Frequently asked questions: Toward Net-Zero Homes and Communities (TNZ) program

Eligible Recipients are legal entities incorporated or registered in Canada, including for-profit and not-for-profit organizations such as electricity and gas utilities, companies, industry associations, research associations, Indigenous and community groups, Canadian academic institutions, and provincial, territorial, regional and municipal governments and their departments and agencies.

The program will fund energy-efficiency Projects in the residential sector along three streams:

• Addressing barriers to the adoption of energy-efficient technologies,
• Capacity building in support of net-zero energy ready codes, and
• Facilitating home energy labelling and disclosure to encourage deep energy retrofits.

NRCan will provide funding for creative and innovative Projects that take place in Canada.

Recipients will be reimbursed for eligible expenditures incurred from the date the Recipient is notified of their Project approval to the date that the funding agreement is signed.

Expenditures incurred before the date the Recipient is notified of their Project approval will not be reimbursed.

Yes, GHG emission reduction over the lifecycle of a building is acceptable as long as the project meets the objectives of one of the three streams.

Any technology or process implemented into a project will be considered as long as the project meets the objectives of one of the three streams.

No, any technology, whether it be equipment, work methods, or in another form, will be considered as long as the project meets the objectives of one of the three streams.

Yes, as long as the project meets the objectives of one of the three streams.

• Regional and Municipal governments must provide proof that they have the proper authority to proceed with a project (i.e., approved by-law, Order in Council, or letter of support from appropriate authorities). Ultimately, a document is required that will allow evaluators to verify that a project is able to accept the funds and spend them while also respecting the objectives of the program. In certain cases, that may mean a council resolution or a letter from the treasury or upper-management team.
• Provincial and municipal governments are not required to show proof that there are legal entities. That said, they should provide their documents on official letterhead to demonstrate the official status of the proposal.

Yes, as long as the Applicant is a Canadian entity registered in Canada. The project must also take place in Canada.

If the project addresses at least one the program objectives, aligns with the objectives of one funding stream, and its activities and expenditures are eligible under section 4.2 and 4.3 of the applicant guide, it is eligible. Please also note the ineligible activities and expenditures.

This program focuses on buildings that fall under Part 9 of the National Building Code of Canada.

The program’s total budget envelop is distributed as follows.

Funding will mostly be awarded for 1 or 2-year Projects. Funding for up to 4 years is also available for ambitious Projects that meet multiple objectives  of the program.

TNZ funding is committed through the signing of contribution agreements. The eligible expenditure period begins at the Project Approval notification date and ends at the Project Completion Date or Program End Date, whichever is earlier.

NRCan may fund any number of proposals within the program’s budget limits.

Applicants can combine other sources of funding (federal, provincial, territorial, and municipal incentive) to cover Project costs.
The program will fund

• Up to 100% of total project costs for
  • Provincial, territorial, regional and municipal governments and their departments and agencies where applicable;
  • Indigenous governments or organizations (e.g. band councils, land claim organizations); and,
  • Registered not-for-profit organizations.
• Up to 75% of total project costs for other organizations.

Recipients will be required to submit quarterly payment claims and progress reports to NRCan summarizing Project progress and expenses incurred to be reimbursed for eligible expenditures. Eligible expenditures need to be submitted in accordance with the contribution agreement and during the eligible expenditure period.

Advance payments may be allowed where requested by the Recipient and based on an assessment of their need, risk levels and cash flow requirements.

Eligible expenditures for a Project must be directly related to the implementation and conduct of a Project. They include but are not limited to: salaries and benefits; data collection and contracting services; travel expenditures; advertising, recruitment and training; license, certification, and permits fees; capital expenditures; material, supplies and equipment; facility and equipment rental.

Path 2 of the Application process is reserved for Indigenous organizations. Through this path, a minimum of twenty-five percent (25%) of the program’s total annual funding is set aside for Applicants who meet these groups’ definition. The funds will be distributed as follows:

• Minimum of 10% for First Nations organizations
• Minimum of 10% for Inuit organizations
• Minimum of 5% for Métis organizations

Indigenous organizations may also apply through Path 1 of the Application Process. Funding allocated to Indigenous organizations through Path 1 of the Application Process will not be deducted from the funds allocated in Path 2.

No, this is a separate initiative and not related to other funding programs. The Code Acceleration Fund will be announced at a future date.

Yes, a proposal may expand on an already existing project if the project aligns with the objectives of one of the three streams.

