Climate Change and Emissions Management CCEMC Corporation 2010 Call for Proposals Energy Effic by puk10787


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									    Climate Change and Emissions Management
                         (CCEMC) Corporation

                              2010 Call for Proposals:
                                   Energy Efficiency

                        Full Project Proposal Guidelines
                                      September 28, 2010
                      Online submission:
Deadline for Submission: December 1, 2010 – 4:30 pm MST

      CCEMC is a ™ of Climate Change and Emissions Management (CCEMC) Corporation.
Table of Contents
General Instructions  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 3

Section 1: The CCEMC .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 4

Section 2: Project Overview: Part A .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 9

Part B: ProGrid® Application & Evaluation  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .13

Detailed Project Proposal .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .14

Part C: Project Attachments .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .24

Part D: GHG Validation Report  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .24

Appendix A: List of Required Documents for CCEMC Financial Risk Assessment  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .25

Appendix B: Requirements for Validation and Verification of Greenhouse Gas Assertions .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .26

CCEMC 2010 Call for Proposals: Energy Efficiency: Full Project Proposal Guidelines                                                                                                                                                                                                                                                      2
2010 Call for Proposals: Full Project Proposal (FPP)
IMPORTANT: Read ALL the following information, the instructions, and the ProGrid Criteria Descriptions BEFORE
completing this on-line application. You will be required to confirm that you have read the terms, conditions and
information in Section 1 before you may proceed to subsequent sections.

General Instructions
To ensure the consistent evaluation of proposals, information required must be contained in the prescribed
format . The application is in four parts:
1. On-line data entry, in which you will enter the following information:
   • A summary of your project, including expected GHG reductions
   • An overview of the budget for your project
2. A ProGrid self-analysis, which you will fill out off-line and upload to your on-line application as a PDF document.
   The ProGrid form will be provided to you as a Word document. Your completed and uploaded PDF document
   should adhere to the following requirements:
   2 .1 It must be no longer than 25 pages
   2 .2 Page size: 8-1/2 x 11 (standard letter size)
   2 .3 12-point font, Times-Roman .
  NOTE: Failure to adhere to the submission requirements may negatively impact the evaluation of your proposal.
3. Additional information that may be required to fully develop your project. This additional information should
   include brief CVs of team members; it may also include Gantt charts, diagrams, or other information you think
   necessary. Please note that you may upload only ONE (1) appendix. The maximum size of the appendix is 8 MB.
4. A Validation Report prepared by a third-party to validate the assertions made regarding GHG emission
   reductions of your project. Please see the CCEMC Validation Guidance posted on

You will use the ID number previously assigned to your Expression of Interest.

CCEMC 2010 Call for Proposals: Energy Efficiency: Full Project Proposal Guidelines                                       3
Section 1: The CCEMC
The Climate Change and Emissions Management Fund (the “Fund”) was established under the Climate Change
and Emissions Management Act (the “Act”) . Persons responsible for facilities regulated under the Act must report
annually on their compliance with the Act and with the supporting Specified Gas Emitters Regulation.

There are three options for addressing a regulated facility’s compliance requirements:
• A reduction in the release of greenhouse gases;
• The application of emissions offsets in the Alberta-based offset system; or
• Payment of specified amounts to the Fund.

The CCEMC has been delegated with the powers, duties and functions of the Minister of Environment (Alberta)
with respect to the Fund pursuant to the Climate Change and Emissions Management Fund Administration
Regulation . The CCEMC is granted monies to be used for the purposes of the Fund set forth in the Act .

The CCEMC is an independent, arm’s-length, not-for-profit organization whose mission is to achieve actual
and sustainable reductions in greenhouse gas (“GHG”) emissions, and facilitate climate change adaptation,
by stimulating transformative change through investments in climate change knowledge, technology
development, and operational deployment.

CCEMC Project Monitoring
Projects (“Projects”) selected under the FPP process will be required to report on their performance in relation
to the CCEMC’s overall goals, as well as on Project-specific indicators established as a part of individual Projects’
contribution agreement (“Contribution Agreement”) with the CCEMC .

Strategic Investment Area -- 2010 Call for Proposals
This Call for Proposals applies only to the Energy Efficiency aspect of the CCEMC’s mandate. CCEMC defines energy
efficiency as doing the same or more work with less energy.

Terms of Funding
Projects must meet the following two criteria to be considered:
1. Maximum Contribution: The maximum contribution the CCEMC will make to any one Project is $7 million
   over the life of the Project. For the purposes of this Call for Proposals, projects must be no more than two years
   in duration .
2 . Cost-sharing: CCEMC will fund up to one-half (1/2) of the cost of the Project . The remainder of the funds must
    come as cash from the proponent or proponent consortium .

