Salish Sea Marine Emission Reductions Fund - Applicant Guide 2021-2022

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Salish Sea Marine Emission Reductions Fund - Applicant Guide 2021-2022
Salish Sea Marine
Emission Reductions
Fund
Applicant Guide 2021-2022
Salish Sea Marine Emission Reductions Fund - Applicant Guide 2021-2022
TABLE OF CONTENTS
SECTION 1: PROGRAM INFORMATION                                                                                   1
  1.1 Purpose                                                                                                    1
  1.2 Application Period                                                                                         1
  1.3 Program Description/Salish Sea Marine Emission Reductions Fund                                             1
  1.4 Eligible Recipients                                                                                        2
  1.5 Budget, Maximum Funding, and Capital Assets                                                                3
  1.6 Eligible Project Period                                                                                    4
  1.7 Future Eligibility                                                                                         4
  1.8 Eligible Projects and Eligible Expenditures                                                                4
     1.8.1 Stream 1: Study                                                                                       4
       Eligible Projects                                                                                         4
       Eligible Expenditures                                                                                     5
     1.8.2 Stream 2: Investment and Installation of Emission Reduction Technology                                5
       Eligible Projects                                                                                         5
       Eligible Expenditures                                                                                     6
  1.9 Expected Results                                                                                           6
  1.10 Type of Funding                                                                                           7
SECTION 2: KEY CONSIDERATIONS TO INCLUDE IN YOUR APPLICATION                                                     7
  2.1 Application Requirements                                                                                   7
  2.2 Application Requirements - Stream 1: Study                                                                 7
  2.3 Application Requirements - Stream 2: Investment and Installation of Emission Reduction                     8
SECTION 3: PROPOSAL EVALUATION                                                                                   8
  3.1 Evaluation Procedure                                                                                       8
  3.2 Project Selection and Funding Decisions                                                                    8
  3.3 Conflict of Interest and Intellectual Property                                                             9
  3.4 Contact and Application Submission Information                                                             9

LIST OF FIGURES
Figure 1 - Boundary of Salish Sea Canadian Marine Waters (in hatched red) ....................................... 2
Salish Sea Marine Emission Reductions Fund
SECTION 1: PROGRAM INFORMATION

1.1 Purpose

This Applicant Guide assists applicants completing and submitting their application for funding
under the Salish Sea Marine Emission Reductions Fund. This Guide outlines key program
details, including eligibility criteria and detailed instructions for completing and submitting an
application.
1.2 Application Period

Applications will be accepted anytime until March 31st, 2021.
1.3 Program Description/Salish Sea Marine Emission Reductions Fund

The Salish Sea Marine Emission Reductions Fund (SSMERF) will help reduce air pollutant and
greenhouse gas (GHG) emissions from domestic marine vessels or fleets operating in the
Canadian portion of the Salish Sea.
The boundary for the Salish Sea Canadian marine waters is provided in Figure 1. Note that for
this year of funding (2021-22), only applications applicable to marine vessels or fleets operating
in the Canadian portion of the Salish Sea will be considered. This applicant guide invites
proposals which are in a position to be implemented within the fiscal year 2021-22 (April 1, 2021
to March 31, 2022), but the option for multi-year funding is available. The multi-year funding
option can be selected in the application system.
There are two (2) streams for applicants to submit their proposals. These streams are described
in sections 1.8.1 Study and 1.8.2 Investment and Installation of Emission Reduction
Technology. Applicants are encouraged to submit proposals in accordance with the stream that
best applies, and a combinastion of streams is possible. If the application consists of a
combination of streams, the application must clearly state which aspects of the project fall under
each stream.
Stream 1: Study – To fund studies to investigate methods for Canadian marine vessels or fleets
operating in the Salish Sea to reduce air pollutant and GHG emissions. This stream helps
applicants determine how to reduce emissions from their operations. It is also suitable for
applicants requiring more information before implementing a technology or operational method.
Stream 2: Investment and Installation of Emission Reduction Technology – To help purchase
and install technology, if the applicants know how to reduce its air pollutant and GHG emissions
from their operation.

