Methane Measurement and Mitigation – Applicant Guide

Table of Contents

• 1. Objectives
• 1.1 Office of Energy Research and Development
• 1.2 Energy Innovation Program – Methane Measurement and Mitigation Call for Proposals
• 1.3 Objectives
• 2. Eligible recipients
• 3. Eligible projects
• 4. Funding and support
• 4.1 Contributions
• 4.2 In-kind contributions
• 4.3 Collaboration with Federal Laboratories
• 5. Eligible, ineligible, and non-permissible expenditures
• 5.1 Eligible expenditures
• 5.2 Ineligible expenditures
• 5.3 Non-permissible expenditures
• 6. Application process
• 6.1 How to apply
• 6.2 Next steps and timelines
• 7. Reporting requirements
• 7.1 Outcome reporting
• 7.2 On a regular basis
• 7.3 At the end of the project
• 7.4 For a period of 5 years following the end of the project
• 7.5 Non-repayable contributions
• 7.6 Other terms and conditions
• 8. Regulatory, reporting, and other requirements 14
• 8.1 Inclusion, diversity, equity, and accessibility (IDEA) workplaces and policies
• 8.2 Duty to consult
• 8.3 Impact Assessment Act
• 8.4 Information sharing permissions .
• 8.5 The Clean Growth Hub
• 8.6 Trusted Partners
• 8.7 Contact us
• 8.8 Other conditions
• 8.9 Confidentiality and security of information
• 9. Disclaimer
• Appendix A - Definitions
• Appendix B - Technology readiness levels
• Appendix C - In-kind contributions – costing memorandum
• Purpose, definitions, eligibility, and value
• Categories of eligible in-kind support
• Appendix D - Eligible expenditures – costing memorandum
• Salaries and benefits
• Professional, technical, and scientific contracting services
• Travel, meals and accommodation costs
• Capital expenditures
• Other expenses
• Appendix E - EOI Evaluated Questions
• Focus area 1: Measurement, Reporting, and Verification
• Focus area 2: Mitigation of Methane Slip

1.1 Office of Energy Research and Development

The Office of Energy Research and Development (OERD) leads the Government of Canada’s efforts in delivering energy research, development, and demonstration (RD&D) funding, accelerating efforts in energy innovation and cleantech programming. With a focus on influencing the pace and direction of energy system transformation, OERD targets the most impactful technologies to maximize environmental and economic outcomes. Leveraging over forty years of experience and unique science and technology expertise, OERD invests in key federal departments and agencies to undertake energy RD&D, as well as a wide range of Canadian small and medium enterprises, utilities, industry, and other firms, all in support of Canada’s energy innovation and climate change goals. 

1.2 Energy Innovation Program –  Methane Measurement and Mitigation Call for Proposals

Methane accounts for 14% of Canada’s greenhouse gas emissions on a CO₂-equivalent basis, and reducing methane emissions is widely recognized as one of the most effective ways to limit near term warming. The oil and gas sector accounts for 41% of methane emissions, with other key sources being agriculture (31%) and waste/landfills (20%) in 2021. Globally, reducing methane emissions from the oil and gas sector is one of the lowest-cost GHG reduction opportunities, partly because conserved methane gas is a marketable product and can be sold as fuel (natural gas). Canada has set ambitious targets to quickly reduce methane emissions, including signing the Global Methane Pledge at COP26 and introducing strengthened methane regulations to achieve at least a 75% reduction of oil and gas methane emissions below 2012 levels by 2030.

As a recognized world leader in technologies, regulations, and international reporting on anthropogenic methane emissions, Canada is uniquely positioned to expand its climate leadership in this space. Canadian universities, federal laboratories, clean technology companies, and industry have proven global leadership in the approaches to detect and quantify methane emissions on global and regional or urban/facility scales, as well as the technologies to avoid and reduce emissions. Continued development of measurement approaches and mitigation technologies is required to continue to improve emissions measurements, reduce uncertainties, and inform clean technology innovation, evaluation, and deployment. The International Energy Agency recently underscored the need for accelerated action on abatement, having identified substantial under-reporting by national governments of emissions from the energy sector amounting to 70%, globally. In Canada, recent measurement-based (top-down) studies have demonstrated that emissions-factor-based (bottom-up) inventories under-estimate methane emissions from the oil and gas industry by between 25-90%.

This funding call, in support of Canada’s Methane Centre of Excellence, responds to the urgent need to reduce methane emissions in this decade, alongside deep cuts in CO₂, to achieve the Paris Agreement goal of limiting global temperature increases to 1.5^oC above pre-industrial levels. It will invest in Canadian expertise to accelerate development of more effective knowledge and technologies for methane measurement, reporting, and verification (MRV), as well as the mitigation or elimination of methane emissions in Canada. The call has two focus areas: 1: Measurement, Reporting and Verification (MRV) and 2: Mitigation of Methane Slip.

1.3 Objectives

Focus area 1: Measurement, Reporting and Verification (MRV)

This focus area aims to:

• Improve the accuracy of detection, quantification, and localization of methane emissions in the oil and gas sector for effective design of mitigation solutions;
• Reduce uncertainties in methane emissions measurement and quantification;
• Improve methods for the integration and/or standardization of multi-scale methane emissions data collected from different technologies for effective monitoring; and
• Advance approaches for the timely reporting of emissions data to track the performance of producers’ emission reduction initiatives and provide actionable information to stakeholders.

