SCH Vessel Removal Program Application Guide

Introduction

The Oceans Protection Plan, announced in November 2016, included a comprehensive strategy to reduce the actual number of abandoned and wrecked vessels, and to minimize the associated risks of environmental harm. In 2022, a new investment of $2 billion over nine years was announced to continue OPP 2.0, a renewed and expanded plan based on OPP 1.0.

Fisheries and Oceans Canada’s (DFO) Small Craft Harbours (SCH) Program is responsible for delivering a portion of this strategy relating to the removal of those vessels in DFO small craft harbours through the SCH Abandoned and Wrecked Vessels Removal Program, using the broader Small Craft Harbours Class Contribution Program.

The objective of the SCH Abandoned and Wrecked Vessels Removal Program is to provide financial assistance, on a cost-shared basis, to eligible recipients to remove and dispose of abandoned and/or wrecked vessels in SCH Schedule I harbours.

Funding

The SCH Abandoned and Wrecked Vessels Removal Program under OPP 2.0 will provide up to 250 thousand dollars yearly to Harbour Authorities and other eligible recipients to remove and dispose of abandoned and/or wrecked vessels located in small craft harbours owned by the Department of Fisheries and Oceans.

The SCH Abandoned and Wrecked Vessels Removal Program application process is designed to allow for both single and multiple vessel removals and disposals.

Eligible Recipients

This program is primarily geared towards funding the removal of vessels received for commercial fishing harbours, in-line with Small Craft Harbours’ primary mandate of operating and maintaining harbours that are critical to the commercial fishing industry. However, applications for other harbours will be reviewed and considered on a case-by-case basis provided that they meet all of the eligibility criteria.

Eligible recipients include:

1. a province or agency thereof, as defined in s. 2 of the Fishing and Recreational Harbours Act (FRHA)
2. a non-profit organization
3. an Aboriginal group
4. any person, as defined in s. 5(3) of the FRHA
5. any combination of the above

To be eligible for funding, the applicant must be removing a vessel that is located in a small craft harbour listed in Schedule I of the Fishing and Recreational Harbours Regulations.

Definitions

Abandoned vessel includes at least 1 of the following:

• the owner is unknown or cannot be located
• the owner expressed intent to abandon the vessel
• the vessel has been in the same location for an unusually long period of time
• there is no evidence of the vessel being looked after over a significant period of time
• the vessel has drifted or has had to be re-secured by others
• the vessel is slowly taking on water
• there is an absence of a current registration number

Wrecked vessel includes at least 1 of the following:

• the vessel appears to be partially or substantially destroyed
• it is partially or completely sunk
• it is lying ashore or grounded
• it is stranded, in distress or dilapidated

Eligible Activities

Contribution funding related to the SCH Abandoned and Wrecked Vessels Removal Program may be provided for the following types of activities:

Legal possession and assessment costs and expenses

Applicants who are eligible for funding to conduct this type of activity will be reimbursed for 100% of eligible expenditures.

Maximum contribution per vessel: $5,000

Vessel removal and disposal costs and expenses

Applicants who are eligible for funding to conduct this type of activity will be reimbursed for 75% of eligible expenditures.

Maximum contribution per vessel: $50,000

Eligible Costs

Eligible costs include reasonable and properly itemized costs which are directly related to the eligible activities:

• salaries and wages (e.g. Harbour Manager's salary (incremental); volunteer hours toward managing the project)
• travel (e.g. accommodations, vehicle rental and kilometric rates; allowances for meals and incidentals directly related to the project; travel and per diem expenses cannot be more than the rates and allowances determined in the Travel Directive of the National Joint Council)
• communications services (e.g. newspaper advertisements)
• insurance
• professional services (e.g. assessment of environmental effects, heritage significance, or removal hazards; surveys; legal fees; labour/contract for removal and/or disposal)
• rental of space and equipment (e.g. vessel storage fees; rental of towing equipment not covered in contractor's costs)
• GST/HST (note: if a recipient is entitled to recover all or a portion of the GST/HST paid on eligible project costs by claiming an input tax credit or a GST/HST rebate, that recoverable amount cannot be included as an eligible project cost.)

Costs other than those above are ineligible, unless specifically approved in writing by the Director General (DG) of SCH.

Costs attributable to the day-to-day operations of a small craft harbour are generally not eligible, as the funding is limited to the removal and disposal of abandoned and wrecked vessels.

