Annex 1: Likelihood and magnitude of GHG effects Annex 2: Minimum Energy Performance Standards APPENDIX B Forestry...

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2 Table f Cntents Purpse... 4 Organizatinal Infrmatin Cntact Infrmatin Summary & Descriptin... 5 Prject Sectrs/Activities... 5 Prject Descriptin... 5 Timelines... 6 Risks and Challenges Outcmes & Benefits... 8 GHG Emissin Reductins... 8 GHGs targeted... 8 GHG reductins Energy Savings Jb Creatin Key Cnsideratins Describe nn GHG benefits and impacts Describe use f federal, prvincial, r ther standardized tls Tracking and Mnitring Csts, Financing and Funding Prfile Csts Estimated Prject Csts Breakdwn Financing Prpsed Financing f Eligible Csts Funding Surces Funding Prfile Schedule table f cntributin per year APPENDIX A Buildings and Industrial sectrs GHG Emissin Reductin A. GHG assessment ex ante B. Cst and financial assessment C. Mnitring prgram perfrmance ex pst

3 Annex 1: Likelihd and magnitude f GHG effects Annex 2: Minimum Energy Perfrmance Standards APPENDIX B Frestry GHG Emissin Reductin A. GHG assessment ex ante B. Cst and financial assessment C. Mnitring prject perfrmance ex pst Annex 1: Likelihd and magnitude f GHG effects Annex 2: Pls, surces and sinks APPENDIX C Agriculture GHG Emissin Reductin A. GHG assessment ex ante B. Cst and Financial Assessment C. Mnitring prject perfrmance ex pst Annex 1: Likelihd and magnitude f GHG effects Annex 2: Pls, surces and sinks Appendix D Glbal Warming Ptential Values Appendix E Canadian Ecnmic Sectr Descriptins

4 Methdlgical Guidance Purpse This annex prvides additinal technical and methdlgical guidance t prvincial and territrial gvernments submitting prject prpsals t the Lw Carbn Ecnmy Leadership Fund and is intended t assist applicants in submitting prpsals via the nline applicatin. The Lw Carbn Ecnmy Leadership Fund is ne f the tw funding envelpes under the Lw Carbn Ecnmy Fund (LCEF). (See Applicant Guide fr mre infrmatin.) The nline applicatin includes mandatry fields fr infrmatin such as the descriptin f the prject, the utcmes and benefits, csts and financial infrmatin, and ther infrmatin that will help federal fficials validate estimates and ensure a prject s verall cnsistency with the bjectives and parameters f the LCEF. This guidance dcument will assist applicants in develping answers t the nline applicatin questins. In rder fr federal fficials t cnduct a prper assessment f the prpsal, yu are als requested t prvide supplemental supprting infrmatin and relevant data (calculatins, assumptins, etc.) underlying the estimates f yur nline applicatin by uplading additinal dcuments. Applicants will be permitted t uplad a maximum f five (5) dcuments f up t 10MB each, per prpsal. Permitted file types include.dc/dcx,.xls/xlsx,.pdf, r images in the standard.jpeg,.tif, and.gif file frmats. T ensure applicants can uplad all necessary infrmatin, we suggest rganizing the supplementary infrmatin t be upladed in a few dcuments as described belw: Wrk Plan (e.g., Prject X wrkplan.dc) Methdlgy and Assumptins fr Outcmes and Benefits (e.g., Prject X Methdlgy.dc and/r Prject X Methdlgy.xls) Cst and Financial Infrmatin (e.g., Prject X Financial.xls; Prject X Financial.dc) In appendices at the end f this Methdlgical Guidance, sectr specific guidance is prvided that utlines the detailed infrmatin requested fr prpsals in the varius sectrs eligible fr LCEF funding. Sectr specific guidance is prvided fr the fllwing: Buildings and Industrial sectrs Frestry Agriculture If the prpsed prject des nt fall int ne f these sectrs, please chse the guidance that is the mst clsely related. If yu need assistance, please cntact us at the fllwing ec.lcef fefec.ec@canada.ca. Hereunder yu will find instructins fr the nline applicatin and fr the supplementary infrmatin, fllwing the same rder as in the nline applicatin. Instructins fr the nline applicatin are nly prvided fr sectins that require particular guidance (the relevant sectins in the nline applicatin are identified in parentheses). 4

5 Organizatinal Infrmatin Fr nline applicatin Cmplete the standard questins 1. Cntact Infrmatin Fr nline applicatin Cmplete the standard questins 2. Summary & Descriptin Prject Sectrs/Activities (Sectin f the nline applicatin) Fr nline applicatin Which f the fllwings sectrs/activities des yur prject target? Energy efficiency in the residential buildings sectr Energy efficiency in the cmmercial buildings sectr Energy efficiency in the industrial sectrs Fuel switching in the industrial sectrs Prcess changes in the industrial sectrs Enhancing carbn sinks in the frestry sectr Enhancing carbn sinks in the agriculture sectr Reducing GHG emissins in the frestry sectr Reducing GHG emissins in the agriculture sectr Enhancing carbn sinks in wetlands Other pririty areas Cmmercial building includes farm buildings and agri prcessing peratin. Other pririty areas culd include: waste reductin, landfill gas capture, carbn sequestratin in building materials, etc. Yu may chse mre than ne type fr a single prject but the reasn shuld be explained in the prject descriptin. Prject Descriptin (sectin 2.1.4) Fr nline applicatin Please prvide a brief descriptin f yur prject. Briefly describe the prject by defining its nature and the general utcmes and benefits. Fr additinal supprting infrmatin (t uplad in the Wrkplan.dc) Describe in detail the main cmpnents r activities f yur prject. Describe the targeted sectrs and the specific measures Define the gegraphic regin in which the emissin reductins will ccur. In yur prvince? In Canada? Outside Canada? 5

6 Is this a new r existing prject? If new, explain when prject was r will be frmally annunced by PT. If existing, indicate when prgram was annunced r started, hw lng it has been implemented; indicate clearly hw scpe f activities are being increased, and/r hw prgram is being scaled up. Identify the impacts and effects beynd thse anticipated in absence f the prject, r the uptake f prgrams beynd the baseline. Fr a new prject, explain hw the prject wuld result in incremental reductins as cmpared t the expected baseline rate f adptin r the business as usual emissins. Fr an existing prject, identify hw the incremental funding requested frm the LCEF fr scaling up r expanding the prject/prgram wuld result in additinal reductins beynd what has already been estimated fr the existing prject. Fr essential activities that d nt directly reduce emissins (e.g., energy evaluatins/audits, research, training, feasibility studies), demnstrate why these cmpnents are necessary t enable reductins. If applicable, describe the expected rate f adptin, level f uptake (e.g., percentage f ttal stck impacted per year). Describe the eligibility and qualificatin cnditins f yur prgram (if applicable). Clearly define the ultimate recipients f the prject (e.g., hmewners, external implementing agency, small businesses, industry partners). Describe the targeted systems and prcesses, technlgies, buildings, equipment, appliances, etc. (and identify if these are new, existing r bth). Describe the gaps in plicy being addressed by the prpsed prgram, including the need fr the investment. Fr example, what barriers are being addressed and what is the justificatin fr actin? Des it cmplement ther actins, prgrams r plicies? Timelines (sectin 2.2) Fr nline applicatin Prvide the time perid f implementatin. The start date is defined as when the first expenses r signed cntract have ccurred r are expected t ccur (r when scaled up prtin f prgram will start). The end date is defined as the initiative/prject expiry date (prgram is n lnger available). Fr capital prjects, the end date is defined as the substantial cmpletin date fr cnstructin. Fr additinal supprting infrmatin (t uplad in the Wrkplan.dc) Prvide date/time range fr when funding is requested. Outline timelines fr each cmpnent r activities and indicate specifically when implementatin f prject is expected t ccur and when emissins reductins are expected t start ccurring. 6

7 Risks and Challenges (sectin 2.4.3, 2.4.4, and 2.4.6) Fr nline applicatin Describe briefly the risks that may affect the prject and mitigatin strategies in place t minimize these risks. Risks are uncertainties r cnstraints that may prevent the prject frm being cmpleted n time, n budget r in its riginal scpe. Few prjects are cmpletely withut risk; hwever, mst successful prjects manage r mitigate their risks thrugh gd planning and nging management. Explain hw thse risks were taken int accunt in yur scenari. Financial risks (2.4.3) Technical risks (2.4.4) Implementatin risks (2.4.5) including market risks Other risks (2.4.6) Fr additinal supprting infrmatin (t uplad in the Wrkplan.dc) The wrk plan shuld indicate any knwn risks and specify hw thse uncertainties may impact the perfrmance f the prject (either in duratin, cst r meeting the requirements). Indicate what actins culd pssibly be taken in advance, r during the prject life cycle, t reduce r mitigate the effect f the risk. Risks assessment shuld include any scial, ecnmic, natural disturbance r ther risks including likelihd and extent f impact. Identify and, if apprpriate, quantify the specific types f risks that may lead t reversals, based n prject specific factrs. Include cnsideratin f whether a prject activity culd result in increased emissins r reduced remvals elsewhere in the cuntry as a result f prject activities (e.g., leakage due t reductin in harvest levels). Indicate whether the prpsed risk mitigatin measures are included in yur prpsed budget (if applicable). Describe the systems/tls/technlgies/prducts/appraches expected t be used r implemented. Describe their availability and readiness (if applicable) and replicability. Identify if the technlgy/prduct/apprach is ff the shelf r is custm, is prven (cmmercial), r if there is a need fr specialized/qualified wrkers t install r use. Identify technical peratinal challenges that culd affect the schedule f the prjects. Indicate whether energy management systems and cntrls have been put in place t ensure the cntinued efficient peratin and maintenance f any retrfit equipment r technlgies. Describe hw uptake f the prgram/prject is expected t unfld. If pssible, prvide examples f similar prjects in yur jurisdictin r elsewhere and success rates, implementatin rates, etc. Identify any technical r implementatin risks that culd prevent achieving the expected results (GHG benefits, energy savings r jb creatin). Identify factrs that culd affect csts. Indicate the likelihd and extent f the ptential impact. Indicate whether there are indirect impacts assciated with the prject r prgram, e.g., carbn leakage t ther jurisdictins, unintended emissin increases in ther sectrs undesirable impacts n air pllutants (e.g., black carbn). Indicate whether prject is replicable at ther lcatins and whether it culd be expanded further r extended lnger. 7

