Resource Assessment Grants 2015/16

Resource Assessments

Guidelines and Application Form

1. Resource Assessment Overview

The resource assessment grants initiative provides funding for eligible businesses to review their activities and to identify and implement energy and materials efficiency improvements.

Resource Assessment

Sustainability Victoria is offering grants to eligible business to cover 50% of the cost to engage a consultant to conduct a resource assessment of their operations. Grants are capped at $5,000 for an energy assessment and $10,000 for a materials or combined materials and energy assessment.

These assessments will help businesses to identify the greatest materials or energy impact areas and to develop targeted actions in those areas where the greatest opportunities to save money and create value exist.

Implementation support

Businesses that have an assessment conducted are eligible for a bonus payment of up to $3,000 toward the cost of:

o Purchasing and installing capital equipment that reduces resource use, (except lighting) recommended in the assessment report, OR

o Engaging a consultant to conduct a feasibility or business case study of one or more of the recommendations from the assessment report, OR

o Engaging a consultant to manage or provide technical advice, to implement one or more of the recommendations from the assessment report.

Applications for the resource assessment funding will at close 4pm, Friday 4 December 2015.

2. Eligibility

2.1 The applicant (Business)

Applicants must meet the following criteria to be eligible for the resource assessment grants:

Have a current Australian Business Number (ABN) If you are the owner of multiple businesses, only one application for one business is permitted The project must not have already commenced, or commence prior to funding being contracted Project must be completed by 31 May 2016 Business must pay the balance of the consultant’s fee over and above the Sustainability Victoria

grant Employ fewer than 200 people. For small businesses (defined as having fewer than 20

employees), additional eligibility criteria applies* Have not had any Environment Protection Authority (EPA) or Victorian WorkCover Authority

violations in the past five years, or any other breaches considered significant by Sustainability Victoria

Agree to comply with Sustainability Victoria’s Funding Terms and Conditions

Agree to comply with Sustainability Victoria Terms of Participation in - Grant Programs Not be a Commonwealth, State or local government entity including education institutions

(independent, Catholic and government schools) Not be an industry or professional association

* Additional criteria for small businesses

Businesses with fewer than 20 employees that have high energy or materials use are eligible to apply for funding provided they can demonstrate:

An annual energy spend of at least $50,000 (excluding transport fuel costs) for site energy use , or

The potential to significantly improve materials efficiency.

2.2 The project

An eligible project must be implemented in Victoria. Funding is provided for businesses to engage a consultant (assessor) to undertake an energy or materials efficiency assessment OR combined materials and energy efficiency assessment.

Materials efficiency refers to the more efficient use of materials, or the delivery of more finished product or service per unit of raw materials.

Energy efficiency refers to the more efficient use of energy, or the delivery of a more finished product or service per unit of energy input.

The scope of the proposed assessment should be tailored to the business, and developed by the assessor, in consultation with the business.

In undertaking the assessment and in developing the resource assessment report, the assessor must consult with the business to ensure that the opportunities identified for resource efficiency and the recommendations are appropriate to the business.

It is expected that the resource assessment will be completed within three months of signing the contract and all projects must be completed by 31 May 2016.

Materials Assessments

Materials efficiency offers many opportunities for increased value creation, as well as cost savings. A materials assessment is not the same as a ‘waste assessment’, although it will likely involve some assessment of waste flows and quantities. Businesses and assessors should consider both the direct material savings (e.g. reduced material use, reduced waste) and the indirect benefits (e.g. water savings, increased product quality, reduced equipment down time, OH&S, productivity gain, access to new markets)

Materials assessments will involve the mapping of material(s) flow, in order to quantify material(s) movement and loss at different stages of the business processes, and identify potential opportunities for materials efficiency. The scope should focus on the key material(s) (up to 3) and/or the business process(es) that offer opportunities for materials efficiency

There is currently no recognised standard for materials assessments. Assessors must propose a scope and methodology that are tailored to the business’ operations and are consistent with Sustainability Victoria’s Conducting a Resource Assessment document, summarised in Section 6

The materials assessment report must meet the minimum requirements of Sustainability Victoria as set out in Section 6 of this document as current at the time of application

Energy Assessments

Energy assessments will identify the sources of energy, the amount of energy supplied, and where it is used. The scope should focus either on the whole site or on key energy use areas

Energy assessments and assessment reports must be tailored to the business and the methodology used must be consistent with a Type 2 AS/NZS3598 Part 1 or 2 :2014

