”Show Me The Money”

(A guide through the funding program maze)

Innovative Solutions DivisionScience and Technology Branch

Environment Canada

November 18, 2005

Our Challenge

To make Canada a world leader in the new sustainable economy by supporting the advancement of innovative technologies to help industry both meet its environmental performance targets and strengthen long-term competitiveness in the global market

How we do itSupport three CETACs which help SMEs develop and commercialize leading-edge environmental technologies

Monitor over 130 funding programs and conduct targeted networking events to provide clients with strategic and timely information on new funding opportunities

Assist developers accelerate entry of innovative technologies into markets by validating claims through ETV Program

Environment MarketsCanadian•Domestic Revenues (2002) - $15.8 B•Exports Sales (2002) - $ 1.4 B

•Trade Deficit (2000) - $ 1.1 B*** •Employment - 160,000•Companies - 8000 (93% SMEs)

Global•Technologies & services (2000) - $750B US*•Estimated growth to 2015 - $1 Trillion US **Stats from: Environment Industry Survey: Business Sector 2002, Statistics Canada ,2004; except

** A Decade of Challenge – Canadian Environmental Industry Competitiveness Analysis, Industry Canada, 2003***Canada’s Environment Industry: An Overview, Industry Canada website as viewed on Nov 4, 2004 at::

http://strategis.ic.gc.ca/epic/internet/inptg-sc.nsf/en/pg00016e.html

What’s in Budget 2005• $1 billion over 5 years for an innovative Climate Fund

to further stimulate cost-effective action to reduce GHG emissions in Canada

• $250M over 5 years for a Partnership Fund to cost share investments in GHG reduction projects with provinces and territories.

• GHG Technology Investment Fund to support R&D projects in transformative technologies aimed at reducing or removing GHG emissions from industrial sources and operations

• $200 M over 4 years to develop & implement a Sustainable Energy Science & Technology Strategy, commencing with an examination of existing federal investments in environmental and energy S&T

Budget 2005 continued…

• $300 M for the Green Municipal Funds (GMF) to support projects, with half ($150M) devoted to brown-field cleanup

• $200M over 5 years to quadruple the Wind Power Production Incentive (WPPI) to encourage 4000 MW of new of new wind power, totalling $920M over 15 years

• $170M over the next 6 years for the Renewable Power Production Incentive (RPPI) to stimulate development & use of renewable, non-wind energy (biomass, hydro, landfill gas), totalling $886M over 15 years

• $295 M via the modification to the Accelerated Capital Cost Allowance (Class 43.1) to encourage investment in renewable energy generation & energy efficiency

Climate Fund (originally announced in Budget 2005 as the “Clean

Fund”)

$1 B over 5 years (2005-2010)Government’s purchasing agent for domestic & international carbon unitsCornerstone of Climate Change Plan’s market-based approachEncourage development & deployment of cost-effective, innovative ETs and processes to reduce GHG emissions

Partnership Fund

$ 250M over 5 years (2005-2010), with potential increased funding to $ 2-3B over next decade, to:

o cost-share clean energy projects and other initiatives with provinces & territories to meet GHG emission reduction targets

o complement support provided through Climate Fund

o target strategic large and local projects deemed priorities by both levels of government

o Achieve emission reduction of 55 to 85 MT

GHG Technology Investment Fund

(Large Final Emitter (LFE) System)• Supports improvements in the LFE * sector to

further reduce GHG emissions

• Alternative mechanism for industry to achieve their targets and support development & deployment of innovative technologies

• Cost to industry capped at $15/tonne (2008-2012)

* Oil & gas, thermal electricity, and mining & manufacturing sectors

Key Funds ($M) Program Duration

100* 2.5B** 30*

63550 500+

200 850*

3.65B920M***

N/A

Industrial Research Assistance Program (IRAP)Technology Partnerships Canada (TPC)TPC – IRAPTechnology Early Action Measures (TEAM)Sustainable Development Technology CanadaGreen Municipal Fund Natural Sciences & Eng. Research Council of CanadaCanada Foundation for InnovationWind Power Production IncentiveScientific Research & Experimental Development ProgramRenewable Energy/Conservation Tax Incentives

