BWIP Applicant’s Guide

From: Transport Canada

1. Program Objective

The Ballast Water Innovation Program (BWIP) is supporting Transport Canada’s efforts to implement the 2021 Ballast Water Regulations. Vessels need to use a Ballast Water Management System (BWMS) to comply with the Regulations and reduce the risk of introducing and spreading aquatic invasive species in Canada. The BWIP will help industry address technical and operational challenges with BWMS in the Great Lakes and St. Lawrence River (GLSLR) region, whose waters are cold, fresh, and mixed with sediment.

Specifically, the objectives of the BWIP are to provide funding, in the form of contributions, to implement projects that will:

  • support industry efforts to advance solutions to address technical challenges with the installation, operation and maintenance of BWMS on vessels in the GLSLR region thereby increasing environmental protection; and
  • increase the availability of data/information on the installation, operation and maintenance of BWMS in the GLSLR to: inform the implementation of the Regulations; inform Canada-U.S. discussions about regulatory compatibility; and support Canada’s international efforts to improve the Ballast Water Management Convention.

2. Available Funding

The Program will provide funding over a four-year period. All activities must be completed by March 31, 2027.

The Program will reimburse Recipients up to seventy five percent (75 %) of eligible expenditures incurred towards a project, up to a maximum contribution of $5,000,000 per project.

3. Eligibility Assessment Criteria

3.1 Eligible Recipient

Eligible applicants must be a Canadian legal entity and be one of the following entities:

  • For-profit private organizations
  • Provinces and territories, including provincially-owned and territorially-owned entities
  • Municipalities, including municipally-owned entities, and local and regional governments
  • Canada Port authorities
  • Not-for-profit private organizations
  • Public sector organizationsFootnote 1
  • Academia

3.2 Eligible Activities

Contributions will be provided to support the following eligible activities in alignment with the program’s objective.

  • Studies, research, development, testing and knowledge-sharing activities that address challenges to the installation, operation and maintenance of ballast water management systems in the Great Lakes and St. Lawrence River Region.

Examples of eligible activities may include the following:

  • Systematically collecting and periodically reporting comprehensive data on the use of in-service BWMS in a variety of seasonal conditions and water qualities on the GLSLR, with a view to determining:
    • effects on vessel systems and reporting on engineering outcomes such as BWMS operation success/failure, BWMS availability for ballasting, maintenance issues and reliability of BWMS;
    • the biological efficacy of the BWMS, such as changes in organism concentrations from uptake to discharge for typical BWMS operations and/or in response to challenging water quality; and/or
    • the impacts of BWMS operations on vessel or port operations such as on berthing time.
  • Developing and demonstrating solutions to address BWMS technical challenges on the GLSLR by testing and trialing modified, enhanced, optimized or newly-developed technology or procedures, including enhancements to improve the efficacy of BWMS – for example:
    • modification of filter configurations;
    • improved UV lamps;
    • approaches to mitigate risks when BWMS reach design operational limitations or have difficulty meeting operational demands in challenging water conditions (e.g. contingency measures and recovery measures).
  • Identifying knowledge/training gaps, compiling best practices and/or developing training initiatives for vessel crew related to installation, operation and/or maintenance of common types of BWMS for vessels operating in the GLSLR.
  • Other relevant activities that address BWMS installation, operation and/or maintenance challenges for vessels operating in the GLSLR as determined by the Minister of Transport.

Prototype systems or modified type-approved BWMS:

In the case of R&D projects that involve installing and operating prototype systems or modified type-approved BWMS, successful applicants will need to separately request exemption approval for R&D activity under Section 10(2.1) of the Canada Shipping Act, 2001, taking into account IMO Guidelines G10.

3.3 Proof of funding

Applicants must demonstrate that they have secured sufficient funding for their proposed project by identifying all sources of funds in their project proposal.

