Filling the Research Gap Program - Grant Program Guidelines - Round 1

The application period for the Biochar Capacity Building program is now closed and no further applications will be accepted. Announcements of successful applications will be made in due course. The Biochar Capacity Building program guidelines are available for reference.

November 2011

Table of Contents

1 Overview
2 Purpose Of The Filling The Research Gap Program
3 How The Program Will Operate
4 Key Dates – Funding Round 1
5 Who Is Eligible?
6 What Qualifies For Funding?
7 How To Apply
8 What Are The Conditions?
9 Publication Of Grant Information
10 How Are Applications Assessed?
11 Who Is Selecting The Suitable Applicants?
12 Notification
13 Complaints Handling Process
14 Additional Information
15 Contact Us
16 Attachment A

1. Overview

The Australian Government’s Securing a Clean Energy Future plan contains four basic elements – a carbon price, innovation in renewable energy, energy efficiency and action on the land (Land Sector Package). Further details on the plan can be found on the Clean Energy Future website.

Direct emissions from agriculture are excluded indefinitely from liability under the carbon price mechanism. However, the agricultural sector currently accounts for approximately 15 per cent of Australia’s total greenhouse gas emissions. Agriculture’s green house gas emissions comprise:methane from enteric fermentation (approx. 65 per cent of agricultural emissions), nitrous oxide from agricultural soils (approx. 17 per cent), prescribed burning of savannas (approx. 14 per cent) and emissions from livestock manure (approx. 4 per cent). These emissions represent an opportunity for agriculture to play an important role in mitigating the impact of climate change.

The Carbon Farming Futures program will ensure that advances in emissions reduction technologies and techniques will continue the evolution of management practices in the land sector towards emissions reduction and improved productivity. These advances will allow farmers and other landholders to benefit from the economic opportunities of the Carbon Farming Initiative¹(CFI) while assisting Australia in achieving its long term emission reduction targets.

The $1.7 billion Land Sector Package is about creating new opportunities for land managers to help the environment by reducing greenhouse gas emissions. Actions to reduce greenhouse gas emissions or increase carbon storage can also increase the land sector’s resilience to climate change, protect Australia’s natural environment and improve long term farm productivity.

The Land Sector Package will complement the CFIand comprises a range of measures which include the Carbon Farming Futures program and the Biodiversity Fund. A summary of the Land Sector Package showing the lead departments and programs, amount and availability of funding and a brief description of each program is included as Attachment  A.

The Carbon Farming Futures program will assist land managers to make the most of carbon farming opportunities. This program will provide substantial funding towards the research and demonstration of abatement practices that land managers can implement on–farm. The research activities will also support opportunities under the CFI through the development of abatement technologies and practices. The program will also fund a national common practice survey to underpin the CFI additionality test and development of offset methodologies.

The Carbon Farming Futures program comprises five elements:

• filling the research gap
• development of methodologies
• action on the ground
• extension and outreach
• 15% tax offset for the purchase of minimum tillage equipment

The Department of Agriculture, Fisheries and Forestry (the department) is responsible for delivering the Filling The Research Gap, Action On The Ground and the Extension And Outreach elements of the program. The Department of Climate Change and Energy Efficiency (DCCEE)is responsible for the development of methodologies. Treasury is responsible for delivering the 15% tax offset.

These guidelines outline the process for submitting an application for funding under the Filling the Research Gap program. Filling the Research Gap will invest $201 million to support research to identify and develop new ways for land managers to reduce emissions and store carbon in the soil, thereby facilitating participation in the CFI.

These guidelines are for the first round of funding. Future funding rounds will be announced at a later stage and will be subject to research priorities identified in a comprehensive research strategy (to be developed) and funding availability.

2. Purpose Of The Filling The Research Gap Program

Filling the Research Gap will support research into emerging abatement technologies, strategies and innovative management practices that reduce greenhouse gas emissions from the land sector, increase soil carbon and enhance sustainable agricultural practices.

Filling the Research Gap will build on research undertaken through the Climate Change Research Program² (CCRP). Research projects will draw on industry, scientific and government sectors to ensure that:

• sufficient expertise and experience is brought together to achieve outcomes that will make a difference
• commercial realities are taken into account to improve the transition from applied research to demonstration of commercial applications.