Application Requirements

To be considered for funding, please fill out the "Application form for Small Craft Harbours Abandoned and Wrecked Vessels Removal Program". Applicants who are seeking reimbursement for the removal of multiple vessels are also required to complete a "Small Craft Harbours Abandoned and Wrecked Vessels Removal Program Additional Vessel Form" for each additional vessel and submit these forms with the application.

The "Application form for Small Craft Harbours Abandoned and Wrecked Vessels Removal Program" has 7 sections that need to be filled out. These are:

• Section 1: Applicant Information
  • Section 1A: Contact Information
  • Section 1B: Goals/Mandate of the Applicant's Organization
  • Section 1C: Activities Undertaken in Support of Mandate
• Section 2: Statement of Purpose and Objective for which the Funding is Being Sought
• Section 3: Description of the Organization's Proposed Activities, including:
  • Section 3A: Description of Vessel(s)
  • Section 3B: Establishing Legal Possession
  • Section 3C: Risk Posed by Vessel(s)
• Section 4: Project Plan and Budget
  • Section 4A: Project Plan
  • Section 4B: Project Budget and Cash Flow
• Section 5: Disclosure Statement
• Section 6: Eligibility
• Section 7: Declaration.

In order to be considered for funding, all sections of the application form must be thoroughly completed and any supporting documents requested must accompany the application (photos, additional forms, etc.).

Section 1 – Applicant information

In this section, please provide details son your organization as follows:

Section 1A – Contact Information

In this section, you must include:

• legal name of the applicant organization, which should indicate the type of organization seeking funding
• name and position of the primary contact for the organization
• mailing address for all correspondence
• contact information such as:
  • office phone
  • fax numbers
  • email
  • internet address
  • etc.

This information is needed in order for SCH staff to contact you for further information on your application, and/or to advise you of the status of your application.

Section 1B – Goal(s)/Mandate of the Applicant's Organization

To ensure alignment with the purpose of the program, you must indicate your organization's goal or mandate.

Example, in the case of a Harbour Authority, the "organization is responsible for ongoing management, operation and maintenance of facilities for X Harbour, ensuring safe and accessible service for harbour users. The organization aims to provide harbour services to fishers and other users, with an overall goal of enhancing harbour facilities, operations and economic development."

Section 1C – Activities Undertaken in Support of Mandate

You must outline your organization’s annual program; that is, the activities that your organization is responsible for undertaking in order to meet the objectives of the mandate.

Examples of these activities may include (but are not limited to): management of facilities; notifications and collection of fees; the maintenance of membership records; drafting of incident reports; and/or the processing of claims. You may also indicate if there are other organizations with which you partner to complete these activities.

Section 2 – Statement of Purpose and Objective for which the Funding is Being Sought

You must select how the removal of the vessel will benefit harbour operations and capacity.

You may apply for funding to remove or dispose of a boat at any point in the process (legal possession and assessment, removal or disposal) and must put a checkmark or 'x' beside the statement(s) that best describes the objective for receiving funding. 

Section 3 – Description of the Organizations Proposed Activities

In this section, you must provide detailed information relating to the vessel(s) in question. If the request is to address more than 1 vessel, than please complete a Small Craft Harbours Abandoned and Wrecked Vessels Removal Program Additional Vessel Form for each vessel.

Mandatory attachments for sections 3A through 3C:

• photos of the vessel in its current state and location, taken from distinct and various angles
• copies of any written exchanges between the applicant and the vessel owner (if it exists)
• proof of legal possession of the vessel (if it has already been obtained)
• Small Craft Harbours Abandoned and Wrecked Vessels Removal Program Additional Vessel Form for each vessel in the application

Section 3A: Description of Vessel

Please complete the sub-sections by providing:

• The state of the vessel – abandoned, wrecked, or both – and length of time it has appeared in this state. See definitions of "abandoned" and "wrecked" in this Application Guide
• Location of the vessel, which will help to determine the course of action needed to obtain legal possession as well as provide an indication of the project planning needed to remove the vessel
• Vessel information including:
  • length
  • name
  • Vessel Registration Number (VRN)
  • type of vessel or what the vessel is used for (fishing, recreation, etc.)
  • construction of the vessel (steel, fiberglass, wood, etc.)
  • condition of the Vessel
    • sunken
    • beached
    • etc.
• Details about how the vessel came to be in its current location and how it became abandoned or wrecked
• The approximate value of the vessel, if known from previously completed surveys or assessments
• Photos of the vessel's location and state from various, distinct angles which support the descriptions and situation as described

Section 3B: Establishing Legal Possession

Legal possession must be obtained prior to any assessment, removal or disposal activities taking place. See Appendix A in this Application Guide for details on how to obtain legal possession and the proof needed by the Program to show that you have obtained legal possession.

