Fuel Charge Proceeds Return Program

Current Status: The Expression of Interest phase for the Fuel Charge Proceeds Return Program closed on December 16, 2022. Applicants found eligible as part of the Expression of Interest stage will be invited to submit a Formal Proposal.

Overview

The Fuel Charge Proceeds Return Program (FCPRP), administered by Environment and Climate Change Canada (ECCC), will support the return of fuel charge proceeds collected under the federal carbon pollution pricing system to their jurisdictions of origin, as outlined in the Greenhouse Gas Pollution Pricing Act.

As specified by the Minister of Finance on November 22, 2022 , the FCPRP will return over $2.5 billion in fuel charge proceeds as direct payments to eligible small and medium-sized enterprises (SMEs), specifically those in emissions-intensive and trade-exposed (EITE) sectors (“EITE SMEs”). The program will be available in jurisdictions where the federal fuel charge applies: Alberta, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, and Saskatchewan.

The first round of programming will target small and medium-sized enterprises in Alberta, Manitoba, Ontario, and Saskatchewan. Further information on the return of proceeds to small and medium-sized enterprises in New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island will be available in due course. All fuel charge proceeds are expected to be returned by March 31, 2025.

Call for proposals

ECCC sought Expressions of Interest from qualified applicants that have the ability to execute the disbursement of fuel charge proceeds as direct payments to eligible EITE SMEs in one or more of the four jurisdictions (Alberta, Manitoba, Ontario, and Saskatchewan). ECCC is expecting to select one applicant to administer programming in each jurisdiction.

Applicants will be responsible for the full life cycle of programming in their jurisdiction, including:

• Promotion and communications to EITE SMEs;
• Development and management of an online application portal;
• Applicant support to EITE SMEs;
• Defining payment amounts for EITE SMEs;
• Assessment of applications and direct payment eligibility determinations;
• Development and management of a payment system;
• Issuing payments to eligible EITE SMEs;
• Recovery of funds in event of ineligible payment issuance;
• Monitoring and tracking of applications and payments made; and
• Compliance with ECCC reporting and auditing requirements.

Applicants must be able to deliver programming in both official languages (English and French).

Further program information has been shared with applicants as part of the Expressions of Interest process.

Who can apply

To be considered for funding to disburse fuel charge proceeds in one or more of the eligible jurisdictions, applicants must:

• Be one of the following organization types:
  • Provincial crown corporation
  • Legal entity incorporated or registered in Canada, including:
    • For profit organization
    • Not for profit organization
    • Other public service bodies
• Be operating in the jurisdiction of proposed program administration
• Have relevant experience in managing and financially administering programs or payments

Application period

The Expression of Interest stage of the Fuel Charge Proceeds Return Program closed on December 16, 2022 at 11:59 PM Eastern Standard Time (EST). Thank you to all applicants. Applicants will be informed of the decision regarding eligibility in early 2023. Successful applicants will be invited to submit a Formal Proposal.

Key dates

• November 28, 2022: Open for expressions of interest
• December 16 2022: Deadline for submission of Expressions of Interest
• April 2023 (exact date to be determined): Deadline for submission of Formal Proposals
• Spring/Summer 2023 (exact date to be determined): Funding decisions and recipient selection

Application process

The application process has two stages:

1. Submission of an Expression of Interest to screen organizations for eligibility; and
2. Submission of a Formal Proposal to evaluate organizations for merit.

Applicants may only submit one Expression of Interest per jurisdiction. Applicants interested in delivering programming in multiple jurisdictions must submit a separate Expression of Interest for each jurisdiction. Expressions of Interest submitted by the same or affiliated applicants will be assessed independently of each other. ECCC officials may request further information on connections and dependencies between proposals as part of the Formal Proposal stage.

ECCC will assess all fully completed Expressions of Interest submitted by December 16, 2022 for eligibility. Applicants found eligible as part of the Expression of Interest stage will be invited to submit a Formal Proposal, which will assess criteria such as requested administrative costs, proposed program design and delivery, and organizational capacity. An invitation to submit a Formal Proposal does not guarantee applicants will be offered the opportunity to deliver funding.

How to apply

The Expression of Interest phase for the FCPRP closed on December 16, 2022. Applicants will be informed of the decision regarding eligibility in early 2023. Successful applicants will be invited to submit a Formal Proposal.

Please contact ECCC at prprc-fcprp@ec.gc.ca should you have any enquiries.