Codes Acceleration Fund Application Guide

Codes Acceleration Fund Application Guide

• Introduction
• CAF background
• Fund objectives
• Stream 1: Support for jurisdictions with the authority to adopt energy codes
  • Purpose
  • Project requirements
  • Eligible recipients
  • Eligible activities
  • Eligible expenses
  • Application requirements and assessment criteria.
  • Funding conditions and stacking limits
  • Distribution of funds to other entities
• Stream 2: Support for organizations without the authority to adopt energy codes
  • Purpose
  • Project requirements
  • Eligible recipients
  • Eligible activities
  • Eligible expenses
  • Application requirements and assessment criteria
  • Funding conditions and stacking limits
• Completing the application form
• Application process
• Contribution agreements
  • Service standards
  • Intellectual property
  • Privacy and confidentiality
  • Project communications and reporting requirements

The Codes Acceleration Fund Application Guide provides background and guidance to applicants for Natural Resource Canada’s Codes Acceleration Fund (CAF). The guide includes key fund information to help applicants complete their funding proposal:

• CAF objectives
• CAF streams
• mandatory CAF requirements
• eligible project recipients, activities and costs
• timelines
• the application process

Applicants are strongly encouraged to review all the requirements before completing the application form. Information in the application form will be used to evaluate each proposal. Incomplete proposals, or those with incomplete or missing application forms, will not be reviewed. Applications that do not meet the requirements as stipulated in this guide may not be accepted or may be penalized in the evaluation process.

The call for proposals will be open until April 14th, 2023 at 11:59pm EDT. Indigenous applicants will have until March 31, 2025, to submit their proposals.

Read this guide carefully and direct any questions you have to the Office of Energy Efficiency via email at caf-fac@nrcan-rncan.gc.ca.

The Government of Canada is taking action to reduce greenhouse gas (GHG) emissions and energy consumption to fight climate change while strengthening the economy.

In March 2022, the government released its 2030 Emissions Reduction Plan (ERP) – the first under the Canadian Net-Zero Emissions Accountability Act. The ERP outlines a sector-by-sector path for Canada to reach its emissions reduction target of 40 to 45% below 2005 levels by 2030 and net-zero emissions by 2050.

Building on the ERP, the ultimate goal of the Canada Green Buildings Strategy is a net-zero emissions and climate-resilient buildings sector by 2050.

To decarbonize the buildings sector, jurisdictions will need to quickly adopt national model building and energy codes. The CAF has been designed to fund actions by provinces, territories, municipalities, Indigenous governments and stakeholders. It will fund actions that will enable adoption of and compliance with the higher performance tiers set out in the newly published 2020 codes, along with other high-performance codes such as net-zero emissions codes.

In March 2022, Codes Canada published the 2020 editions of the National Building Code of Canada 2020 (NBC) (s. 9.36) and the National Energy Code of Canada for Buildings (NECB). These two codes detail progressive performance tiers that will maximize energy efficiency in new construction and allow provinces, territories, municipalities and Indigenous communities to incrementally adopt higher levels of performance.

• The NECB has four tiers of performance improvement, with the last tier yielding at least a 60% reduction in energy consumption over the baseline tier 1.
• The NBC 9.36 has five tiers of performance improvement, with the last tier yielding at least a 60 to 70% reduction in energy consumption over the baseline tier 1.

Concurrently, the federal government has committed to developing codes for making alterations to existing buildings and net-zero emissions codes for new construction. Some jurisdictions are exploring variations on net-zero emissions codes. These codes are steps toward having a net-zero buildings sector by 2050.

Through the CAF, the federal government is committed to supporting timely adoption of these codes to create the necessary conditions to meet Canada’s GHG reduction targets.

Natural Resources Canada’s Office of Energy Efficiency (OEE) is delivering the CAF. The CAF will help accelerate the adoption of and compliance with the higher performance tiers set out in the newly published 2020 codes or with other high-performance codes such as net-zero emissions codes.