3.4 Eligible Expenditures

Eligible expenditures include the following, as necessary to execute eligible activities as defined in Section 3.2:

  • Staff salaries and benefits;
  • Fees for contracted services (e.g., accounting, audit and consulting);
  • Translation costs;
  • Room rentals and other facility costs;
  • Conference fees;
  • Purchase or lease of assets, technologies, equipment for instrumentation, design, processes, data, software, systems and supplies;
  • Storage and warehousing fees;
  • Expenditures related to ballast water management technologies, including design, planning, development, preparation, construction, improvement, retrofit, installation, training, operation, maintenance, rehabilitation of assets, deployment, demonstration, testing, analysis, and assessments
    • PLEASE NOTE: funding cannot be used for the installation, retrofit or operation of a Type ApprovedFootnote 2 BWMS where the purpose of the project is principally to meet the organization’s compliance obligations. Transport Canada may consider funding the installation or operation of a BWMS, on a limited number of vessels, where this is necessary to demonstrate a new or innovative approach to addressing operational challenges in the GLSLR;
  • Communication materials and associated activity costs;
  • Insurance costs related to project requirements for the testing and/or installation of technologies, software, hardware, sensors and any other equipment deemed necessary for vessel retrofits or new designs/builds;
  • Training costs (e.g. related to new technologies, equipment, software and systems);
  • Expenditures related to telecommunication, data analysis, and data validation services
  • Expenditures for sampling and analysis, monitoring, and data collection relating to ballast water;
  • Licenses and permits;
  • Administrative expenditures (including general administration expenditures, rent, insurance, office equipment rental, and membership fees) **;
  • Travel expenditures (including the cost of accommodations, vehicle rental and kilometric rates, bus, train, airplane or taxi fares, allowances for meals and incidentals). Travel and per diem expenses cannot be more than the rates and allowances determined in the Travel Directive of the National Joint Council, available at the following link: https://www.njc-cnm.gc.ca/directive/d10/en; and
  • Other expenditures not included in the categories above, as identified in the application for funding, and approved by the Minister or his/her delegated representative, to achieve the objectives and results of the Program.

** PLEASE NOTE: Transport Canada can contribute no more than fifteen percent (15%) of its total contribution to a project for administrative expenditures.

The above eligible expenditures may include in-kind expenditures when Transport Canada’s contribution is less than 100% of eligible expenditures. In-kind expenditures may take the form of:

  • Goods, services or assets consumed by the recipient for which costs are incurred and no cash is exchanged;
  • Donations of goods, services or assets to the recipient, for which no costs are incurred and no cash is exchanged;
  • Donations are not eligible for reimbursement but may form part of the recipient’s share of the total eligible expenditures.

3.5 Ineligible Expenditures

Certain expenditures are not eligible for funding and therefore will not be considered in the calculation of the total eligible expenditures of the project, including:

  • Costs incurred before the funding approval date or after the final claim date;
  • Expenditures for provincial sales tax and Goods and Services Tax, or the Harmonized Sales Tax, where applicable, where the recipient is eligible for a rebate, or for any other costs where the recipient is eligible for a rebate;
  • Purchase of land and/or buildings, and related real estate fees;
  • Financing charges and interest payments on loans; and
  • Expenditures that have been reimbursed from other sources of funding, federal statutes or funding programs.

3.6 Eligible Project Duration and Approvals

  • Projects may begin to incur costs on the date of approval of the project by the Minister and must be completed by March 31, 2027.
    1. Projects may begin to incur costs upon approval; however, no reimbursements will be provided until a funding agreement is signed.

4. Merit Selection Criteria

Applicants must provide the following information to support the assessment of their project (Refer to Section 8).

4.1 Relevance of the Project

  • Applicants must describe clearly how their proposed project objective(s) and outcome(s) align and support BWIP’s objectives as identified in Section 1 (above);
  • Applicants must describe clearly how their proposed project activities align with eligible activities under BWIP; and
  • Applicants must describe clearly how their proposed project will utilize credible and generally-accepted methodologies/approaches (e.g. scientific studies) to undertake their research in pursuit of feasible and practical outcomes.