CCEMC 2010 Call for Proposals: Energy Efficiency: Full Project Proposal Guidelines                                      4
1. Projects must take place in industry. Projects intended for the commercial, residential, or consumer sectors are
   not eligible .
2. The project must involve a major emitter as defined by Alberta Environment (those subject to the Specified Gas
   Emitters Regulation or subject to the requirements to report GHG emissions) .
3 . The project must be consistent with CCEMC Cost Guidelines .
4. Proponents may be invited to submit more than one application.
5. Project Initiation: CCEMC contributions to the Project will commence only after funding has been formally
   approved and a Contribution Agreement is in place between the CCEMC and the Project Proponent . Note: CCEMC
   funds may not be used to reimburse the Project or Proponents for funds expended before the Contribution
   Agreement is signed .
6. Project Location: Projects must be implementable in Alberta. However, if necessary, some development activities
   may occur in other jurisdictions.

Financial Information and Financial Risk Assessment
The CCEMC will be performing a financial risk assessment on Proponents who complete a full project proposal.
The assessment will also be performed on co-applicants, joint-venturers or other organizations contributing to
the project, excepting government, (collectively “Project Partners”) in cases where significant contributions are
made by a Project Partner. To assist the CCEMC in completing this assessment, Proponents are required to provide
information relating to the Proponent’s (and if applicable, Project Partners’) corporate financial strength along
with details of project financing in its FPP submission. Refer to Appendix A for the list of required documents.
The required documents should all be submitted by November 1, 2010

Note that this financial information is not entered into the on-line system, but will be provided separately to
service providers, who provide financial risk assessment services to the CCEMC. CCEMC service providers will be
contacting you individually with their coordinates.

The CCEMC may contact the Proponent during the evaluation period (November 1, 2010 – January 31, 2011 to obtain
clarification of the documents submitted. Where possible, please reference the documents submitted to the item
numbers listed in Appendix A .

Full Project Proposal Process
Proposals are accepted by invitation only; the CCEMC will not accept a FPP from a Proponent who has not been
invited to submit one following the 2010 Energy Efficiency Call for Proposals: Initial Expression of Interest Stage.
A CCEMC project advisor (“Project Advisor”) will be assigned to each FPP in order to provide a point of contact
between the CCEMC and the Proponent. You will be notified of the individuals name and contact information.
Full project proposals must be submitted to the CCEMC, via the Climate Change Information Management System
(CCIMS), by 4:30 PM MST, December 1, 2010. Proponents will be informed of the decision on their Project during the
month of February, 2011.

CCEMC 2010 Call for Proposals: Energy Efficiency: Full Project Proposal Guidelines                                     5
Successful Proponents will have six (6) months to enter into a Contribution Agreement with the CCEMC .
The Contribution Agreement will address, without limitation, the following terms: the Project’s work scope,
payment schedule, targets and metrics, reporting requirements, milestones, deliverables, budget and schedule,
as well as any other appropriate aspects of the Project and otherwise on the terms and conditions required by
the CCEMC in its sole discretion .
Submitted applications must conform to the requirements of the FPP as set out above .

The application is in four parts .

Part A consists of the following information, which will be entered into the on-line system:
• Project title
• Lead contact for the project
• Abstract
• Summary suitable for public release (for example, on the CCEMC’s website)
• Expected benefits of the project
• Key words
• Estimated GHG Reductions
• Project costs by category
• Project Costs by task
• Capital Cost Details
• In-kind Contributions
• Amount requested from CCEMC
• Other agencies from which funding has been or will be provided

Part B consists of the ProGrid document, which is to be uploaded to the online information management system
as a PDF document .

Part C consists of one appendix, which is to be, uploaded to the online information management system as a
PDF document .

Part D consists of an independent GHG Validation Report prepared by an independent third party validator,
again uploaded as a PDF document to the online information management system.

Proposals will be assessed on several factors, both independently and in comparison with other Proposals.
The CCEMC’s evaluation will be done using the ProGrid® (“ProGrid”) methodology. ProGrid is a standard proposal
evaluation process that has been extensively used by major funding organizations over the past twenty years.
It has been customized to meet the needs of the CCEMC .

CCEMC 2010 Call for Proposals: Energy Efficiency: Full Project Proposal Guidelines                               6
In addition to the ProGrid process, Proposals will be assessed in terms of the following factors:
Energy Efficiency: Projects will be evaluated on the extent to which they will contribute to the energy efficiency
goal which forms the object of this Round, relative to other submitted Projects . This will take into account the
potential magnitude of the Project’s contribution, its stage of implementation, and the ease with which it can be
implemented . This assessment also takes into consideration the uniqueness and innovation of the Project .
Project Assessment: The Project assessment is based on the need for the technology being proposed, its potential
contribution to the strategic area target and to GHG reduction, the risks associated with it (both financial and
technological), and its potential for application across a broad range of industries and industrial processes .