*= $ for 2004 / 2005 ** = as of Nov 30,04; 17%<ETs***=$ announced in Budget 2005

ContinuousRevolvingRevolving2004-20082002-2010RevolvingRevolvingContinuous1997-20102002-2017Permanent

Funding SpectrumFe

dera

l Fu

nd

ing

Pro

gra

ms

Climate Change Investments

(Budget 2003) Funding Blocks $Million

• Technology & Innovation 270• Individual Canadians 131• Industry & Business

o Energy Efficient Buildings 129o Energy Efficient Transportation 154

• Governments & Communities 321Total 1005

Technology & Innovation Block (T&IB)

Initiative $Million• Cleaner Fossil Fuels 65• Advanced End-Use Eff. Technology 40• Decentralized Energy Production 30• Bio-fuels 30• Hydrogen Economy 80

Total 245

Industry & Business Block

• Energy Efficient Buildingso Extension of Commercial Buildings Incentive Program (CBIP)

47o Extension of Energy Innovators (EEI) 57o Renewable Energy Deployment (REDI) 25

• Energy Efficient Transportationo Commercial Transport & Freight Efficiency 32o Natural Gas Vehicle Market Transformation 10o Expanded Use of Biodiesel 12o Ethanol Expansion 100

Total 283

Initiative $Million

Sustainable Development Technology Canada (SDTC)

• Established in 2001 as a response to Kyotoo Total of $550Mo $350M + $200M (Budget 2004)o $169M Allocated as of Oct 05

• Climate Change & Clean Air, Water & Soil Techso Development & demonstrationo Emphasis on strong partnerships

• Funding Specifics:o Partnership consortium requiredo No specific min/max amountso Max 5 years of Funding per projecto Follow-on report on success of funded project to

be submitted 2 years after project completion

9th Funding Round open

Jan 2006

SDTC - Eligible Technologies

• Hydrogen economyfuel cells, hydrogen infrastructures, transition fuels

• Cleaner Fossil FuelsCO2 capture and sequestration, oil sands production

• Air Quality improvementtoxics recovery, particulate control, acid rain

• Energy end-use technologiestransportation, buildings, ground level ozone reduction

• Renewable energy technologiesbiomass, solar, wind, wave, tidal

• Budget 2004 expanded mandate included Clean Water & Soilo Water quality and quantity improvemento Waste managemento Soil quality improvement

Technology Early Action Measures (TEAM)

• Technology demonstration and late stage development in support of early action to reduce GHG emissions

• Project delivery through existing Federal departments & programs (incremental funding) to enable commercialization

• Technology Focus Areas: Cleaner Fossil Fuels; Advanced Energy Efficiency; Bio-tech; H2 Economy; Decentralized Energy Production

• 101 projects completed/allocated to date, Phases I & II (1998-2004)

• Phase III funds (2004-2008) - $63Mo 8 projects allocated $14.5M, total project value ~$40M

• Adds value to SMEso advises on business planning, project development, R&D

planningo identifies resources for technical + financial support

• Provides up to 75% of the federal share in a TEAM

Industrial Research Assistance Program (IRAP)

• Established 1947 by NRC to stimulate wealth-creation through technology innovation

• Supports more than 12,000 SMEs/year • $100M budget for client contributions

04-05• Cost-shared contributions (see notes)• Delivered through national network of

Industrial Technology Advisors (ITAs)

Technology Partnerships Canada (TPC) (Restructuring as Transformative Technologies Program (TTP)-1st Quarter,

2006)

• Contributes to GoC’s objectives:o Economic growth, job creation,

sustainable development, • Complements other Government funding

programs, usually with a SR&ED tax credit• Shares cost of industrial R&D projects (25-