4.2 Applicant's Relevant Experience and Capacity

This refers to how well the applicant is able, in terms of resources, personnel and expertise, to complete the proposed project. The project proposal must clearly outline the experience and capacity of the project team. The proposal must demonstrate that the applicant (and any project partners) is able to effectively undertake the proposed project. More specifically, Transport Canada will consider:

  • Experience and expertise of personnel involved in delivering the project;
  • Collaborations with project partners that add value to the project, e.g. other vessel owners/operators, original equipment manufacturers, technology developers, industry associations and/or academia; and
  • Institutional, management/organizational structures, financial controls and other support required to successfully deliver the proposed project.

4.3 Quality of the Project Plan

The degree to which the planned activities, schedule, budget, results, roles and responsibilities are clear, realistic and consistent with the proposed project’s objectives. The following criteria will be assessed:

  • Clearly stated goals, objectives and outcomes;
  • A realizable project plan, concrete deliverables, budget and timelines;
  • A detailed risk analysis and a mitigation strategy;
  • An experienced and qualified project manager with roles and responsibilities clearly established;
  • A robust plan to disseminate project results to other marine stakeholders (e.g., preparing reports with results that could be published on Transport Canada’s website, participating at Transport Canada-organized workshops/conferences, publishing results in peer reviewed technical journals, etc.) and through knowledge-sharing meetings with Transport Canada.

4.4 Value for Money

The project proposal must demonstrate effective and efficient use of resources and plans for producing outputs.

4.5 Project-Specific Criteria

In addition to the mandatory selection criteria, project proposals will also be assessed based on the degree to which they address the following project-specific criteria:

PC 1 The project leverages participation from 2 or more Canadian vessel owners/operators with respect to their operations on the GLSLR.
PC 2 The project addresses multiple challenges related to BWMS installation, operation and maintenance in the GLSLR.
PC 3 The project involves existing type-approved BWMS.

5. Notification

After the project proposal has been assessed, the applicant will be informed whether the project has been selected for funding. Transport Canada reserves the right to accept or reject any project proposal.

6. Service Standards

In an effort to continually improve service and conduct a transparent process, the following service standards have been established:

  • Our goal is to provide applicants with written acknowledgement of receipt of their project proposal within 10 business days of the application deadline date.
  • Our goal is to issue payments within 20 business days following the notification to the recipient that the requirements outlined in the funding agreement have been fulfilled.

Note: If the Program cannot meet the above standards, we will advise recipients in a timely manner.

7. Funding Agreements

Upon being successfully selected, a funding agreement must be signed by both parties (Transport Canada and the recipient), in order to enable the department to begin reimbursing project expenditures. A funding agreement is a legal agreement between both parties, establishing rights and responsibilities. The following sections highlight key elements of a typical funding agreement:

7.1 Risk Review/Assessment

A risk assessment of the project will be conducted by Transport Canada, prior to issuing a funding agreement. This enables Transport Canada to develop a funding agreement that adequately addresses the project’s potential risk levels that considers the recipient's capacity to deliver results. The project risk assessment will determine:

  • How often the recipient must report project progress;
  • Financial documentation the recipient must submit with payment claims;
  • How often site visits will be made by TC with and/or contact the recipient; and
  • Audit requirements (all funding agreements are subject to a potential audit at the exclusive determination by Transport Canada).

7.2 Project Scope and Agreement

The applicant's project proposal will form the foundation of the project scope, mandatory legal documentation, clauses, terms and conditions, and payment structure that are included in the funding agreement. Once the funding agreement is signed, no change to the scope of the project (including budget, structure, timelines, etc.) is possible without prior written agreement between the recipient and Transport Canada.

7.3 Reporting Requirements

Reporting requirements will be established in the funding agreement and may include providing financial claims, list of invoices, progress reports, annual reports, and a final report, among other elements.

7.4 Progress Reports

Recipients must submit written progress reports on a quarterly basis, or other frequency, as identified in the funding agreement. Progress reports will identify the progress achieved during the reporting period and accompany financial claims. Periodic meetings may be organized with Transport Canada throughout the duration of the agreement period, but these will be confirmed at the agreement negotiation stage.