The three objectives of the CAF are to:

• Accelerate the adoption and implementation of the highest feasible energy performance tiers of the national model energy codes or other high-performance building codes, such as net-zero emissions codes
• Promote higher rates of compliance with adopted codes
• Build capacity and support market preparedness for ambitious codes adoption

The CAF has two funding streams:

• Stream 1: Support for jurisdictions with the authority to adopt energy codes
  • This funding will support provinces, territories, municipalities, and Indigenous governments and communities with the authority to adopt energy codes, to accelerate code adoption and address gaps in code compliance and enforcement.
• Stream 2: Support for organizations without the authority to adopt energy codes
  • This funding will support organizations that do not have the authority to adopt energy codes to develop capacity-building projects that contribute to code adoption, compliance, and/or enforcement. This group includes for-profit and not-for-profit organizations and jurisdictions that do not have the authority to adopt codes.

Purpose

This stream, representing the majority of the available funding, will provide financial support to provinces, territories, municipalities, and Indigenous governments and communities with the authority to adopt energy codes. The funding will support their efforts to accelerate code adoption and to address gaps in code compliance and enforcement in their jurisdiction.

Project requirements

Through Stream 1, applicants are invited to outline proposed activities to accelerate code adoption beyond current plans, to increase compliance, and to support other capacity-building activities in their jurisdiction. A list of eligible activities and expenses is provided in following sections.

At a minimum, applicants to Stream 1 must outline plans in their proposed projects to:

• Develop and publish a road map for code adoption in their jurisdiction
  • This includes outlining key activities and timelines for adopting energy codes, including the higher tiers of the model codes, and other code-related milestones.
• Adopt at least tier 2 of the NECB and/or tier 2 of the NBC s9.36 (or equivalent) on an accelerated schedule
  • This includes outlining plans, activities and other relevant information related to adopting these tiers or equivalents. NRCan will give preference to applications that outline plans to adopt tier 2 of the NBC and the NECB on an accelerated schedule, e.g. by 2024 or 2025, or higher tiers or other high-performance building codes, such as net-zero emissions codes. NRCan may not consider applications that plan to adopt tier 2 on a slower schedule, e.g. beyond 2027, because time is of the essence.
• Assess the feasibility and pathway toward adopting the higher tiers (e.g. tiers 3 to 4 for the NECB and tiers 3 to 5 for the NBC) and the upcoming alterations to existing buildings codes (when published)
  • This includes outlining plans and activities for assessing requirements to adopt these codes.
• Assess and outline a plan to increase code compliance in their jurisdiction
  • This includes outlining plans to assess and monitor compliance with codes in their jurisdiction and to report progress at the end of the project.

NRCan encourages applicants to outline plans that would help exceed these minimum requirements, including activities aimed toward adopting tier 3+ on an accelerated schedule, activities aimed toward adopting, or assessing the feasibility of adopting, net-zero emission codes, and other activities. NRCan will give preference to applications that demonstrate action on an accelerated schedule within their jurisdictional context. Contribution agreements will be negotiated between NRCan and successful applicants.

More information is available in the application form.

Eligible recipients

Eligible recipients for Stream 1 funding include the following:

• Canadian provincial, territorial, regional and municipal governments and their departments and agencies. Note that this stream is limited to organizations with the authority to adopt energy codes.
• Indigenous governing bodies, organizations (for-profit and not-for-profit) and communities. Note that this stream is limited to organizations with the authority to adopt energy codes.

Note to eligible recipients that are Indigenous governing bodies, organizations and communities with the authority to adopt energy codes:

• The CAF will reserve a portion of its funding to support proposals that promote code adoption, compliance and enforcement in Indigenous communities.
• These proposals will be accepted on an ongoing basis until March 31, 2025. The only requirement is that these organizations have the authority to adopt energy codes. NRCan will also consider adapting the CAF over time to reduce barriers for Indigenous applicants, based on input from Indigenous peoples and communities.

NRCan also encourages non-Indigenous applicants to include activities that promote code adoption, compliance and enforcement in Indigenous communities in their jurisdiction.

Eligible activities

Eligible activities are:

• Technical studies; research and analysis; feasibility studies; assessments and evaluations; monitoring and verification; tools to support code adoption and compliance; design validation services associated with construction of new buildings; and other tools to support code adoption or compliance
• Developing detailed road maps for code adoption and compliance that build on current plans
• Business cases or plans and project development and management
• Data collection and analysis
• Best practices guides and process tools for code implementation and compliance
• Energy modelling and simulation software and monitoring and tracking systems to track energy performance or code compliance
• Integrated design processes and charrettes (problem-solving design and planning sessions) to identify optimized opportunities
• Commissioning and building optimization studies and guides that support code adoption and implementation
• Training, including development and delivery
• Stakeholder engagement and communication and awareness programs, including disseminating information
• Evaluation of the project to determine the overall impacts of the projects

Other activities related to adopting codes may be eligible.

