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Agenda

Overview of Clean Technology Programs Objectives What projects are supported? Eligibility Merit criteria Online resources How to apply Time lines Payment Reporting. Agenda. Clean Energy Future. Renewable Energy. Energy Efficiency. Land Sector. Carbon Price.

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Agenda

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  1. ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  2. Overview of Clean Technology Programs Objectives What projects are supported? Eligibility Merit criteria Online resources How to apply Time lines Payment Reporting Agenda ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  3. Clean Energy Future Renewable Energy Energy Efficiency Land Sector Carbon Price ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  4. Clean Technology Investment Program ($800 million over 7 years) Clean Technology Food and Foundries Investment Program ($200 million over 6 years) Clean Technology Innovation Program ($200 million over 5 years) Clean Technology Programs ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  5. Related programs: Clean Technology Focus for Supply Chains ($5m over 4 years) Steel Transformation Plan ($300m over 4 years) For more information, visit: www.innovation.gov.au/Industry/CleanEnergyFuture/Pages/default.aspx Clean Technology Programs ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  6. To assist Australian manufacturers to maintain competitiveness in a carbon-constrained economy by supporting investment in energy efficient capital equipment and low emissions technologies, processes and products. Objective ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  7. What sort of projects can be supported? Projects must be relevant to your manufacturing activities and create carbon or energy savings. • Replacement or modification of existing facilities • Changing energy source • Replacing or modifying existing facilities to manufacture low emissions products ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  8. Lead applicant + one or more project partners Eligibility criteria Collaborative partnership agreement Collaborative projects ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  9. Grant ratios • Minimum $25,000 • No maximum *unless otherwise recommended by Cabinet of the Australian Government ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  10. Non tax exempt Australian corporation undertaking manufacturing activities in Australia Able to fund costs of the project not covered by the grant Complied with obligations under the Equal Opportunity for Women in the Workplace Act 1999. Eligibility requirements - common to both programs ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  11. General Investment Program: Must meet energy or emissions threshold or be directly liable under the Carbon Pricing Mechanism Food and Foundries Program: Must be undertaking food or foundries manufacturing activities Eligibility requirements - differences ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  12. In the 12 month period before applying: used at least 300 mega-watt hours of electricity; or used at least 5 tera-joules of natural gas; or used a mix of fuels and/or electricity that results in the emissions of at least 0.27 kilotonnes of carbon dioxide equivalent; OR be directly liable under the Carbon Pricing Mechanism, i.e. produce more than 25 kilo tonnes of CO2-e emissions in a 12 month period and are required to obtain a permit for every tonne of pollution produced. Energy consumption threshold ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  13. Energy threshold calculator ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  14. Evidence of your ability to fund your share of the project: Accountant’s Declaration for grants less than $500,000 Funding strategy for grants $500,000 or more. For general investment program only: Evidence of meeting the energy or emissions threshold. Demonstrating eligibility ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  15. If eligible for the Food and Foundries Program, you are not eligible for the General Investment Program Non incorporated bodies Non factory based bakery businesses Non factory based food preparation businesses Eligible for funding under the Steel Transformation Plan Who is NOT eligible? ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  16. Addressing the merit criteria ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  17. Merit criteria ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  18. The extent of the reduction in carbon emissions intensity including through improvements in energy efficiency arising from the project. Indicator 1: Predicted reduction in carbon emissions intensity (%) post project implementation Indicator 2: Total predicted carbon savings (tonnes ) over the life of the conservation measure Merit criterion 1 ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  19. Predicted reduction in carbon emissions intensity (%) post project implementation Manufacturer A currently emits 10 tonnes of CO2-e for every tonne of product produced. Post project, the carbon emissions will be 7 tonnes of CO2-e for every tonne of product. Saving of 3 tonnes of CO2-e or a 30% reduction in emissions intensity. Merit criterion 1 – Indicator 1 ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  20. Total predicted carbon savings (tonnes) over the life of the conservation measure Post project, Manufacturer A saves 3 tonnes of CO2-e per tonne of product Production is 1000 tonnes of product per year leading to savings of 3,000 tonnes of CO2-e The life of the energy efficiency measure is 20 years Total savings 60,000 tonnes of (20 x 3000) Merit criterion 1 – Indicator 2 ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  21. Converts electricity and fuel consumption into CO2-e Carbon Savings = Difference between baseline and post-implementation carbon emission intensities Carbon savings are constant over the life of the conservation measure Effective life: standard 10 year life of assets or ATO Effective Life Schedule Carbon and Energy Savings Calculator ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  22. Scope 1 (direct emissions) and Scope 2 (indirect emissions) National Greenhouse and Energy Reporting Determination 2008 – Schedule 1 2011 published factors State and Territory based electricity emissions factors Carbon and Energy Savings Calculator ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  23. Carbon and Energy Savings Calculator ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  24. Energy audit and action plan Feasibility study Engineering report Manufacturer’s specifications Evidence to support assumptions used ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  