Applicant’s Guide - Hydro-Québec · Applicant’s Guide AVENUES – Marketplace Testing for...

Applicant’s Guide

AVENUES – Marketplace Testing for Energy-Efficient Technologies

© Hydro-Québec, Vol. 3, No. 1

September 2013

© Hydro-Québec 2013G1309E – September 23, 2013 2

Contents

Foreword .................................................................................................................................................... 3

Introduction................................................................................................................................................. 4

Section 1. Type of Projects Concerned............................................................................................... 5

Section 2. Eligibility.............................................................................................................................. 6

Section 3. Project Proposal Assessment Criteria................................................................................ 8

Section 4. Financial Assistance......................................................................................................... 10

Section 5. Administrative Conditions ................................................................................................. 11

Section 6. Project Process ................................................................................................................ 13

Section 7. References ....................................................................................................................... 15

Section 8. Notice................................................................................................................................ 16

Appendix 1: AVENUES – Detailed Application Form


Foreword

Hydro-Québec seeks to help its residential and business customers implement energy efficiency initiatives in keeping with the goals of its Energy Efficiency Plan (EEP).

The company’s programs cover many aspects of energy efficiency, from consulting services and energy-saving devices to demand-side management technologies and industrial process optimization.

In updating its energy efficiency programs, Hydro-Québec has launched two activities to provide financial assistance for technological and commercial innovation projects.

Proposals designed to collect or validate technical performance information, either for demonstration purposes or as part of an experimental project, come under IDEAS. Proposals aimed at testing new business strategies that promote the adoption of existing, proven technologies not yet widely used in Québec are eligible under AVENUES.

This guide is intended for those who wish to propose a project under AVENUES – Marketplace Testing for Energy-Efficient Technologies.

For more information about our energy efficiency programs, visit our Web site.

Programs under the Energy Efficiency Plan (EEP)

www.hydroquebec.com/residential/ www.hydroquebec.com/business/

Technology innovation projects (IDEAS) www.hydroquebec.com/business/energy-efficiency/programs/innovation-projects/ideas/

Business innovation projects (AVENUES) www.hydroquebec.com/business/energy-efficiency/programs/innovation-projects/avenues/


Introduction

Hydro-Québec wishes to test the feasibility and acceptability of new business strategies that focus on energy-efficient technologies to optimize electricity use or demand-side management. It also wants to assess the efficiency, desirability and cost-effectiveness of these strategies.

Through AVENUES, Hydro-Québec provides financial assistance for pilot projects that have the potential to promote the emergence of energy-efficient technologies in the markets it serves.

The purpose of AVENUES is to identify and overcome the barriers that hamper commercialization of proven energy-efficient measures or technologies. One of its objectives is to continuously improve the business strategies that are already part of Hydro-Québec’s programs under the Energy Efficiency Plan. Projects covered by AVENUES must generally be carried out within 12 months. Funding is available to cover all eligible costs of a pilot project.

Hydro-Québec welcomes proposals that involve partnership with other financial, commercial and technical interests, such as universities, federal and provincial programs, associations, foundations and manufacturers.

Creative avenues for business

Hydro-Québec believes in providing avenues for its customers to find new ways of implementing existing energy-efficient products and technologies, with a view to ensuring they will be adopted quickly by the market.

The company welcomes project proposals submitted under either of two options:

� Unsolicited projects. Hydro-Québec will consider at any time unsolicited proposals that are in line with AVENUES objectives and parameters. This guide is designed to take you through the procedure for this type of proposal.

� Requests for proposals. Hydro-Québec anticipates periodically issuing requests for proposals (RFPs) in given areas of energy efficiency. If you are interested in responding to an RFP, please refer to its special conditions.


Section 1. Type of Projects Concerned

Under AVENUES, Hydro-Québec wishes to support projects offering an original, innovative business strategy that will help develop and stimulate new or emerging energy efficiency markets.

