Air Quality Improvement Precincts Grant Program: Information bulletin

Air Quality Improvement Precincts Grants Program

Round Two Information Session

Wednesday, 11 October 2023

Presented by:

Moderator:

Nathan O’Halloran

Grants Technical Advisor, Sustainability Victoria

Keynote Speaker: Brendan Dombrowsky
Program Manager, Air Quality Improvement Precincts, Department of Energy, Environment and Climate Action (DEECA)

[Opening visual of slide with text saying ‘Air Quality Improvement Precincts grants program’, ‘Round two information session’, ‘Victoria State Government’, ‘Energy, Environment and Climate Action’]

[The visuals during this webinar are of each speaker presenting in turn via video, with reference to the content of a PowerPoint presentation being played on screen]

Brendan Dombrowsky:

Thanks everyone for joining us this morning in this information session about the Air Quality Improvement Precincts Grants Program or AQIP for short. My name is Brendan and I’m the Program Manager for AQIP in the Environment Protection Branch at the Department of Energy, Environment and Climate Action or DEECA for short. I’m also joined here from DEECA by Michelle and Fraser and from Sustainability Victoria by Tasha, Nathan and Amber.

I’d like to begin by acknowledging the traditional owners of the land I’m joining you from today, the Bunurong people, and pay my respects to their Elders past and present. I’d like to extend that acknowledgment and respect to the traditional owners of the lands that we’re all dialling in from today.

For our agenda I’ll speak very briefly about the Victorian Air Quality Strategy which is the basis of this Air Quality Improvement Precincts Program. We’ll then run through an overview of the program including a map of the precinct for this grants round, the program objectives and examples of the kinds of actions that are eligible for funding. Then we will talk about the funding that’s available, eligibility requirements and how to apply. After that we’ll move onto questions. Feel free to enter questions in the chat throughout the presentation. We’ll take on notice any questions we can’t answer straight away today and follow up with you directly.

By world standards Victoria enjoys enviable air quality. Despite this there are still health impacts from localised air pollution in Victoria. In October last year the Government released what is called Clean Air for all Victorians or Victoria’s Air Quality Strategy. The strategy is the state’s first overarching plan to address air pollution and sets out how we will further reduce air pollution while supporting communities, the economy and the environment.

Overview. So the purpose of this info session is to explain details about the AQIP Program including eligibility and the process to apply. We have up to an hour allocated in total. We shouldn’t need that much time. Presentation should not run for much more than 20 minutes with some time for questions after. Please feel free to ask and like questions throughout the chat. The questions are moderated and we’ll respond as we can or during question time at the end. This session will be recorded and made available on YouTube afterwards. Useful questions and answers will be published on the Sustainability Victoria website providing public access to all information shared. This may take up to a week to go online.

The strategy lays out four key objectives that work to reduce air pollution in Victoria. The first objective is about targeting the main causes of air pollution. This includes industry and specifically the Air Quality Improvement Precincts initiative that we’re here to talk about today. If you’re interested in further details on the Victorian Air Quality Strategy you can go to Google, search for ‘Victorian Air Quality Strategy’ and it’s the first result.

Part of the strategy is a commitment of $2.84 million over two years to establish two precincts in Melbourne’s west in the Air Quality Improvement Precincts Program. Within these two precincts match grants are being made available for businesses to take actions to reduce their air pollution. Each precinct has $1 million allocated for grants. AQIP is being led by the Department of Energy, Environment and Climate Action with the grants administered and delivered by Sustainability Victoria. We also continue to work with the Environment Protection Authority Victoria to support delivery of the program.

The first round of grants for the outer precinct closed on 6^th of September this year and successful recipients for that outer precinct will be announced later in November or December. Round two is for the inner precinct and is now open and currently accepting applications for grants.

