What kind of costs will be eligible for funding under the Aboriginal Renewable Energy Fund?
The fund will cover pre-feasibility activities such as resource and site identification, capital cost estimates, project management plan and developing a preliminary business plan.  The fund will also cover funding for feasibility activities and studies such as resource assessment, site control, engineering and design studies and required regulatory approvals.

How soon can communities apply for funding?
The Aboriginal Renewable Energy Fund began accepting applications on April 28, 2010 through the Aboriginal Renewable Energy Network at www.aboriginalenergy.ca.  Paper copies can also be requested by contacting the OPA at 416-969-6317 or aref@powerauthority.on.ca Applications are accepted on a continuous basis.

Is there a deadline for accepting applications?
No, applications will be accepted on a continuous basis.

What is the total amount of funding available under the program?
Eligible Aboriginal communities may receive funding in the following amounts:

• Pre-Feasibility Phase: 80 percent of costs up to $20,000
• Design and Development Phase: 60 percent of costs up to $250,000, less any funding received in the first phase.
• Regulatory Approvals Phase: 40 percent of costs up to $500,000, less any funding received in the first two phases.

         The total amount of funding provided will be dependent on program uptake; however, 16 Aboriginal projects were recently offered FIT contracts by the OPA.

How do I know if my community is eligible for the Aboriginal Renewable Energy Fund?
The Aboriginal Renewable Energy Fund is available to First Nation and Métis communities in the province of Ontario that fall into one of the following four categories:

• First Nation that is a “Band” as defined by the Indian Act (Canada)
• the Métis Nation of Ontario or any of its active Chartered Community Councils
• a person, other than a natural person, that is determined by the Government of Ontario for the purposes of the FIT Program to represent the collective interests of a community that is composed of Métis or other Aboriginal individuals; or
• a corporation that is wholly owned by one or more Aboriginal Communities as described in (a), (b) or (c).

What types of projects are eligible for funding?
Renewable energy projects greater than 10 kilowatts in size are eligible to apply to the Aboriginal Renewable Energy Fund. Eligible renewable energy technologies include solar photovoltaic, waterpower, bioenergy and wind power projects. Please see the Aboriginal Renewable Energy Network, at www.aboriginalenergy.ca, for more details about the different types of renewable energy technologies.

Is there a maximum amount of funding that my community can receive?
Funding is divided into three phases: pre-feasibility, design and development, and regulatory approvals.  Each phase has a maximum percentage and funding amount associated with it.
Aboriginal communities may receive funding in the following amounts:

• Pre-Feasibility Phase: 80 percent of costs up to $20,000;
• Design and Development Phase: 60 percent of costs up to $250,000, less any funding received in the first phase;
• Regulatory Approvals Phase: 40 percent of costs up to $500,000, less any funding received in the first two phases.

Please see the Aboriginal Renewable Energy Fund Rules at www.aboriginalenergy.ca/areffor more details about eligible funding expenses.

Can we request funding for different stages of our project?  If so, do we submit one application or more than one?
Yes, funding can be requested for different stages/phases of a project.  As funding is divided into three phases, and is provided on a per activity basis within those phases, a separate request will be required for each phase.  Please see www.aboriginalenergy.ca/aref to view the application form.

How does my community apply to the Aboriginal Renewable Energy Fund?
Applications for the three phases of funding can be downloaded www.aboriginalenergy.ca/aref. Applications may be completed electronically and emailed to the OPA, or they may be completed by hand and mailed or faxed to the OPA.  Hard copies of the application forms can also be mailed to the applicant by request by contacting the OPA at 1-888-471-2377

Can I apply to the Aboriginal Renewable Energy Fund for more than one project?
Yes, an Aboriginal community may submit applications for multiple projects.  Please refer to the program rules or contact the OPA directly at 1-888-471-2377 for more information.

