ERA is Emissions Reduction Alberta. We previously operated as the Climate Change and Emissions Management (CCEMC) Corporation. ERA is a key partner in implementing Alberta’s climate change strategy. Funding for the Strategic Energy Management for Industry (SEMI program), which comes from the Government of Alberta’s Technology Innovation and Emissions Reduction (TIER) Fund and Natural Resources Canada (NRCan), is helping to shape a province with a diverse economy, a healthy environment and a robust innovation ecosystem.

For more information, visit the About ERA web page.

The 50001 Ready Canada program recognizes facilities that demonstrate energy management leadership and energy performance improvement. Achieving the 50001 Ready designation requires facilities to self-attest the structure of the ISO 50001 energy management standard and to measure and report energy performance improvement. To date, almost 300 facilities or buildings in Canada have achieved the 50001 Ready status.

50001 Ready status does not indicate that your project conforms to the ISO 50001 standard or that it will pass an ISO 50001 audit. However, a building or facility with 50001 Ready status is recognized as being in good preparation for ISO 50001 certification.

Participants in SEMI are not required to obtain 50001 Ready status; however, the benefit of working towards 50001 Ready status is that it allows you to maintain and continually improve your facility’s performance by renewing your recognition annually at no cost. The 50001 Ready Navigator tool also provides you with decarbonization management guidance to help you reach your Net Zero goals. This guidance is focused on the organization-level actions that are required to manage energy and energy-related GHG emissions.

Please see the 50001 Ready process flow chart below for additional detail:

The Canadian government has defined Canadian Industry Statistics that dictate what type of company a business is based on the number of employees. As a result, small and medium-sized enterprises are businesses which have 5 to 499 employees.

• Micro businesses have 1-4 employees.
• Small businesses have 5-99 employees.
• Medium businesses have 100-499 employees.
• Large businesses have 500+ employees.

The SEMI program is committed to supporting both SME and large enterprises.

ERA does not provide a list of service providers or contractors for SEMI. However, if you require assistance in finding a contractor for your project, please reach out and we can provide you links to resources.

Please note that ERA does not endorse any contractors and we always recommend getting quotes from a minimum of three contractors before proceeding with a project.

Participants (i.e., customers) must register on the portal and start their application. Once the application has been started, the participant has the ability to grant access to an eligible contractor and assist with filling in required information. Once the information has been filled in, the participant is responsible for submitting the application.

The portal is designed to allow each account owner to add multiple facilities under a single account. You do not need to register a new user for each facility. To submit an application for a second facility, navigate to your account dashboard, where the option to add additional facility applications is available. If you’re not seeing this option, please ensure your account permissions are up to date, or contact our support team for further assistance.

Emission reductions are accurately calculated by comparing baseline emissions to post-implementation emissions, following established measurement and verification (M&V) protocols like those outlined in the IPMVP (International Performance Measurement and Verification Protocol).

Since SEMI incentive caps apply to each facility individually, each facility located within a site would need to submit a separate application. A facility is defined as a physical location where industrial activities take place, involving energy use for producing, transforming, or assembling goods. If a site comprises of multiple buildings, each building or group of buildings used for industrial activities is considered a separate facility, provided they have distinct energy boundaries set by provider-owned meters.

Proponents can use an Eligible Contractor of their choice to complete the Energy Audits and Assessments, Energy Management Information Systems, and Capital Retrofits activities. Eligible Contractors are defined as contractors that have met the requirements in the SEMI Contractor Code of Conduct. Only Enerva Energy Solutions will deliver the Facility Readiness Assessment and Strategic Energy Management activities. This will help ensure we are able to consistently collect baseline data and efficiently guide proponents through the other program activities.

A NAICS (North American Industry Classification System) code is the standard used by both Canadian statistical agencies in classifying business establishments for the purpose of collecting, analyzing and publishing statistical data related to the economy.

NAICS codes vary from 2-digits to 6-digits in length and are assigned to industries. They form a numerical hierarchy for organizational purposes.

How does it work?

Digits 1-2: Economic sector
Digit 3: Economic subsector
Digit 4: Industry group
Digit 5: NAICS industry
Digit 6: National industry

For example:

As you can see in the above example, the longer the NAICS code, the more specific the industry. The shorter the number, the broader the industry.

