102
ABORIGINAL RENEWABLE ENERGY FUND PROGRAM RULES Version 1.0 (27/04/10) © Ontario Power Authority, 2010

AREF Program Rules - Ontario Power Authorityarendrupal.powerauthority.on.ca/pdfs/AREF_Program_Rules.pdf · Under the AREF, a Project shall be considered for funding in three Phases:

Embed Size (px)

Citation preview

ABORIGINAL RENEWABLE ENERGY FUND

PROGRAM RULES

Version 1.0 (27/04/10)

© Ontario Power Authority, 2010

AREF PROGRAM RULES

This page has intentionally been left blank.

AREF PROGRAM RULES

TABLE OF CONTENTS

SECTION 1 - INTRODUCTION .............................................................................................................. 11.1 Background to the Aboriginal Energy Partnerships Program........................................ 11.2 Aboriginal Renewable Energy Fund ................................................................................ 1

SECTION 2 - PARTICIPATION IN THE AREF .................................................................................... 22.1 Aboriginal Community Eligibility .................................................................................... 22.2 Aboriginal Participation Project ...................................................................................... 22.3 Project Eligibility .............................................................................................................. 32.4 Project Splitting................................................................................................................. 3

SECTION 3 - FUND STRUCTURE.......................................................................................................... 43.1 Overview ............................................................................................................................ 43.2 Phase I - Pre-Feasibility .................................................................................................... 53.3 Phase II - Design and Development .................................................................................. 63.4 Phase III - Regulatory Approvals ..................................................................................... 93.5 Periodic Reports .............................................................................................................. 103.6 Verification ...................................................................................................................... 103.7 Internal Resources........................................................................................................... 11

SECTION 4 - APPLICATION REQUIREMENTS.................................................................................114.1 General Requirements .................................................................................................... 114.2 Phase I Applications ........................................................................................................ 124.3 Phase II Applications ...................................................................................................... 124.4 Phase III Applications ..................................................................................................... 144.5 PLEEEs Applications...................................................................................................... 144.6 Representations and Warranties .................................................................................... 154.7 Terms and Conditions..................................................................................................... 15

SECTION 5 - APPLICATION REVIEW AND ACCEPTANCE ...........................................................175.1 Applications ..................................................................................................................... 175.2 Review.............................................................................................................................. 17

SECTION 6 - FUNDING CONTRACT FORM AND EXECUTION .....................................................186.1 Offer and Acceptance...................................................................................................... 186.2 Form of Funding Contract.............................................................................................. 196.3 Activities and Deliverables .............................................................................................. 196.4 Responsibility for Project Viability ................................................................................ 19

SECTION 7 - PAYMENTS ......................................................................................................................217.1 Overview .......................................................................................................................... 217.2 Phase I Project Expenses ................................................................................................ 217.3 Phase II Project Expenses ............................................................................................... 217.4 Phase III Project Expenses.............................................................................................. 227.5 Pre-Launch Eligible External Expenses ......................................................................... 22

AREF PROGRAM RULES

SECTION 8 - AUDIT RIGHTS................................................................................................................228.1 Audit ................................................................................................................................ 22

SECTION 9 - PROGRAM REVIEW AND AMENDMENTS ................................................................239.1 Program Amendments .................................................................................................... 23

EXHIBIT A – PHASE I APPLICATIONEXHIBIT B – PHASE II APPLICATIONEXHIBIT C – PHASE III APPLICATIONEXHIBIT D – PLEEEs APPLICATIONEXHIBIT E – DELIVERABLES SUBMISSION COVER PAGEEXHIBIT F – FORM OF BUSINESS PLAN

AREF PROGRAM RULES

SECTION 1 - INTRODUCTION

1.1 Background to the Aboriginal Energy Partnerships Program

The Green Energy and Green Economy Act, 2009 (Ontario) includes provisions for programs to encourage involvement by Aboriginal people, community groups and municipalities in the development of renewable energy generation.

On September 24, 2009 the Ontario Minister of Energy and Infrastructure directed the Ontario Power Authority (the “OPA”) to establish a program to facilitate the participation of Aboriginal communities in the development of renewable energy generation facilities. In particular, the program should assist First Nation and Métis communities in paying for some of the soft costs associated with the development of renewable energy projects. Based on the directive, the OPA has developed the framework for the Aboriginal Energy Partnerships Program (the “AEPP”).

The AEPP consists of three components to facilitate increasing Aboriginal capacity to participate in the development of renewable energy projects:

The Aboriginal Renewable Energy Fund (the “AREF”) to provide funding for soft costs associated with green energy project development for First Nation and Métis communities; and

Support for Aboriginal Community Energy Plans (the “ACEPs”), which will allow First Nation and Métis communities to determine local interests, needs and opportunities for renewable energy development and conservation;

Support to establish the Aboriginal Renewable Energy Networks (the “AREN”), to facilitate sharing of knowledge and best practices related to First Nation and Métis green energy projects.

The AREF, ACEPs and the AREN are each administered by the OPA. In order to obtain advice and guidance on the development of the AEPP, the OPA has established an Aboriginal Advisory Committee (the “AAC”).

1.2 Aboriginal Renewable Energy Fund

The financial grants for the AREF are available to First Nations & Métis communities in the province of Ontario as defined by the Feed-In-Tariff rules. Grants are capped at a maximum of five hundred thousand dollars ($500,000.00) per Project and can be used for certain costs associated with three phases of project development activity:

Phase I: Pre-Feasibility

Phase II: Design and Development

Phase III: Regulatory Approvals

AREF PROGRAM RULES

- 2 -

For clarity, an Applicant need not obtain funding under an earlier Phase to be eligible for funding under a subsequent Phase.

This document contains the rules (the “Program Rules”) with respect to applying for and receiving funding under the AREF. These Program Rules will be reviewed and may be amended from time to time.

The OPA will maintain an application package, including application forms, the form of contract between the OPA and successful Applicant under the AREF (the “Funding Contract”) andinstructions on how to apply for funding on the Website. Any conflict or inconsistency between the Funding Contract and these Program Rules shall be resolved in favour of the Funding Contract.

Capitalized terms have the meanings set out in the definitions set out in Appendix - Definitions.

SECTION 2 - PARTICIPATION IN THE AREF

2.1 Aboriginal Community Eligibility

Funding under the AREF and entry into a Funding Contract is available to the following First Nations & Métis communities in the province of Ontario (each, an “Aboriginal Community”) that falls in one of the following categories:

(a) A First Nation that is a “Band” as defined by the Indian Act (Canada);

(b) The Métis Nation of Ontario or any of its active Chartered Community Councils;

(c) A Person, other than a natural person, that is determined by the Government of Ontario for the purposes of the FIT Program to represent the collective interests of a community that is composed of Métis or other Aboriginal individuals; or

(d) A corporation that is wholly owned by one or more Aboriginal Communities as described in (a), (b) or (c).

Any of the above Persons who are successful Applicants to the AREF will be the direct recipients of funds, as provided in these Program Rules.

2.2 Aboriginal Participation Project

A Project owned or developed by an Aboriginal Community on its own, together with one or more other Aboriginal Communities, or together with one or more other Persons, shall remain eligible for funding under the AREF pursuant to a Funding Contract, provided that where one or more Persons that are not an Aboriginal Community have an Economic Interest or other interest in a Project, only an Aboriginal Community shall be eligible for funding under the AREF.

AREF PROGRAM RULES

- 3 -

2.3 Project Eligibility

To be eligible for funding under the AREF and entry into a Funding Contract, a proposed project (a “Project”) must, in addition to any other requirements set out in these Program Rules, meet the following mandatory criteria:

(a) intended to constitute a Renewable Generating Facility;

(b) be located in the Province of Ontario;

(c) intended to have a capacity of greater than 10 kilowatts;

(d) for funding following Phase I - Pre-Feasibility (as described below), the Applicant not having any reason to expect that the Project would not be both Economically Viable and the subject of a future FIT Contract; and

(e) must not be funded, or the subject of an application for funding, under any other OPA-administered program, including the Community Energy Partnerships Program.

For Projects that are currently or were previously the subject of a RESOP Contract, evidence must be submitted demonstrating that the RESOP Contract has terminated and that any applicable Connection Impact Assessment has been rescinded.

2.4 Project Splitting

Where an Applicant has submitted a Phase II Application or a Phase III Application in respect of a Project using a Renewable Fuel, none of the following Persons (in each case, in respect of such Project, a “Proponent”):

(a) such Applicant;

(b) the Aboriginal Community related to or associated with such Applicant; or

(c) another applicant under the AREF related to or associated with such Aboriginal Community;

may submit another Application for a Project using the same Renewable Fuel. Where an Application in respect of a Project has terminated, a Proponent may submit an Application for another Project using the same Renewable Fuel.

An Application will be deemed to be terminated where:

(a) a FIT Contract has been entered into in respect of the Project that is the subject of the Application and a Notice to Proceed has been issued by the OPA pursuant to Section 2.4 of the FIT Contract;

(b) the Applicant provides a written statement to the OPA that the Project has been terminated; or

AREF PROGRAM RULES

- 4 -

(c) the OPA so notifies the Applicant in writing.

Once a Project has been terminated, no further Application may be made in respect of such Project.

Projects may not be divided into smaller Projects for the purposes of submitting more than one Application or otherwise increasing funding or obtaining any other benefit under the AREF. If the OPA determines that a project has been divided into smaller Projects, it may reject all Applications in respect of such Projects or take such other action as it deems appropriate. For the purposes of determining whether a project has been divided into smaller Projects, the OPA will consider factors such as whether the Applicants in respect of such Projects are the same Person, or controlled or related to such Person, the locations of such Projects, and the Renewable Fuel(s) used by such Projects.

SECTION 3 - FUND STRUCTURE

3.1 Overview

Under the AREF, a Project shall be considered for funding in three Phases:

Phase I - Pre-Feasibility

Phase II - Design and Development

Phase III - Regulatory Approvals

The Pre-Feasibility Phase is intended to provide funding for preliminary Project Activities, such as initial resource identification and assessment, connection point identification and preliminary connection availability review, identification of potential Project sites, and undertaking a preliminary economic assessment.

The Design and Development Phase expands upon the work carried out in the Pre-Feasibility phase and includes the completion of an environmental constraint analysis and an outline of the regulatory approvals required for the Project. This Phase will also provide funding for obtaining site control, undertaking resource assessments, engineering, developing a business plan and economic analysis, and securing resource control, if applicable.

The Regulatory Approvals Phase provides funding to complete work and studies required for a Renewable Energy Approval as well as any other regulatory approvals a Project may require.

Funding under the AREF is divided into Phases based on the way in which a typical Project would develop. While some Projects will transition through each Phase sequentially, there is recognition that each Project is different and may require funding for different Activities at different stages. Funding can be provided for a single Activity or multiple Activities, depending upon the Project requirements. For example, an Applicant may apply for a noise study only while another Applicant may require funding for a bat study, a bird study and a noise study.

AREF PROGRAM RULES

- 5 -

While certain deliverables from one Phase, whether or not AREF funding has been provided in respect of such Phase, serve as prerequisites for a subsequent Phase, it is permissible to commence an Activity prior to completion of all deliverables in respect of the previous Phase. If an Activity has commenced prior to the completion of all necessary prerequisites, funding will not be provided in advance of such Activity, but may be paid as a reimbursement once all prerequisites have been completed (subject to all other applicable requirements).

As provided in Sections 7.2, 7.3 and 7.4 (and subject to Section 7.5), AREF funding will not be provided for Phase I Activities, Phase II Activities or Phase III Activities (other than PLEEEs) that commenced prior to April 27, 2010, provided that AREF funding may be provided for PLEEEs incurred and expended between September 24, 2009 and April 27, 2010.

Funding is available for Projects up until the time that a Notice to Proceed has been issued by the OPA pursuant to Section 2.4 of the FIT Contract. At such time, the Project will be considered to have moved beyond the development stage and will no longer be eligible for AREF funding.

3.2 Phase I - Pre-Feasibility

The Pre-Feasibility Phase (“Phase I”) Activities are intended to provide an Applicant with the opportunity to investigate and assess, at a high level, the feasibility of the Project. Phase I Activities include some or all of those listed under that heading in Figure 1 below.

Phase I Deliverables shall reflect the Phase I Activities in respect of which a Phase I Application has been submitted and accepted and may consist of some or all of those deliverables set out in Figure 1 under “Phase I Deliverables”.

As set out in Section 4.2, the Applicant shall, as prerequisites to funding of any Phase I Activitiesprovide to the OPA:

(a) a written statement that no Activities in relation to the Project for which funding is being applied under the Application have been carried out or undertaken; and

(b) a Supporting Resolution.

AREF PROGRAM RULES

- 6 -

FIGURE 1: PRE-FEASIBILITY ACTIVITIES

Phase I Prerequisite

(a) Statement that no Activities in relation to the Project for which funding is being applied under the Application have been carried out or undertaken; and

(b) Supporting Resolution

Phase I Activities Phase I Deliverables

(a) Site identification (a) Description of the proposed Project in reasonable detail, including the Project site

(b) Identification of all Interested Persons (b) Names and contact information for each Interested Person together with a written non-binding statement from each Interested Person that there is no objection to the Project at the identified site, at the current time.

(c) Initial resource identification and assessment (c) Based on publicly available data, a description of the resources for the Project including sources and amount of wind, water, solar, Biomass, Biogas and landfill gas. For landfill gas, project site history and size information will be required to make resource availability calculations.

(d) Connection point identification and review (d) Identify the Planned Connection Point(s) for the Project and provide a Preliminary Connection Statement and TAPS Tool analysis.

(e) Total Project Cost estimate (e) Using available data, provide cost estimates for entire Project including development, capital and operating and maintenance costs.

(f) Preliminary economic evaluation, using RETscreen or another comparable assessment tool (internally developed models are acceptable provided there are of similar quality).

(f) Financial Model

(g) Aboriginal Traditional Knowledge studies (g) A study or report showing consideration of Aboriginal Traditional Knowledge with respect to the Project.

3.3 Phase II - Design and Development

The Design and Development Phase (“Phase II”) Activities are intended to provide an Applicant with the opportunity to conduct more detailed investigations and assessment of the Project’s engineering requirements, obtain site control, perform adequate resource testing, obtain resource control, and examine potential environmental constraints. Phase II Activities include some or all of

AREF PROGRAM RULES

- 7 -

those listed under the “Phase II-A Activities” and “Phase II-B Activities” headings in Figure 2 below.

Phase II-A Activities are considered Activities appropriate for the Applicant to carry out even prior to a FIT Application. Phase II-B Activities, however, due to their expense, scope or nature, are considered Activities appropriate for the Applicant to carry out only once there is a reasonable indication that the Project will proceed under a FIT Contract.