I’ll start with a map of the eligible area for this round. This is the shape of the inner precinct. It’s the focus of this current grants round. Businesses will need to be located and operate within this pink shape for the duration of the program throughout round one to be eligible. The inner precinct covers segments of the local government areas of Melbourne, Port Phillip, Maribyrnong and Hobsons Bay. We have areas including Fishermans Bend, including the employment precincts and including Wirraway, surrounds of Port Melbourne itself and the actual port operations. We have an eastern section of Maribyrnong and a small section of Hobsons Bay around Spotwood within the eligible area.

The Sustainability Victoria website for the AQIP Program has an interactive Google Map of this where you can zoom in and search an address as the entirety of these local Government areas isn’t covered by this precinct. It’s what you see on the screen on that pink shape.

So what’s the aim of the AQIP Program? It’s to reduce air pollution from the activities of business and industry and that’s specifically particulate matter known as PM2.5 and PM10 and these are particles that are smaller than 0.0025mm or 0.01mm respectively and they can be found in smoke and dust. Breathing these particles in can affect people’s health and it can also exacerbate existing health conditions such as childhood asthma and respiratory illnesses among others.

DEECA and EPA reviewed various areas across Victoria for the AQIP Program. Part of this assessment looked at identifying areas with high levels of air pollution due to clustered industrial and business activity and also exposed nearby residential populations. Two precincts in Melbourne’s west were selected due to their persistent issues with air quality as well as the established involvement of local business, Government and community in this space for example the Inner West Air Quality Community Reference Group.

Another point to the program is we won’t fund activities where a business is just looking to bring themselves up to the minimum standard of compliance under the state’s environment protection framework and their duties and obligations there.

So from this we encourage businesses still to seek innovative new practices and approaches to reducing air pollution. This could be for new methods, materials or technologies or techniques that work to control and reduce dust and smoke. Grants can go towards any activity that will make a substantive reduction to PM10 and PM2.5 emissions and this could be things like air pollution control equipment that reduces dust and smoke such as scrubbers, electrostatic precipitators, bag houses or filters. It could be installing hard stands or sealing work areas and private roadways to reduce dust. It could be wheel washing stations to remove dust from trucks and vehicles before they leave site. It could be upgrades to mobile or fixed plant to reduce PM10 or 2.5 emissions from non-road diesel engines. It could be misting sprays along fence boundaries or planting of vegetation barriers to suppress dust and also any other innovative solutions that will reduce the emission of smoke and dust.

So this isn’t an exhaustive list. These are just a few easy examples of things businesses and industry can do. Anything that reduces PM10 and 2.5 dust and smoke particulate matter emissions, anything that does that is in scope.

I mentioned innovative solutions that will reduce the emissions of smoke and dust. And again we won’t be funding actions proposed as a result of outstanding compliance actions from any authority. And also to note this is a competitive grants program so for that reason applications that can demonstrate innovation and going beyond minimum compliance will score favourably. Some examples might include things like joint ventures, meaning collaborative applications between businesses for common or complex areas or precincts. Could be new technologies like connected systems that would forecast and process real time weather and air quality measures then driving proactive measures on site such as increased suppression measures, shutdowns or other process changes. Could be higher quality equipment and materials. Could be actions that demonstrate driving dollars further, so value for money like new methods or materials for sealing unsealed surfaces. And also the more supporting evidence and documentation in your grant applications to demonstrate this innovation going above and beyond the better.

For the financial details there are two funding streams for this grants round. So one for businesses looking to apply for up to $50,000 excluding GST and another for businesses looking to apply for up to $100,000 from $50,000 excluding GST. These are match grants which means applicants are required to make a minimum cash co-contribution. In-kind contributions are not eligible under this fund. Collaborative partnerships between multiple businesses will be able to apply for up to $100,000 for each business in that partnership up to a total of $1 million. To help clarify the co-contributions for grants of up to $50,000 the Government will provide $2 for every $1 the business contributes. This means if a business applies for a $40,000 grant from the Government they will need to contribute $20,000 of their own. This means total funding in the end of $60,000 to implement their projects if the business makes that minimum co-contribution. And businesses can make more than the minimum co-contribution as well. That’s allowed absolutely.