7.5 Annual Reports

In the case of multi-year projects, the recipient will be required to produce an annual report. This report must include, but not limited to, the following:

  • A detailed description of the project's progress including any technical outcomes and major achievements during the year and an update on how the project is moving forward related to initial objectives;
  • Updated data and reporting on performance indicators, as indicated in the funding agreement;
  • Annual reporting on the recipient’s eligible expenditures, in accordance with the funding agreement budget;
  • Summary of project communications activities during the reporting period, if applicable; and
  • Issues, areas of concern or risk factors that may affect completion, the schedule or the budget of the project, and proposed mitigation strategies.

7.6 Final Report

When the project is complete, recipients will be required to submit a final report. The final report should be the overall roll-up of the information required in the annual reports and verification of all project activities, costs and outcomes. A section must be dedicated to technical outcomes of the project which may be made available for public distribution. Under the funding agreement, Transport Canada must receive the final report prior to final expense claims being paid.

Along with the information required in the final report, recipients must also include an overall assessment and analysis of the project objectives met, outcomes achieved, and lessons learned.

7.7 Financial Claims

Recipients will be provided templates to submit claims that reflect the eligible expenditures as indicated in the funding agreement. Recipients will also be required to submit a list of invoices with each claim.

7.8 Official Languages

All recipients must respect the Official Languages Act (OLA) when delivering a project funded under BWIP. Different linguistic requirements apply to projects depending on their scope (national, regional or local), or their targeted audiences. Transport Canada will work with recipients to determine how the OLA applies to their projects, including compliance options.

8. How to Apply

When submitting a project proposal, applicants mustFootnote 3 include the following:

  1. Title of the project and a brief executive summary
  2. Applicant’s contact information
    1. legal name of the applicant organization
    2. name and position of the primary contact(s) for applicant organization
    3. contact information such as mailing address, office phone numbers, email/Internet address, etc.
  3. Organizational profile
    1. type of organization
    2. organizational structure and governance
    3. mandate of the organization
    4. organizational activities
  4. Project management personnel
    1. name of designated project manager
    2. project manager’s qualifications and experience (e.g., resume)
    3. declarations
      1. conflict of interest questionnaire
      2. declaration by applicant organization attesting to the accuracy of the project proposal and the commitment of the organization to carry out the project signed by an authorized agent
  5. Project description
    1. project objectives, goals and relevance
    2. location of project delivery
    3. proposed start and completion dates
    4. major activities for the project
    5. justification for any funding of the installation or operation of BWMS (if applicable)
    6. project work plan
    7. partners and contributions
    8. risk assessment and mitigation measures
  6. Communication plan
    1. The project proposal must include a plan to disseminate project results to other marine stakeholders (e.g., preparing reports with results that can be published on Transport Canada’s website, participating at Transport Canada-organized workshops/conferences) and through knowledge-sharing meetings with Transport Canada
  7. Letters of financial support. (A letter from each other contributor confirming the support brought towards the proposed project.)
  8. Budget
    1. detailed project costs, by fiscal year, including all cash and in-kind contributions from the public or private sector, clearly broken down by organization.

Important Note: The project proposal template and budget and cash flow template are attached to the invitational email. Please use these templates for your project proposal.

9. Submitting an Application

9.1 Application Deadline

Applications must be received by May 25, 2023 by 13h00 EST.

Note: All project proposals must be signed, complete and accurate. They must also use the templates provided. All applicants must provide legal documentation confirming their organization is a legal entity (for example, using letters of patents, certificates of incorporation or other such legal documents). Missing or incomplete information will slow the processing of the application and may result in its rejection.

Application package must be in MS Word, MS Excel or PDF format. Applications and inquiries concerning the application process must be sent to: BallastWaterProgram-ProgrammeEauDeBallast@tc.gc.ca

Transport Canada will confirm receipt of application packages.

If you have any questions, please contact: BallastWaterProgram-ProgrammeEauDeBallast@tc.gc.ca

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