8 3. Outcmes & Benefits GHG Emissin Reductins (sectin 3.1) Fr nline applicatin Please enter the GHG estimates requested in the nline applicatin. The fllwing guidance will prvide what is needed t calculate the GHG reductins estimates. Nte emissin reductins includes increased carbn sequestratin where relevant. Fr additinal supprting infrmatin (t uplad in the Methdlgy.dc) Assessment f the expected (ex ante) GHG impact f the prject requires a number f steps: I. Defining the GHG assessment bundary II. Defining and quantifying the prjected baseline emissins III. Quantifying the prject scenari emissins IV. Determining the incremental emissin reductins expected t result frm the prject, calculated as the difference between emissins with the prject and in the baseline GHGs targeted Fr each f the GHGs affected, applicants are requested t use the glbal warming ptential (GWP) values cntained in Canada s 2017 Natinal Inventry Reprt (Chapter 1 f Part 1 f the Reprt, page 34). These GWP values are prvided in Appendix D f this dcument. Applicants are requested t use the emissin factrs cntained in Canada s 2017 Natinal Inventry Reprt (NIR) (Canada specific emissin factrs in 2017 NIR, Part II, Annex 3, pages r, if nt applicable then use emissin factrs prvided in Part II, Annex 5 f the Reprt, pages ). A summary f these emissins factrs is available upn request. Fr specific capital prjects, if the GHG estimates fr yur prject require use f emissin factrs r GWP factrs that differ frm the Natinal Inventry Reprt (e.g., emissin factrs frm cntinuus emissin mnitring system (CEMS) r carbn cntent measurement), please clearly state the surce, the methdlgy used and ratinale fr using them. I. GHG Assessment Bundaries Fr additinal supprting infrmatin (t uplad in Methdlgy.dc) In the sectr specific guidance prvided in the appendices, applicants are requested t prvide details abut the prject bundary. Mre specifically, applicants shuld clearly state: The type f activity (e.g., reduced energy use, fuel switching; fr agriculture land management, manure management, feeding strategies). The GHGs affected (e.g., CO 2, CH 4 ) per fuel type (if applicable). If relevant, which GHG pls, surces and sinks will be cvered with each prject? Frestry (e.g., abve grund bimass, belw grund bimass, dead rganic matter, sil, harvested wd prducts, substitutin f wd fr ther prducts/energy). Agriculture (e.g., abve grund bimass, belw grund bimass, dead rganic matter, thers). Define the gegraphic regin in which the emissin reductins will ccur. Eligible emissin reductin prjects under the LCEF must ccur in Canada and cntribute t Canada s 2030 target; as such, they must be attributed t Prvinces and Territries (PT) GHG inventries. 8

9 Will GHG benefits accrue in Canada? Nte that emissins reductins shuld ccur within Canada r therwise be captured in Canada s GHG inventry in rder t be eligible fr funding. Will emissins be cunted in yur prvince? If relevant, which end uses fr energy will be cvered? Residential husing end uses (e.g., HVAC, building envelpe, plug lads). Cmmercial buildings and industry end uses (e.g., HVAC, lighting and electrical, cntrls, mtrs, prcess heat system, building envelpe, refrigeratin, cmpressed air r steam and plug lads). If relevant, which facilities will be cvered? If relevant, which technlgy types will be cvered /targeted (e.g., chilled water, steam, gethermal fr energy; fr agriculture variable applicatin rate, n till, feed additives). Fr mdeling purpses please describe in which ecnmic sectr emissins will be reduced. Chse frm the ecnmic sectr list in Appendix E f this dcument. II. Defining and Quantifying Baseline Scenari and GHGs Fr additinal supprting infrmatin (t uplad in Methdlgy.dc) The baseline scenari represents the business as usual emissins that wuld ccur in the absence f the prject. There are tw appraches that can be used t estimate GHG savings frm prpsed activities. 1. Estimate GHG impact fr each element f the activity as a unit savings, r 2. Estimate baseline emissins in the sectr fr the activity, and cmpare t this the emissins estimated t ccur when the prject is implemented. The baseline shuld reflect prjected business as usual emissins that wuld have ccurred in the absence f the prject and assciated activities. It is based n a scenari f plicies, actins, technlgy deplyment and activities expected t ccur in the absence f the prpsal being implemented, r based n a per unit savings apprach. As per the sectr specific guidance, applicants are requested t prvide details f assumptins and cntext that supprts yur quantificatin. Mre specifically, applicants shuld clearly state: Assumptins used t prepare the baseline, including expected uptake r adptin f similar measures/equipment (fr example ther PCF measures such as energy cdes, recmmissining and labelling/disclsure prgrams) that might ccur/be purchased in the absence f the prgram. E.g., what are assumptins abut general imprvements in energy intensity due t technlgical change; what are natural rates f equipment replacement? E.g., what wuld happen t frest r agricultural land carbn? Main factrs that are expected t impact baseline, i.e., what factrs are expected t affect trend line in the absence f this prject. E.g., expected impact f ther plicies such as ther PCF measures, grwth r decline in sectr that differs frm trend line; etc. Fr energy saving, details n the fllwing shuld be prvided t determine the baseline: Fr prgrams including regulated equipment: Is the baseline based n regulated minimum energy perfrmance standard? 9

10 Fr prgrams including un regulated equipment: Is the baseline based n pre retrfit perfrmance f the equipment being replaced? Fr building retrfits and recmmissining: Is the baseline based n estimates f energy/emissins? Have yu examined the sensitivity f the baseline t alternative scenaris f what wuld happen in the absence f the prject? Baseline calculatins will vary depending n the type f prject see guidance in respective sectr specific appendices. III. Defining and Quantifying Prject Scenari and GHGs Fr additinal supprting infrmatin (t be upladed in methdlgy.dc) As per the sectr specific guidance, applicants are requested t prvide details f assumptins and cntext that supprt their quantificatin. Applicants shuld clearly state and explain their assumptins: What direct effects are anticipated, and hw will these effects reduce GHG emissins? Are there indirect energy savings? (e.g., marginal electricity) What is the expected rate f adptin, level f uptake, deplyment (e.g., percentage f ttal stck per year)? What are yur assumptins? What ther assumptins were made and what ther parameters were used in the calculatin f estimates? E.g., Average hme energy cnsumptin r fixed energy savings per measure r based n past average energy savings. Is this a new r existing prject? If new, please explain when prject was r will be frmally annunced. If existing, this culd becme the baseline. Please indicate when prgram was annunced r started, hw lng has it been implemented; indicate clearly hw scpe f activities are being increased, and/r hw prgram is being scaled up. Describe hw prject will achieve GHG reductins that are incremental. Include infrmatin abut the expected utcmes f the existing prgram withut scaling up (e.g., withut LCEF funds). In all cases, denminatrs used fr the baseline shuld stay the same fr yur prject scenari t allw cmparisn. E.g., Frecasted pst retrfit energy cnsumptin culd be based n: Number f buildings r flr space retrfitted Ptential average energy savings per prject/building Fr energy saving, details n the fllwing shuld be prvided t determine the prject scenari: What are the assumptins fr stck turnver, replacement? Hw will the prpsed activity prvide incentives t replace equipment earlier than its end f life? What is the expected life expectancy f the new equipment? Have yu cnsidered evaluating the rebund effects f the prject, if applicable? If yes, hw? Have yu cnsidered issues related t the distributin effects f the prject? 10

11 Fr yur reference: Prtfli Manager benchmarking tl: andresurces/prtfli manager technical reference greenhuse gas emissins 2017 NIR quantificatin methdlgies and emissin factrs prvided in Part II, Annex 3, pages IV. Determining the incremental emissin reductins expected t result frm the prject, calculated as the difference between emissins with the prject and in the baseline GHG reductins (sectin 3.1) Fr nline applicatin This sectin is where the estimates numbers fr GHG reductins that have been calculated shuld be entered in the nline applicatin. Please refer t yur respective sectr specific guidance which prvides detail as t which GHG reductin estimates ttals are t be entered in the nline applicatin. Fr additinal supprting infrmatin (t uplad in the Methdlgy.dc) Estimates f GHG reductins (bth emissins and remvals; measured in tnnes f CO 2 e) GHG estimates are created by cnverting annual energy saved by fuel type, cnverted t GHGs using PT specific emissin factrs fr each fuel, as prvided by ECCC r using site specific emissin factrs, measured carbn cntent r direct GHG measurements with cntinuus emissin mnitring system (CEMS). Nte where emissin reductins/remvals are nt assciated with energy use (e.g., prcess emissins, CO 2 captured thrugh prcess); indicate whether indirect emissins (e.g., electricity use) result frm prcess changes. Shw all related calculatins. Explain calculatins/frmulas used; including factrs and hw they are multiplied (e.g., number f buildings/units t be cvered X average efficiency r annual energy savings per unit in kwh r unit f fuel (which type) X emissin factr =?)) Using sectr specific guidance prvide data/infrmatin in spreadsheet t shw: Annual emissins in CO 2 e by fuel type fr targeted sectr/sub sectr in baseline scenari fr every year frm start year t 2030 (e.g., 2017 t 2030). Include histrical emissins fr past three available years, if applicable. Annual emissins in CO 2 e by fuel type fr targeted sectr/sub sectr in prgram scenari fr every year frm start year t Annual emissin remvals in CO 2 e fr targeted sectr/sub sectr in prgram scenari fr every year frm start year t Annual emissin reductins in CO 2 e by fuel type. The impact f prgram will be the difference in emissins between the baseline and the prgram prjectins. Please refer t the sectr specific guidance. Using infrmatin prvided abve, (frm steps I t IV) prvide cumulative emissins reductins between 2017 r start year and 2030 r end year and, if applicable, emissins reductins between 2017 r start year and