30% of eligible R&D costs)• 3 Funding Areas: Enabling,

environmental (15-20%), Aerospace & Defense

• SME projects <$3M referred to IRAP-TPC• Repayment level depends on commercial

success

Hydrogen Early Adopters (h2EA) Program

• Fosters development and early introduction of hydrogen (H2) and H2-compatible technologies

• $50M over 5 years, until March 2008• To date, 4 projects funded; Total $12M• Projects such as H2 highways, H2 villages and fuel cell

technologies• Supports up to 50% of eligible project costs• Maximum amount payable to recipients, up to $40M per

project / $20M per eligible recipient• Repayable only if the project makes a profit

Next application deadline will be February 9, 2006

TPC-IRAP

(Restructuring under new TTP - 1st Quarter, 2006)

• $30M per year; joint program funded 50-50 by TPC and IRAP supporting Canada’s SMEs

• Pre-commercial development of new products/processes, demonstration or pilots

• Funding:o Same funding areas as TPC, including Environmentalo Total eligible project costs ceiling = $3Mo Available to SMEs with less than 500 employees

• IRAP- ITAs offer knowledge-based assistance

• Upfront repayment plans negotiated

Green Municipal Fund (GMF) Federation of Canadian Municipalities

• helps municipal governments & partners improve air, water & soil quality, protect the climate, promote use of renewable resources, and remediate & redevelop municipal brownfields

• $550M revolving Fund for green municipal infrastructure projectso loans & loan guarantees for such projectso grants for feasibility studies, field tests &

sustainable community plans

• $300M of total to support green municipal projects, with half ($150M) to brownfield cleanup

(Announcement, Budget 05)

Advancing Canadian Agriculture and Agri-Food (ACAAF) Program

Aim to advance Canada’s agriculture & agri-food sector to seize new opportunities:

o 5 year, $ 255M program established by Agri. & Agri-Food Canada

o $51M/year, from 2004-2009 ($200M still avail)o A portion of available funding is targeted at agro-

environmental technology projects & programso Non-repayable Grant

•Currently accepting applications, no specific application deadline

Panel for Energy Research and Development (PERD)

• Annual budget of ~ $58M• Funding provided to federal labs, private

sector, other funding agencies, universities, provinces & municipal governments

• Program Strengths:o collaborative approach to R&D that

encourages partnershipso emphasizes peer-review & assessmentso PERD MOU signed with 12 participating

federal departments & agencies (e.g., CMHC)

• Operating for almost 30 years

NSERC(Natural Science and Engineering Research Council of

Canada)

• Invests in university and company R&Do $850M in investments in 2004-2005o Includes additional $39M/yr in 2005 Budget

• Programs of interest include: Industrial Research Fellowships (IRF)

Program. Industrial Postgraduate Scholarships (IPS)

Program Collaborative R&D (CRD) Grants Industrial Research Chairs (IRC) Program Idea to Innovation (I2I) Program

Canada Foundation for Innovation (CFI)

• Funds research infrastructure at universities, colleges, research hospitals and non-profit research institutions

• Promotes collaboration with federal granting agencies, provincial & municipal governments, and the private & volunteer sectors

• Over $3.65B  committed to date• Over 230 projects at 86 institutions

• Funding Programs:o Many different funding programs (See notes)o Innovation Fund: funds up to 40% of infrastructure costs

Canadian Foundation for Climate and Atmospheric Sciences (CFCAS)

• $50M, from 2004-2011 (funding to date already allocated)• Funds research re climate/atmospheric processes & predictions• Shifted emphasis to major collaborative initiatives• 2 types of awards available:

o Major Initiative Grants over $300,000, duration up to 5 years incorporate networks awards and major collaborative

projectso Project Grants

up to $300,000, over a 3 year period. Funded Projects focus on research concerning climate,

extreme weather, air quality, and marine environmental prediction

Sustainable Transportation

Freight Sustainability Demonstration Program (FSDP)

• 5 year, $4.5M• Freight-related demonstration projects for an

existing or new technology or best practice in the aviation, marine, rail, truck or inter-modal sectors

