Greener Neighbourhoods Pilot Program

Call objectives

This second call for proposals under the Greener Neighbourhoods Pilot Program (GNPP or “the Program”), referred to as the GNPP-Demo call, will support up to six Energiesprong-inspired aggregated deep energy retrofit projects in communities across the country. The GNPP-Demo call aims to:

• Validate the technical and economic feasibility of Energiesprong-style deep energy retrofit approaches in multiple regions across Canada;
• Explore innovative approaches to deep energy retrofits in Canada; and,
• Build capacity and a business case for various aggregated deep energy retrofit approaches.

Eligibility

Note: In this section of the guide, some terms are defined in Appendix A.

Applicant eligibility

The GNPP-Demo call is open to the following applicants:

1. Legal entities incorporated or registered in Canada, including:

• Not-for-profit organizations, including social/affordable housing providers or housing cooperatives;
• Community groups;

1. Provincial, territorial, regional, and municipal governments and their departments and agencies, where applicable;
2. Indigenous applicants:

• Indigenous communities;
• For-profit and not-for-profit businesses and organizations that clearly demonstrate ownership and controlling interests by Indigenous groups;
• First Nations (bands or councils under the Indian Act);
• Tribal councils;
• Inuit organizations.

1. The term “Indigenous” is understood to include Inuit, Métis, First Nations, Status Indian, and non-Status Indian individuals or any combination thereof.
2. Academic institutions are not eligible to apply to the GNPP-Demo call;
3. Proposals may be submitted by a for-profit third party, such as a consulting company, on behalf of an eligible applicant. However, the entity that will sign a contribution agreement with Natural Resources Canada (NRCan), must be the owner of the project assets (i.e., the housing provider).

Project scope eligibility

The GNPP-Demo call is open to demonstration projects undertaking Energiesprong-style aggregated deep energy retrofits in the housing sector. Projects may include the following as part of the demonstration project: a Front-End Engineering Design (FEED) study, design costs, as well as the construction costs for the full-scale retrofit of homes or housing units, and costs related post-construction project performance monitoring and reporting.

To be considered for funding, proposals must describe how a proposed project aligns with the following mandatory criteria (see definitions in Appendix A):

• Projects must undertake Deep Energy Retrofits of at least 100 homes or housing units in the same Portfolio, to demonstrate the benefits of deploying retrofit solutions at scale;
• Projects must focus on Community Housing homes or housing units;
• Proposed Deep Energy Retrofits must target achieving at least 50% annual Energy Use Reduction and at least 80% annual GHG emissions reduction in each home or building. Retrofits must involve a whole-building approach including, at a minimum, envelope and mechanical system upgrades. A project must satisfy the definition of a Deep Energy Retrofit as provided in Appendix A;
• Projects must provide a whole-building Deep Energy Retrofit solution that is cost-effective compared to traditional, non-aggregated retrofits involving fewer housing units and must apply a Total Cost of Building Ownership analysis as a measure of return on investment (simple payback calculations will not be accepted)Footnote
• 1;
• Projects must demonstrate the use of whole-building energy analysis (model) in identifying the Deep Energy Retrofit measures. The proposal must explain the modelling approach that will be used during the project, and how it will demonstrate and calculate the Energy Use Reduction and GHG emissions reduction Footnote
• 1;
• Projects must undertake Deep Energy Retrofits on one or more of the following Community Housing archetypes in Canada:
• Single-Detached Houses
• Semi-Detached Houses
• Townhouses
• Row Houses
• Low-rise multi-unit residential buildings (up to and including four storeys)Footnote
• 1 the archetypes listed above are defined in Appendix A;
• Projects must plan to collect at least one year of pre-retrofit baseline data (e.g., utility bills), and at least one year of post-retrofit monitoring data of key energy metrics Footnote
• 2;
• Proposed Deep Energy Retrofit solutions must be replicable across their Region (see definition in Appendix A);
• Buildings selected for retrofit must be representative of an applicant’s building Portfolio and/or typical regional archetypes;
• Projects must include a knowledge dissemination plan to share key findings (design information, technical and/or techno-economic dataFootnote
• 2, lessons learned) with key stakeholders and receptors.

Funding

The GNPP-Demo call is open to demonstration projects that request between $1,000,000 and $10,000,000 (comprising up to 50% of total project costs).

The GNPP provides non-repayable contributions.

Note: Indigenous applicants, as defined under paragraph 3 of the Applicant eligibility subsection of this guide, can request a contribution comprising up to 100% of total project costs, subject to the same maximum dollar amount indicated in the following table.