12 Energy Savings (sectin 3.2) Fr nline applicatin Please enter the energy saving estimates requested in the nline applicatin. Please refer t yur respective sectr specific guidance where the numbers t be transcribed are identified. Fr additinal supprting infrmatin (t uplad in the Methdlgy.dc) Estimates f energy savings (in PJ) Using sectr specific guidance prvided r prviding data/infrmatin in dcument r spreadsheet, shw: Annual energy cnsumptin/use in PJ by fuel type frm all units/prcesses fr targeted sectr/sub sectr in baseline scenari fr every year frm start year (e.g., 2017) t Include histrical energy use fr past 5 years. Annual energy use by fuel type in PJ fr targeted sectr/sub sectr in prgram scenari fr every year frm start year t 2030, nting when prgram ends. Annual energy savings in PJ. The impact f prgram will be the difference in energy between the baseline and the prgram prjectins. Using infrmatin prvided abve, prvide cumulative energy savings between 2017 (r start year) and 2030 (r end year). Alternatively, prvide the rate f increase f the verall marginal r average energy efficiency fr the entire stck f the building sub sectr/end use targeted; r estimated percentage efficiency imprvement cmpared t a base year fr prcesses. Estimate the percentage f energy efficiency savings cmpared t the calculated baseline and devices fr cmmercial and industrial sectrs Then prvide annual estimates using this rate as nted abve Fr buildings prjects, what are the base units f measure (e.g., number f huses fr residential; number f buildings r flr space area fr cmmercial r energy use intensity (GJ/m2))? Jb Creatin (sectin 3.3) Fr nline applicatin Please enter the estimate f ttal net direct jbs created by the prject, as requested in the nline applicatin. Fr additinal supprting infrmatin (t uplad in the Methdlgy.dc) Estimates f Jbs Created Estimates f jbs created can be develped using infrmatin n dllars invested and Statistics Canada Input/Output multipliers, r culd be develped using infrmatin n emplyment impacts f similar activities. Calculatins f jbs created shuld explain assumptins, calculatin methdlgy and surces f multipliers r ther infrmatin used. Calculatins culd include assumptins abut the baseline f current jbs against which estimates f incremental jbs are being assessed. This includes indicating whether jbs created under this prject wuld be additinal t jbs created if the gvernment spending had been instead targeted t anther prject. 12

13 Jbs shuld include direct jb and can include indirect jbs where pssible; it shuld be clear what categries f jbs (direct, indirect) are included. Jbs refers t persn years (full time emplyment fr ne persn ver a perid f a year). 4. Key Cnsideratins Describe nn GHG benefits and impacts (sectin 4.2) Fr nline applicatin Prvide an verview f the nn GHG benefits r negative impacts (e.g., cst savings, waste reductin, significant increase f NOx emissin, significant reductin f SOx emissin). Fr additinal supprting infrmatin (t uplad in the Methdlgy.dc) Please prvide the methdlgy, calculatins and all assumptins fr estimates f the nn GHG benefits r impact f each individual prjects. If relevant, prvide estimates in the pre 2030 and pst 2030 perid in qualitative terms, r quantitative if available. E.g., air pllutant r ther health/envirnmental benefits (e.g., bidiversity); reduced waste; ther ecnmic benefits such as encuraging grwth f lw carbn industries. Describe use f federal, prvincial, r ther standardized tls (sectin 4.3 & 4.4) Fr nline applicatin Fr example, Canadian standardized tls r prgrams include: E.g., EnerGuide, EnerGuide Rating System fr huses, ENERGY STAR, Natinal Energy Cde f Canada fr Buildings (NECB), ISO 50001, Superir Energy Perfrmance (SEP). E.g., Carbn Budget Mdel f the Canadian Frest Sectr fr frestry estimates (see change/carbn accunting/13107). Fr additinal supprting infrmatin (t uplad in the Methdlgy.dc) Describe hw these prgrams r tls will be used (e.g., as a prerequisite t retrfit prgrams, t estimate savings impacts, t fulfil mnitring, verificatin and reprting requirements, etc.). Tracking and Mnitring (sectin 4.5) Fr nline applicatin Describe briefly the plan fr mnitring and tracking f the GHG utcmes and ther benefits/impacts. Fr additinal supprting infrmatin (t uplad in the Methdlgy.dc) Describe plans fr measuring and verifying GHG impacts ver time. Identify what prgrams and tls are being used t track and mnitr prgress (e.g., ISO 50001, ENERGY STAR, SEP). Identify where prject activity will be captured in the NIR, i.e., hw data and infrmatin will be made available t use in prducing GHG estimates fr the NIR. Indicate whether target facilities wuld be reprting under CEPA sectin 46 t federal GHG reprting prgram. Tracking and mnitring will vary depending n the type f prjects. Please refer t the sectr specific guidance fr mre details. 13

14 Prgram Audit and Evaluatin Framewrks are imprtant t determine the value f the prgram and whether the bjectives are being met and the prcesses are effective. Have yu cnsidered a Prgram Audit and Evaluatin Framewrk? Csts, Financing and Funding Prfile. 5. Csts Estimated Prject Csts Breakdwn (sectin 5) Fr nline applicatin In this sectin yu are requested t insert csts in the system by categrizing their type and the amunt. Yu can cmbine csts f the same type. Csts refer t the prject cst, the gvernment delivery cst including payments t implementing entities, incentives, administratin csts and mnitring csts Cst categries include: Human resurces Management and prfessinal services Printing, prductin and distributin Equipment and capital Vehicle rental and peratins Cntractrs Overhead and/r administrative Csts incurred fr cancelled prjects Land acquisitin r leasing f land, buildings r ther facilities Leasing equipment ther than equipment directly related t capital wrks Real estate fees and related csts Financing charges, legal fees, and lan interest payments PST and GST / HST fr which ultimate recipient is eligible fr a rebate, and any ther csts eligible fr rebates The system will autmatically establish whether csts are eligible. Fr additinal supprting infrmatin (t uplad in the Financial.dc and/r Financial.xls) A descriptin f csts is requested. Please refer t the sectr specific guidance fr mre details. Nte that administratin and capital csts have t be details fr the initial and nging administratin activities (including administratin f mnitring activities). A breakdwn f cst per activity with timeline will help understand the dynamic f the prject. Please prvide details n csts assciated with mnitring and reprting (if applicable). 6. Financing Prpsed Financing f Eligible Csts (sectin 6.1) Fr nline applicatin In this sectin yu are requested t insert the expected cntributin f each partner including the federal gvernment and their respective share tward the eligible csts. 14

15 Funding Surces (sectin 6.2) Fr additinal supprting infrmatin (t uplad in the Financial.dc and/r Financial.xls) Prvide details f agreements with partners Type f cntributin (lan, grant, etc.) Apprval cntext and schedule Partnership readiness prvide status f agreement (signed cntract/agreement if applicable) Timelines 7. Funding Prfile Schedule table f cntributin per year (sectin 7) Fr nline applicatin In this sectin yu are requested t insert the expected cntributin f each partner per year frm 2017/2018 t 2021/2022 (fiscal year ends n March 31 st ). Fr additinal supprting infrmatin (t uplad in the Financial.dc and/r Financial.xls) Prvide any ther financial assumptins and key parameters in supprt f the financial prjectins. Identify any majr apprval milestnes that may impact funding. 15

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17 APPENDIX A Buildings and Industrial sectrs 3.1 GHG Emissin Reductin Relates t sectin 3.1 f the nline applicatin A. GHG assessment ex ante The fllwing details specific technical and methdlgical guidance fr prpsed prjects in the buildings and industrial sectr and prvides template tables fr presenting GHG emissin reductin estimates. Cmplete these tables as apprpriate and submit them accmpanied by the supprting infrmatin in the methdlgical guidance dcument. Supplementary infrmatin shuld be prvided in a single attachment the (e.g., prject Methdlgy.dc ). There are tw appraches that can be used t estimate GHG savings frm prpsed activities. 1. Estimate GHG impact fr each building participating in the activity as a unit savings, r 2. Estimate baseline emissins in the sectr fr the activity, and cmpare this t the pst retrfit sectr emissin estimates. Fr cmmercial and industrial, nte that estimates f increased energy efficiency per building are nt sufficient; actual GHG reductins per building are required in abslute values, when applicable. Shuld yu require assistance r clarificatin, please cntact us at: ec.lcef fefec.ec@canada.ca Assessment f the expected (ex ante) GHG impact f the prject requires a number f steps addressed in subsequent sectins, with specific cnsideratins fr the buildings and industrial sectrs: I. Defining the GHG assessment bundary (sectin A1). II. III. IV. Defining and quantifying the prjected baseline emissins (sectin A2). Defining and quantifying the prject scenari emissins (sectin A3). Determining the incremental emissin reductins expected t result frm the prject, calculated as the difference between emissins with the prject and in the baseline (sectin A4). Fr prpsed prjects in the buildings and industrial sectr, the GHG assessment shuld be dne frm inceptin f the prject and its related activities t at least Residential and cmmercial and industrial prjects shuld be estimated separately t facilitate the assessment. 17

18 A1. Defining the GHG assessment bundary Applicant shuld prvide necessary cntext in the Prject Descriptin (sectin 2.1.4): Fr building retrfits: whether prgram applies t appliances, equipment (heating, cling, ventilatin), the building envelpe r the entire building (all systems and equipment impacting the ttal energy f the building); the share f energy savings cming frm each cmpnent (equipment, envelpe, full system); the number f buildings and flr space t be retrfitted. Fr residential and bth cmmercial buildings and industry energy efficiency prjects: the tls (i.e., ERS, ISO 50001, and ENERGY STAR) that will be used t ensure a hlistic apprach t energy management t maximize energy savings. Fr industrial energy efficiency prjects: whether prgram applies t devices/equipment r prcesses (r multiple); if multiple, the share f energy savings cming frm new equipment vs. prcesses vs. energy management systems. Indicate the activities with GHG effects that are included and excluded in the assessment. If the prpsal has mre than ne activity, cmplete Table A1 fr each activity. Refer t Annex 1 fr definitins f likelihd and magnitude f impact (minr, mderate, majr) as well as the recmmended apprach fr determining significance based n likelihd and magnitude. At a minimum, the applicant shuld prvide a qualitative assessment f the activities that will be included in the GHG assessment. Table A1. GHG assessment bundary, by activity Name f activity : e.g. residential retrfit prgram GHG effect GHG affected Likelihd (Likely; Very Likely; Unlikely; Very Unlikely) Included (Y/N) Justificatin fr exclusins Example: Increased GHG emissins assciated with energy use t manufacture / transprt eligible prducts Canadian facility X, increase f prductin by Y, assciated GHG emissin = Natural gas cmbustin CO 2 Very Likely N Effect expected t be <5% f ttal based n ecnmic prjectin, see reference x. Reduced GHG emissins assciated with reduced energy use in buildings Statinary Cmbustin surces 1? Energy surces, fuel type? CO 2 CH 4 N 2 O Increased GHG emissins assciated with energy use t manufacture / transprt eligible prducts CO 2 CH 4 N 2 O Other (please describe) e.g. A/C, refrigeratin, famblwing, etc. CH 4 CO 2 1 IPCC categrizatin fr Statinary Cmbustin surces, See 2017 NIR Part III Annex 9, Table A9 2 n page

