Aboriginal Renewable Energy Fund Aboriginal Energy Partnerships Program Shannon McCabe

1. Aboriginal Renewable Energy FundAboriginal Energy Partnerships ProgramShannon McCabe Ontario Power Authority August 19, 2010

2. AREN ACEP AREF AAC Aboriginal Energy Partnerships Program • Aboriginal Renewable Energy Network (AREN) • Aboriginal Renewable Energy Fund (AREF) • Aboriginal Community Energy Plans (ACEP) • Aboriginal Advisory Committee (AAC)

3. AREF – Ministerial Directive • Financial assistance per project: $500,000 maximum • Examples of “soft costs”: • Site investigation and control • Resource assessments • Business and financial planning • Project coordination • Studies associated with applying for a Renewable Energy Approval • Size: Greater than 10 kilowatts

4. Program Eligibility • Aboriginal Community Eligibility • First Nations communities • Métis communities • Corporations that are wholly owned by one more Aboriginal communities • Individuals are not eligible • Project Eligibility • Hydro, solar, wind, bioenergy (landfill gas, biomass, bio-gas) • Greater than 10 kilowatts in size • In Ontario • Supporting Resolution • Documentation of community support such as a Band Council Resolution, resolution of the governing council, etc • Must be submitted with the AREF application

5. Feasibility & Project Development Operation The Idea Construction Notice To Proceed Commercial Operation Date FIT Application and Contract AREF Aboriginal Project Development Example

6. Pre Feasibility Design/Development Regulatory Approvals Structure Time

7. Phase I: Pre-Feasibility • This phase is a high level, early investigation of the project • Eligible Phase I Activities include: • Preliminary business plan that includes all of the following activities (each activity can also be funded separately): • Site identification • Initial resource identification & assessment • Initial connection point identification and review (pre-FIT) • Total project cost estimate • Preliminary economic evaluation (eg. RETScreen) • Aboriginal Traditional Knowledge studies

8. Phase II: Design & Development Phase • Part A: • Environmental Constraints Analysis • Regulatory Approval Mapping • Site Control • Preliminary capital cost estimates and equipment specifications • Resource Assessment • Organizational development • Project Coordination • Part B: • Engineering Studies • Resource Control • Business Plan/Economic Assessment • Project Coordination

9. Phase III: Regulatory Approvals Phase • Could include the following: • Water Power EA • CEAA Screening • REA requirements such as: • Construction Report • Consultation Report • Decommissioning Plan • Effluent Management Plan Report • Hydrogeological Assessment Report • Noise and Odour Study Report • Crown Land Interest Report (MNR) • Natural Heritage Assessment & Archaeology/Cultural Investigation (MNR) • Other • Site Specific Studies • Air Quality/Climate Change • Noise Studies • Effluent Management • Storm Water Management • Surface Water, hydrogeology • Bird Studies • Fish Inventory & Habitat • Breeding Amphibians • Archaeology Assessment • Heritage Assessment • Other • Other Approval Requirements • Fisheries and Oceans Canada • Transport Canada • Ministry of Natural Resources • Environment Canada • Ministry of Culture • INAC • Ministry of Environment • Municipal

10. Funding • AREF will cover percentage of actual costs • Phase I: Pre-Feasibility • 80% of actual costs up to $20,000 • Phase II-A: Design & Development • 60% of actual costs up to $125,000 (less any funding received in Phase I) • Phase II-B: Design & Development • 60% of actual costs up to $250,000 (less any funding received in previous phases) • Phase III: Regulatory Approvals • 40% of actual costs up to $500,000 (less any funding received in previous phases) • May use other funding sources to pay for costs not covered by AREF

11. Tendering for Services • Process that requires you to offer a request for bids either publically or by invitation. • Select a provider based upon qualifications, experience and total estimated cost. • Must receive 2-3 bids • If you have been working with a consultant since before the program launch date (April 27, 2010), tendering is not necessary. • Note: acknowledgement of this long-term relationship must be included in the Supporting Resolution. • The use of internal personnel to carry out project coordination does not require tendering, however, proof of skills, experience and/or qualifications must be included with the application.

12. Eligible Activities • AREF covers portion of actual costs to undertake specified activities • External: Consultant/Legal/Accounting Costs • Tendering requirement • Proof of qualifications • Internal: Project Coordinator • In kind work related to an eligible activity • Proof of qualification of project coordinator/staff

13. Completing your Business Plan • Phase I - funding available for Preliminary Business Plan • Template available • Phase II - funding available for compiling a Business Plan • See the Business Plan Guidelines on the AREN website • Corresponds with the information required for the Aboriginal Loan Guarantee Program

14. AREF and the Feed-In Tariff (FIT) Program • The AREF is for projects that intend to apply to the FIT program • Phase I • does not require a FIT application or contract • Phase II (A) • all Phase I deliverables completed or applied to FIT • Phase II (B) • requires a FIT Contract or project is in the FIT Production Line • Phase III • requires a FIT Contract

15. Process Flow Phase I: Pre-Feasibility • Activities in each phase must be complete before applying to next phase • Work on activities in subsequent phase can begin earlier, but AREF will reimburse Applicants only once certain deliverables are complete • Some funding for Phase II Design & Development B and Phase III: Regulatory Approvals may be provided earlier if Applicant provides a justification Phase II A FIT Application Phase II B FIT Contract Awarded Phase III: Regulatory Approvals

16. Contract/Payments/Reporting Application Assistance Submit for Review Applicant Interest Contact AREF Accept Reject ~2 Months Application Process

17. Review Process • Expectation that applications could be reviewed in approximately 2 months • First review committee meeting Fall 2010 • Timing may vary in the start up period of the program • Influx of applications – pent up demand • Marketing/communications ramping up • Continuing communication and assistance throughout process

18. Technical Review and Approvals Committee (TRAC) • Composition • Chair • 3 Internal evaluators • 3 External reviewers • Role • Review and assess all AREF applications • Final decision making body • Award funding • Terminate funding

19. Applying for AREF • Read the AREF Rules • Ensure you meet eligibility criteria and all pre-requisites • Prepare your application • Please contact us if you have any questions about the application form • Submit your application • You will be contacted by the OPA to verify it has been received

20. What’s next? Applicant Accepts Funding Contract • If application is approved, a funding contract is offered to the applicant • Once the contract is accepted, the applicant will receive the first payment. • Brief check-in reports • monthly or quarterly depending on activities • Outlined in funding contract • Often serve as triggers for payments • Each funded activity has a deliverable that must be submitted upon completion. • The final payment will be issued once the OPA receives the Deliverables Submission Cover Page with all Deliverables attached. First Payment Issued Applicant provides Check-In Reports Payments Issued Applicant provides Final Deliverables Final Payment Issued

21. Payments & Reporting • Payments will be made at interim milestones and upon completion of deliverables • As work progresses Applicants will complete “Check-In Reports” to advise if there are any changes to the budget or timeline • Reports are either monthly or quarterly depending on length of activity • Reporting will trigger payments • Outlined in contract

22. Contact Information • For further information on the Aboriginal Energy Partnerships Program • aepp@powerauthority.on.ca • 1-888-471-2377 • www.aboriginalenergy.ca • For further information specifically about the Aboriginal Renewable Energy Fund • aref@powerauthority.on.ca • 1-888-471-2377 or 416-969-6317

23. Questions?