In calculating the potential financial benefits of any proposed recommendations, the assessor must also provide guidance on relevant financial incentives available, such as the Victorian Energy Efficiency Target (VEET) scheme opportunities or other relevant schemes

Materials & Energy Assessment Materials component as per details above, however the energy component need only be

consistent with Type 1 AS/NZS 3598 Part 1 or 2 :2014

2.3 Implementation support bonus

Businesses that receive funding and have an assessment conducted are eligible for a bonus payment of up to $3,000 towards:

Purchasing and installing capital equipment, except lighting and lighting controls, recommended in the assessment report, OR

Engaging a consultant to conduct a feasibility or business case study of one or more of the recommendations from the report, OR

Engaging a consultant to manage implementation or provide technical advice on implementing one or more of the recommendations from the report.

The following criteria must be met:

Implementation costs must be greater than $1,500 to receive the bonus. The bonus will pay $1 for $1 over $1,500 and up to $3,000

Implementation support work must be completed before 31 May 2016 Evidence of payment and implementation (e.g. photos), estimated or actual quantified savings

and dollars saved and a copy of any extra study report, must be provided

2.4 What won’t be funded?

Funding will not be provided for resource assessments that:

Focus on resources other than energy or materials, such as waste

Are focused on opportunities for changing an existing energy source to a new energy source without increasing energy efficiency (e.g. recommendations for renewable energy technologies or fuel switching)

Focus on fleet or vehicle upgrades and transport fuel efficiency Projects already commenced or are completed, at the time of signing the funding agreement Are being undertaken in order to comply with regulation Are seeking funding which exceeds 50% of the total project cost for the assessment Are not located in Victoria

For the implementation support bonus, funding will not be provided for projects that:

Cost less than $1,500 to implement Are lighting upgrades Are implemented or carried out after 31 May 2016 Involve the replacement of appliances not used in core business activities, such as staff

refrigerators and dishwashers Involve staff training or other educational activities

2.5 Who carries out the materials and/or energy assessments?

Businesses will be responsible for engaging a consultant (assessor) of their choice to undertake a resource assessment.

Sustainability Victoria is unable to provide recommendations for assessors or other service providers. However the guide to Selecting a Resource Assessor provides suggestions on how to locate a suitable assessor.

3. Funding

3.1 Level of funding

The resource assessment grant provides eligible businesses with grants of:

Type of assessment Maximum grant available Sustainability Victoria’s contribution as percentage of total cost of assessment

Energy $5,000 50%Materials $10,000 50%Materials & energy $10,000 50%

The $3,000 implementation support bonus is additional to these amounts.

3.2 Business contribution

Business must pay the balance of the assessment fee over and above the Sustainability Victoria grant e.g. consultant fee is $22,000, sustainability funds up to $10,000, the business must pay $12,000.

Note: In-kind expenses are not eligible as business contribution

3.3 Eligible project expenditure

Eligible project expenditure includes:

Consultants (assessor) or technical expertise Contractor labour

Please refer to FAQs or contact grants.enquiries@sustainability.vic.gov to discuss eligibility.

4. Assessment Criteria

4.1 How will my application be assessed?

The resource assessment grants is an open application process. Sustainability Victoria will assess applications as they are received until closing at 4pm, Friday 4 December 2015.

Sustainability Victoria initially assesses whether the business is eligible to apply, in accordance with the eligibility criteria set out in Section 2.

Sustainability Victoria will further evaluate the eligibility and merit of the application, by:

Value for money: The proposed works including the consultant fee are likely to represent value for money for the business. Value for money means, the anticipated savings that can be realised through undertaking the assessment should significantly exceed the total cost (including any grant funding) of the assessment

Scope and methodology: The proposed works, in particular the scope and methodology, is consistent with an energy or materials assessment and will enable the assessor to prepare the assessment report to the minimum standard specified in Section 6

Demonstrated skills of consultant : The proposed works will be carried out by an individual and/or organisation that has demonstrated via the scope of work required with the application, that it has the relevant skills and experience to undertake the work. Note: Materials efficiency is an emerging industry, and it is not a requirement that the assessor has previously consulted on projects specifically called ‘materials efficiency’

4.2 Implementation support bonus

On receiving evidence from the business that it has either implemented one or more of the recommendations arising from the assessment report or that it has engaged a consultant to manage implementation or provide technical advice. Sustainability Victoria will evaluate the eligibility and merit of a business application for the bonus. Sustainability Victoria may request a site visit and additional information not specified about the implementation.