If you currently have legal possession:

You must indicate whether you currently have legal possession, and provide evidence if so. Those currently with legal possession may move on to Section 3C.

If you currently do not have legal possession:

If you do not have legal possession, Section 3B must be filled out.

If the owner is known, provide information about the last time contact was made with the owner (month day, year) and method of contact (email, verbal, letter, etc.)

If the owner is known, and has not yet been contacted, please explain why.

If the owner is unknown, the project plan/timeline will need to account for the extra steps needed to obtain this legal possession (such as a civil court process).

Section 3C: Risk Posed by Vessel

In this section, you must indicate any and all risks posed by the vessel in the current location and/or state of abandonment. This information provides further justification for why the vessel should be removed.

• May pose a danger to human health and safety
• May pose risk to the environment
• May impact organizational operations
• May cause damage to SCH infrastructure
• May pose obstruction to navigation
• Other
• N/A if the vessel poses no risks

You must also describe how the vessel poses these risks (example: takes up valuable space in harbour and results in loss of revenues, damages wharf in severe weather, etc.).

It is expected that you have already contacted Transport Canada if the vessel is causing or has caused an obstruction to navigation, or the Canadian Coast Guard if the vessel poses or has posed an environmental risk. If the Canadian Coast Guard has been contacted, please explain what mitigation measures or remedial actions were taken (e.g., oil removed from vessel).

Section 4 – Project Plan and Budget

In this section, you are requested to be as specific as possible when outlining all project activities and associated costs.

Mandatory attachments:

• project plan
• project Costing Sheet
• written confirmation of financial support from other funding sources/partners
• quotes received for assessment, removal or disposal costs (as described below)

Section 4A: Project Plan

In this section, you are required to describe how the project will be completed. It is important to present all required information as clearly and accurately as possible. A sample template has been provided in the application kit, but a project plan will be accepted in any format so long as it meets the criteria described below.

Depending on your situation, you may apply for reimbursement of eligible costs for individual components of the project (legal possession, assessment, removal and disposal), some combination thereof, or a project in its entirety. This may be done through several applications over multiple fiscal years, or all at once. While legal possession and assessment are necessary first steps in this process, and therefore eligible activities, the ultimate goal is to responsibly remove and dispose of abandoned and wrecked vessels to reduce risks to the economic well-being of the Harbour Authority, threats to navigation, impacts on the environment, etc.

The project plan should account for all preparatory work, project delivery, and final disposal of the vessel. Include expected start and completion dates.

The project plan should include:

• A breakdown of the project activities into clear steps and timelines
• Activities to obtain legal possession, and associated costs, if applicable
• Activities to undertake surveys and/or assessments which will identify risks and liabilities associated with the location and state of the vessel
  • The surveyors must have insurance to address any liabilities. The surveyor should have certifications and/or experience and training in the field to ensure all risks and liabilities are considered
  • The complexity of the assessment will depend on the size, type, condition, and location of the vessel
• A mitigation strategy to prevent, prepare for and respond to any risks or liabilities associated with the removal (e.g., break up of vessel in water, release of pollutants, disturbance of sensitive ecological areas including fish or bird habitat, introduction of aquatic invasive species into other waterways, etc.)
  • For example, if the assessment or survey indicates there is fuel onboard, creating a potential environmental risk if it was to spill during removal or disposal, then your project plan must account for removing the fuel prior to removing or disposing of the vessel
• Specific activities and associated equipment required to responsibly remove and dispose/recycle/salvage the vessel
  • Those engaged to remove or dispose of the vessel must have insurance to address any liabilities, and should have experience and training to ensure that all mitigation measures identified in the mitigation strategy are accounted for

If your application is for multiple vessels, the plan should include all vessels and the associated risks and liabilities for each one.

Section 4B: Project Budget and Cash Flow

In this section, you must outline the entire budget (eligible and ineligible expenses) for this project using the Small Craft Harbours Abandoned and Wrecked Vessels Removal Budget Plan Template, included in the application kit.

Cost-sharing: You must also describe how your organization will meet the cost-sharing requirements of the SCH Abandoned and Wrecked Vessels Removal Program (i.e. the 25% shared cost for removal and/or disposal of a vessel). This may include cash contribution, other funding sources, and/or in-kind contributions (given as a cash value).

Confirmation of financial support from other funding sources/partner organizations must be obtained in writing and attached to the application.

Stacking limits: Total government assistance (federal, provincial, territorial and municipal) may not exceed 100% of eligible costs.

