Industrial Optimization Program: Feasibility Study

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1 Industrial Optimization Program: Feasibility Study The Feasibility Study is a detailed study of a specific process or system within an industrial facility to fully investigate an opportunity to use natural gas more efficiently. This rebate offering is designed for customers who consume more than 10,000 GJ/yr of natural gas as an input to a manufacturing or transformative process where raw materials are transformed into finished goods for the purpose of resale (industrial production) with the use of machines, tools and labour. Instructions and application checklist Before submitting your application, review the following checklist to ensure you complete and submit all the required information. Both items on the following checklist must be submitted to FortisBC in order for the application to be processed. If applicable, all other fields are required to process your application. This fully completed and signed application form, one per facility A proposal from the consultant preferred to conduct the Feasibility Study, as identified below Please submit your application to industrialrebates@fortisbc.com. For help with this form, contact industrialrebates@fortisbc.com or call Applicant information Company name Street address City Province Postal code Contact person (for all project-related communications) Title Telephone address Facility information Type of business (short description of business practices) Facility name (if different from above) Street address City Province Postal code FortisBC information FortisBC natural gas account number FortisBC natural gas premise number FortisBC natural gas key account manager FortisBC electricity account number FortisBC electricity premise number FortisBC electricity technical advisor Energy consumption (most recent 12 months) Annual natural gas consumption (GJ) Annual electricity consumption (kwh) Does the facility use other fuels? Yes No If yes, please list: Please estimate end-use breakdown: Natural gas (GJ/yr) Electricity (kwh/yr) Description Process Space heating and/or domestic hot water Other Consultant preferred to perform the Feasibility Study Company name Responsible individual name Feasibility Study price Proposal price (excluding tax) Qualification P.Eng. CEM Telephone Funding Will you be seeking contributions from other organizations related to the Feasibility Study? Yes No If yes, please describe: Would you proceed without the financial support of FortisBC? Yes No

2 Previous funding Have you previously received funding to investigate or implement energy conservation measures at your facility? Yes No If yes, please indicate below. Industrial Energy Audit Program Industrial Technology Retrofit Program Plant Wide Audit Feasibility Study Technology Implementation PowerSense BC Hydro Participation in other programs Are you currently participating in any other incentive programs associated with energy efficiency or demand side management at the facility? Yes No If yes, please indicate below. Industrial Energy Audit Program Industrial Technology Retrofit Program Plant Wide Audit Feasibility Study Technology Implementation PowerSense BC Hydro Program awareness How did you hear about the Industrial Optimization Program? FortisBC key account manager FortisBC website Consultant BC Hydro Applicant declaration I, the undersigned, certify that the information provided in this application is correct and complete, and acknowledge and accept the attached terms and conditions. I acknowledge that receipt of this application by FortisBC does not constitute approval of this application and that the provision of incentive funding is at FortisBC s sole discretion. I agree to receive s from FortisBC containing news, updates and promotions regarding FortisBC's products, services, programs and any associated business opportunities. You may withdraw your consent to receive such s from FortisBC at any time. Please refer to our Privacy Policy or contact us for more details. IMPORTANT NOTE: You will be unable to receive correspondence regarding this application if you do not agree. I authorize FortisBC to use third-party agents or representatives to review the proposal and/or Feasibility Study report for evaluation or measurement and verification (M&V) activities. I would like to have the Feasibility Study report reviewed for: Natural gas incentives Electricity incentives (Note: must be a FortisBC electric customer) Applicant name (please print) Applicant signature Title of authorized officer Date (Yr/Mth/Day) FortisBC approval For FortisBC use only File number Decision Approve Decline Signature of FortisBC representative Title of authorized officer Date (Yr/Mth/Day)

