CLEAN WATER WASTEWATER FUND (CWWF) APPLICATION GUIDE FOR PROJECTS For the period of 2016/17 to 2017/18* 1.0 PURPOSE The Federal Government Budget 2016 announced new infrastructure programs that will be implemented in two phases. The government will implement a short-term Phase 1 plan to immediately invest in infrastructure. Phase 1 focuses primarily on infrastructure investments over the next two years. The CWWF will help accelerate short term municipal investments, while supporting the rehabilitation of water, wastewater and stormwater infrastructure, and the planning and design of future facilities and upgrades to existing systems. 2.0 PROGRAM INFORMATION 2.1 ELIGIBLE RECIPIENTS To be considered for federal funding under the CWWF, please provide information confirming that your organization falls under one of the following: a) Provinces and Territories; b) Organizations designated by a province or territory and agreed to by Canada; c) Municipal or regional governments established by or under a provincial or territorial statute. 2.2 ELIGIBLE PROJECTS 2.2.1 Eligible for Funding Infrastructure is defined as Publicly or privately owned tangible assets in Prince Edward Island primarily for public use or benefit. To be eligible for funding, a Project must: i. demonstrate that it is able to be completed and claimed within the two years; ii. iii. demonstrate that it will be able to operate and maintain the resulting infrastructure over the long term; fall within one of the applicable project categories, see below and Schedule A (Eligible Project), be consistent with the objectives of the category and directly related to one of April 2016 _ version 1 Page 1
its subcategories, meet one or more of the project outcomes of the category and meet the specific project criteria of the category; iv. be for the acquisition, construction, renewal, rehabilitation or material enhancement of infrastructure, excluding normal maintenance or operation; v. include an application and supporting documents that are comprehensive, credible, and feasible; vi. meet all the program criteria identified in this Guide. 2.2.2 Categories Three categories have been approved for consideration and investment under the CWWF. The details on all these categories and the required outcomes / performance measures and eligible sub-categories can be found under Schedule A of this guideline and at the end of the application form. The subcategories indicate the types of projects that are eligible under each category. Your project must align with at least one of the sub-categories in order to be eligible. The project must also be able to meet at least one of the outcomes / performance measures or benefits listed for that category to which your project corresponds. Stormwater Wastewater Water The eligible project funding sub-categories are: i. Capital projects for the rehabilitation of water treatment and distribution systems, and wastewater and storm water collection, conveyance and treatment systems; ii. Separation of existing combined sewers and/or combined sewer overflow control; iii. Initiatives that support system optimization and improved asset management including studies and pilot projects related to innovative and transformative technologies; iv. Design and planning for upgrades to wastewater treatment infrastructure to meet federal regulatory requirements; and v. New construction projects, including the construction of naturalized systems for management and treatment of wastewater and storm water, if the projects will be completed within the program timeframe. April 2016 _ version 1 Page 2
2.2.3 Outcomes and Benefits Each category has a series of outcomes / performance and benefits for the program category. Applicants must ensure that their projects will address at least one of the outcomes and benefits and describe in the application how the project will achieve this. The outcomes and benefits can be found in Schedule A (Eligible Project Categories) - Section 3.0 outcomes/performance and benefits indication attached. 2.3 PROJECT FINANCIAL 2.3.1 Funding The maximum federal funding to a Project, from all federal sources, will not exceed one half (50%) of the total Eligible Expenditures for a project. The maximum provincial funding to a project will not exceed one quarter (25%) of the total Eligible Expenditures for a projects. The Ultimate Recipient must match the provincial share of one quarter (25%), and cover any ineligible costs. 2.3.2 Program Funding Level The federal program funding for the Province of Prince Edward Island is $55.6M. This first phase of the program is for two years and all funds must be claimed to the Province by March 31, 2018. 2.3.3 Financial Ultimate Recipients are able to submit more than one application but each application must be prioritized according to what the Ultimate Recipient wishes to be funded first. Failure to do so will result in the Infrastructure Secretariat placing a priority number based on the date, time and review of application for data imputing. Projects submitted for consideration must provide financial information and details of project costs as follows: Total estimated project cost; Total estimated eligible project costs; Total estimated ineligible project costs which includes HST; Federal funding under the CWWF; Provincial funding under the CWWF; Ultimate funding under the CWWF; and Other sources of funding (if applicable) April 2016 _ version 1 Page 3
