Terms and conditions

Aquatic Species and Aquatic Habitat Integrated Terms and Conditions to be administered by Fisheries, Oceans and the Canadian Coast Guard (DFO)

Effective Date: July 2019

Amended Date: June 22, 2022

The following is a list of transfer payment programs delivered through these terms and conditions:

• Canada Nature Fund for Aquatic Species at Risk
• Habitat Stewardship Program
• Aquatic Habitat Restoration Fund
• Indigenous Habitat Participation Program
  • Grants in support of the Indigenous Habitat Participation Program
  • Contributions in support of the Indigenous Habitat Participation Program
• Salish Sea Initiative Contribution Program
• Aquatic Invasive Species Fund
• Aquatic Ecosystems Restoration Fund
• Terrestrial Cumulative Effects Initiative
• Oceans Management Program
  • Grants in support of Indigenous Groups in the Development and Implementation of Oceans Conservation and Management Activities
  • Contributions in support of the development and implementation of oceans conservation and management activities
• Pacific Salmon Conservation and Stewardship Partnerships Program

Any additional transfer payment programs to be delivered using these terms and conditions will mention the use of these terms and conditions in the corresponding Treasury Board submission subject to Treasury Board approval. These terms and conditions may be amended in the future to:

1. add new contribution transfer payment programs; and/or
2. increase support to existing transfer payment programs by adding new pillars or funds.

Depending on the other types of amendments, either Treasury Board or ministerial approval will be required.

The terms and conditions apply to Aquatic Ecosystems activities related to aquatic species, aquatic habitat and oceans management, as well as to support Indigenous peoples in activities related to the conservation and protection of fish and fish habitat as administered by the Minister of DFO.

These terms and conditions set out the parameters under which transfer payments may be made. Where appropriate, program-specific documents such as applicant guidelines or individual contribution agreements may further clarify, for example, the scope of eligible activities and eligible expenditures (e.g., providing a description for eligible activities or expense categories, explanations on the maximum amount payable or stacking limits, requirements on contribution agreement monitoring and recipient reporting). These documents will not expand beyond the limits set in the terms and conditions.

1. Legal and policy authorities: Grants and contributions

• Budget 2018 - Nature Legacy for Canada
• Department of Fisheries and Oceans Act, 1985
• Fisheries Act, 2019
• Oceans Act, 1996
• Species at Risk Act, 2002
• Great Lakes Fisheries Convention Act, 1985
• Convention on Great Lakes Fisheries, 1955
• Great Lakes Water Quality Agreement, 1972, 2012
• Convention on Biological Diversity, 1992
• International Convention for the Control and Management of Ships' Ballast Water and Sediments (2004)
• Ballast Water Regulations, 2021
• Aquatic Invasive Species Regulations, 2015
• Canada-Ontario Agreement respecting the Great Lakes.
• Financial Administration Act, 1985
• Constitution Act, 1982
• Impact Assessment Act, 2019

2. Purpose and objectives: Grants and contributions

The overall objectives related to all of DFO’s Aquatic Ecosystems’ transfer payment programs are to conserve and protect Canada’s oceans and other aquatic ecosystems and species from human impact and invasive species.

The overarching goals (purpose) for each of the transfer payment programs are identified in the following table:

3. Expected results and indicators: Grants and contributions

The Results and Indicators for each of the transfer payment programs are identified in the following table. These programs may use multi-year or single-year agreements to achieve identified results:

4. Categories of eligible recipients: Grants and contributions

In grant and contribution agreements^{Footnote 1}, the recipients must be the same as those listed below as eligible recipients.