As set out in Section 4.3, the Applicant shall, as a prerequisite to funding of any Phase II-A Activities have either: (i) completed all of the Phase I Deliverables (or their substantial equivalent) regardless of whether funding for some or all of such Deliverables was provided under the AREF; or (ii) completed and duly submitted a FIT Application to the OPA. In the case of Resource Assessment Activities under Phase II-A, a specific prerequisite to AREF funding shall be the provision to the OPA by the Applicant, as part of the applicable Phase II Application, of certified copies of legally binding option(s), lease(s), or other agreements evidencing control of the Project site, including estimated Costs.Also as set out in Section 4.3, the Applicant shall, as a prerequisite to funding of any Phase II-B Activities, have met either of the following requirements:

(a) a FIT Contract in respect of the Project has been entered into by the Applicant and the OPA and become binding; or

(b) the Applicant has submitted a FIT Production Line Confirmation in respect of the Project to the OPA pursuant to paragraph 5.4(c)(i) of the FIT Rules and the Project has entered the FIT Production Line;

provided that each such prerequisite may be waived if, in its place, the Applicant applies for and obtains a written consent of OPA with regard to funding of the Phase II-B Activities, such consent to be in the sole and absolute discretion of the OPA.

Phase II-A Deliverables and Phase II-B Deliverables shall reflect the Phase II-A Activities and Phase II-B Activities in respect of which a Phase II Application has been submitted and accepted and may consist of some or all of those deliverables set out in Figure 2 under “Phase II-ADeliverables” or “Phase II-B Deliverables”, as the case may be.

AREF PROGRAM RULES

- 8 -

FIGURE 2: DESIGN AND DEVELOPMENT ACTIVITIES AND DELIVERABLES

Phase II-A Prerequisites

(a) All Phase I Deliverables or their substantial equivalent (whether or not funded under AREF); or(b) A FIT Application has been submitted and a Supporting Resolution has been passed.

Phase II-A Activities Phase II-A Deliverables

(a) Analysis of potential environmental constraints (a) A report that includes:(i) review of background information such

as planning documents and databases;(ii) identification of natural heritage features

using desktop mapping and on-site investigation; and

(iii) verification of site suitability for Project technology

(b) Review of required Regulatory Approvals (b) Identification of necessary and appropriate Regulatory Approvals

(c) Obtaining control of Project site (may include third party negotiations)

(c) Certified copies of legally binding option(s), lease(s), or other agreements evidencing control of the Project site, including estimated Costs

(d) Analysis of preliminary capital cost estimates and equipment specifications, including domestic content compliance plan

(d) Report re preliminary capital cost estimates and equipment specifications, including domestic content compliance plan

(e) Resource Assessment Activities (only if Deliverable II-A(c) re control of Project site is completed)

(e) Resource Assessment document

Phase II-B Prerequisites

(a) Either:(i) FIT Contract for Project executed by Applicant and OPA; or(ii) Project in FIT Production Line; or

(b) Consent of OPA (in its sole discretion) received by Applicant

Phase II-B Activities Phase II-B Deliverables

(a) Engineering Activities (a) Engineering Report

(b) Resource control Activities for Projects other than water, wind or solar, consisting of negotiation and preparation of fuel contract(s)(may include engaging legal counsel)

(b) Executed term sheet or non-binding form of fuel contract, including identification of counterparty, indicative price, and the quality, quantity and type of fuel, together with certified copy of invoice for legal or consulting services relating thereto

AREF PROGRAM RULES

- 9 -

(c) For water power Projects:(i) Water-use rights, licenses and permits;(ii) Plan of Development (MNR template); and(iii) Applying for a water power lease

agreement and multi-use work permit

(c) For water power Projects, certified copies of all appropriate water power permit documentation.

(d) Compile Business Plan (d) Business Plan

3.4 Phase III - Regulatory Approvals

The Regulatory Approvals phase of a Project (“Phase III”) involves activities related to obtaining the Renewable Energy Approval, any required environmental assessments, any other Regulatory Approvals, and Project site-specific studies, as applicable. Phase III Activities include some or all of those listed under that heading in Figure 3 below.

As set out in Section 4.4, as prerequisites to funding of any Phase III Activities, a FIT Contract shall have been executed by the OPA and the Applicant in respect of the Project and shall be binding.Notwithstanding the prerequisite described above, Phase III Site-specific Studies may be funded pursuant to an Application at the consent of the OPA, in its sole discretion.

Phase III Deliverables shall reflect the Phase IIII Activities in respect of which a Phase III Application has been submitted and accepted and may consist of some or all of those deliverables set out in Figure 3 under “Phase III Deliverables”.

FIGURE 3: REGULATORY APPROVALS

Phase III Prerequisites

FIT Contract for Project duly executed by OPA and Applicant and Supporting Resolution has been passed (provided that Phase III Site-specific Studies may be funded with OPA consent)

Phase III Activities Phase III Deliverables

(a) For a water power Project, conduct a water power environmental assessment pursuant to the Ontario EA Act.

(a) Regulatory Approvals Report

(b) For Projects on Crown land, reserve land, or where otherwise required, conduct an environmental assessment pursuant to the CEA Act.

(c) For all Projects, carry out all required or appropriate REA Studies and Plans

AREF PROGRAM RULES

- 10 -

(d) For all Projects, obtain all required and appropriate Regulatory Approvals other than those described in (a), (b) or (c) under “Phase III Activities”

(b) Copies of any REA Studies and Plans funded by AREF

(e) Carry out applicable Phase III Site-specific Studies

(c) Copies of any Phase III Site-specific Studies Funded by AREF

3.5 Periodic Reports

The Applicant will be required to submit Check-in Reports on a monthly or quarterly basis to the OPA depending upon Project Activities and respective timelines. The Funding Contract will specify when Check-in Reports are required. In the Check-In Reports, the Applicant will be required to disclose any deviations from the Funding Contract in regards to Project scope, timelines or Budget, as specified in the Funding Contract. The actions taken regarding any deviation from the contract will be at the OPA’s discretion and could include a contract amendment, delay of final payment and/or termination of funding.

3.6 Verification

Each Deliverables submission shall contain representations and warranties as follows:

(a) The Applicant has complied with the AREF Program Rules and the Funding Contract in submitting its Application and in carrying out the Activities funded, in whole or in part, under the AREF; and

(b) The Applicant has engaged in a Competitive Tender Process in relation to the engagement of all external consultants and suppliers of goods and services in relation to the Activities funded in whole or in part under the AREF and the terms and conditions, including price, of each such engagement are commercially reasonable, reflect an Arm’s Length relationship and are free from conflict of interest and collusion.

Each Deliverables submission shall also contain copies of invoices for external consultants, accountants and legal advisors, provided that such invoices may only reflect payments based on hourly rates for services provided and may not include per diems or disbursements or other fees, costs or expenses of any kind other than such hourly rates.

Where some or all of expenses within a Phase of Project are reimbursable under the AREF, the Applicant shall enter into written agreements with all consultants and service providers engaged in relation to such Phase. The Applicant shall keep and maintain all books and records, including such agreements with consultants and service providers, necessary to support the information contained in and with respect to each the above representations and warranties, any Deliverables submitted to the OPA, and any statement or information submitted to the OPA in relation to the AREF, for a period of not less than seven (7) years and the OPA shall be entitled to request copies of, and access to, such books and records from time to time during such period.

AREF PROGRAM RULES

- 11 -

3.7 Internal Resources

Where employees or other internal resources of the Applicant have been devoted to an Activity so as to comprise Project Expenses (for Phase I Activities as provided in Section 7.2 and for certain Phase II Activities as provided in Section 7.3), reimbursable in whole or in part under the AREF, it shall be a requirement that:

(a) such internal resources qualify as Internal Applicant Resources;

(b) the employee(s) carrying out the Activity are reasonably qualified and have the requisite skills and experience to accomplish the task to a reasonable standard and within a reasonable period of time;

(c) the number of hours devoted to such Activity reflects the number of hours that would be required to accomplish such Activity by an appropriately qualified and experienced individual working reasonably efficiently;

(d) the person/hours recorded and accounted for in respect of such Activity are true and accurate;

(e) the dollar amount expended, per hour and in aggregate, for such Activity by an employee or internal resource, is consistent with and comparable to the per hour and aggregate expenditures in respect of such employee or internal resource in respect of services provided to the Applicant by such employee or internal resource both prior to and following the Activity; and

(f) such Project Expenses have not formed part of the Required Applicant Contribution.

SECTION 4 - APPLICATION REQUIREMENTS

4.1 General Requirements

An Application shall be in the form of a Phase I Application, Phase II Application, Phase III Application or PLEEEs Application, as appropriate.

An Application must also contain a description of the qualifications of the internal personnel of the Applicant and/or the external consultant(s) engaged to carry out the proposed Activities. This description must contain experience that applies to the nature of the Activities being proposed.

An Applicant must provide the OPA with contact information including a valid e-mail address for purposes of correspondence related to the AREF. This information can be amended by the Applicant from time to time by providing written notice to the OPA. The OPA will not be responsible for any failed transmission resulting from an Applicant’s failure to comply with this provision.

The OPA reserves the right to reject an Application or withhold or deny funding from an Applicant or in respect of a Project that is not in good standing with the OPA, in its sole and absolute

AREF PROGRAM RULES

- 12 -

discretion, including Applicants that, at any time and from time to time, have not provided timely or complete Check-In Reports, Deliverables submissions, information in response to requests by the OPA, amounts owing to the OPA or are not otherwise in compliance with these Program Rules or a Funding Contract.

An Application shall contain representations and warranties and terms and conditions in accordance with Sections 4.6 and 4.7.

4.2 Phase I Applications

An Application for funding of Phase I Activities (a “Phase I Application”) shall be in the form attached as Exhibit A and shall include the Budget for Phase I and shall include, in addition to the requirements set out in Section 4.1, as a prerequisite to Phase I AREF funding:

(a) a written statement that no Activities in relation to the Project for which funding is being applied under the Application have been carried out or undertaken; and

(b) a Supporting Resolution.

Where the Phase I Application is a resubmission of one or more previous Applications, this should be indicated in the Phase I Application.

The OPA shall endeavour to accept or deny a Phase I Application by written response to the Applicant within sixty (60) days following the receipt of the Application.

Where a Phase I Application is denied, the OPA shall provide in the response the reasons for such denial and propose improvements to the Phase I Application that will be necessary for approval should the Phase I Application be resubmitted.

If a Phase I Application is accepted, the OPA shall provide notice to the Applicant containing an offer to enter into a Funding Contract. The Applicant shall accept the offer to enter into the Funding Contract within ten (10) Business Days of receipt of such offer, failing which the offer shall terminate.

4.3 Phase II Applications

An Application for funding of Phase II-A Activities or Phase II-B Activities (a “Phase II Application”) shall be in the form attached as Exhibit B and shall include, in addition to the requirements set out in Section 4.1, evidence that all prerequisites to funding such Activities have been met.

The prerequisite to funding of any Phase II-A Activities shall consist of (i) completion of all of the Phase I Deliverables (or their substantial equivalent), regardless of whether funding for some or all of such Deliverables was provided under the AREF; or (ii) submission to the OPA of a FIT Application in respect of the Project.

AREF PROGRAM RULES

- 13 -

In additional, a Phase II Application must demonstrate that the Applicant has support for the Project in the community. This shall be in the form of a resolution of the governing council or Local, as applicable (in each case, a “Supporting Resolution”). The Applicant must submit to the OPA acertified copy of a Supporting Resolution (if not submitted to OPA together with a previous Application) or an indication that the Applicant has previously provided a certified copy of a Supporting Resolution to the OPA and the date of the Application with which such Supporting Resolution was submitted.

The prerequisite to funding of any Phase II-B Activities shall consist of either:

(a) entry by the Applicant and the OPA into a FIT Contract in respect of the Project; or

(b) submission by the Applicant of a FIT Production Line Confirmation in respect of the Project to the OPA pursuant to paragraph 5.4(c)(i) of the FIT Rules and Project entry into the FIT Production Line;

provided that each prerequisite set out above in respect of funding of any Phase II-B Activities may be waived if, in its place, the Applicant applies for and obtains a written consent of OPA with regard to funding of the Phase II-B Activities, such consent to be in the sole and absolute discretion of the OPA.

Where the Phase II Application is a resubmission of one or more previous Applications, this should be indicated in the Phase II Application.

Where the prerequisite being met for funding of Phase II-A Activities is completion of the Phase I Deliverables (and not a FIT Application), the Phase I Activities supporting such Phase I Deliverables may have been carried out, in whole or in part, in connection with AREF funding for Phase I, or they may have been carried out by or on behalf of the Applicant independently.

The OPA shall endeavour to accept or deny a Phase II Application by written response to the Applicant within sixty (60) days following the receipt of the Application.

Where a Phase II Application is denied, the OPA shall provide in the response the reasons for such denial and propose improvements to the Phase II Application that will be necessary for approval should the Phase II Application be resubmitted.

If a Phase II Application is accepted, the OPA shall provide notice to the Applicant containing an offer to enter into a Funding Contract. Where the Applicant has already entered into a Funding Contract in respect of Phase I, the OPA shall provide notice to the Applicant containing an offer to amend the Funding Contract for the purposes of funding the Phase II Activities. The Applicant shall accept the offer to enter into or amend the Funding Contract within ten (10) Business Days of receipt of such offer, failing which the offer shall terminate.

AREF PROGRAM RULES

- 14 -

4.4 Phase III Applications

An Application for funding of Phase III Activities (a “Phase III Application”) shall be in the form attached as Exhibit C. A Phase III Application shall include, in addition to the requirements set out in Section 4.1, evidence that all prerequisites to Phase III AREF funding have been met.

As a prerequisite to funding of any Phase III Activities, a FIT Contract shall have been entered intoby the OPA and the Applicant in respect of the Project and shall be binding. Notwithstanding such prerequisite, Phase III Site-specific Studies may be funded pursuant to an Application at the consent of the OPA, in its sole discretion, in which case such consent shall serve as the applicable prerequisite.

A Phase III Application must demonstrate that the Applicant has support for the Project in the community. This shall be in the form of a Supporting Resolution. The Applicant must submit to the OPA a certified copy of a Supporting Resolution (if not submitted to OPA together with a previous Application) or an indication that the Applicant has previously provided a certified copy of a Supporting Resolution to the OPA and the date of the Application with which such Supporting Resolution was submitted.

Where the Phase III Application is a resubmission of one or more previous Applications, this should be indicated in the Phase III Application.

The OPA shall endeavour to accept or deny a Phase III Application by written response to the Applicant within sixty (60) days following the receipt of the Application.

Where a Phase III Application is denied, the OPA shall provide in the response the reasons for such denial and propose improvements to the Phase III Application that will be necessary for approval should the Phase III Application be resubmitted.

If a Phase III Application is accepted, the OPA shall provide notice to the Applicant containing an offer to enter into a Funding Contract. Where the Applicant has already entered into a Funding Contract in respect of Phase I or Phase II, the OPA shall provide notice to the Applicant containing an offer to amend the Funding Contract for the purposes of funding the Phase III Activities. The Applicant shall accept the offer to enter into or amend the Funding Contract within ten (10) Business Days of receipt of such offer, failing which the offer shall terminate.

