Green Shipping Corridor Program Clean Vessel Demonstration Stream – Grant Applicant’s Guide

This Application Guide is specifically for the Clean Vessel Demonstration Stream - Grant. Further details about the application and evaluation process are included in subsequent sections.

Application period

Current Status: Closed.

Deadline: January 22, 2024, at 11:59 pm PACIFIC standard time.

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Purpose

This Applicant’s Guide explains the objectives, requirements, and process for applying to the Green Shipping Corridor Program’s Clean Vessel Demonstration Stream - Grant, including what is needed in your funding application.

Mandatory Eligibility Requirements

To be eligible for Clean Vessel Demonstration Stream grant funding, the following criteria must be satisfied.

Eligible Recipients 

Eligible recipients must be vessel owners and/or operators registered in Canada and one of the following:

  • Provinces and territories, including provincial- and territorially owned transportation entities
  • Municipalities, including municipally owned entities, and local and regional governments 
  • Indigenous governmentsFootnote 1, tribal councils and other forms of regional government, nationally or regionally representative Indigenous organizations, and/or Indigenous development corporations
  • Public sector organizationsFootnote 2
  • For profit or not-for-profit private sector organizations
  • Canada Port Authorities

Eligible Activities

The Clean Vessel Demonstration Stream will provide funding in the form of grants where the primary objective of the proposal is intended to advance the domestic marine industry’s knowledge and capacity to transition their vessels to low carbon and/or zero emission ship technology and marine fuels. The following types of projects are eligible for grant funding:

  • research, engineering, or feasibility studies that are necessary to determine the viability of (or to support the design of) a vessel demonstration project or elements of a vessel demonstration project, before undertaking any physical works or testing
  • safety assessments that are used to determine risks/hazards/challenges, including mitigation measures needed to address barriers related to the deployment of low carbon and/or zero emission ship technology and marine fuels for use on vessels
  • development of safety codes and standards to facilitate the adoption of low carbon and/or zero emission ship technology and marine fuels for use on vessels

Low carbon and/or zero-emission ship technology and marine fuels proposed for research, safety assessments or development of codes must be one or more of the following: 1) low carbon biofuel, 2) battery electric, 3) plug-in hybrid, 4) fuel cell (different types), 5) methanol, 6) ammonia, 7) wind/solar, or any other innovation deemed meritorious by the Minister or delegated authority.

In addition to the above, the project must target commercial vessels greater than 150 Gross Tons and be either Canadian-flagged or be operated predominately in Canadian waters by a Canadian entity (as defined in the list of eligible recipients).

Merit Evaluation Criteria

Once Transport Canada has confirmed that your proposal satisfies the above mandatory eligibility criteria for grant funding, the department will proceed to evaluate the individual merits of your grant proposal using the criteria listed in the table below.

Merit Criteria Characteristics of a Strong Proposal

Criterion 1: The degree to which the proposal addresses key knowledge gaps pertinent to the broader marine sector, specifically with respect to the adoption of new or emerging technologies

1) Assessment based on:

how the project will support the vessel demonstration of low and/or zero emission fuels/technologies in Canada

A strong project will:  

  1. demonstrate clearly how the outcomes of the proposed eligibility activity will support vessel demonstration of low and/or zero emission fuels/technologies in Canada

2) Assessment based on:

how the project facilitates the organization and the Canadian marine industry's to transition and/or deployment low and/or zero-emission fuels/technologies

A strong project will:

  1. inform the deployment the low and/or zero-emission fuel/technology across the fleet
  2. accelerate the momentum of the Canadian marine industry in the implementation of low and/or zero-emission fuel/technology

3) Assessment based on:

how effectively the proposal identifies the knowledge gap(s) and interventions and/or solutions to address the knowledge gap(s)

A strong project will:

  1. clearly identify the current readiness state and knowledge gap(s) of the proposed low and/or zero emission fuels/technologies in Canada
  2. provide an effective solution(s) to known knowledge gap(s) that are impeding the Canadian marine sector from adopting low and/or zero-emission fuels/technologies in Canada
  3. provide an effective solution(s) where no similar solution exists in the Canadian context for the adoption of low and/or zero-emission fuels/technologies