Research projects will target current research gaps around abatement technologies and practices. It is expected that the results of research activities will be published in peer–reviewed scientific literature.

A number of practical difficulties exist in accurately measuring emissions in the agriculture sector. Improving measurement techniques would assist in producing better estimates to inform mitigation strategies. DCCEE has primary carriage of maintaining and developing Australia’s national emissions inventory. The Carbon Farming Futures program will seek to complement, not duplicate, the DCCEE work program in this area. Research on managing emissions will be reflected, over time, in refinements to emission factors and measurement techniques utilised by the national emissions inventory.

Priorities for the first funding round focus on improving understanding of the sources, scale and cause of agricultural emissions, and quantifying the effectiveness of management practices aimed at reducing emissions. This will contribute to abatement opportunities under the CFI.

Research priorities for funding round one of the Filling the Research Gap program are:

• reducing methane emissions
• reducing nitrous oxide emissions
• increasing soil carbon
• improved modelling capability.

Priority 1: Reducing methane emissions

Agriculture produces around 60 percent of Australia’s methane emissions, the majority coming from livestock. Through the CCRP, researchers have been investigating various measurement techniques (e.g. tracer gas devices and open path laser technology) as well as strategies to reduce methane emissions from ruminant animals.

Animal breeding, biological controls, dietary supplements and alternative forage sources as abatement activities are all methods that have been trialled so far under the CCRP. However, further research is required to build on current knowledge and develop practical technologies for producers.

Further research is needed to:

• investigate a wider range of farming practices and develop new methods by which landholders can reduce methane emissions
• better understand the role of soils in greenhouse gas fluxes
• better understand how to reduce greenhouse gas emissions through manure management
• convert current technologies around methane reduction into practical solutions for landholders.

Priority 2: Reducing nitrous oxide emissions

Nitrous oxide is a significant greenhouse gas as it is 310 times more potent than carbon dioxide. Through the CCRP researchers have been investigating different methods for reducing nitrous oxide emissions. Preliminary results suggest that nitrous oxide emissions can be reduced in a number of ways, including strategic irrigation management (timing and amount of water applied), using legume crops to build up soil N (rather than using nitrogenous fertiliser), and using fertiliser breakdown inhibitors.

Further research is needed to:

• investigate a wider range of farming practices and develop new methods by which landholders can reduce nitrous oxide emissions
• better understand the interactions between carbon and nitrogen and their influence on productivity and greenhouse gas emissions
• improve our understanding of nitrous oxide emissions under a range of soils and production systems to underpin methodology development
• better understand the role of soils in greenhouse gas fluxes.

Priority 3: Increasing soil carbon

Through the CCRP researchers have started to examine various management practices and their impact on soil carbon levels. The CCRP has also developed a national standard for measuring soil carbon and provided key data to improve the National Carbon Accounting System.

Further research is needed to:

• investigate and verify a wider range of alternative methods of increasing soil carbon
• examine the problems with measuring and monitoring carbon in Australian soils and investigate practical solutions
• better understand the long–term viability of sequestering carbon in soil as an emissions management practice
• better understand the interactions between carbon and nitrogen and their influence on productivity and greenhouse gas emissions
• develop robust soil carbon methodologies
• better understand the role of soils in greenhouse gas fluxes.

Note: Research on soil carbon must be consistent with or complimentary to methods developed under the Soil Carbon Research Program³.

Priority 4: Improved modelling capability

Improved modelling capability is required to better estimate levels of abatement and carbon sequestration in response to different management practices. Improved modelling will also lower the costs of implementing offset methodologies and help quantify the likely financial rewards for land managers under the CFI.

Improved modelling supports the first three research priorities identified above. Projects are encouraged to utilise site specific data collected around methane, nitrous oxide and carbon sequestration to build the capacity of existing models and integrate all sources and sinks in a whole farm systems context to evaluate the net mitigation benefit of various technologies and management practices.

Modelling improvement activities should aim to ensure that the resulting data is of a kind and standard that allows it to inform Australia’s National Greenhouse Gas Accounts. This will ensure that, over time, research under the Filling the Research Gap may be reflected in refinements to Australia’s National Greenhouse Gas Accounts or used to develop CFI methodologies.

3. How The Program Will Operate

Filling the Research Gap funded projects will be selected through a competitive grants process. Proposed work can be up to a maximum of three years. Within the funding limits of the program, there is no limit on the amount of funding a project may apply for.