Eligible recipients include:

• Not-for-profit organizations, such as charitable and volunteer organizations, professional associations, and non-governmental organizations;
• Indigenous organizations, governments, individuals, boards, commissions, communities, associations and authorities, including:
  • Indigenous Communities / Bands / Settlements
  • District Councils / Chiefs’ Councils / Tribal Councils
  • Indigenous Associations / Organizations / Societies
  • Indigenous Fisheries Commissions / Councils / Authorities / Boards
  • Indigenous Economic Institutions / Organizations / Corporations / Co-operatives
  • Partnerships or aggregations of Indigenous groups
  • Bodies or entities established by rights-holding communities to represent them
  • Service providers mandated to work with Indigenous organizations in fisheries, fish and fish habitat, as determined by DFO
  • Individuals
• Research, academic and educational institutions;
• Canadian individuals;
• For-profit organizations, such as small businesses with less than 500 employees, companies, corporations, and industry associations;
• Local organizations such as community associations and groups, seniors’ and youth groups, and service clubs; and
• Provincial, territorial, municipal and local governments and their agencies (e.g. Crown corporations, Conservation Authorities).

5. Eligible projects/activities: Grants and contributions

Eligible projects/activities include:

• Protecting and recovering aquatic species;
• Managing aquatic invasive species and non-indigenous species;
• Promoting and supporting stewardship, outreach, education, capacity building and training;
• Supporting engagement;
• Mitigating threats;
• Rebuilding, restoring and rehabilitating aquatic habitat;
• Protecting, enhancing, restoring aquatic species’ habitat;
• Developing protocols, methods and procedures;
• Construction, architectural, engineering, maintenance and project design activities (e.g., bank stabilization, shoreline protection, barrier island/headland restoration);

• Conducting studies/research, reviewing studies (e.g., pre-feasibility and feasibility studies, diagnostic studies, environmental evaluations, information gathering, proposal development, studies, planning, mapping and reporting*) and compiling, developing, and providing information, data and studies on fish and fish habitat issues and other issues related to DFO project decisions or initiatives to inform Indigenous positions – this includes the compilation and provision of Indigenous knowledge related to a project subject to DFO’s decision;

  Note:

  Any studies or planning activities must be associated with a project, or with the program (e.g., contributing to the program’s priorities). Standalone studies or planning projects not directly linked to the objective of the program(s) would not be eligible under these terms and conditions.

• Management, monitoring and reporting on projects;
• Preparing for, participating in, and contributing to engagement and consultation activities, including (public) meetings or discussion groups, as well as formal consultations and negotiations related to the specific decisions or initiatives associated with the implementation of the fish and fish habitat protection provisions of the Fisheries Act and/or Species at Risk Act, Aquatic Invasive Species Regulations or related legislation, or for the purpose of designating and/or managing a marine conservation measure;
• Reviewing studies and reports related to the subject of engagement or consultation; and
• Provisioning of information, data or views regarding the effects of proposed regulatory, program or policy initiatives or project decision(s) in the regional area or related impacts on potential or established Aboriginal or treaty rights or title - in support of the recipient’s project and not at the behest of DFO

6. Eligible expenditures: Grants and contributions

Eligible grant and contribution costs include reasonable and properly itemized costs, directly related to the eligible projects/activities, for:

• Salaries and wages and employer mandatory benefits;
• Professional technical or specialized services;
• Training;
• Training materials;
• Construction, infrastructure and related costs*;
• Purchase or rental of machinery and equipment;
• Maintenance and repair;
• Purchase, or lease of vehicles*
• Rental of vehicles
• Materials and supplies;
• Utilities;
• Housing;
• Scholarships;
• Software and computer equipment;
• Printing, publishing;
• Telecommunications, communications/network, data communication, image/video communications services;
• Postage, parcel post, courrier services;
• Rental of facilities;
• Travel, including accommodation, meals, and allowances, based on National Joint Council’s Directive on Travel;
• Carbon Credits related to eligible events, conference, and travel
• Insurance expenses related to activities under the Agreement;
• Conferences, workshops and meetings;
• Monitoring and reporting;
• Hospitality and related expenses in compliance with the Directive on Travel, Hospitality, Conference and Event Expenditures;
• Any GST/HST that is not reimbursable by Canada Revenue Agency and any PST not reimbursable by the provinces; and
• Administrative overhead up to 15% of eligible costs of the project.
• Honoraria for:
  • elders; and/or
  • Indigenous knowledge holders in recognition of providing Indigenous knowledge or community knowledge relevant to the initiative
• Ceremonial costs including services, where the funding recipient is an Indigenous group that:
  • possesses Indigenous knowledge relevant to the initiative; or
  • where the recipient provides services to support consultation on impacts on potential or established rights or title.
• Other costs that support the conservation and protection of Canada’s fish, fish habitat, and aquatic species at risk pre-approved by Fisheries and Oceans Canada and not to exceed 10% of total eligible costs.