Focus area 2: Mitigation of Methane Slip

This focus area aims to:

• Advance technologies that can be deployed at scale in the near term to mitigate fugitive unburned methane (methane slip) from non-mobile combustion engines and related stationary systems in the energy sector.

Eligible Canadian recipients will be:

1. Legal entities validly incorporated or registered in Canada including:
   • For profit and not for profit organizations;
   • Community groups; or
   • Canadian academic institutions.


2. Provincial, territorial, regional and municipal governments and their departments and agencies where applicable.


3. Indigenous:
   • Indigenous communities or governments;
   • Tribal Councils or entities that fulfill a similar function (e.g., general council);
   • National and regional Indigenous councils, and tribal organizations; or
   • Indigenous (majority owned and controlled by Indigenous people) for-profit and not-for-profit organizations.

For the purposes of this Applicant Guide, the term "Indigenous" is understood to include Inuit, Métis, First Nation, Status Indian and non-Status Indian individuals, or any combination thereof.

The call for proposals is open to projects focussed on the development and demonstration of technologies and related scientific activities. Technology development projects must start at a Technology Readiness Level (TRL) of 5-8, and be ready for field trials and/or demonstration to generate immediate impact on methane emission measurement and/or mitigation. Related scientific activities such as measurement or verification approaches or frameworks must be able to describe potential for impact.

Focus area 1: Measurement, Reporting and Verification (MRV)

Under focus area 1, the call will support energy innovation projects that advance technologies and approaches for the detection, measurement, and quantification of methane emissions in the Canadian oil and gas sector.

Projects targeting methane emissions from the oil and gas sector are the priority for funding. The potential for the cross-cutting application of tools and/or knowledge into other emitting sectors such as the landfill or agriculture sectors will be considered as co-benefits. Proposals with applications in other emitting sectors may be submitted but will need to demonstrate strong alignment to clean energy production (i.e., renewable natural gas, in addition to methane emission reduction).

The following table presents eligible activity types and examples of potential projects associated with the activity types. Please note that projects may make use of a combination of activity types.

*Projects are not limited to the examples above and no preference will be given to projects in these example areas relative to others that address the evaluation criteria for the call.

Projects with strong open and/or analytic sharing protocols of data, outputs, and/or tools with key stakeholders (e.g., industry, academia, governments) and/or public will be preferred and will be evaluated as part of the selection criteria.

Focus area 2: Mitigation of Methane Slip

Under focus area 2, the call will support energy innovation projects that advance technologies to efficiently reduce or eliminate fugitive unburned methane (methane slip) from non-mobile combustion engines and related stationary systems in the energy sector. To advance the technologies to be deployed at scale in the near term to support 2030 goals and beyond, projects must have a starting TRL between 5 and 8 (see descriptions in Appendix B - Technology readiness levels).

The following table presents eligible activity types and examples of potential projects associated with the activity types. Please note that projects may make use of a combination of various activity types.

*Projects are not limited to the examples above and no preference will be given to projects in these example areas relative to others that address the evaluation criteria for the call.

Collaboration and leveraging with non-government sources are strongly encouraged for projects in focus area 2, and these will be included in the selection criteria.

4.1 Contributions

The minimum contribution, maximum contribution, maximum government stacking percentage, and project length are outlined in the table below:

Total Project Cost refers to the total cost of the project and includes both Eligible Expenditures (defined in section 5.1) and Ineligible Expenditures (defined in section 5.2). (Total Project Cost) = (Eligible Expenditures) + (Ineligible Expenditures). Total project cost does not include non-permissible expenditures (defined in section 5.3). 

Maximum Contribution Percentage (% of Total Project Cost) refers to the maximum percentage of funding provided by the Energy Innovation Program for total project cost (cannot exceed the Maximum Contribution). The balance is to be leveraged and funded by the Recipient. 

Minimum Contribution refers to the minimum amount of funding provided by the Energy Innovation Program for total project costs and must also align with the contribution percentage limitations. 

Maximum Contribution refers to the maximum amount of funding provided the Energy Innovation Program for total project costs and must also align with the contribution percentage limitations. 

Maximum Government Stacking Percentage (% of Total Eligible Expenditures) refers to the maximum level of total Canadian government funding (stacking) authorized by this call. Prior to signing contribution agreements, a Recipient will be required to disclose all anticipated sources (Canadian and non-Canadian) of funding for the proposed project, including approved in-kind funding, clearly identifying contributions from other Canadian government sources (federal, provincial, territorial, and municipal). This stacking limit must be respected when assistance is provided. In the event that actual Total Government Assistance to a Recipient exceeds the eligible expenditures, Natural Resources Canada (NRCan) will adjust its level of contribution (and seek reimbursement, if necessary) so that the stacking limit is not exceeded. Eligible expenditures are defined in section 5.1. Note that other programs may have different stacking limits for federal funding, and it is the responsibility of the applicant to ensure that they are within the eligible range for their project across all funding programs they apply to.