4.5 PLEEEs Applications

An Application for funding of PLEEEs (a “PLEEEs Application”) shall be in the form attached as Exhibit D and may be submitted to the OPA subject to Section 7.5. A PLEEEs Application may be submitted to the OPA no later than July 28, 2010 and shall meet the requirements of these Program Rules applicable to a Phase II Application or a Phase III Application, except as otherwise expressly provided herein.

The OPA shall endeavour to accept or deny a PLEEEs Application by written response to the Applicant within sixty (60) days following the receipt of the Application.

AREF PROGRAM RULES

- 15 -

Where a PLEEEs Application is denied, the OPA shall provide in the response the reasons for such denial and propose improvements to the PLEEEs Application that will be necessary for approval should the PLEEEs Application be resubmitted.

If a PLEEEs Application is accepted, the OPA shall provide notice to the Applicant containing an offer to enter into a Funding Contract. Where the Applicant has already entered into a Funding Contract, the OPA shall provide notice to the Applicant containing an offer to amend the Funding Contract for the purposes of funding the PLEEEs. The Applicant shall accept the offer to enter into or amend the Funding Contract within ten (10) Business Days of receipt of such offer, failing which the offer shall terminate.

4.6 Representations and Warranties

An Applicant shall make the following representations, warranties and agreements in each Application:

(a) Where Activities that are the subject of this Application have already been carried out:

(i) the Applicant has engaged in a Competitive Tender Process in relation to the engagement of all consultants and suppliers of goods and services in relation to Activities funded in whole or in part under the AREF;

(ii) where interests in a Project are held by the Applicant and one or more other Persons that are not an Aboriginal Community, no Activity in respect of which funding under the AREF has been received or applied for has been or shall be funded, carried out or committed to by such other Person(s);

(iii) the Application is not in respect of, and the Applicant has not received and will not receive, AREF funding for Excluded Project Expenses; and

(iv) no Funding Termination Event has occurred or is reasonably expected tooccur; and

(b) There are no previous or contemporaneous Applications made by the Applicant, the Aboriginal Community related to or associated with such Applicant, or another applicant under the AREF related to or associated with such Aboriginal Community, except as disclosed in this Application.

4.7 Terms and Conditions

The following terms and conditions shall apply to, and shall be incorporated by reference into, each Application:

(a) The Applicant shall acknowledge and agree that, if the Application is approved by the OPA, the Applicant will be legally obligated to enter into a binding Funding

AREF PROGRAM RULES

- 16 -

Contract with the OPA that will set out all terms and conditions applicable to the Applicant in respect of any grant under the AREF.

(b) Submission of the Application shall not constitute any legal relationship between the Applicant and the OPA nor create any legal obligations of the OPA to the Applicant, other than the obligation of the Applicant to enter into a Funding Contract following approval by the OPA of the Application.

(c) The receipt of an Application shall not constitute consent by the OPA to support, process or accept the Application, nor shall the Application create or be deemed to create a relationship of partners, joint venturers, fiduciary, principal and agent or any other relationship between the OPA and the Applicant, other than as expressly provided in these Program Rules.

(d) The approval of the Application and subsequent entry into a Funding Contract is required for the OPA to provide any financial support to any Project under the AREF, and the OPA shall not provide financial support for any Activities performed prior to the approval of an Application except in strict accordance with the Funding Contract and the Program Rules.

(e) The OPA’s decision with respect to the Application is final, may be made in its sole and absolute discretion, and takes precedence over prior communications. There are no warranties, conditions or representations (including any that may be implied by statute) and there are no agreements in connection with the subject matter of theApplication, except as specifically set forth or referred to in the Application, the Program Rules and the Funding Contract that may be entered into between the OPA and the Applicant should the Application be approved. No reliance may be placed on any warranty, representation, opinion, advice or assertion of fact made by the OPA or any of its representatives, except to the extent that the same has been reduced to writing and included as a term of the Application, the Program Rules or the Funding Contract.

(f) Financial support from the OPA to an Applicant will only be provided upon execution of the Funding Contract between the Applicant and the OPA, and only according to the terms and conditions therein.

(g) The OPA reserves the right to make public the names of the organizations, including the Applicant, who have submitted an Application, the title of their Project or proposed Project, and the amount of funds awarded, if any. All other information submitted by the Applicant in will be treated as confidential subject to and in accordance with applicable law, including applicable freedom of information and privacy laws and regulations. The Applicant acknowledges and agrees that the OPA is subject to the Freedom of Information and Protection of Privacy Act (Ontario) (“FIPPA”) and may, subject to FIPPA, require disclosure of confidential information in the custody or control of the OPA to third parties.

AREF PROGRAM RULES

- 17 -

(h) The Application shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein. Notwithstanding that the Application was drafted by the OPA’s legal and other professional advisors, the Applicant shall acknowledge and agree that any doubt or ambiguity in the meaning, application or enforceability of any term or provision of the Application shall not be construed or interpreted against the OPA or in favour of the Applicant when interpreting such term or provision, by virtue of such fact.

SECTION 5 - APPLICATION REVIEW AND ACCEPTANCE

5.1 Applications

Applicants who wish to participate in the AREF will submit an Application to the OPA in accordance with these Program Rules and instructions posted on the Website.

Applicants are required to submit Applications electronically or in hard copy. Documents to be submitted in hard copy must be delivered to the OPA at:

Ontario Power Authority120 Adelaide Street West, Suite 1600 Toronto ON, M5H 1T1 Attention: Aboriginal Renewable Energy Fund

no later than ten (10) Business Days after the electronic submission of the Application, and in accordance with the specific details set out in the Program Rules and on the Website.

5.2 Review

Each Application will be reviewed by the OPA. The OPA may request clarification, additional information, documentation and statements in relation to any Application at any time. Any such requested clarification, additional information, documentation or statements must be submitted to the OPA within ten (10) Business Days of the date of such request.

The following criteria shall be applied by the OPA in reviewing an Application:

(a) Whether the Application is complete;

(b) Whether the applicable prerequisites have been met;

(c) Whether the supporting materials meet reasonable standards of completeness, quality and relating to the Application;

(d) Whether the Budget is reasonable;

(e) Whether requirements regarding Internal Applicant Resources have been met (where applicable);

(f) Whether the Project is Economically Viable;

AREF PROGRAM RULES

- 18 -

(g) Whether the Applicant, the Aboriginal Community related to or associated with such Applicant, or another applicant under the AREF related to or associated with such Aboriginal Community, is in good standing with the OPA, including whether any of such Persons have breached or defaulted in respect of any previous OPA contracts or the Funding Contract; and

(h) Whether there is a reasonable expectation that the Project will be connected to a Distribution System or the Transmission System within a reasonable period of time. For clarity, if and so long as the Project is in the FIT Reserve (as defined in the FIT Program Rules), no such reasonable expectation shall arise.

If an Application is rejected, the OPA shall provide reasons for rejecting the Application. Any such rejection shall not prohibit an Applicant from submission of a new or revised Application, provided that such new or revised Application shall be subject to the Program Rules and Funding Contract in effect at the time of submission or resubmission.

All decisions of the OPA with respect to an Application shall be in the sole and absolute discretion of the OPA. Any decision by the OPA to accept, reject or otherwise deal with an Application shall be final and binding and shall not be subject to appeal.

SECTION 6 - FUNDING CONTRACT FORM AND EXECUTION

6.1 Offer and Acceptance

If an Application is approved for funding, a Funding Contract between the OPA and the successful Applicant will be entered into as provided in this Section 6.1.

Following the acceptance of an Application, the OPA will provide notice to the Applicant in respect of such Project in which the OPA shall offer to enter into a Funding Contract in the form then applicable on the basis of the information set out in the Application.

An Applicant shall have ten (10) Business Days from the issuance of the offer to accept the Funding Contract by executing the Funding Contract and delivering it the OPA. If the OPA does not receive the executed Funding Contract within ten (10) Business Days of the offer, the Application shall be deemed to have been withdrawn and the offer of a Funding Contract shall be revoked and of no further force or effect.

Where an Applicant has entered into a Funding Contract in relation to Phase I Activities and subsequently submits an Application in respect of Phase II or Phase III Activities that is accepted by the OPA pursuant to these Program Rules, the Funding Contract may be amended to provide for Activities and Disbursements under such subsequent Phase II or Phase III, as the case may be (and a Funding Contract entered into in respect of Phase II Activities may similarly provide for Activities and Disbursements in relation to Phase III Activities).

AREF PROGRAM RULES

- 19 -

6.2 Form of Funding Contract

The form of the Funding Contract, as it may be amended from time to time, will be posted on the Website. Details of the successful Application, including Budget, Activity schedule, payment milestones, and a work plan schedule shall be incorporated into the Funding Contract.

6.3 Activities and Deliverables

The Applicant shall carry out the Activities and provide the Deliverables as provided in the Funding Contract and by the date(s) required in the Funding Contract. Deliverables as required hereunder in respect of each Phase shall be provided to the OPA together with a Deliverables Submission Cover Page.

The Applicant shall inform the OPA as soon as it becomes aware that the work is not likely to be completed by such date(s).

The Applicant shall provide to the OPA Check In Reports as provided in these Program Rules and the Funding Contract.

If the Applicant fails to comply with the terms and conditions of the Funding Contract, including completing the funded Activities within the required time frame, then the OPA may, at its sole and absolute discretion and on notice to the Applicant, exercise all applicable legal and equitable remedies, including withholding funding, requiring the return to the OPA of dollar amounts (with interest), and/or terminating the Funding Contract.

6.4 Responsibility for Project Viability

Notwithstanding anything contained in these Program Rules, Applicants are solely responsible for ensuring the technical, regulatory and financial viability of their Projects, and the OPA shall have no responsibility whatsoever to assess the viability or prospects of any Application or Project nor any liability whatsoever in the event that an Applicant suffers any losses or damages of any kind in respect of a Project or the subject matter of any Application or funding under these Program Rules or in relation to or arising out of the AREF.

At all times during a Phase, the Applicant and the Project shall be in material compliance with the information and materials submitted as part of or with the Application. At any time during a Phase, if an Applicant knows or has reason to know that the Project is not in material compliance with the Budget or Business Plan (as applicable), work plan, schedule or any other information or materials submitted with the Application in respect of such Phase, the Applicant shall notify the OPA in writing of such non-compliance together with a detailed description of the nature and extent of such non-compliance and proposed amendments to the Application or relevant supporting materials to bring the Project into compliance. The OPA shall, in its sole and absolute discretion, consent to such amendments or reject them. If the OPA rejects such amendments, the OPA shall have the right to terminate the applicable Funding Contract and/or any further funding thereunder.

If at any time, any of the following events (each, a “Funding Termination Event”) occurs:

AREF PROGRAM RULES

- 20 -

(a) an Applicant knows or has reason to know that the Project is not Economically Viable;

(b) an Applicant knows or has reason to know that it is not reasonable to expect that a FIT Contract can be entered into in respect of the Project, whether because a FIT Application has been rejected or for any other reason;

(c) the Project is placed in the FIT Reserve (as defined in the FIT Rules); or

(d) a Notice to Proceed has been issued to the Applicant or in respect of the Project by the OPA pursuant to Section 2.4 of the FIT Contract;

the Applicant shall so inform the OPA promptly in writing, shall not incur any further expenditures in connection with the AREF in relation to the Project, and shall not be eligible for any further funding under the AREF in respect of the Project (other than in respect of otherwise EligibleExternal Expenses in relation to which the Applicant entered into a legally binding commitment in writing prior to the Funding Termination Event, such commitment could not reasonably have been excluded from the relevant contract or otherwise avoided through commercially reasonable efforts to include appropriate termination provisions or otherwise, and evidence of such commitment is provided to the OPA).

Notwithstanding this Section 6.4, an Applicant may submit a further Application in relation to a Project in respect of which a Funding Termination Event has occurred within eighteen (18) months of the commencement of such Funding Termination Event provided that the Applicant provides, together with the Application and in addition to requirements under these Program Rules for such Application:

(e) Evidence that:

(i) The Funding Termination Event has ended; and

(ii) The cause of the Funding Termination Event has been addressed such that there is no reasonable expectation of the Funding Termination Event re-occurring;

(f) Representations and warranties by the Applicant that:

(i) No other material adverse change or event has occurred in respect of the Project;

(ii) All Deliverables previously provided to the OPA remain true, accurate and complete in all material respects;

(iii) There is no reason to believe that any Activities previously carried out should be repeated or varied in any material respect; and

AREF PROGRAM RULES

- 21 -

(iv) All assumptions and conditions underlying such Activities and Deliverables remain materially unchanged.

SECTION 7 - PAYMENTS

7.1 Overview

The timing and conditions to Disbursements shall vary depending on whether such payments relate to Phase I Activities, Phase II Activities, Phase III Activities. In the circumstances set out in, inter alia, Section 6.3 or Section 8, amounts may be due to the OPA from an Applicant.

Maximum funding in respect of all Phases of a Project (and, for certainty, including any PLEEEs)shall be five hundred thousand dollars ($500,000.00)

7.2 Phase I Project Expenses

Following entry into a Funding Contract by the OPA and the Applicant in respect of Activities under Phase I of a Project, the OPA shall provide the Phase I Initial Disbursement. Following receipt by the OPA of the Phase I Deliverables for such Activities and a Statement of Expenses, the OPA shall provide the Applicant with the Phase I Final Disbursement.

The Phase I Disbursement shall consist of a dollar amount equal to 80% of Phase I Project Expensesexpended not earlier than April 27, 2010, up to a maximum of $20,000. No less than $5,000 of the Phase I Project Expenses shall consist of a Required Applicant Contribution. Phase I Project Expenses may include Internal Applicant Resources.

Phase I Project Expenses may consist only of direct costs incurred by an Applicant for services necessary for the Phase I Activities and may not consist of any fees, costs, disbursements, payments-in-kind, gifts, expenses or other consideration of any type, other than:

(a) Eligible External Expenses; and

(b) Internal Applicant Resources devoted to the Phase I Project Activities, provided that such resources shall be excluded in calculating the Required Applicant Contribution of the Applicant to the total Phase I Project Expenses.

7.3 Phase II Project Expenses

Following entry into a Funding Contract by the OPA and the Applicant in respect of Activities under Phase II of a Project (or amendment of the Funding Contract where a Funding Contract has been entered into in respect of a previous Phase), the OPA shall provide the Phase II Initial Disbursement. Following receipt by the OPA of the Phase II Deliverables for such Activities and a Statement of Expenses, the OPA shall provide the Applicant with the Phase II Final Disbursement.

The aggregate Phase II Disbursement shall consist of a dollar amount equal to 60% of aggregate Phase II Project Expenses, up to a maximum of $250,000.