* This only applies to contribution funding.

7. Stacking limit: Grants and contributions

The maximum stacking limit of total Canadian government assistance (federal, provincial, territorial and municipal for the same eligible expenditures) for grants and contribution programs cannot exceed 100% of the total eligible expenditures of a project.

8. Project identification and approval: Grants and contributions

Proposals for grant and contribution funding may be received via directed funding or an open call for proposals. Detailed instructions on how to apply for funding will be included within the program guidelines and/or documentation. Both approaches will require an application or a proposal to be submitted.

Applications will be requested to obtain the necessary information to determine eligibility under these terms and conditions. Proponents must provide the following information^{Footnote 2}:

• Name of applicant(s);
• Name of applicant’s institution, body or organization, and if required:
  • Name and legal status of applicant
  • Authorized officer(s)
  • If relevant, organizational description, including organization chart and governance structure(s)
  • Proof of registered/licences business
• Goal(s) and/or objective(s) of applicant institution, body or organization, location of project;
• Statement of purpose and objectives in seeking contribution funding and how they relate to the objectives described in these terms and conditions;
• Description of proposed activities (including planning process, or how the proposed project requiring Fisheries Act, Species at Risk Act and/or S. 82 Impact Assessment Act decision has potential to adversely impact Aboriginal and treaty rights, or consultation plan which may also include consultation in relation to the role as Crown consultation coordinator), expected results of proposed project (including linkages to the results in the Department Results Framework), and actions to ensure the long-term benefits of the proposed objectives of the project (e.g., monitoring and maintenance);
• Applicant’s relevant experience and capacity to undertake the project;
• Budget and timelines for proposed activities, itemized by categories of expenses, as well as cash flow for the proposed project;
• Overview of current and proposed capacity to meet project deliverables;
• Identification of all sources of funding confirmed or expected, including expected DFO contribution, and in-kind support;
• An indication of whether the organization has received funding from other DFO funding sources (for the same or different projects); and
• Any amounts owed to the Government (federal, provincial, territorial and municipal).

When funding is determined to be available within the Program, program officers will assess whether or not the applicant meets the eligibility criteria as outlined under “eligible recipients”, “eligible projects/activities” and “eligible expenditures” and whether or not the project, as described, will contribute to the objectives of the Program and the Department. Program officers’ assessment may include the ranking of successful applicants based on the projects proposed and priorities being met.

DFO will not fund activities that duplicate services, studies or written materials being funded by other public or private sources.

DFO will work to harmonize assessment criteria across its transfer payment funding programs.

Assessment criteria: Grants and contributions

DFO will apply an assessment criteria for both directed funding projects and open calls for proposals as part of the process of assessing proposals received from applicants.

Evaluation against program priorities broken down as:

• Implements actions towards program objectives (e.g., recovery of aquatic species at risk, coastal restoration, addressing aquatic invasive species);
• Uses partnership and collaboration;
• Contributes to priority co-benefits (e.g., reconciliation with Indigenous peoples, collaboration with Provinces and/or Territories); and
• Supports wider Government of Canada priorities.

Co-benefits may include considerations such as multiple species, provision or enhancement of ecosystem services, government clean growth objectives, and support to national reconciliation with Indigenous peoples.

Technical evaluation

Evaluation of the technical merit of the proposal may include consideration such as recipient experience/capacity, meeting previous commitments, leveraged funds, and overall proposal quality.