4.2 In-kind contributions

In-kind contribution means a cash-equivalent contribution in the form of an asset for which no cash is exchanged but that is essential to the project and that would have to be purchased by the project proponent on the open market, or through negotiation with the provider, if it were not provided by the project proponent.  

The call for proposals accepts in-kind contributions (defined in Appendix C - In-kind Contributions – Costing Memorandum) as part of Total Project Costs, subject to the definitions and limitations described in Appendix C. As per section 5.2 - Ineligible Expenditures, in-kind support is ineligible for reimbursement. 

4.3 Collaboration with Federal Laboratories

Canadian federal laboratories have also been advancing measurement, reporting, and verification (MRV) knowledge in key areas such as air emissions characterization, quantification of storage tanks emissions and flaring. Projects in collaboration with federal laboratories are eligible but preference will not be given on the basis of federal participation. Projects will be required to clearly articulate in the application how the collaboration will address specific technical R&D challenges and ensure relevancy and alignment between industry and federal interests. The roles and responsibilities of the parties and the terms of the collaborator’s participation in the project must be clearly identified and may require a separate agreement.

5.1 Eligible expenditures

Eligible Expenditures for an approved project must be directly related to, and necessary for, the implementation and conduct of a project and will include:

• Salaries and benefits for employees on the payroll of the Recipient for the actual time spent by the employees on the project;
• Training and workshops;
• Professional, scientific, technical, and contracting services;
• Travel expenditures, including meals and accommodation, based on National Joint Council Rates, adjusted to reflect costs in Northern and remote areas, where appropriate;
• Capital expenditures such as the purchase, installation, testing and commissioning of qualifying equipment, materials and products, including diagnostic, testing tools and instruments, and original equipment manufacturer equipment warranty (including extended warranties where deemed appropriate to mitigate risk and lack of capacity);
• Other expenses including:
  • Laboratory and field supplies, and materials;
  • Printing services and translation;
  • Data collection services, including processing, analysis and management;
  • Facility costs for seminars, conference room rentals etc.;
  • Construction Insurance;
  • Accreditation;
  • License fees and permits;
  • Honoraria;
  • Training; and
  • Field testing services;
• Overhead expenditures, provided they are directly related to the conduct of the project and can be attributed to it. Overhead expenditures can be included in the total project costs to a maximum of 15% of eligible expenditures. Overhead expenditures include:
  • Administrative and corporate support provided directly to the project by the Recipient's employee(s), valued on the same basis as professional staff time;
  • Routine laboratory and field equipment maintenance, based on the actual expenditure to a Recipient;
  • Office operating expenses directly related to the conduct of the project (e.g., faxes, telephone, photocopies, internet, SAT phones, and office equipment);
  • Costs associated with further distribution of funding.
  • A predetermined overhead percentage (based on evidence provided by the recipient of expected overhead expenditures at the time of contribution agreement negotiation), may be set and subsequently applied to each claim, in order to avoid unnecessary administrative burden to funding recipients;
• GST, PST or HST, net of any tax rebate to which the Recipient is entitled.

Eligible project expenditures can begin once the applicant has been notified in writing by NRCan that the project has been selected for funding under the Program. However, note that the retroactivity period and the amount that can be claimed retroactively are subject to restrictions which will be communicated to selected applicants.

Prior to signing contribution agreements, on an annual basis, and upon project completion, proponents will be required to disclose all sources of funding on individual projects. This includes contributions from other federal, provincial, territorial, and municipal governments and industry sources.

Further details are described in Appendix D - Eligible expenditures – costing memorandum.

5.2 Ineligible expenditures

Costs ineligible for reimbursement from the Program (but permitted as part of the proponent’s contribution to the total project costs) will include:

• All costs incurred within the Total Project Cost period but outside the Eligible Expenditure Period are considered as ineligible expenditures;
• Overhead expenses exceeding 15% of Eligible Expenditures, may be included as ineligible expenditures and count towards the proponent’s portion of the total project costs provided that the sum of overhead expenses (Eligible plus Ineligible) does not exceed 15% of the Total Project Costs;
• The reimbursable portion of Federal and Provincial Taxes; and
• In-kind costs.

From time to time, the Program may determine that some of the proponent’s project costs will not be eligible for reimbursement, but may be included towards the proponent’s contribution to the total project costs. These costs will be considered ineligible expenditures, and will be shown in the Ineligible Expenditures section of the budget. The Program will provide guidance to the proponent as required.

5.3 Non-permissible expenditures

Expenditures ineligible either for reimbursement or for inclusion as part of the total project costs (non- permissible costs) will be listed in the application materials. At minimum, the following costs are considered non-permissible:

• Purchase of land.

6.1 How to apply

The call’s project selection process has two phases:

• Expression of Interest (EOI) phase, open to all eligible applicants
• Full Project Proposal (FPP) phase, open to invited applicants only

To apply, applicants must complete and submit their Expression of Interest (EOI) via the application portal by 6 p.m. ET on April 17, 2024. The questions that will be evaluated at the EOI stage are included in Appendix E of this guide as reference.

Applicants are responsible for ensuring that they meet the eligibility criteria and that their EOI is fully completed and successfully submitted by the deadline.

NRCan reserves the right to apply the following additional criteria when selecting projects at the EOI and FPP stages:

• Projects that support departmental priorities such as regional balance in Canada, advancing Inclusivity, Diversity, Equity, and Accessibility (IDEA) in the natural resources sector, and socio-economic considerations; and
• Projects that provide a balance across activity types.

