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

6

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– aepp@powerauthority.on.ca – 1-888-471-2377– www.aboriginalenergy.ca

• For further information specifically about the Aboriginal Renewable Energy Fund– aref@powerauthority.on.ca– 1-888-471-2377 or 416-969-6317

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Questions?