Ultimate Recipients will provide an estimate of when claims will be made for the project. The estimates should be based on the start date and when you see making claims. This should be based on previous projects and claim processes in the past. All expenditures must be claimed in the year in which the expense was incurred. This is due to auditing requirements under the GAAP. Costs claimed after that period will not be considered an eligible cost. HST is not an eligible cost as applicants receive a rebate on the HST. 2.3.4 Cost Sharing, Stacking and Limits to Federal Contribution For projects located in provinces, the maximum federal contribution from all federal sources will be one half (50%) of the total eligible costs of a project. 2.3.5 Estimates &Timelines Ultimate Recipients are encouraged to provide accurate estimates and timelines for projects. The Province is required by the CWWF Agreement to ensure that projects are completed, and claims paid by March 2018. Municipalities should use their previous history with the approval process to ensure accurate estimates and timelines for the project. The Province is in negotiations regarding the March 2018 deadline. This may change in the future and the Province wants all those projects that may be considered to have an opportunity to submit applications for consideration. If the project being put forward cannot be finished by the March 2018 deadline, complete the section under the Proposed Project Financing section of the application. The Ultimate Recipient is responsible for any cost over-runs and unapproved expenditures. NO PROJECT AMENDMENTS WILL BE CONSIDERED. 2.3.6 Tendering The Ultimate Recipient must follow the procurement guidelines of the Atlantic Procurement Agreement and the Agreement on Internal Trade. It is the responsibility of the Ultimate Recipient to become familiar with, and to follow, these regulations. Failure to do so may result in related costs being declared ineligible. 2.3.7 Insurance April 2016 _ version 1 Page 4
The Province s Office of Risk Management has strict requirements for insurance on projects funded or administered by the Province. All Ultimate Recipients must ensure that the Government of Prince Edward Island is added to all insurance policies as an Additional Insured. That not only includes the Ultimate Recipient s policies, but also all contractors working on the project. It is advised that this insurance requirement become part of the tender documents for any infrastructure project. No claims will be reimbursed until the proper insurance papers are received by our office. 2.3.8 Eligible and Ineligible Costs What project costs are eligible / ineligible for reimbursement? a) Eligible Expenditures will include the following: i. All costs considered by Canada to be direct and necessary for the successful implementation of a n eligible project, excluding those identified under Schedule B.1(a) (Ineligible Costs); ii. Costs of Aboriginal consultation, and where appropriate, accommodation; and iii. Costs incurred between April1,2016 and March 31, 2018 b) Ineligible costs include the following: i. Costs incurred prior to April 1, 2016 and costs incurred after March 31, 2018; ii. Costs incurred for cancelled or withdrawn projects; iii. Land acquisition; leasing land, buildings and other facilities; leasing equipment other than equipment directly related to the construction of the project; real estate fees and related costs; iv. Financing charges, legal fees and loan interest payments, (including those related to easements (e.g. surveys); v. Any goods and services costs which are received through donations or in kind; vi. Provincial Sales Tax and Goods and Services Tax /Harmonized Sales Tax, which the Ultimate Recipient is eligible for a rebate, and any other costs eligible for rebates; and vii. Costs associated with operating expenses and regularly scheduled maintenance work. 3.0 ADDITIONAL REQUIREMENTS 3.1 The Ultimate Recipient will be required as part of their application to provide proof that the project meets the federal definition of project incrementality. The federal definition of project incrementality means: (see Schedule D) April 2016 _ version 1 Page 5
