Guide to understanding Contribution Agreement requirements

The information below defines the key sections of a standard Contribution Agreement used for the Green Freight Program and is being provided for informational purposes only.

The final terms and conditions of any Contribution Agreement will be reviewed with all parties prior to signing.

Claims for reimbursement

The Contribution Agreements (CA) will set out the required terms for payments of NRCan’s contribution. No advance payments will be made through this program.

Claims for payment are submitted quarterly, and through a reimbursement model. These claims must be substantiated by supporting documentation demonstrating that costs were incurred in the respective reporting quarter.

A holdback (a percentage of NRCan’s contribution that is put into a reserve for future disbursement) could be applied to all NRCan payments, which will only be released upon project completion. To ensure appropriate project oversight, an additional percentage of the contribution may be withheld until all conditions of the CA have been met.

Organizations must spend the funding requested of NRCan’s contribution for that fiscal year, and unless a formal request for an amendment is requested, which can move funds between fiscal years, the unused funding cannot be recuperated.

The Canadian federal government fiscal year runs from April 1 to March 31, as follows:

• Q1 is from April 1 - June 30.
• Q2 is from July 1 - September 30.
• Q3 is from October 1 - December 31.
• Q4 is from January 1 - March 31.

Reporting requirements

Once a CA is signed, proponents will be required to submit Quarterly Claim Reports and one Final Report. NRCan will provide the report templates to proponents.

The Quarterly Claims Report is required no later than 30 days following each quarter the CA is signed. This report will require a detailing of project costs incurred and an update on the progress of the project.

The Final Report is due following project completion, in addition to the final Quarterly Claims Report. The submission and NRCan approval of this report will result in the release of the CA stipulated holdback. As part of the Final Report, proponents are required to report on the following metrics for the trucks within their fleet(s) impacted by the project:

• unit numbers and in-service dates;
• metrics on fuel use, kilometres driven, idle time and engine time for 3-5 tractors in your existing fleet to establish a baseline;
• metrics on fuel use, kilometres driven, idle time and engine time for repowered and/or new alternative fuel trucks since the start of the project; and
• information related to fleet investments, maintenance, training and communications.

Note: If a project is selected for funding, it is the applicant’s responsibility to track these metrics over the course of their project.

Audits

Proponents under this program may be audited one or several times either upon project completion or at NRCan’s discretion during the project. Auditors may contact and visit each proponent on site at the beginning of the project to explain the recipient audit process and review project financial controls.

Other terms and conditions

Risk Framework

Once a project is selected for funding, NRCan will conduct a risk assessment of the proponent and its project.

The result of an assessment (risk level) could determine the eligibility for funding and may determine monitoring strategies, for example, monthly progress reports, a higher percentage holdback on payment claims or site inspections.

Any monitoring strategies or requirements resulting from a risk assessment will be outlined in the Contribution Agreement the parties will sign.

Official languages

Applicants are encouraged to communicate with NRCan in the official language of their choice. NRCan reviews and assesses applications and project materials in both official languages.

In all cases, the proponent must publicly acknowledge NRCan’s support for the project in all project-specific communications products. NRCan may request that such acknowledgment include text in both official languages.

Conflict of interest

Current or former public servants or public office holders are required to avoid conflict of interest situations while employed by the federal government, and for a period of time following their service.

The applicant must acknowledge that any individuals who are subject to the provisions of the Conflict of Interest Act, the Values and Ethics Code for the Public Sector, the Conflict of Interest Code for Members of the House of Commons, any applicable federal values and ethics code or any applicable federal policy on conflict of interest and post-employment, shall not derive any direct benefit resulting from this application unless the provision or receipt of such benefit is permitted in such legislation, policy or codes.

Duty to consult

NRCan has a duty to consult with Indigenous groups when a contemplated Crown conduct, such as the provision of funding, may have adverse impact on existing or potential Aboriginal or Treaty rights. By signing and submitting this application, the signatory understands that Canada may withhold the payment or payments until Canada is satisfied that any legal duty to consult with, and where appropriate, to accommodate Indigenous groups has been met and continues to be met to Canada’s satisfaction.

Environmental assessment

Where applicable, projects under the Green Freight Program on Federal lands will be assessed as per the Impact Assessment Act and other applicable legislation prior to funding being released to a proponent.

M-30 Law (for Quebec organization only)

The Act Respecting the Ministère du Conseil exécutif (M-30) may apply to an applicant in the Province of Quebec. Applicants may be required to complete an additional information form and, if they are subject to the requirements of the Act, to obtain written authorization and approval from the Government of Quebec prior to execution of any Contribution Agreement. NRCan will follow-up with the applicant during the application assessment, as required.

Privacy notice

The Access to Information Act (the “Act”) governs the protection and disclosure of information, confidential or otherwise, supplied to a federal government institution. This Act is a law of public order; as such the Government of Canada, including NRCan, cannot contract out of it.

Paragraph 20 (1) (b) of the Act states that: a government institution [such as NRCan] shall refuse to disclose any record requested under the Act that contains financial, commercial, scientific or technical information that is confidential information supplied to a government institution by a third party and is treated consistently in a confidential manner by the third party.

Pursuant to Paragraph 20 (1) (b) of the Act, NRCan will protect the applicant’s confidential information supplied to NRCan from disclosure if:

1. the applicant’s information supplied to NRCan contains financial, commercial, scientific or technical information; and
2. the applicant consistently treats such information in a confidential manner

For more information on this subject, a careful reading of the entire section 20 of the Access to Information Act is strongly encouraged.

Stacking of assistance:

• Applicants are required to disclose all project funding sources, including funding from other federal, provincial/territorial, and municipal governments and industry sources, whether that funding is firm or still in negotiations.
• Total funding from all levels of government (e.g., federal, provincial/territorial and/or municipal) cannot exceed 75% of the total project costs, unless the applicant is a provincial, territorial, or municipal government, or their departments or agencies, or an Indigenous organization, in which case the stacking limit is 100% of project costs.
• The Government of Canada reserves the right to reduce its contribution to the project until the stacking assistance limit is met. If total Canadian government assistance exceeds the limits set out above after the project completion date, Canada reserves the right to recover the excess contribution from the applicant.

Note: The government assistance referred to in these stacking limits does not include loans from governments or Crown agencies. For example, loans to the project from governments or Crown agencies are not included in this calculation; however, if a preferential interest rate were obtained through government loans, the cost savings due to the preferential rate would be included. Clarifications will be provided on a case-by-case basis.

Business information

NRCan may collect, use and share an applicant’s documentation prepared in the administration of the program. NRCan will use and share this information for the purposes of assessing and reviewing the eligibility of the applicant and the proposed project with:

• other NRCan programs and/or branches;
• other departments or agencies of the Government of Canada; and
• other levels of government in Canada.

The information may be shared with the parties mentioned above, or disclosed to third parties, for the purpose of:

• administration, including audit and evaluation of the program;
• surveying the applicant’s experience with NRCan;
• audit, analysis and risk assessment of the applicant and/or the project; or
• determining the possible availability of funding for the applicant’s project under another program or initiative.

NRCan publishes a list of successful projects on Government of Canada websites. This list would include the name of the proponent, the project name, and the amount of the contribution.

NRCan may also publicize this information, along with a description of the project, in:

• project funding announcements or other promotions; and/or
• other government documents, including public reports on the progress of government initiatives.