CLICK HERE TO ACCESS THE APPLICANT PORTAL

6.2 Next steps and timelines

6.2.1 Full project proposal phase

NRCan will notify the applicants who are invited to the FPP phase and send them information on the FPP timelines and submission requirements.

Applicants must provide all mandatory information to be considered for funding. An invitation to the FPP phase does not represent a funding commitment from NRCan.

NRCan may request supplementary information at various points in the review process.

6.2.2 Due diligence assessment

All applicants selected for funding will undergo a due diligence assessment, which will include four main components: financial, technical, legal and regulatory due diligence. Selected applicants will have two months to fulfill all due diligence requirements. Note that if regulatory obligations are triggered, more time would be required to complete the due diligence assessment.

As part of financial due diligence, selected applicants will be asked to complete a detailed budget and statement of work template which will be thoroughly assessed by the assigned NRCan project team. Applicants may also be selected by NRCan for a 3rd party financial audit or be asked to provide their three major financial statements (Cash Flow, Income & Balance Sheet) to evaluate the organization’s financial health. Applicants will be asked to provide documentation to support budget estimates.

Technical due diligence will be assessed by reviewing the applicant’s detailed budget and statement of work template. A panel of science and technology advisors will evaluate project complexity, feasibility and timelines.

Applicants will be asked to provide legal proof of registration in Canada as part of the legal due diligence. Within the detailed budget and statement of work, there are sections dedicated to permits and conflict of interest, which are also part of the legal due diligence performed by NRCan.

Regulatory due diligence encompasses obligations under the Impact Assessment Act and the legal duty to consult with Indigenous peoples set out in section 35 of the Constitution Act, 1982. During the due diligence phase, NRCan must assess any regulatory obligations it may have for each project and complete all federal requirements related to these Acts before funding can be disbursed. As per sections 82 and 83 of the Impact Assessment Act, NRCan must not provide financial assistance for a project to be carried out, in whole or in part, on federal lands/outside Canada, unless the project is not likely to cause significant adverse environmental. As per section 35 of the Constitution Act, 1982 Canada has a legal duty to consult with Indigenous peoples when contemplating funding a third party to carry out a project that might adversely impact potential or established Aboriginal or treaty rights. NRCan is responsible to evaluate each project to understand how and when a project could adversely impact these rights. The full project proposal, detailed budget, and statement of work template contain questions and information that are specifically used to assess NRCan’s regulatory obligations and will help inform how to fulfill this requirement.

Applicants undergoing due diligence will be notified whether their project passes the due diligence assessment. Applicants whose projects pass the due diligence assessment will be invited to work with NRCan to draft, sign, and execute a contribution agreement.

6.2.3 Contribution agreement

Any funding under the call will be contingent upon the execution of a contribution agreement. Until a written contribution agreement is signed by both parties, no commitment or obligation exists on the part of NRCan to make a financial contribution to any project, including any expenditure incurred or paid prior to the signing of such contribution agreement.

More information on NRCan contribution agreements will be made available to successful applicants following notification of the proposal results.

6.2.4 Timelines

The following timelines are anticipated for the call. NRCan, at its sole discretion, reserves the right to modify these anticipated timelines.

6.2.5 Service standards

NRCan maintains a suite of service standards on the expected timelines for each phase of program delivery. The service standards for NRCan’s programs are available at the following link: https://natural-resources.canada.ca/transparency/reporting-and-accountability/plans-and-performance-reports/natural-resources-canadas-service-standards-for-transfer-payment-programs/22265.

7.1 Outcome reporting

After entering into a contribution agreement with NRCan, proponents of successfully funded projects will be required to report on a quarterly and yearly basis to ensure that targets and objectives are being met.

As some outcomes may only be realized after funding has ended, ongoing data collection and assessment will be required for a period of five years following the project’s completion date.

The frequency of reporting will be determined based on the risk of the recipient/project as established by the departmental risk management model but will include, at a minimum, annual reporting.

The reporting requirements for Recipients will be as follows:

7.2 On a regular basis

• A financial report signed by the Chief Financial Officer or Duly Authorized Officer of the organization which outlines eligible expenditures incurred;
• A project cash flow statement and/or budget;
• A report using a template supplied by NRCan that shall provide a status of activities in sufficient detail to allow progress to be evaluated and periodic tracking of performance indicators. The report should identify any concerns that NRCan should be made aware of, and explain how they are being addressed.

7.3 At the end of the project

It will be considered to be the 'end of the project' once the final (if more than one) reporting, as outlined in the contribution agreement, has been completed to the satisfaction of NRCan. Reports may include:

• A financial declaration as to the total amount of contributions or payments received from other sources in respect of the Project;
• A financial declaration as to the total amount of Canadian government funding received in respect of the Project;
• A project completion report to describe how project activities have contributed to the achievement of the objectives of the project, which may include confidential information for internal government use only, including:
  • A review of the results of the project in comparison to the original deliverables and work plan, with explanations of any deviations;
  • A review of the project's performance measures to describe the benefits that have or will accrue as a result of the project including energy efficiency, environmental impact, costs and paybacks, and any other appropriate measures such as productivity and quality improvements;
  • A description of the Recipient's knowledge dissemination activities and/or tech transfer activities (where applicable); and
  • A final project cost table.
• A public report*that describes the project and its results, which may be translated by NRCan and be made available to the Recipient for public dissemination by the Recipient and/or NRCan; and
• Where applicable, copies of any non-proprietary reports requested by NRCan arising from and prepared during the course of the project.