Proponents will be invited to make a presentation on their Project to the CCEMC review committee . Dates and
location of presentations will be forwarded to proponents at a later date .

Only high-quality Projects will be considered for funding. Although CCEMC has set aside a maximum of $40 million
for this Round, funds will only be disbursed to the extent that there are proposals that meet a sufficient quality
standard .

Intellectual Property
Intellectual property (“IP”) will be addressed though the Contribution Agreement made with each successful
Proponent, and will reflect the individual circumstances of the Project. Proponents should note the following
• The CCEMC retains unlimited rights to the project research results, that is, to the technical data, reports, analyses,
  and dissemination and analysis of reports. The intent of the CCEMC is to make the project results publicly
  available after an appropriate period of confidentiality (typically two years following the end of the Project);
• Project technology developed during the course of the Project will normally be owned by the Proponent who will
  have an obligation to protect this technology within a period to be specified in the Contribution Agreement. If the
  Project technology is not protected within the specified time, the CCEMC may make it available to other Alberta
  users .

The CCEMC is subject to the Freedom of Information and Protection of Privacy Act, RSA 2000, c. F-25 in the course
of performing duties and functions and exercising powers delegated to it. All Data and records in the custody
or under the control of the CCEMC that are required in the performance of duties or functions or the exercise of
powers delegated to the CCEMC are subject to the Records Management Regulation, Alta Reg. 244/2001.

Subject to the requirements described above the CCEMC is governed by a comprehensive Privacy, Data Security
and Confidentiality Policy (the “Policy”). The Policy requires that any and all information concerning the business
affairs of the CCEMC and its directors, officers, employees and Proponents is to be kept private, secure and
confidential. Confidential Information that is collected, used or disclosed by the CCEMC will be handled in a
manner that recognizes both the right of the individual to have his or her Confidential Information protected
and the need of the CCEMC to collect, use and disclose such information for purposes that are reasonable .

To read the entire Policy, visit

CCEMC 2010 Call for Proposals: Energy Efficiency: Full Project Proposal Guidelines                                     7
Legal Notice
By clicking “I Agree”, on the online system, you confirm that you have read, understand and accept the information
contained in Section 1 of the FPP process and, you, the Proponent and its Project Partners, also agree as follows:
a) CCEMC may at any time withdraw, amend or alter any portion of this FPP Stage or cancel this FPP Stage in its
b) No act of CCEMC, or its directors, officers, consultants, Project Advisors, agents and their respective successors
   and assigns (collectively the “CCEMC Parties”) other than a notice in writing signed by CCEMC, will constitute an
   acceptance of an FPP .
c) Proposals that do not comply with the requirements described in the FPP Stage may be rejected or
   not considered .
d) As between the parties, the FPP Stage and all intellectual property in it are the property of CCEMC.
e) You, the Proponent and the Project Partners will keep the FPP Stage confidential and will not use, reproduce or
   distribute it, any portion of it, or any data, information, drawings, or specifications included in or provided with
   it except as necessary to preparing a Proposal in response to it.
f) You, the Proponent and the Project Partners will not make a claim against CCEMC or the CCEMC Parties for any
   reason relating to the 2010 Call for Proposals, and you waive and hereby release CCEMC and the CCEMC Parties
   from any claim or recovery for costs, expenses, or damages incurred by either or both of us in connection with
   the FPP Stage or any FPP prepared in response to it.
g) Neither CCEMC nor any of the CCEMC Parties will have any liability whatsoever to you, the Proponent and its
   Project Partners, or any of them, in connection with the FPP Stage or any FPP prepared in response to it.

CCEMC 2010 Call for Proposals: Energy Efficiency: Full Project Proposal Guidelines                                        8
Section 2: Project Overview

Part A
Confidentiality: The project title, non-confidential short description, Proponent’s name, including Project
Partner’s name(s), and amount of the Project, if funding is awarded, will be public information.

Note that each on-line section contains a maximum number of characters (including spaces and
punctuation marks). You will not be able to exceed the maximum number of characters in any section.

Please note: there are differences in other word/character counting applications which exist in other
software applications (i.e. MS Word). As a result, proponents must ensure that their responses comply
with the online character count application only.

1: Project Information

  (Information supplied on this page may be used in pulic summaries and abstracts of CCEMC’s sponsored
  activities. Do not provide confidential information here.)