Applicants are required to submit an application for funding and meet all eligibility and other requirements set out in the guidelines.

Applications will be assessed against the assessment criteria listed in “Section 10 – How are the applications assessed?” Section 10 also sets out the assessment process and is to be read in conjunction with “Section 11 – Who is selecting the suitable applicants?”

Successful applicants will be required to enter into a funding deed with the Commonwealth of Australia through the Department of Agriculture, Fisheries and Forestry (the department) before they receive any Commonwealth funding.

Proposed work will be carried out over a period of up to three years (2012–13 to 2014–15). Program funds are available across four financial years (2011–12 to 2014–15), with the first payment initiated by the signing of the funding deed. Future payments will be made in increments on the completion of milestone activities as specified under the funding deed.

Applicants’ in–kind contributions are required and cash contributions are expected. In–kind contributions must be directly related to the eligible costs of delivering the activities of the project and can include salaries of staff for the time they are involved and other costs incurred for the duration of the project. Contributions (both cash and in–kind) should be listed in the project budget.

Successful applicants will be required to submit regular progress reports (at least every six months) under the milestones in the funding deed. These reports will cover the activities, outputs and outcomes along with all necessary information required to verify results (i.e. evidence of achievement). Successful applications will also need to identify methods for communicating outputs and outcomes to Australia’s land managers as well as to relevant science and policy communities.

4. Key Dates – Funding Round 1

The table below presents anticipated key dates for the first year of funding for the Filling the Research Gap program. Subsequent rounds will be announced in future years.

Anticipated key dates for the first year of funding

Milestone	Anticipated Dates
Guidelines available and application period open	November 2011
Applications close	3 February 2012
Assessment of applications, refining of selected projects, endorsement and approval	Early April 2012
Funding deed signed by both parties and initial payment made	June 2012

5. Who Is Eligible?

Applicants must be an Australian company, business, research organisation, government agency or department, for example:

• Australian business with an Australian Business Number
• Rural Research and Development Corporation
• National or state primary industry organisation
• Australian, state or territory or local government agency or statutory corporation
• Australian tertiary education institution
• Australian Cooperative Research Centre
• Australian public sector research agency
• Australian private research organisation.

6. What Qualifies For Funding?

Applications for Filling the Research Gap program funding must meet the following requirements:

• proposed work needs to address one or more of the program priorities outlined in Section 2 – Purpose of Filling the Research Gap Program and be undertaken in Australia. Applications that address more than one priority are encouraged
• projects may be for one, two or three years or part thereof, and proposed work should be completed by 1 June 2015
• the application must address the assessment criteria (Section 10 – How are the applications assessed)
• proposed work must not duplicate activities which are being funded under other programs.

Eligible activities

Examples of activities that would be eligible for funding include, but are not limited to:

• research into innovative cropping or grazing practices to increase soil carbon
• research into new fertiliser technologies and management strategies to reduce soil nitrous oxide emissions
• research into feed additives or forages that can reduce methane production in ruminants
• development of improved measurement techniques.

Funding will only be paid for work outlined in the funding deed and undertaken as part of the Filling the Research Gap program. The grant will not pay for any expenditure incurred prior to the funding deed being signed.

Ineligible activities

Examples of project activities that would be ineligible to receive funding through the Filling the Research Gap include research that:

• does not address any of the identified research priorities
• has already been undertaken and funded through other programs
• purely seeks to develop or improve a bio–physical model. In order to be eligible projects need to collect site specific data and use this data to improve existing model estimations around abatement and carbon sequestration.

The following costs would also be ineligible for funding through the Filling the Research Gap program. It is envisaged that provision of these activities would be part of an applicant’s contribution to the project.

• capital expenditure for the purchase of assets such as office furniture and equipment, motor vehicles, computers, printers, photocopiers, construction, renovations and utilities
• costs involved in the purchase/upgrade of software including licenses
• any cost incurred prior to signing a funding deed with the Commonwealth
• core business expenses such as:
  • staff relocation costs
  • administration/overhead and infrastructure costs
  • international travel and living expenses for undergraduate students
• Australian domestic travel and living allowance that is not directly associated with carrying out the research project
• hospitality/catering costs
• financial support for feasibility studies
• commercially based activities, such as costs associated with:
• • the protection or patenting of intellectual property with market research for products or research carried out by surveys to assess the size of the market and/or the price of a particular service or product
  • activities of a distinctly commercial or proprietary nature that are aimed at selling or attracting investment
  • product development and the building or production of commercial prototypes.