For SEMI, you will need to identify your facility’s six digit NAICS code at the time of the registration

To find your NAICS code for the SEMI program, you will need to select your facility type in the application portal. The application portal will automatically identify the appropriate NAICS code based on your selection. If your facility operates in a unique or emerging industry, the portal will provide guidance on selecting the closest applicable industry code.

The following NAICS codes are eligible:

• 11 – Agriculture forestry, fishing and hunting
• 21 – Mining, quarrying, and oil and gas extraction
• 22 – Utilities
• 23 – Construction
• 31-32-33 – Manufacturing
• 48 – Transportation
• 56 – Administrative and support, waste management and remediation services

Please contact ERA to discuss. Eligible sectors may also include those that are engaged in energy consuming processes, and that involve the physical or chemical transformation of materials or substances into new products. Products may be finished (ready to use or consume) or semi-finished (raw material). Related activities include assembling component parts, blending materials, and finishing products.

No, all proponents in SEMI are required to first complete a Facility Readiness Assessment (FRA) at their facility. The FRA goes beyond just energy auditing; it evaluates all aspects of your facility to ensure you gain the maximum benefits from SEMI. Additionally, the FRA will provide you with a roadmap, highlighting which eligible activities within SEMI are best suited for your facility.

Once the FRA is complete, you may participate in the four following eligible activities:

1. Conduct comprehensive energy studies such as Computational Fluid Dynamics (CFD) simulation or Process Integration assessments
2. Implement energy management information systems
3. Participate in strategic energy management training
4. Invest in energy efficiency focused capital projects

If the study includes static data collection and the facility data has remained unchanged since the study, the cost may be considered eligible to cover your in-kind contributions. If the study primarily includes variable data, please contact ERA to discuss.

Yes, you can participate in both SEMI and ERA’s other funding programs. However, please note there are stacking limits in the SEMI program. Prior to signing the Participant Terms and Conditions and upon project completion, the proponent will be required to disclose all funding sources (Canadian and non-Canadian) for the project, including industry sources, approved in-kind funding, and contributions from other Canadian government sources (federal, provincial, territorial, and municipal). The maximum level of total government funding (i.e., federal, provincial/territorial, and municipal) must not exceed 75% of total project costs except in the case where the eligible recipient is a provincial, territorial, and municipal government or their departments and agencies or a registered not-for-profit organization or an Indigenous recipient, in which case the total Canadian government funding authorized will not exceed 100% of total project costs.

In the event that actual total government assistance to a proponent exceeds the eligible expenditures, ERA will adjust its level of funding (and seek reimbursement, if necessary) so that the stacking limit is not exceeded.

Energy efficiency projects must be non-emitting at the point of energy use. They must use energy sources such as electricity, renewable energy, biomass, hydrogen, etc. Examples of eligible non-emitting energy efficiency projects related to systems consuming fossil fuels include:

• Steam trap replacements, as steam traps are part of the steam system and do not rely solely on fossil fuels for operation.
• Installation of heat recovery systems since they focus on enhancing energy efficiency without being limited to fossil fuel-powered equipment.
• Process-wide energy efficiency improvements, such as optimizing heat exchanger networks to improve overall system efficiency.

Projects that reduce fossil fuel consumption and GHG emissions within a system powered by fossil fuel may be eligible. However, projects that solely focus on improving the efficiency of fossil fuel powered equipment such as replacing a boiler with a more efficient boiler are ineligible.

If the equipment is using a mix of non-emitting energy and fossil fuels, ERA will review eligibility on a case-by-case basis. The eligibility will depend on factors such as the proportion of non-emitting energy used, the overall impact on GHG emissions, and the long-term reliance on fossil fuels within the system.

We anticipate that the SEMI program will be in market until March 31, 2027. However, please note that March 31, 2027 is the deadline to complete your project, and submit eligible expenses and project documentation.

ERA reserves the right to limit projects that can not demonstrate an ability to complete by the program deadline.

ERA’s Service Provider is delivering the Facility Readiness Assessment (FRA) and Strategic Energy Management (SEM) activities.

Contractors interested in delivering the Energy Assessment and Audits, Energy Management Information Systems, or Capital Retrofits activities can register on the program portal (SEMIprogram.ca).

The FRA is a mandatory first step for all participants (excluding contractors).The FRA is an essential part of the SEMI program and provides a comprehensive energy assessment for eligible facilities. Once the first FRAs have been completed over the coming months, we will notify contractors registered on the program portal regarding the next steps in your contractor enrollment for SEMI. After enrolling, you will be able to work with eligible facilities to complete SEMI activities as outlined on the SEMI website.