• Designed to encourage up-take of technologies or best practices that can reduce GHG emissions from all freight modes

• Up to 50% of eligible project costs to a maximum of $250K per project, over a 2 year duration

Sustainable Transportation (con’t)

Freight Incentive Program (FIP)

• 3 year, $5M rail, marine & air freight transport program

• 2004-2007 (duration)• To encourage adoption and use of technology &

equipment that reduces GHG emissions • Funding to purchase & install efficiency-

enhancing technologies• Designed to work in partnership with FSDP• Up to 50% of eligible costs to a maximum of

$500K per project, over a 2 year duration

Renewable & Electrical Energy (NRCan)

• Renewable Energy Deployment Initiative (REDI)o 9 year, $51M renewable energy incentive programo For purchase & installation of qualified systems:

Active solar air & water heating systems; & ground-source heat pumpso Refund of 25%, up to $80K per project max. ($250K per corp.)

• Wind Power Production Incentive (WPPI)o Provides financial support to electricity producerso Incentive on productiono 5 year program, $200M

• Renewable Power Production Incentive (RPPI)• $170M over the next 6 years, with a total of $886M over 15 years• Stimulates development, installation & use of new, renewable*,

electricity-generating capacity (up to 1500 MW)* biomass, hydro, landfill gas (not for wind energy)

Energy Efficient Industry (NRCan)

Industry Energy R&D Program (IERD)

• Supports innovative SME R&D:o Development & use of energy-efficient processes, products,

systems & equipmento All sectors eligible 

• $3.5M available in 2004/2005 o 35% of eligible project costs (Up to 50% of eligible project

costs in exceptional cases)o Fully repayable; Available until March 2008

Emerging Technologies Program (ETP)

• Identifies & Eliminates technical barriers to increasing energy efficiency of Canadian industries:o All sectors eligible, including: Pulp & paper, iron & steel,

cement, oil & gas, food & beverage sectorso Technical assessments, prototype development & field

trials

• $ 400K available in 2004/5o Up to 50% of project costso Repayable from revenue or cost savings

Energy Efficient Industry (con’t)

Energy Efficient Technologies

Renewable Energy Technologies Program (RETP)• Supports development & commercialization of advanced renewable energy

techso solar thermal , wind power, bio-energy, photovoltaic & small hydro

• Energy industry eligible recipients include: manufacturers, developers, consultants, utilities, provincial and other federal departments

• Repayable on case-by-case basis

Energy Innovators Initiative Program (EII)• Commercial & institutional building Retrofit Assistance Funding for:

o Energy audits, Feasibility studies, Energy management plans, and other project development and facilitation measures

o $250K per project: up to $7.50 per gigajoule of annual energy savings or up to 25% of eligible costs

Buildings Energy Technologies Program (BETP)• Supports development & commercialization of energy-efficient and

environmentally responsible technologies for residential and large buildings o Projects are usually cost-shared at no more than 50%. o As of 02/03 , $2M was available (significant portion

committed)

Scientific Research & Experimental Development (SR&ED) Program

• ~$1.8B Federal tax incentive program to encourage private sector investment in SR&ED

• Claimants can apply for tax credits for wages, materials, machinery, equipment, some overhead and SR&ED contracts

• Eligible areas: Experimental Development, Basic and Applied Research

(SR&ED) Program (con’t)

• The SR&ED Program offers the following services:o Public Information and Industry

Specific Seminarso 1st-time Claimant Serviceo PreClaim Project Review (PCPR)

Serviceo Account Executive Service

Renewable Energy / Conservation

Tax Incentives• Accelerated Capital Cost Allowance (Class

43.1) Tax incentive for renewable energy and energy

conservation equipment

• Canadian Renewable & Conservation Expenses (CRCE)

For the non-capital costs associated with the start-up of renewable energy & energy conservation projects

Business Development Bank of Canada (BDC)

• $250M was allocated to BDC in Budget 2004 to support commercialization of environmental technologies

• $100M for pre-seed & seed investment to nurture development of embryonic technologies, bringing them to next level of venture capital financing