  This Summary should be concise, and should contain the following information:
  • The proposed technology (i.e. the discovery, invention, new knowledge, etc.) on which the project is based
  • The current state of development on the innovation continuum
  • The problem the technology seeks to solve or the opportunity it seeks to develop
  • The project’s objectives and deliverables
  • The expected GHG reductions to be achieved
  • The advantages that will be valued by the user
  • The expected commercial applications
  • The capacity of the commercializing organization to successfully commercialize the concept


  KEY WORDS: (maximum 150 characters)

  PROJECT START DATE: (year/month/day)                           PROJECT COMPLETION DATE: (year/month/day)


  ADDRESS THE FOLLOWING POINTS: (maximum 3500 characters)

  • Indicate whether this Proposal has been submitted to other funding organizations. If yes, please list their
    names and contact information. In the interest of a consistent funding approach, CCEMC may contact the
    other funders listed. If you do not want CCEMC to contact these other organizations, please include your
    reasoning in this section .
  • Is this a continuation of a project funded by provincial, federal or other funding entities? If yes, please explain.
  • Please indicate all past and present research or development work that you have completed, or that is in
    progress, that relates to this Proposal .

CCEMC 2010 Call for Proposals: Energy Efficiency: Full Project Proposal Guidelines                                         9
2: Project Team





POSTAL CODE:                                                  E-MAIL:

PHONE:                                                        FAX:

3: Estimated GHG reductions (maximum 1,500 characters)
In bullet point format, describe how the proposed project will lead to direct reductions in GHG emissions . Include
estimated GHG reduction and time frame to achieve this reduction (use box provided below). Attach a copy of your
Validation Report in Part D “Validation Report” .

 Year 1
 Year 2
 Year . . .

CCEMC 2010 Call for Proposals: Energy Efficiency: Full Project Proposal Guidelines                                10
4: Project Costs
 EXPENSE CATEGORY               Proponent/Partner Funds           TOTAL              YEAR 1          YEAR 2
 Salaries and Benefits          CCEMC Funds
                                Proponent/Partner Funds
 Materials and Supplies         CCEMC Funds
                                Proponent/Partner Funds
 Travel                         CCEMC Funds
                                Proponent/Partner Funds
 Capital                        CCEMC Funds
                                Proponent/Partner Funds
 Sub-contacts                   CCEMC Funds
                                Proponent/Partner Funds
 Admin/Overhead                 CCEMC Funds
                                Proponent/Partner Funds
 Other (please describe)        CCEMC Funds
                                Proponent/Partner Funds
 Total CCEMC Funds
 Total Project Costs

 TASK NUMBER/DESCRIPTION              ESTIMATED COST               START DATE                 END DATE
 Task 1
 Task 2
 Task  . . .

                                                         PLEASE CHECK ONE
 SOURCE                     NAME OF ORGANIZATION         APPLIED FOR CONFIRMED          TOTAL     YEAR 1      YEAR 2
 Proponent Applicant
 (Federal and Provincial,
 please give agency name
 and program)

 Project Partners and
 Other Oganizations
 (please list)

 Amount requested
 from CCEMC

CCEMC 2010 Call for Proposals: Energy Efficiency: Full Project Proposal Guidelines                                     11
 ITEM DESCRIPTION COST                                                     ESTIMATED USEFUL LIFE
 Item 1
 Item 2

IN-KIND CONTRIBUTIONS (will not be counted towards cost-sharing criterion)
 SOURCE TYPE                         NAME OF ORGANIZATION              BRIEF DESCRIPTION      YEAR 1   YEAR 2
 Principal Applicant
 Other Organizations (please list)
 Total Value

CCEMC 2010 Call for Proposals: Energy Efficiency: Full Project Proposal Guidelines                              12
Part B: ProGrid® Application & Evaluation
The Call for EOI and Full Proposals (Round 2) is intended for projects which have a strong potential to make
significant, verifiable, immediate, and sustainable improvements in the energy efficiency of industrial production
and processing through enhanced energy management and the application of best-available commercial and near
commercial technologies .

1: Overview and Instructions
A key feature of any ProGrid evaluation system is the Language LadderTM (the “Language Ladder”) which
establishes performance levels in each cell of this matrix . The Language Ladder assists reviewers in reaching a
consensus on the merits of a Proposal in comparison to other Proposals being considered for funding support .
The Proponent is asked to assess the proposed Project against these performance criteria using the Language
Ladders provided, and to justify why a particular performance level was chosen.

