Policies, Templates & Documentation
Complete documentation library organized by stakeholder role and program phase. Every policy, form, template, and guide for CEIP program administration.
What is CEIP?
The Clean Energy Improvement Program (CEIP) is Alberta's property-assessed clean energy financing mechanism, established under the Municipal Government Act (RSA 2000, c.M-26) and the Clean Energy Improvements Regulation (Alta Reg 212/2018, as amended by Alta Reg 153/2020). CEIP enables property owners to finance energy efficiency and renewable energy improvements through their municipality, with repayment via property tax assessment. The financing attaches to the property, not the owner.
This program model is analogous to established municipal infrastructure financing mechanisms such as local improvement charges for sidewalks, sewers, and other public infrastructure. The key distinction is that CEIP applies to privately-owned properties undertaking clean energy improvements that reduce energy consumption, greenhouse gas emissions, or water usage.
DRC's Role
Deep Retrofit Capital Inc. is a ministerially-designated CEIP Program Administrator (Ministerial Order 16/2025, signed October 23, 2025). DRC administers CEIP for all property types across all Alberta jurisdictions using a 100% private-capital model with zero public funds.
As Program Administrator, DRC is responsible for the full lifecycle of CEIP program delivery, including: developing eligible improvements lists, qualifying contractors, processing applications, structuring financing, overseeing installations, and managing long-term monitoring and reporting obligations. DRC operates under the regulatory oversight of the Government of Alberta and in partnership with participating municipalities.
DRC operates on a 100% private-capital model. Revenue is generated through administration fees (maximum 5% of total capital cost per regulation) and application fees ($100 residential, $500 non-residential/industrial, $200 farm). No public funds are used in program delivery.
Property Type Coverage
| Property Type | Max Funding | Application Fee | DRC Audit Policy | Special Requirements |
|---|---|---|---|---|
| Residential | $50,000 | $100 | Pre: Simplified assessment; Post: Energy evaluation | Dower Act compliance, mortgagor confirmation |
| Commercial | $1,000,000 | $500 | Pre: ASHRAE L3; Post: ASHRAE L2 (1yr) | Professional oversight throughout |
| Farm | $300,000 | $200 | Pre: ASHRAE L3 (ag-adapted); Post: ASHRAE L2 | Seasonal baselines, MGA Part 10 |
| Non-Designated Industrial | $1,000,000 | $500 | ASHRAE Level 3 | Same as commercial |
Municipalities with CEIP Bylaws
As of early 2025, 29 Alberta municipalities have passed CEIP bylaws enabling the program within their jurisdictions.
Regulatory Framework
| Regulation | Description | Reference |
|---|---|---|
| An Act to Enable Clean Energy Improvements (Bill 10) | The foundational enabling legislation (assented June 11, 2018) that amended the Municipal Government Act to create Division 6.1, authorizing municipalities to establish clean energy improvement programs, impose energy improvement taxes, and designate program administrators. Municipal borrowing for CEIP does not count against municipal debt limits. | SA 2018, c 6 |
| Clean Energy Improvements Regulation | Core CEIP regulation establishing the program framework, eligible improvements, contractor requirements, application process, agreement terms, and monitoring obligations. Came into force January 1, 2019. | Alta Reg 212/2018 |
| CEIP Amendment Regulation | Updates and amendments to the original regulation, expanding scope and clarifying procedures | Alta Reg 153/2020 |
| Municipal Government Act, Division 6.1 | The sections of the MGA added by Bill 10, providing municipalities authority to establish CEIP programs, impose energy improvement taxes, and enter agreements with program administrators | RSA 2000, c.M-26 |
| Emissions Management and Climate Resilience Act | Provides the Minister with authority to designate program administrators and establish climate-related programs | SA 2003, c.E-7.8 |
| Freedom of Information and Protection of Privacy Act | Governs data collection, use, disclosure, and protection requirements for all program participant information | RSA 2000, c.F-25 |
Full regulation text available at: qp.alberta.ca/documents/Regs/2018_212.pdf and qp.alberta.ca/documents/Acts/m26.pdf
Phase 1 -- Before You Apply
1. Program Guide for Property Owners P1
This guide provides a comprehensive overview of the Clean Energy Improvement Program for property owners considering clean energy improvements to their property.
What is CEIP?
CEIP is a property-assessed clean energy financing program that allows you to finance energy efficiency and renewable energy improvements through your municipality. Rather than paying for improvements upfront or through traditional loans, CEIP financing is repaid through a special assessment on your property tax bill over the lifetime of the improvement (7 to 60 years depending on the improvement type).
How Does Financing Work?