a project that would not otherwise have been undertaken in 2016/17 or 2017/18 and/or a project that would not have been undertaken without federal funding. 3.2 The ultimate recipient will be required to submit with the application a signed Project Declaration Form (See Schedule C) stating the project can be completed by March 31. 2018. 3.3 The Ultimate Recipient must demonstrate its incrementality by providing its total value of capital expenditures for water and wastewater system projects for 2016 and 2017. 3.4 The Province reserves the right on behalf of the Government of Canada to request additional information for review and approval purposes. 4.0 ENVIRONMENTAL ASSESSMENT 4.1 Federal Environmental Assessment The Canadian Environment Assessment Act 2012 and its regulations are the legislative basis for the federal practice of environmental assessment. A Federal Environmental Assessment (FEA) is a process to evaluate the environmental effects and indentify measures to mitigate potential adverse effects of a proposed project. The Act ensures that the environmental effects of a project are carefully reviewed before a federal department/agency makes a decision to allow the proposed project to proceed. An FEA will be required under CEAA, 2012 if the project meets the definition of a designated project and or is it located on Federal lands. Is it a designated project? Designated projects can be found on the Regulations Designating Physical Activities: http://laws-lois.justice.gc.ca/eng/regulations/sor-2012-147/page-1.html#doccont Only projects on the designated project list require FEA or project designated by the Minister due to potential for environmental effects or pubic concerns. Should the Project meet the definition of a designated project, applicants must provide to the Canadian Environmental Assessment Agency a description of their proposed project to initiate the process. Is the Project on federal Lands? Projects on federal lands are subject to an assessment of environmental effects. Information must be provided to BCF-SCF program staff on whether or not the project will be located on federal lands. Applicants must engage with the federal lands owner to establish the process and requirements to meet CEAA, 2012. 4.2 Other Regulatory Considerations April 2016 _ version 1 Page 6
Projects must meet all applicable federal and provincial environmental legislation and standards. Even though a project is excluded from a review under the Canadian Environmental Assessment Act, it may require permit or approvals from local, regional or provincial government agencies. It is the applicant s responsibility to ensure that any additional approvals and permits are obtained. 5.0 ABORIGINAL CONSULTATION Applicants may be required to consult with Aboriginal groups if the project is located in an area where Aboriginal communities have potential or established Aboriginal or Treaty rights. It is the responsibility of the Applicant to determine whether or not the project requires consultation with Aboriginal groups. Information must be provided to CWWF program staff on whether or not the project will be subject to Aboriginal Consultation. 6.0 COMMUNICATIONS Communications continues to be an important part of infrastructure programs. When a project is approved, and the contract is signed by the applicant (Ultimate Recipient), the contract always includes a communications section that binds the recipient to comply with certain requirements. Some of these have costs which are eligible for reimbursement, but only if the recipient has included them in the original project costs. Please see Schedule B for the communications requirements. An example of these communication costs is signage. It is normal that Federal and Provincial signage is required for all projects. That cost should be estimated and included in the project cost on the application. Please contact the Department of Transportation, Infrastructure and Energy communication division at least 20 working days prior to any scheduled public events. The federal and provincial Ministers, or their designated representatives, regularly participate in the events, thus need time to schedule for such an occasion. April 2016 _ version 1 Page 7
SCHEDULE A - ELIGIBLE PROJECT CATEGORIES Eligible projects will be for the new construction, renewal, rehabilitation or enhancement of infrastructure for public benefit. 1.0 Eligible Project Categories i. Water ii. Wastewater iii. Stormwater 2.0 Eligible Project Funding sub-category i. Capital projects for the rehabilitation of water treatment and distribution systems, and wastewater and storm water collection, conveyance and treatment systems; ii. Separation of existing combined sewers and/or combined sewer overflow control; iii. Initiatives that support system optimization and improved asset management including studies and pilot projects related to innovative and transformative technologies; iv. Design and planning for upgrades to wastewater treatment infrastructure to meet federal regulatory requirements; and v. New construction projects, including the construction of naturalized systems for management and treatment of wastewater and storm water, if the projects will be completed within the program timeframe. 3.0 Outcome / Performance Indicators 3.1 Water Specific Indicator CWWF Outcome Indicator a) Number of water treatment facilities that have improved water quality as a result of funded investments b) Number of water treatment systems that have met or exceeded applicable regulations and guidelines as a result of funding c) Number of drinking water systems that have eliminated a boil water advisory as a result of funded investments d) Number of funded water treatment plans and studies that have resulted in identified capital projects that are either included in capital planning documents with associated funding or that are in the process of being implemented April 2016 _ version 1 Page 8
