"Efficiency performance contracts (EPCs) for small and medium enterprises (SMEs) are a marketbased approach that rewards suppliers for improving efficiency and reducing waste in SME operations through pollution prevention and energy efficiency (P2E2) innovations. They are similar to programs such as chemical management services, energy savings performance contracts, and resource management contracts that have been successfully used in larger enterprises. However, they are unique in that they combine a variety of ""spends,"" such as
tooling, chemicals, paint, and energy, in order to achieve sufficient economies of scale. In a pilot project combining tooling and metalworking fluid spends, the SME realized a 40% reduction in tooling costs while improving process efficiency and reducing tooling waste. Evidence suggests that similar EPC programs could successfully bring P2E2 innovations to many SMEs while simultaneously reducing costs and increasing profitability. However, significant barriers exist and EPC programs are unlikely to be adopted on a widespread basis without efforts by government or non-profit organizations to overcome these barriers. Most importantly, many suppliers are not willing to form the alliances necessary to
make EPCs successful, particularly in the area of energy efficiency. Several steps to overcome these barriers are recommended."
Publisher
Champaign, IL : Illinois Sustainable Technology Center
Series/Report Name or Number
Illinois Sustainable Technology Center -- RR Series, no. 113
The Accelerated Diffusion of Pollution Prevention Technologies Program (ADOP2T) was a project that identified best practices and executed brief demonstrations and extended pilot trials of pollution prevention practices and technologies in actual industrial
facilities.
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