9. Amount of grant

The applicant will detail in the application the total costs of proposed activities and identify other sources of funds. For the transfer programs where both grant and contributions mechanisms are funding options, a grant will only be used once the Department has determined that no further conditions are required because the amount of funding to be provided can be determined in advance and the applicant has clearly demonstrated in its application that the grant’s eligibility criteria are met. The amount of the grant is based on the applicant’s request and the limits under both the stacking limit and the maximum amount payable. Whereas, for those applications where there is greater risk either because of the materiality of the agreement, or a risk that the recipient does not have the capacity to administer a grant, or that a recipient may not meet the goals of the program, than a contribution mechanism will be used with the reporting and performance conditions specified in the contribution funding agreement

10. Amount of contribution

The determination of the amount of the contribution is based on the applicant’s request and the limits under both the stacking limit and the maximum amount payable.

The applicant will detail in the application the total costs of proposed activities and identify other sources of funds.

11. Maximum amount payable: Grants and contributions

12. Up-front multi-year funding: Contributions

“Up-front multi-year funding” is contribution funding approved and payable to a recipient to meet expenditures for more than one year of a multi-year agreement, when an appropriation for the full amount has been obtained. Where contributions under a transfer payment program will be used to provide up-front multi-year funding to a recipient or category of recipients, that up-front multi-year funding payable to any recipient will not exceed $10 million.

Restriction: “Up-front, multi-year” funding is restricted to contribution agreements.

13. Further distribution of funds: Grants and contributions

Grants
Grants are not appropriate where funding provided to a Recipient is to be further distributed to one or more unknown persons or entities. In agreements where consultation bodies, entities or aggregates are established by rights-holding communities to represent them, these will be considered the Recipient of the grant funding.

Contributions
Eligible recipients may further distribute part or all of their contribution funding to one or more eligible ultimate recipients. Where a recipient further distributes funds, the recipient shall remain liable to the Department for the performance of its obligations under the funding agreement. Neither the objectives of the programs and services nor the expectations of transparent, fair and equitable services shall be compromised by any delegation or further distribution of funding.

Recipients have full independence in the selection of such ultimate recipients and will not be acting as an agent of the Government in making distributions.

14. Basis of payment: Grants and contributions

Grant agreement payment
As the amount of funding and eligibility criteria will be determined and confirmed in advance, the grant will be paid in one instalment in accordance with the Treasury Board Policy on Transfer Payments.

Contribution agreement payment
Payments on contribution agreements are to be made based on one or a combination of the following:

• Achievement of pre-determined performance expectations or milestones, as appropriate to the individual project or activity, and will be specified in the contribution agreement as they are unique based on each project;
• Reimbursement of eligible expenditures;
• Validation of reasonableness and fair market value of proposed expenditures;
• Importance of projected expenditures to success as well as alignment with DFO and Government of Canada priorities; and
• Annual cash flow statement(s), which can include advance payments as necessary. Advance payments may be provided to recipients where they can demonstrate a cash flow requirement for funding to be provided prior to incurring eligible expenditures. DFO will comply with all federal policies relating to advance payments.

The delegated authority may approve payments in respect of eligible costs incurred from the date of application, leading up to the signing of a contribution agreement with a recipient, after the project has been formally approved.

Where it is advantageous to the success of the activities, DFO shall offer fixed, flexible or block contribution funding approaches for contributions funding provided to Indigenous recipients, in accordance with Appendix K of the Directive on Transfer Payments^{Footnote 3}.

15. Program controls: Grants and contributions

DFO may, among other things, scale back, withhold funds, or terminate the funding agreement should it consider that a recipient fails to meet the conditions of the funding agreement, including: failure to provide required reports or audits; use of contribution funding for ineligible projects or expenditures; or failure to meet federal visibility requirements.

16. Reporting: Grants and contributions

Grant reporting
Recipients will be encouraged to report on the work undertaken under the grant agreement to support the Program’s performance and departmental reporting requirements with the goal of identifying improvements to the consultation process and management of the Grants program.

When deemed appropriate, details of these reporting requirements will be outlined in the associated grant agreement. However, a grant is not subject to being accounted for by a recipient nor normally subject to audit by the Department.