19 A2. The baseline scenari definitin and emissins Describe in which ecnmic sectr emissins will be reduced, chsing frm the ecnmic sectr list in Appendix E. Fr each activity described in the GHG assessment bundary, include the crrespnding baseline (e.g., business as usual) and cmplete a detailed emissin estimate fr each prjected years and prduce a cumulative fr 2030 and 2050 (if applicable). Baseline scenari is nt a status qu ver the assessment perid. The baseline shuld reflect a nrmal evlutin ver time. Baseline scenari calculatins will vary depending n the type f prject: Residential building retrfit: Energy efficiency assessment/benchmarking are an effective energy management practice t establish baselines. Baseline energy cnsumptin fr the prvince may be apprpriate. Culd be adjusted fr key variables that might impact the energy perfrmance f buildings, such as weather, flr space changes, ccupancy, additin f specific systems/technlgies etc. Cmmercial and Industrial building retrfit: Energy efficiency assessment/benchmarking are an effective energy management practice t establish baselines. In sme cases, prvincial energy cnsumptin data, if disaggregated at the apprpriate level, may be apprpriate fr baseline. Culd be adjusted fr key variables that might impact the energy perfrmance f buildings, such as weather, flr space changes, ccupancy, additin f specific systems/technlgies etc. At a building level, baselines and pst retrfit energy cnsumptin are nrmally adjusted fr key variables including weather. Energy efficiency in residential new buildings: Current Canadian building cdes and regulatins are minimal standards that wuld nrmally be met. It is expected the baseline fr regulated equipment wuld be the regulated Minimum Energy perfrmance Standard (see Annex 2). Fr nn regulated equipment, prvide an average r assumed energy cnsumptin. Energy efficiency cmmercial buildings and in the industrial sectr: Typically, significant energy use shuld be independently assessed. Energy efficiency assessment/benchmarking based n the last three years culd be apprpriate fr certain prjects. Different and multiple denminatrs (unit) may be apprpriate. This shuld be based n the significant energy uses targeted by the prject (e.g., prductin utput (aggregated if apprpriate), thrughput, ccupancy, weather, etc.) Fuel switching r prcess changes in the industrial sectr: Histrical assessment f last 3 years f data represented GHG per unit f prductin is an easy accessible slutin fr creating a baseline. 19

20 Table A2.A. Descriptin f the baseline assumptins and estimatin appraches Infrmatin requirement Respnse 1 Describe the baseline scenari including the plicies, actins and activities that are expected t affect trend line even in the absence f this prject. Include a justificatin f why it is cnsidered the mst likely scenari. 2 Prvide a descriptin with justificatin if implemented r adpted plicies, actins r activities with a ptentially significant effect n GHG emissins have been excluded frm the baseline scenari. 3 Describe the methdlgy and assumptins used t estimate baseline emissins including expected uptake r Please identify the apprach fr estimating pre retrfit energy use f a building, including any building energy mdels that will be leveraged. adptin f similar measures/ equipment that might ccur/be purchased in the absence f the prgram. 4 Other Fr each GHG affected that is included in the assessment, we recmmend using the glbal warming ptential (GWP) values and the emissin factrs cntained in Canada s 2017 Natinal Inventry Reprt t calculate the CO 2 e. We recmmend using the estimatin methds that can be fund in the 2017 NIR Annex 3, sectin A3.5.2 methds, which refers t the NRCan Carbn Budget Mdel. The GWP are prvided in Appendix D and a summary f the emissins factrs is available upn request. Table A2.B Baseline emissin estimates per activity (kiltnnes CO 2 e) Detailed GHG emissin surce per activities (prjectin withut prject effects) Activity (A) e.g., Baseline Building Energy Use Residential detached hme Fuel type r energy used (if electricity) and crrespnding quantities. e.g., Fuel Diesel Electricity Fuel NG Year 1 Quantity 1 PJ CO 2 e 2 Quantity PJ CO 2 e Quantity PJ CO 2 e Year 2 (shw each year) 2030 (shw each year) 2050 (if pssible) Cumulative t 2030 Cumulative t 2050 (if pssible) 1. Specify unit used 2. Canada s Natinal Inventry Submissin (NIR) can be accessed at Cmpile each activity (Table A2.B) int Table A2.C fr energy and int Table A2.D fr GHG. 20

21 Table A2.C Baseline energy assessment (PJ) Energy cnsumptin in PJ Year Activity (A) Baseline Building Energy Use Residential detached hme Activity (B) Baseline Building Energy Use Residential multiunit Year 1 Year 2 (shw each year) 2030 (shw each year) 2050 Cumulative t 2030 Cumulative t 2050 Activity (C) Baseline ther 1 1. If applicable. Table A2.D Baseline emissin estimates (kiltnnes CO 2 e) GHG emissin in CO 2 e Year Activity (A) Baseline Building Energy Use Residential detached hme Activity (B) Baseline Building Energy Use Residential multiunit Year 1 Year 2 (shw each year) 2030 (shw each year) 2050 (if pssible) Cumulative t 2030 Cumulative t 2050 (if pssible) Activity C) Baseline ther 1 1. If applicable. 21

22 A3. The prject scenari definitin and emissins Ttal emissin estimates shuld be prvided in Table A3.C fr the aggregate f all prpsed activities. Separate estimates fr each activity shuld be prvided t increase transparency. Table A3.A. Descriptin f the prject scenari assumptins and mdeling appraches Infrmatin requirement Respnse 1 Describe the prject scenari. What direct effects are anticipated, and hw will these effects reduce GHG emissins? Are there indirect energy savings? The prject scenari emissins are prjected emissins ( emissins refers t emissins and remvals) with the prpsed prject implemented. 2 Describe f the methdlgy and assumptins used t estimate prject scenari emissins. What is expected rate f adptin, level f uptake, deplyment (e.g., % f ttal stck per year)? What are the assumptins fr turnver? Will it prvide incentives t replace equipment earlier than its end f life? Estimatin appraches fr the effects identified in Table A1 shuld be described here. Prvide descriptins f all mdels methdlgies and parameters, and references. Parameters and assumptins shuld be cnservative. The methdlgy shuld be cnsistent with that used fr the baseline. T ensure incrementality, it is expected the baseline fr regulated equipment wuld be the regulated Minimum Energy perfrmance Standard (See Annex 2). The baseline fr un regulated equipment, building envelpe retrfits, and recmmissining, shuld be the recrded pre retrfit cnditin. 3 If yur prject is a scale up frm an existing prgram, describe hw prject will achieve GHG reductins that are incremental. Fr each activity, include the crrespnding effects, cmplete a detailed emissin estimate fr each year and prduce a cumulative fr 2030 and 2050 (if applicable). Fr each GHG affected that is included in the assessment, we recmmend using the glbal warming ptential (GWP) values and the emissin factrs cntained in Canada s 2017 Natinal Inventry Reprt t calculate the CO 2 e. We recmmend using the estimatin methds that can be fund in the 2017 NIR Annex 3, sectin A3.5.2 methds, which refers t the NRCan Carbn Budget Mdel. The GWP are prvided in Appendix D and a summary f the emissins factrs is available upn request. 22

23 Table A3.B Prject emissin estimates per activity (kiltnnes CO 2 e) Detailed GHG emissin surce per activities (prject effects prjectin) Activity (A) e.g., Building Energy Use Residential detached hme Fuel type r energy used (if electricity) and crrespnding quantities. e.g., Fuel Diesel Electricity Fuel NG Year 1 Quantity 1 PJ CO 2 e 1 Quantity 1 PJ CO 2 e Quantity 1 PJ CO 2 e Year 2 (shw each year) 2030 (shw each year) 2050 Cumulative t 2030 Cumulative t Specify unit used 2. Canada s Natinal Inventry Submissin (NIR) can be accessed at Cmpile each activity (table A3.B) int Table A3.C fr energy and int Table A3.D fr GHG. Table A3.C. Prject scenari energy assessment estimates (PJ) Prject energy assessment Year Activity (A) Building Energy Use Residential detached hme Activity (B) Building Energy Use Residential multi unit Year 1 Year 2 (shw each year) 2030 (shw each year) 2050 Cumulative t 2030 Cumulative t If applicable. Activity (C) Other 1 Table A3.D. Prject scenari expected emissin/results estimates (kiltnnes CO 2 e) Prject GHG emissin estimates Year Activity (A) Building GHG Activity (B) Building GHG Activity (C) Other 1 Residential detached hme Residential multi unit Year 1 Year 2 (shw each year) 2030 (shw each year) 2050 Cumulative t 2030 Cumulative t If applicable. 23