                                                                                      Application Guide 1
Figure 1 - Boundary of Salish Sea Canadian Marine Waters (in hatched red) 1

1.4 Eligible Recipients

Applicants must fall under one of the following categories:

1Note: fund only applies to the Canadian portion of the Salish Sea (Canadian side of the International
Border on Figure 1)
                                                                                           Application Guide 2
   Domestic or international not-for-profit organizations, such as charitable and volunteer
       organizations, professional associations, and non-governmental organizations;
      Domestic or international Indigenous organizations, governments, individuals, boards,
       commissions, communities, associations and authorities;
      Domestic or international research, academic and educational institutions;
      Canadian or foreign individuals;
      Domestic or international for-profit organizations, such as small businesses with less
       than 500 employees, companies, corporations, industry associations and agricultural
       organizations;
      Local organizations such as community associations and groups, seniors’ and youth
       groups, and service clubs; and,
      Provincial, territorial, municipal and local governments and their agencies (e.g. Crown
       corporations, Conservation Authorities).

Funding recipients are responsible for negotiating and signing the Funding Agreement.
Applicants are encouraged to closely review the following mandatory requirements:

   1. Applicants must provide documentation to demonstrate that they solely or in a collective
      partnership:
          A. have a governance structure that assures accountability to a company or
             membership (includes Boards) and an appropriate project governance structure;
          B. have access to, are involved with, or partner with others in the operation of
             marine vessels in the Salish Sea

   2. Applicants will be required to provide project budget breakdown to demonstrate other
      sources of funding including in-kind contributions or external contributions.

1.5 Budget, Maximum Funding, and Capital Assets

Per fiscal year, funding will not exceed $250,000 per non-profit recipient, and $200,000 per for-
profit recipient. The Fund may be awarded to one or multiple applicants; however, the total Fund
available per fiscal year is $250,000. Applicants are encouraged to source other means of
funding to supplement total project costs. The application must describe the estimated budget
required for the Project.
The Fund is subject to stacking limits. The maximum level (stacking limit) of total Canadian
Government assistance (federal, provincial, territorial and municipal assistance for the same
eligible expenditures) for this Program will not exceed 100% of the total eligible expenditures of
a project.
Only not-for profit recipients will be allowed to acquire capital assets with the funds provided
under a contribution agreement. For Agreements with Environment and Climate Change
Canada (ECCC), Capital Assets are defined as those tangible assets costing more than
$10,000 with a useful life of more than one year. Any assets acquired that cost less that
$10,000, may be included under “Material and Supplies Costs” if appropriate.

                                                                                      Application Guide 3
1.6 Eligible Project Period

There are three eligible project periods: one year, two year, or three year. All projects must start
have a start date within the Government of Canada’s 2021-2022 fiscal year (i.e. from April 1,
2021 up to March 31, 2022).. However, there is the option to enter into a multi-year agreement.
In this case, projects can start in the 2021-2022 fiscal year and continue for up to three years.
Funding for each year will align with specific project milestones and cannot be carried forward
from one year to the next if the milestones are not met. If applicable, any unspent funds
advanced at the end of the project are to be returned to ECCC.
1.7 Future Eligibility

The Fund will be available in 2021-22 and be available for multi year projects or new
applications until the end of the 2024-25 fiscal year. If not applying for a multi year project
starting in the 2021-22 fiscal year, recipients will be eligible to reapply for funding in subsequent
years. However, the application process may change in future years and all applicants may
have to complete the new application requirements for each year of application.
The Fund does have the option for multiyear agreements for recipients. If the applicant wishes
to apply for the option of multiyear agreements, a description and rational for this approach is to
be provided in the application. For questions on the multiyear agreement, please see Section
3.4 for contact information.
1.8 Eligible Projects and Eligible Expenditures

1.8.1 Stream 1: Study

Eligible Projects
The objective of this stream is to fund a study to investigate the best way for a Canadian marine
vessel or fleet operating in the Salish Sea to reduce its air pollutant and greenhouse gas
emissions. This stream is for applicants that have not yet determined how to reduce emissions
from their operations or that require more information before purchasing a technology.
This stream is to fund a feasibility study, consultant’s report, technical review, design, and/or
proof of concept (or other type of study within the eligibility requirements of the program). The
study can include a review of literature. However, it cannot solely be a literature review, as the
study must include specific information on how the Canadian marine vessel or fleet operating in
the Salish Sea can reduce their emissions. This funding may also be used to source
engineering specifications or drawings and to source financial quotes for potential emission
reduction technology. All of the sourced information must be included with the final study.