25. The capacity and capability of the applicant to undertake the project. In-house or external expertise or experience in key aspects of the project Technical, financial and project management experience of key personnel Relevant planning, environmental and other approvals Merit criterion 2 ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  26. The extent to which the project maintains and improves the competitiveness of the applicants business. Benefits to business Payback period Return on Investment Calculator for $1.5 million or more Merit criterion 3 ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  27. Return on Investment Calculator ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  28. Return on Investment Calculator ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  29. The contribution of the proposed project to a competitive, low carbon, Australian manufacturing industry and the benefits to the broader Australian economy. Environmental benefits Economy and employment Australian suppliers Regional impacts Green skills Key manufacturing capability Demonstration activities Merit criterion 4 ($1.5 million or more) ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  30. Application Process ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  31. Customer Guidelines Fact Sheets including: Estimating Energy & Carbon Savings Estimating Financial Benefits Identifying Energy Efficiency or Emissions Reduction Projects Other Resources & Assistance from Australian Government On-line Application Form Guide to Completing the Application Form (Trouble Shooting Guide) Customer resources ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  32. Energy Threshold Calculator Carbon and Energy Savings Calculator Guide to Using Energy & Carbon Savings Calculator Return on Investment Calculator Eligible Expenditure Guidelines Customer resources (cont’d) ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  33. Complete application + attachments • Eligibility • Ability to fund • Energy consumption threshold (general investment only) • Merit • Carbon and Energy Savings Calculator • Merit 1 - evidence to support carbon and energy savings • Return on Investment Calculator (Grants of $1.5 million or more) ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  34. Project title and description Project plan with identified milestones Project budget Information about your project ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  35. Project timeline Figure A. Application date is Project start date Pre-Project Project Post-Project Up to 12 months Up to 2 years Up to 15 months Application date and Project start date Execution ofFunding Agreement Project completion date Figure B. Application date is not Project start date Pre-Project Project Post-Project Up to 12 months Up to 9 months Up to 2 years Up to 15 months Application date Execution ofFunding Agreement Projectstart date Project completion date ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  36. Project Milestones (6+1) Milestones must have defined outcomes that can be demonstrated Milestones can include multiple related and unrelated activities Projects can have up to 6 milestones Additional mandatory post project reporting milestone Project milestones ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  37. Project plan ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  38. Examples: Pre-project: energy audits, bench tests or pilot studies, energy modelling, identifying project, estimating energy or carbon savings the project will deliver Project: plant and equipment, commissioning, labour, contract expenditure, etc Post-project: financial audit, measuring and verifying the energy or carbon savings results Eligible expenditure ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  39. Plant and equipment purchase lease build Labour Contract expenditure Other expenditure Eligible expenditure ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  40. Project budget ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  41. How do you plan to measure and verify the actual energy or carbon savings delivered by your project? What evidence will you provide to AusIndustry to demonstrate the energy or carbon savings delivered by the project? Energy or carbon savings ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  42. Decision process ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  43. AusIndustry hotline handles enquiries Receipt number allocated after submission followed by acknowledgement by AusIndustry Applications can be submitted at any time Submitting your application ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  44. Innovation Australia Board (IAB) Independent statutory body Clean Technology Investment Committee IAB and committee members are private sector experts IAB consider all applications for funding Innovation Australia ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  45. Eligibility Check Merit Assessment Program Delegate Offer & Contract Innovation Australia Board Decision Period Decision process and timeline Clean Tech Investment Committee >$10M Cabinet ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  46. All applicants will be notified in writing Successful applicants: funding agreement negotiated and signed within 30 days Details published Unsuccessful applicants may submit a new application Notification of outcomes ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  47. Funding agreements ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  48. Confirm Project Dates Confirm Project Title and Description Evidence for project costs Milestones Confirm description and costs Agree evidence of completion Identify any requirement for additional progress reports Carbon and Energy Savings and Verification Agree timing and evidence to be provided Agreement finalisation requirements ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  49. Project Milestone Reporting Evidence to be provided within 30 days of milestone completion date to receive payment for that milestone Additional Progress Reporting If period of time between milestones is greater than 7 months an additional progress report must be submitted at six months after the previous milestone Post-project Reporting Evidence to be provided within 6 weeks of completing the energy and carbon saving measurement and verification activities Reporting ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

  50. All payments made upon receiving evidence of completed project milestones Payment Amount = (Milestone incurred expenditure x grant ratio) – retention amount 20% of total grant amount withheld until final project report has been receive Payments ausindustry.gov.au • 13 28 46 • hotline@ausindustry.gov.au •

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