Projects must be completed by March 31, 2028.Minimum Program Contributions $Maximum Program Contributions $Maximum Program Contribution as % of Total Project Costs$1,000,000$10,000,00050%

Eligible project expenditures can accrueFootnote

3 once the applicant has been notified in writing by NRCan that the project has been selected for funding under the GNPP.

Stacking limit

Stacking of funding (i.e., total government support for a project) will be supported to a maximum of 100% of eligible expenditures.

How to apply

The GNPP-Demo call has one intake period.

To apply, applicants must complete and submit their proposal via email to NRCan (gnpp-ppqv@nrcan-rncan.gc.ca) by 11:59 p.m. PT on September 14, 2023. The proposal package can be downloaded from the link below. The proposal eligibility summary and evaluated questions are included in Appendix C of this guide as reference.

Download GNPP Demo

Proposal Package

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

NRCan reserves the right to apply the following additional criteria during the final project selection:

• Projects that support departmental priorities such as regional balance in Canada, advancing inclusion, diversity, equity, and accessibility (IDEA) in the natural resources sector, and socio-economic considerations.

Next steps and timelines

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

Projects must be completed by March 31, 2028.StepsDatesOpen for ProposalsJune 13, 2023Deadline for ProposalsSeptember 14, 2023

11:59 p.m. PTProject Selection/NotificationFall 2023 (TBD)Due Diligence ProcessWinter 2024 (TBD)Negotiation and Signing of Contribution AgreementsSpring 2024 (TBD)

Due diligence assessment

All applicants selected for funding will undergo a due diligence assessment, which will include an evaluation of the project’s finances, technical risk, and team strengths, as well as legal and regulatory considerations. NRCan may request additional information to support the due diligence assessment.

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

Contribution agreement

Any funding under the call will be contingent upon the execution of a contribution agreement. Until such an 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 for prior to the signing.

More information on NRCan contribution agreements will be made available to successful applicants following notification of funding decisions.

Regulatory, reporting, and other requirements

Inclusion, diversity, equity, and accessibility (IDEA)

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 optional, responses will not be evaluated or scored as part of the application but may be considered as part of the final selection process.

Duty to consult

NRCan has a legal duty to consult with Indigenous groups when a contemplated Crown conduct, such as providing 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. Consultation should occur prior to the federal government taking any action.

Applicants will be required to report 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.

Impact Assessment Act

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

Outcome reporting

Proponents of successfully funded projects must report to NRCan quarterly and annually to ensure that targets and objectives are being met.

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

Permission to share information

During the application process, applicants will be asked if they give NRCan permission 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 through other funding programs or providers.

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.

The Clean Growth Hub is an interdepartmental organization whose member departments and agencies include:

• Innovation, Science and Economic Development Canada
• Natural Resources Canada
• Environment and Climate Change Canada
• Transport Canada
• Fisheries and Oceans Canada
• Agriculture and Agri-Food Canada
• Global Affairs Canada
• Treasury Board Secretariat of Canada
• National Research Council
• Business Development Bank of Canada
• Export Development Canada
• Sustainable Development Technology Canada

If applicants consent, the information they provide may be shared across federal departments and agencies. These agencies include but are not limited to the departments and agencies represented in the Clean Growth Hub, with a view to helping applicants determine which federal programs and supports best suit their needs. Pursuant to Paragraph 20(1) of the Access to Information Act, the Clean Growth Hub will not publicly disclose any information without permission.

Trusted Partners

To facilitate co-funding with provincial, territorial, and industry funders, NRCan collaborates with a network of funding organizations across Canada. By giving NRCan the authority to share their proposals with our Trusted Partners (TP), applicants allow NRCan to explore co-funding opportunities, referrals, or follow-on funding opportunities.

Note that NRCan will share these applications only with TPs that have a non-disclosure agreement with NRCan and for the purposes of referring proposals for funding consideration or exploring the possibility of co-funding.

Contact us

For questions regarding the GNPP–Demo call or the GNPP more broadly, please contact NRCan at: gnpp-ppqv@nrcan-rncan.gc.ca. During regular operations, NRCan strives to respond within two business days.

Appendix A – Definitions

Community Housing – Community housing (sometimes referred to as social, affordable, or co-operative housing) is housing that is offered at below-market rates so that it is more affordable. Community housing is typically provided by organizations whose mandates are to offer affordable housing, including housing owned and operated by non-profit housing corporations, housing cooperatives, and municipal governments or district social services administration boards. Rents are typically subsidized by public sources (be they federal, provincial/territorial, or municipal) so that rents can be maintained at a level that is affordable to the tenants.