24 A4: Expected incremental emissins reductins Expected incremental emissin reductins that result frm the prject are calculated as the difference between expected emissins with the prject (Table A3.C) and emissins in the baseline (Table A2.C), r in the case f a Unit Savings apprach in A2, as the calculated incremental GHG reductin fr each activity. In Table A4.A and B, prvide incremental energy saving and emissins reductin resulting frm the aggregate f all activities listed in Table A1. Table A4.A Incremental energy saving estimates 1 (PJ) Net Energy Saving Year Activity (A) Incremental Building Energy Use Residential detached hme Activity (B) Incremental Building Energy Use Residential multi unit Activity (C) Increment ther 2 Year 1 Year 2 (shw each year) 2030 (shw each year) 2050 Cumulative t 2030 Cumulative t Negative values are energy saving. Psitive values are energy cnsumptin increases. 2. If applicable. Net Energy Saving Table A4.B Incremental emissin reductin estimates 1 (kiltnnes CO 2 e) GHG emissin Year Activity (A) Incremental Building GHG Residential detached hme Activity (B) Incremental Building GHG Residential multiunit Activity (C) Increment ther 2 Net GHG emissin reductin Year 1 Year 2 (shw each year) 2030 (shw each year) 2050 Cumulative t 2030 Cumulative t Negative values are emissin reductins r remval increases. Psitive values are emissin increases r remval decreases. 2. If applicable. Light green cases in the Table A4A and Table A4B abve crrespnd t the infrmatin required in the Online Applicatin. 24

25 A5: Expected jb creatin Describe yur assumptins and methdlgy t prduce the estimates f jbs created frm the applicatin f yur prjects. A6: Risks and factrs that culd impact prgram delivery Explain ptential risks in detail and hw they are taken int accunt in yur scenari. 25

26 B. Cst and financial assessment The fllwing details specific technical and methdlgical guidance fr estimating csts assciated with prpsed prjects t cmplement the csting infrmatin. Cmplete these tables as apprpriate and submit them alng with the additinal supprting infrmatin required frm the methdlgical guidance dcument. We suggest rganizing this supplementary infrmatin in a single attachment (e.g., prject Financial.xls and/r prject Financial.dc). Shuld yu require assistance r clarificatin, please cntact us at: ec.lcef fefec.ec@canada.ca B1. The prject cst The prject cst is the gvernment delivery cst including payments t implementing entities, incentives, administratin csts and mnitring csts (i.e. the ttal federal and prvincial r territrial csts). It can include gvernment in kind csts. In Table B1.A, enter infrmatin n expected prgram csts fr each activity, divided int it majr cmpnent actins. Explain the methdlgy used t derive the estimates, including references, assumptins and key parameters. Table B1.A. Ttal expected prgram by activity and year ($000) Cst categry (e.g. activities and their cmpnent actins) Federal cst Prvincial cst Ttal prject cst Activity (A) Building Residential detached hme Estimatin methdlgy: Based n Year 1 Administratin Hmewner incentives Impact Assessment Ttal Year Year 2 (shw fr all years f prgram delivery) Activity (B) Building Residential multi unit Estimatin methdlgy: Based n Year 1 Ttal all activities 26

27 In Table B1.B, enter infrmatin n prject csts by cst categry, indicating expected breakdwn between federal and prvincial financing. This table refers t sectin 5 f the nline applicatin. Table B1.B. Expected prject csts, by cst categry ($) Categry \ Ttal csts fr the perid f the prject Human resurces Management and prfessinal services Printing, prductin and distributin Equipment and capital Vehicle rental and peratins Cntractrs Overhead and/r administrative Csts incurred fr cancelled prjects Land acquisitin r leasing f land, buildings r ther facilities Leasing equipment ther than equipment directly related t capital wrks Real estate fees and related csts Financing charges, legal fees, and lan interest payments PST and GST / HST fr which ultimate recipient is eligible fr a rebate, and any ther csts eligible fr rebates Federal cst Prvincial cst Ttal prject cst B2. Prject cst per tnne Applicants can prvide the cst per tnne per prject alng with the assumptins, calculatins and discunt rates used. Applicant shuld be cnsistent in the methdlgy used frm ne prject t anther. 27

28 C. Mnitring prgram perfrmance ex pst Relates t sectin 4.5 f the nline applicatin The fllwing details specific technical and methdlgical guidance fr prpsed prjects in the buildings sectr and prvides tables fr presenting mnitring and reprting infrmatin. Cmplete these tables as apprpriate and submit them as a single attachment alng with yur cmpleted prject prpsal template. Shuld yu require assistance r clarificatin, please cntact us at: ec.lcef fefec.ec@canada.ca Funded prjects will be required t prepare annual reprts and final reprts at the end f the prject. Tracking and mnitring will vary depending n the type f prjects. Here are a few examples: Residential building retrfit: Energy efficiency assessment after retrfitting Cmmercial r Industrial building retrfit: Energy efficiency assessment after retrfitting Energy efficiency in residential buildings: Energy mdelling cmparing plans t building cdes. Energy efficiency in the cmmercial buildings and the industrial sectr: Thrugh an energy management system r an energy efficiency assessment after imprvement nrmalized in energy r GHG per key indicatrs such as prductin, square ft, HDD/CDD (weather), etc. Fuel switching r prcess changes in the industrial sectr: Assessment represented GHG per unit f prductin C1: Plan fr mnitring GHG effects ex pst Table C1: Plan t mnitr the GHG effects f the prject (ex pst) Infrmatin requirement Respnse 1 Describe the plan fr mnitring, measuring and verifying GHG impacts f the prject and its assciated activities t prvide annual estimates f GHG impacts. Describe plans fr the cllectin f activity data, measurements, mdelling and verificatin s as t be able t prvide annual estimates f the prject GHG impact. Indicate what will be measured, hw measurements will be used, and mdelling appraches that will be used. Highlight any federal tls that will supprt mnitring f GHG effects such as ISO 50001, ENERGY STAR, etc. The GHG mnitring shuld result in estimates that are methdlgically cmparable with the estimates in the GHG Natinal Inventry Reprt (NIR) and allw the impacts f the prject t be captured annually t meet reprting requirements C2: Plan fr mnitring nn GHG effects ex pst Table C2: Plan t mnitr the nn GHG effects f the prject (ex pst) Infrmatin requirement Respnse 1 Describe the plan fr measuring the nn GHG impacts f the prject. Describe key perfrmance indicatrs/parameters fr nn GHG impacts (e.g. emplyment impacts, indigenus participatin, c benefits), hw they will be measured, and frequency f measurement. 28

29 C3: Requirement fr federal assistance and tls Table C3. Federal assistance and tls Infrmatin requirement Respnse 1 Describe expected requirements fr federal technical assistance r tls Describe expected requirements fr federal technical assistance and tls (e.g., EnerGuide Ratings System, ISO and ENERGY STAR) that are needed t prduce estimates fr annual reprts, and t ensure that estimates can be captured in Canada s GHG Natinal Inventry Reprt. 29

30 Annex 1: Likelihd and magnitude f GHG effects The fllwing guidance is frm Wrld Resurces Institute (2014), Plicy and Actin Standard: An Accunting and Reprting Standard fr Estimating the Greenhuse Gas Effects f Plicies and Actins (Sectin 7). and actin standard Assessing likelihd f GHG effects Assessing relative magnitude f GHG effects Apprach fr determining significance based n likelihd and magnitude 30

31 Annex 2: Minimum Energy Perfrmance Standards Canada's Energy Efficiency Act prvides fr the making and enfrcement f regulatins cncerning minimum energy perfrmance levels fr energy using prducts, as well as the labelling f energy using prducts and the cllectin f data n energy use. Minimum regulated energy perfrmance requirements fr building equipment can be fund at the fllwing website. cdes standards/6861 Nte that sme prvincial gvernments als regulate energy using prducts. In sme cases, prvincial regulatins may differ frm federal requirements r may apply t ther types f energy using equipment. Federal regulatins d nt take precedence ver prvincial regulatins. An imprtant element f the Pan Canadian Framewrk energy efficient building strategy is t psitin Canadian standards at leadership levels in Nrth America fr key technlgies by setting minimum energy perfrmance standards t the highest level f efficiency that is ecnmically and technically achievable in rder t supprt new regulatins in the pre 2030 perid. Use f incentives can help accelerate market adptin f high efficiency equipment by helping demnstrate prf f cncept, disseminate case studies and best practices, and build capacity in training, design and installatin. These activities can help manufacturers prduce and distribute these technlgies at lwer csts and accelerate market adptin. Once these prducts can be regulated t high energy perfrmance levels, incentives will nt be needed and energy savings and GHG reductins are btained frm every prduct sld. The fllwing table identifies equipment and minimum perfrmance criteria in supprt f a lnger term regulatry agenda. These measures align with the Market Transfrmatin Strategies that will be presented at the Energy and Mines Ministers Cnference in August The methdlgy used t develp the energy savings belw is similar t the methd emplyed in the Cst Benefit analysis fr the regulatry impact analysis statement. Targeted PCF Equipment Technlgies Measure Suggested Minimum Perfrmance Energy Savings per unit (MJ) Gas fired strage water heaters 0.8 EF 4,750 Gas fired tankless water heaters 0.9 EF 5,390 Electric heat pump water heaters 2.0 EF 9,104 Cld climate electric air surce 2.5 COP heat pumps (Central) (NEEP listed) 26,855 Cld climate electric air surce 2.5 COP heat pumps (ductless) (NEEP listed) 7,378 Windws U value= Cmmercial furnaces /rftp 90% TE 53,890 Cmmercial gas fired strage water heaters 90% TE 17,620 31