AREF PROGRAM RULES

- 22 -

Eligible expenses for Phase II Activities (the “Phase II Project Expenses”) may consist only of direct costs incurred by an Applicant for services necessary for the Phase II Activities, and may not consist of any fees, costs, disbursements, payments-in-kind, gifts, expenses or other consideration of any type, other than Eligible External Expenses incurred and expended no earlier than April 27, 2010. Phase II Project Expenses may include Internal Applicant Resources in respect of preparation of the Business Plan and of a Coordinator.

7.4 Phase III Project Expenses

Following entry into a Funding Contract by the OPA and the Applicant in respect of Activities under Phase III of a Project (or amendment of the Funding Contract where a Funding Contract has been entered into in respect of a previous Phase), the OPA shall provide the Phase III Initial Disbursement. Following receipt by the OPA of the Phase III Deliverables for such Activities and a Statement of Expenses, the OPA shall provide the Applicant with the Phase III Final Disbursement.

The Aggregate Phase III Disbursement shall consist of a dollar amount equal to 40% of aggregate Phase II Project Expenses, up to a maximum of $500,000, in aggregate (less any previous funding amounts received by the Applicant or to which the Applicant is or may become entitled in respect ofthe Project).

Eligible expenses for Phase III Activities (the “Phase III Project Expenses”) may consist only of direct costs incurred by an Applicant for services necessary for the Phase III Activities, and may not consist of any fees, costs, disbursements, payments-in-kind, gifts, expenses or other consideration of any type, other than Eligible External Expenses incurred and expended no earlier than April 27, 2010. Phase III Project Expenses may include Internal Applicant Resources in respect of a Coordinator.

7.5 Pre-Launch Eligible External Expenses

Following entry into a Funding Contract by the OPA and the Applicant in respect of PLEEEs, the OPA shall provide the PLEEEs Disbursement.

PLEEEs may not include Internal Applicant Resources. For clarity, neither the PLEEEs nor the PLEEEs Disbursement shall be subject to the prerequisites to a Phase II Application or a Phase III Application otherwise applicable (as set out in Sections 4.3 and 4.4).

SECTION 8 - AUDIT RIGHTS

8.1 Audit

During the Funding Period and for a period of seven (7) years thereafter, or such longer period as may specified in Laws and Regulations, where applicable, an Applicant that has participated in the AREF shall:

(a) keep proper books, accounts, and records of its revenue received and expenses incurred and paid in connection with Activities and AREF funding, and shall keep its invoices, receipts, and other vouchers relating thereto;

AREF PROGRAM RULES

- 23 -

(b) on reasonable notice, during normal business hours and not more often than once in a calendar year in respect of any expenditures on Activities or AREF funding, make available to the OPA or its designate such books, accounts, records, invoices, receipts, and vouchers referred to above and permit the OPA to (at its own expense) examine and audit and take copies and extracts from such documents; and

(c) subject to Laws and Regulations, allow the OPA or its designate, at the OPA’s discretion and expense and on reasonable notice, and not more often than once in a calendar year, to conduct a technical audit to verify that the Activities were carried out in accordance with these Program Rules and the Funding Contract.

If any discrepancy is identified by the audit referred to in this Section 8, the appropriate adjustments shall be promptly made between the Parties. If there has been an overpayment by the OPA, the amount of the overpayment shall constitute a debt due to the OPA, and may be so recovered. If such overpayment is greater than three (3) percent of the aggregate funding in respect of the Activities for the relevant audited Phase, the cost of such audit shall be paid by the Applicant, and such amount shall also constitute a debt due to the OPA and may be so recovered. Any debt due to the OPA herein referred to may, in addition to any other remedies available at law or in equity, also be recovered by the OPA by set-off.

SECTION 9 - PROGRAM REVIEW AND AMENDMENTS

9.1 Program Amendments

The OPA intends to review and amend as necessary the AREF, these Program Rules, and the form of Funding Contract (which, for greater certainty, shall not affect any executed Funding Contracts) following the development and finalization of the Economic Connection Test (as defined in the FIT Rules) and related processes and procedures, and at regular two-year intervals. The OPA may make such an amendment outside of a scheduled program review in response to changes in the Economic Connection Test, Ministerial directions, changes in Laws and Regulations, significant changes in market conditions or other circumstances as required.

Notice of any Amendment as a result of a scheduled program review will be posted on the Website at least 30 days prior to the effective date of such Amendment. Notice of any Amendment that is not as a result of a scheduled program review will be posted by the OPA on the Website for such time period, if any, prior to the effective date of such Amendment, as circumstances may permit.

AREF PROGRAM RULES

- 24 -

APPENDIX - DEFINITIONS

to theAREF PROGRAM RULES

The following terms shall have the respective meaning stated below when used in the Program Rules:

1. AAC shall have the meaning given to it in Section 1.1 of the Program Rules.

2. Aboriginal Community shall have the meaning given to it in Section 2.1 of the Program Rules.

3. Aboriginal Community Energy Plans shall have the meaning given to it in Section 1.1 of the Program Rules.

4. Aboriginal Renewable Energy Fund or AREF shall have the meaning given to it in Section 1.1 of the Program Rules.

5. Aboriginal Traditional Knowledge means “Aboriginal Traditional Knowledge” as that term is used in the Canadian Environmental Assessment Act (1992)), in respect of a Project.

6. Access Rights means the title or rights of access to the proposed site of the Project sufficient to build, operate and maintain the Project, enforceable by contract for the Term of the FIT Contract that is expected to be entered into in respect of the Project, which rights may include a lease, option, letter of intent, memorandum of understanding or other grant condition only on (i) the holder of such rights entering into a FIT Contract and (ii) the Supplier (as defined in the FIT Contract) being issued a Notice to Proceed. Where an Application is in respect of a Project on provincial Crown lands, the Applicant shall be deemed to have the necessary Access Rights for these purposes where:

(i) the Applicant has submitted a completed application to the Ministry of Natural Resources (Ontario) for selection as an “Applicant of Record” in respect of all lands comprising the Site, pursuant to such ministry’s applicable Site Release and Development Review policies and procedures; and

(ii) the Applicant has submitted to the OPA, an “MNR Application Status/Fact Sheet” or an “MNR Applicant of Record Status Letter” and an “MNR Application Map” which (A) for windpower Projects, both outlines in red and lists each of the MNR grid cells that will be required for the Project, or (B) for waterpower Projects, clearly shows the site and the associated MNR Site ID Number.

Where an Application is in respect of a Project on federal Crown lands, the Applicant shall be deemed to have the necessary Access Rights for these purposes where it has a “Priority

AREF PROGRAM RULES

- 25 -

Permit” issued pursuant to the Dominion Waterpower Act (Canada), or equivalent binding commitment from the federal Crown. Where an Application is in respect of a Project on “reserve land” or “special reserves”, as set out in the Indian Act (Canada), the Applicant must have a resolution of the applicable “band council(s)” granting permission to develop the Project.

7. ACEPs shall have the meaning given to it in Section 1.1 of the Program Rules.

8. Activity or Activities means some or all of the Phase I Activities, the Phase II Activities and the Phase III Activities.

9. AEPP shall have the meaning given to it in Section 1.1 of the Program Rules.

10. Applicant means an Aboriginal Community that submits an Application.

11. Application means Phase I Application, a Phase II Application, a Phase III Application or a PLEEEs Application.

12. AREN shall have the meaning given to it in Section 1.1 of the Program Rules.

13. Arm’s Length has the meaning given to it in the Income Tax Act (Canada))

14. Behind-the-Meter Facility means an Renewable Generation Facility that is connected to a Host Facility such that Electricity delivered by such Renewable Generation Facility is recorded on the Host Facility’s electricity meter;

15. Biogas has the meaning given to it in Ontario Regulation 328/09, made under the Electricity Act, as published in The Ontario Gazette on September 26, 2009, but excludes landfill gas.

16. Biomass has the meaning given to it in Ontario Regulation 328/09, made under the Electricity Act, as published in The Ontario Gazette on September 26, 2009, but may also include supplementary non-renewable fuels other than coal used for start up, combustion, stabilization and low combustion zone temperatures shall be no more than ten percent (10%) of the total fuel heat input in any calendar year for Electricity generation units with a gross nameplate capacity of 500 kW or less and five percent (5%) of the total fuel heat input in any calendar year for Electricity generation units with gross nameplate capacity of greater than 500 kW.

17. Budget means statement of the reasonably expected Costs associated with Activities proposed to be carried out pursuant to an Application.

18. Business Day means a day, other than a Saturday or Sunday or statutory holiday in the Province of Ontario.

19. Business Plan means a business plan containing items (a) through (e) under “Phase II-A Deliverables” in Figure 2 and items (a) through (c) under “Phase II-B Deliverables” in Figure 2 (in Section 3.3), together with a summary and analysis of all such items in relation

AREF PROGRAM RULES

- 26 -

to the viability and projected results of the Project, consistent with generally accepted business practices.

20. CEA Act means the Canadian Environmental Assessment Act.

21. CEA Agency means the Canadian Environmental Assessment Agency established under section 61 of the CEA Act, or its successor from time to time.

22. Chartered Community Council means a community council established pursuant to a Community Charter Agreement between such council, the Métis Nation of Ontario and the Métis Nation of Ontario Secretariat Inc.

23. Check In Report means a status report with respect to a Project submitted from time to time by the Applicant to the OPA as may be required in the Funding Contract.

24. Competitive Tender Process means a bidding process for the purpose of selecting a provider of goods or services having an aggregate value greater than $5,000.00 (five thousand dollars) that is in compliance with any applicable tendering policy of the Applicant or, where the Application is a corporation that is wholly owned by an Aboriginal Community, such Aboriginal Community, and wherein:

(i) the request for proposals or tendering document contains a clear description and specifications of the deliverables and does not contain any features that would unduly reduce or restrict competition;

(ii) purchases, commitments, projects or deliverables have not been fragmented, subdivided or split for the purpose, in whole or in part, of being valued below $5,000.00 (five thousand dollars) for the purpose of avoiding a competitive tendering process;

(iii) the bidders are at Arm’s Length to the Person conducting the process and to each other;

(iv) there has been no price fixing or other collusion between any of the bidders or between any bidder and the Person conducting the process;

(v) at least three bidders have participated;

(vi) all bidders have appropriate skills, qualifications and experience in respect of the goods or services to be provided;

(vii) bids have been submitted in writing and have been sealed;

(viii) the winning bid has been chosen in accordance with transparent criteria reflecting price and/or quality;

(ix) adequate written records have been made and kept regarding the process;

AREF PROGRAM RULES

- 27 -

(x) the process has been fair; and

(xi) the Person conducting the process has not been subject to any conflict of interest;

provided that, where the provider of goods or services is a qualified accountant providing accounting services or a lawyer providing legal services and such provider has been providing such services to the Applicant for a period or not less than three (3) years prior to the date of the Application, the requirements of (i) through (xi) above shall not apply to the engagement or retention of such accountant or lawyer.

25. Connection Impact Assessment or CIA means an assessment conducted by an LDC to determine the impact on the Distribution System of connecting the Project to its Distribution System.

26. Connection Point means:

(i) if the Project is intended not to be a Behind-the-Meter Facility, the electrical connection point between the Project and the Distribution System where Electricity is injected into the Distribution System or the IESO-Controlled Grid (as applicable); and

(ii) if the Project is intended to be a Behind-the-Meter Facility, the electrical connection point between the Project and the Host Facility where Electricity is injected into the Host Facility’s electrical system.

27. Coordinator means an employee or consultant responsible for overall coordination of Activities.

28. Costs means costs, expenses, fees, taxes, rates, in-kind payments, or other consideration of any kind.

29. Deliverables means some or all of the Phase I Deliverables, the Phase II-A Deliverables, the Phase II-B Deliverables and the Phase III Deliverables, as appropriate.

30. Deliverables Submission Cover Page means a cover page in the form of Exhibit E.

31. Disbursement means a Phase I Disbursement, a Phase II Disbursement, a Phase III Disbursement or a PLEEEs Disbursement.

32. Distribution System means a system connected to the IESO-Controlled Grid for distributing Electricity at voltages of 50 kilovolts or less, and includes any structures, equipment or other things used for that purpose, provided that a Distribution System shall be deemed not to include any equipment controlled by the IESO pursuant to the Distribution System Code.

33. Distribution System Code means the “Distribution System Code” established and approved by the OEB, which, among other things, establishes the obligations of an LDC with respect

AREF PROGRAM RULES

- 28 -

to the services and terms of service to be offered to customers and retailers and provides minimum technical operating standards for Distribution Systems.

34. Economically Viable means, in respect of a Project, that the Project has a positive internal rate of return, inclusive of any benefits to the Applicant’s community.

35. Electricity means electric energy, measured in kWh.

36. Electricity Act means the Electricity Act, 1998 (Ontario).

37. Eligible External Expenses means Costs incurred and expended in respect of external duly qualified professional and technical consultants or contractors who are directly involved and reasonably necessary to carry out in the technical, engineering, environmental, or financial aspects of the Activities, that have been retained pursuant to a Competitive Tender Process and in respect of which receipts have been received by the Applicant, provided that Excluded Project Expenses shall be excluded from Eligible External Expenses.

38. Engineering Activities means engineering activities for purposes of Project site preparation and capital cost estimate consisting of:

(i) Conceptual design layout: preferred Project site selection, preliminary site plan, assessment of technology alternatives, Project site servicing, Project site constraints, transportation assessment, survey and map preparation, outlining developmental costs, determining capital costs and determining operation, maintenance and decommissioning costs, and Electricity production estimates.

(ii) Electrical engineering design: equipment selection, Project site electrical plan, electrical room layouts/single line diagram, connection corridor hydro and telephone and cost estimates.

(iii) Civil/geotechnical engineering design: geotechnical investigations, grading and servicing plan, Project site plan refinement, storm water management, cost estimates and Project site survey. For landfill gas, drill test wells to test for landfill gas quality and quantity, review existing landfill cover and revise and update previous landfill gas calculations.

(iv) Mechanical/structural engineering design, made up of:

(A) Structural engineering, consisting of: foundation design and/or framing review, scale facility, fuel storage within building foundation, tipping floor, retaining/push walls, equipment foundations, stacks, cost estimating and building design; and

(B) Mechanical engineering, consisting of: PID Drawing, equipment selection, equipment layout, building HVAC, process ventilation, fire protection, building hazard classification, facility plumbing and

AREF PROGRAM RULES

- 29 -

drainage, process services, electrical load list, heat loss calculations and cost estimates.

39. Engineering Report means a report consisting of the following:

(i) A conceptual design report containing preferred Project site selection, preliminary site plan, assessment of technology alternatives, Project site servicing, Project site constraints, transportation assessment, survey and map preparation, outlining developmental costs, determining capital costs and determining operation, maintenance and decommissioning costs.

(ii) An electrical engineering design report containing equipment selection, Project site electrical plan, electrical room layouts/single line diagram, connection corridor hydro and telephone, cost estimates and drawings.