* Alternative means of public reporting that are more context and culturally appropriate may be substituted for Indigenous recipients.

7.4 For a period of 5 years following the end of the project

Annually, an updated Outcomes Report, using a template supplied by NRCan, to report on short term, intermediate term, and, to the extent possible, long-term outcomes. Regular communication between NRCan and the Recipients will be established to monitor progress.

7.5 Non-repayable contributions

Contributions under these programs will be non-repayable, as they will be for pre-commercial (Technology Readiness Level 1-9) activities and the benefits from the contribution will be accrued broadly rather than to the recipient. The projects being supported under these programs are pre-commercial in nature and thus not anticipated to generate revenues as the technologies require further adaptation, improvements, and de-risking to be commercially profitable.

This is in accordance with the Directive on Transfer Payments, Appendix E, Section E-15, which permits non-repayable contributions under such circumstances when "the benefits from the contribution accrue broadly rather than to the recipient". The benefits of these contributions will accrue broadly: the environmental benefits will include more efficient energy usage, increased renewable energy production, reduced impacts on air, water, and soil, among others, and these environmental goods will benefit Canadians as a whole. In the long term, the competitive benefits resulting from the program will also result in more sustainable employment. And economic development opportunities for Canadians, including Indigenous communities, in the natural resource sectors. Primary activities are also intended to provide input into policies, codes, standards, and regulations while enabling the transfer of knowledge and building of capacity through implementing green technologies in Canada. This is of particular importance in Canada's remote communities.

7.6 Other terms and conditions

Approved projects may be subject to one or more external audits (recipient audits) to ensure that the terms of the contribution are respected. The requirements for recipient audits will be determined on a risk-based assessment on a project-by-project basis. This process is described in the Performance Measurement and Risk Strategy for the Program.

The conditions related to the disposition of assets acquired by the Recipient with funding provided by NRCan shall be identified in the contribution agreement.

8.1 Inclusion, diversity, equity, and accessibility (IDEA) workplaces and policies

NRCan recognizes the importance of a diverse and inclusive workforce for the resilience of Canada’s economy and the benefit of Canadian society. To better understand applicants’ approaches to creating more equitable and inclusive workplaces and policies, NRCan is collecting voluntary information that will be aggregated and anonymous. This information will be used to inform future outreach, program development, and efforts to promote IDEA in the clean energy sector.

As the sections on IDEA are voluntary, responses will not be evaluated or scored as part of the application, but may considered during the selection process at the EOI and FPP stages.

8.2 Duty to consult

NRCan has a legal duty to consult with Indigenous groups when a contemplated Crown conduct, such as the provision of funding, may have adverse impacts on existing or potential Aboriginal or Treaty rights. Federal departments and agencies are responsible for understanding how and when an activity could have an adverse impact on Aboriginal or treaty rights, and consultation should occur prior to the federal government taking any action.

While applicants are not required to consult with Indigenous groups as part of the application process, they will be required to report at the FPP phase if they have already conducted consultation or engagement activities in relation to the project proposal or as part of their ongoing operations or corporate commitments.

8.3 Impact Assessment Act

As per the Impact Assessment Act, NRCan is required to assess whether RD&D projects carried out, in whole or in part, on federal lands are likely to cause significant adverse environmental effects. At the FPP phase, applicants will be asked to identify if the project will be carried out in whole or in part on federal lands. If so, an impact assessment may be required during due diligence for successful applicants.

8.4 Information sharing permissions

During the application process, applicants will confirm whether they provide permission for NRCan to share their application with other relevant funding organizations. For projects that may not obtain funding under the Program, this will allow the Program to provide the opportunity for maximum exposure and guidance across other federal funding programs or providers.

8.5 The Clean Growth Hub

The Clean Growth Hub is a whole-of-government focal point for clean technology focused on supporting companies and projects, coordinating programs and tracking results.

Should you consent, the information you provide may be shared across federal departments/agencies, including but not limited to the departments and agencies represented in the Clean Growth Hub, with a view to assisting you in determining the federal programs/supports best suited to your needs. Pursuant to Paragraph 20(1) of the Access to Information Act, the Clean Growth Hub will not publicly disclose any information without permission.

8.6 Trusted Partners

To facilitate co-funding with provincial/territorial and industry funders, NRCan is working in collaboration with a network of other funding organizations across Canada. By giving NRCan the authority to share your proposal with our “Trusted Partners” (TP), you allow NRCan to explore possible co-funding opportunities, referrals, or follow-on funding opportunities.

Please note that NRCan will only share these applications with TPs where NRCan has a non-disclosure agreement in place and for the purposes of referring proposals for funding consideration or exploring the possibility of co-funding.

8.7 Contact us

For any questions regarding the call, please contact NRCan at EIPmethane-methanePIE@nrcan-rncan.gc.ca. During regular operations, NRCan will strive to respond within two business days.