• No future rounds of funding have been announced at this time.
• Other programs offered by Natural Resources Canada may provide funding for your project, such as the Greener Homes Grant.
• Projects in Indigenous, rural and remote communities may also be eligible for residential energy efficiency funding under the Clean Energy for Rural and Remote Communities Program.

Yes, this is possible, but please note we will prioritize projects that can commence during fiscal 2022-2023. Projects are funded according to fiscal years. Fiscal years start on April 1st and finish on March 31st.

There is no funding limit per project. That said, please keep in mind that the Program must stay within its funding parameters and there will be a value for money component to the evaluation process.

No, but funds are likely to be awarded for proposals in each stream.

Eligible Applicants may submit their proposal through 2 different paths:

• Path 1: Eligible Applicants must gather all required documents and submit their complete proposal before the application deadline (September 21^st at 23:59 Pacific Standard Time). All applications will be evaluated using a standard evaluation grid.
  
  Note: Up to 75% of the program’s total annual funds are reserved for this path.
  
  
• Path 2: Reserved for Indigenous organizations.
  
  To participate in this path, Applicants must select “Yes” to the question “Do you wish to submit the Project to Path 2 of the Application Process?” in the Application Form and send the completed form - with all other relevant information - by email at TowardNetZeroHomes-MaisonsNetteZero@nrcan-rncan.gc.ca, or by mail (with an official date stamp).
  
  Path 2 applications are to be submitted after October 5^th at 23:59 Pacific Standard Time.
  
  Eligible organizations may submit their application to both Path 1 and Path 2. Unsuccessful Path 1 Applicants that wish to also take part in Path 2 will be transferred to Path 2 when Path 1 Recipients have been selected.
  
  Note: A minimum of 25% of the total annual funds are reserved for this path.

Path 1

Through Path 1, proposals will be assessed through a 3-step process:

Step 1 — Proposal Eligibility

To be evaluated, each proposal must include

• A completed and signed Application Form;
• A completed budget;
• Letters of support from partners; and,
• Additional supporting documentation.

It must also demonstrate

• The organization’s eligibility for the program; and
• Eligibility of the Project’s activities and expenditures.

Step 2 — Expert Review Committee

An expert review committee comprised of technical experts and subject matter experts from NRCan will evaluate proposals through a tiered approach. They will

1. Conduct an evaluation of the technical components of the proposal; and,
2. If the Project passes the technical evaluation, an overall assessment will be conducted.

Step 3 — Ranking of Proposals

1. Once all Projects are fully evaluated by at least three evaluators, a Central Committee will rank the proposals and recommend Recipients.
2. Based on the ranking, proposals will be selected for funding according to a variety of criteria, including, but not limited to the results of the evaluation, value for money, and regional distribution of the Projects.

After all steps are completed, recommendations are sent to the appropriate authorities for review. Once approved, all Applicants will be informed of the decisions.

Path 2

Through Path 2, proposals will be assessed individually on a first come, first served basis, through a 3-step process:

Step 1 — Proposal Eligibility

To be evaluated, each proposal must include

• A completed and signed Application Form;
• A completed budget;
• Letters of support from partners; and,
• Additional supporting documentation.

It must also demonstrate

• The organization’s eligibility for the program; and
• Eligibility of the Project’s activities and expenditures.

Step 2 — Due Diligence Assessment

Upon the verification of the application’s due diligence, Applicants may be required to provide additional information.

Step 3 — Expert Review Committee

An expert review committee comprised of technical experts and subject matter experts from NRCan will evaluate proposals through a tiered approach. They will

1. Conduct an evaluation of the technical components of the proposal;
2. If the Project passes the technical evaluation, an overall assessment will be conducted; and
3. If the Project is retained, it will be recommended for funding.

After all steps are completed, recommendations are sent to the appropriate authorities for review. Once approved, Applicants will be informed of the decisions.
Note. Funding will be awarded according to a variety of considerations, including evaluation score, budget limitations, and geographical representation. NRCan does not guarantee funding to any Applicant.

1. Click on the following link: Toward net-zero homes and communities
2. Download the Application form. 
3. Complete, date and sign* the Application form
   (*digital signature or photograph of the original signature are accepted).
4. Send Application Form by email* at TowardNetZeroHomes-MaisonsNetteZero@nrcan-rncan.gc.ca or by mail, to the address below.
   