4) Assessment based on:

how the project will advance technology development, knowledge generation, or practices that can be used by other Canadian marine stakeholders 

A strong project will:

  1. clearly demonstrate how results will be broadly disseminated to the public, and clearly identify the target audience, including all vested parties of the proposed project, and the Canadian marine sector
  2. clearly identify the expected outreach as well as the diversity of media and channels used to share the information (for example, number of website users, recipients of mail-out materials, number of participants at a workshop, etc.)
  3. promote and encourage collaboration and information sharing, contributing to the objectives of the program

Criterion 2: The applicant’s relevant experience and capacity to undertake the proposed project successfully

1) Assessment based on:

how well the applicant has demonstrated their experience and capacity to undertake the proposed project successfully

A strong project will:

  1. be supported by the applicant's track record of successful project delivery for similar types of projects (that is, one or more projects successfully completed)
  2. be supported by a highly qualified project team with relevant expertise and experience (that is, project team with educational credentials relevant to the project, at least one team member with experience working on similar types of projects)
  3. be led by an excellent governance/management/organizational structure

Criterion 3: The proposal outlines clear timelines to demonstrates readiness to implement the project as planned.

1) Assessment based on:

how clearly the proposal outlines timelines to demonstrate readiness to implement the project as planned

A strong proposal will:

  1. clearly list the key activities, phases, timelines to allow the project to be completed

Note: When funding is provided in the form of grants, the objectives and scope of the project must continue to inform and address key knowledge gaps pertinent to the broader marine sector, specifically with respect to the adoption of new or emerging low carbon and zero emission ship technology and marine fuels over the duration of the agreement to provide certainty that the grant funding will be used for the purposes for which it was approved.

Application and Evaluation Process

Submitting a funding application

All funding applications seeking grant funding must be developed using the provided in Short Grant Form and once completed, must be signed by an individual who is authorized by the organization to make the representations included in the proposal. In addition, the applicant must also submit a budget using the provided Budget template for Grants.

Missing or incomplete information will slow the review of the application, and/or may result in its rejection.

Funding applications requesting grant funding from the Clean Vessel Demonstration Stream must be submitted by email in PDF to GSCprogram-ProgrammeCMV@tc.gc.ca and must be received by Transport Canada before 11:59 pm PACIFIC standard time on January 22, 2024.

Notes:

  • We will not accept any funding application submitted in a different format and/or received after the above noted time and date
  • Applicants may be requested to clarify or provide additional information that Transport Canada deems necessary to assess eligibility and support the evaluation process
  • If a project is selected for funding, the recipient signed Application Form, along with its associated Terms and Conditions, will serve as the grant agreement

Short Grant Form
(PDF, 768 KB)

 

The evaluation process

Upon receipt of the funding application, Transport Canada will review the proposal to ensure that all required information has been submitted and to determine whether the proposal satisfies the Mandatory Eligibility Requirements.

  • If not complete, Transport Canada will provide the applicant 5 business days to provide the missing information
  • If unable to provide the information within 5 business days, the applicant will be advised whether their application will be considered for funding
  • Once deemed complete by Transport Canada, a notice confirming that the department has received a complete proposal will be sent to the applicant

If deemed by Transport Canada to satisfy the mandatory eligibility requirements, the proposal will be evaluated to assess the individual merits of the proposal and ranked accordingly using the Merit Evaluation Criteria. Funding recommendations will be formulated by a Transport Canada committee for consideration and final decision by the Minister of Transport and/or delegated representative.

Notification of results of evaluation process and next steps

Following decision by the Minister or delegated authority, notifications will be sent to all applicants to inform whether their application was selected or not selected for funding.

If a project is selected for funding, the recipient will receive an approval letter specifying the granted amount for the project. It is important to note that this amount may differ from the amount requested in the grant application form.

The Application Form, along with its associated Terms and Conditions, will serve as the grant agreement, establishing the binding commitment between Transport Canada and the recipient.