Pilot projects must assess the efficiency of the proposed approaches to implementing tried-and-true energy-saving measures or power-demand management strategies that are not in widespread use in Québec. These innovative business approaches may also be aimed at convincing Hydro-Québec customers to adopt more energy-efficient habits.

Such pilot projects will test whether an initiative can be easily adopted by customers and is workable in a real context, measure its penetration rate as well as the actual power or energy efficiency gain, and estimate its costs and cost-effectiveness.

Projects proposed under AVENUES must target residential, commercial, institutional or industrial customers. They may involve energy savings, power-demand management or efficient energy use.


Section 2. Eligibility

2.1. Eligible projects

Any innovative concept, approach, strategy or process not yet in widespread use in Quebec that offers potential electricity savings through the use of proven energy efficiency technology or power-demand management is eligible for funding under AVENUES.

2.2. Ineligible projects

Projects that focus on electrical-generation technologies do not qualify under AVENUES. Projects that may have a negative impact on health, safety or the environment are similarly not eligible.

Note that projects involving Major Customers are not eligible, either. Major Customers can take advantage of Hydro-Québec’s Industrial Systems Program.

Fuel conservation projects are not eligible.

2.3. Eligible applicants

Any individual, company, government agency or nongovernmental organization that has a place of business in Québec is eligible.

A consortium of partners can submit a proposal as long as one of them is designated principal contractor. That partner will be Hydro-Québec’s contact for subsequent dealings related to the proposal. The business agreement setting up the consortium and naming the principal contractor must be part of the proposal, which must be signed by an authorized signing officer.

Note that the applicant or any of the members of a consortium of partners or any subcontractor involved in the project must not be listed in the register of enterprises ineligible for public contracts, under the Act Respecting Contracting by Public Bodies (R.S.Q., c. C-65.1) or the Election Act (R.S.Q., c. E-3.3).

2.4. Eligible costs

All the costs of setting up and running the pilot project are eligible for inclusion in the calculation of financial assistance, with the exception of those listed in Section 2.5.

Examples

� Promotion and advertising

� Leasing premises

� Making appointments and customer service

� Writing project progress reports

� Setting up tracking and management tools

� Any other cost deemed essential to carrying out the pilot project

2.5. Ineligible costs � Purchase of major equipment

� Purchase of vehicles

� Purchase of buildings


� Fines, tickets, legal proceedings against your organization and its operations

� Any cost deemed unreasonable and irrelevant to carrying out the pilot project

� Goods and services tax (GST) and Québec sales tax (QST) paid to suppliers of goods and services (since those taxes are recoverable by you, not Hydro-Québec)


Section 3. Project Proposal Assessment Criteria

All proposals received that satisfy the eligibility criteria will be reviewed by Hydro-Québec’s project review committee, which is composed of Hydro-Québec managers. Depending on the nature of the proposed project, the committee may choose to bring in an outside expert to help with the review. The criteria used in assessing proposals are described below.

3.1. Proposed business strategy

The efficiency and originality of the proposed business strategy are important factors considered in reviewing project proposals.

The committee evaluates the proposed measure for innovativeness and marketplace viability. Marketing, sales and customer service strategies are also considered.

The committee also assesses the potential for deployment across Québec, and how quickly that could be accomplished.

3.2. Costs

The committee evaluates the project based on the cost of each phase or activity. This includes the cost of the energy-saving measure as well as administration, management, customer service and promotional costs. The soundness of the overall cost structure is also assessed.

In addition, the committee looks at any anticipated revenues from the pilot project.

Last, the soundness of the approach and the cost estimation method are also considered under this heading.

3.3. Energy savings

This covers the project’s overall savings potential, along with the efficiency gain and service life for each individual application. The impact on power-demand management is also taken into consideration.

Potential energy savings resulting from province-wide implementation of the measure are also taken into account, as are the environmental impacts.

3.4. Qualifications and experience

Another important factor that the committee assesses is your qualifications, along with those of the project team, project manager and business partners.