For technical support with the Applicant Portal, please contact oerdportal-portailbrde@nrcan-rncan.gc.ca.

8.8 Other conditions

• No Member of the House of Commons shall be admitted to any share or part of the contribution agreements, or any resulting benefit.
• Where appropriate, projects will be subject to appropriate environmental assessments prior to the release of any funds.
• The Proponent will comply with the Conflict of Interest Act, the Conflict of Interest and Post-Employment Code for Public Office Holders.
• Funding may be cancelled or reduced in the event that departmental funding levels are reduced by Parliament. Agreements will include provisions to this effect.
• Proponents will be required to acknowledge the financial support of Canada in all public information produced as part of the project. 
• As part of project monitoring requirements, NRCan will have the right to visit and inspect all project sites, upon providing a reasonable notice to project proponents. 

8.9 Confidentiality and security of information

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: 

The applicant’s information supplied to NRCan contains financial, commercial, scientific or technical information; and 

The applicant consistently treats such information in a confidential manner. 

Accordingly, NRCan will protect the applicant’s confidential information in its possession to the same extent as the applicant protects said confidential information in its own establishment: if the applicant chooses to send the proposal or other confidential information to NRCan by e-mail, NRCan will respond to the Proposal by e-mail.  Similarly, if the applicant’s correspondence is through regular mail, NRCan’s response will be in like manner.  However, in all cases, NRCan will use e-mail correspondence to the applicants for all non-confidential matters.  

NRCan recognizes that e-mail is not a secure means of communication, and NRCan cannot guarantee the security of confidential information sent via e-mail while it is in transit.  Nonetheless, applicants who regularly use e-mail to communicate confidential information within their own organizations may choose to interact with the program via the Program’s email address: EIPmethane-methanePIE@nrcan-rncan.gc.ca. 

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

NRCan reserves the right to alter or cancel any call for expressions of interest, call for proposals, funding amounts and/or deadlines associated with any program component, or to cancel any application process at its sole discretion. Any changes will be communicated to registered applicants via the NRCan website.

Any costs incurred for the submission of any EOI or of FPP are at the project applicant’s own risk. In all cases, any funding under any submission, review and assessment process will be contingent upon the execution of a contribution agreement.

Until a written contribution agreement is signed by both parties, no commitment or obligation exists on the part of NRCan to make a financial contribution to any project, including any expenditure incurred or paid prior to the signing of such contribution agreement.

Accessibility: an overarching goal to realize a barrier-free environment through the proactive identification, removal and prevention of barriers in an organization’s policies, programs, practices and services. A barrier could include anything that hinders the full and equal participation in society regardless of their distinct identities and needs. Removing accessibility barriers ensures all members of society are fully supported and have opportunities to advance. 

Contribution: means funding provided by Canada under the contribution agreement toward Eligible Expenditures.

Diversity: means the acceptance and respect of various human dimensions including race, gender, sexual orientation, ethnicity, socio-economic status, religious beliefs, age, physical abilities, political beliefs or other ideologies. 

Due diligence start date: means the date on which the proponent was notified that it succeeded to the Due Diligence stage.

Eligible expenditure period: means that recipients will be allowed to start incurring eligible expenditures from the date a recipient’s project has been conditionally approved (and pending a due diligence review) or April 1 of the fiscal year in which the contribution agreement is signed and ending on the contribution agreement completion date. Retroactive expenditures will be limited to 30% of NRCan’s contribution.

Eligible expenditures: means those costs incurred within the Eligible Expenditure Period, either directly by the Proponent or through a third party, which are cash disbursements made with respect to the activities set out in the Proposal.

Equity: A condition or state of fair, inclusive and respectful treatment of all people based on their distinct identities and needs; removing systemic barriers to ensure all members are fully supported and have opportunities to advance. Equity does not mean treating people the same without regard for individual differences. 

Fugitive emissions: Emissions from unintentional leaks or equipment failures may result from deterioration of equipment, especially seals and fittings, or improper installation or operation of equipment.

IDEA: inclusion, diversity, equity and accessibility. 

Inclusion: means the extent to which diverse members of a group (society/organization) feel valued and respected. 

Indigenous: is understood to include Inuit, Métis, First Nation, Status Indian and non-Status Indian individuals, or any combination thereof. 

Indigenous recipient: means an Indigenous community or government, Tribal Council, National and regional Indigenous councils, and Tribal organizations, and majority owned and controlled for-profit and not-for-profit organizations.

Methane slip: for stationary combustion systems, it means methane emissions resulting from incomplete combustion of natural gas as a fuel or disposal in flaring systems. Light hydrocarbons ‘slip’ through the flame as methane rather than being converted to CO2.

Remote communities: communities that are not currently connected to the North American electrical grid or the piped rural gas network and are a permanent or long-term (five years or more) settlement with at least 10 dwellings. 

Profit: means in relation to the project, net operating profit as determined by Generally Accepted Accounting Principles.

Project: means the Applicant’s proposal, as submitted to NRCan.

TRL is a measure used to assess the maturity of evolving technologies (devices, materials, components, software, work processes, etc.) during its development and in some cases during early operations. Generally speaking, when a new technology is first invented or conceptualized, it is not suitable for immediate application. Instead, new technologies are usually subjected to experimentation, refinement, and increasingly realistic testing. Once the technology is sufficiently proven, it can be incorporated into a system/subsystem.