3 FBC Industrial Optimization Program: Feasibility Study Terms & Conditions Program Overview FortisBC Energy Inc. ( FortisBC ) wishes to work with owners and longterm lease holders of existing industrial facilities in British Columbia to encourage greater energy efficiency in the province s industrial sector. The Industrial Optimization Program (the Program ) provides an opportunity to qualifying facility owners and long-term lease holders to improve performance of their facilities through the more efficient use of natural gas for industrial process related activities. The purpose of the Program is to provide funding assistance for natural gas energy efficiency projects that are beyond the scope of other incentive programs currently offered by FortisBC. Such projects include the incorporation of qualifying energy conservation measures which aim to reduce the intensity of natural gas consumption for manufacturing and/or transformative processes where raw materials are transformed into finished goods with the use of machines, tools, and labour for the purpose of resale. The Program consists of three offers: 1) Plant Wide Audit: a high level, whole facility audit to identify opportunities to consume natural gas more efficiently; 2) Feasibility Study: a detailed study of a specific process or system within a facility to fully investigate an opportunity to consume natural gas more efficiently; and 3) Technology Implementation: the installation of high efficiency equipment as a retrofit project, a new build project, or a facility expansion project which will result in the more efficient consumption of natural gas. 1. Program Eligibility Requirements 1.1 In order to be eligible for the Program, an applicant must be a customer of FortisBC in good standing, the accounts of which are not in arrears at the time of payment of funding (each, an Applicant ). 1.2 The facility that is the subject of an application must: a) be located within a FortisBC natural gas service territory; b) consume, on average, equal to or greater than 10,000 GJ/year of natural gas based on the most recent 36 month period. For facilities that do not meet this requirement, the Applicant shall present rationale to FortisBC to illustrate that the facility will consume more than 10,000 GJ/yr of natural gas in the future; c) consume natural gas as an input to a manufacturing and/or transformative process where raw materials are transformed into finished goods with the use of machines, tools and labour for the purpose of resale; and d) be owned by the Applicant or leased by the Applicant under a Long Term Lease. Long Term Lease means a lease with a term of 120 months or more, with an option to renew for at least a further 60 months, which lease will continue for at least 36 months prior to expiry at the time of the application to the Program. Upon request, the Applicant shall provide, in a form satisfactory to FortisBC, in its sole discretion, proof of ownership or details and landlord confirmation of a Long Term Lease. Proof of ownership may include a recent title search. 1.3 Proposed energy conservation measures must: a) seek to reduce the intensity of natural gas consumption for manufacturing and/or transformative processes where raw materials are transformed into finished goods with the use of machines, tools, and labour for the purpose of resale; b) specify the use of products and/or equipment that are new, CSA-approved or certified by a recognized accredited independent organization; and c) comply with any laws, regulations or by-laws regarding permits, codes, or standards. 1.4 Proposed energy conservation measures must not: a) seek to achieve natural gas savings by switching to an alternate fuel source; or b) eliminate the need to consume natural gas as an input to the manufacturing and/or transformative process being addressed after the proposed energy conservation measures have been implemented or installed. 1.5 Energy conservation measures intended to demonstrate a technology to increase market adoption in British Columbia and/or for purposes of research and development are not eligible for funding under the Program. 1.6 Energy conservation measures that have been purchased, are in the process of being installed, or are already installed are not eligible for FortisBC funding assistance without the prior written consent of FortisBC. 2. Feasibility Study Application and Review 2.1 The following terms shall have the following meanings: a) Application means an application to the Program that is accurate, fully completed and signed by the Applicant. b) Consultant means the consultant named in the Application and who meets the criteria set out in these terms and conditions. c) Funding means funding made available by FortisBC to the Applicant for the Feasibility Study and Report. d) Feasibility Study means a detailed study of a specific process(es) or system(s) to fully investigate an opportunity to consume natural gas more efficiently at the facility that is the subject of an Application. e) Feasibility Study Proposal and Report Guide means FortisBC s Feasibility Study Proposal and Report Guide, as amended from time to time, in FortisBC s sole discretion. f) Proposal means a proposal prepared in accordance with the Feasibility Study Proposal and Report Guide and issued by the Consultant. g) Report means the report that is the result of the Feasibility Study. 2.2 The Applicant acknowledges and agrees that in order to apply for Funding for a Feasibility Study and Report, the Applicant must submit to FortisBC: a) an Application; and b) a Proposal. 2.3 The Applicant shall submit one Application and Proposal per facility. The Applicant is not eligible for Funding for an energy conservation measure which has previously received Funding, unless both the Applicant and FortisBC agree additional cost effective opportunities will be identified beyond what has been identified through previous FortisBC program participation. 2.4 FortisBC will conduct a review of the Application and Proposal to verify the contents. FortisBC, in its sole discretion, reserves the right to approve or reject any Application and Proposal. 2.5 Subject to the terms and conditions herein, the approved Feasibility Study cost and scope of work eligible to receive Funding, and the associated Funding amounts will be identified and communicated to the Applicant in writing (the Feasibility Study Application Approval Letter ). 