The committee also assesses your experience, as well as that of the project team, consultants and suppliers involved in the proposed project. More specifically, the committee examines the relevant experience of the project manager and key personnel, as well as their knowledge in marketing and project management and their expertise in spheres directly related to the project.

The committee also looks at the credentials of your business and financial partners, along with the soundness of the organizational structure for the pilot project.


3.5. Overall quality

The clarity, precision and methodology of the proposal and the overall quality of the project are also considered.


Section 4. Financial Assistance

4.1. Financial assistance for each pilot project

The amount of financial assistance offered for each proposal may amount to as much as 75% of the project cost. The maximum amount that can be granted to you and your affiliates is $350,000, before taxes. It covers eligible project costs less any financial contribution made by you and your partners.

4.2. Your contribution

In your project proposal, you must disclose the amount and source of any other financial assistance that you have received or applied for from other sources for the project you are proposing, as well as any application for financial assistance already submitted to Hydro-Québec.

4.3. Payment of financial assistance

Financial assistance will be paid out as follows:

� A lump sum based on project needs when the agreement is signed

� Regular installments on receipt of invoices and supporting documents.1 For some projects, regular

installments will be conditional on your submitting regular reports and on approval of the reports by

Hydro-Québec

� A final installment corresponding to the holdbacks from the regular installments (10%) at the end of

the project, conditional on Hydro-Québec’s approval of the final report on the project

To receive financial assistance installments, you must submit an invoice and an accounting report

indicating all eligible costs paid to suppliers (see Section 2.4) and including all other supporting

documents.

You must issue an invoice indicating all eligible costs before Hydro-Québec can pay out your financial assistance. Since the tax authorities consider that you are rendering a service, any financial assistance you receive under AVENUES is subject to the goods and services tax (GST) and Québec sales tax (QST).

The terms and conditions of the financial assistance and invoicing will be set out in the agreement you sign with Hydro-Québec.

1. Hydro-Québec will hold back 10% of the scheduled amount of each installment. The holdbacks will be paid out at the end of the project once Hydro-Québec has approved the final report.


Section 5. Administrative Conditions

5.1. Hydro-Québec’s undertakings

Hydro-Québec

� undertakes to review all proposals received in response to AVENUES that meet the eligibility criteria;

� shall not be held liable for any damage or harm whatsoever arising from a project proposal;

� shall not reimburse any expenses incurred for the preparation of proposals or any negotiations that might be required to conclude an agreement between an applicant and Hydro-Québec;

� reserves the right to negotiate the content, costs, term and all conditions respecting the proposal submitted;

� reserves the right not to enter into an agreement with any selected applicant. In such a case, no damages of any nature whatsoever may be claimed from Hydro-Québec.

5.2. Applicant’s undertakings

You

� are responsible for proposing an original, innovative concept;

� shall carry out the pilot project within approximately 12 months of the starting date specified in the agreement;

� shall remain solely responsible for the results of the pilot project, no matter who else may have been involved;

� undertake to complete and submit to Hydro-Québec one or more detailed progress reports, as well as a final report;

� shall have the contents of any communication intended for target customers approved by Hydro-Québec;

� shall agree that the results and data originating from the pilot project shall remain the exclusive property of Hydro-Québec.

5.3. Conflict of interest

You must not have any conflict of interest or appear to have any conflict of interest. If you sign an agreement with Hydro-Québec, you must agree to avoid any situation that might place you in a conflict of interest or give the appearance of a conflict of interest.

5.4. Criteria for refusing proposals

Hydro-Québec reserves the right to reject, at its own discretion, any proposal received, especially any that are incomplete, fail to meet the requirements set out here, include false information or do not contain all the information required for an assessment. Hydro-Québec assumes no obligation of any sort towards applicants. Applicants acknowledge that they may in no way contest Hydro-Québec’s decision to accept or reject any proposal whatsoever.


