What benefit does my organization get from The ERC program™?
An improved working environment with no upfront capital cost, and usually with net operating benefits. Best of all, you reverse or reduce climate damage with cleaner equipment and less waste.
What size projects does ERC take on?
There is no specific constraint on size. Our partners and projects range significantly in scope and cost, depending on type of equipment, locations, timing of rollout, and other factors.
Can we increase the scope of the program in the future?
Yes, we are a future-thinking company! If your goals change, The Contractor will assess additions, and ERC will provide a modified plan that adds new infrastructure.
Does ERC work with contractors or only with the operator?
Partnerships are initiated either directly through The Operator (client), or through The Contractor for the benefit of their customers. We then work with both The Contractor and The Operator throughout the process.
Will ERC use a contractor we choose?
Yes. We do however conduct an evaluation to ensure the highest-quality performance, and we require a fair labor cost agreement. You are also welcome to accept lower retained benefits to compensate for any additional charges your contractor requires.
How does ERC get paid?
The Operator enters into a Sustainable Infrastructure Agreement (SIA) with ERC and pays ERC monthly to the extent such usage generates benefits in excess of the agreed-upon operating benefit rate.
Is the infrastructure agreement with the ERC a form of lease?
No. Under U.S. GAAP ASC 842, “a contract is … a lease if the contract conveys the right to control the use of … an identified asset for a period of time, in exchange for a consideration.” The ERC Program’s™ Sustainability infrastructure agreement (SIA) has no consideration (payment) for the right to use ERC products, only payment for actual use of ERC products.
Is the infrastructure agreement with the ERC a performance contract?
No. Performance contracts generally require payments for the right to use assets for an extended period of time based on forecasted savings, regardless of what actually happens with rates, usage, or life of product. ERC’s Sustainability infrastructure agreement (SIA) ensures payments are based on what actually happens with rates and usage, similar to residential electricity from a utility.
Where does ERC get its funding?
ERC has a combination of bank funding and private funding that share in our vision of “Think forward, grow back” and who are willing to take the associated risks to accelerate the adoption of clean infrastructure.
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