For grants between $50,000 and $100,000 the Government will provide $1 for every $1 the business contributes. So for a $100,000 grant a business contributes $100,000 as well meaning a total of $200,000 for project works.

This continues on for the group applications as well. So there could be an instance where three businesses in partnership all apply for the maximum amount of $100,000 each making a total business contribution of $300,000. With the Government grants you’ll have a minimum of $600,000 then to implement improvements.

What will be funded? So funding will support projects that reduce a business’ localised contribution to air pollution specifically the emission of PM2.5 and 10 which is found in smoke and dust. Projects must be located within the inner precinct shown previously. They must meet regulatory or planning requirements for their projects and projects must be completed by 28^th of March 2025. All expenditure items must be directly related to the project and examples that would be eligible include capital purchases for infrastructure or equipment. Permanent licencing approval costs are also eligible.

Funding requirements. So applicants must have a current Australian Business Number, must be located within the precinct – and as mentioned there’s a map on the Sustainability Victoria website, an interactive Google Map – must meet or exceed the minimum co-contribution requirements detailed previously, also must agree to comply with the Victorian Common Funding Agreement Terms and Conditions and Terms of Participation in Grant Programs documents which is also on the Sustainability Victoria website. There is no minimum operating history requirement under this fund.

Applicants and project participants must also show they can demonstrate financial capability to undertake proposed projects, can meet the timelines which is to be completed by 28^th of March 2025, must have adequate insurance, must have not failed to have met program timelines of any other Sustainability Vic or DEECA funding programs previously without sufficient reason, must have not had any serious environmental, safety or workplace breaches in the last five years or if there was a breach that this has been addressed or resolved to Sustainability Victoria’s satisfaction, and also must show that they have not been subject of an enforceable undertaking or successful litigation by the Fair Work Ombudsman within the last five years.

Projects will be ineligible if they’re only undertaken to comply with regulation or a regulatory notice or order which could mean outstanding compliance actions. They’re ineligible if they do not meet the necessary regulatory or planning requirements, if they have received funding or support for the same activities from other sources, so other grants programs for the same thing. Ineligible if they require any building construction or civil works as part of the project, if they have commenced the project before signing off the Funding Agreement, and also what is out of scope is funding for trucks or motor vehicles and that includes costs associated with modifications to trucks or motor vehicles.

The following is also ineligible for funding. So lease or purchase of land, routine or cyclical maintenance works, repair of facilities damaged by vandalism, fire or other natural disasters where insurance should have covered that, operating costs, so staff costs such as salary, electricity, water, utility costs. Business as usual costs are ineligible. Internal project management costs are ineligible as well, as well as pre-construction site preparation costs such as site clearing, earthworks, site accessibility works. Marketing, advertising or promotional costs are out. Also ineligible is leasing of equipment, contingency costs, fuel costs and as mentioned before trucks or motor vehicles, so road going vehicles including costs associated with modifications are ineligible for funding.

So this is a competitive grants program and so all applications are subject to a panel assessment process once the application period closes off. So the panel is made up of three suitably qualified persons who will assess and score each application on its merit according to four criteria. Most firstly why, which assesses a clear rationale in the application for the proposed project and how it will meet the objectives of the AQIP Program. Who is the next criteria which is assessing the application and seeing that it demonstrates the business has the appropriate capability and capacity to successfully deliver the project and see it through to fruition. So this extends to project partners as well in collaborative group applications.

Then how which is describing how the project will be delivered including key steps and who will oversee and manage the works.

And then what which assesses how the application clearly articulates exactly what works will be undertaken and demonstrates how these improvements will reduce that PM2.5 smoke and PM10 dust air pollution. And if you’re purchasing equipment explain why it’s essential for the project.