7. How To Apply

Applicants must use the following process to apply for funding under the Filling the Research Gap program. All documents can be downloaded in Microsoft Word 2007 format (.doc). For alternate formats or hard copies please contact the Filling the Research Gap program or call 1800 108 760.

1. Read these guidelines.
2. Complete the application form electronically as a Microsoft Word document following the instructions in the application form.
3. Submit both electronic and hard copies of the application form to the Department of Agriculture, Fisheries and Forestry via the following methods:
   1. An electronic copy of the application form in Microsoft Word format via email to ftrg@daff.gov.au.

      Note: The application form needs to be received by 3 February 2012.

   2. A signed hard copy of the application form and copies of all supporting documentation sent to:

      Filling the Research Gap Applications
      Climate Change Policy Branch
      Department of Agriculture, Fisheries and Forestry
      GPO Box 858
      CANBERRA CITY ACT  2601

      Note: The hard copy needs to be post marked 3 February 2012 or earlier and include letters of commitment confirming and outlining consortium members’ cash and/or in–kind contribution.

Applications that do not meet these deadlines may not be accepted.

Proponents need to provide a fully completed application form. Failure to address all elements of the application form could result in the application being rejected.

Applicants should call 1800 108 760 or contact the Filling the Research Gap program if they wish to seek clarification of these guidelines or the application form.

 

8. What Are The Conditions?

Applicants are responsible for ensuring that they have examined these guidelines and all documents referred to in the guidelines. Applicants should ensure that their application meets the eligibility and other requirements (seeSections 5 to 8) and assessment criteria (see Section 10) and that they have satisfied themselves as to the correctness and sufficiency of their application.

It is the applicant’s responsibility for ensuring that letters of commitment from consortium partners are provided (see assessment criterion 7) and that all supporting documentation is submitted by the closing date for applications. If supporting documentation has not been sent or post marked by the required date the application may not be accepted. The department may consider the submission of late applications under genuine extenuating circumstances, provided an alternative timeframe has been agreed prior to the closing date.

Applicants are responsible for all costs incurred in the preparation and lodgement of the application and in respect of any discussions, negotiations, enquiries or any work undertaken prior to signing a funding deed with the Commonwealth.

Successful applicants will be required to enter into a funding deed with the Commonwealth. The standard funding deed template is available on the DAFF website. You can also obtain a copy by contacting the Filling the Research Gap program or calling 1800 108 760.

The standard funding deed template contains the terms and conditions of the grant. Applicants should read the draft funding deed before submitting their applications and should seek independent legal advice before entering into a funding deed. No legally binding relationship exists until a funding deed is signed by all parties.

Successful applicants will be required to submit progress (milestone) reports as well as financial and end of year reports as outlined in the funding deed.

9. Publication Of Grant Information

Applicants should be aware that if they are successful, Commonwealth policy requires the department to publish information on its website about the applicant, including but not limited to:

• Name of the person or entity receiving the grant
• Title and purpose
• Amount of funding received
• Term of the grant
• Funding location.

By submitting an application for funding under this grant program, the applicant consents to publication of the above information by the department if they are awarded funding under this grant program.

10. How Are Applications Assessed?

Your application will be scored and ranked against all other applications received. Applications that best align with the assessment criteria will have the greatest likelihood of being funded.

Applications will be assessed on a merit basis by the department’s Filling the Research Gap Expert Panel (Expert Panel). The Expert Panel will comprise leading research scientists, industry representatives and government officials. Members will have expertise in agricultural research and agricultural economics, with experience in research and delivery of both government and industry programs.

Applications will be assessed against the following criteria. All criteria are weighted equally.

Assessment Criteria

1. Addresses an identified gap in one or more of the research priorities outlined in Section 2

   Factors to address when responding to this criterion include:

   • the degree to which your project specifically addresses a research gap in one or more of the research priorities
   • development of a timeline indicating when the results of your project will contribute to meeting one or more of the priorities.