Can my community receive both the FIT Aboriginal Price Adder and funding through the Aboriginal Renewable Energy Fund?
Yes.  The Aboriginal Renewable Energy Fund provides assistance for up-front ‘soft’ costs associated with project development.  Once a project has been issued a FIT contract through the OPA, the Aboriginal price-adder is applicable to those projects where the Aboriginal community has a minimum 10 percent economic interest in a project. 

Is the Aboriginal Renewable Energy Fund application process competitive?
No, applications are accepted continuously, in a non-competitive manner. All eligible projects will be considered for funding.

How are applications evaluated?
The eligibility criteria and pre-requisites are posted at www.aboriginalenergy.ca. Applications will be evaluated for technical, economic and commercial feasibility of the project based on a set of criteria, which may include factors such as the size and type and location of the project.

If I cannot connect my project (because there is no transmission capacity in my area), can I still apply to the Aboriginal Renewable Energy Fund under the AEPP?
Yes.  The purpose of the AEPP is to facilitate the participation of Aboriginal communities in the development of renewable energy generation projects.  If a project is located in an area with no available transmission, the project will be eligible to receive some pre-feasibility funding from the Aboriginal Renewable Energy Fund in order to get the project to the stage where a FIT application can be made; however, more advanced activities would be funded only once the project has a FIT contract or has proceeded from the FIT Reserve to the FIT Production Line.
        
Once funding is approved, how is it distributed?  
After an application is approved, funding is typically provided in two payments:

• 50 percent of the grant will be provided upfront.
• 50 percent of the grant will be provided when all of the required reporting has been submitted and all project activities in the application have been completed.

Note: for activities with longer timelines, funding may be provided in more than two payments.

Who can I contact for more information about the Aboriginal Renewable Energy Fund?
For inquiries about any aspect of the AEPP, including the Aboriginal Renewable Energy Fund please contact the OPA at 1-888-471-2377 or email us at AEPP@powerauthority.on.ca.  You can also visit www.aboriginalenergy.ca/aref for more information.

If my community has applied to the FIT program but did not receive a FIT contract, are we eligible for funding?
Yes, if your community did not receive a FIT contract, you are eligible to receive funding up to Phase II-A. If your project did not receive a FIT contract, but has been placed in the FIT Production Line, you are eligible for up to Phase II-B. To be eligible for Phase III, your community must have a FIT contract.

Are legal costs and organizational development costs eligible for funding?
Yes, legal fees and organization development costs are eligible for funding under AREF. Please see the AREF Program Rules for more details.

Can my community apply for more than one project of the same renewable technology?
Yes, a community may apply for funding for more than one project of the same renewable technology, if it can be demonstrated that the projects are on distinct sites and each will be subject to separate FIT contracts.

Does the percentage of Aboriginal participation in the project influence the amount of funding that my community will be eligible for?
No, the percentage of Aboriginal ownership or participation in the project will not influence the amount of funding the community can receive. However, AREF funding will only be provided to costs that will be incurred by the Aboriginal community directly. Funding will not be provided to cover costs for activities that will be paid for by a partner or other party.

If we applied for AREF funding, can we also apply for other funds and grants?
Yes, projects are very costly and we recognize that AREF funding will not cover all of the costs associated with project development. We encourage communities to look at other sources of funding to cover additional costs. However, the AREF will not fund activities that have already been covered by other funding sources. Please click [here], for a list of additional sources of funding that your community may be eligible for.

Is my community eligible for funding if we will not be pursuing a FIT Contract but rather another form of a power purchase agreement?
The AREF is a FIT-Support Program and to be eligible for AREF funding, the community must have the intention of applying to the FIT Program at some point. If your community intends to enter into a power purchase agreement other than FIT, your community will not be eligible for the AREF.

Are microFIT projects (10 kilowatts or less) eligible for the AREF?
The AREF is intended to provide support to FIT-sized projects (above 10 kilowatts). If your community is interested in a microFIT project(s), you may be interested in undertaking an Aboriginal Community Energy Plan, a program which the OPA is developing. A Community Energy Plan is an interactive planning and implementation process for First Nation and Métis communities to identify energy savings, identify new resources and plan their future energy needs.