5. Application Process

5.1 How do I apply?

Applicants should complete the following steps:

Step 1 – Check if your business is eligible to apply (see section 2.1 above)

Step 2 – Check the eligibility of your project (see section 2.2 above)

Step 3 – Read the Funding Terms and Conditions to ensure that you can meet them

Step 4 – Complete the application form

All sections of the application form must be completed in full and all requested attachments provided

The application form must be signed by a person (e.g. Chief Executive Officer or Director) with delegated authority, attach a scanned copy to the application

Step 5 – Submit your application to Sustainability Victoria before 4pm, Friday 4 December 2015

Email your application to: grants.applications@sustainability.vic.gov.au The email subject line should read “Resource Assessment Grants 2015/16 Application” Submit the signed application form as a PDF document, all other attached documents should be

submitted in Word or Excel format Emails must not be greater than 10 MB Sustainability Victoria will return a formal email message confirming electronic receipt of

applications

5.2 Required attachments

Resource Assessment

Scope of work or proposal including fee from the consultant (required) Value for money statement prepared by the consultant and business (required) Signed letter of support from the business on letterhead, supporting the application and the

consultant, as stated in the value for money statement Document/s to demonstrate the business strategy rationale for undertaking the assessment

Implementation support bonus

The bonus will be included as part of the milestone payments schedule in the contract for a resource assessment. There is no application form.

Small business applicants

Please note: Applicants with fewer than 20 employees applying for an energy assessment must also provide evidence that the current energy spend (excluding transport fuel costs) is $50,000 or more per annum – e.g. by providing a copy of a recent electricity bill(s).

5.3 When will I be notified of the outcome of my application?

Businesses will be notified of the outcome within four (4) weeks of Sustainability Victoria receiving the application, provided all of the required information has been submitted.

6. Guidance for Assessors – Resource Assessment Reports

The following information provides guidance to assessors for completing a resource assessment report. We recommend that you refer to Sustainability Victoria’s Conducting a Resource Assessment document for the minimum requirements for the assessment and report.

The report should be written in a style and to a level of detail that is appropriate for the business, in particular the decision makers of the business (this may be the owner, financial controller, board, or others, as may be applicable) to understand the recommendations and decide how to progress with potentially implementing the recommendations.

Additional requirements for assessment reports

The report must contain an Executive Summary that sets out key findings so that the business decision makers can understand the context of the work. The Executive Summary must include:

The total energy used (GJ, gigajoule) or quantity of the key material/s (preferably in kg or tonnes)

The total cost of energy or of each key material

The total cost expressed as a percentage of operating costs

For materials assessment, the purchase to disposal ratio for the key wastes and the true cost of waste

A table including four or five key recommended actions that make most business sense in terms of effectiveness, cost, ease of implementation and pay-back time showing the implementation cost, dollar benefits, quantity of resources saved, percent of baseline for that resource and pay back

Introduction and scope

The scope of the study (the “what” was studied) and any relevant background or rationale (the “why”) for choosing this scope. State what material(s) were studied. Include a process diagram or site layout plan if this is helpful to describe what business processes or areas were included

The scope should match what was proposed in the consultant quote/proposal submitted with the business’ application. If the scope has changed, the reason for the change must be explained

Methodology/approach

Explanation of “how” the resource assessment was undertaken. State what key activities wereundertaken, such as data collection, site observation, data analysis, use of any industry specific toolsor techniques, or a workshop facilitated by the consultant. Data collected and analysed should include, but not be limited to:

A materials input survey, including the costs of inputs Review of recent waste collection charges relevant to the scope of the study such as the

volume/weight of waste removed, cost per unit of waste, transport costs and landfill gate fees Methodology/approach should be consistent with what was proposed in the consultant

quote/proposal that was submitted with the business’ application. If the methodology/approach has changed during the course of the assessment, the reason for the change must be explained

“Who” from the business was involved (name and role) List of data/information used in the assessment, such as inventory data, production schedules,

financial information, etc. As applicable, state the relevant date(s) of currency

Key observations and assessment of material flow

Relevant to the scope, material flow diagram(s) and/or other tabulated data that maps the flow of material(s). Material(s) should be quantified by the physical unit i.e. kg, tonnes, volume, etc. The basis used, i.e. one batch, two weeks, or one year, should be clearly stated. The level of accuracy of identified opportunities should be stated, and this should be within +/- 20% for materials assessments

The key observations made in relation to where and how the material is used, especially any areas identified that present opportunities for materials efficiency improvement