The total cost of your project (including capital costs, professional services, and incidental costs up to 15% of total capital) is divided by the probable lifetime of each improvement to determine your annual payment. This payment is added to your property tax bill. Because the financing is tied to the property, if you sell, the remaining payments transfer to the new owner.
What Improvements Are Covered?
Eight categories of eligible improvements: building envelope upgrades (insulation, windows, air barriers), mechanical systems (HVAC, ventilation), energy management systems, LED lighting, solar and renewable energy systems, and high-efficiency equipment. The full list is maintained by DRC and published for each participating municipality.
Property Sale Implications
The CEIP agreement is registered on your property title. If you sell the property, the remaining CEIP payments transfer to the new owner. You are required to disclose the CEIP agreement to prospective buyers, and the disclosure must be appended to any contract of sale. Real estate agents must also be notified of the agreement.
2. Eligibility Checklist P1
Property Eligibility
- Property must be located within a municipality that has passed a CEIP bylaw
- Property must not be in foreclosure or subject to a power of sale
- No existing unpaid Clean Energy Improvement agreement on the property
- No outstanding safety code violations or compliance orders
- Property must not be subject to ongoing litigation that could affect title
- Property assessment must be current and not under appeal for reasons affecting eligibility
Participant Eligibility
- Property owner(s) must not be in property tax arrears
- Owner(s) must not be in bankruptcy or insolvency proceedings
- Mortgagor confirmation must be obtained (lender approval of CEIP financing)
- Property tax must be in good standing for at least 5 consecutive years
- All registered owners must consent (Dower Act compliance for applicable property types)
- Condominium board approval required for common area improvements (Regulation 7.2.c)
3. Eligible Improvements Catalog P1
The following table summarizes the categories of improvements eligible for CEIP financing, with representative metrics for commercial-scale projects. Actual values vary by property type, size, and specific improvement specifications.
| Category | Useful Life | Est. Savings | Est. Cost | Examples |
|---|---|---|---|---|
| LED Lighting | 10 years | $200,000 | $200,000 | LED retrofits, lighting controls, daylighting |
| HVAC Systems | 25 years | $450,000 | $460,000 | Heating, cooling, ventilation, heat recovery |
| Solar Panels | 25 years | $1,000,000 | $1,000,000 | Photovoltaic arrays, micro-generation |
| Insulation / Airtightness | 60 years | $200,000 | $200,000 | Thermal insulation, air barriers, moisture management |
| High-Efficiency Windows | 25 years | $225,000 | $230,000 | Triple-pane, low-E coatings, thermally broken frames |
| Energy Management Systems | 15 years | $375,000 | $380,000 | Building automation, load management, smart controls |
| Renewable Generation | 20 years | $1,000,000 | $1,000,000 | Wind turbines, combined heat and power, geothermal |
| Efficient Equipment | 7 years | $25,000 | $26,000 | Kitchen, office, industrial appliances |
4. Frequently Asked Questions All Phases
What is CEIP?
The Clean Energy Improvement Program (CEIP) is Alberta's property-assessed clean energy financing mechanism. It allows property owners to finance energy efficiency and renewable energy improvements through their municipality, with repayment added to their property tax bill. The program is authorized under the Municipal Government Act and regulated by Alta Reg 212/2018.
How do I apply?
First, confirm your property is in a participating municipality. The regulation permits the program administrator to request a technical assessment or energy audit (Reg 7.3). DRC's policy requires a pre-project energy assessment: ASHRAE Level 3 for commercial/industrial properties, or a simplified energy assessment for residential properties. This is a DRC policy decision to support private-capital investment validation, not a regulatory mandate. Gather required documents: proof of ownership, proof of insurance, tax sworn statement. Submit your application through the DRC portal with the application fee ($100 residential, $200 farm, $500 commercial/industrial). DRC will review and respond within the published processing timeline.
What improvements are eligible?
Eight categories of improvements are eligible: building envelope (insulation, windows, air barriers), mechanical systems (HVAC), energy management systems, LED lighting, solar and renewable energy, and efficient equipment. All improvements must reduce energy consumption, greenhouse gas emissions, or water usage. The specific eligible improvements list is published by DRC and may vary by municipality.
How does repayment work?
Your annual payment is calculated using the formula: Annual Payment = (A + B + C) / D, where A = capital cost, B = professional services, C = incidental costs (max 15% of capital), and D = probable lifetime in years. This amount is added to your property tax bill. Payments continue for the lifetime of the improvement (7 to 60 years). The municipality collects payments through the normal property tax process.
What happens if I sell my property?