This stacking limit must be respected when assistance is provided. In the event that the actual total government assistance provided to a recipient exceeds this stacking limit, it will be necessary for Fisheries and Oceans Canada to adjust the level of its assistance (and seek reimbursement, if necessary) so that its share of eligible costs (75% of removal and disposal costs) is not exceeded.

Substantiating costs: You must also provide any quote(s) received for the removal and disposal of all vessels (the quote should include a per vessel breakdown where applicable). The quote(s) should include all possible steps in the process including but not limited to:

• salvage costs (e.g. raising, securing and preparing the vessel for removal and disposal)
• transportation costs (costs of transporting the vessel to a disposal site)
• disposal costs (including demolition, environmental permits and remediation, and dumping fees)

It is also expected that you will provide details on costing related to "salary and wages", such as the hourly rate and number of hours.

For example, if a project begins on October 1, 2024, and runs for 2 years (24 months) to October 1, 2026, the Recipient must provide budget figures for 3 separate periods:

1. October 1, 2024, to March 31, 2025
2. April 1, 2025, to March 31, 2026
3. April 1, 2026, to October 1, 2026

Support provided by Small Craft Harbours

Provide any past support given by SCH to the organization. Include the date, the project and the amount of funding provided by SCH.

Section 5 – Disclosure statement

You are requested to initial to indicate that you have read and declare that there is no conflict of interest as described in the statement. 

Section 6 – Eligibility

You are requested to initial to indicate that you have read and understood the terms that make you/your organization eligible for the program.

Section 7 – Declaration

In order for your application to be eligible for funding, this section must be completed and signed by the official representative(s) of your organization in accordance with the organization's by-laws or other constituting documents. 

Please ensure the application form is signed.

Application Process:

Approval of funding is at the discretion of Fisheries and Oceans Canada. Eligible costs will not be reimbursed until a contribution agreement is signed by both parties. Any funds spent prior to a contribution agreement being in place are not reimbursable.

A checklist can be found in this guide to help you determine if your application is complete.

Please submit your completed application to the appropriate regional office for review, listed in this guide.

Application Checklist:

Please ensure that the application is thoroughly completed. You may use the following check list to help you review your application. Note that this may not be an exhaustive checklist and it is the responsibility of the applicant to ensure that the application is thorough, accurate and complete.

• You are an eligible recipient, and the vessel is in a Fisheries and Oceans Canada small craft harbour
• No sections are left blank, or have been accidentally or intentionally deleted
• Boxes have checkmarks or an "x"
• The project plan is completed, clear and accounts for all steps to be taken, for each vessel noted in the application
• The budget plan is completed
• The budget plan accounts for all activities under the project plan
• The numbers on the budget plan are accurate and supported by quotes, where possible
• You have described how you will make up your 25% of the shared cost for removal/disposal and have identified all other funding sources
• All mandatory attachments are included
• Sections 5 and 6 are initialed
• Section 7 is signed by the appropriate authority

Regional Offices:

Pacific Region (British Columbia and Yukon)
Small Craft Harbours
Fisheries and Oceans Canada
200-401 Burrard St
Vancouver BC
V6C 3S4

Contact: Lam.Hughson@dfo-mpo.gc.ca

Ontario and Prairies Region (Ontario, Manitoba, Saskatchewan, Alberta, Northwest Territories and Nunavut)
Small Craft Harbours
Fisheries and Oceans Canada
867 Lakeshore Rd
Burlington ON
L7S 1A1

Contact: Annette.Winter@dfo-mpo.gc.ca

Quebec Region:
Small Craft Harbours
Fisheries and Oceans Canada
104 Dalhousie St
Québec QC
G1K 7Y7

Contact: Marie-Christine.Lafond@dfo-mpo.gc.ca

Maritimes and Gulf Region (New Brunswick, Nova Scotia and Prince Edward Island)
Small Craft Harbours
Fisheries and Oceans Canada
343 Université Ave
P.O. Box 5030
Moncton NB
E1C 9B6

Contact: Melanie.Deware@dfo-mpo.gc.ca

Newfoundland and Labrador Region:
Small Craft Harbours
Fisheries and Oceans Canada
80 Est White Hills Rd
P.O. Box 5667
St. John's NL
A1C 5X1

Contact: Marilyn.Pike@dfo-mpo.gc.ca

Disclaimer: Any information provided by Small Craft Harbours, Fisheries and Oceans Canada, including this document, is not intended to be a substitute for legal advice.

APPENDIX A
Obtaining legal possession