Indicative financial costs of all the material(s) studied, at each key stage of the material flow. For example, if the material is heated in one process stage, add in the cost of energy to heat

Recommendations

Recommendations (“actions”) proposed for materials efficiency. Each action should be described to a level of detail for the business to understand: the reason for each recommended action; what would be required to implement the action; the cost required to implement; any potential implementation issues and the estimated direct and indirect benefits. For each action, clearly state the estimated quantified and dollar savings, the cost to implement the actions, and simple payback

Summary of the actions, presented in a table that ranks the actions according to the priority for business to implement. This priority should be developed by the assessor in consultation with the business, and approved by the business before the report is finalised

More information

If you have any queries regarding this program contact:

Email: grants.enquiries@sustainability.vic.gov.au and quote “Resource Assessment Grants 2015/16”

Phone: 1300 363 744 and ask to speak to a grants support representative.

Refer To: FAQs or visit website: http://www.sustainability.vic.gov.au

Information in this document is current as at August 2015.

While all professional care has been taken in preparing this document, Sustainability Victoria accepts no liability for loss or damages incurred as a result of reliance placed upon its content. Sustainability Victoria reserves the right to modify or withdraw the program without notice. Please check our website for current information.

7. Reporting

As evidence of completion of the assessment the business must submit:

A copy of the completed resource assessment A copy of the invoice from the assessor A tax invoice to Sustainability Victoria for the agreed milestone payment as per the contract

Resource Assessment Grants

Application Form

Section 1 – Contact information

1.1 Applicant information

Name of legal entity:

Trading name: (if different to legal entity name)

Address:

Postal address: (if different to address)

1.2 Contact person

First name:

Last name:

Position:

Email:

Telephone:

Mobile:

Section 2 – Company details

2.1 Australian Business Number (ABN):

2.2 Nature of applicant entity:

Company Incorporated association Partnership Sole trader Other (please specify)

2.3 Number of employees:

1-19* 20-199

* Notes for small business applicants:

Applicants that are classified as a small business (i.e. have fewer than 20 employees) are eligible to apply for funding provided they can demonstrate an annual energy spend of at least $50,000 (excluding transport fuel costs) or the potential to significantly improve materials efficiency projects. Evidence is to be provided at Section 7.

2.4 Briefly describe the core activities of your business, including key products or services (25 words or less):

2.5 How did you hear about the program?

Industry newsletter or email Newspaper advertisement or article Sustainability Victoria website Email from Sustainability Victoria Word of mouth From a consultant Other (please specify)

Section 3 – Project overview

3.1 What is the focus of the assessment?

Materials efficiency Energy efficiency Materials and energy efficiencies

3.2 What is the project location (site address)?*

*To be eligible for funding, the project must be located in Victoria

3.3 Proposed timing

When will the project commence?

When will the project be completed? It is expected that the resource assessment will be completed within three months of signing the contract and all projects must be completed by 31 May 2016.

3.4 Explain the rationale for the assessment. Why does this make good business sense?

3.5 Describe the scope of the assessment. What are you planning to do?

(300 words maximum)

Section 4 – Demonstrating value for money

This section is to be completed by all applicants.

Value for money is one of the criteria that Sustainability Victoria assesses when evaluating your application. The anticipated savings that can be realised through undertaking the works should significantly exceed the total cost (including any grant funding) of the works.

To assist Sustainability Victoria to evaluate your application efficiently, please ask your consultant to explain to you how engaging a consultant is likely to deliver value for money for your business.

If possible, ask the consultant to prepare a “value for money statement” that outlines how the proposed works are expected to deliver value for money to your business. The consultant should use its knowledge and experience to provide an indication of likely opportunities for efficiency and estimates of the anticipated financial benefits that could be realised.

The value for money statement is a brief document (i.e. half an A4 page of dot points is sufficient) and estimates provided can be indicative ‘back of the envelope’ calculations.

If the consultant is unable to prepare the value for money statement, please tell us in your own words, what value the consultant will deliver, based on your conversations with the consultant.

For example, “We currently spend $150K per year on electricity and the consultant anticipates that we could save at least 10% (i.e. $15K) through various improvements, especially fixing leaks in our air compressor system and optimising controls on the chiller”. Or “Since expanding our production line we are currently experiencing higher rates of off-specification product. The consultant will investigate a number of potential process improvements focused on increasing in-specification production from 92% to 95%, and if achievable this would result in at least $80K of savings from increasing the quantity of saleable product and reducing waste”.