Eligible expenses

Eligible expenses are cash expenditures incurred to achieve the CAF objectives and undertake the proposed activities and will consist of:

• Salaries and benefits on the payroll of the applicant for the actual time spent by the employees on the project
• Professional, scientific, technical, management, data collection and contracting services
• Travel expenditures, including meals and accommodation, based on National Joint Council Rates
• Advertising, recruitment and training (including facilitator fees, costs of training development, promotion, deployment and evaluation)
• Licence fees, data purchases, certification costs, and permits
• Capital expenditures for informatics hardware and software (capital expenses for retrofits are ineligible)
• Material, supplies and equipment rental
• Rental of facilities, audio and visual services, and other related costs (excluding hospitality and prizes) associated with delivering workshops, delivering training, conferences, meetings, and special events
• Overhead expenditures provided that they are related to the conduct of the project and can be attributed to it. Overhead expenditures may be included in the total project costs, up to 15% of eligible expenditures.
• GST, PST or HST, net of any tax rebate to which the applicant is entitled

Ineligible expenditures include, but are not limited to:

• Costs incurred before the signing of the contribution agreement
• Capital costs for equipment upgrades and other retrofit implementation costs
• Land acquisition; leasing land, buildings and other facilities; leasing equipment other than equipment directly related to the project; real estate fees and related costs

Send questions about these eligible costs to caf-fac@nrcan-rncan.gc.ca.

Application requirements and assessment criteria

All proposals must include a completed application form that clearly identifies:

• The alignment of the project’s objectives to the CAF’s objectives and the requirements of Stream 1
• Proposed deliverables, benefits and expected outcomes (including GHG and energy savings, where possible)
• The applicant’s efforts to include the needs and participation of regional and/or municipal governments in planning and implementing the project
• The applicant’s capacity to implement the proposed activities, including the project team’s credentials and experience and their access to other funding sources
• A detailed work plan, including timelines, budget, risk assessment, and mitigation plans
• A description of potential non-energy benefits, such as economic growth, job creation, health or social benefits, and climate resiliency

Preference will be given to projects that:

• Demonstrate an accelerated plan for code adoption
• Demonstrate efforts to include the needs of regional and/or municipal governments and Indigenous communities in planning and implementing the proposed project
• Outline a plan to address equity, diversity and inclusion considerations
• Outline a plan to address considerations pertaining to Indigenous communities

Final funding decisions will consider the assessment results and other criteria such as:

• Funding requested per year and the CAF budget availability
• Distribution of funding to projects across Canada
• Distribution of funding to projects that address both residential and commercial and institutional buildings

Funding conditions and stacking limits

The CAF has $100 million for CAF projects until March 31, 2027. Approximately $80 million is for Stream 1 and $20 million is for Stream 2. This allocation is subject to change.

NRCan may provide some or all of the funds requested by the applicants, based on the number of successful projects, the proposal evaluations, and the amount of funding available in any given year.

The total Canadian government funding (federal, provincial, territorial, regional and municipal) authorized for each project is allocated as follows:

• For-profit organizations can receive up to 75% of the total project costs.
• All other recipients can receive up to 100% of the total project costs.

Applicants must disclose all anticipated sources (Canadian and foreign) of funding for the project, including in-kind contributions. They must clearly identify contributions from other Canadian government sources (federal, provincial, territorial, regional, and municipal).

If the total Canadian government funding to a recipient exceeds the eligible expenditures, NRCan will reduce its funding to comply with the funding stacking limits. If necessary, NRCan will seek reimbursement.

Distribution of funds to other entities

Recipients may redistribute their funding to one or more people and/or entities to conduct project activities. They have sole discretion in how to redistribute their funding, with minimal guidance from NRCan. Recipients are not acting as an agent of the government when they redistribute their funding.