2.6 Only upon receipt of the Feasibility Study Application Approval Letter indicating the date of such approval (the Application Approval Date ), the Applicant may retain the services of the Consultant to perform the Feasibility Study. 2.7 The Applicant will not be eligible to receive Funding if the Applicant enters into any agreement with the Consultant with respect to performance or conduct of a Feasibility Study prior to receipt of the Application Approval Letter. 3. Feasibility Study and Report 3.1 The Applicant is responsible to cause the Report to be prepared in accordance with the requirements set out in the Feasibility Study Proposal and Report Guide. 3.2 The Report must be reviewed and approved by the Applicant prior to submitting the Report to FortisBC for review. 3.3 The Report must be submitted directly to FortisBC by the Applicant and FortisBC will not accept same directly from the Consultant. The Applicant must indicate clearly in writing that they have reviewed and approve of the general content and recommendations of the report prior to submission to FortisBC. 3.4 The Applicant shall ensure that the Report is completed and submitted to FortisBC within six months of the Application Approval Date. If the Applicant requires additional time to submit the Report to FortisBC, the Applicant shall provide a written request to FortisBC including the reasons for such a request. FortisBC, in its sole discretion will determine

4 whether the Applicant is eligible for an extension and respond in writing. 3.5 If FortisBC, in its sole discretion, determines that the Report differs substantially from the Application and/or the requirements of the Feasibility Study Proposal and Report Guide, the Applicant will be informed by FortisBC. It is the Applicant s responsibility to cause the Report to be revised, ensuring deficiencies are rectified, and to resubmit the Report to FortisBC. FortisBC, in its sole discretion, reserves the right to approve or reject any Report. If FortisBC, acting reasonably, rejects the Report it will provide the Applicant with reasons for such rejection. 4. Consultant Selection 4.1 The Consultant must possess the skills, qualifications and experience as set forth in FortisBC s Consultant Listing Eligibility Criteria ( Consultant Eligibility Criteria ) in order to perform a Feasibility Study and submit a Report to the Program. The Applicant shall select the Consultant in one of two ways: a) select a Consultant from FortisBC s list of approved industrial Consultants, as amended from time to time (the Consultant List ) who have been pre-screened and found to meet the Consultant Eligibility Criteria; or b) if the Applicant wishes to utilize a Consultant who has not been pre-screened by FortisBC, the Applicant must cause the proposed Consultant to submit information to FortisBC with respect to the proposed Consultant s skills, qualifications and experience. This information must be submitted using the Commercial and Industrial Program Consultant Listing Application. FortisBC will determine whether the proposed Consultant meets the requirements set forth in the Consultant Eligibility Criteria. FortisBC will advise both the Applicant and the proposed Consultant in writing within 30 days of receipt of all requested information whether or not the proposed Consultant is accepted or rejected. 4.2 Inclusion in the Consultant List does not constitute a business agency arrangement between the Consultant and FortisBC and the Consultant may not bind or commit FortisBC to any matter. 4.3 The Applicant acknowledges and agrees that the selection, engagement and termination of the services of the Consultant, including but not limited to, any fees, costs or charges, are at the discretion of the Applicant and are the sole responsibility of the Applicant. 4.4 If more than one Consultant is engaged, the Applicant shall establish a lead to coordinate the Feasibility Study and consolidate all information obtained in the course of the Feasibility Study. 5. Funding 5.1 FortisBC shall provide the Applicant with Funding in an amount equal to the lesser of: a) 75 per cent of actual costs (excluding tax) of the Feasibility Study and Report (the Actual Cost ) as evidenced by invoices and proof of payment; or b) the amount set forth in the Feasibility Study Application Approval Letter. 5.2 The Applicant acknowledges and agrees that Funding excludes GST. 5.3 The Applicant acknowledges and agrees that provision of the Funding by FortisBC is conditional upon the following: a) FortisBC s review, final acceptance and written approval of the Report submitted by the Applicant; and b) copies of invoices and proofs of payment from the Applicant regarding the Actual Cost incurred by the Applicant. 5.4 The Applicant shall submit proof of payment regarding the costs incurred for the Feasibility Study and Report within 60 days of FortisBC s approval of the Report. 5.5 In the event the Applicant fails to submit the copies of invoices with proof of payment for costs incurred in connection with the conduct of the Feasibility Study and preparation of the Report within 60 days of FortisBC s approval of the Report, any obligation on the part of FortisBC to advance any funding will terminate and FortisBC will have no further obligation with respect to the Applicant. 5.6 Rebates cannot be assigned or transferred and will be payable to the Applicant only. 6. Third Party Contributions 6.1 The Applicant shall notify FortisBC in writing within 30 days if the Applicant receives contributions or contribution commitments towards completion of the approved Feasibility Study and/or Report through financial incentive programs from organizations other than FortisBC ( Third Party Contributions ), and the Applicant shall advise FortisBC of the nature and extent of the Third Party Contributions. 