(iii) A civil/geotechnical engineering design report containing geotechnical investigations, grading and servicing plan, Project site plan refinement, storm water management, cost estimates and Project site survey. For landfill gas, data from drill test wells for landfill gas quality and quantity must be submitted along with results from reviewing existing landfill cover and updated landfill gas calculations; and

(iv) A mechanical/structural engineering design report comprised of:

(A) structural engineering report containing foundation design and/or framing review, scale facility, fuel storage within building foundation, tipping floor, retaining/push walls, equipment foundations, stacks, cost estimating and building design; and

(B) Mechanical Engineering Report containing PID Drawing, equipment selection, equipment layout, building HVAC, process ventilation, fire protection, building hazard classification, facility plumbing and drainage, process services, electrical load list, heat loss calculations and cost estimates.

40. Environmental Constraint Analysis means an analysis that is completed prior to entering the REA approval process and that:

(i) identifies any natural and cultural heritage features associated with the Project site and surrounding lands;

(ii) examines the implications of environmental policies that have been designed to protect such features on the Project; and

(iii) refines the scope of work required for the REA.

41. Excluded Project Expenses means, in relation to an Application, expenses in respect of:

AREF PROGRAM RULES

- 30 -

(i) capital Costs of a Project;

(ii) a FIT Contract application;

(iii) any and all amounts paid to Governmental Authorities;

(iv) any Activity already funded, carried out or committed to by a Person that is not an Aboriginal Community;

(v) any Internal Expenses that are not Permitted Internal Expenses; and

(vi) other than PLEEEs, any Costs incurred, or relating to any activity, matter or thing carried out, prior to May 11, 2010.

42. Financial Model means an abstract representation of a financial decision-making situationcomprised of a mathematical model designed to represent (a simplified version of) the performance of a project or financial investment, including a model created usingRETScreen.

43. FIT Application means a duly completed application under the FIT Program in respect of a Project that has been properly submitted (together with appropriate application security) to the OPA pursuant to the FIT Rules, including Sections 3, 9.2 and 13.2, as applicable, thereof.

44. FIT Contract means the agreement entered into between a Supplier and the OPA in accordance with the FIT Rules, comprised of the FIT Contract Cover Page, the general terms and conditions, any applicable special terms and conditions, the Standard Definitionsof the FIT Rules, and the other Exhibits are attached, as amended, restated or replaced from time to time.

45. FIT Production Line has the meaning ascribed thereto in Appendix 1 –Standard Definitions of the FIT Rules.

46. FIT Program has the meaning ascribed thereto in Appendix 1 –Standard Definitions of the FIT Rules.

47. FIT Reserve has the meaning ascribed thereto in Appendix 1 –Standard Definitions of the FIT Rules.

48. FIT Rules means the Feed-in-Tariff Rules issued by the OPA as amended from time to time.

49. Funding Contract has the meaning given to it in Section 1.2.

50. Funding Period means, in respect of a Phase, the period commencing at the date an Application for such Phase is received and ending at the later of (i) the date that the final Disbursement is made in respect of such Application, and (ii) the date that all Deliverables in respect of such Phase are received by the OPA.

AREF PROGRAM RULES

- 31 -

51. Funding Termination Event has the meaning given to it in Section 6.4;

52. Government of Ontario means Her Majesty the Queen in right of Ontario.

53. Governmental Authority means any federal, provincial, or municipal government, parliament, legislature, or any regulatory authority, agency, tribunal, commission, board or department of any such government, parliament or legislature, or any court or other law, regulation or rule-making entity, having jurisdiction in the relevant circumstances, including the IESO, the OEB, the Electrical Safety Authority, and any Person acting under the authority of any Governmental Authority, but excluding the OPA.

54. Host Facility means a facility which:

(i) the Renewable Generation Facility is connected to at the Connection Point; and

(ii) is either (i) directly connected to a Distribution System or (ii) connected to the IESO-Controlled-Grid directly or through one or more other facilities (which other facility is not, for greater certainty, a Distribution System);

and may include that part of the Project that is not part of the Renewable Generation Facility.

55. IESO means the Independent Electricity System Operator of Ontario established under Part II of the Electricity Act or its successor.

56. IESO-Controlled Grid has the meaning given to it by the IESO Market Rules.

57. IESO Market Rules means the rules made under section 32 of the Electricity Act, together with all market manuals, policies, and guidelines issued by the IESO, as may be amended from time to time.

58. including means “including without limitation”.

59. Interested Person means a Person who has an interest in or affecting the Project site such that exercise of such interest would give rise to a reasonable likelihood that the Project would not proceed (whether or not such interest consists of a property interest in the Project site itself).

60. Internal Applicant Resources means internal resources of the Applicant in the form of employee time as measured in dollars per person/hour, provided that:

(i) the employee(s) carrying out the Activity are reasonably qualified and have the requisite skills and experience to accomplish the task to a reasonable standard and within a reasonable period of time;

AREF PROGRAM RULES

- 32 -

(ii) the number of hours devoted to such Activity reflects the number of hours that would be required to accomplish such activity by an appropriately qualified and experienced individual working reasonably efficiently;

(iii) the person/hours recorded and accounted for in respect of such Activity are true and accurate;

(iv) the dollar amount expended, per hour and in aggregate, for such Activity by an employee or internal resource, is consistent with and comparable to the per hour and aggregate expenditures in respect of such employee or internal resource in respect of services provided to the Applicant by such employee or internal resource both prior to and following the Activity; and

(v) Such internal resources have not formed part of the Required Applicant Contribution.

61. LDC means the owner or operator of a Distribution System who is licensed by the OEB asan “electricity distributor”.

62. Laws and Regulations means, from time to time:

(i) applicable federal, provincial or municipal laws, orders-in-council, by-laws, codes, rules, policies, regulations and statutes;

(ii) applicable orders, decisions, codes, judgments, injunctions, decrees, awards and writs of any court, tribunal, arbitrator, Governmental Authority or other Person having jurisdiction;

(iii) applicable rulings and conditions of any licence, permit, certificate, registration, authorization, consent and approval issued by a Governmental Authority;

(iv) any requirements under or prescribed by applicable common law;

(v) the Retail Settlement Code, the Distribution System Code, the Transmission System Code and any other codes issued by the OEB; and

(vi) the IESO Market Rules, as well as any manuals or interpretation bulletins issued by the IESO from time to time.

63. Local means a Métis local- or community-level representative governmental council or similar organization.

64. MNR means the Ontario Ministry of Natural Resources.

65. Meter means a meter owned by or under the control of the LDC or the Transmitter, as applicable, that measures and records the quantity of Electricity which passes through it;

AREF PROGRAM RULES

- 33 -

66. OEB means the Ontario Energy Board or its successor.

67. Ontario EA Act means the Environmental Assessment Act, R.S.O. 1990, c. E.18, as amended.

68. OPA shall have the meaning given to it in Section 1.1 of the Program Rules.

69. Permitted Internal Expenses are, for Phase I, any and all Internal Expenses, for any Phase, Internal Expenses in respect of engagement of a Coordinator, and for Phase II only, Internal Expenses in respect of preparation of the Business Plan.

70. Person means a natural person, firm, trust, partnership, limited partnership, company or corporation (with or without share capital), joint venture, sole proprietorship, Governmental Authority or other entity of any kind.

71. Phase means Phase I, Phase II or Phase III.

72. Phase I shall have the meaning given to it in Section 3.2 of the Program Rules.

73. Phase I Activities means some or all of the Activities listed under “Phase I Activities” in Figure 1.

74. Phase I Application shall have the meaning given to it in Section 4.2 of the Program Rules.

75. Phase I Deliverables means the deliverables listed under “Phase I Deliverables” in Figure 1.

76. Phase I Disbursement means the dollar amount to which an Applicant may become entitled to receive from the OPA pursuant to Section 7.2 in respect of Phase I Project Expenses.

77. Phase I Final Disbursement means the final Disbursement for Phase I as set out in the Funding Contract.

78. Phase I Initial Disbursement means the first Disbursement for Phase I as set out in the Funding Contract.

79. Phase I Project Expenses means fees and costs and Internal Applicant Resources expended in respect of Phase I Activities in accordance with these Program Rules.

80. Phase II shall have the meaning given to it in Section 3.3 of the Program Rules.

81. Phase II Activities means some or all of Phase II-A Activities and the Phase II-B Activities.

82. Phase II Application shall have the meaning given to it in Section 4.3 of the Program Rules.

83. Phase II Deliverables means the Phase II-A Deliverables and the Phase II-B Deliverables.

AREF PROGRAM RULES

- 34 -

84. Phase II Disbursement means the dollar amount to which an Applicant may become entitled to receive from the OPA pursuant to Section 7.3 in respect of Phase II Project Expenses.

85. Phase II Final Disbursement means the final Disbursement for Phase II as set out in the Funding Contract.

86. Phase II Initial Disbursement means the first Disbursement for Phase II as set out in the Funding Contract.

87. Phase II Project Expenses shall have the meaning given to it in Section 7.3 of the Program Rules.

88. Phase II-A Activities means some or all of the Activities listed under “Phase II-A Activities” in Figure 2.

89. Phase II-A Deliverables means the deliverables listed under “Phase II-A Deliverables” in Figure 2.

90. Phase II-B Activities means some or all of the Activities listed under “Phase II-B Activities” in Figure 2.

91. Phase II-B Deliverables means the deliverables listed under “Phase II-B Deliverables” in Figure 2.

92. Phase III shall have the meaning given to it in Section 3.4 of the Program Rules.

93. Phase III Activities means has the meaning given to it in Section 3.4 if the Program Rules

94. Phase III Activities means some or all of the Activities listed under “Phase III Activities” in Figure 3.

95. Phase III Application shall have the meaning given to it in Section 4.4 of the Program Rules.

96. Phase III Deliverables means the deliverables listed under “Phase III Deliverables” in Figure 3.

97. Phase III Disbursement means the dollar amount to which an Applicant may become entitled to receive from the OPA pursuant to Section 7.4 in respect of Phase III Project Expenses.

98. Phase III Final Disbursement means the final Disbursement for Phase III as set out in the Funding Contract.

99. Phase III Initial Disbursement means the first Disbursement for Phase III as set out in the Funding Contract.

AREF PROGRAM RULES

- 35 -

100. Phase III Project Expenses shall have the meaning given to it in Section 7.4 of the Program Rules.

101. Phase III Site-specific Studies means appropriate site-specific studies which may include one or more of the following:

(i) Air quality/climate change review using existing data (for on-reserve Projects only);

(ii) Noise study;

(iii) Effluent management study;

(iv) Storm water management;

(v) Surface water;

(vi) Hydrogeology;

(vii) Coastal environment;

(viii) Bird studies;

(ix) Bat studies;

(x) Fish inventory and habitat;

(xi) Breeding amphibians;

(xii) Ecological land classification;

(xiii) Agriculture and forestry, archaeology assessment; and

(xiv) Heritage assessment.

102. PLEEEs Application shall have the meaning given to it in Section 4.5 of the Program Rules.

103. PLEEEs Disbursement means a dollar amount equal to 60% of PLEEEs for Phase II Activities and to 40% of PLEEEs for Phase III Activities, up to a maximum of fifty thousand dollars ($50,000) in aggregate for all PLEEEs.

104. Pre-Launch Eligible External Expenses or PLEEEs means Eligible External Expenses incurred and expended between September 24, 2009 and April 27, 2010 in respect of Phase II Activities or Phase III Activities.

105. Preliminary Connection Statement means a statement by the LDC or Transmitter to whose system the Project is to be connected that there is no current reason to expect that the Project will not be connected to its Distribution System or Transmission System, as the case may be.

AREF PROGRAM RULES

- 36 -

106. Program Rules shall have the meaning given to it in Section 1.2 of the Program Rules.

107. Project shall have the meaning given to it in Section 2.3 of the Program Rules.

108. REA Studies and Plans means those studies and plans necessary or appropriate for the purpose of the Project’s REA and which may include:

(i) Construction Plan: A report describing the details of the construction activities, location and timing, any negative environmental effects and mitigation measures.

(ii) Consultation Report: A minimum of three notifications to the public are required, including conducting two public meetings and a municipal meeting.

(iii) Decommissioning Plan: A plan for decommissioning of the Project.

(iv) Design and Operations Report: A Project site plan, conceptual plans related to both design and operation, and an environmental effects monitoring plan.

(v) Effluent Management Plan Report: An assimilative capacity report.

(vi) Emissions Summary and Dispersion Modeling.

(vii) Hydrogeological Assessment: Assessment of hydrogeological conditions and storage assessment, monitoring and contingency plans.

(viii) Noise Study Report.

(ix) Odour Study Report: Report on processes and sources of odour, environmental effects and mitigation.

(x) Project Description Report: Describes energy sources, equipment, activities, capacity, land ownership, negative environmental effects and Project map.

(xi) Surface Water Assessment Report: Assesses surface water features and storage, monitoring and contingency plans.

(xii) Wind Turbine Specification Report: Specifies wind turbines to be used (applies to Class 3, 4 or 5 wind projects).

(xiii) Natural Heritage Assessment and Archaeology/Cultural Investigation (as required by Ministry of Natural Resources): Report on natural/cultural heritage assessment and water records review, Agency consultation and Project site investigations (boundary delineation only).

(xiv) Crown Land Interest Report (as required by Ministry of Natural Resources): Report on title searches, consent from unpatented mining claim holders, legal

AREF PROGRAM RULES

- 37 -

agreements, mitigation, Project site access controls and measures to address compatibility to existing land use.

109. Regulatory Approvals means, at any time, any approvals, permits or licenses necessary or appropriate for the Project issuable by any Governmental Authority under Laws and Regulations that may be reasonably obtained at such time, including those required by the following Governmental Authorities under the legislation indicated:

(i) Fisheries and Oceans Canada - Fisheries Act;

(ii) Ministry of Natural Resources - Lakes and Rivers Improvement Act, Public Lands Act, Provincial Parks and Conservation Reserves Act, Endangered Species Act, Conservation Authorities Act;

(iii) Transport Canada - Navigable Waters Act;

(iv) Parks Canada - Historic Canals Regulations and National Parks Act;

(v) Environment Canada/Fisheries and Oceans Canada - Species at Risk Act;

(vi) Indian and Northern Affairs Canada - Indian Act, Dominion Water Power Act, Public Lands Licensing;

(vii) Ministry of the Environment - Ontario Water Resources Act and Clean Water Act;

(viii) Ministry of Culture - Ontario Heritage Act; and

(ix) Municipal building permits - applicable municipal legislation and bylaws.

110. Regulatory Approvals Report means a report on the Regulatory Approvals necessary or appropriate for the Project, including copies of applications submitted for all Regulatory Approvals.

111. Renewable Energy Approval or REA means the approval issued by the Ontario Ministry of the Environment under Section 47.3 of the Environmental Protection Act (Ontario).