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33 APPENDIX B Frestry 3.1 GHG Emissin Reductin Relates t sectin 3.1 f the nline applicatin A. GHG assessment ex ante The fllwing details specific technical and methdlgical guidance fr prpsed prjects in the frestry sectr and prvides template tables fr presenting GHG emissin reductin estimates. Cmplete these tables as apprpriate and submit them accmpanied by the supprting infrmatin in the methdlgical guidance dcument. Supplementary infrmatin shuld be prvided in a single attachment the (e.g., prject Methdlgy.dc ). Shuld yu require assistance r clarificatin, please cntact us at: ec.lcef fefec.ec@canada.ca Assessment f the expected (ex ante) GHG impact f the prject requires a number f steps addressed in subsequent sectins, with specific cnsideratins fr the frestry sectr: I. Defining the GHG assessment bundary (sectin A1). II. III. IV. Defining and quantifying the prjected baseline emissins (sectin A2). Defining and quantifying the prject scenari emissins (sectin A3). Determining the incremental emissin reductins expected t result frm the prject, calculated as the difference between emissins with the prject and in the baseline (sectin A4). Fr prpsed prjects in the frestry sectr, the GHG assessment shuld be dne fr the lifetime f the prjects: frm inceptin f the prject and its related activities t at least The perid t 2050 may be a mre apprpriate lifetime given that impacts n carbn pls may ccur far int the future (e.g., a tree grws fr many decades after it is planted). In the tables in Sectin A and C it is assumed that the perid t 2050 is used fr lifetime, but anther perid culd be used in these tables prvided that it ges t at least A1. Defining the GHG assessment bundary Ensure yu prvided necessary cntext in the Prject Descriptin (sectin 2.1.4); descriptin f activities, number f hectares per activity per year, type f land/frest, under management (harvesting) r nt, cnservatin area, n public r private land. Indicate the carbn pls, surces and sinks, and GHGs t be included r excluded frm the assessment. If the prpsal has mre than ne activity, cmplete Table A1 fr each activity. Refer t Annex 1 fr definitins f likelihd and magnitude f impact (minr, mderate, majr) as well as the recmmended apprach fr determining significance based n likelihd and magnitude and, t Annex 2 fr descriptins f the pls, surces and sinks. 33

34 At a minimum, the applicant shuld prvide a qualitative assessment f the activities that will be included in the GHG assessment. Table A1. GHG assessment bundary, by activity Name f activity : e.g. refrestatin GHG pl, surce r sink GHG affected Likelihd (Likely; Very Likely; Unlikely; Very Unlikely) Included (Y/N) Justificatin fr exclusins Example: Sil CO 2 Very Likely N The pl is very likely t be affected but the magnitude f the effect will be minr Frest ecsystem 1.1 Living bimass abve grund CO Living bimass belw grund CO Dead rganic matter (DOM) CO 2 including bilgical emissins CH 4 frm n site burning f residual N bimass 2 O 1.4 Sil CO 2 Harvested wd prducts 2.1 Harvested wd prducts 1 CO 2 CH 4 N 2 O Displacement 3.1 Substitutin between wd prducts and ther prducts Describe the prduct displaced 3.2 Substitutin between wd energy and ther energy Other surces/sinks and GHGs 4.1 Emissins frm fssil fuel use in frest peratins Mbile surce and/r statinary surces 4.2 Other (define e.g. emissins assciated with the prductin f fertilizer) CO 2 CH 4 N 2 O CO 2 CH 4 N 2 O CO 2 CH 4 N 2 O CO 2 CH 4 N 2 O 1. In Canada s GHG Natinal Inventry Reprt (NIR), half lives are used t represent the emissins t the atmsphere frm harvested wd prducts in use. At the end f the useful life f harvested wd prducts, carbn is assumed t be instantly xidized. CO 2 emissins frm HWPs in use are reprted within the land sectr and the nn CO 2 emissins are reprted in the energy sectr in the NIR in accrdance with IPCC reprting guidance. Canada s NIR (see Part 1, Chapter 6 and Part 2, Sectin A3.5) is at 34

35 A2. The baseline scenari definitin and emissins Land use will affect hw yu will apprach the determinatin f yur baseline. In cases where baseline land use and carbn sequestratin culd be reasnably assumed t be stable (e.g., affrestatin); histrical assessment f last 3 5 years f data may be suitable. Where human activity (e.g., tree harvesting) r natural prcesses (e.g., tree grwth) affect carbn, yu will need t develp prjectins f land use and carbn sequestratin. Table A2.A. Descriptin f the baseline assumptins and estimatin appraches Infrmatin requirement Respnse 1 Describe the baseline scenari including the plicies, actins and activities included in the scenari. Include a justificatin f why it is cnsidered the mst likely scenari. 2 Prvide a descriptin with justificatin if implemented r adpted plicies, actins r activities with a ptentially significant effect n GHG emissins have been excluded frm the baseline scenari. 3 Describe the methdlgy and assumptins used t estimate baseline emissins. Estimatin appraches fr the pls, surces and sinks identified in Table A1 shuld be described here. Descriptins f all mdels, methdlgies and parameters shuld be prvided, as well as all references and surces. 4 Hw des the methdlgy relate t that used in Canada s GHG Natinal Inventry Reprt 1? 1. Canada s Natinal Inventry Submissin (NIR) can be accessed at Fr each activity, dcument the annual baseline emissins (e.g., business as usual) frm the first year f implementatin t 2050 and the cumulative emissins t 2030 and 2050 in Table A2.B.Fr each GHG affected that are included in the assessment, we recmmend using the glbal warming ptential (GWP) values, and the emissin factrs if relevant, cntained in Canada s 2017 Natinal Inventry Reprt t calculate the CO 2 e. We recmmend using the estimatin methds that can be fund in the 2017 NIR Annex 3, sectin A3.5.2 methds, which refers t the NRCan Carbn Budget Mdel r, if nt applicable, any scientifically sund estimatin methd. Fr the latter, please describe the methdlgy. The GWP are prvided in Appendix D and a summary f the emissins factrs is available upn request. 35

36 Table A2.B Baseline emissin estimates 1 (kiltnnes CO 2 e) Year Baseline Baseline harvested Baseline Baseline ther 2 ecsystem wd prducts2 2 displacement 2 (A) (B) (C) (D) Year 1 Year 2 (shw each year) 2030 (shw each year) 2050 Cumulative t 2030 Cumulative t Sinks are negative, and emissins are psitive. 3. If applicable. A3. The prject scenari definitin and emissins Ttal emissin estimates shuld be prvided in Table A3.B fr the aggregate f all prpsed activities. Separate estimates fr each activity shuld be prvided t increase transparency. Table A3.A. Descriptin f the prject scenari assumptins and mdeling appraches Infrmatin requirement Respnse 1 Describe the prject scenari. What direct effects are anticipated, and hw will these effects reduce GHG emissins? The prject scenari emissins are prjected emissins ( emissins refers t emissins and remvals) with the prpsed prject implemented. 2 Describe the methdlgy and assumptins used t estimate prject scenari emissins. 3 Hw des the methdlgy relate t that used in Canada s GHG Natinal Inventry Reprt? Estimatin appraches fr the pls, surces and sinks identified in Table A1 shuld be described here. Prvide descriptins f all mdels methdlgies and parameters, and references and surces. Parameters and assumptins shuld be cnservative. The methdlgy shuld be cnsistent with that used fr the baseline. Fr each activity, include the crrespnding effects, cmplete a detailed emissin estimate fr each year and prduce a cumulative fr 2030 and 2050 (if applicable). Fr each GHG affected that are included in the assessment, we recmmend using the glbal warming ptential (GWP) values, and the emissin factrs if relevant, cntained in Canada s 2017 Natinal Inventry Reprt t calculate the CO 2 e. We recmmend using the estimatin methds that can be fund in the 2017 NIR Annex 3, sectin A3.5.2 methds, which refers t the NRCan Carbn Budget Mdel r, if nt applicable, any scientifically sund estimatin methd Fr the latter, please describe the methdlgy. The GWP are prvided in Appendix D and a summary f the emissins factrs is available upn request. 36

37 Table A3.B. Prject scenari emissin estimates 1 (kiltnnes CO 2 e) Year\Prject Ecsystem Harvested wd prducts 2 Displacement 2 Other 2 (A) (B) (C) (D) Year 1 Year 2 (shw each year) 2030 (shw each year) 2050 Cumulative t 2030 Cumulative t Sinks are negative, and emissins are psitive. 3. If applicable. A4: Expected incremental emissins reductins Expected incremental emissin reductins that result frm the prject are calculated as the difference between expected emissins with the prject (Table A3.B) and emissins in the baseline (Table A2.B). In Table A4, prvide incremental emissins reductin resulting frm the aggregate f all activities listed in Table A1. Table A4. Incremental emissin reductin estimates (kiltnnes CO 2 e) Year\Prject Incremental Incremental Incremental Incremental Incremental ecsystem harvested displacement 1 ther 1 ttal wd prducts 1 (A) (B) (C) (D) (E) Year 1 Year 2 (shw fr each year) Cumulative t 2030 Cumulative t If applicable. Light green cases in the Table A4A abve crrespnd t the infrmatin required in the Online Applicatin. A5: Expected jb creatin Describe yur assumptins and methdlgy t prduce the estimates f jbs created frm the applicatin f yur prject. A6: Risks and factrs that culd impact prject delivery Explain ptential risks in detail and hw they are taken int accunt in yur scenari. 37

38 B. Cst and financial assessment The fllwing details specific technical and methdlgical guidance fr estimating csts assciated with prpsed prjects t cmplement the csting infrmatin. Cmplete these tables as apprpriate and submit them alng with the additinal supprting infrmatin required frm the methdlgical guidance dcument. We suggest rganizing this supplementary infrmatin in a single attachment the (e.g., prject Financial.xls and/r prject Financial.dc). Shuld yu require assistance r clarificatin, please cntact us at: ec.lcef fefec.ec@canada.ca B1. The prject cst The prject cst is the gvernment delivery cst including payments t implementing entities, incentives, administratin csts and mnitring csts (i.e. the ttal federal and prvincial r territrial csts). It can include gvernment in kind csts. In Table B1.A, enter infrmatin n expected prject csts fr each activity, divided int its majr cmpnent actins. Explain the methdlgy used t derive the estimates, including references, assumptins and key parameters. Table B1.A. Ttal expected prgram csts, by activity ($) Cst categry (e.g. activities and their cmpnent actins) Federal cst Prvincial cst Ttal prject cst Activity 1 : e.g. 5 year refrestatin prject Estimatin methdlgy: (Fr example: cst may be determined based n the average csts per area f the activity in the last X years) Surveys Seedlings Site Preparatin Administratin Mnitring Rad maintenance Other Ttal Ttal all activities In Table B1.B, enter infrmatin n expected prject csts fr the time perid f prject implementatin. Explain the methdlgy used t derive the cst estimates, including all references and key parameters. 38