5.5. Ownership of proposal

Proposals submitted and any associated documents shall remain the exclusive property of Hydro-Québec and will not be returned to you. You acknowledge that Hydro-Québec may at any time intervene in the area of the proposal you are submitting.

5.6. Signing agreement and starting pilot project

If your project is selected, you may not begin work on it before you and Hydro-Québec have signed an agreement drafted for this purpose or you have received official written authorization to begin work from a Hydro-Québec representative.


Section 6. Project Process

Step 1 – Submit proposal

Step 2 – Review of proposal

Step 3 – Sign agreement

Step 4 – Start pilot project

Step 5 – Submit progress reports

6.1. Step 1 – Submit proposal

To submit a project proposal under AVENUES, you must

� fill in the attached project proposal form (Appendix 1). An electronic version is available on Hydro-Québec’s Web site at www.hydroquebec.com/business/energy-efficiency/progr ams/innovation-projects/avenues/.

6.1.1. Submit the form to Hydro-Québec

Send the completed and signed project proposal form, along with all supporting documents, to [email protected].

You can also send in the form by regular mail to the address given below. An electronic version of the documents must be included in the submission.

Hydro-Québec Direction – Approvisionnement en électricité AVENUES Project Proposals 26e étage 2, complexe Desjardins, tour Est C. P. 10000, succ. Desjardins Montréal (Québec) H5B 1H7

6.1.2. Hydro-Québec acknowledges receipt

Hydro-Québec will send you a written acknowledgement of receipt of your project proposal form within five business days of receiving it.

6.2. Step 2 – Review of proposal

Upon receipt of a proposal, Hydro-Québec will review it to make sure, at this stage, that

� all the eligibility criteria are met and

� all the information required for assessment purposes has been provided.

Hydro-Québec may ask for further details. It also reserves the right to refuse any proposal that does not meet all the eligibility criteria or that is incomplete.


6.2.1. Recommendation of project review committee

The review committee will examine all eligible proposals received by Hydro-Québec on the basis of the project proposal assessment criteria (see Section 3). It will recommend to Hydro-Québec the projects it deems the most appropriate.

6.2.2. Final decision

Based on the project review committee’s recommendations, Hydro-Québec will notify applicants of the decisions regarding their proposals in writing. All decisions are final and cannot be appealed.

6.3. Step 3 – Sign agreement

If your project is approved, you must sign an agreement with Hydro-Québec setting out the obligations of the parties, the project costs, the amount of the financial contributions to be provided by partners, any special conditions, the terms of payment of the financial assistance from Hydro-Québec and the project timetable.

6.4. Step 4 – Start pilot project

The pilot project must start on the date indicated in the agreement.

Hydro-Québec shall not be required to pay out any money whatsoever before the two parties have signed an agreement.

6.4.1. First installment of financial assistance

Once the agreement has been signed, Hydro-Québec will pay out the first installment upon receipt of an invoice. The first installment is intended to cover the project start-up costs. It will amount to no more than 20% of the total project costs.

6.4.2. Periodic invoicing

Hydro-Québec will pay periodic installments, as set out in the agreement, upon receipt of invoices. The installments are to cover the actual incurred eligible costs of the pilot project.

6.5. Step 5 – Submit progress reports

6.5.1. Preliminary report at halfway point

You must submit a progress report when the pilot project is half completed. Depending on the nature of the project, other progress reports may be required by Hydro-Québec at different stages of project completion. The information to be provided in the reports will be specified in the agreement. Payment of the periodic installments will be conditional on receipt and approval of the reports by Hydro-Québec.

6.5.2. Final report

Final payment will be issued at the end of the pilot project, after receipt of the final report, as required by Hydro-Québec. The information required in this report will be specified in the agreement.


Section 7. References

This guide and the project proposal form can be downloaded from www.hydroquebec.com/business/energy-efficiency/progr ams/innovation-projects/avenues/.