112. Renewable Fuel means wind, solar (photovoltaic), Biomass, Biogas, landfill gas or waterpower.

113. Renewable Generating Facility means a facility located in Ontario which generates Electricity exclusively from one or more Renewable Fuels and delivers that Electricity through a Meter in accordance with all Laws and Regulations to the IESO-Controlled Grid, a Distribution System or a Host Facility.

114. Required Applicant Contribution means a monetary contribution:

(i) that is not an Internal Applicant Resource;

AREF PROGRAM RULES

- 38 -

(ii) that is in respect of the Costs of an Activity; and

(iii) the source of which is not any grant from any Governmental Authority received less than three years prior to the date of the Application.

115. RES Contract means a contract entered into between a Person and the OPA pursuant to the request for proposals processes of the OPA under its Renewable Energy Supply I, Renewable Energy Supply II or Renewable Energy Supply III programs.

116. RESOP Contract means a contract entered into by the OPA and another Person in respect of the development of a renewable energy generation facility under the OPA’s Renewable Energy Standard Offer Program.

117. Resource Assessment means an assessment of resource or fuel requirements consisting of:

(i) For Wind:

(A) A preliminary wind resource assessment (over) a period of one to twomonths) consisting of basic site screening and pre-feasibility analysis; meteorological tower permitting, installation and commissioning; data validation and cleaning; model setup; constraints definition; wind resource map development; turbine evaluation and layout organization; and

(B) A complete wind resource assessment (over a period of one to two years). A complete resource assessment including data validation and cleaning; updated wind resource map; layout optimization; uncertainty evaluation; estimates of wake, availability, electrical,aerodynamics and other losses; and gross and net energy yield predictions.

(ii) For solar power, a preliminary solar assessment consisting of a basic Project site screen, solar intensity calculations, space availability analysis and other analysis using publicly available date;

(iii) For water power, a preliminary water assessment consisting of validation of available resource information, modeling, making necessary adjustments, defining constraints, energy yield analysis and mapping.

(iv) For Biomass, Biogas and landfill gas:

(A) A preliminary fuel price/availability assessment consisting of an assessment of local fuel availability and pricing and evaluation of energy availability from the fuel source;

(B) A detailed fuel availability study consisting an analysis of sources, types, quantities, quality, and suppliers of fuel; factors influencing

AREF PROGRAM RULES

- 39 -

fuel availability; competition for fuel; a review of the Project’s fuel supply plan; fuel pricing; transportation costs; estimated fuel requirements; and risk assessment;

(C) A preliminary gas production/availability study consisting of field measurements of landfill gas (surface) and desktop modeling of landfill gas availability , evaluation of energy availability from fuel source and the estimated revenue;\\

(D) An assessment of waste disposal issues, including disposal opportunities and Project site capacity; and

(E) For landfill gas only, field measurements of landfill gas (surface) and desktop modeling of landfill gas availability.

118. RETScreen means the RETScreen Clean Energy Project Analysis Software, a decision support tool used to evaluate the energy production and savings, costs, emission reductions, financial viability and risk for various types of renewable-energy and energy-efficient technologies and made available by Natural Resources Canada at: www.retscreen.net.

119. Statement of Expenses means, in respect of a Phase, a statement confirming, in a manner satisfactory to OPA, the expenses incurred by the Applicant in respect of Activities during such Phase, including names of Persons retained to carry out all or part of each Activity, hourly rates, total expenditures for each such Person and description of work carried out by each such Person.

120. Supplier means the Person identified as the supplier on the FIT Contract Cover Page, and, as applicable, its heirs, estate trustees, personal and legal representatives, successors and permitted assigns.

121. Supporting Resolution has the meaning given to it in Section 4.3 of the Program Rules.

122. TAPS Tool means the Transmission Availability and Project Status Tool published by the OPA from time to time pursuant to subsection 5.1(a) of the FIT Rules.

123. Term means the term of the FIT Contract entered or to be entered in respect of the Project.

124. Transmission System means a system for conveying Electricity at voltages of more than 50 kilovolts and includes any structures, equipment or other things used for that purpose.

125. Transmitter means a Person licensed by the OEB as a “transmitter” in connection with a Transmission System.

126. Website means www.aboriginalenergy.ca.

AREF PROGRAM RULES

EXHIBIT APHASE I APPLICATION

[See attached.]

AREF PROGRAM RULES

EXHIBIT BPHASE II APPLICATION

[See attached.]

AREF PROGRAM RULES

EXHIBIT CPHASE III APPLICATION

[See attached.]

AREF PROGRAM RULES

EXHIBIT DPLEEEs APPLICATION

Pre-feasibility Application – AREF - OPA Version 1.0 Page 1 of 13

Aboriginal Renewable Energy FundPre-feasibility Application

Application Instructions:

Step 1: Read the Aboriginal Renewable Energy Fund (AREF) Program Rules

Review the AREF Program Rules to ensure that eligibility criteria are met and to determine if your project meets the assessment criteria. AREF Program Rules can be viewed at www.aboriginalenergy.ca/aref

Step 2: Prepare and Submit the Application

Please ensure you fill out each question in the application form. Applications will not be reviewed until they arecomplete. If you have any questions regarding the application, refer to the Program Rules or contact us at [email protected] or 416-969-6317. Applications are accepted continuously, in a non-competitive manner.

Submit the application online to:

[email protected]

or by mail to:

The Ontario Power Authority120 Adelaide Street West, Suite 1600Toronto, ON M5H 1T1Attention: Aboriginal Renewable Energy Fund

Please ensure supporting documents are mailed to the OPA within 10 Business Days of submitting your application.

Next steps:

After submitting your application, you will be contacted by an OPA staff member to confirm it has been received. Once your application has been reviewed and evaluated, you will be notified of the funding decision. During this process feel free to contact AREF program staff at the above email address or phone number if you have any questions.

Pre-feasibility Application – AREF - OPA Version 1.0 Page 2 of 13

Pre-feasibility Application – AREF - OPA Version 1.0 Page 3 of 13

1. Contact InformationApplicant Information

Name of main contact person: Date:

Title:

Mailing Address:

Telephone: Fax:

Email:

First Nation or Métis Community:Name of person who will sign contract (if different than person identified above):

Title:

Attachment: Supporting Resolution for this project. Please attach a copy with this application or mail to the OPA within 10 Business Days.

2. Community InformationCommunity Information

What resources (financial, human, political, etc) are available in your community to support the development/governance of your project?

Does your community have someone who would serve as the Project Champion or Project Coordinator?

YesNo

If yes, please indicate the person:

How will this project positively impact your community?

Pre-feasibility Application – AREF - OPA Version 1.0 Page 4 of 13

3. Identified Renewable Energy Project OpportunityIdentified Project – General Information

Please indicate the specific renewable energy project opportunity your community has identified:

Wind Bio-fuel Renewable Biomass Bio-gas

Landfill Gas Solar/PVWater, please specify type: ___________________ Other:

Project name (if applicable):

Site Information: Has your community identified a potential site or sites?

YesNo

If yes, please provide the following additional site information: Identify the site location, size, nearest municipality and specify the current use:

Site location within or outside reserve/community

Proposed site is within my reserve/communityProposed site is located outside of my community

Size: Do you know the size of your project? (expressed in MW)

Yes If yes, please specify: _____________________No

Connection: Do you know the connection point(s) for your project?

Yes If yes, please specify: _____________________No

Cost: Have you estimated the total costs for your project?

YesNo

If yes, please specify these costs:

FIT: Has your project applied to the Feed-In Tariff (FIT) Program? Yes

No

If yes please specify:Registration ID:

Reference Number:

Contract Identification Number (if applicable):

Has your community undertaken any pre-feasibility work/studies? Yes

No

If yes, please list all pre-feasibility activities undertaken to date:

Pre-feasibility Application – AREF - OPA Version 1.0 Page 5 of 13

4. Other FundingHave you or are you receiving any other funding related to this project?

YesNo

If yes, please indicate the source of funding and the amount you have received or are expecting to receive?

INAC ________________________________

ecoENERGY ___________________________

New Relationship Fund __________________

Ontario Trillium Foundation________________

Project Partner _________________________

Other ________________________________

5. Additional InformationIf there is anything else you would like us to know about your project, please provide the information below.

Is this application a resubmission of one or more previous applications for the same project? Yes. Please indicate when the previous Pre-Feasibility application(s) were submitted and explain why you are resubmitting:

_______________________________________________________________________________________________________

_______________________________________________________________________________________________________

No, this is the first time a Pre-Feasibility application has been submitted for this project

Pre-feasibility Application – AREF - OPA Version 1.0 Page 6 of 13

Pre-feasibility Application – AREF - OPA Version 1.0 Page 7 of 13

6. Funding ProposalPlease provide a summary of all project work undertaken to-date and outline all pre-feasibility activities you require funding for. Include details about the expected costs, timelines for each activity, persons who will carry out the work, and any other relevant details. Please include information about how this funding will be used for the project and include how you plan to pay for the costs not covered by the AREF.

Pre-feasibility Application – AREF - OPA Version 1.0 Page 8 of 13

7. Pre-feasibility Activities - Request for FundingBased upon the funding proposal in Item 6, check off all pre-feasibility activities you require funding for. See the Program Rules for a more complete description of the Pre-Feasibility Activities and Deliverables.Please indicate in the spaces below how and when you plan on undertaking the activities you require funding for.

1. Site identification

2. Identify the person(s) (Interested Persons) who have or may have an interest in the project or site

3. Initial resource identification and assessment

4. Connection point identification and review

5. Total project cost estimate

6. Preliminary Economic Evaluation

7. Provide information to the governing Council or Local of the Aboriginal Community

8. Traditional Knowledge Studies

All of the Above If funding for all pre-feasibility activities is required, a completed Preliminary Business Plan, comprised of the all the aforementioned activities, is required upon the completion of all Phase I Pre-Feasibility activities.

Other Please note, activities eligible for funding are listed in the Program Rules, however, if funding is required for a pre-feasibility activity not listed, please provide a rationale and it may be considered.

Pre-feasibility Application – AREF - OPA Version 1.0 Page 9 of 13

Attachments: Resumes and CVs of people carrying out all project work.

8. Personnel/Consultants/StaffHow are you planning to undertake all the necessary work?

In-house personnelExternal consultantsBoth in-house personnel and external consultants

If using external consultants, did you use a tender process?

YesNo

If yes, was it a public tendering process or was it by invitation only?

PublicInvitation only

When did you issue the tender? ____________________

How many bids did you receive? ___________________

What bid was chosen and why?

____________________________________________________________________________________________

____________________________________________________________________________________________

____________________________________________________________________________________________

Provide details about the qualifications of the people who will carry out the project work including professional designations and experience with other renewable energy projects. Please attach any relevant information such as resumes and CVs.

Pre-feasibility Application – AREF - OPA Version 1.0 Page 10 of 13

*Includes GST and PST

9. Pre-Feasibility Phase Total Funding RequestProvide the total amount of funding you are requesting. Please provide a breakdown of the costs associated with each activity including the expected start and completion date and specifying internal or external resources to be used for each activity.

Note: Successful applicants are eligible for 80% of eligible Phase I Project Expenses, up to a maximum of $20,000. Please see Program Rules for more information.

TOTAL REQUEST FOR AREF FUNDING:

Activity Expected start date Expected completion date

Internal Personnel or External Consultants

Total Actual Cost*

In-houseExternalIn-houseExternalIn-houseExternalIn-houseExternalIn-houseExternalIn-houseExternalIn-houseExternalIn-houseExternalIn-houseExternal

Pre-feasibility Application – AREF - OPA Version 1.0 Page 11 of 13

Declaration:

I represent and warrant to and agree with the OPA, and acknowledge that the OPA is relying on such representations, warranties and agreements as a condition to review and, if applicable, acceptance of this Application and subsequent entry into a Funding Contract, as follows:

(a) This Application has been completed and responses provided to the best of the Applicant’s knowledge and belief and the information provided in this Application is accurate and complete;

(b) All required supporting documents have been attached to this Application;

(c) I acknowledge that this Application will not be processed by the OPA unless it is complete; and

(d) I have read and am submitting the Application in compliance with the Program Rules and acknowledge and agree that this Application shall be subject to the Program Rules and that theApplicant shall be bound by such Program Rules in relation to the subject matter of this Application.

I incorporate by reference the further representations, warranties and agreements set out in Section 4.6 of the Program Rules and hereby restate such representations, warranties and agreements for the benefit of the OPA.

Date: ______________________________

For an individual:

Witness:________________________(signature) By:_______________________ (signature)

Name:________________________ (print)

For a Corporation or Community:

Name of Applicant corporation or Community (print):________________________________ By:____________________________________(signature)Name (print):Title (print)

I have authority to bind the corporation/community.

For a Limited Partnership:

Name of Applicant limited partnership (print):________________________________ By its general partner:____________________________________(signature)Name (print):Title (print):

I have authority to bind the general partner.

Pre-feasibility Application – AREF - OPA Version 1.0 Page 12 of 13

Thank you for your AREF Pre-feasibility Application

Questions?

For questions about this application or the Aboriginal Renewable Energy Fund in general, please send an email inquiry to [email protected] or contact 416-969-6317.

Terms & Conditions

I acknowledge and agree that the Terms and Conditions set out in Section 4.7 of the Program Rules are incorporated by reference in this Application and agree to be bound thereby. Notwithstanding that the Application was drafted by the OPA’s legal and other professional advisors, the Applicant acknowledges and agrees that any doubt or ambiguity in the meaning, application or enforceability of any term or provision of this Application shall not be construed or interpreted against the OPA or in favour of the Applicant when interpreting such term or provision, by virtue of such fact.

Independent Legal Advice

I HAVE HAD THE OPPORTUNITY TO SEEK INDEPENDENT LEGAL ADVICE WITH RESPECT TO THE PROGRAM RULES AND THIS APPLICATION AND ACKNOWLEDGE THAT THE OPA HAS ADVISED THAT I RETAIN LEGAL COUNSEL WITH RESPECT TO THE SUBJECT MATTER OF THIS APPLICATION.

Design & Development Application – AREF - OPA Version 1.0 Page 1 of 17

Aboriginal Renewable Energy FundDesign & Development Application

Application Instructions:

Step 1: Read the Aboriginal Renewable Energy Fund (AREF) Program Rules

Review the AREF Program Rules to ensure that eligibility criteria are met and to determine if your project meets the assessment criteria. AREF Program Rules can be viewed at www.aboriginalenergy.ca/aref. Please be advised that in order to receive AREF funding for the Design & Development phase, you must have completed at least one of the following: completed all Phase I Pre-Feasibility activities or submitted an application to the FIT Program. Please see the Program Rules for more information.

Step 2: Prepare and Submit the Application

Please ensure you fill out each question in the application form. Applications will not be reviewed until they are complete. If you have any questions regarding the application, refer to the Program Rules or contact us at [email protected] or 416-969-6317. Applications are accepted continuously, in a non-competitive manner.