6.2 If the total of the Funding and all Third Party Contributions (the Total Funding ) exceeds 100% of the Actual Cost, the Applicant acknowledges and agrees that FortisBC will adjust the Funding so that the Total Funding does not exceed 100% of the Actual Cost. Should the FortisBC Funding have already been released, the Applicant shall repay FortisBC for the full amount of the difference between the Total Funding and the Actual Cost, up to the amount of the Funding within 30 days of a repayment notice issued by FortisBC. 7. Use of Applicant Information 7.1 For the purposes of this Program, and these terms and conditions, Applicant Information means all information disclosed by the Applicant in any Program application materials, which includes such personal information as disclosed by the Applicant, any data respecting billing, energy use and consumption at the facility that is the subject of an Application to the Program and any materials derived or prepared using the foregoing, including but not limited to the results of the Feasibility Study and the Report. By applying for this Program, the Applicant acknowledges and agrees that: a) FortisBC collects and uses the Applicant Information for the purposes of processing, administering and evaluating the Program and developing other FortisBC energy efficiency programs. b) FortisBC may contact the Applicant in the future to review the effectiveness of the Program and that the Applicant will participate in any follow up surveys, studies, audits, evaluations or verifications conducted by FortisBC or its agents in connection with the Program. c) FortisBC may retrieve the Applicant s billing, energy use and consumption information from the FortisBC account database, including where applicable, FortisBC electric billing, energy use and consumption information, for the purposes of analyzing consumption behavior and energy savings attributable to the Program. d) FortisBC may disclose the Applicant Information to its affiliates and contractors for the purposes of administering and evaluating this Program and developing other FortisBC energy efficiency programs. 8. Termination & Repayment 8.1 The Applicant agrees that FortisBC may, at its sole discretion, withhold the payment of any Funding or require the Applicant to repay all or part of the Funding in the event of any of the following: a) the Applicant fails to comply with any of these terms and conditions; b) the Applicant becomes insolvent or bankrupt at any time between receipt by FortisBC of the Application and 30 days following receipt of Funding by the Applicant; c) FortisBC, acting reasonably, is of the view that any other event or circumstance pertaining to the Applicant or the Feasibility Study warrants withdrawal of its financial assistance. 8.2 In the event that FortisBC Requires the Applicant to repay all or part of the Funding, the Applicant shall do so within 30 days of notice of such repayment. 9. Liability & Indemnity 9.1 The Applicant does hereby indemnify and save harmless FortisBC and its respective directors, officers, agents and employees from all liability, damages, claims, demands, expenses and costs for claims, costs for injury or death of any person, damage to or destruction of property, and all economic loss suffered by any person arising from or occurring by reason of the Program, receipt of Funding or actual or alleged implementation of energy conservation measures, including any actions or omissions by third party consultants or contractors in the preparation or implementation of energy audits, energy audit reports or energy conservation measures. 9.2 Notwithstanding that FortisBC or its employees, representatives or agents may have reviewed the information

5 contained in the Application, Proposal, the Report, or any associated documentation related to the Feasibility Study, it is understood and agreed that FortisBC makes no representations or warranties with respect to retention of the Consultant, the Feasibility Study, the Report or the energy conservation measures identified whatsoever, express or implied, as to the quality of analysis, and fitness for a particular purpose, nor with respect to the expected or anticipated natural gas consumption, nor does FortisBC warrant that any energy conservation measures described in the Report or other communications prepared by the Consultant will satisfy the requirements of any law, rule specification or contract. 9.3 FortisBC will not be responsible for any tax liability imposed on the Applicant as a result of any payment of Funding. 10. Promotion of the Program 10.1 The Applicant does hereby agree to allow FortisBC to publish the Applicant s business name, a general description of the Feasibility Study and resulting energy performance recommendations for the purpose of promoting the Program. The Applicant will review and approve any promotional material prior to publication. Such approval will not be unreasonably withheld The Applicant further agrees not to use the FortisBC name or any of its trademarks without the express written consent of same. Such approval will not be unreasonably withheld The Applicant agrees to acknowledge the assistance provided by FortisBC in all publications, publicity material and other forms of release or communication pertaining to the project. All such communications mentioning FortisBC must first be submitted to and approved in writing by FortisBC before publication. 