If you have any questions, feel free to e-mail us at TU

TU TU

[email protected] H


Section 8. Notice

Terms and implementation of AVENUES

Hydro-Québec reserves the right to

� reject any project proposal that does not meet the AVENUES criteria;

� reject any proposal in an area that has already been the subject of a study or pilot project;

� request changes to a project proposal;

� limit the number of projects in order to remain within the AVENUES budget;

� decide on the eligibility of any project proposal, its potential savings in terms of energy or demand-side management, and the eligible costs;

� interpret AVENUES terms and conditions;

� cancel AVENUES at any time or make changes to it without notice.

Hydro-Québec will provide financial assistance only to the applicant who signs an agreement regarding the proposed project under AVENUES and who then implements the project.

Tax issues

Payments made by Hydro-Québec under AVENUES are normally subject to the goods and services tax (GST) and the Québec sales tax (QST). Accordingly, Hydro-Québec cannot issue a financial assistance payment until the applicant has sent it an invoice indicating the specific amounts of each tax (see Section 4.3).

For income tax purposes, the financial assistance paid out under AVENUES is an inducement that should, depending on the case, reduce the cost or capital cost of an asset, reduce the amount of outlay or expense, or count as income to the recipient. It is your responsibility to determine the tax status of the financial assistance you receive. Unless you are exempt from paying tax, Hydro-Québec will issue a Relevé 27 – Paiements du gouvernement [government payments] tax slip, as required under Québec’s Taxation Act, stating the amount of financial assistance paid to you.

© Hydro-Québec – 2013G1309E — September 23, 2013

AVENUES – Marketplace Testing for Energy-Efficient Technologies

Project Proposal AVENUES – Detailed Application Form

Submitted to

Hydro-Québec

For internal use only ��

Project No.

PS –

Y M D

Project Proposal

2/10


Project No.

PS -

Y M D

963-0642

Notice

In submitting this proposal, you, the applicant, acknowledge that you have read all of the provisions of the AVENUES Applicant’s Guide and have fully understood their meaning and intent. You agree to comply with them and with all other conditions, arrangements and agreements stipulated herein.

If you disagree with any of the provisions in the Applicant’s Guide, you must state the nature of your objection and include a proposed amendment in your proposal. This may be done in Section 9 of this application form. Any request to amend a provision may make it more difficult for Hydro-Québec to award financial assistance to you. Section 1 – Identification 1.1 – Applicant Applicant’s name

Address

Occupation

E-mail

Telephone Ext.

Fax

Representative’s name (if applicable)

Address

Position

E-mail

Telephone Ext.

Fax

1.2 – Project Project name

Target markets

Residential Commercial Institutional Industrial

Outline your proposal for a pilot project

To have the project file number and date entered on every page or automatically updated, select Print Preview from the File menu.

Project Proposal

3/10


Project No.

PS -

Y M D

963-0642

1.3 – Project team (Give the names, roles and responsibilities of each team member. List any partners involved in the project, specifying the roles and responsibilities of each.)

Team members Roles and responsibilities

Partners Roles and responsibilities

Section 2 – Description of pilot project 2.1 – Project (Describe your pilot project in detail, explaining how it is innovative and original. Explain the various strategies you plan to

use, including those associated with marketing, communications, customer services, etc. Specify how your strategies will ensure the success of your project. Give reasons why it is important to carry out this pilot project.)

2.2 – Objectives (Describe the qualitative and quantitative objectives of your project.)

Project Proposal

4/10


Project No.

PS -

Y M D

963-0642

2.3 – Sample (Provide detailed information on the sample you plan to use when you carry out your pilot project, such as typical users, typical buildings, geographic area, and sample or population size.)

2.4 – Estimated energy efficiency gains and other assumptions (Describe the assumptions underlying your project. Estimate the

energy efficiency gains that will result from your proposed project. Describe the estimation models or calculation tools used to quantify the data in your proposal. Add any comments that you feel would be useful to us in reviewing your proposal.)

2.5 – Description of organizational structure (Sketch an organization chart of the project team.)

Project Proposal

5/10


Project No.

