Air Quality Improvement Precincts Grant Program

The Air Quality Improvement Precincts (AQIP) Grant Program supports businesses located in Metropolitan Melbourne’s Outer West and Inner West Air Quality Improvement Precinct identified as 2 of Victoria’s air pollution “hot spots”, to reduce the emission of PM2.5 and PM10, common air polluting particles.

• Round 1 will support Outer West Air Quality Improvement Precinct projects.
• Round 2 will support Inner West Air Quality Improvement Precinct projects.

It is expected that Round 2 will open in late 2023.

The program is being administered by Sustainability Victoria (SV) on behalf of Department of Energy, Environment and Climate Action (DEECA).

Round one applications must be submitted by 11:59 pm Wednesday 6 September 2023. Late applications will not be accepted except under exceptional circumstances.

The following are the guidelines for applicants applying for funding under Round 1 of this program.

1. Fund overview

1.1 Fund objectives

The Fund aims to support industry to reduce localised PM2.5 and PM10 air pollution in the Outer West Air Quality Improvement Precinct.

PM2.5 is particulate matter of a diameter of 2.5 micrometres or smaller, and PM10 is particulate matter of a diameter of 10 micrometres (0.01 mm) or smaller.

1.2 Funding available

Two streams of funding are available per project:

For an individual application:

• Stream 1: up to $50,000 (ex GST).
• Stream 2: over $50,000 and up to $100,000 (ex GST).

For a group application (Collaborative Partnership):

• Stream 1: up to $50,000 (ex GST).
• Stream 2: over $50,000 and up to $1,000,000 (ex GST).

In a Collaborative Partnership, the number of partners will determine the maximum amount of funding available. For example, a 4-partner application may apply for up to $400,000.

Note: eligible businesses can only apply for up to $100,000 maximum.

1.3 Co-contribution

Applicants are required to make a minimum cash Co-contribution to all projects.

• Stream 1: applicants must contribute a minimum $1 for every $2 from Victorian Government ($1:$2).
• Stream 2: applicants must contribute a minimum $1 for every $1 from Victorian Government ($1:$1).

Note: Co-contributions must be made towards eligible funded activities. In-kind contributions are not eligible under this fund.

2. Eligibility

2.1 Who can apply

Eligible organisations are businesses that are located in the Outer West Precinct both at the time of application and for the duration of the project.

Select the square in the top right corner of the map to view full screen and learn if your Business is located within the precinct.

Note: there is no minimum operating history requirement under this fund.

Eligible businesses may apply either as a single organisation or as a Collaborative Partnership involving multiple businesses. If applying as a Collaborative Partnership, a Lead Applicant must be designated. The Lead Applicant serves as the responsible Contracting Party, accountable for both the application and project delivery, including the coordination of Collaborative Partners. Grant funding will be received solely by the Lead Applicant.

Note: If the applicant is a Trust, the Funding Agreement must be executed by the Trustee of the Trust, for instance, XYZ Pty Ltd acting as The Trustee for the XYZ Trust. The Trust, as the trading entity, must meet all the fund's eligibility requirements (for example, having an ABN).

Applicants must:

• have a current Australian Business Number (ABN). If the applicant is a Trust, the Trust as the trading entity must meet this requirement
• have an appropriate legal structure such as an Australian Registered company, business cooperative or partnership and have documentary evidence of an appropriate legal structure
• be able to demonstrate financial viability to undertake the project (will meet or exceed the minimum Co-contribution requirements)
• agree to comply with the Terms of Participation in Grant Programs
• agree to comply with the funding agreement terms and conditions (PDF, 282kB).

We encourage applications from Aboriginal and Torres Strait Islander organisations.

2.2 Who cannot apply

Sole Traders and any entities that are not considered a Business, such as Local Government, State Government, Schools, Unincorporated entities.

2.3 What will be funded

Funding will support projects that:

• make a substantive contribution towards reducing the emission of PM2.5 and PM10, common air polluting particles
• will reduce contribution to air pollution or sources of dust
• demonstrate actions and innovation beyond compliance.

Projects must:

• be located in the Outer West Air Quality Improvement Precinct
• meet regulatory or planning requirements
• be completed by 24 December 2024.

All expenditure items must be directly related to the project. Examples include:

• capital purchases, such as infrastructure or equipment
• permit, licensing, approval costs.

