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delwp.vic.gov.au

High Voltage Customer Assistance Program (HCAP)

Grant Application Guidelines

© The State of Victoria Department of Environment, Land, Water and Planning 2018This work is licensed under a Creative Commons Attribution 4.0 International licence. You are free to re-use the work under that licence, on the condition that you credit the State of Victoria as author. The licence does not apply to any images, photographs or branding, including the Victorian Coat of Arms, the Victorian Government logo and the

Department of Environment, Land, Water and Planning (DELWP) logo. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/

DisclaimerThis publication may be of assistance to you but the State of Victoria and its employees do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication.

AccessibilityIf you would like to receive this publication in an alternative format, please telephone the Grants Information Line on 1300 366 356 or email grantsinfo@delwp.vic.gov.au, or via the National Relay Service on 133 677 www.relayservice.com.au. This document is also available on the internet at www.delwp.vic.gov.au.

1. What is the High Voltage Customer Assistance Program (HCAP)?........................................

2. Who can apply?...........................................................................................................................

3. Who cannot apply?......................................................................................................................

4. What might be funded?...............................................................................................................

5. What will not be funded?.............................................................................................................

6. What are the funding details?.....................................................................................................

7. What are the assessment criteria?.............................................................................................

8. What supporting documents will need to be provided?...........................................................

9. What are the funding conditions?..............................................................................................

10. What is the application process?...............................................................................................

11. Additional information.................................................................................................................

12. What is the notification process?...............................................................................................

13. Key dates......................................................................................................................................

14. Checklist.......................................................................................................................................

Contents

High Voltage Customer Assistance Program (HCAP)Grant Application Guidelines

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1. What is the High Voltage Customer Assistance Program (HCAP)?The HCAP is a $10 million fund, established by the Minister for Energy, Environment and Climate Change to provide financial support grants to eligible high voltage customers affected by the 2016 amendments to the Electricity Safety (Bushfire Mitigation) Regulations 2013. The 2016 amendments mandate enhanced powerline fault detection and suppression standards (“required capacity”) that apply to polyphase (three-wire), 22kV bare-wire, electric distribution lines emanating from 45 targeted zone substations on Victoria’s regional and rural distribution supply network.

The enhanced standards are part of the Victorian Government’s program to deliver improved electricity assets and controls to reduce the likelihood that Victorian powerlines will be the cause of catastrophic bushfires, like the 2009 Black Saturday bushfires, in the future.

Three electricity distributors – AusNet Services, Powercor and Jemena – must deliver required capacity at their substations in three phases (or “tranches”):

• Tranche one – by 30 April 2019,

• Tranche two – by 30 April 2021, and

• Tranche three – by 30 April 2023.

To deliver required capacity, the distributors are installing Rapid Earth Fault Current Limiters (REFCLs) at their substations. REFCLs act within milliseconds to detect and supress powerline faults, redistributing voltage to unaffected lines. This nearly doubles the voltage on non-faulted wires for brief periods (“over-voltage”).

Not only must the distribution network be “hardened” to ensure it can withstand REFCL-related over-voltages, but downstream customers who take electricity directly from the 22kV high voltage distribution network (HV Customers or HVCs) must also assess their private electrical installations to determine if they can withstand REFCL-related over-voltages. If the installation cannot safely and reliably operate under such conditions, the HVC will need to either harden its electrical equipment and network, convert to a low-voltage electric service, or install a transformer(s) to isolate its assets from the REFCL-controlled 22kV network.

Amendments to the Electricity Distribution Code (Code) adopted in August 2018 permit the over-voltages associated with REFCLs. The Code amendments also clarify that HVCs must minimise

the risk of loss or damage to their equipment, premises or business – and to the distribution network – resulting from the failure of the HVC’s installation to withstand REFCL-related over-voltages. Going forward, the amendments mean that HVCs in tranches two and three are primarily responsible for ensuring their assets are REFCL-ready.

The Victorian Government recognises that HV Customers may incur significant costs in preparing their electrical installations for REFCL over-voltages. The HCAP was established to reduce the financial burden of electrical asset works and to help HVCs achieve improved powerline bushfire safety outcomes that will protect the lives and property of Victorians.

2. Who can apply?The following classes of HV Customers are eligible to apply for funding from the HCAP:

• Private sector businesses and agencies that are:– Individuals;– sole traders;– private or publicly listed companies (other than

electricity distributors); or – trusts.

• Who are served by a zone substation that will have a REFCL installed in either tranche two or tranche three.

3. Who cannot apply?The following organisations and individuals cannot apply for funding:

• Government agencies (State or Commonwealth);

• Local government authorities;

• Entities directly owned by State, Commonwealth or local government;

• Electricity distribution businesses;

• HV Customers served by a zone substation in tranche one.

4. What might be funded?Grant funding from the HCAP will only cover those costs directly related to the REFCL-ready solution.