PS -

Y M D

963-0642

Section 3 – Timetable 3.1 – List all the stages in your pilot project, from planning to writing the final report. Draw up a timetable with starting and ending dates

for each of the stages.

Stage/Activity Timetable

Start date End date

3.2 – Indicate the main risks that could interfere with completing the project or respecting the timetable. Provide a contingency plan, if

available, that will make it possible to mitigate those risks.

Stage/Activity at risk Mitigation method

3.3 – Add any comments about your project’s stages and timetable that you feel would be useful to us in reviewing your proposal.

Project Proposal

6/10


Project No.

PS -

Y M D

963-0642

Section 4 – Qualifications of applicant, project team and partners 4.1 – Applicant ( Indicate your experience in connection with the type of project you are proposing. Define your roles and

responsibilities in the project. Explain how your expertise or past achievements will enable you to complete the project successfully. Attach your curriculum vitae, as needed.)

4.2 – Project team (Describe the experiences and past achievements of each team member that could be relevant to this project.

Indicate their knowledge of marketing, project management or any other area relevant to the project. Explain how your team will be able to complete the project successfully. Attach team members’ curricula vitae, as needed.)

Team members Experience and knowledge

4.3 – Partners (Describe the experiences and past achievements of each partner that could be relevant to this project. Attach partners’

curricula vitae, as needed. Provide copies of partnership agreements, if any.)

Partners Experience and knowledge

Project Proposal

7/10


Project No.

PS -

Y M D

963-0642

Section 5 – Cost estimate 5.1 – Anticipated costs ( Provide details of anticipated costs for each stage or activity of your proposed pilot project. Specify whether

costs are fixed or variable. Explain how you arrived at estimates, when necessary. As needed, attach any report that would be useful to us in analyzing costs.)

Details $

Total cost of pilot project (before taxes, revenue and various financial contributions)

5.2 – Goods and services for which there will be no expenditures (List goods and services supplied by your or your partners for

which there will be no expenditures for the project.)

5.3 – Main assumptions (List and explain the main assumptions underlying your cost estimates for stages or activities, such as hourly

wages, number of hours required, rent or cost of leasing equipment. Attach any information that would be useful to us in analyzing your estimates.)

Project Proposal

8/10


Project No.

PS -

Y M D

963-0642

5.4 – Table summarizing costs per activity (Fill in the table below, indicating the costs of the main activities related to the pilot project.)

Summary table – Costs per activity

Activities Costs ($) Relative share (%)

Total cost of pilot project (before taxes, revenue and various financial contributions)

Section 6 – Financial assistance calculation 6.1 – Indicate the financial assistance you are applying for in relation to the total cost of your pilot project, taking into account

anticipated revenue and contributions from partners.

Items $

Total cost of pilot project (same as Section 5.4)

Estimated revenue ( )

Financial contributions from partners or any other source ( )

Financial assistance requested from Hydro-Québec

Project Proposal

9/10


Project No.

PS -

Y M D

963-0642

6.2 – Provide any further explanation of why you are requesting financial assistance from Hydro-Québec that you feel would be useful. (Attach any supporting documents that would be useful to us in reviewing your project proposal.)

Section 7 – Potential for expansion Indicate how your project could be expanded throughout Québec. (Estimated adoption rates, potential energy savings, etc. Describe how quickly and easily your concept/strategy could be deployed province-wide.)

Section 8 – Environmental impact List the environmental impacts of your proposed project.

Project Proposal

10/10


Project No.

PS -

Y M D

963-0642

Section 9 – Additional information Explain how Hydro-Québec would benefit from providing financial assistance to your pilot project. Include any other information that you feel would help us review your proposal (economic spin-offs, energy impact, experiments/studies already done, benchmarking, etc.). (Attach any supporting documents that would be useful to us in reviewing your project proposal.)

Signature Person who completed form Name

Title

Telephone

Fax

E-mail

Applicant’s signature (applicant must have signing authority) Name

Title

Signature Y M D

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