Project examples:

• Installation of enclosed sheds.
• Sealing private roadways.
• Hardstands or sealing work areas.
• Replacing generators and fixed plant with electric or hybrid equivalent.
• Planting of vegetation to effectively act as a physical barrier to the transmission of dust and particulate emissions.
• Misting sprays along fence boundaries.
• Air filters & bag houses for emitting facilities.
• Installation of physical barriers (fencing, walls, etc.).
• Vehicle or wheel washing facilities.
• Upgrades to mobile or fixed plant to reduce PM2.5 or PM10 emissions, including installation of new diesel particulate filters, exhaust scrubbers or other upgrades.

2.4 What will not be funded

The following projects are ineligible for funding:

• Projects undertaken to comply with regulation or a regulatory notice or order.
• Projects that have received funding or support for the same activities from other sources, including other grant programs.
• Projects that do not meet regulatory or planning requirements.

The following costs are ineligible for funding:

All expenditure items that are not directly related to the project. Operational expenses that are considered as ongoing costs and personal expenses will also not be eligible. Examples include:

• lease or purchase of land
• routine or cyclical maintenance works
• repair of facilities damaged by vandalism, fire or other natural disasters where damage should be covered by insurance.
• operating costs
• internal project management costs
• pre-construction (site preparation) such as site clearing, earthworks or site accessibility works
• marketing, advertising, promotional costs
• leasing of equipment
• contingency costs
• fuel costs
• trucks or vehicles (fleet or other) and costs associated with modifying trucks, cars or motor vehicles.

The program will not fund projects that have commenced before the applicant is notified in writing that their grant application has been successful. Note: if applicants fail to execute a Funding Agreement, their eligible costs will not be reimbursed.

3. Assessment process

3.1 Assessment criteria

The assessment panel will assess the application based on merit according to the criteria below.

What

Weighting: 30%

Articulate what works will be undertaken and demonstrate how these improvements will deliver substantive outcomes for the program, specifically reducing PM2.5 and PM10 air pollution.

If purchasing equipment, explain why it is essential for the project, and how the equipment will deliver substantive outcomes, specifically reducing the emission of PM2.5 and PM10 air pollution from your site(s).

Why

Weighting: 30%

Demonstrate why the project will help address the AQIP program’s objectives. Applications should include a clear rationale for the proposed project and how it has been identified as important to the organisation.

Who

Weighting: 20%

Demonstrate that the Business has the appropriate expertise, capability, and capacity to deliver the project.

How

Weighting: 20%

Describe how the project will be delivered including key steps, an overview of the project timeline, and details of who will oversee and manage the program of works.

3.2 Due diligence checks

A risk-based approach will be used to assess the Applicant’s social, economic, safety and environmental risks in relation to the project. This assessment will include the Applicant’s Related Entities and may include Project Partners and/or Project Participants (see Section 9: Program definitions).

Applicants (and their Related Entities and, if applicable, their Project Partners and/or Project Participants) must:

• have had no Environmental, Safety or Workplace Breaches in the last five years or, if there was a breach, we may assess that the Applicant’s breach poses a satisfactory level of risk;
• have not been the subject of an enforceable undertaking or successful litigation by the Fair Work Ombudsman for a breach of the Fair Work Act 2009 or a fair work instrument within the last five years;
• demonstrate financial capability to undertake the project;
• have adequate insurance as outlined in the funding agreement such as:
  • Public liability $10M minimum
  • Professional indemnity $5M minimum (if required)
  • WorkCover
• have not failed to satisfactorily progress or complete previous projects funded by SV and/or DEECA within funding program timelines and without sufficient reason; and
• manage any conflicts of interest adequately.

Assessment of satisfactory level of risk will include but not be limited to our consideration of:

• the seriousness of any finding/s;
• whether the finding/s has been resolved to the satisfaction of the relevant enforcement agency, or the Applicant can demonstrate it is working effectively to resolve the finding;
• the efforts made by the Applicant including implementation of management systems, to ensure no further finding/s occur; and
• whether, since the finding, the Applicant has had a satisfactory level of compliance with relevant Environmental and Safety Laws and Workplace Laws.