2. Clearly defined project activities (what work will be undertaken), outputs (what will be produced) and outcomes (what are the benefits) that can be delivered within the specified timeframe

   Factors to address when responding to this criterion include:

   • clearly describe the proposed activities and outputs
   • clearly describe how the outcomes will be achieved including how they will be measured
   • clearly outline how this work will benefit the land sector in terms of abatement and potential for CFI participation (for details on the CFI see www.climatechange.gov.au/cfi)
   • a clear timeline for the project, including key milestones.

3. Demonstration that the proposed activities, outputs and outcomes will achieve the program’s objective of developing new methods and technologies that will help landholders sequester carbon and reduce their greenhouse gas emissions

   Factors to address when responding to this criterion include:

   • how the outputs and outcomes of the proposed activities will contribute to the Filling the Research Gap program achieving its priorities described above
   • how collaboration with other project partners will help the project meet the program’s objective
   • identify methods for communicating outputs and outcomes to land managers and relevant science and policy communities.

4. Proponent’s managerial and financial competency to manage the project and grant monies

   Factors to address when responding to this criterion include:

   • financial management systems and policies in place to manage grant monies
   • capacity of the project manager to administer grants of this nature, including relevant experience.

5. Technical feasibility and competency to deliver the project outputs and outcomes

   Factors to address when responding to this criterion include:

   • practical and realistic methodology which will ensure delivery of project outputs and outcomes
   • research capability of project proponent and other consortium members (if applicable), including previous work on the project or related topics
   • how you will report against your expected outputs and outcomes, i.e. how you will monitor and evaluate your work.

6. Identifies key risks and mechanisms to treat these risks

   Factors to address when responding to this criterion include:

   • identification of risks
   • proposed treatment (how the risk will be minimised).

7. Appropriate budget

   In assessing this criterion, the assessment panel will take into account the extent to which the proposal demonstrates value for money including:

   • A budget showing how the grant funding will contribute directly to the achievement of Filling the Research Gap objectives
   • The extent to which value for money of the proposed project is enhanced through further cash or in–kind contributions
   • Letters of commitment showing the level of contribution from co – contributors / consortium members.

11. Who Is Selecting The Suitable Applicants?

Successful projects will be selected through a competitive grants process and approved by the Minister for Agriculture, Fisheries and Forestry or his delegate.

Applications will initially be examined by departmental officers to ensure that the application is eligible and all requirements of the application process have been met (Sections 5 to 8). The department will provide all applications to the Expert Panel, along with a summary of the pre–assessment on eligibility.

Eligible applications that meet all program requirements will be ranked against the assessment criteria by the Expert Panel. During the assessment process the Expert Panel will identify synergies between individual applications as well as ensure that project objectives, activities and outcomes are within the scope of the Filling the Research Gap program.

The Expert Panel will make recommendations to the department on those applications which:

• are ranked highly and could be funded through this round
• could be funded through this round provided that certain conditions are addressed / rectified
• are ranked lowly and so should not be pursued further.

The Expert Panel will advise the department where obvious synergies exist between highly ranked projects (i.e. where the merging of two individual projects may lead to greater program outcomes). In such cases, the department may invite applicants to join into coordinated, collaborative projects.

Once assessed by the Expert Panel, an outline of the recommended projects (i.e. project title and a summary of the proposed work) may be submitted to the Land Sector Carbon and Biodiversity Board (the board) for information. Final recommendations will be submitted by the department to the Minister for Agriculture, Fisheries and Forestry or his delegate, for approval (Figure 1).

All applicants will be advised of the outcome of their application in writing.

Figure 1: Application process for Filling the Research Gap program

12. Notification

Successful Applicants

Successful applicants will receive a letter of offer outlining the project and the amount of funding to be allocated (including a schedule of allocated funds).

The letter of offer does not constitute a funding deed and successful applicants must not commence a project until a funding deed has been negotiated and executed between the Commonwealth and the funding recipient.

Following receipt of the letter of offer and any negotiation, a funding deed will be settled between the Commonwealth and the successful applicants and signed by the respective delegates.

Where a consortium approach is used, lead organisations will be required to enter legally binding arrangements with consortia partners for approved projects. Signed letters of support clearly outlining the level of contribution from all consortium members need to be provided prior to signing of the funding deed. Funding recipients may enter into subcontracts with companies in relation to projects. The terms and conditions of the funding deed with the lead organisation will also be imposed on consortia and sub contractors.