39 Table B1.B Annual expected prject csts ($) Federal cst Prvincial cst Ttal prject Year cst Activity 1 : e.g. 5 year refrestatin prject Year 1 Year 2 (shw all years) 2030 (shw all years) 2050 Cumulative t 2030 Cumulative t 2050 In Table B1.C, enter infrmatin n prject csts by cst categry, indicating expected breakdwn between federal and prvincial financing. This table refers t sectin 5 f the nline applicatin. Table B1.C Expected prject csts, by cst categry ($) Categry \ Ttal csts fr the perid f the prject Human resurces Management and prfessinal services Printing, prductin and distributin Equipment and capital Vehicle rental and peratins Cntractrs Overhead and/r administrative Csts incurred fr cancelled prjects Land acquisitin r leasing f land, buildings r ther facilities Leasing equipment ther than equipment directly related t capital wrks Real estate fees and related csts Financing charges, legal fees, and lan interest payments PST and GST / HST fr which ultimate recipient is eligible fr a rebate, and any ther csts eligible fr rebates Federal cst Prvincial cst Ttal prject cst B2. Prject cst per tnne Applicants can prvide the estimated cst per tnne per prject alng with the assumptins, calculatins, csts included and discunt rates used. Applicants shuld be cnsistent in the methdlgy used frm ne prject t anther. 39

40 C. Mnitring prject perfrmance ex pst Relates t sectin 4.5 f the nline applicatin The fllwing details specific technical and methdlgical guidance fr prpsed prjects in the frestry sectr and prvides tables fr presenting mnitring and reprting infrmatin. Cmplete these tables as apprpriate and submit them as a single attachment alng with yur cmpleted prject prpsal template. Shuld yu require assistance r clarificatin, please cntact us at: ec.lcef fefec.ec@canada.ca Funded prjects will be required t prepare annual reprts and final reprts at the end f the prject. C1: Plan fr mnitring GHG effects ex pst Table C1: Plan t mnitr the GHG effects f the prject (ex pst) Infrmatin requirement Respnse 1 Describe the plan fr mnitring, measuring and verifying GHG impacts f the prject and its assciated activities t prvide annual estimates f GHG impacts. Describe plans fr the cllectin f activity data, measurements, mdelling and verificatin s as t be able t prvide annual estimates f the prject GHG impact ver a specific perid. Indicate what will be measured, hw measurements will be used, and mdelling appraches that will be used. The GHG mnitring shuld result in estimates that are methdlgically cmparable with the estimates in the Natinal Inventry Reprt (NIR) and allw the impacts f the prject t be captured annually t meet reprting requirements. In the NIR, frest ecsystem carbn dynamics are estimated using the Carbn Budget Mdel f the Canadian Frest Sectr (CBM CFS3). The carbn transferred frm frest ecsystems t harvested wd prducts including bienergy is tracked and reprted using the Carbn Budget Mdel Framewrk fr Harvested Wd Prducts. C2: Plan fr mnitring nn GHG effects ex pst Table C2: Plan t mnitr the nn GHG effects f the prject (ex pst) Infrmatin requirement Respnse 1 Describe the plan fr measuring the nn GHG impacts f the prject. Describe key perfrmance indicatrs/parameters fr nn GHG impacts (e.g. emplyment impacts, indigenus participatin, c benefits), hw they will be measured, and frequency f measurement. C3: Requirement fr federal assistance and tls Table C3. Federal assistance and tls Infrmatin requirement Respnse 1 Describe expected requirements fr federal technical assistance r tls Describe expected requirements fr federal technical assistance and tls (e.g. Carbn Budget Mdel f the Canadian Frest Sectr CBM CFS3) that are needed t prduce estimates fr annual reprts, and t ensure that estimates can be captured in Canada s GHG Natinal Inventry Reprt. 40

41 Annex 1: Likelihd and magnitude f GHG effects The fllwing guidance is frm Wrld Resurces Institute (2014), Plicy and Actin Standard: An Accunting and Reprting Standard fr Estimating the Greenhuse Gas Effects f Plicies and Actins (Sectin 7). and actin standard Assessing likelihd f GHG effects Assessing relative magnitude f GHG effects Apprach fr determining significance based n likelihd and magnitude 41

42 Annex 2: Pls, surces and sinks Reference table f GHG pls/surces/sinks Carbn pl/ surce/sink Descriptin categry Frest ecsystem 1.1 Living bimass abve grund Standing abve grund live tree carbn, CO 2 Relevant greenhuse gases 1.2 Living bimass belw grund Living belw grund tree carbn CO Dead rganic matter (DOM) including the Carbn in deadwd and litter. Standing dead tree carbn, fallen dead tree carbn, litter and duff CO 2, CH 4, N 2 O bilgical emissins frm n site burning f residual bimass including the emissins frm the cmbustin f wdy debris (i.e. slash) 1.4 Sil Carbn in the sil rganic hrizn and mineral sil CO 2 Harvested wd prducts 2.1 Harvest wd prducts Harvested wd prducts in use in cmmdities (e.g. sawnwd, panels, industrial rundwd, pulp and paper), bienergy, and pst cnsumer treatment (burned r instantly xidized) and dispsed f in landfills. (If emissins frm wd prducts dispsed in lands fills are t be mdeled, include the results here therwise assume instant xidatin at the end f time in use.) Displacement 3.1 Substitutin between wd prducts and ther prducts 3.2 Substitutin between wd energy and ther energy Other 4.1 Emissins frm fssil fuel use in frest peratins mbile surce and/r statinary surces Emissins avided in sectrs utside f the frest sectr as a result f increased use f wd prducts. Guidance n quantifying displacement effects can be fund in Smyth et al (2017) 1 which prvides prduct displacement f 0.54 tnnes carbn displaced per tnne carbn used fr sawnwd and 0.45 tnnes carbn displaced per tnne carbn used fr wd panels. Emissins avided in sectrs utside the frest sectr as a result f increased prductin f wdbased energy. Guidance n quantifying displacement effects can be fund in Smyth et al (2017) 1. Emissins related t frest peratins such as use f machinery r vehicles. CO 2, (CH 4, N 2 O) CO 2, CH 4, N 2 O CO 2, CH 4, N 2 O CO 2, CH 4, N 2 O 4.2 Other Fr example, emissins assciated with the prductin f fertilizer CO 2, CH 4, N 2 O 1. Smyth et al (2017). Estimating prduct and energy substitutin benefits in natinal scale mitigatin analyses fr Canada. GCB Bienergy 9(6): di: /gcbb

43 APPENDIX C Agriculture 3.1 GHG Emissin Reductin Relates t sectin 3.1 f the nline applicatin A. GHG assessment ex ante The fllwing details specific technical and methdlgical guidance fr prpsed prjects in the agriculture sectr and prvides template tables fr use in preparing GHG emissin reductin estimates. Cmplete these tables as apprpriate and submit them accmpanied by the additinal supprting infrmatin in the methdlgical guidance dcument. Supplementary infrmatin shuld be prvided in a single attachment (e.g., prject Methdlgy.dc ). Shuld yu require assistance r clarificatin, please cntact us at: ec.lcef fefec.ec@canada.ca Assessment f the expected (ex ante) GHG impact f the prject requires a number f steps addressed in subsequent sectins, with specific cnsideratins fr the agriculture sectr: I. Defining the GHG assessment bundary (sectin A1). II. III. IV. Defining and quantifying the prjected baseline emissins (sectin A2). Defining and quantifying the prject scenari emissins (sectin A3). Determining the incremental emissin reductins expected t result frm the prject, calculated as the difference between emissins with the prject and in the baseline (sectin A4). Fr prpsed prjects in the agriculture sectr, the GHG assessment shuld be dne frm inceptin f the prject and its related activities t at least The perid t 2050 may be a mre apprpriate lifetime in sme cases given that impacts n carbn pls may ccur far int the future. In the tables in Sectin A and C it is assumed that the perid t 2050 is used fr lifetime, which may be mre apprpriate given that impacts n carbn levels in agricultural sils may ccur ver a lng perid f time. Hwever, anther perid culd be used prvided that it ges t at least A1. Defining the GHG assessment bundary Ensure yu prvided necessary cntext in the Prject Descriptin (sectin 2.1.4); descriptin f activities, number f hectares per activity per year, type f land, under explitatin r cnservatin area, etc. Indicate the carbn pls, surces and sinks, and GHGs t be included r excluded frm the assessment. If the prpsal has mre than ne activity, cmplete Table A1 fr each activity. Refer t Annex 1 fr definitins f likelihd and magnitude f impact (minr, mderate, majr) as well as the recmmended apprach fr determining significance based n likelihd and magnitude and t Annex 2 fr descriptins f the pls, surces and sinks. 43

44 At a minimum, the applicant shuld prvide a qualitative assessment f the activities that will be included in the GHG assessment. Table A1. GHG assessment bundary, by activity Name f activity : e.g. cnservatin crpping GHG surce r sink GHG affected Likelihd (Likely; Very Likely; Unlikely; Very Unlikely) Included (Y/N) Justificatin fr exclusins Example: Sil CO 2 Very Likely Y The sink is very likely t be affected and the effect will be mderate Agricultural sils 1.1 Crpland CO Grassland CO 2 Livestck 2.1 Enteric fermentatin (incl. CH 4 feeding strategies and additives, etc.) 2.2 Manure management (incl. strage and treatment, etc.) CH 4 N 2 O Crps 3.1 Inrganic fertilizers applicatin N 2 O 3.2 Animal manure applied t sils N 2 O 3.3 Irrigatin N 2 O Other surces/sinks and GHGs 4.1 Emissins frm n farm fuel use in agricultural peratins Mbile surce and/r statinary surces CO Other (define e.g. emissins displaced frm bifuels and/r bienergy) CO 2 CH 4 N 2 O A2. The baseline scenari definitin and emissins Land use will affect hw yu will apprach the determinatin f yur baseline. In cases where baseline land use and carbn sequestratin culd be reasnably assumed t be stable (e.g., grassland); histrical assessment f last 3 5 years f data may be suitable. Where human activity affects carbn, yu will need t develp prjectins f land use and carbn sequestratin. 44