We may conduct due diligence checks on the Project Partners and/or Project Participants involved in the delivery of the project. The Applicant must ensure that any Project Partners and/or Project Participants agree to cooperate with this requirement and will provide information at Sustainability Victoria’s request.

We reserve the right not to award funding to Applicants where the due diligence risk (including that of Project Partners and Project Participants) is unsatisfactory or not able to be managed.

4. Funding conditions

Successful applicants approved for funding must do the following.

4.1 Before starting the project

• Participate in an inception meeting to discuss their project and the funding agreement.
• Agree to realistic evidence-based and performance-based milestone payments.
• Provide Sustainability Victoria with insurance certificates of currency.
• Sign the funding agreement within 30 days of approval.
• Provide a project plan.

4.2 During and after the project

• Deliver the project as outlined in the application and comply with the funding agreement.
• Contribute to regular project progress updates or meetings.
• Notify Sustainability Victoria immediately about any delay or change to the project.
• Provide update reports to Sustainability Victoria at agreed milestones with evidence of expenditure, progress and performance
• Provide adequate monitoring and evaluation of the project according to the funding agreement.
• Collect and release data to Sustainability Victoria. Sustainability Victoria may share or report on the data.
• Contribute to the project’s promotional activities (for example, provide Sustainability Victoria with support by reviewing and approving written stories or videos).
• Participate in and contribute to Sustainability Victoria activities to distribute the findings to broader stakeholders (for example, government and industry).
• Acknowledge that the Victorian Government has contributed funding in all communications related to the project.

5. Timeline

Dates may change. We will provide applicants with updates as much as possible and when necessary.

6. How to apply

Before applying, we recommend you watch the Information session recording.

The grant program involves a competitive, merit-based application process.

1. Ensure that your organisation can apply.
2. Ensure that your project meets the criteria for funding.
3. Read the funding agreement terms and conditions (PDF, 282kB). You must meet the terms and conditions to ensure funding.
4. Read the Terms of participation in grant programs.
5. Create an account and start your application on the SmartyGrants website.
6. Submit your application by 11:59 pm, 6 September 2023. Late applications will not be accepted except under exceptional circumstances.

Your application

• Allow adequate time to plan, research, gather supporting documentation and draft your application.
• As this is a competitive grant, we cannot review drafts or provide feedback.
• You must use SmartyGrants, unless you have written permission from Sustainability Victoria.

7. Assistance available

7.1 Information session

An information session was held on Wednesday 9 August. A recording of the session is available in the Information bulletin.

7.2 Contact us

If your query pertains directly to scientific, engineering or EPA approval aspects of a proposed project, kindly detail your questions here: AQIP technical enquiries form. Please be aware that responses to these technical enquiries may take up to 5 business days.

For questions relating to your eligibility and the grant application process, please reach out to us.

Phone: +61 3 8656 6757 Monday to Friday, 10:00 am to 4:00 pm.

Email: grants.enquiries@sustainability.vic.gov.au. In the subject line, use the grant name (Air Quality Improvement Precincts Grant Program).

Please note: we cannot review drafts or provide feedback.

8. Why the Victorian Government is providing this funding

The Victorian Government’s Air Quality Strategy (Strategy) was released 27 October 2022 and includes actions to build on Victoria’s new Environment Protection Act 2017 by targeting air pollution ‘hot spots’ and supporting industry to be cleaner.

The strategy commits $2.84 million to establish Air Quality Improvement Precincts (AQIP) in Melbourne’s Inner West and Outer West in partnership with Environment Protection Authority Victoria (EPA), businesses, local government and the community to identify and implement actions to reduce localised PM10 and PM2.5 air pollution.

9. Definitions

Applicant

The applicant who applies for the funding and is responsible for all details in the submission of an application and the contractual obligations under the funding agreement with Department of Energy, Environment and Climate Action if successful for grant funding. Applicants must be legally constituted organisations and with a current ABN.

Business
A commercial enterprise seeking to generate profit through its activities, including Social Enterprises.

Charity
A Charity is an organisation that is not-for-profit and has only charitable purposes that are for the public benefit. A Charity must not be an individual, political party or government entity, and must be registered on the Australian Charities and Not-for-profits Commission Charity Register.

Co-contribution

The Applicant’s required cash or In-kind Contribution to the total project income. Co-contributions must be for eligible activities.