Recipients must ensure that the redistributed funding is for projects and activities that align with the stream listed in the contribution agreement. Activities may include coordinating calls for proposals; selecting who to redistribute funding to; and managing the funding agreements with these additional people and entities.

A recipient’s eligible expenditures (overhead) related to redistributing their funding must not exceed 15% of the federal contribution (see overhead expenditures in the Eligible Expenses section).

Recipients who plan to redistribute their funding to conduct project activities must contact the CAF at caf-fac@nrcan-rncan.gc.ca to receive further instruction before they submit their application.

Purpose

Stream 2 funds organizations that do not have the authority to adopt building energy codes. This funding will help these organizations to deliver projects that contribute to code adoption, compliance, and enforcement, either within a single jurisdiction or, preferably, on a broader scale. The funding may be used for developing training, tools, resources, and other capacity building activities.

Project requirements

At a minimum, applicants to Stream 2 must outline plans in their proposed projects to:

• Develop capacity-building resources, tools and approaches that will accelerate code adoption, compliance, and/or enforcement
  • Organizations may use this funding to develop expert working groups; technical supports; design charrettes (problem-solving design or planning sessions); training modules and delivery; software models; permitting and compliance tools; and other tool development or capacity-building activities.
• Expand and disseminate the results of their project
  • NRCan may favour projects that have the potential to foster code adoption, compliance, and/or enforcement beyond the borders of a single province, territory, municipality or Indigenous community, preferably on a national scale.

More information is available in the application form.

Eligible recipients

Eligible recipients for Stream 2 funding include the following:

• Not-for-profit organizations that are legally incorporated or registered in Canada, including educational institutions
• Regional and municipal governments that do not have the authority to adopt building energy by-laws and/or codes
• Utilities
• For-profit organizations that are legally incorporated or registered in Canada with established businesses in Canada
• Indigenous governing bodies, organizations (for profit and not-for-profit) and communities that do not have the authority to adopt building by-laws and/or codes

Note to eligible recipients that are Indigenous governing bodies, organizations and communities without the authority to adopt energy codes:

• The CAF will reserve a portion of its funding to support proposals that promote code adoption, compliance and enforcement in Indigenous communities.
• These proposals will be accepted on an ongoing basis until March 31, 2025. NRCan will also consider adapting the CAF over time to reduce barriers for Indigenous applicants, based on input from Indigenous peoples and communities.

Eligible activities

Eligible activities are:

• Technical studies; research and analysis; feasibility studies; assessments and evaluations; monitoring and verification; tools to support code adoption and compliance; design validation services associated with construction of new buildings; and other tools to support code adoption or compliance
• Templates or studies pertaining to road maps for code adoption, compliance and enforcement and other buildings policies
• Business cases or plans and project development and management
• Data collection and analysis
• Best practices guides and process tools for code implementation and compliance
• Energy modelling and simulation software and monitoring and tracking systems to track energy performance or code compliance
• Integrated design processes and charrettes (problem-solving design and planning sessions) to identify optimized opportunities
• Commissioning and building optimization studies and guides that support code adoption and implementation
• Training, including development and delivery
• Stakeholder engagement and communication and awareness programs, including disseminating information
• Evaluation of the project to determine the overall impacts of the projects

Other activities related to adopting codes may be eligible.

Eligible expenses

Eligible expenses are cash expenditures incurred to achieve the CAF objectives and undertake the proposed activities, and will consist of:

• Salaries and benefits on the payroll of the applicant for the actual time spent by the employees on the project
• Professional, scientific, technical, management, data collection and contracting services
• Travel expenditures, including meals and accommodation, based on National Joint Council Rates
• Advertising, recruitment and training (including facilitator fees, costs of training development, promotion, deployment and evaluation)
• Licence fees, data purchases, certification costs, and permits
• Capital expenditures for informatics hardware and software (capital expenses for retrofits are ineligible)
• Material, supplies and equipment rental
• Rental of facilities, audio and visual services, and other related costs (excluding hospitality and prizes) associated with delivering workshops, delivering training, conferences, meetings and special events
• Overhead expenditures provided that they are related to the conduct of the project and can be attributed to it. Overhead expenditures may be included in the total project costs, up to 15% of eligible expenditures.
• GST, PST or HST, net of any tax rebate to which the applicant is entitled

Ineligible expenditures include, but are not limited to:

• Costs incurred before the signing of the contribution agreement
• Capital costs for equipment upgrades and other retrofit implementation costs
• Land acquisition; leasing land, buildings and other facilities; leasing equipment other than equipment directly related to the project; real estate fees and related costs

Send questions about these eligible and ineligible costs to caf-fac@nrcan-rncan.gc.ca.