Terms and conditions related to funding

The maximum amount payable in the form of grants per project through the Clean Vessel Demonstration Stream will not exceed $125,000 or based on a percentage of up to 50% of the total cost of eligible activities submitted by the recipient in the funding proposal, whichever is less.

Upon the decision communicated in the approval letter, Transport Canada will disburse the approved amount in one or two payments at its discretion. The department may require a performance reporting prior to the project's scheduled completion date, as well as mandate an Attestation of work completed at the project's conclusion.

Other information requirements

Funding to be further distributed

Grant funding cannot be further distributed to other persons or entities.

Intellectual Property Rights

Any intellectual property derived from an eligible project produced by the recipient or third party in carrying out the obligations under the funding agreement will vest in and remain the property of the recipient or third party. A related clause may be included in the funding agreement.

Where Transport Canada considers it desirable, Transport Canada may seek a restricted license to any intellectual property rights developed by the recipient or third party where Transport Canada considers it necessary for the public good.

Eligible and Ineligible Expenditures

Eligible expenditures

Eligible expenditures must be directly related to the project, and be both reasonable and required, as determined by the Minister or delegate to achieve the objectives and results for which the project was approved, including: 

  • staff salaries and benefits (such as wages; employer’s portion of: Employment Insurance, Canada Pension Plan/Quebec Pension Plan, and disability insurance; private insurance; and benefits paid to staff working on the project)
  • professional fees for contracted services (for example: accounting, audit, communications services, feasibility studies)
  • storage and warehousing fees
  • communication and translation costs
  • expenditures related to data analysis, monitoring, collection as well as data validation services
  • expenditures related to design, development, preparation, construction, installation, deployment, demonstration, and testing (for example, refueling/charging infrastructure, and port equipment)
  • discounted harbour dues or other financial incentives for ships that reduce their emissions or other environmental impacts
  • purchase of low carbon intensity fuels
  • training costs (for example, related to new technologies, equipment, software)
  • licenses and permits
  • rents, leases, leasehold improvements, and related insurance costs
  • administrative expenditures (including general administration expenditures, rent, insurance, office equipment rental, and membership fees (no more than 15% of Transport Canada's total contribution for the project)
  • travel expenditures (including the costs of accommodations, vehicle rental and kilometric rates, bus, train, airplane or taxi fares, allowances for meals and incidentals-in accordance on the rates and allowances of the Travel Directive of the National Joint Council)
  • expenditures for Indigenous consultations, specifically project-related consultation activities pursuant to the Crown’s legal duty to consult, which may include expenditures associated with meetings, travel costs, expenditures related to the preparation of consultation materials, professional fees, communication and translation costs, and administrative expenditures (travel expenditures to be in accordance with the Travel Directive of the National Joint Council)
  • other expenditures not included in the categories above, as identified in the application for funding approved by the Minister or their delegated representative, that are directly related to the project and required to achieve the objectives and results of the Program

The above eligible expenditures may, in certain circumstances, include cash-equivalent expenditures associated with in-kind contributions. These 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. While donations are eligible cash-equivalent expenditures that may form a portion of the total project cost, they will not be eligible for reimbursement as the recipient incurs no cost to obtain the good, service or asset. However, donations may form part of the recipient’s share of the total eligible expenditures for a project

In-Kind contributions shall be measured/appraised at fair market value, must be approved in advance by Canada and reflected in the contribution agreement.

Costs incurred after project approval date and before project completion date are eligible.

Ineligible Expenditures

The following are examples of funding that are not eligible for funding:

  • expenditures for Provincial Sales Tax and Goods and Services Tax, or the Harmonized Sales Tax, where applicable, for which the recipient is eligible for a rebate, and any other costs eligible for rebates
  • the cost of purchasing land and/or buildings, including associated real estate and other fees
  • financing charges and interest payments on loans
  • expenditures which have been reimbursed under other federal statutes or programs

For more information

Questions to inquiries by applicants are being responded to by way of email. If you would like to be added to the distribution list for this program, please email gscprogram-programmecmv@tc.gc.ca.

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