Aboriginal Renewable Energy FundAboriginal Energy Partnerships Program
Shannon McCabeOntario Power Authority
August 19, 2010
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Aboriginal Energy Partnerships Program• Aboriginal Renewable Energy
Network (AREN)
• Aboriginal Renewable Energy Fund (AREF)
• Aboriginal Community Energy Plans (ACEP)
• Aboriginal Advisory Committee (AAC)
ACEPAREF
AREN
AAC
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AREF – Ministerial Directive• Financial assistance per project: $500,000 maximum
• Examples of “soft costs”:– Site investigation and control
– Resource assessments
– Business and financial planning
– Project coordination
– Studies associated with applying for a Renewable Energy Approval
• Size: Greater than 10 kilowatts
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Program Eligibility• Aboriginal Community Eligibility
– First Nations communities– Métis communities – Corporations that are wholly owned by one more Aboriginal communities– Individuals are not eligible
• Project Eligibility– Hydro, solar, wind, bioenergy (landfill gas, biomass, bio-gas)– Greater than 10 kilowatts in size– In Ontario
• Supporting Resolution– Documentation of community support such as a Band Council Resolution, resolution of
the governing council, etc – Must be submitted with the AREF application
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Aboriginal Project Development Example
The Idea ConstructionFeasibility &
Project Development Operation
NoticeTo
ProceedFIT Application and Contract
CommercialOperation
Date
AREF
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StructurePre
Feasibility
Design/Development
Regulatory Approvals
Time
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Phase I: Pre-Feasibility• This phase is a high level, early investigation of the project
• Eligible Phase I Activities include:– Preliminary business plan that includes all of the following activities
(each activity can also be funded separately):• Site identification• Initial resource identification & assessment • Initial connection point identification and review (pre-FIT)• Total project cost estimate• Preliminary economic evaluation (eg. RETScreen)• Aboriginal Traditional Knowledge studies
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Phase II: Design & Development Phase• Part A:
– Environmental Constraints Analysis
– Regulatory Approval Mapping– Site Control– Preliminary capital cost
estimates and equipment specifications
– Resource Assessment– Organizational development– Project Coordination
• Part B:– Engineering Studies– Resource Control– Business Plan/Economic Assessment– Project Coordination
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Phase III: Regulatory Approvals Phase• Could include the following:
– Water Power EA– CEAA Screening– REA requirements such as:
• Construction Report• Consultation Report• Decommissioning Plan• Effluent Management Plan Report• Hydrogeological Assessment Report• Noise and Odour Study Report• Crown Land Interest Report (MNR)• Natural Heritage Assessment & Archaeology/Cultural Investigation (MNR)• Other
– Site Specific Studies• Air Quality/Climate Change• Noise Studies• Effluent Management• Storm Water Management• Surface Water, hydrogeology• Bird Studies• Fish Inventory & Habitat• Breeding Amphibians• Archaeology Assessment• Heritage Assessment• Other
– Other Approval Requirements• Fisheries and Oceans Canada• Transport Canada• Ministry of Natural Resources• Environment Canada• Ministry of Culture• INAC• Ministry of Environment• Municipal
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Funding• AREF will cover percentage of actual costs
– Phase I: Pre-Feasibility• 80% of actual costs up to $20,000
– Phase II-A: Design & Development• 60% of actual costs up to $125,000 (less any funding received in Phase I)
– Phase II-B: Design & Development• 60% of actual costs up to $250,000 (less any funding received in previous
phases)– Phase III: Regulatory Approvals
• 40% of actual costs up to $500,000 (less any funding received in previous phases)
• May use other funding sources to pay for costs not covered by AREF
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Tendering for Services• Process that requires you to offer a request for bids either publically or by invitation.
• Select a provider based upon qualifications, experience and total estimated cost.
• Must receive 2-3 bids
• If you have been working with a consultant since before the program launch date (April 27, 2010), tendering is not necessary.
– Note: acknowledgement of this long-term relationship must be included in the Supporting Resolution.
• The use of internal personnel to carry out project coordination does not require tendering, however, proof of skills, experience and/or qualifications must be included with the application.
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Eligible Activities• AREF covers portion of actual costs to undertake specified
activities– External: Consultant/Legal/Accounting Costs
• Tendering requirement• Proof of qualifications
– Internal: Project Coordinator• In kind work related to an eligible activity• Proof of qualification of project coordinator/staff
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Completing your Business Plan• Phase I - funding available for
Preliminary Business Plan– Template available
• Phase II - funding available for compiling a Business Plan
• See the Business Plan Guidelines on the AREN website
– Corresponds with the information required for the Aboriginal Loan Guarantee Program
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AREF and the Feed-In Tariff (FIT) Program
• The AREF is for projects that intend to apply to the FIT program
• Phase I – does not require a FIT application or contract
• Phase II (A)– all Phase I deliverables completed or applied to FIT
• Phase II (B)– requires a FIT Contract or project is in the FIT Production Line
• Phase III– requires a FIT Contract
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Process Flow• Activities in each phase must be
complete before applying to next phase
• Work on activities in subsequent phase can begin earlier, but AREF will reimburse Applicants only once certain deliverables are complete
• Some funding for Phase II Design & Development B and Phase III: Regulatory Approvals may be provided earlier if Applicant provides a justification
FIT
Application
Phase I: Pre-Feasibility
Phase II A
Phase III: Regulatory Approvals
FIT Contract Awarded
Phase II B
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Application ProcessApplicant Interest
Contact AREF
Application Assistance
Submit for Review
Accept Reject
Contract/Payments/Reporting
~2Months
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Review Process• Expectation that applications could be reviewed in
approximately 2 months– First review committee meeting Fall 2010
• Timing may vary in the start up period of the program– Influx of applications – pent up demand– Marketing/communications ramping up
• Continuing communication and assistance throughout process
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Technical Review and Approvals Committee (TRAC)• Composition
– Chair
– 3 Internal evaluators
– 3 External reviewers
• Role– Review and assess all AREF applications
– Final decision making body• Award funding• Terminate funding
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Applying for AREF• Read the AREF Rules
– Ensure you meet eligibility criteria and all pre-requisites
• Prepare your application– Please contact us if you have
any questions about the application form
• Submit your application– You will be contacted by the
OPA to verify it has been received
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What’s next?• If application is approved, a funding contract is offered to the
applicant
• Once the contract is accepted, the applicant will receive the first payment.
• Brief check-in reports– monthly or quarterly depending on activities– Outlined in funding contract– Often serve as triggers for payments
• Each funded activity has a deliverable that must be submitted upon completion.
• The final payment will be issued once the OPA receives the Deliverables Submission Cover Page with all Deliverables attached.
Applicant AcceptsFunding Contract
First Payment Issued
Applicant providesCheck-In Reports
Payments Issued
Applicant providesFinal Deliverables
Final Payment Issued
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Payments & Reporting• Payments will be made at interim milestones
and upon completion of deliverables
• As work progresses Applicants will complete “Check-In Reports” to advise if there are any changes to the budget or timeline– Reports are either monthly or quarterly
depending on length of activity
• Reporting will trigger payments– Outlined in contract
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Contact Information• For further information on the Aboriginal Energy
Partnerships Program– [email protected] – 1-888-471-2377– www.aboriginalenergy.ca
• For further information specifically about the Aboriginal Renewable Energy Fund– [email protected]– 1-888-471-2377 or 416-969-6317
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Questions?