Submit the application online to:

[email protected]

or by mail to:

The Ontario Power Authority120 Adelaide Street West, Suite 1600Toronto, ON M5H 1T1Attention: Aboriginal Renewable Energy Fund

Please ensure supporting documents are mailed to the OPA within 10 Business Days of submitting your application.

Next steps:

After submitting your application, you will be contacted by an OPA staff member to confirm it has been received. Once your application has been reviewed and evaluated, you will be notified of the funding decision. During this process feel free to contact AREF program staff at the above email address or phone number if you have any questions.

Design & Development Application – AREF - OPA Version 1.0 Page 2 of 17

Design & Development Application – AREF - OPA Version 1.0 Page 3 of 17

1. Contact InformationApplicant Information

Name of main contact person: Date:

Title:

Mailing Address:

Telephone: Fax:

Email:

First Nation or Métis Community:Name of person who will sign contract (if different than person identified above):

Title:

Attachment: Supporting Resolution. If you have not submitted a Supporting Resolution for a previous phase of funding for this project, please attach a copy with this application or mail to the OPA within 10 Business Days.

2. Community InformationCommunity Information

What resources (financial, human, political, etc) are available in your community to support the development/governance of your project?

Does your community have someone who would serve as the Project Champion or Project Coordinator?

YesNo

If yes, please indicate the person:

How will this project positively impact your community?

Design & Development Application – AREF - OPA Version 1.0 Page 4 of 17

3. Identified Renewable Energy Project Project Information

What is the project name?

Please indicate the specific renewable energy project opportunity your community has identified:

Wind Bio-fuel Renewable Biomass Bio-gas

Landfill Gas Solar/PV, please specify type: _________________Water, please specify type: ___________________ Other:

Identified project type: New build Expansion Other:

If this is an expansion, please provide information about the existing project (eg. size, current nameplate or contract capacity, expected additional capacity)

What is the contract capacity (expressed in MW):

Nameplate capacity (expressed MW):

Identify the site location, size, nearest municipality and specify the current use:

Site location within or outside reserve/community:

Proposed site is within my reserve/communityProposed site is external to my reserve/community

State your connection point and provide any additional information:

Estimated Total Cost of Project:

Has your community applied to the FIT Program? Yes

No

If yes please specify:Registration ID:

Reference Number:

Contract Identification Number (if applicable):

If no, when does your community plan on applying to the FIT Program?

Has your community completed any pre-feasibility studies?

YesNo

Has your community started any Design and Development activities yet (see Program Rules)?

YesNo

If yes, please list all Design and Development activities undertaken to date:

4. Other Funding

Design & Development Application – AREF - OPA Version 1.0 Page 5 of 17

Have you or are you receiving any other funding related to this project?

YesNo

If yes, please indicate the source of funding and the amount you have received or are expecting to receive?

INAC _________________________________

ecoENERGY ___________________________

New Relationship Fund _________________

Ontario Trillium Foundation_______________

Project Partner ________________________

Other ________________________________

5. Additional InformationIf there is anything else you would like us to know about your project, please provide the information below.

Is this the first time you are applying for AREF funding? Yes. No. Please specify when you applied, type of project and for what phase of funding you applied for.

________________________________________________________________________________________________________

________________________________________________________________________________________________________

Is this application a resubmission of one or more previous Design & Development applications for the same project? Yes. Please indicate when the previous Design & Development application(s) were submitted and explain why you are resubmitting: ______________________________________________________________________________________________________

_______________________________________________________________________________________________________

No, this is the first time a Design & Development application has been submitted for this project

Design & Development Application – AREF - OPA Version 1.0 Page 6 of 17

Design & Development Application – AREF - OPA Version 1.0 Page 7 of 17

6. Phase II Funding EligibilityPlease read the following to determine the activities your project is eligible for.

A) If you have completed all Phase I Deliverables (whether or not funded under AREF) or have submitted a FIT application, you are eligible to receive funding for Phase II A only.

B) If you have a FIT Contract, you are eligible to receive funding for Phase II A and Phase II B.

C) If you have applied to the FIT Program and have received confirmation that you have entered the FIT Production Line, you are eligible to receive funding for Phase II A and Phase II B.

Please identify which category corresponds to your project:

A) Phase II A funding (have completed all Phase I Deliverables but have not submitted a FIT application)

B) Phase II A and B funding (received a FIT contract)

C) Phase II A and B funding (FIT application is in the FIT Production Line)

7. Funding ProposalPlease provide a summary of all project work undertaken to-date and outline all Phase II activities you require funding for. Include details about the expected costs, timelines for each activity, persons who will carry out the work, and any other relevant details. Please include information about how this funding will be used for the project and include how you plan to pay for the costs not covered by the AREF.

8. Phase II-A Activities – Request for Funding

Design & Development Application – AREF - OPA Version 1.0 Page 8 of 17

Based upon the funding proposal in Item 7, check off all Phase II-A activities you require funding for. See the Program Rules for a more complete description of the Activities and Deliverables. The Deliverables for each activity are also outlined in Appendix A of this application form.Please indicate in the spaces below how and when you plan on undertaking the activities you require funding for.

Analysis of potential environmental constraints

Identification and review of required regulatory approvals

Obtaining site control (may include third party negotiations)

Preliminary capital cost estimates and equipment specifications, including domestic content compliance plan

Resource Assessment(only if site control has been obtained)

Other

Please note: activities eligible for funding are listed in the Program Rules, however, if funding is required for a pre-feasibility activity not listed, please provide a rationale and it may be considered.

9. Phase II-B Activities – Request for Funding

Design & Development Application – AREF - OPA Version 1.0 Page 9 of 17

Based upon the funding proposal in Item 7, check off all Phase II-B activities you require funding for. See the Program Rules for a more complete description of the Activities and Deliverables. Please indicate in the spaces below how and when you plan on undertaking the activities you require funding for.

Engineering studies

Resource control such asfuel contract negotiations for projects other than water power, wind or solar facilities(may include engaging legal counsel)

For water power projects:

Water-use rights, licenses, permits Plan of Development (MNR template) Applying for a water power lease agreement and multi- use work permit

Business Plan

Other

Please note: activities eligible for funding are listed in the Program Rules, however, if funding is required for a pre-feasibility activity not listed, please provide a rationale and it may be considered.

Design & Development Application – AREF - OPA Version 1.0 Page 10 of 17

*Includes GST and PST

10. Phase II Total Funding RequestProvide the total amount of funding you are requesting. Please provide a breakdown of the costs associated with each activity including the expected start and completion date.

TOTAL REQUEST FOR AREF FUNDING:

Activity Expected start date

Expected completion date

Total Actual Cost*

Design & Development Application – AREF - OPA Version 1.0 Page 11 of 17

Design & Development Application – AREF - OPA Version 1.0 Page 12 of 17

11. TenderingPlease fill out this section for each tender issued. Please print off and fill out as many tender forms as required. Please submit a copy of the Tender or Request for Quote within 10 Business Days of submitting application.Activity or activities tendered for:

Date of tender: Tender closing date:

Total number of bids received:Was it a public tendering process or was it by invitation only?

PublicInvitation only

Please provide details about the top three bids received below:Tender 1:Company/Firm:

Name of key contact person:

Address:

Telephone: Fax:

Email:

Have you previously used this company’s services? Yes

NoTotal price of quote

Hourly rate(s) ___________________Flat fee

Expected start date:

Expected completion date:

Design & Development Application – AREF - OPA Version 1.0 Page 13 of 17

Tender 2:Company/Firm:

Name of key contact person:

Address:

Telephone: Fax:

Email:

Have you previously used this company’s services? Yes

NoTotal price of quote

Hourly rate(s) ____________________Flat fee

Expected start date:

Expected completion date:

Tender 3:Company/Firm:

Name of key contact person:

Address:

Telephone: Fax:

Email:

Have you previously used this company’s services? Yes

NoTotal price of quote

Hourly rate(s) ______________________Flat fee

Expected start date:

Expected completion date:

Design & Development Application – AREF - OPA Version 1.0 Page 14 of 17

Attachments: Resumes and CVs of people carrying out all project work.

Tender DecisionWhat bid was chosen?

Rationale for choice:

Qualifications of successful bidderProvide details about the qualifications of the people who will carry out the project work including professional designations and experience with other renewable energy projects. Please attach any relevant information such as resumes and CVs.

Design & Development Application – AREF - OPA Version 1.0 Page 15 of 17

Declaration:

I represent and warrant to and agree with the OPA, and acknowledge that the OPA is relying on such representations, warranties and agreements as a condition to review and, if applicable, acceptance of this Application and subsequent entry into a Funding Contract, as follows:

(a) This Application has been completed and responses provided to the best of the Applicant’s knowledge and belief and the information provided in this Application is accurate and complete;

(b) All required supporting documents have been attached to this Application;

(c) I acknowledge that this Application will not be processed by the OPA unless it is complete; and

(d) I have read and am submitting the Application in compliance with the Program Rules and acknowledge and agree that this Application shall be subject to the Program Rules and that the Applicant shall be bound by such Program Rules in relation to the subject matter of this Application.

I incorporate by reference the further representations, warranties and agreements set out in Section 4.6 of the Program Rules and hereby restate such representations, warranties and agreements for the benefit of the OPA.

Date: ______________________________

For an individual:

Witness:________________________(signature) By:_______________________ (signature)

Name:________________________ (print)

For a Corporation or Community:

Name of Applicant corporation or Community (print):________________________________ By:____________________________________(signature)Name (print):Title (print)

I have authority to bind the corporation/community.

For a Limited Partnership:

Name of Applicant limited partnership (print):________________________________ By its general partner:____________________________________(signature)Name (print):Title (print):

I have authority to bind the general partner.

Design & Development Application – AREF - OPA Version 1.0 Page 16 of 17

Thank you for your AREF Design & Development Application

Questions?

For questions about this application or the Aboriginal Renewable Energy Fund in general, please send an email inquiry to [email protected] or contact 416-969-6317.

Terms & Conditions

I acknowledge and agree that the Terms and Conditions set out in Section 4.7 of the Program Rules are incorporated by reference in this Application and agree to be bound thereby. Notwithstanding that the Application was drafted by the OPA’s legal and other professional advisors, the Applicant acknowledges and agrees that any doubt or ambiguity in the meaning, application or enforceability of any term or provision of this Application shall not be construed or interpreted against the OPA or in favour of the Applicant when interpreting such term or provision, by virtue of such fact.

Independent Legal Advice

I HAVE HAD THE OPPORTUNITY TO SEEK INDEPENDENT LEGAL ADVICE WITH RESPECT TO THE PROGRAM RULES AND THIS APPLICATION AND ACKNOWLEDGE THAT THE OPA HAS ADVISED THAT I RETAIN LEGAL COUNSEL WITH RESPECT TO THE SUBJECT MATTER OF THIS APPLICATION.

Regulatory Approvals Application – AREF - OPA Version 1.0 Page 1 of 18

Aboriginal Renewable Energy FundRegulatory Approvals Application

Application Instructions:

Step 1: Read the Aboriginal Renewable Energy Fund (AREF) Program Rules

Review the AREF Program Rules to ensure that eligibility criteria are met and to determine if your project meets the assessment criteria. AREF Program Rules can be viewed at www.aboriginalenergy.ca/aref. Please be advised that in order to receive AREF funding for the Regulatory Approvals phase, you must have a FIT Contract. Please see the Program Rules for more information.

Step 2: Prepare and Submit the Application

Please ensure you fill out each question in the application form. Applications will not be reviewed until they are complete. If you have any questions regarding the application, refer to the Program Rules or contact us at [email protected] or 416-969-6317. Applications are accepted continuously, in a non-competitive manner.

Submit the application online to:

[email protected]

or by mail to:

The Ontario Power Authority120 Adelaide Street West, Suite 1600Toronto, ON M5H 1T1Attention: Aboriginal Renewable Energy Fund

Please ensure supporting documents are mailed to the OPA within 10 Business Days of submitting your application.

Next steps:

After submitting your application, you will be contacted by an OPA staff member to confirm it has been received. Once your application has been reviewed and evaluated, you will be notified of the funding decision. During this process feel free to contact AREF program staff at the above email address or phone number if you have any questions.

Regulatory Approvals Application – AREF - OPA Version 1.0 Page 2 of 18

Regulatory Approvals Application – AREF - OPA Version 1.0 Page 3 of 18

Attachment: Supporting Resolution. If you have not submitted a Supporting Resolution for a previous phase of funding for this project, please attach a copy with this application or mail to the OPA within 10 Business Days.

1. Contact InformationApplicant Information

Name of main contact person: Date:

Title:

Mailing Address:

Telephone: Fax:

Email:

First Nation or Métis Community:Name of person who will sign contract (if different than person identified above):

Title:

2. Community InformationCommunity Information

What resources (financial, human, political, etc) are available in your community to support the development/governance of your project?

Does your community have someone who would serve as the Project Champion or Project Coordinator?

YesNo

If yes, please indicate the person:

How will this project positively impact your community?

Regulatory Approvals Application – AREF - OPA Version 1.0 Page 5 of 18

3. Identified Renewable Energy Project Project Information

Project Name:Please indicate the specific renewable energy project opportunity your community has identified:

Wind Bio-fuel Renewable Biomass Bio-gas

Landfill Gas Solar/PV, please specify type: _________________Water, please specify type: ___________________ Other:

Identified project type: New build Expansion Other:

If this is an expansion, please provide information about the existing project (eg. size, current nameplate or contract capacity, expected additional capacity) :

What is the contract capacity (expressed in MW):

Nameplate capacity (expressed MW):

Identify the site location, nearestmunicipality and specify the current use:

Site location within or outside reserve/community:

Site is within my reserve/communitySite is outside of my reserve/community

Indicate level of site control:

State your connection point and provide any additional information:

Estimated Total Cost of Project:

Have you completed an environmental constraints analysis? Yes

No

If yes, have any constraints been identified?

YesNo

If yes, please specify:

FIT Contract Identification Number: Date of FIT contract:

Have you considered suppliers for your equipment and materials? Yes

No

If yes, does the equipment meet FIT domestic content requirements?YesNoI don’t know. See the FIT website for more information about domestic

content requirements. http://fit.powerauthority.on.ca/

Please outline all Regulatory Approvals required for your Project:

If yes, please specify which ones:

Regulatory Approvals Application – AREF - OPA Version 1.0 Page 6 of 18

Has your community started any studies, research or plans required for any required regulatory approvals?

YesNo

4. Other FundingHave you or are you receiving any other funding related to this project?

YesNo

If yes, please indicate the source of funding and the amount you have received or are expecting to receive?

INAC _________________________________

ecoENERGY ___________________________

New Relationship Fund _________________

Ontario Trillium Foundation_______________

Project Partner ________________________

Other ________________________________

Regulatory Approvals Application – AREF - OPA Version 1.0 Page 7 of 18

5. Additional InformationIf there is anything else you would like us to know about your project, please provide the information below.