The department reserves the right to negotiate with the lead organisation on any aspect of the project prior to the execution of the funding deed, including supporting fewer projects, offering less funding than the amount for which they applied, or seeking further outcomes.

Unsuccessful Applicants

Where an application is unsuccessful, applicants will be notified in writing by the department. There is no appeal mechanism for unsuccessful applicants, nor will unsuccessful applications be reviewed. However, those dissatisfied with the process may follow Section 13 below. Feedback on unsuccessful applications will be available on request. Feedback can be obtained by contacting the Filling the Research Gap program.

13. Complaints Handling Process

If an applicant is dissatisfied with the way in which their application has been handled by the department, they can lodge a complaint by contacting the department on 1800 108 760, or by contacting the Filling the Research Gap program or by mail to:

Filling the Research Gap Team
Climate Change Policy Branch
Department of Agriculture, Fisheries and Forestry
GPO Box 858
CANBERRA CITY ACT  2601

The complaint may then be reviewed by one or more independent areas of the department. If no resolution is achieved, an applicant can apply to the Commonwealth Ombudsman. The Ombudsman will usually not investigate a complaint unless the matter has first been raised with the department and the department has been provided with a reasonable opportunity to respond.

The Commonwealth Ombudsman can be contacted by phone (toll free: 1300 362 072) or by email: ombudsman@ombudsman.gov.au. For further information visit the Commonwealth Ombudsman website.

14. Additional Information

Tax Implications

Applicants are advised to seek tax advice before applying and / or entering into a funding deed. Applicants can contact the Australian Taxation Office call centre to discus business tax issues on 13 28 66.

15. Contact Us

For further information on the Filling the Research Gap program, telephone 1800 108 760, contact the Filling the Research Gap program, or visit Filling the Research Gap.

Attachment A

The Government’s plan for a clean energy future will transform the way Australians care for and manage our natural resources. Land sector measures will provide additional opportunities for stakeholders to engage in projects that reduce or store carbon in the landscape, as well as to improve biodiversity and other environmental outcomes in their regions.Over $1.7 billion of carbon revenues will be invested in the land sector in the next six years through funding programs – most of which are ongoing. The land sector measures are:

Carbon Farming Futures

($429 million over six years) – Funding measures to help farmers and other landholders to benefit from carbon farming. Comprises five elements

• Filling the Research Gap ($201 million over six years) to fund research into new technologies and practices for land managers to reduce emissions and store soil carbon. National survey to identify common practice. Commences in 2011/12.
• Converting research into methodologies ($20 million over six years) to convert research into estimation methodologies for use in the CFI. Commences in 2012/13.
• Action on the Ground ($99 million over six years) to assist industry and farming groups test and apply research outcomes in real farming situations.
• Refundable Tax Offset (RTO) (over three years) to provide 15% RTOs for new eligible conservation tillage equipment installed between 1 July 2012 and 30 June 2015.
• Extension and Outreach ($64 million over six years) to provide information, support and an extension network to help farmers take action on the land.

Biodiversity Fund

($946 million over six years) – Support for projects that establish, restore, protect or manage biodiverse carbon stores. Commences in 2011/12.

Indigenous Carbon Farming Fund

($22 million over five years) – support Indigenous participation in the Carbon Farming Initiative. Commences 1 July 2012.

Regional Natural Resource Management Planning for Climate Change Fund

($44 million over five years) – Support for regional natural resource management (NRM) organisations to incorporate climate change mitigation and adaptation components into existing regional NRM plans. Commences 1 July 2012.

Carbon Farming Skills

($4 million over five years) – Funding available for training and accreditation of carbon brokers and aggregators so landholders have access to credible, high quality advice and carbon services. Commences 1 July 2012.

Carbon Farming Initiative Non–Kyoto Carbon Fund

($250 million over six years) – Government purchase of land sector abatement that is not counted towards Australia’s emissions targets under current accounting rules. Commences 1 July 2013.

Land Sector Carbon and Biodiversity Board

Establishment of a permanent, expert board to provide advice on implementation of the measures.

---

Notes

1 Further information available at: www.climatechange.gov.au/cfi

2 Further information available at: Australia’s Farming Future

3 Further information available at: www.csiro.au/science/Soil-Carbon-Research-Program.html