 PROJECT MERITS                            ENABLERS                                  SUSTAINABLE GHG REDUCTION
 Efficiency Opportunity                    Project Plan                              Risk Mitigation
 Reduction of GHG1                         Project Financing                         Non-GHG Impacts
 Adoption Potential                        Project Team
 GHG Validation                            Costs and Infrastructure

• Review the definition and the A to D statements for each performance criterion. Level A represents the minimum
  and level D the maximum level attainable .
• Starting with level A, determine if your FPP meets all the aspects of that level. If it does, then review level B,
  and so on until you reach a level where not all the aspects of that statement can be met.
• The level that applies to your FPP is the highest level where all aspects of the Language Ladder are met.
  For example, if all aspects of a C statement have not been met, then select the B statement .
• Please record your assessment in the small box below the A to D statements. Note that an A rating does not
  mean automatic rejection, nor does a D rating mean automatic acceptance .
• After you have completed your assessment, describe why you have selected that assessment rating and include
  relevant FPP information that addresses that criterion. Use the larger text box to provide this justification.
• Assess each performance criterion independently.

CCEMC 2010 Call for Proposals: Energy Efficiency: Full Project Proposal Guidelines                                     13
Detailed Project Proposal
1: The Efficiency Opportunity
This criterion is intended to determine how your project will lead to significant GHG reductions in Alberta. You are
expected to have identified all the GHG mitigation opportunities in your facilities, chosen the most promising, and
selected the best-available technology for the purpose. You should provide evidence that the proposed solution is
innovative and beyond currect practice.

The technology or process to be implemented:
A. Is not new and represents business as usual
B. Is new but not the best-available GHG emissions-reduction technology for this purpose
C. Is innovative and is the best-available GHG emissions-reduction technology;
D.  . . . AND is transformative representing a breakthrough in GHG emission-reduction practice that will become
   a benchmark for the industry.

      Record the letter that you selected in the small box to the left. Use the text box below the line
      to justify your choice.

CCEMC 2010 Call for Proposals: Energy Efficiency: Full Project Proposal Guidelines                                 14
2: GHG Reductions
This is the key criterion, and is given three times the weight of the other criteria. It is intended to rate the project’s
impact on actual and sustainable GHG reductions in Alberta in quantitative terms. You must provide a baseline
estimate of current GHG emissions, and an estimate of annual GHG reductions for both an initial five year period
and for the lifetime of the efficiency gains or 20 years, whichever is shorter. The cost of reductions, in terms of
dollars per tonne of CO2 reduced or avoided, must also be provided.

The impact of this project on GHG reductions over the lifetime of the efficiency gains is:
A. Qualitative, or unlikely to be achieved.
B. Quantified, but less than 25% compared to the baseline conditions, OR the cost on a per-tonne basis is high.
C. Greater than 25% compared to the baseline condition, in terms of tonnes of GHG reduced or avoided.
D. Greater than 50% compared to the baseline condition, in terms of tonnes of GHG reduced or avoided.

      Record the letter that you selected in the small box to the left. Use the text box below the line
      to justify your choice.

CCEMC 2010 Call for Proposals: Energy Efficiency: Full Project Proposal Guidelines                                       15
3: Adoption Potential
This criterion requires evidence that there is potential for widespread adoption of the proposed GHG reduction
process or technology in Alberta’s industries. Opportunities to adapt the technology or process to other
applications or other industries should be fully described. Please estimate the market size and penetration.

The potential for widespread adoption of the proposed GHG emission reduction technology or process is:
A. Not provided, or minor
B. Reasonable but has not been justified
C. Significant and well-justified;
D.  . . . AND can be achieved in the next five years.

      Record the letter that you selected in the small box to the left. Use the text box below the line
      to justify your choice.

CCEMC 2010 Call for Proposals: Energy Efficiency: Full Project Proposal Guidelines                               16
4: GHG Validation and Verification
All proposals must include a validation report and a clear plan for third-party verification of assertions made
regarding GHG reductions. The proposed verifiers(s) must be qualified professionals with experience in the field.
In addition, you must provide a plan for annual reporting of GHG reductions during the project, and for the
expected life of the technology. This plan should demonstrate that qualified third parties have been contacted
to provide verification.

Note: the CCEMC’s Validation and Verification policy can be found in Appendix B. A more complete guidance
document can be found on the CCEMC web site at

The requirements for validation and verification:
A. Have not been met for either validation or verification
B. Have been met, but there are gaps
C. Have been met, and include a detailed plan for verification activities. No outstanding concerns are identified in
   the validation report;
D.  . . . AND the third-party validation and/or verification expert(s) are in place.

      Record the letter that you selected in the small box to the left. Use the text box below the line
      to justify your choice.