The following is a list of example study topics:
    Cleaner fuels

                                                                                       Application Guide 4
   Electrification or hybridization
      Accelerated turnover resulting in emission reductions
      Hull or propeller modifications to improve efficiency
      Route optimization technology
      Associated land based infrastructure

The list is not exhaustive and applicants may identify other study topics in their application, as
long as they align with the goal of the Fund (Section 1.3) and its eligibility requirements
described in this Guide. ECCC will determine whether the proposed project activities are eligible
for funding as per the Program Terms and Conditions.
The eligible recipient ideally would have technical expertise to conduct studies. If a consultant is
hired by the marine vessel or fleet operator/owner, then the consultant’s expertise on the
subject of research must be provided with the study.
All studies must include information on air pollutant emission reductions as well as the impacts
or considerations for how the project would also reduce GHG emissions.
The application must demonstrate all estimated costs for the project, including any potential in-
kind contributions or other potential or secured funding sources. See the following paragraph for
more details on eligible expenditures.

Eligible Expenditures
There may be eligible costs incurred in the course of conducting the project. Specific examples
of eligible expenditures for Stream 1 are as follows (but not limited to):

      Contractors required to perform activities related to the project and/or
      Material and supplies costs.
Other incremental expenditures directly related to the project may be considered upon approval
from ECCC.

1.8.2 Stream 2: Investment and Installation of Emission Reduction Technology

Eligible Projects
The objective of this stream is to fund the purchase and installation of technology, when the
applicant knows which technology or means will reduce emissions from its operation.
The following is a list of project categories that are expected to reduce marine air pollution from
vessels in the Salish Sea. This list is not exhaustive. Applicants may identify other activities in
their application, as long as they align with eligible project categories, requirements and
objectives.
Retrofits

      Domestic marine vessel or fleet retrofits, including:
         ○ Repowering to cleaner / more efficient engines

                                                                                      Application Guide 5
○   Fuel switching to lower emitting sources
            ○   Installation of emission treatment or control systems, such as exhaust gas
                recirculation, selective catalytic reduction, or diesel oxidation catalyst

Electrification/hybridization

       Domestic marine vessel or fleet switch to electric, hybrid, or zero-emission technology

Hull or propeller modifications

       Modifications which reduce drag, improve propeller performance

Operational practices

       Installation of software or technology to improve vessel routeing
       Training on more efficient / lower emitting vessel operational practices

Recipients would ideally own and/or operate a domestic marine vessel or marine vessel fleet(s)
in the Canadian portion of the Salish Sea. However, other circumstances may be evaluated.
All projects must include information on air pollutant emission reductions as well as the impacts
or considerations for how the project would also reduce GHG emissions.
The application must demonstrate all estimated costs for the project, including any potential in-
kind contributions or other potential or secured funding sources. See the following paragraph for
more details on eligible expenditures.

Eligible Expenditures
There may be eligible costs incurred in the course of conducting the project. Specific examples
of eligible expenditures for Stream 2 are as follows (but not limited to):

       Contractors required to perform activities related to the project and/or
       Material and supplies costs.
Other incremental expenditures directly related to the project may be considered upon approval
from ECCC.
As described in Section 1.5, only not-for profit recipients will be allowed to acquire capital assets
with the funds provided under a contribution agreement.

1.9 Expected Results

                                                                                       Application Guide 6
Projects must address the Salish Sea Marine Emission Reduction Fund’s objective: to reduce
air pollutant and GHG emissions from domestic marine vessels or fleets operating in the Salish
Sea.
The results of the project should either be a conceptual study that gives a clear idea of what
emission reduction strategies may work for the vessel or fleets in question or be an installation
of a technology where by the end of the project emission reductions can be determined. The
applicant should clearly demonstrate how their project would have one of these expected
results.
1.10 Type of Funding

The project will be funded as a contribution.