The SEMI program generally requires you to submit your application and receive pre-approval before starting the project. Previously completed projects are not eligible. If you have started your project but it has not completed, you may still be able to participate in the SEMI program. The first step is to complete a Facility Readiness Assessment. Project costs incurred before the SEMI program announcement date of October 16, 2024 are ineligible expenditures. For example, if you purchased capital equipment before the announcement date, it will not be considered an eligible project cost. Eligible expenses incurred on or after the announcement date must meet all eligibility criteria and will be reviewed on a case-by case basis.

ERA is striving to achieve the right balance within the funding available to support broad access to SEMI and ensure that the level of support is a meaningful contribution towards incentivizing implementation of eligible technology types. The table below outlines eligibility requirements for solar PV and LED retrofits:

In-kind contribution means a cash-equivalent contribution in the form of an asset for which no cash is exchanged but that is essential to the project and that would have to be purchased by the project proponent on the open market, or through negotiation with ERA, if it were not provided by the project proponent. A more specific example is staff salary used to participate in one of SEMI’s eligible activities.

Additionally, in-kind contributions must be eligible under the activity’s Participant Terms and Conditions and recorded at a fair value as agreed to by the ERA. Eligible in-kind expenditures will not be reimbursed; they will only be considered for the calculation of your cost to participate in the activity. ERA reserves the right to consider in-kind contributions on a case-by-case basis.c

We may require some cash contributions depending on the eligible activity in which you would like to participate. We will need to review your specific situation before being able to confirm.

At this time, we do not anticipate a need for a parent company cap. However, depending on uptake from small and medium enterprises versus large enterprises, ERA reserves the right to establish a parent company cap.

The table below provides the maximum incentive funding levels per facility in SEMI:

A – Maximum funding for a single facility with baseline consumption of less than 400,000GJ of energy annually is $50,000.

B – Maximum funding for a single facility with baseline consumption of more than 400,000GJ of energy annually is $250,000.

C – Maximum funding for Strategic Energy Management is $100,000 per facility, with a limit of 10 facilities when undertaken in cohorts.

• Salaries and benefits of employees on the payroll of the eligible recipient for time to be spent on work related to the initiative;
• Professional services, such as scientific, technical, management, construction, engineering, marketing, data collection and analysis, audit/assessment and evaluation, training, project development and management, energy performance monitoring, benchmarking, labelling and disclosure, monitoring and verification, logistics, maintenance, and contracting services;
• Travel expenditures, including meals and accommodation, based on National Joint Council Rates;
• Honoraria and ceremonial costs where Indigenous recipients or Indigenous partners of recipients are involved;
• Advertising, recruitment, and training (including facilitator fees, costs of training development, promotion, accreditation, deployment, and evaluation);
• License fees, data purchases, certification costs, regulatory compliance, inspection costs, construction insurance, and permits;
• Capital expenditures toward retrofitting or upgrading existing facilities, buildings or infrastructure that improve energy efficiency, for example informatics hardware and software, construction of new assets, purchase and installation of equipment;
• Material, supplies and equipment and systems;
• Equipment leasing and rental;
• Rental of facilities, audio and visual services and other related costs (excluding hospitality and prizes) associated with delivering workshops, delivering training, conferences, meetings, and special events;
• Overhead expenditures provided that they are related to the conduct of the activity and can be attributed to it. Overhead expenditures may be included in the total costs up to 15% of eligible expenditures; and
• GST, PST or HST, net of any tax rebate to which the recipient is entitled.

• Expenditures incurred after March 31, 2027.
• New construction is ineligible (e.g., the construction of a new building or facility, Net Zero Ready building, or new mine) and/or where the emissions reductions are generated from a comparison between the performance of the new building or facility and a hypothetical baseline for the building or facility in the absence of SEMI funding.

Yes, ERA will retain ownership of the environmental attributes generated through the Capital Retrofits activity.

We do not anticipate that any environmental attributes will be generated from the other SEMI activities due to the difficulty in passing the protocols required for monetization.

Yes, the Government of Canada’s Investment Tax Credits are considered federal funding and are included in the 75% cap on government funding in SEMI.

All participants must first complete a Facility Readiness Assessment (FRA). After that, you can participate in all four eligible activities.

The duration and cost of the FRA will depend on several variables including the size and complexity of your facility. Additionally, the duration will depend on your ability to provide documentation required to complete the FRA.