First Nations Clean Energy Business Fund — Equity Funding
BC, Canada
Funding for clean energy and capacity-building projects
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|maxCount
grant_single|deadlines
- grant_single|closingDateApril 30, 2024
grant_single|financingType
Grant and Funding
grant_single|eligibleIndustries
- grant_single|allIndustries
grant_single|grantors
- Government of British Columbia
grant_single|status
grant_card_status|closed
grant_single_labels|preview
Get up to $500,000 in equity funding to support a financially viable and resourced clean energy project with an Energy Purchase Agreement.
grant_single_labels|projects
The First Nations Clean Energy Business Fund provides funding for various capacity building and equity projects aimed at promoting clean energy initiatives within Indigenous communities in British Columbia.
- Community Energy Plans
- Pre-Feasibility and Feasibility Studies
- Training for Community Members
- Demand Side Management/Energy Efficiency
- Clean Energy Generation (small scale installation)
- Pre-Construction/Pre-Commercial Operational Date
- Investment in existing Independent Power Projects (IPP)
grant_single|admissibleProjectsExample
$150,000
Implement a solar panel system for a community center
$50,000
Initiate a training program on energy efficiency for members
$30,000
Develop a Community Energy Plan for the Indigenous community
$50,000
Conduct a feasibility study for wind energy potential
$150,000
Develop an energy-efficient lighting system for public buildings
$500,000
Invest in an existing hydroelectric IPP project
grant_single_labels|admissibility
Fund eligibility criteria restricts applicants to Indigenous communities in British Columbia falling into specific categories, and the project must be located in B.C. and not currently have an active FNCEBF Capacity or Equity Funding agreement.
- A First Nation “band” as defined by the Indian Act (Canada)
- A First Nation governing body, representing exclusively one or more First Nations
- Project must be located in B.C.
- Applicants should not have a current active FNCEBF Capacity or Equity Funding agreement
grant_eligibility_criteria|who_can_apply
Eligible entities for the First Nations Clean Energy Business Fund (FNCEBF) are restricted to Indigenous communities located in British Columbia. These communities must either be defined as a First Nation "band" under the Indian Act (Canada) or be a First Nation governing body representing exclusively one or more First Nations.
- First Nation “band” as defined by the Indian Act (Canada)
- First Nation governing body, representing exclusively one or more First Nations
grant_eligibility_criteria|eligible_expenses
Yes, there are eligible expenses for this grant. Below is a list of eligible activities and their associated funding limits:
- Community Energy Plans: up to $30,000
- Pre-Feasibility and Feasibility Studies: up to $50,000
- Training for Community Members: up to $50,000
- Demand Side Management/Energy Efficiency: up to $150,000
- Clean Energy Generation (small scale installation): up to $150,000
- Pre-Construction/Pre-Commercial Operational Date: up to $500,000
- Investment in existing IPP: up to $500,000
grant_eligibility_criteria|zone
The eligible geographic zones for the grant are Indigenous communities in British Columbia. Applicants must be located within this region to qualify.
- Indigenous communities in British Columbia
grant_single_labels|criteria
Yes, the evaluation and selection criteria for the First Nations Clean Energy Business Fund are present. Preference is given to applicants who demonstrate readiness, viability, and the potential to bring positive benefits to their communities.
- Can leverage matching equity funding from other funding sources.
- Demonstrate readiness and viability through completed feasibility studies, assessments, community energy plans, and/or community partnerships.
- Support clean energy developments in remote, off-grid, diesel dependent, or end-of-line communities.
- Demonstrate a strong emphasis on energy efficiency and/or greenhouse gas reductions.
grant_single_labels|register
- Step 1: Complete all fields of the FNCEBF Clean Energy Capacity Funding Application or the FNCEBF Clean Energy Equity Funding Application, found on the First Nation Clean Energy Business Fund website. Applications must be submitted prior to the last day of the month of each intake period (listed below) to be considered for funding for that specified period.
- April 2024
- Step 2: Prepare supporting documentation to submit with FNCEBF Application, including:
- Band Council Resolution, Tribal Council Resolution or Directors’ Resolution approving the project;
- Additional supporting documents may include but are not limited to:
- Detailed financial analysis
- Material/Contractor quotes
- Relevant feasibility or planning work already completed
- Letters of support from Neighbouring communities or municipalities
- Total project budget (if requested FNCEBF funding is for part of larger project)
- Letter of Intent or proof of communication with BC Hydro if pursuing an Electricity Purchase Agreement
- Permitting or license (water/land tenure) documents
- Step 3: Email application template and supporting documents as complete application package to FNCEBF.MIRR@gov.bc.ca.
- Step 4: Applications will be reviewed, and decisions made based on the strength of their application and the viability relative to other applications.
- Step 5: All applicants will be notified of a funding decision within 90 days of intake date.
- Step 6: Applicants who are selected to receive Capacity or Equity Funding will be required to sign a contribution agreement to receive funding. A MIRR representative will contact the applicant to explain the terms and conditions in the contribution agreement. The contribution agreement will include:
- a schedule of actual expenditures of the Capacity Funding; and
- deliverables to be submitted, reviewed and approved in order to initiate payments.