Guiding principles

The following principles should be applied when determining the TRL of a technology:

• Start with the broader Technology Development Stage: When determining a TRL, it is best to start with the general development stage of the technology before assessing the specific TRL.
• Err on the side of conservative: If there are uncertainties as to whether a technology is at a certain TRL, the lower TRL should be assigned.
• Ensure the operating environment is well understood: A key aspect of the various TRLs is the testing environment of a technology. It is important to be clear in understanding the real-world conditions expected and if and how the testing environment (e.g., laboratory, simulated or operational) represents these conditions.
• A TRL is only valid for the specific operational environment for which it was tested: If a developed technology is to be deployed in an operational environment that was different than the one it was tested for, the technology would no longer be considered fully developed and would need to be tested and refined for the new operational environment to be considered at the same TRL.
• Important distinction: A technology is said to have achieved a specific TRL if it has met the requirements for that level and all prior levels. A technology is said to be at a certain TRL if the research team is currently working on achieving the requirements specific to that level.
• Still not sure what TRL your project is at? Check out the TRL assessment tool to help you narrow it down.

Purpose, definitions, eligibility, and value

Important note

The Program accepts in-kind contributions (defined below) as part of Total Project Costs, subject to the definitions and limitations described in this section. As per section 5.2 Ineligible Expenditures, in-kind support is ineligible for reimbursement.

Proposed in-kind contributions that are deemed acceptable by NRCan officials must be supported by a formal commitment from the project proponent to provide them, prior to any commitment on Program funding to the proposed project being made.

Purpose

The purpose of this section is to identify the kinds of non-cash contributions (“in-kind support”) that are acceptable as part of the overall funding for the project from the project proponent, and to provide guidance on how to put a value on those contributions. 

Definitions for this section

In-kind contribution means a cash-equivalent contribution in the form of an asset for which no cash is exchanged but that is essential to the project and that would have to be purchased by the project proponent on the open market, or through negotiation with the provider, if it were not provided by the project proponent. 

Fair market value means the average dollar value the project proponent could get for a contributed asset in an open and unrestricted market, between a willing buyer and a willing seller (the proponent) who are acting independently of each other. As a guide, it should approximately represent the original cost minus the depreciation. 

Most favoured customer means a customer given the deepest discount from the normal selling price for a good or service sold to it by the project proponent. 

Project proponent refers to the funding recipient and its partners and collaborators.

Asset section means a useful and valuable good, service or other support provided to the project.

Internal rate means the rate that would be charged by the component of the project proponent that provides the service to the component of the proponent that receives it.

Eligibility of in-kind contributions

To be eligible as an in-kind contribution:

• The contributed asset must be from one of the categories identified below under the heading “Categories of Eligible In-kind Support”.
• It must be essential to a project's success and would otherwise have to be purchased by the project proponent.
• Its value must be determinable and verifiable.
• Its valuation must be confirmed by NRCan officials or its auditors, and agreed upon by the project applicant and NRCan.

Assessing the value of in-kind contributions

Two different approaches to the valuation of in-kind support are possible:

• Using the fair market value, as described above.
• Using the incremental cost – the cost to the project applicant or its partners and collaborators of providing the contributed asset over and above normal operating costs.

Categories of eligible in-kind support

Salaries and benefits

This category addresses the provision of the project partner’s employees’ time to undertake work, such as research, technology development and assessment, and expert analysis that is wholly and directly in support of the project.

The value of services of an employee of the project’s partner provided to the proponent should be at fair market value for the type of service provided and that these services are consistent with the duty for which the employee is normally paid.

Professional, scientific and contracting services 

This category addresses the provision of analytical and technical services. Analytical and technical services include routine laboratory and field technical services such as data collection, laboratory analyses and measurements, and field measurements, exclusive of equipment maintenance. These services may be provided by a component of the project proponent’s overall organization, or provided to the project proponent by a third party.
The value of analytical and technical services provided by or to the proponent should be the lesser of the project proponent’s internal rate for the service if that service is provided internally (i.e., within the project proponent's organization), or the incremental cost to the project proponent if it is provided by a third party.

Provision of equipment and laboratory and field supplies and materials

This category includes equipment, laboratory supplies and field supplies that are provided by or to the project proponent, and the provision of access to, and use of, proprietary software and databases owned by or provided to the project proponent.

Values assessed for equipment and laboratory and field supplies and materials provided to the project must meet the following criteria:

• The value of supplies and materials shall not exceed the selling price to the provider’s most favored customer at the time of provision.
• The value of equipment shall not exceed the fair market value of equipment of the same age and condition at the time of provision.
• If the equipment is special purpose, one-of-a-kind, its value shall not exceed the cost to the provider of its design, testing and manufacture.
• The value of access to, and use of, proprietary software and databases should be the incremental costs to the project proponent of providing that access and use, such as staff time involved, including providing any required instruction on their use. Costs associated with developing the software or databases are ineligible as an in-kind contribution.

Travel, meals and accommodation costs

Unless stated otherwise in the Contribution Agreement between the NRCan and the proponent, National Joint council rates that are in effect at the time of expenditure incurrence shall be used in assigning a value to the following expenses.

