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Contributions under the National Renewable Diesel Demonstration Initiative will be made only to applicants who have signed a contribution agreement with Natural Resources Canada.

The contribution agreement will clearly identify the portion of total project costs that NRCan will reimburse to an eligible recipient accepted under the program.

Natural Resources Canada can contribute up to 50% of the total project costs of an approved project up to a maximum of $1,000,000 per fiscal year. Total government assistance (federal, provincial/territorial and municipal governments) for a funded project cannot exceed 75% of total project costs.

The program is open to applicants, subject to funding availability, until May 29, 2009. Please be advised that until a written contribution agreement is signed by both parties, no commitment or obligation exists on the part of Natural Resources Canada to make a financial contribution to your organization's proposed project including any costs incurred or paid prior to the signing date of the contribution agreement.

What costs are eligible for reimbursement?

Eligible costs will be directly related to approved projects and will include:

• Salaries and benefits;
• Overhead expenses (considered on a case-by-case basis);
• Professional, scientific and contracting services;
• Travel costs, including transportation, meals and accommodation;
• Printing and distribution services;
• Data collection services, including processing, analysis and management;
• Licence fees and permits;
• Field testing services;
• Equipment and products, including diagnostic and testing tools and instruments;
• Laboratory and field supplies and materials;
• Necessary modifications to fuel storage and distribution systems to accommodate renewable diesel;
• Taxes (PST, HST and GST).

Where an environmental assessment of a project is required under the Canadian Environmental Assessment Act, the Government of Canada will not make any payments to a project unless and until:

a) an environmental assessment has been carried out in accordance with the Canadian Environmental Assessment Act; and

b) the responsible authority (NRCan), pursuant to the Canadian Environmental Assessment Act, has determined that taking into account the implementation of mitigation measures, the project is not likely to cause significant adverse environmental effects.