e) Life Cycle Cost of applicable water treatment systems after construction f) Average number of years of useful life remaining on applicable water treatment assets after end of construction 3.2 Wastewater/Stormwater Specific Indicator a) Number of systems that have improved the quality of wastewater effluent or storm water discharge as a result of funded investments b) Number of wastewater systems that have met or exceeded applicable regulations and guidelines as a result of funding c) Number of wastewater systems that have increased their level of treatment as a result of funding d) Number of funded wastewater plans and studies that have resulted in identified capital projects that are either included in capital planning documents with associated funding or that are in the process of being implemented e) Life Cycle Cost of applicable wastewater treatment systems after construction f) Average number of years of useful life remaining on applicable wastewater treatment assets after end of construction g) Average number of years of useful life remaining on applicable storm water assets after end of construction 3.3 Incrementality a) Total value of capital expenditures for water and wastewater system projects for 2016 b) Total value of capital expenditures for water and wastewater system projects for 2017 SCHEDULE B ELIGIBLE and INEIGIBLE COSTS A) Eligible expenditures will include only the following: a) Eligible Expenditures Eligible Expenditures will include the following: i. All costs considered by Canada to be direct and necessary for the successful implementation of an eligible Project, excluding those identified under Schedule B.1 g) (Ineligible Costs); April 2016 _ version 1 Page 9
ii. Costs of Aboriginal consultation, and where appropriate, accommodation; and iii. Cost incurred between April 1, 2016 and March 31, 2018. b) Ineligible Costs Ineligible costs include the following: i. Costs incurred prior to April 1, 2016 and costs incurred after March 31, 2018 ; ii. Costs incurred for cancelled projects; iii. Land acquisition; leasing land, buildings and other facilities; leasing equipment other than equipment directly related to the construction of the project; real estate fees and related costs; iv. Financing charges, legal fees and loan interest payments, (, including those related to easements (e.g. surveys); v. Any goods and services costs which are received through donations or in kind; vi. Provincial sales tax and Goods and Services Tax/Harmonized Sales Tax, for which the Ultimate Recipient is eligible for a rebate, and any other costs eligible for rebates; and vii. Costs associated with operating expenses and regularly schedule maintenance work. April 2016 _ version 1 Page 10
SCHEDULE C - PROJECT DECLARATION In the matter of submitting the application titled (Project Title) priority number as submitted to the Province of Prince Edward Island, (Project Priority#) for funding consideration under the Clean Water Wastewater Fund (CWWF); I,, in the County of Chief Administrative Officer (Title) (Queens, Kings, Prince) of the Province of Edward Island along with the (Circle one that applies) municipality s Consultant identified as, (Name of Consultant) declares the following: (Consulting Firm Name) 1. We understand that must be (Project Name) completed by March 31, 2018, if it is approved by the federal government. 2. We understand the municipality and consultant, if providing project management, that all claims to the Province must be submitted by June 30, 2018 to be eligible for reimbursement. 3. We identify the following possible risks to the completion with possible mitigation measures for each of these risks: RISK Mitigation Measure 4. We are both duly authorized by the (City/Town/ Community) (Circle one that applies) and the (Municipality s Name) (Consulting firms Name) to provided this project declaration. Dated this day of 20. Signature of Municipality Signature of Consultant April 2016 _ version 1 Page 11
SCHEDULE D ATTESTATION FOR PROJECT INCREMENTALITY In the matter of submitting the application titled (Project Title) priority number as submitted to the Province of Prince Edward Island, for funding consideration under the Clean Water Wastewater Fund (CWWF); I,, of the (Name) (Title) (City/Town/Community) of in the (Circle The Appropriate Municipal Type) (Municipality Name) county of (Queens/Kings/Prince) of the Province of Edward Island declares as follows: (Circle the appropriate county) I hold the position of with the (City/Town/Community) (Position Title) of and as such have knowledge (Municipal Type) (Circle the appropriate) of the matters set forth in this declaration and believe this declaration to be true. The project put forward for consideration meets the federal (Project Title) government s requirement of project incrementality under the Clean Water Wastewater Fund (CWWF). Under the CWWF project incrementality mean the project would not otherwise have been undertaken in 2016-17 or 2017/18 and/or a project that would not have been undertaken without federal funding. This condition has been met as of the date of this declaration. Declared at (City/Town/Community), in Prince Edward Island this day of, 20. (Signature) April 2016 _ version 1 Page 12