• $100M to support creation of specialized venture

capital funds

• $50M to invest directly in innovative start-up & early-stage companies to further support commercialization of enabling technologies

Federal Economic Development Initiative for Northern Ontario (FedNor)

• $88M over the next 5 years• Mission: increasing overall competitive position of the

North and to accelerate its movement to a knowledge-based economy

• Works with stakeholders & community partners * to improve access to capital, information & markets

• Innovation Fund supports R, D & D projectso Eligible Recipients :

• Northern SMEs (repayment required)• Northern Municipalities & First Nations• Community Economic Development Corporations

Contributions up to 50% of eligible costs to maximum of $500K

• Normally repayable contributions to non-profit organizations will be deemed non-repayable unless revenue generated

Atlantic Innovation Fund (AIF) Atlantic Canada Opportunities Agency (ACOA).

• $ 300M, 5-year Fund designed to strengthen the Atlantic Canada economy by accelerating R&D

• Assistance up to 80% of total eligible costs (see notes) for non-commercial projects & up to 75% for commercial, private sector projects

• Commercial applicants seeking funding of $1M or less are ineligible under the AIF but may be eligible under ACOA’s Business Development Program

• Contributions to the private sector are conditionally repayable based on commercial success of a project

• Contributions to non-commercial organizations, such as research institutes and universities, are non-repayable Launch of Round IV, February 2006

Other ACOA Programs

Atlantic Investment Partnership• Launched in 2000 as a $700M investment to support economic

development in Atlantic Canadao R&D, exports, foreign investment & entrepreneurs, etc.

• 2nd phase, 5-year $708M investment in innovation & business

Business Development Program• Helps set up, expand or modernize business• Offers access to capital for SMEs through repayable

contributions

Seed Capital Program• Loans to start & expand small business & business skills

training• Up to $20,000 in the form of a repayable contributions; Up to

$2,000 for specialized training and business counselling

Canadian Economic Development (CED/DEC)

• Promotes economic development for SMEs in Quebec

• IDEA-SMEo SMEs in Quebec (no more than 200 employees)o not to exceed 50% of eligible costso repayableo for non-profit organizations, the level of stacked

government assistance must not exceed 90%

Western Economic Diversification Canada (WD)

• Investment of $2.7 B since 1987 o Focus on innovation, business/entrepreneurship development,

economic competitiveness & community economic developmento Underlying focus on building the knowledge-based economy &

sustainable communities

• $340 M budget for 2004-05:o $77 M for Innovationo $72 M for Entrepreneurshipo $222 M for Sustainable Communities (incl infrasture)

• Partners with public & private sectors

• Sponsors loan programs delivered by financial institutions o Eligible recipients: businesses, industry associations & non-

profits

• Does not provide grants to businesses

Summary• Billions available over the next 5 years• Emphasis on strong proposals & partnerships• Available Programs:

Larger National Funding Programso SDTC, TEAM, IRAP, TPC, h2EA, PERD, GMF, NSERC, CFI, ACAAF,

WPPI

Smaller National Funding Programso TPC-IRAP, FSDP, FIP, CFCAS, REDI, MIP, IERD, ETP, RETP, EII,

BETP

Regional Funding Programso FEDNOR, ACOA/AIF, CED/DEC, WD

Tax Incentive Programso SR&ED; Renewable Energy/Conservation Tax Incentives

Contact InformationCanadian Environmental Technology Advancement Centres (CETACs)

West: http://www.cetacwest.com/ Ontario: http://www.oceta.on.ca/ Quebec:http://www.enviroaccess.ca/eng/

Sustainable Development Technology Canada (SDTC)230 Queen St, Ottawa ON K1P 5E4; (613) 234-6313; www.sdtc.ca; applications @sdtc.ca

Industrial Research Assistance Program (IRAP)Bldg M55, Montreal Rd, Ottawa ON K1A OR6; 1-877-994-4727; publicinquiries.irap@nrc.ca; www.nrc.ca/irap