Please provide information below and/or attach a supporting statement to your application.

Section 5 – Budget and funding details

This section is to be completed by all applicants.

5.1 In the table below please indicate the budget for the proposed assessment, how much you are contributing and how much funding is being sought from Sustainability Victoria? (All figures should be exclusive of GST).

Note: Sustainability Victoria may provide up to 50% of the costs of the energy or materials assessment up to a maximum of $5,000 for energy assessments and $10,000 for materials or combined materials & energy assessments.

Project budget Total (GST exc)Resource assessment consultant fee $Funding sought from Sustainability Victoria $Cash contribution (balance) $

Section 6 – Attachments

Applicants should include the following documents where relevant:

Scope of work/proposal and quote from the consultant for undertaking the resource assessment. This document must include the proposed scope, the proposed methodology/approach, information about the relevant skills and experience of the consultant and its organisation, and the proposed consultant fee.

The value for money statement (recommendation: consultant to prepare) Any document/s to demonstrate the business strategy rationale for undertaking the assessment.

For example, show that funds have been budgeted for the 2015/16 year resource efficiency improvements; a copy of relevant section of current business plans or equivalent

Signed letter of support from the business on letterhead, supporting the application and the consultant as stated in the value for money statement

Additional requirements for small business applicants:

Applicants with fewer than 20 employees applying for energy efficiency projects must also provide evidence that the current energy spend (excluding transport fuel costs) is $50,000 or more per annum – e.g. by providing a copy of a recent electricity bill(s).

Section 7 – Disclosures

Please outline any perceived conflicts of interest related to the project, including existing relationships with proposed suppliers or contractors.

(Conflict of Interest means any matter, circumstance, interest or activity affecting the applicant or it’s Related Persons which may or may appear to impair the ability of the applicant to undertake the Project diligently and independently, or perform its obligations under any funding agreement with Sustainability Victoria in relation to the Project).

No current or potential conflict of interest exists We disclose the following conflict/s of interest and indicate below how we propose to manage

it/them.

Has your company had any Environment Protection Authority (EPA) violations in the past five years?

Yes No

(This includes any previous penalty, notice, prosecution or regulatory intervention or any current investigations, notices prosecutions, regulatory intervention or enforcement action from the Environment Protection Authority arising out of an actual or possible breach of any environmental legislation or regulations).

Has your business had any Victorian WorkCover Authority violations in the past five years?

Yes No

(This includes any previous penalty, notice, prosecution or regulatory intervention or any current investigations, notices, prosecutions, regulatory intervention or enforcement action from Victorian WorkCover Authority arising out of an actual or possible breach of any OH&S, safety or other legislation or regulations).

If yes to either question, please explain the breach and the action taken to rectify.

Has any other government funding been applied for, or received for this project? If yes, please provide details?

Section 8 – Declaration

I state that the information in this application and attachments is to the best of my knowledge true and correct. I will notify Sustainability Victoria of any changes to this information and any circumstances that may affect this application.

I acknowledge that I have read and understood the Terms of Participation in Grant Programs and Funding Terms and Conditions.

I acknowledge that Sustainability Victoria may refer this application to external experts or other Government Departments for assessment, reporting, advice, comment or for discussions regarding alternative or collaborative grant funding opportunities.

I understand that Sustainability Victoria is subject to the Freedom of Information Act 1982 and that if a Freedom of Information request is made, Sustainability Victoria will consult with the applicant before any decision is made to release the application or supporting documentation.

I have read and confirm the terms and conditions of the proposed funding agreement.

I understand that this is an application only and may not necessarily result in funding approval.

I declare that my organisation currently holds:

Public Liability Insurance of $10,000,000 and Professional Indemnity Insurance of $5,000,000*

OR I have provided a statement from my insurer/broker or CEO/GM (on company letter head)

stating that Professional Indemnity insurance is not relevant

I acknowledge that Sustainability Victoria may undertake checks with EPA, Victorian WorkCover Authority or other regulators about my organisation’s environmental, OH&S, safety or other regulatory performance, and may undertake checks on my organisation’s financial ability to contribute to this project

By checking the following boxes and submitting this application, I confirm that: I have read and agreed to the Sustainability Victoria Funding Terms and Conditions I have read and agreed to the Sustainability Victoria Terms of Participation Grant

Programs I have read the Resource Assessment Guidelines The propose project must be completed by 30 May 2016

Signature:

Date:

Print name:

Position:

(To be signed by a person with delegated authority to apply - i.e. Chief Executive Officer or Director).

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