Does the AREF cover costs associated with transmission and connections (ie. studies and connection assessments)?
While the AREF will cover costs associated with a preliminary connection review in Phase I, Connection Impact Assessments (CIAs) or other studies, assessments or costs associated with connecting your project to the grid are not eligible for funding. The AREF is also not intended for costs associated with developing, upgrading or expanding transmission and/or distribution lines.

Other Related Questions:

What is a Renewable Energy Approval?
A Renewable Energy Approval (‘REA’) is a new streamlined provincial approval process for renewable energy projects established through the Green Energy and Green Economy Act, 2009. For more information, please visit http://www.ene.gov.on.ca/en/business/green-energy/.

How does the Aboriginal Loan Guarantee Program work?
Through the Aboriginal Loan Guarantee Program, Ontario will guarantee loans that are provided to eligible Aboriginal communities by financial institutions.  Loan guarantees will only be granted to commercially viable projects following an extensive due diligence process.  The government will guarantee up to 75 percent of equity, to a maximum of $50 million per project. Projects will be required to have:

• agreements in place to pre-purchase energy in the case of a generation project or regulated rates in the case of a transmission project
• experienced proponents and project partners with track records in construction and operation
• commercial financing arrangements in place

What is the difference between the Aboriginal Energy Partnerships Program and the Aboriginal Loan Guarantee Program?
The AEPP is a program designed by the Ontario Power Authority as a result of the ministerial directive on September 24, 2009 to establish measures, including programs or funding, to facilitate the participation of Aboriginal communities in the development of renewable energy generation facilities.

The Aboriginal Loan Guarantee Program was a commitment in the Provincial Budget 2009, with Ontario announcing it would move ahead with a $250 million loan guarantee program to help facilitate Aboriginal participation in renewable energy projects. The program will provide loan guarantees to Aboriginal communities for up to 75 percent of an Aboriginal corporation’s equity in an eligible renewable generation and transmission project

The Aboriginal Renewable Energy Fund is designed to support the up-front soft costs of a project, while the goal of the Aboriginal Loan Guarantee Program is to guarantee loans that are provided to First Nation and Métis communities for equity in commercially viable projects, closer to the end of project development at the construction phase.
For more information on the Aboriginal Loan Guarantee Program please visit http://www.ofina.on.ca/algp/

Where can I find information about other funding sources available for Aboriginal community projects in Ontario?
Please visit the Financing Basics section of the Aboriginal Renewable Energy Network (www.aboriginalenergy.ca) for further information on funding sources and financing options.

Where can I get more information on specific energy types?
Please visit the Aboriginal Renewable Energy Network at www.aboriginalenergy.ca

How is this program related to the OPA’s FIT Program?
The OPA’s FIT Program pays the owners of fully operational renewable energy projects a fixed price for the electricity they produce.

The purpose of the AEPP is to facilitate participation by Aboriginal communities in the development of renewable energy generation projects.  Through a planning tool for a community’s energy needs and future options, the funding of upfront ‘soft’ costs of project development, and an evolving web-based tool that provides information about Ontario's electricity system, types of renewable energy resources and technology, the FIT and microFIT programs, environmental requirements, business planning, project development and project management, the AEPP aims to assist First Nation and Métis communities in developing a renewable energy project that will receive a  contract within the FIT Program.

Projects that have received funding through the Aboriginal Renewable Energy Fund are encouraged to apply to the FIT Program during the pre-feasibility or design and development phase of their project.  It should be noted that applicants must have been awarded a FIT contract or be in the FIT Production Line to receive funding for the Regulatory Approvals phase.

Does the OPA have a list of contractors, engineers, planners, etc. who are qualified to carry out the required research and studies?
The OPA does not have a list of contractors, engineers or planners who are qualified to carry out the work for various project activities. The OPA recommends that you do some research and speak to other communities who are developing renewable energy projects to find a consultant who is qualified and experienced.