.

At the same time, OAQDA evaluated its existing support for federal clean air regulatory compliance projects. While cash grants have been highly impactful, they rely on a finite funding source and, without structural changes, were projected to be exhausted within the next several years.

To better reflect the program's purpose and audience, the Clean Air Resource Center (CARC) has been renamed the Small Business Clean Air Program, which launched on July 1, 2026.  

Details on the revamped program include:

Business eligibility

• Business must have its principal place of business in Ohio.

• Business must occupy the facility where the air quality project will be installed.

• Business must employ 100 or fewer employees.

• Program is designed to serve owner-operated small businesses.

• Commercial real estate projects involving leased tenant space are generally better suited for the CleanAir Improvement Program (CAIP).

• Maximum eligible project size is $2 million.

Energy Improvement Projects: Eligibility and Standards

Projects may include up to five eligible measures in one application, including:

• Energy conservation measures

• Alternative fuels transportation infrastructure

• Behind-the-meter energy generation equipment

Technical Standards

• Energy conservation measures must generally meet the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) 90.1-2022 minimum efficiency standards.

• These standards represent approximately a 10 percent improvement over baseline energy code requirements.

• Using measure-based standards eliminates the need for costly and complex energy modeling.

• This streamlined approach simplifies project evaluation for small businesses.

Additional Eligible Technologies

• Behind-the-meter energy generation technologies, as defined in the Ohio Revised Code.

• Alternative fuels transportation infrastructure.

Clean Air Act Compliance Financial Support

As noted earlier in this blog, OAQDA needed to identify alternative tools for financial assistance for Clean Air Act compliance. In coordination with the governor's office and the General Assembly on establishing the standards of the program, the program has the flexibility to deploy financial assistance through a variety of means. The program utilizes tools like loan loss reserves, which provide significant credit enhancement for small businesses while allowing funds to be recycled. This would enable cheaper credit, or better access to credit, for businesses across the state, and through recycling of the funds, a greater number of businesses can be supported as funding is recycled back. If you are a lender interested in partnering on this, please reach out ! 

Revised Fee Schedule

The fee schedule has been revised, aligned with similar programs. The updated fee schedule is available for review at this link , and includes application fees and issuance fees tiered by project size, as well as an annual fee for larger projects. 

New Project Application

OAQDA is in the process of developing a new online application portal, which will enable a streamlined application process with greater transparency and records-keeping.  

What's next?

The revised program launched on July 1st, 2026, featuring new program guidelines and the new fee schedule. The new online application portal is expected to launch later this year.

This next chapter is designed to meet small businesses where they are, today and into the future. 

Do you have a project that might be a fit for the new Small Business Clean Air Program, or are you a lender interested in partnering on financial tools to support these projects? Reach out to OAQDA at [email protected] or by phone at 614-224-3383.