SECTION 2: KEY CONSIDERATIONS TO INCLUDE IN YOUR APPLICATION

2.1 Application Requirements

Applicant requirements differ by stream. To be eligible for funding, potential recipients are
required to provide the following information:

      Organization data (Tombstone data)
      Project summary
      Project Budget
      Project work plan
In addition, applicants must supply information specific to the stream of their choice, described
in sections 2.2 and 2.3.
2.2 Application Requirements - Stream 1: Study

Under Stream 1, the application must clearly demonstrate the following:

      Description and rational of the study topic, either one listed in Section 1.8.1, or a new
       study topic with adequate rational for the alternative study topic;
      Description of type of study (feasibility, consultant report, technical review, etc.).
       Including information on any engineering drawings, financial quotes or any other
       information that would be acquired for the study;
      Short summary of the technical expertise of the organization, consultant, or individual
       conducting the study;
      Description of the Canadian marine vessel or fleet that requires a study to determine
       potential emission reduction options;

                                                                                      Application Guide 7
   Description of where the Canadian marine vessel or fleet operates in the Salish Sea;
      Description of how the study will inform achievable emission reductions from a fleet or
       vessel;
      Description of Criteria Air Contaminant (CAC) and GHG emission reductions for each
       option described in the study; and,
      Outline for the study and what the results of the study will be used for and how the study
       will eventually result in emission reductions.
2.3 Application Requirements - Stream 2: Investment and Installation of Emission
Reduction

Under Stream 2, the application must clearly demonstrate the following:

      Description and rational of the project category and key project activities as described in
       Section 1.8.2, or a new category and/or activity;
      Short summary of the technical expertise of the organization, consultant, or individual
       that will be purchasing or installing technology;
      Description of the Canadian marine vessel or fleet that requires emission reductions;
      Description of where the Canadian marine vessel or fleet operates in the Salish Sea;
      Description of how the Canadian marine vessel or fleet can achieve emission reductions;
      Description of CAC and GHG emission reductions as a result of the specific technology
       installation (approximations, percent reductions will also be accepted); and,
      The metric that will be employed to measure emission reductions.

SECTION 3: PROPOSAL EVALUATION

3.1 Evaluation Procedure

Proposals will be evaluated against a set of evaluation criteria. Proposals will be scored based
on the information provided in each section of the application.
Proposals will be reviewed by a committee. The review committee will consist of ECCC and
Transport Canada (TC) scientists and/or engineers with expertise in marine shipping and
emissions reductions from marine shipping.
3.2 Project Selection and Funding Decisions

The review committee described in Section 3.1 will review all proposals submitted under each
stream and provide ECCC with their feedback on each proposal evaluation score. ECCC will
choose the recipient(s) based on the feedback from the review committee. The committee does
not expect to contact applicants for further information. It is the applicant's responsibility to
provide clear, comprehensive, and accurate information.

                                                                                    Application Guide 8
The committee will assess all applications received by the deadline. ECCC will only notify
selected application(s) of the final decisions. Decisions are final: there is no appeal process.
ECCC reserves the right to make final funding decisions based on the relative merits of
proposals as evaluated by ECCC and the review committee.
3.3 Conflict of Interest and Intellectual Property

ECCC will not provide funding to an applicant where there is a potential conflict of interest. An
analysis of potential conflict of interest will be conducted by ECCC and the review committee on
the applications submitted.
All intellectual property rights in any materials or works (“Materials”) created or developed by or
for the recipient using the contribution funding shall vest in the recipient or in a third party as set
out in an agreement between the recipient and such third party. ECCC, at its discretion, may
include provisions in the contribution agreement whereby the recipient grants, or ensures that
third parties grant (including ultimate recipients, if applicable) a non-exclusive, worldwide,
perpetual, irrevocable, fully paid and royalty-free license to ECCC to exercise the intellectual
property rights in the Materials, in whole or in part, for government purposes, except commercial
exploitation. ECCC may, if appropriate, also require the recipient to ensure that any contributor
to the development of the material waives his or her moral rights in any Materials subject
copyright.
3.4 Contact and Application Submission Information

Contact
For further information on the Fund or the application process, please contact:
The Salish Sea Marine Emission Reduction Fund:

Environment and Climate Change Canada

101-401 Burrard Street

Vancouver, BC

V6C 3R2

E-mail: ec.ssmer-remms.ec@canada.ca

Phone: 604-671-9223

How to Apply

All applications are required to be submitted through the Grants and Contributions Enterprise
Management System.

                                                                                        Application Guide 9
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