Application requirements and assessment criteria

All proposals must include a completed application form that clearly identifies:

• The alignment of the project’s objectives to the CAF’s objectives and the requirements of Stream 2
• Proposed deliverables, benefits and expected outcomes (including GHG and energy savings, where possible)
• The applicant’s efforts to consider the needs of authorities that have jurisdiction to adopt energy codes in planning the project
• The applicant’s capacity to implement the proposed activities, including the project team’s credentials and experience and their access to other funding sources
• A detailed work plan, including timelines, budget, risk assessment, and mitigation plans
• A description of potential non-energy benefits, such as economic growth, job creation, health or social benefits, and climate resiliency

Preference will be given to projects that:

• Demonstrate efforts to consider the needs of authorities that have jurisdiction to adopt energy codes in planning the project
• Outline a plan to address equity, diversity and inclusion considerations
• Outline a plan to address considerations pertaining to Indigenous communities

Final funding decisions will consider the assessment results and other criteria such as:

• Funding requested per year and the CAF budget availability
• Distribution of funding to projects across Canada
• Distribution of funding to projects that address both residential and commercial and institutional buildings

The assessment criteria will establish a prioritized list of eligible projects. NRCan may provide some or all the funds requested, based on the number of successful projects, the proposal evaluations, and the amount of funding available in any given year.

Funding conditions and stacking limits

The CAF has $100 million for CAF projects until March 31, 2027. Approximately $80 million is for Stream 1, and $20 million is for Stream 2. This allocation is subject to change.

The total Canadian government funding (federal, provincial, territorial, regional and municipal) authorized for each project is allocated as follows:

• For-profit organizations can receive up to 75% of the total project costs.
• All other recipients can receive up to 100% of the total project costs.

Applicants must disclose all anticipated sources (Canadian and foreign) of funding for the project, including in-kind contributions. They must clearly identify contributions from other Canadian government sources (federal, provincial, territorial, and municipal).

If the total Canadian government funding to a recipient exceeds the eligible expenditures, NRCan will reduce its funding to comply with the funding stacking limits. If necessary, NRCan will seek reimbursement.

Application form sections

You must complete all four sections of the application form and have it signed by an authorized officer. You need to provide detailed information about the project, including all assumptions made.

Section 1. Applicant information

Provide contact information for the lead applicant, who will be the contact person about the application form, supplementary information, and any resulting contribution agreement between NRCan and the applicant organization.

Also include contact information for all the partners, if applicable. Add pages to your application for additional partners, if necessary.

Section 2. Project

Describe the initiative or initiatives that the applicant is proposing. It is critical that applicants describe how the initiatives achieve the broader goals of the CAF and meet the Stream 1 or Stream 2 project requirements, where relevant.

It is essential that this section be very detailed because it accounts for most of the points awarded to applicants and will be used to draft the contribution agreement. We welcome accompanying documentation to support material in this section.

This section includes:

• Type of project
• Project objectives and deliverables
• Project scope, including key activities, targeted sectors and regions, and timelines
• Project team, including a profile of the organization, its management structure and the team members
• Project workplan
• Project costs and sources of funding, including costing per year, costs per expenditure category and costs per activity. Indicate if your activities will continue after the CAF funding has ended.
• Benefits and expected outcomes

Section 3. Other application requirements

Disclose any additional information that can help explain how the initiatives or activities align with the NRCan mandate, policy requirements, and desired outcomes. Also list the possible impacts or outcomes of the initiatives in broader Canadian society. If you decide that a particular section is not applicable, indicate that in the relevant field.