11. Additional Terms and Conditions 11.1 FortisBC and the Applicant agree to provide all reasonable cooperation and support to each other in their mutual objective to successfully implement the Feasibility Study, and to develop the energy conservation measures at the Applicant s facility The Applicant represents and warrants to FortisBC as follows: a) The Applicant has ownership and/or control over the facility that is the subject of the Application and as such has the power, capacity and authority to perform its obligations under these terms and conditions; b) The Applicant is not aware of any fact that materially adversely affects, or could materially adversely affect, its properties, assets, condition (financial or otherwise), business or operations or its ability to fulfill its obligations under these terms and conditions; c) The Applicant has read the Program eligibility requirements set forth above and fully qualifies to participate in the Program; d) All information submitted by the Applicant to FortisBC pursuant to the Application, the Proposal and otherwise communicated to FortisBC with respect to the Program is true and correct; e) The Applicant has not entered into any agreement with the Consultant with respect to performance or conduct of a Feasibility Study related to the energy conservation measure(s) identified in the Proposal prior to receipt of the Feasibility Study Application Approval Letter; and f) The Applicant has not ordered or purchased any of the materials or equipment required to implement the proposed energy conservation measures without the prior written consent of FortisBC By its submission of the Application to the Feasibility Study offer for Funding, the Applicant agrees to all terms and conditions herein, as amended from time to time FortisBC may amend, modify or terminate this Program and/or the terms and conditions at any time based on funding limitations or for any other reason, without notice These terms and conditions shall be governed by and interpreted in accordance with the laws of the province of British Columbia Except as specified herein, these terms and conditions embody the entire Agreement between the parties with regard to the subject matters dealt with herein, and no understanding or agreements, oral or otherwise, exist between FortisBC and the Applicant The decisions of FortisBC with respect to the Program, including but not limited to, decisions relating to Applicant eligibility, Application, Proposal, Report, proposed energy conservation measures, energy saving potential of the proposed energy conservation measures and amount of Funding, are final and binding on the Applicant FortisBC will have no obligation to the Applicant beyond the provision of Feasibility Study Funding as outlined under section 5. The Applicant acknowledges and agrees that FortisBC assumes no other responsibilities or obligations in connection with the services or recommendations of the Consultant or any projects carried out by the Applicant upon the recommendation of the Consultant Subject to section 11.10(Survival), unless otherwise terminated according to sections 5.5 (Failure to submit invoices), or 8 (Termination and Repayment) or (Loss of BCUC approval) all obligations of FortisBC will expire upon completion of the disbursement of the Funding total as described in section 5 of this Agreement Sections 4.3 (Responsibility for Consultant fees), 6 (Third Party Contributions), 7 (Applicant Information), 8 (Termination and Repayment), 9 (Liability and Indemnity) and 10 (Promotion of the Program) and any rights and obligations of the parties under this Agreement that are by their nature continuing, will survive expiry or termination of this Agreement The Applicant acknowledges that FortisBC is a public utility as defined in the Utilities Commission Act, R.S.B.C 1996, c. 473, and further acknowledges and agrees that payment of any funding is subject to the approval of the British Columbia Utilities Commission ( BCUC ) on terms satisfactory to FortisBC, acting in its sole discretion. In the event that the BCUC withdraws approval or changes the terms and conditions of such approval either with respect to this Program or energy efficiency funding generally, on terms and conditions not satisfactory to FortisBC, in its sole discretion, FortisBC may terminate the Program and the Applicant acknowledges and agrees that FortisBC shall be under no obligation to pay any rebate to the Applicant FortisBC reserves the right to limit the number of rebates it provides under the Program FortisBC will not be responsible for any late, lost, incomplete, illegible, misdirected, stolen, delayed, damaged or destroyed application forms, or otherwise failures or circumstances affecting, disrupting or corrupting the Program The Applicant is responsible for complying with any laws, regulations or by-laws regarding permits, codes, restrictions or inspections in relation to products or equipment installed A notice that either party may be required or may desire to give the other party will be in writing and will be given to and received by the addressee on the day when it is delivered, at the following addresses: If to FortisBC: FortisBC Energy Inc. Attention: Energy Efficiency and Conservation Fraser Highway Surrey, B.C. V4N 0E8 industrialrebates@fortisbc.com If to Applicant: via the name, address, and address provided by the Applicant as identified on the Application Either party may from time to time change its address for notice by giving notice to the other party.