Collaborative Partnership

A relationship established between a Lead Applicant and Project Partner/s for the purposes of meeting common project objectives and outcomes. Collaborative Partnerships need to be demonstrated by a formal agreement between the partners that outlines the governance, financial and intellectual property arrangements and roles and responsibilities of each party. A formal agreement must either be in place or be finalised before commencement of the project.

Direct Jobs

Actual new full-time positions created by your business. This can include training or upskilling of employees who would otherwise be made redundant through the implementation of your project.

Environmental, Safety or Workplace Breach

An Environmental or Safety Breach is any past or current prosecution, reportable incident, investigation, notice, penalty, warning, regulatory intervention or enforcement action from the Environment Protection Authority Victoria (EPA), Victorian WorkCover Authority (WorkSafe) or Fair Work or failure to comply with any environmental, safety and workplace laws.

Environmental and Safety Laws

Environmental and Safety Laws are the Occupational Health and Safety Act 2004, Environment Protection Act 2017 or any other legislation, regulation, order, statute, by-law, ordinance or any other legislative or regulatory measure, code, standard or requirement relating to the protection and safety of persons or property or which regulate the environment including laws relating to land use planning, pollution of air or water, soil or groundwater contamination, chemicals, waste, the use, handling, storage or transport of dangerous goods or substances, greenhouse gas emissions, carbon trading, or any other aspect of protection of the environment.

Full-Time Equivalent Employees (FTE)

The hours worked by one employee on a full-time basis.

Calculating FTE

The calculation is used to convert the hours worked by several part-time employees into the hours worked by full-time employees. For example, you have three employees working the following - 40, 40 and 20 hours per week, giving you 100 hours per week in total.

Assuming full-time hours are 40 hours per week, your full-time equivalent calculation is 100 hours divided by 40 hours which equals 2.5 FTE.

In-kind Contribution

Note: In-kind Contributions are not eligible under this fund.

An In-kind Contribution is a contribution of a good or a service other than cash.

In-kind Contributions should include the cost for activities that are directly related to delivering your project. Examples include:

• staff time to manage project implementation (project management and installation costs that utilise existing internal resources);
• time spent on project activities by volunteers; and
• donated goods or services related to the project.

The following activities cannot be considered as In-kind Contributions:

• operating expenses that are not directly associated with delivering the project; and
• opportunity costs such as staff ‘downtime’ during the installation of equipment or implementation of activities.

Lead Applicant

The listed Applicant for the purposes of a Collaborative Partnership. The Lead Applicant will be responsible for all details in the submission of an application and the contractual obligations under the funding agreement if successful for grant funding. The Lead Applicant is also responsible for managing the project outcomes and deliverables of the Collaborative Partnership.

Project Participant/s

An organisation engaged by the Applicant to assist in the delivery of the Applicant’s project, including but not limited to major subcontractors, contractors, product suppliers and consultants.

Project Partner/s

An organisation/s in a Collaborative Partnership with a Lead Applicant that have a critical role in the project and a formal commitment to delivering the support required to ensure the project’s success.

Related Entities

Entities which are related to the Applicant, including:

• holding companies of the Applicant
• subsidiaries of the Applicant
• subsidiaries of holding companies of the Applicant
• companies with common directors or shareholders as the Applicant
• companies that are a beneficiary under a trust of which the Applicant is a trustee
• trustees of a trust under which the Applicant is a beneficiary
• companies that conduct business at the same address as the Applicant, or the same address as the location of the activity for which the funding is sought

Social Enterprise

A Social Enterprise is a business that trades to intentionally tackle social problems, improve communities, provide people access to employment and training, or help the environment.

Social Enterprises:

• are driven by a public or community cause, be it social, environmental, cultural or economic
• derive most of their income from trade, not donations or grants
• use the majority (at least 50%) of their profits to work towards their social mission.

Related Person/s

Related Person means a director, officer, employee, agent, board member or contractor of the Applicant or a Related Entity.

Workplace Laws

Workplace Laws are the Fair Work Act 2009, or any other legislation, regulation order, statute, by-law, ordinance or any other legislative or regulatory measure, code, standard or requirement relating to the provision of fair, relevant and enforceable minimum terms and conditions for all persons and to prevent discrimination against employees.