Deep Energy Retrofit – Under the GNPP, a deep energy retrofit is defined as a major building renovation project which must target at least 50% annual Energy Use Reduction (see definition below), while targeting at least 80% annual GHG emissions reduction. A deep energy retrofit requires a whole-building analysis approach, meaning that the building is considered as a single, integrated system rather than as a collection of standalone systems, such as the building envelope, the heating, ventilation, and air conditioning systems, and building operations. The whole-building analysis approach facilitates the identification of synergistic relationships between the component systems. The key to whole-building analysis is the use of an Integrated Design Process (see definition below).

Energy Use Reduction – For the purposes of the GNPP, energy use refers to a home or building unit’s energy consumption for space heating, space cooling, domestic hot water heating, lighting, and plug loads for building operation. Energy use reduction is defined as a reduction in energy needs from building operations through energy demand reduction, electrification, and other energy conservation measures, but does not include the impact of renewable energy use or generation.

Integrated Design Process (IDP) – is a method for realizing high performance buildings that contribute to sustainable communities. It is a collaborative process that:

• is designed to allow the client and other stakeholders to develop and realize clearly defined and challenging functional, environmental, and economic goals and objectives;
• includes a multidisciplinary design team that has or acquires the skills required to address all design issues flowing from the objectives;
• focuses on the design, construction, operation, and occupancy of a building over its complete life cycle;
• proceeds from whole-building system strategies working through increasing levels of specificity to achieve more optimally integrated solutions.

Low-rise multi-unit residential building (low-rise MURB) – A low-rise MURB is a building used exclusively for residential purposes that consists of a set of separate stacked residential units, with each residential unit having a private entrance either from the exterior of the building or from a common hall, lobby, vestibule, or stairway inside the building. A low-rise MURB consists of at least two vertically stacked residential units, stands at least two storeys above finished grade, and does not exceed three storeys. In the context of GNPP and the applicability of the Energiesprong approach, four-storey MURBs are considered as an eligible housing archetype.

Portfolio – the homes and buildings owned by a single housing provider or organization.

Region – an area sharing a single climate zone and climatic conditions, in which a deep energy retrofit solution or construction approach would be commonly applicable.

Row House or Townhouse – Three or more dwelling units joined side by side, side to back, or, in the case of stacked townhouses, the dwelling units may be arranged with upper and lower units.

Semi-Detached House – Two dwelling units attached side-by-side (or back-to-back) to each other, but not to any other dwelling or structure (except its own garage). A semi-detached house has no dwellings either above or below it, and both units have open space on all sides.

Single-Detached House – A single dwelling not attached to any other dwelling or structure (except its own garage).

Total Cost of Building Ownership (TCBO) – a life cycle cost analysis of a building based on all major operating, renewal, and maintenance costs. A TCBO analysis quantifies variables over a fixed timeframe (e.g., 60 years) and takes into account factors such as capital cost, energy consumption and cost, GHG emissions, useful life, current age, annual maintenance cost, replacement cost escalation, improvement in energy efficiency at replacement, and cost of capital.

Appendix B – Eligible expenditures and non-permissible costs

Eligible Expenditures

The Program will provide for Eligible Expenditures as described below.

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

• Salaries and benefits for employees on the proponent’s payroll, for actual time spent by the employees on the project;
• Professional, scientific, technical, and contracting services;
• Reasonable travel costs, including meals and accommodation, based on National Joint Council Rates;
• Capital expenditures such as the purchase, installation, testing, and commissioning of qualifying equipment, materials, and products, including diagnostic and testing tools and instruments and the Original Equipment Manufacturer 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.;
• Licence fees and permits;
• Capacity building and training; and,
• Field testing services.
• For Indigenous proponents, other expenses may include:
• Costs associated with an Indigenous ceremony (excluding hospitality); and,
• Honoraria for Elders.
• Overhead expenses, provided they are directly related to the conduct of the project and can be attributed to it. Overhead costs will be negotiated and agreed to on an individual basis with project proponents before signing a contribution agreement. They may not exceed 15% of Eligible Expenditures.

Ineligible Expenditures

Costs ineligible for reimbursement under the Program (but permitted as part of the proponent’s contribution to the total project costs) are as follows:

• 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;
• In-kind costs*

* In-kind support must be verifiable, directly support the project, and fall into the same cost categories as identified for Eligible Expenditures.

From time to time, the Program may determine that some of the proponent’s project costs are not 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.

Non-Permissible Costs

Costs associated with the purchase of land are considered non-permissible, meaning they are ineligible for reimbursement or inclusion as part of the total project costs. From time to time, the Program may consider other costs to be non-permissible. The Program will provide guidance to the proponent as required.