   Natural Resources Canada
   Mailroom Operations
   Sir William Logan Building
   580 Booth St.
   Ottawa, ON
   K1A 0E4
   Attn: Mathieu Samson-Savage
   
   Include all supporting documents in a single communication, including letters from partners, such as letters from Indigenous leadership (if applicable) or other appropriate authorities (if applicable); proof of eligibility; completed budget; and other technical documentation such as equipment specifications and photos.
   
   *Use the subject line: APPLICATION — TOWARD NET-ZERO HOMES AND COMMUNITIES
   
   PROGRAM — PROPOSAL — [Organization Name]

Applicants will receive a written acknowledgement of receipt of their proposal within 5 business days of the receipt of the application.

After the evaluation of the proposals, all Applicants will receive a decision, whether selected or not, by email. Please refer to the “Notifications and service standards” section of the Applicant Guide for more details.

No. Each proposal must be for a single Project.

Yes. Applicants may submit multiple proposals.

No. Each proposal must be directed at only one stream. If unsure of the stream in which the proposal should be submitted, Applicants can email us at TowardNetZeroHomes-MaisonsNetteZero@nrcan-rncan.gc.ca.

Through Path 1, once the deadline has passed, Applicants may no longer submit information or make modifications to their proposals.

Before the deadline, Applicants may replace a previous proposal with a new one.

It is the responsibility of Applicants to make any relevant changes to their proposals. NRCan will not make any changes on behalf of Applicants.

Through Path 2, Projects will undergo a due diligence assessment. Following this assessment, Applicants may be asked for additional information.

Revisions done outside of the due diligence assessment will be treated as a new application.

No, Path 2 is only open to Projects that are led by Indigenous organizations.

Partnerships are not necessary, but they are encouraged if they help reach the objectives of the program and its streams. That said, we are aware that this is not a possibility for all projects.

• To identify the stream that is best suited for your project as a whole, please read the stream annexes and submit the project to the stream that is geared toward the main objective of you project.
• Projects may also be divided and submitted separately to each stream. In this case, please ensure that each part of your project can move forward independently since some proposals may not be funded.

There are no restrictions relating to the number of submissions submitted by one applicant as long as the proposal ideas are distinct from one another. These proposals may be submitted to the same stream or different streams.

• It is recommended that project ideas be fully fleshed out and the entire scope of the project outlined upon submission. We are looking to fund projects that will succeed over the next two to four years based on the amount of funding available.
• A project may require an initial phase to complete a feasibility study, conduct research, or for other eligible activities.

No. Recipients will be selected based on a variety of factors including proposal strength, regional representation, and budget limitations.

Eligible Applicants must be entities that are validly incorporated or registered in Canada. Partnerships with international entities are possible, but they cannot receive funding.

Projects with partnerships must provide documentation describing the role of each partner and a letter of support from each partner.

Partnerships with provincial, territorial, and municipal governments must be documented through letters of support from the appropriate authorities.

Partnerships with Indigenous communities must be documented through letters of support the community leadership.

Yes. For questions, clarifications, or concerns regarding the program, please email TowardNetZeroHomes-MaisonsNetteZero@nrcan-rncan.gc.ca. For questions on Project eligibility, please provide a summary of the Project and specific questions. We will do our best to provide you with guidance on how to move forward.

We aim to respond to all email inquiries within 5 business days.

Indigenous organizations may be Indigenous communities and governments, Tribal Councils, National or regional Indigenous councils, Tribal organizations, and a majority owned and controlled for-profit or not-for-profit organizations. The latter groups should be able to document Indigenous leadership.

Legal entities or organizations should be able to demonstrate, upon request, that they are recognized by Indigenous peoples — through the Indigenous Business Directory*, the Canadian Council for Aboriginal business (CCAB)**, or other registries.

*Indigenous Business Directory: Detailed company search - Indigenous Business Directory

**CCAB: CCAB » Certified Aboriginal Business (CAB)

The priority is energy efficiency of residential homes. That said, GHG emission reduction is a significant asset.

Innovation to accelerate labelling and disclosure practices that will encourage deep energy retrofits. While the ERS, energy advisors, and HOT2000 can be a component of a project, they are not required components. Other ideas will also be considered.

If your project extends beyond the 2 years these tables allow, please reach out to the program team at TowardNetZeroHomes-MaisonsNetteZero@nrcan-rncan.gc.ca to obtain an Excel version of the tables.