This section includes:

• Project risks and mitigation strategy
  • Applicants must perform a standard analysis of possible risks to the project’s success, such as costs and the supply of materials or labour. Applicants must also evaluate these risks and outline a mitigation strategy for risks that are unacceptably high.
• Indigenous considerations
  • Applications led by an Indigenous organization or that include an Indigenous focus are highly encouraged. Where possible, applications that are not led by an Indigenous organization should consider how to include the needs of Indigenous communities in planning and implementation of the project.
• Equity, diversity and inclusion considerations
  • NRCan encourages every application to include equity, diversity and inclusion considerations. These considerations can include how project activities are inclusive of under-represented and under-resourced people and communities and are respectful of the communities affected by the project. Where possible, NRCan requires that recipients report on employment impacts for these groups, including hiring practices, policies or plans that are used to achieve these goals.

• Information dissemination and knowledge transfer
  • It is important that applicants develop a plan to share information with the buildings codes community.
• Project evaluation
  • Applicants must explain how they plan to assess their project, separate from any evaluation done by NRCan.
• Supplementary documents and other supporting information

Section 4. Attestation and certification

Confirm that you agree to meet the CAF requirements and to provide the signature of a duly authorized officer.

After the applicant is notified that their project is approved, NRCan will draft a contribution agreement. The contribution agreement states the terms and conditions under which NRCan will provide funding for the initiatives described in the application (which NRCan will now call a “project”). The application form contains an appendix that lists the CAF conditions that will be a part of the contribution agreement.

The contribution agreement will be drafted based on the information in the application form (particularly the project scope and eligible costs) and other follow up information received upon request by NRCan.

During the process, NRCan will negotiate and work closely with the applicant (now called a “recipient”) to ensure that the contribution agreement captures the application accurately. Therefore, it is important for applicants to provide detailed and accurate descriptions of the project scope, costs, deliverables, benefits and outcomes.

Recipients must agree to the terms and conditions of the contribution agreement:

• Complete the project according to the defined scope and within the timelines stated in the application form
• Accept responsibility for and cover cost overruns from the budget in the application form
• Accept responsibility for all costs associated with work performed outside the approved scope of the project

If you do not complete the project in the defined scope and timeline, the federal government may reduce their contribution or request that their funds be returned. In an extreme case, the project could be cancelled.

Service standards

A service standard is a public commitment to measure the level of performance that clients can expect under normal circumstances. NRCan is committed to adhering to the following three service standards to increase transparency, to clarify expectations and to focus on service:

• Acknowledge receipt of the application and/or proposal
  • NRCan will acknowledge receipt of an application and/or a proposal within five business days of receiving it. NRCan aims to meet this standard 95% of the time.
• Provide a funding decision
  • NRCan will issue an official written notification of the funding decision within 80 business days of the closing date of the call for proposals. NRCan aims to meet this standard 90% of the time.
• Issue payment
  • NRCan will issue payments within 30 calendar days of receiving invoices if all of the conditions in the contribution agreement are met. NRCan aims to meet this standard 90% of the time.

NRCan’s service standards results are posted publicly on the department website under Departmental Reports.

Intellectual property

All intellectual property that arises from the project will vest in the recipient or be licensed to the recipient if a recipient’s subcontractor retains title to such intellectual property.

Recipients will give the reports and documents described in the contribution agreement to NRCan. The recipient hereby grants to NRCan a non-exclusive, irrevocable, worldwide, free and royalty-free licence in perpetuity. That licence is to use, modify, and make publicly available (subject to the Access to Information Act) such reports and documents for non-commercial governmental purposes.

Privacy and confidentiality

The use and distribution of data collected under the CAF will comply with both the Privacy Act and the Access to Information Act.

Pursuant to the Privacy Act, the CAF will keep confidential any personal information it may collect and will not disclose or transmit said information without the applicant’s written consent.

Pursuant to the Access to Information Act, the CAF will protect from disclosure any information of a financial, commercial, scientific, or technical nature that it collects from applicants, provided the applicants treat said information as confidential in their own establishments.

The applicant’s name, project title, non-confidential project overview, and the amount of funding awarded will be public information if the project is selected for funding. All other information is treated as confidential unless otherwise indicated by the applicant.

Project communications and reporting requirements

Regular communication between NRCan and the recipient will be established to monitor progress.

Contribution agreements will require progress reports and notification of any concerns about project completion, including related mitigation plans.

At the end of the project, recipients must provide a final financial report signed by the chief financial officer or authorized officer of the organization and a final report that describes the project results and any next steps.