• Travel, food and lodging costs to meet with NRCan officials.
• Travel, food and lodging costs necessary for other project activities, e.g., field trials and demonstrations at locations away from the proponent's usual location; project planning and review meetings between the principal proponent and its partner(s).

Overhead expenses

With regard to Overhead Expenses, they may include:

• Administrative support provided directly to the project by the proponent’s employee(s), valued on the same basis as professional staff time (as described under category 1);
• Routine laboratory and field equipment maintenance, based on the actual cost to the proponent that is directly related to the project;
• Heat, hydro, and office operating costs (e.g., faxes, telephone) telephone, provided they are directly related to the project.
• Overhead costs will be negotiated on an individual basis with project proponents. The total of overhead expenses (Eligible and Ineligible) will not exceed 15% of Total Projects Costs.

Salaries and benefits

Salaries

Salaries include wages for all personnel with direct involvement in the project such as engineers, scientists, technologists, draftsmen, researchers, laboratory, experimental and shop labour. All eligible personnel must be employees on the Proponent’s payroll. Payment in terms of shares, stock, stock options and the like are not eligible. The amount invoiced shall be actual gross pay for the work performed and shall include no markup for profit, selling, administration or financing.
The eligible payroll cost is the gross pay of the employee (normal periodic remuneration before deductions). Normal periodic remuneration rates are the regular pay rates for the period excluding premiums paid for overtime or shift work. The payroll rate does not include any reimbursement or benefit conferred in lieu of salaries or wages. When hourly rates are being charged for salaried personnel, the hourly rates shall be the periodic remuneration (annual, monthly, weekly, etc.), divided by the total paid hours in the period including holidays, vacation, paid sickness time.
Labour claims must be supported by suitable records such as time sheets and records, and be held for verification at time of audit. Management personnel are required to maintain appropriate records of time devoted to the project.

Benefits

Benefits are defined as a reasonable prorated share of expenses associated with the direct labour cost such as the employer’s portion of Canada Pension Plan, Quebec Pension Plan and Employment Insurance, employee benefits such as health plan and insurance, Worker’s Compensation, sick leave and vacation plus any other employer paid payroll related expenses. Items such as salary bonuses and other salary incentives, stock options or vehicle use, which have no relationship to the project or which have been charged on an indirect basis are non-eligible. The determination of the fringe benefits amount shall be in accordance with generally accepted cost accounting principles. In general, fringe benefits rate provided in the project estimate shall be computed once during the life of the project and agreed on prior to the signing of the Agreement. If retroactive adjustments are made, these must be indicated on claims for progress payments for NRCan approval.

Professional, technical, and scientific contracting services

Sub-Contractors and Consultants: The nature of goods or services to be acquired shall be set out in the proposal estimate. The amount eligible from a sub-contractor or a consultant shall be the actual contract amount.

Travel, meals and accommodation costs

Unless stated otherwise in the Contribution Agreement between the NRCan and the proponent, National Joint council rates that are in effect at the time of expenditure incurrence shall be used in reimbursing the following expenses:

• Travel, food and lodging costs to meet with NRCan officials. 
• Travel, food and lodging costs necessary for other project activities, e.g., field trials and demonstrations at locations away from the proponent's usual location; project planning and review meetings between the principal proponent and its partner(s). 

Capital expenditures

Materials

Materials include those consumed in carrying out the project, including those utilized in the production and operation of models, prototypes and pilot plants. Only utilities consumed to operate equipment or processes are eligible and may be metered and reported separately from the total utility cost. Utilities used for buildings are not eligible. 

Materials purchased solely for the project and issued from the Proponent’s inventory are eligible. All materials shall be charged to the project at the net price excluding GST after deducting all trade discounts and similar credits. Surplus materials shall be credited to the project at the original purchase price. 

Equipment

Equipment consists of equipment acquired or constructed exclusively for the project. In order to be eligible, such equipment must be identified in the project cost estimate, and approved by the Minister. All such equipment shall be charged to the project at the net price (excluding GST) after deducting all trade discounts and similar charges. 

Where such equipment is obtained from another division of the Proponent or from a related company, the eligible expenditures shall not exceed fair market value and shall not include any markup for profit, administration, selling or financing expense.

Other expenses

Testing services

Eligible testing services are those conducted by testing organizations or accredited laboratories, such as the Canadian Standards Association, Underwriters Laboratories and must be essential to the success of the project. Testing services shall be charged at actual cost. Regulatory costs, where required may be eligible e.g., testing to comply with Environmental Standards. All such costs should be identified in the original proposal cost estimates.

Overhead expenses

With regard to Overhead Expenses, they may include:

• Administrative support provided directly to the project by the proponent’s employee(s), valued on the same basis as professional staff time;
• Routine laboratory and field equipment maintenance, based on the actual cost to the proponent that is directly related to the project;
• Heat, hydro, and office operating costs (e.g., faxes, telephone), provided that they are directly related to the project.

Overhead costs will be negotiated and agreed to on an individual basis with project proponents before signing a contribution agreement. They will not exceed 15% of Eligible Expenditures. 

Focus area 1: Measurement, Reporting, and Verification

Focus area 2: Mitigation of Methane Slip