So as part of the process applicants must declare any compliance issues that are outstanding with EPA, WorkSafe or the Fair Work Ombudsman, must demonstrate financial viability, have adequate insurance, must manage conflicts of interest adequately and have a satisfactory project delivery history. Sustainability Victoria will carry out due diligence checks on some or all of the above as well as once the panel assessment process gets underway.

So how to apply. Ensure your project meets the eligibility and assessment criteria. Two is read and understand the guidelines – and there is a web link on the Sustainability Victoria web page – understand the terms of participation and also the Victorian Common Funding Agreement. Third step is then to register or login to SmartyGrants to start your application and there’s a web link for that on the Sustainability Victoria page. The fourth step is then to review and complete the eligibility check. If you have any questions about this process there is a number there on the screen and also an email address. Feel free to contact those. In the subject line please use the grants name of the program, Air Quality Improvement Precincts Grants Program.

The fifth step is then to review the questions in the application form once you’re in SmartyGrants. It will ask you those criteria questions among others. And then number six plan, research and gather information. Number seven complete all the required questions in the SmartyGrants application form and upload any supporting documentation. This is an important point so any plans, photos, letters of support, quotes, it’s very helpful. The more supporting information the better that’s directly relevant to your proposal as that will help the assessment panel when it comes time to score all the applications.

Something to consider is the assessment panel can go back to applicants and ask for further clarifications against details in your original application but can’t ask for new details outside of it. So it’s important to capture all relevant and important details the first time if you can. As much information, supporting documentation is very helpful.

The next step to apply is then to complete and submit your application via SmartyGrants by midnight on 9^th of November 2023. Upon submission you’ll receive an electronic reply acknowledging that receipt by SmartyGrants. And late applications will not be accepted except under exceptional circumstances. Please refer to the Terms of Participation in Grants Programs document which is on the Sustainability Victoria website.

For timelines round two of the grants program is currently open for applications now which is this round. Closing for applications midnight Thursday the 9^th of November. After applications close we then go through to panel assessment and the formal due diligence process. Those success will be notified in February of next year followed on by the drafting of individual Funding Agreements between successful applicants and Sustainability Victoria. And once those Funding Agreements have been signed and finalised successful applicants can begin their funded projects. Businesses will have 12 months to complete funded projects which is through until the end of March 2025.

And thanks for listening. If there’s any questions we’ll go over to you Nathan.

Nathan O’Halloran:

[Visual of slide with text saying ‘Questions?’, ‘Enter or like questions in the Q&A chat’, ‘Contact the grants team’, ‘+61 3 8656 6757’, ‘grants.enquiries@sustainability.vic.gov.au’]

Thanks Brendan for that presentation. Very thorough. We don’t have any questions through the chat. As Brendan suggested, this presentation will be made available and the video of the information session on the Sustainability Victoria Guidelines page under the ‘Information Bulletin’ heading. I’d just like to emphasise a few things in regards to the grants process and support available, just to make sure that you understand program objectives and eligibility criteria, any other key components before starting that application. Ensure you allocate sufficient time to gather all required supporting documentation. This could include the letters of support and any other relevant material that strengthens your application.

Once you’ve gathered all necessary information and supporting documents spend ample time drafting your application. Make sure it aligns with the grant’s objectives and criteria and don’t leave it until the last minute to submit your application. And if you have any questions about the application process, eligibility or other concerns feel free to reach out to our grants team at grants.enquiries@sustainability.vic.gov.au. And please note that due to the competitive nature of this grant we’re unable to review drafts or provide feedback on individual applications. Ensure you’ve double checked all aspects of your application before submission.

That’s all I have. Are there any last minute questions through the chat?

I think that’s good Brendan. Thank you.

Brendan Dombrowsky:

Thanks very much everyone.

[Closing visual of slide with text saying ‘Thank you’, ‘Sustainability Victoria’, ‘Victoria State Government’, ‘Energy, Environment and Climate Action’]

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