Appendix C – Proposal eligibility summary and evaluated questions

Proposal eligibility summary

SectionsEligibility criteriaEligible ApplicantsThe GNPP-Demo call is open to the following applicants:

1. Legal entities incorporated or registered in Canada, including:

• Not-for-profit organizations, including social/affordable housing providers or housing cooperatives;
• Community groups.

1. Provincial, territorial, regional, and municipal governments and their departments and agencies, where applicable.
2. 
   
3. Indigenous applicants:

• Indigenous communities;
• For-profit and not-for-profit businesses and organizations that clearly demonstrate ownership and controlling interests by Indigenous groups;
• First Nations (bands or councils under the Indian Act);
• Tribal councils;
• Inuit organizations.

The term “Indigenous” is understood to include Inuit, Métis, First Nations, Status Indian, and non-Status Indian individuals or any combination thereof.

Eligible ProjectsThe GNPP-Demo call is open to demonstration projects undertaking Energiesprong-style aggregated deep energy retrofits in the housing sector. Projects may include the following as part of the demonstration project: a Front-End Engineering Design (FEED) study, design costs, as well as the construction costs for the full-scale retrofit of homes or housing units, and costs related to post-construction project performance monitoring and reporting.

Housing Archetypes

Projects must undertake Deep Energy Retrofits on one or more of the following Community Housing archetypes in Canada, as defined in Appendix A:

• Single-Detached Houses;
• Semi-Detached Houses;
• Townhouses;
• Row Houses;
• Low-rise multi-unit residential buildings (up to and including four storeys).

Project Scale

Projects must undertake Deep Energy Retrofits of at least 100 Community Housing homes or housing units in the same Portfolio to demonstrate the benefits of deploying retrofit solutions at scale.

Replicability

Proposed Deep Energy Retrofit solutions must be replicable across their Region (see definition in Appendix A). Buildings selected for retrofit must be representative of an applicant’s building Portfolio and/or typical regional archetypes.

Minimum Performance

Proposed Deep Energy Retrofits must target achieving at least 50% annual Energy Use Reduction and at least 80% annual GHG emissions reduction in each home or building. Retrofits must involve a whole-building approach including, at a minimum, envelope and mechanical system upgrades. A project must satisfy the definition of a Deep Energy Retrofit as provided in Appendix A.

Projects must demonstrate the use of whole-building energy analysis (model) in identifying the Deep Energy Retrofit measures. The proposal must explain the modelling approach that will be used during the project, and how it will demonstrate and calculate the Energy Use Reduction and GHG emissions reduction.

Projects must plan to collect at least one year of pre-retrofit baseline data (e.g., utility bills), and at least one year of post-retrofit monitoring data of key energy metrics.

Cost Effectiveness

Projects must provide a whole-building Deep Energy Retrofit solution that is cost-effective compared to traditional, non-aggregated retrofits involving fewer housing units and must apply a Total Cost of Building Ownership analysis as a measure of return on investment (simple payback calculations will not be accepted).

Knowledge Dissemination Plan

Projects must include a knowledge dissemination plan to share key findings (design information, technical and/or techno-economic data, lessons learned) with key stakeholders and receptors.

Eligible FundingApplicants are eligible to request between $1,000,000 and $10,000,000 (comprising up to 50% of total eligible project costs) for projects ending no later than March 31, 2028.

Eligible project expenditures can accrue once the applicant has been notified in writing by NRCan that the project has been selected for funding under the GNPP, subject to a percentage of costs within a retroactivity period which will be communicated to applicants of the selected projects.

Note: Indigenous applicants, as defined under paragraph 3 of the Applicant eligibility subsection of this guide, can request a contribution comprising up to 100% of total project costs, subject to the same maximum dollar amounts listed in this table.

Stacking LimitStacking of public funding (i.e., total government support for a project) will be supported to a maximum of 100% of total eligible expenditures.

Evaluated proposal questions

SectionsEligibility criteriaProject Pitch

• (63.8%)Alignment to eligible scope, program objectives, and expected outcomes
• Description of DER approach
• Project impacts and benefits (technical, environmental, economic, and social)
• Uptake & replicability
• Knowledge dissemination

Team and Partners

• (11.6%)Organization’s background and relevant experience
• Project team capabilities
• Project organizations and their capabilities

Implementation and Risk

• (24.6%)Performance metrics
• Project risk management
• Budget (attachment)
• Quality of the project plan and Statement of Work (attachment)

NRCan reserves the right to apply the following additional criteria during the final project selection:

• Projects that support departmental priorities such as regional balance in Canada, advancing inclusion, diversity, equity, and accessibility (IDEA) in the natural resources sector, and socio-economic considerations.