2 High Voltage Customer Assistance Program (HCAP)Grant Application Guidelines

Activities and expenditures that will be funded include:

• Procurement of electrical equipment (eg. transformers, arc switches, surge arrestors, cabling, etc);

• Installation of electrical equipment;

• Design of REFCL-ready systems; and

• Compliance/testing.

5. What will not be funded?The HCAP will not provide funding for any of the following activities:

• Initial assessment and audit of electrical equipment to determine if it is REFCL ready

• Any costs associated with determining what the REFCL-ready solution will be (other than costs related to solution design);

• Any other preparation works not directly related to the implementation of the REFCL-ready solution;

• Consultancy fees associated with the foregoing activities;

• The purchase of land;

• Routine or ongoing maintenance activities;

• Recurrent operating costs, for example rent and utility costs, and/or activities establishing expectations of ongoing funding;

• Any downtime or loss of production time resulting from the testing or implementation of the REFCL-ready solution; or

• Any asset upgrades or network changes not required for REFCL-readiness.

6. What are the funding details?The total HCAP funding available is $10 million for REFCL-ready works undertaken over the period through 30 April 2023.

HCAP grants will be capped and will contribute up to 50 per cent towards the HVC’s total cost of actual works undertaken to implement its chosen solution (chosen in consultation with the DB and ESV).

Applicants are required to contribute at least 50 per cent toward the cost of implementing their chosen REFCL-ready solution.

HV Customers’ contributions can be financial or in-kind.

The funding cap will depend on the number of successful HCAP grant applicants and cannot be stated with precision until the close of grant applications. However, current analysis suggests this would be approximately $220,000 - $250,000 per applicant.

All grant funding will be allocated via two milestone payments:

• First payment – 30% towards the HVC’s approved funding amount will be paid shortly after DELWP’s receipt of the HVC’s signed Funding Agreement. Funding Agreements will not be issued earlier than 21 February 2019.

• Final payment – the remaining 70% of the HVC’s grant will be paid shortly after DELWP receives confirmation that the HV Customer’s solution has been successfully implemented.

The following examples illustrate how the level of HCAP funding may be calculated.

Example #1 (solution estimated cost exceeds cap)

HVC Gamma’s chosen REFCL solution is estimated to cost $500,000 ± 10% (ie, $450,000 - $550,000). Gamma’s grant would be distributed in the following manner (based on an assumed cap of $220,000):

• $66,000 (30%) would be paid within 30 days after receipt of Gamma’s signed funding agreement and activity delivery schedule; and

• the remaining $154,000 (70%) would be paid after receipt of evidence that Gamma’s works were successfully completed.

Example #2 (actual solution cost is less than estimated)

HVC Alpha applies for HCAP funding for a hardening solution, estimated to cost $80,000 ± 30% (ie, $56,000 to $104,000). DELWP will calculate Alpha’s grant using the upper estimated amount (ie, $104,000). Alpha will be offered an HCAP grant of up to $52,000 (50% of $104,000; less than the capped amount). Once Alpha completes all REFCL readiness works, the actual total cost turns out to have been $86,000 ($18,000 less than the upper estimate Alpha’s grant was calculated on). The final payment to Alpha will be based on a funding level of 50% of Alpha’s actual – not estimated – cost, in this case $43,000 (50% of $86,000). The final release of funds from the HCAP to Alpha will be $27,400 ($43,000 - $15,600) rather than the $36,400 that was originally calculated to be due Alpha based on its estimated cost ($52,000 - $15,600).

High Voltage Customer Assistance Program (HCAP)Grant Application Guidelines

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Funding is capped to ensure that all identified eligible High Voltage Customers receive equitable access to a reasonable level of financial support within the available funding envelope.

7. What are the assessment criteria?Applications will be checked for eligibility to make sure that the applicant and its activity are eligible for funding.

Applications will be addressed based on the following criteria.

If the answer to all criteria below is “yes”, the HVC is eligible for an HCAP grant. If the answer to any criterion is “no”, the HVC is not eligible for HCAP funding.

Assessment Criteria:

1. 22kV powerline to which HVC connects emanates from a zone substation in tranche two or tranche three?

Yes No

2. HVC is the owner of the electric assets and network infrastructure?

Yes No

3. HVC is a private sector, commercial entity?

Yes No

4. HVC’s network is not owned by a Commonwealth, state or local government directly owned entity?

Yes No

5. HVC is not an electricity distribution business?

Yes No

8. What supporting documents will need to be provided?

For the initial grant application, the following are examples of the evidence that needs to be provided:

• price quotes,

• consultant reports containing estimates,

• supplier price sheets, or

• contractor bids

Supporting documents must be adequate to enable DELWP to calculate the grant award and to issue the first milestone grant payment.

For the final, second milestone grant payment, grant recipients must submit:

• evidence of payments/fixed price quotes for the actual costs directly related to REFCL-readiness works, and

• evidence of confirmation from the distribution business and/or Energy Safe Victoria that the HVC’s REFCL solution has been satisfactorily implemented.