CCEMC 2010 Call for Proposals: Energy Efficiency: Full Project Proposal Guidelines                                  17
5: The Project Plan
This criterion requires that you provide sufficient detail so that the evaluators can judge the quality of the project
plan, the tasks to be undertaken and their relationship to the proposed budget, deliverables and milestones.
A detailed project management schedule should be provided. Please also include sections on project performance
monitoring, and appropriate operational, regulatory and environmental compliance.

The requirements of the Full Project Proposal (FPP) have been:
A. Addressed in a cursory manner
B. Reasonably well-developed but there are some gaps
C. Fully and clearly defined and addressed;
D.  . . . AND allow a high degree of confidence that the project will be completed within specifications, on budget,
   on time and results appropriately reported.

      Record the letter that you selected in the small box to the left. Use the text box below the line
      to justify your choice.

CCEMC 2010 Call for Proposals: Energy Efficiency: Full Project Proposal Guidelines                                     18
6: Project Financing
This criterion requires you to demonstrate that that all financial contributions to the project meet eligibility
guidelines, and that you have the financial strength to support 50% or more of the project’s eligible expenses.
A project budget that shows any contributions from other organizations, and clearly identifies any non-cash
contributions, must be provided. Evidence of support from your organization’s senior management must be given.

The financial terms and conditions of the project:
A. Are unclear and/or evidence of commitment from senior management and other contributing entities is lacking
B. Are reasonably well-addressed but some key elements are missing
C. Are fully addressed and approved by senior management and other contributing entities;
D.  . . . AND there is firm and credible evidence that there will be no financial delays that could adversely affect the
   project’s start and completion.

      Record the letter that you selected in the small box to the left. Use the text box below the line
      to justify your choice.

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7: Project Team
This criterion assesses the project team. It requires you to describe the knowledge, expertise, experience of the
project leader and the team and their time commitments, as well as the vendor’s expertise and their commitment
to the project. You should give a detailed management structure for the project, and describe your corporate
history of successful completion of similar projects.

The project team and organizational structure described in this proposal:
A. Are missing many of the key elements required to carry out the project
B. Have the capacity to successfully complete the project, but there are expertise gaps and/or gaps in time
   available for the project
C. Have the organizational leadership, capability and the appropriate level of experience and knowledge to
   handle all aspects of the proposed project;
D.  . . . AND all the key people are in place and committed to the project and they are appropriately linked to
   senior management .

      Record the letter that you selected in the small box to the left. Use the text box below the line
      to justify your choice.

CCEMC 2010 Call for Proposals: Energy Efficiency: Full Project Proposal Guidelines                                  20
8: Costs and Infrastructure
This criterion is intended to determine whether the costs of the project (personnel, equipment, supplies
and materials) have been competitively established and that, in addition, the project has the resources and
infrastructure required to carry it out successfully.

The project costs, and the resources and infrastructure available for the project are:
A. Addressed in a cursory manner
B. Reasonably well-estimated but some aspects remain to be determined
C. Evidence is provided that the costs are competitively established and that all required resources and
   infrastructure are available either in-house or through collaborative agreements;
D.  . . . AND that the resources and infrastructure are committed to the project and its timelines .

      Record the letter that you selected in the small box to the left. Use the text box below the line
      to justify your choice.

CCEMC 2010 Call for Proposals: Energy Efficiency: Full Project Proposal Guidelines                            21
9: Rick Mitigation
This criterion should identify the risk elements for the project that have the potential to adversely affect its
achievability. Your risk mitigation strategies must be clearly described, and must support your approach to
achieving actual and sustainable GHG reductions.

The project risks:
A. Are not fully identified
B. Are identified but there are some gaps in the identification and mitigation strategies
C. Are fully and clearly identified and include achievable mitigation strategies to overcome them;
D.  . . . AND the strategies described have a very high probability of success.

      Record the letter that you selected in the small box to the left. Use the text box below the line
      to justify your choice.

CCEMC 2010 Call for Proposals: Energy Efficiency: Full Project Proposal Guidelines                                 22
10: Non-GHG Impacts
This criterion is intended to determine any ancillary economic, environmental and social impacts linked directly
to your project. Economic impacts include enhancement of existing industries, and new and secondary industry
development. Environmental impacts include all environmental media including air, land, water and biodiversity.
Social impact includes the enhancement of communities, increase in the quality of life and capacity-building
through the training of highly skilled personnel who are likely to seek a career in science, research, technical
operations and management activities in Alberta in the next three to five years.

The ancillary impacts from this project are expected to be:
A. Detrimental or neutral
B. Positive and measurable, but minor
C. Significant, beneficial, and quantifiable;
D.  . . . AND these positive impacts will be sustainable beyond the duration of the proposed project.

      Record the letter that you selected in the small box to the left. Use the text box below the line
      to justify your choice.