Contribution reporting
The following items will be requested from recipients as part of their financial and performance reporting obligations:

• Actual eligible expenditures;
• Reporting and monitoring;
• Financial statements;
• Actual revenues received and identification of the source of funds;
• Forecasted eligible expenditures and revenues if advance payments are being sought; and
• Results achieved as a result of the activity(ies) carried out.

For the transfer payment programs covered by these terms and conditions, the timing for an evaluation will be based on the needs, risks and priorities assessed through the annual departmental evaluation planning exercise and included in DFO’s Departmental Evaluation Plan.

Additional reporting requirements of the Recipient may be detailed within the provisions of individual contribution agreements. For contribution funding agreements that provide “up-front multi-year funding” reporting will be done in accordance with Appendix H, Directive on Transfer Payments.

17. Official languages: Grants and contributions

This Department will take into account the relevant official language obligations stipulated in the Official Languages Act, the related regulations, as well as federal government policies in this regard. The initiative will not change the Department’s obligations with respect to providing bilingual services to the public and ensuring the work environment is conducive to the use of both official languages, and the vitality of official language minority communities remains unaffected. The Department will ensure that activities, publicity and announcements regarding the program will be in both official languages. Where appropriate, contribution agreements signed by the recipient will contain a clause addressing the requirements of the Official Languages Act whereby the recipient agrees to communicate and make announcements to the public concerning their project(s) or activity(ies) in both official languages. The clause will also address the provision of program documentation in both official languages.

18. Capital assets: Contributions

If the recipient or ultimate recipient purchases capital assets using DFO’s contribution, in whole or in part, the ownership of such assets rests with the recipient under the condition that such assets, upon completion of the recipient project, will be used in a manner consistent with the objective of the DFO funding program. In some circumstances, where the future use of the asset is not known upon completion of the recipient project, DFO may, in the Funding Agreement, at its discretion, set out the conditions governing the manner in which the assets may be disposed.

19. Communications: Grants and contributions

A communications protocol will be included in funding agreements with each recipient, which will apply to all DFO funding programs using these terms and conditions. Communications protocols will establish federal communications requirements for all communications activities for the DFO funding programs, and for all projects funded through the aforementioned DFO funding programs.

Non-compliance with communications requirements outlined in funding agreements will be addressed via the relevant funding agreement provisions.

20. Intellectual property: Grants and contributions

All intellectual property rights arising from the project shall belong to the recipient. However, the recipient will grant to the Minister an irrevocable, non-exclusive, royalty-free licence to produce, publish, translate, reproduce, disseminate, adapt, or use, any work subject to such intellectual property rights. Conditions of this sharing of intellectual property will be detailed in contribution agreements.

21. Indigenous knowledge: Grants and contributions

Where Indigenous knowledge is used by the Recipient in preparing a report or other documentation and a copy of the information is provided to DFO, the grant or contribution agreement should specify the use to be made of protections afforded to the information provided by the Recipient to DFO. The grant or contribution agreement should clarify that any Indigenous knowledge provided to DFO is subject to Access to Information Act and can only be withheld from disclosure if it falls within exemptions from disclosure provided under that Act or relevant provisions under other legislation such as the Fisheries Act.

22. Repayable contributions

The transfer payment programs using these terms and conditions will not enter into contribution agreements with Recipients for the purposes of generating profits or increasing the value of the business.

As such:

• Contributions to Not-For-Profit organizations shall be non-repayable.
• Contributions to For-Profit organizations* shall be non-repayable under the following situations:
  • the contribution is less than $100,000, and the administrative burden of repayable contributions is not justified or
  • the contribution is made with the primary aim of supporting the conservation of biodiversity including species at risk (i.e., the Nature Legacy for Canada) as well as to preserve and restore marine ecosystems impacted by human activities and development as a mitigation strategy against the stressors affecting aquatic habitats and marine life

*No agreements with for-profit organizations that do not meet these criteria are to be signed.