Technology Partnerships Canada (TPC)300 Slater Street, 10th Floor, Ottawa ON K1A 0C8; 1-800-266-7531; http://tpc.ic.gc.ca

Federation of Canadian Municipalities (FCM)24, Clarence St, Ottawa, ON K1N 5P3; (613) 241-5221; application@fcm.ca ; www.fcm.ca

Canada Foundation for Innovation (CFI) 230 Queen St, Suite 450, Ottawa ON K1P 5E4; (613) 947-6496; info@innovation.ca; www.innovation.ca

Technology Early Action Measures (TEAM):Suite 230 - 55 Murray Street, Ottawa ON K1A 0E4, Tel: (613) 996-6220, Email: rudy.lubin@nrcan.gc.ca, www.climatechange.gc.ca/english/team/

Natural Science and Engineering Council of Canada (NSERC)350 Albert St; Ottawa ON K1A 1H5 (613) 995-5992; comm@nserc.ca; www.nserc.ca

Scientific Research and Experimental Development (SR&ED)www.ccra-adrc.gc.ca/sred

Advancing Agriculture and Agri-Food (ACAAF) ProgramAgriculture and Agri-Food Canada c/o ACAAF Program, Adaptation Division, Room 499, Sir John Carling Building, 930 Carling Avenue, Ottawa, Ontario, K1A 0C5, FAX: (613) 759-7490 Tel: (613) 759-7520, acaaf@agr.gc.ca; www.agr.gc.ca/acaaf/index_e.html

h2 Early Adopters (h2EA) Program300 Slater Street , 10th Floor, Ottawa, Ontario, K1A 0C8, Tel: 1-800-391-3363, Fax: (613) 954-9117, E-mail: h2ea@ic.gc.ca http://tpc-ptc.ic.gc.ca/h2/

Contact InformationEnvironment Canadao Funding Program Guide: http://www.ec.gc.ca/fund_e.html o C2T2 contact: Tony Kosteltz, (613) 953-2844, tony.kosteltz@ec.gc.cao ISD email: isd@ec.gc.caIndustry Canadao Guide to Programs: http://www.ic.gc.ca/cmb/welcomeic.nsf/icPages/Programs o Atlantic Canada Opportunities Agency: http://www.acoa.ca/o Federal Economic Development Initiative for Northern Ontario: http://

www.fednor.ic.gc.cao Assistance for S&T Research:

http://strategis.ic.gc.ca/epic/internet/inrti-rti.nsf/en/h_te02568e.htmlo Guide to Government Services and Support for Small Business:

http://strategis.ic.gc.ca/sc_mangb/smeguide/ Natural Resources Canadao Contact: Rudy Lubin, Technical Info Officer, NRCan, (613) 996-6220, rudy.

lubin@nrcan.gc.ca o Programs:

Renewable Energy Deployment Initiative (REDI): www2.nrcan.gc.ca/es/erb/english/View.asp?x=469&oid=111

Wind Power Production Incentive (WPPI): http://www.canren.gc.ca/wppi Industry Energy R&D Program (IERD):

www.nrcan.gc.ca/es/etb/cetc/cetc01/htmldocs/funding_programs_ierd_e.html Emerging Technologies Program (ETP):

www.nrcan.gc.ca/es/etb/cetc/cetc01/htmldocs/funding_programs_etp_e.html

Renewable Energy Technologies Program (RETP): www.nrcan.gc.ca/es/etb/cetc/cetc01/htmldocs/funding_programs_retp_e.html

Market Incentive Program (MIP): http://www2.nrcan.gc.ca/es/erb/english/View.asp?x=457

Canada Economic Development (for Quebec Regions): http://www.dec.gc.caWestern Economic Diversification Canada: http://www.wd.gc.ca

Thank You

For more information, please contact us!

Innovative Solutions Division, Environment Canada

351 St. Joseph Blvd. Hull, Quebec, Canada, K1A 0H3 E-mail: isd@ec.gc.ca Web:

http://www.ec.gc.ca/