- Step 7: Once the funding has been approved, payment will typically occur within thirty business days of signing a Contribution Agreement. Interim payments may also be provided throughout the project as interim deliverables are received and approved by the Province, and there will be a holdback for final payment capacity funding of up to 25%.
grant_single_labels|otherInfo
Apply to this program
First Nations Clean Energy Business Fund: Empowering Indigenous Clean Energy Initiatives
Detailed Overview of the First Nations Clean Energy Business Fund (FNCEBF)
The First Nations Clean Energy Business Fund (FNCEBF) is a strategic initiative launched under the Clean Energy Act in 2010 by the Ministry of Indigenous Relations and Reconciliation (MIRR) in British Columbia. This fund is designed to promote increased Indigenous community participation in the clean energy sector, fostering opportunities within their traditional territories and treaty areas through capacity, equity funding, and revenue sharing agreements. The FNCEBF aims to support the development of clean energy projects, focusing on ownership, employment, and training within First Nations communities while also addressing environmental sustainability by reducing greenhouse gas emissions.
Background of the FNCEBF
The Clean Energy Act, which received Royal Assent on June 3, 2010, provided the legal framework for the creation of the FNCEBF. The fund was initially established with a $5 million appropriation in 2011. Notably, 50% of land tenure and water license revenues from new and eligible Independent Power Projects (IPPs) generating renewable energy has been allocated to the fund, making it self-sustaining. From fiscal year 2017/2018 to 2022/2023, this allocation increased to 55% under the FNCEBF Regulation. Additional financial support specifically for diesel displacement projects in remote and rural communities has further bolstered the fund, making it an essential tool in the pursuit of cleaner energy sources.
Objectives of the FNCEBF
The primary objective of the FNCEBF is to enable Indigenous communities to actively contribute to and benefit from the clean energy sector. The FNCEBF achieves this through three primary avenues: 1. **Capacity Funding**: This includes support for Community Energy Plans (CEPs), feasibility studies, community training, or business/negotiation planning related to clean energy initiatives. The maximum allocation for capacity funding is $50,000 per project, with a specific $30,000 cap for CEPs. 2. **Equity Funding**: This assists First Nations in undertaking their clean energy projects, whether through supply, acquiring equity positions, or implementing energy efficiency and demand-side management projects. Equity funding can reach up to $500,000, depending on the nature of the project. 3. **Revenue Sharing**: Based on new, net, incremental revenues to the government from water rentals, land rents, and eventually wind participation rents, revenue sharing agreements allow First Nations to benefit directly from clean energy projects within their territories.
Funding Priorities and Eligibility
Demand for FNCEBF funding is highly competitive, and applicants must meet specific criteria to be considered: - **Funding Priorities**: Preference is given to projects that can leverage matching equity funding from other sources, demonstrate viability through completed feasibility studies or energy plans, support clean energy developments in off-grid or diesel-dependent communities, and emphasize energy efficiency or greenhouse gas reductions. - **Applicant Eligibility**: Only Indigenous communities in British Columbia, defined as First Nations "bands" under the Indian Act or First Nation governing bodies representing one or more First Nations, are eligible. - **Project Eligibility**: Projects must be located in British Columbia and should not have an active FNCEBF Capacity or Equity Funding agreement. Eligible projects include community energy plans, pre-feasibility and feasibility studies, community member training, demand side management, small-scale clean energy generation, pre-construction activities, and investments in existing IPPs.
Application Process
- **Submission of FNCEBF Application**: Applicants must complete all required fields in the FNCEBF Clean Energy Capacity or Equity Funding application form. This includes submitting supporting documentation such as Band Council Resolutions, detailed financial analyses, feasibility studies, letters of support, and permits.
- **Review and Decision Making**: Applications are reviewed based on their strengths and viability relative to other submissions. Decisions are communicated to applicants within 90 days of the intake deadline.
- **Contribution Agreement**: Successful applicants will enter into a contribution agreement detailing the schedule of expenditures and deliverables required to initiate payments. Payments typically occur within 30 business days of signing the agreement, with interim payments available upon submission of interim deliverables.
Revenue Sharing
Revenue sharing agreements under the FNCEBF ensure that First Nations receive a fair share of the economic benefits from clean energy projects within their territories. These agreements are based on the proportion of land and water rentals deposited into the fund. Specifically: - 55% of new incremental water and land rentals from eligible projects is deposited into the FNCEBF, with up to 68.18% of these funds being directly shared with the impacted First Nations. - For projects in overlapping territories, provincial water and land rentals from the project are shared between the affected First Nations.
2023 Updates and Future Outlook
As of September 2021, the FNCEBF has reset the Capacity Funding lifetime allocation per Nation, allowing communities that had previously maxed out their funding to pursue new initiatives or update existing projects. This reset ensures continued opportunities for all eligible First Nations. Important updates include the next intake deadline set for April 30, 2024, allowing ample time for interested communities to prepare their applications.
Conclusion
The First Nations Clean Energy Business Fund represents a pivotal effort by the British Columbia government to support Indigenous involvement in the clean energy sector. By providing funding for capacity building, equity participation, and sharing revenues from clean energy projects, the FNCEBF ensures that Indigenous communities can play a crucial role in the province's transition to sustainable and renewable energy sources. This initiative not only promotes economic development and environmental stewardship but also reinforces the commitment to reconciliation with Indigenous peoples.