Is this the first time you are applying for AREF funding? Yes. No. Please specify when you applied, type of project and for what phase of funding you applied for.

________________________________________________________________________________________________________

________________________________________________________________________________________________________

Is this application a resubmission of one or more previous Regulatory Approvals applications for the same project? Yes. Please indicate when the previous Regulatory Approvals application(s) were submitted and explain why you are resubmitting: ______________________________________________________________________________________________________

_______________________________________________________________________________________________________

No, this is the first time a Regulatory Approvals application has been submitted for this project

Regulatory Approvals Application – AREF - OPA Version 1.0 Page 8 of 18

Regulatory Approvals Application – AREF - OPA Version 1.0 Page 9 of 18

6. Funding ProposalPlease provide a summary of all project work undertaken to-date and outline all Phase III activities you require funding for. Include details about the expected costs, timelines for each activity, persons who will carry out the work, and any other relevant details. Please include information about how this funding will be used for the project and include how you plan to pay for the costs not covered by the AREF.

Regulatory Approvals Application – AREF - OPA Version 1.0 Page 10 of 18

7. Regulatory Approvals Phase Activities - Request for FundingBased upon the funding proposal in Item 6, check off all Phase III activities you require funding for. See the Program Rules for a more complete description of the Activities and Deliverables. Note: To be eligible for Phase III funding, the project MUST have been awarded a FIT Contract prior to submitting this application.Please indicate in the spaces below how you plan on undertaking the activities you require funding for.

For a water power project, conduct a water power environmental assessment according to the Ontario Environmental Assessment Act.

Please specify specific studies:

An environmental assessment for projects on Crown or Reserve land, or otherwise required.

Please specify specific studies:

Studies required for a Renewable Energy Approval

Please specify specific studies:

Obtain all required and appropriate additional Regulatory Approvals

Please specify specific studies:

Carry out applicable Phase III Site-specific studies (see Program Rules for description)

Please specify specific studies:

OtherNote: If funding is required for a Phase III activity not listed in the AREF Program Rules, please provide a rationale and it may be considered.

Regulatory Approvals Application – AREF - OPA Version 1.0 Page 11 of 18

*Includes GST and PST

8. Phase III Total Funding RequestProvide the total amount of funding you are requesting. Please provide a breakdown of the costs associated with each activity including the expected start and completion date.

TOTAL REQUEST FOR AREF FUNDING:

Activity Expected start date

Expected completion date

Total Actual Cost*

Regulatory Approvals Application – AREF - OPA Version 1.0 Page 12 of 18

Regulatory Approvals Application – AREF - OPA Version 1.0 Page 13 of 18

9. TenderingPlease fill out this section for each tender issued. Please print off and fill out as many tender forms as required. Please submit a copy of the Tender or Request for Quote within 10 Business Days of submitting application.Activity or activities tendered for:

Date of tender: Tender closing date:

Total number of bids received:Was it a public tendering process or was it by invitation only?

PublicInvitation only

Please provide details about the top three bids received below:Tender 1:Company/Firm:

Name of key contact person:

Address:

Telephone: Fax:

Email:

Have you previously used this company’s services? Yes

NoTotal price of quote:

Hourly rate(s) ___________________Flat fee

Expected start date:

Expected completion date:

Regulatory Approvals Application – AREF - OPA Version 1.0 Page 14 of 18

Tender 2:Company/Firm:

Name of key contact person:

Address:

Telephone: Fax:

Email:

Have you previously used this company’s services? Yes

NoTotal price of quote:

Hourly rate(s) ____________________Flat fee

Expected start date:

Expected completion date:

Tender 3:Company/Firm:

Name of key contact person:

Address:

Telephone: Fax:

Email:

Have you previously used this company’s services? Yes

NoTotal price of quote:

Hourly rate(s) ______________________Flat fee

Expected start date:

Expected completion date:

Regulatory Approvals Application – AREF - OPA Version 1.0 Page 15 of 18

Attachments: Resumes and CVs of people carrying out all project work.

Tender DecisionWhat bid was chosen?

Rationale for choice:

Qualifications of successful bidderProvide details about the qualifications of the people who will carry out the project work including professional designations and experience with other renewable energy projects. Please attach any relevant information such as resumes and CVs.

Regulatory Approvals Application – AREF - OPA Version 1.0 Page 16 of 18

Declaration:

I represent and warrant to and agree with the OPA, and acknowledge that the OPA is relying on such representations, warranties and agreements as a condition to review and, if applicable, acceptance of this Application and subsequent entry into a Funding Contract, as follows:

(a) This Application has been completed and responses provided to the best of the Applicant’s knowledge and belief and the information provided in this Application is accurate and complete;

(b) All required supporting documents have been attached to this Application;

(c) I acknowledge that this Application will not be processed by the OPA unless it is complete; and

(d) I have read and am submitting the Application in compliance with the Program Rules and acknowledge and agree that this Application shall be subject to the Program Rules and that the Applicant shall be bound by such Program Rules in relation to the subject matter of this Application.

I incorporate by reference the further representations, warranties and agreements set out in Section 4.6 of the Program Rules and hereby restate such representations, warranties and agreements for the benefit of the OPA.

Date: ______________________________

For an individual:

Witness:________________________(signature) By:_______________________ (signature)

Name:________________________ (print)

For a Corporation or Community:

Name of Applicant corporation or Community (print):________________________________ By:____________________________________(signature)Name (print):Title (print)

I have authority to bind the corporation/community.

For a Limited Partnership:

Name of Applicant limited partnership (print):________________________________ By its general partner:____________________________________(signature)Name (print):Title (print):

I have authority to bind the general partner.

Regulatory Approvals Application – AREF - OPA Version 1.0 Page 17 of 18

Thank you for your AREF Regulatory Approvals Phase Application

Questions?

For questions about this application or the Aboriginal Renewable Energy Fund in general, please send an email inquiry to [email protected] or contact 416-969-6317.

Terms & Conditions

I acknowledge and agree that the Terms and Conditions set out in Section 4.7 of the Program Rules are incorporated by reference in this Application and agree to be bound thereby. Notwithstanding that the Application was drafted by the OPA’s legal and other professional advisors, the Applicant acknowledges and agrees that any doubt or ambiguity in the meaning, application or enforceability of any term or provision of this Application shall not be construed or interpreted against the OPA or in favour of the Applicant when interpreting such term or provision, by virtue of such fact.

Independent Legal Advice

I HAVE HAD THE OPPORTUNITY TO SEEK INDEPENDENT LEGAL ADVICE WITH RESPECT TO THE PROGRAM RULES AND THIS APPLICATION AND ACKNOWLEDGE THAT THE OPA HAS ADVISED THAT I RETAIN LEGAL COUNSEL WITH RESPECT TO THE SUBJECT MATTER OF THIS APPLICATION.

OPA AREF Application for Reimbursement – Version 1.0 Page 1 of 11

Aboriginal Renewable Energy FundApplication for Reimbursement

Application Instructions:

Step 1: Read the Aboriginal Renewable Energy Fund (AREF) Program Rules

Review the AREF Program Rules to determine if your project is eligible for reimbursement. AREF Program Rules can be viewed at www.aboriginalenergy.ca/aref. Please be advised that in order to receive reimbursement of Pre-Launch Eligible External Expenses, you must have incurred costs for Phase II and/or Phase III activities between September 24, 2009 and April 27, 2010 and must have submitted this application by July 28, 2010. Please see the Program Rules for more information about reimbursement eligibility.

Step 2: Prepare and Submit the Application

Ensure you fill out each question in the application form. Applications will not be reviewed until they are complete. If you have any questions regarding the application, refer to the Program Rules or contact us at [email protected] or 416-969-6317. Please be advised that while Phase I, II and III applications are accepted continuously in a non-competitive manner, AREF Reimbursement Applications will be accepted until July 28, 2010.

Submit the application online to:

[email protected]

or by mail to:

The Ontario Power Authority120 Adelaide Street West, Suite 1600Toronto, ON M5H 1T1Attention: Aboriginal Renewable Energy Fund

Please ensure supporting documents are mailed to the OPA within 10 Business Days of submitting your application.

Next steps:

After submitting your application, you will be contacted by an OPA staff member to confirm it has been received. Once your application has been reviewed and evaluated, you will be notified of the funding decision. During this process feel free to contact AREF program staff at the above email address or phone number if you have any questions.

OPA AREF Application for Reimbursement – Version 1.0 Page 2 of 11

OPA AREF Application for Reimbursement – Version 1.0 Page 3 of 11

1. Contact InformationApplicant Information

Name of main contact person: Date:

Title:

Mailing Address:

Telephone: Fax:

Email:

First Nation or Métis Community:Name of person who will sign contract (if different than person identified above):

Title:

2. Community InformationCommunity Information

What resources (financial, human, political, etc) are available in your community to support the development/governance of your project?

Does your community have someone who would serve as the Project Champion or Project Coordinator?

YesNo

If yes, please indicate the person:

How will this project positively impact your community?

Do you have a Supporting Resolution for this project?

YesNo

If yes, please attach a copy with this application or mail to the OPA within 10 Business Days.

OPA AREF Application for Reimbursement – Version 1.0 Page 4 of 11

3. Identified Renewable Energy Project Project Information

Project Name:

Please indicate the specific renewable energy project opportunity your community has identified:

Wind Bio-fuel Renewable Biomass Bio-gas

Landfill Gas Solar/PV, please specify type: _________________Water, please specify type: ___________________ Other:

Identified project type: New build Expansion Other:

If this is an expansion, please provide information about the existing project (eg. size, current nameplate or contract capacity, expected additional capacity) :

What is the contract capacity (expressed in MW):

Nameplate capacity (expressed MW):

Identify the site location, size, nearest municipality and specify the current use:

Site location within or outside reserve/community:

Proposed site is within my reserve/communityProposed site is outside my reserve/community

State your connection point and provide any additional information:

Estimated Total Cost of Project:

FIT Registration ID:

FIT Reference Number:

FIT Contract Identification Number (if applicable):

OPA AREF Application for Reimbursement – Version 1.0 Page 5 of 11

4. Other FundingHave you or are you receiving any other funding for activities related to this project?

YesNo

If yes, please indicate the source of funding and the amount you have received or are expecting to receive?

INAC ______________ __________________

ecoENERGY ___________________________

New Relationship Fund _________________

Ontario Trillium Foundation_______________

Project Partner ________________________

Other ________________________________

5. Additional InformationIf there is anything else you would like us to know about your project, please provide the information below.

Are you planning to apply for additional AREF funding? Yes No

OPA AREF Application for Reimbursement – Version 1.0 Page 6 of 11

OPA AREF Application for Reimbursement – Version 1.0 Page 7 of 11

6. Eligibility for ReimbursementYour project is eligible to receive reimbursement if:

A) If you incurred costs for Phase II or Phase III between September 24, 2009 and April 27, 2010; and

B) If you have submitted a FIT application or if you have received a FIT Contract; and

C) If you have receipts of all project work completed during September 24, 2009 and April 27, 2010; and

D) If you are submitting this application before July 28, 2010.

Please be advised that 60% of Phase II activity costs and 40% of Phase III activity costs are eligible for reimbursement up to a maximum of $50,000. Please see Program Rules for an overview of Phase II and Phase III activities.

7. Funding ProposalPlease provide a summary of all project work undertaken to-date and outline all activities you require reimbursementfor. Include details about the actual costs, timelines for each activity, people who carried out the work, and any other relevant details. Please include information about how this funding will be used for your project and your future project plans.

OPA AREF Application for Reimbursement – Version 1.0 Page 8 of 11

*Includes GST and PSTAttachments: Provide copies of receipts and invoices for all work completed.

8. Total Request for ReimbursementList all activities you require funding for and describe how and when the work was completed. See the Program Rules for a more complete description of the Activities and Deliverables.

TOTAL REQUEST FOR AREF REIMBURSEMENT:

Activity Description of how and when work was completed including start date and completion date, if applicable.

Total Actual Cost of Activity*

OPA AREF Application for Reimbursement – Version 1.0 Page 9 of 11

Attachments: Resumes and CVs of people carrying out all project work.

9. Personnel/Consultants/StaffWho completed the work?

In-house personnelExternal consultantsBoth in-house personnel and external consultants

If external consultants were used, did you use a tender process? Yes

No

If yes, please attach proof of tendering with application or submit copies within 10 Business Days.

What bid was chosen and why?

OPA AREF Application for Reimbursement – Version 1.0 Page 10 of 11

Declaration:

I represent and warrant to and agree with the OPA, and acknowledge that the OPA is relying on such representations, warranties and agreements as a condition to review and, if applicable, acceptance of this Application and subsequent entry into a Funding Contract, as follows:

(a) This Application has been completed and responses provided to the best of the Applicant’s knowledge and belief and the information provided in this Application is accurate and complete;

(b) All required supporting documents have been attached to this Application;

(c) I acknowledge that this Application will not be processed by the OPA unless it is complete; and

(d) I have read and am submitting the Application in compliance with the Program Rules and acknowledge and agree that this Application shall be subject to the Program Rules and that the Applicant shall be bound by such Program Rules in relation to the subject matter of this Application.

I incorporate by reference the further representations, warranties and agreements set out in Section 4.6 of the Program Rules and hereby restate such representations, warranties and agreements for the benefit of the OPA.

Date: ______________________________

For an individual:

Witness:________________________(signature) By:_______________________ (signature)

Name:________________________ (print)

For a Corporation or Community:

Name of Applicant corporation or Community (print):________________________________ By:____________________________________(signature)Name (print):Title (print)

I have authority to bind the corporation/community.

For a Limited Partnership:

Name of Applicant limited partnership (print):________________________________ By its general partner:____________________________________(signature)Name (print):Title (print):

I have authority to bind the general partner.

OPA AREF Application for Reimbursement – Version 1.0 Page 11 of 11

Thank you for your Application for Reimbursement

Questions?

For questions about this application or the Aboriginal Renewable Energy Fund in general, please send an email inquiry to [email protected] or contact 416-969-6317.

Terms & Conditions

I acknowledge and agree that the Terms and Conditions set out in Section 4.7 of the Program Rules are incorporated by reference in this Application and agree to be bound thereby. Notwithstanding that the Application was drafted by the OPA’s legal and other professional advisors, the Applicant acknowledges and agrees that any doubt or ambiguity in the meaning, application or enforceability of any term or provision of this Application shall not be construed or interpreted against the OPA or in favour of the Applicant when interpreting such term or provision, by virtue of such fact.6666910.2

Independent Legal Advice

I HAVE HAD THE OPPORTUNITY TO SEEK INDEPENDENT LEGAL ADVICE WITH RESPECT TO THE PROGRAM RULES AND THIS APPLICATION AND ACKNOWLEDGE THAT THE OPA HAS ADVISED THAT I RETAIN LEGAL COUNSEL WITH RESPECT TO THE SUBJECT MATTER OF THIS APPLICATION.