CCEMC 2010 Call for Proposals: Energy Efficiency: Full Project Proposal Guidelines                                 23
Part C: Project Attachments
The project Appendix must be a single attachment and can include any information the proponent believes
necessary, such as:
1 . Brief CVs of team members
2 . Signed letters of support from partners/collaborators
3. Tables or figures providing information that is additional to the information provided in the FPP
4 . A list of references or literature cited in the FPP

Note that the maximum size of an individual attachment is 8 MB.

Part D: GHG Validation Report
Please attach your GHG Validation Report in accordance with the CCEMC Validation Guidance posted at

Note that the maximum size of validation report is 8 MB.

CCEMC 2010 Call for Proposals: Energy Efficiency: Full Project Proposal Guidelines                             24
Appendix A: List of Required Documents for CCEMC Financial Risk Assessment
Corporate Financial Strength
1. Corporate organizational structure including commentary on any, parent, subsidiaries or related parties.
2. Annual reports and audited (if applicable) financial statements (including balance sheet, income statement,
   cash flow statement, notes, management discussion & analysis) for most recent quarter and the past 3 years.
   a. Comment on any significant balance sheet or income statement items during this period as well as any
      significant changes in balances from the prior period. Examples include:
      i. Significant refinancing undertaken or required in the short term.
      ii . Material unusual charges or revenue during the period .
      iii. Unusual trends identified.
      iv . Use of estimates .
3. Letter of credit, bank reference letter from the financial institution, or parent company guarantees relating to
   the Proponent’s or Partners’ credit (if no public credit ratings are available).
4. Comment on and provide documentation to support any contingencies and commitments (include $ amounts,
   where possible), including but not limited to the following:
   a . Off-balance sheet arrangements .
   b. Outstanding litigation or claims which may have a material adverse impact on the organizations.
   c. Purchase or other financial commitments out of the normal course of business.
   d . Other projects the Proponent is committed to or contemplating
5. Items #2 - 4 listed above for Parent company of the Proponent (if Parent company is providing support).

Project Financing
6. Financing or commitment letters from Proponent, Parent company and Project Partners.
7. Detailed project budget, including:
   a . Description of how the budget was developed .
   b. Descriptions of all cost estimates and significant assumptions made. Assumptions should address such items
       such as, but not limited to: rates used for personnel and contractors, description of travel and allocation of
       overhead. Sufficient detail should be provided so that the reviewer can determine the reasonableness of the
       Proponent’s assumptions.
   c. If costs include fixed assets/capital items, an itemized listing that includes the cost and estimated useful life
       of each asset .
   Note: Eligible project costs, as defined in the CCEMC’s ‘Eligible Expenses and Cost Instructions – June 2010’,
       should be broken out from ineligible costs . In-kind contributions can be included in the total project cost,
       but in a separate line item .
8 . Comment on and provide documentation on the following:
  a. The availability of financial resources for the remaining project budget not anticipated to be financed by
     the CCEMC. Separately discuss the Industry and Government participants and the likelihood the funds will
     be made available. If funding from Project Partners is not yet confirmed, the Proponent should indicate the
     likelihood of the funds being available as well as when a decision is expected .
  b. Any restrictions placed on funding provided by Project Partners.
  c. Any project refinancing issues that may arise or be applicable for the long term financing of the project
     (i.e. cash shortfalls, debt maturity).
  d. Any contingency or alternative financing that has been considered in the event that a funding source is not
      obtained or unexpected cost overruns occur .
  e . Cost mitigation strategies to reduce the risk of cost overruns .

CCEMC 2010 Call for Proposals: Energy Efficiency: Full Project Proposal Guidelines                                    25
Appendix B: Requirements for Validation and Verification of Greenhouse
Gas Assertions
Validation is a process that determines whether the predicted greenhouse gas emission reductions or removal
enhancements that occur from the implementation of a project rather than what normally would occur are
reasonable. Validation is one tool that the CCEMC uses to ensure integrity in the emission reductions created
through the course of funding projects or initiative . Other tools the CCEMC uses include monitoring and
verification as the project is being implemented or completed.

The key distinction between Validation and Verification is:
Validation is the process of systematic assessment to form an opinion on whether statements about future
greenhouse gas reduction performance are reasonable . It is focused on assumptions, risks, methodologies,
justifications, plans and procedures.
Verification is the process of systematic assessment to form an opinion on whether a statement about actual
circumstances or past performance is true and correct. Only statements about actual performance, events or
circumstances can be verified.

To be eligible for funding, all projects that make it to the full proposal stage will be required to submit third-party
validation of assertions made regarding GHG emissions reductions . This information will be used to assist in the
evaluation and selection of the successful proposals .