9. What are the funding conditions?

Funding agreementsSuccessful applicants must enter into a funding agreement with DELWP. It is recommended that applicants review the terms and conditions of the Victorian Common Funding Agreement before applying. Information about the Victorian Common Funding Agreement is available on https://providers.dhhs.vic.gov.au/victorian-common-funding-agreement

Legislative and regulatory requirementsIn delivering the activity grant recipients are required to comply with all relevant Commonwealth and state/territory legislations and regulations, including but not limited to:

• The Privacy Act 1988 (Commonwealth)

• The Freedom of Information Act 1982 (Vic)

• Privacy and Data Protection Act 2014

• Occupational Health and Safety Act 2004

• Electricity Safety Act 1998 (Vic)

• Electricity Safety (Bushfire Mitigation) Regulations 2013 (Vic)

4 High Voltage Customer Assistance Program (HCAP)Grant Application Guidelines

Tax implicationsApplicants should consult the Australian Taxation Office or seek professional advice on any taxation implications that may arise from this grant funding.

Successful applicants without an ABN will need to provide a completed Australian Taxation Office form ‘Statement by a Supplier” so that no withholding tax is required from the grant payment.

Acknowledging the Victorian Government’s supportSuccessful applicants are expected to acknowledge the Victorian Government’s support and promotional guidelines will form part of the funding agreement. Successful applicants must liaise with the departmental program area to coordinate any public events or announcements related to the project.

PaymentsPayments will be made so long as:

• the funding agreement has been signed by both parties;

• grant recipients provide reports as required, or otherwise demonstrate that the activity is progressing as expected;

• other terms and conditions of funding continue to be met.

Monitoring

Grant recipients are required to comply with project monitoring and reporting requirements as outlined in the funding agreement. This may include progress reports, site inspections, completion reports and acquittal documentation.

Privacy

Any personal information about you or a third party in your application will be collected by the department for the purposes of administering your grant application and informing Members of Parliament of successful applications. Personal information may also be disclosed to external experts, such as members of assessment panels, or other Government Departments for assessment, reporting, advice, comment or for discussions regarding alternative or collaborative grant funding opportunities. If you intend to include personal information about third parties in your application, please ensure that they are aware of the contents of this privacy statement.

Any personal information about you or a third party in your correspondence will be collected, held, managed, used, disclosed or transferred in accordance with the provisions of the Privacy and Data Protection Act 2014 and other applicable laws.

DELWP is committed to protecting the privacy of personal information. You can find the DELWP Privacy Policy online at www.delwp.vic.gov.au/privacy.

Requests for access to information about your data held by DELWP should be sent to the Manager Privacy, P.O. Box 500 East Melbourne 8002 or contact by phone on 9637 8697.

10.What is the application process?HCAP grant applications, together with any documents or materials supporting the grant application, are submitted online using the Grants Online portal.

To apply, go to the grant program web page https://delwp1.force.com/publicform?id=a0h0B00001R4Jvm and it will direct you to a new application automatically. To return to a saved draft application, use the following link, https://delwp1.force.com.

Attaching required documents:Supporting documents must be in an acceptable file type, such as Word, Excel, PDF, or JPEG. The maximum file size for each file is 5MB.

You will receive an application number when you submit an application online. Please quote this number in all communications with the department relating to your application.

If you have documents to submit that cannot be attached to your online application you can email them to hcap@delwp.vic.gov.au, quoting your application number. Attach all documents to one email, zipping the files if required.

Make sure your application is submitted by 11:59 pm on Wednesday, 20 February 2019.

Note: No hard copy applications will be accepted. Late and incomplete applications will not be considered.

11. Additional informationAdditional information is available at the program web page http://bit.ly/EnergyREFCL.….

High Voltage Customer Assistance Program (HCAP)Grant Application Guidelines

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If you require assistance submitting your application online, contact the Grants Information Line on 1300 366 356 or grantsinfo@delwp.vic.gov.au.

12.What is the notification process?Successful and unsuccessful applicants will be notified in writing after the assessment process is completed. All decisions are final and are not subject to further review. Unsuccessful applicants can ask for feedback on their application.

13.Key datesApplications open 14 August 2018

Applications close 20 February 2019

Applicants notified Shortly after 21 February 2019

REFCL solution works commence

TBD (HVCs contact distributor regarding REFCL works)

Activities completed and acquittal reports submitted

TBD (HVCs contact distributor regarding REFCL works)

14.ChecklistRead these guidelines and the information about this grant program at http://bit.ly/EnergyREFCL before applying and complete the following checklist.

Have you:

read these guidelines carefully?

checked if you are, or your organisation is, eligible for this grant funding?

checked if your activity is eligible for this grant funding?

checked that you would be able to comply with all relevant laws and regulations in delivery of your activity?

prepared the appropriate supporting documents?

6 High Voltage Customer Assistance Program (HCAP)Grant Application Guidelines