45 Table A2.A. Descriptin f the baseline assumptins and estimatin appraches Infrmatin requirement Respnse 1 Describe the baseline scenari including the plicies, actins and activities included in the scenari. Include a justificatin f why it is cnsidered the mst likely scenari. 2 Prvide a descriptin with justificatin if implemented r adpted plicies, actins r activities with a ptentially significant effect n GHG emissins have been excluded frm the baseline scenari. 3 Describe the methdlgy and assumptins used t estimate baseline emissins. Estimatin appraches fr the surces and sinks identified in Table A1 shuld be described here. Descriptins f all mdels, methdlgies and parameters shuld be prvided, as well as all references and surces. 4 Hw des the methdlgy relate t that used in Canada s GHG Natinal Inventry Reprt 1? Explain and justify differences. 1. Canada s Natinal Inventry Submissin (NIR) can be accessed at Fr each activity dcument the annual baseline emissins (e.g., business as usual) frm the first year f implementatin t 2050 and the cumulative emissins t 2030 and 2050 in Table A2.B Fr each GHG affected that are included in the assessment, we recmmend using the glbal warming ptential (GWP) values and the emissin factrs if relevant, cntained in Canada s 2017 Natinal Inventry Reprt t calculate the CO 2 e. The GWP are prvided in Appendix D and a summary f the emissins factrs is available upn request. Table A2.B Baseline emissin estimates 1 (kiltnnes CO 2 e) Year Baseline Agricultural sils 2 Baseline Livestck 2 Baseline Crps 2 Baseline Other 2 (A) (B) (C) (D) Year 1 Year 2 (shw each year) 2030 (shw each year) 2050 Cumulative t 2030 Cumulative t Sinks are negative, and emissins are psitive. 5. If applicable. 45

46 A3. The prject scenari definitin and emissins Ttal emissin estimates shuld be prvided in Table A3.B fr the aggregate f all prpsed activities. Separate estimates fr each activity shuld be prvided t increase transparency. Table A3.A. Descriptin f prject scenari assumptins and mdeling appraches Infrmatin requirement Respnse 1 Describe the prject scenari. What direct effects are anticipated, and hw will these effects reduce GHG emissins? The prject scenari emissins are prjected emissins ( emissins refers t emissins and remvals) with the prpsed prject implemented. 2 Describe the methdlgy and assumptins used t estimate prject scenari emissins. 3 Hw des the methdlgy relate t that used in Canada s GHG Natinal Inventry Reprt? Estimatin appraches fr the surces and sinks identified in Table A1 shuld be described here. Prvide descriptins f all mdels methdlgies and parameters, and references and surces. Parameters and assumptins shuld be cnservative. The methdlgy shuld be cnsistent with that used fr the baseline. Fr each activity include the crrespnding effects, cmplete a detailed emissin estimate fr each years and prduce a cumulative fr 2030 and 2050 (if applicable). Fr each GHG affected that are included in the assessment, we recmmend using the glbal warming ptential (GWP) values and the emissin factrs if relevant, cntained in Canada s 2017 Natinal Inventry Reprt t calculate the CO 2 e. The GWP are prvided in Appendix D and a summary f the emissins factrs is available upn request. Table A3.B. Prject scenari emissin estimates 1 (kiltnnes CO 2 e) Year\Prject Agricultural sils 2 Livestck 2 Crps 2 Other 2 (A) (B) (C) (D) Year 1 Year 2 (shw each year) 2030 (shw each year) 2050 Cumulative t 2030 Cumulative t Remvals are negative, and emissins are psitive. 5. If applicable. 46

47 A4: Expected incremental emissins reductins Expected incremental emissin reductins that result frm the prject are calculated as the difference between expected emissins with the prject (Table A3.B) and emissins in the baseline (Table A2.B). In Table A4, prvide incremental emissins resulting frm the aggregate f all activities listed in Table A1. Table A4. Incremental emissin reductin estimates 1 (kiltnnes CO 2 e) Year\Prject Incremental Incremental Incremental Incremental Incremental Ttal Agricultural Livestck 2 Crps 2 Other 2 sils 2 (A) (B) (C) (D) Year 1 Year 2 (shw fr each year) Cumulative t 2030 Cumulative t Negative values are emissin reductins r remval increases. Psitive values are emissin increases r remval decreases. 5. If applicable. Light green cases in the Table A4A abve crrespnd t the infrmatin required in the Online Applicatin. A5: Expected jb creatin Describe yur assumptins and methdlgy t prduce the estimates f jbs created frm the applicatin f yur prjects. A6: Risks and Factrs that culd impact prject delivery Explain ptential risks in detail and hw they are taken int accunt in yur scenari. 47

48 B. Cst and Financial Assessment The fllwing details specific technical and methdlgical guidance fr estimating csts assciated with prpsed prjects t cmplement the csting infrmatin. Cmplete these tables as apprpriate and submit them alng with the additinal supprting infrmatin required frm the methdlgical guidance dcument. We suggest rganizing this supplementary infrmatin in a single attachment the (e.g., prject Financial.xls and/r prject Financial.dc). Shuld yu require assistance r clarificatin, please cntact us at: B1. The prject cst ec.lcef fefec.ec@canada.ca. The prject cst is the gvernment delivery cst including payments t implementing entities, incentives, administratin csts and mnitring csts (i.e. the ttal federal and prvincial r territrial csts). It can include gvernment in kind csts. In Table B1.A, enter infrmatin n expected prject csts fr each activity, divided int its majr cmpnent actins. Explain the methdlgy used t derive the estimates, including references, assumptins and key parameters. Table B1.A. Ttal expected prgram cst, by activity ($) Cst categry (e.g. activities Federal cst Prvincial cst Ttal prject cst and their cmpnent actins) Prject : e.g., N Till practice Activity 1 : e.g. Emissins frm n farm fuel use in agricultural peratins Estimatin methdlgy: Based n additinal cst t standard equipment and mnitring activities Mnitring devices n machinery Data cllectin and analysis Ttal all activities In Table B1.B, enter infrmatin n expected prject csts fr the time perid f prject implementatin. Explain the methdlgy used t derive the cst estimates, including all references and key parameters. Table B1.B Annual expected prject csts ($) Year Federal cst Prvincial cst Ttal prject cst Year 1 Year 2 (shw all years) 2030 (shw all years) 2050 Cumulative t 2030 Cumulative t

49 In Table B1.C, enter infrmatin n prject csts by cst categry, indicating expected breakdwn between federal and prvincial financing. This table refers t sectin 5 f the nline applicatin. Table B1.C Expected prject csts, by cst categry ($) Categry \ Ttal csts fr the perid f the prject Human resurces Management and prfessinal services Printing, prductin and distributin Equipment and capital Vehicle rental and peratins Cntractrs Overhead and/r administrative Csts incurred fr cancelled prjects Land acquisitin r leasing f land, buildings r ther facilities Leasing equipment ther than equipment directly related t capital wrks Real estate fees and related csts Financing charges, legal fees, and lan interest payments PST and GST / HST fr which ultimate recipient is eligible fr a rebate, and any ther csts eligible fr rebates Federal cst Prvincial cst Ttal prject cst B2. Prject cst per tnne Applicants can prvide the estimated cst per tnne per prject alng with the assumptins, calculatins, csts included and discunt rates used. Applicants shuld be cnsistent in the methdlgy used frm ne prject t anther. 49

50 C. Mnitring prject perfrmance ex pst Relates t sectin 4.5 f the nline applicatin The fllwing details specific technical and methdlgical guidance fr prpsed prjects in the agriculture sectr and prvides tables fr presenting mnitring and reprting infrmatin. Cmplete these tables as apprpriate and submit them as a single attachment alng with yur cmpleted prject prpsal template. Shuld yu require assistance r clarificatin, please cntact us at: ec.lcef fefec.ec@canada.ca. Funded prjects will be required t prepare annual reprts and final reprts at the end f the prject. C1: Plan fr mnitring GHG effects ex pst Table C1: Plan t mnitr the GHG effects f the prject (ex pst) Infrmatin requirement Respnse Describe the plan fr Describe plans fr the cllectin f activity data, measurements, mdelling and mnitring, measuring and verificatin s as t be able t prvide annual estimates f the prject GHG verifying GHG impacts f impact. Please indicate what will be measured, hw measurements will be the prject and its used, and mdelling appraches that will be used. The GHG mnitring shuld assciated activities t result in estimates that are cmparable with the estimates in the Natinal prvide annual estimates Inventry Reprt (NIR) and prvide a means t quantify the impacts f the f GHG impacts. plicy/actin t be captured annually t meet reprting requirements. C2: Plan fr mnitring nn GHG effects ex pst Table C2: Plan t mnitr the nn GHG effects f the prject (ex pst) Infrmatin requirement Respnse Describe the plan fr Describe key perfrmance indicatrs/parameters fr nn GHG impacts (e.g. measuring the nn GHG emplyment impacts, indigenus participatin, envirnmental c benefits), impacts f the prject. hw they will be measured, and frequency f measurement. C3: Requirement fr federal assistance and tls Table C3. Federal assistance and tls Infrmatin requirement Respnse Describe expected Describe expected requirements fr federal technical assistance and tls requirements fr federal (e.g. existing agricultural GHG mdels, Hls mdel, etc.) that are needed technical assistance r t prduce estimates fr annual reprts, and t ensure that estimates can tls be captured in Canada s GHG Natinal Inventry Reprt. 50

51 Annex 1: Likelihd and magnitude f GHG effects The fllwing guidance is frm Wrld Resurces Institute (2014), Plicy and Actin Standard: An Accunting and Reprting Standard fr Estimating the Greenhuse Gas Effects f Plicies and Actins (Sectin 7). and actin standard Assessing likelihd f GHG effects Assessing relative magnitude f GHG effects Apprach fr determining significance based n likelihd and magnitude 51

52 Annex 2: Pls, surces and sinks Figure A1. Agricultural GHG surces and sinks Surce: Clearwater, R. L., T. Martin and T. Hppe (eds.) Envirnmental sustainability f Canadian agriculture: Agri envirnmental indicatr reprt series Reprt #4. Ottawa, ON: Agriculture and Agri Fd Canada. 52