In addition, during and after the term of the project, proponents will be required to monitor and verify the GHG
reductions arising from the CCEMC-sponsored project . The detailed requirements for ongoing monitoring and
verification will be outlined and finalized in the Contribution Agreement after the project has been successfully
awarded funding. However, the principles, rules and approach outlined in the CCEMC’s guidance for undertaking
validation engagements will generally apply to verification engagements as well.

Qualifications of the Third Party Validators and Verifiers
The Third Party Validator and Verifier (lead verifier and verification team) is defined as a qualified person or persons
that make up a validation/verification body that validates/verifies and provides assurance on a greenhouse gas
inventory and reduction assertion.

The CCEMC’s policy on who is qualified to validate or verify greenhouse gas assertions is intended to be consistent
with Alberta Government policy. Alberta Environment requires that the lead validator/verifier must be an
accountant registered under the Alberta Regulated Accounting Profession Act, or professional engineer in good
standing and be trained in one of the three acceptable standards identified below.

Validation and Verification Standards
Third Party Validators/Verifiers must use one of the following standards and must be able to demonstrate how they
meet the qualification criteria for the standard being used:
• ISO 14064 Part 3 – Greenhouse Gases: Specification with guidance for the validation and verification of
  greenhouse gas assertions
• Standards for Assurance Engagements, Canadian Institute of Chartered Accountants (CICA) Handbook –
  Assurance Section 5025
• International Standard on Assurance Engagements (ISAE) 3000 - Assurance Engagements Other Than Audits or
  Reviews of Historical Financial Information

CCEMC 2010 Call for Proposals: Energy Efficiency: Full Project Proposal Guidelines                                        26
Additionally, the validation/verification team should have technical expertise and competencies in the
following areas:
• Data audit practices, data verification standards and inventory techniques
• Validation/verification criteria and their appropriate application within the defined scope of the work undertaken

Relevant expertise in:
• The specific industry, GHG activity and/or technology being reviewed
• Greenhouse gas inventory techniques including the identification and selection of GHG sources, sinks, reservoirs
• The relevant quantification methods
• Situations that may affect the materiality of the GHG assertion, including typical and atypical operating

The team lead must sign and submit the Statement of Qualification, Statement of Validation/Verification, and
Conflict of Interest.

As an overarching principle, Validation/Verification Bodies should seek consistency with the principles defined
in ISO 14064-3, which are:

To ensure the credibility of the emissions data reported to the Registry, it is crucial that the process is free from
bias and conflicts of interest. Validation/Verification Bodies must maintain objectivity throughout the process
to ensure that findings and conclusions will be based on objective evidence.

Validation/Verification Bodies must demonstrate ethical conduct through trust, integrity, confidentiality,
and discretion throughout the process .

Validation/Verification Bodies must reflect truthfully and accurately the results of the activities conducted.

Alberta Environment expects Validation/Verification Bodies to exercise due professional care and judgment in
accordance with the importance of the task performed and the confidence placed by clients and intended users.
In addition, Validation/Verification Bodies must have the necessary skills and competences when executing the
work activities .

Key Elements of the Greenhouse Gas Assertion
The project greenhouse gas assertion should describe the extent to which the proposed project will result in
significant and direct reductions in GHG. Information should be accurate and complete and of sufficient clarity
that it could be used by an independent third party validator/verifier/ as a basis for assessing the project condition
against the baseline, and assessing the project’s emissions reductions. Generally speaking, the proposal should
include descriptions of:
• Baseline condition. The baseline condition is a reasonable representation of conditions that would likely have
  occurred during the project, had the project not been implemented . In other words, the baseline represents
  “business as usual” and the project represents a change from this practice . Greenhouse gas emission reductions
  achieved by the project are measured by comparing the project conditions against the project baseline to
  quantify the difference in emissions between the two scenarios.
• Project condition. The project condition is a specific action or intervention targeted at reducing greenhouse
  gas emissions and may consist of one or more related activities. The project condition may include modification
  of existing production, process, consumption, service, delivery or management systems, or introduction of
  new systems.

CCEMC 2010 Call for Proposals: Energy Efficiency: Full Project Proposal Guidelines                                      27
• How the GHG reductions (in tonnes CO2e) were calculated, including clearly identifying all assumptions, risks,
  inputs, emission factors, equations and methods .
• What GHG monitoring methodologies will be employed throughout the course of the project?
• How the project data will be managed.

This document is only intended to provide an overview of the general policy requirements for validation.
More detailed guidance on how to undertake third party validation can be found in the CCEMC Validation
Guidance Document at

CCEMC 2010 Call for Proposals: Energy Efficiency: Full Project Proposal Guidelines                                 28

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