The CEIP agreement is registered on your property title, meaning the obligation runs with the land. If you sell, the remaining payments transfer to the new owner. You must disclose the CEIP agreement in any sale transaction, and this disclosure must be appended to the contract of sale. The land title registration ensures all parties are aware of the obligation.
How long does the process take?
Timeline varies by project complexity and property type. Typical milestones: Application submission and review (2-4 weeks), Agreement negotiation and signing (1-2 weeks), 10-business-day rescission period, Municipal processing and title registration (1-2 weeks), Installation authorization and contractor scheduling (varies), Installation completion and verification (project-dependent). Simple residential projects may complete in 2-3 months; complex commercial projects may take 6-12 months.
What is an ASHRAE audit?
An ASHRAE energy audit is a systematic assessment of a building's energy use, conducted according to standards published by ASHRAE (the American Society of Heating, Refrigerating and Air-Conditioning Engineers). CEIP requires an ASHRAE Level 3 audit before project approval (establishing the baseline) and an ASHRAE Level 2 audit one year after project completion (measuring actual performance). Audits must be performed by a qualified third-party professional: Professional Engineer (P.Eng), Certified Engineering Technologist (CET), or Certified Energy Manager (CEM) with at least 3 years of relevant experience.
Phase 2 -- Applying
5. Application Requirements Checklist P2
The following documents are required with your CEIP application. Requirements vary by property type.
All Property Types
- Completed DRC CEIP Application Form
- Proof of property ownership (current land title or equivalent)
- Proof of property insurance (current certificate of insurance)
- Sworn tax statement confirming no arrears for past 5 years
- Current property assessment notice
- Application fee payment ($100 residential / $200 farm / $500 commercial or industrial)
Commercial / Industrial
- ASHRAE Level 3 energy audit report (DRC policy requirement for private-capital de-risking; completed within 3 months, by qualified P.Eng/CET/CEM; the regulation permits the administrator to define assessment scope per Reg 7.3)
- Professional engineer or architect endorsement of proposed improvements
- Corporate authorization (board resolution or equivalent for corporate owners)
Residential
- Simplified energy assessment (DRC policy requirement; ASHRAE Level 3 audit may also be accepted; completed within 3 months)
- Dower Act consent (where applicable)
- Mortgagor confirmation letter
- Condominium board resolution (for common area improvements, per Reg 7.2.c)
Farm
- ASHRAE Level 3 energy audit adapted for agricultural operations (completed within 3 months)
- Seasonal energy baseline data where applicable
- Documentation of MGA Part 10 tax classification status (Reg 10.2)
6. ASHRAE Level 3 Audit Guide P2
DRC policy requires a pre-project energy audit as a private-capital de-risking measure. For commercial and industrial properties, DRC requires an ASHRAE Level 3 energy audit; for residential properties, a simplified energy assessment is accepted. The regulation permits the program administrator to define assessment requirements (Reg 7.3) but does not mandate a specific audit level. DRC has chosen ASHRAE standards to provide the rigorous baseline needed for private-capital investment validation. Post-project, DRC requires an ASHRAE Level 2 audit one year after completion to verify actual energy savings against projections.
What It Includes
- Detailed site conditions assessment and building characteristics documentation
- Complete equipment inventory with specifications, conditions, and operating parameters
- Historical utility billing data analysis (minimum 12 months)
- Projected energy savings for each proposed improvement (kWh, GJ, tCO2e)
- Financial analysis: ROI, NPV, payback period, revenue projections, maintenance cost impacts
- Micro-generation compliance assessment (where applicable)
- CSA/ULC certification verification for proposed equipment
- Implementation timeline with milestones
- Interconnection analysis for grid-connected systems
- Scalability assessment for future improvement phases
Who Can Perform It
The audit must be performed by a qualified, independent third party. Acceptable qualifications:
- P.Eng -- Professional Engineer registered with APEGA
- CET -- Certified Engineering Technologist
- CEM -- Certified Energy Manager
The auditor must have a minimum of 3 years of relevant experience and must be independent from the property owner and the installing contractor (third-party requirement).
Cost
The cost of the ASHRAE Level 3 audit is an eligible incidental cost under CEIP and can be included in the financed amount (subject to the 15% incidental cost cap on total capital cost).
7. Understanding the 10-Day Cure Period P2
After signing a CEIP agreement, all property owners have a mandatory 10-business-day rescission period (also referred to as the "cure period" or "cooling-off period"). During this period, you may cancel the agreement without penalty and without providing a reason.
Key Details
- The cure period begins on the day after the agreement is signed by all parties
- The period is measured in business days (excludes weekends and statutory holidays)
- To cancel, submit a written notice to DRC before the end of the 10th business day
- No penalty, fee, or cost will be assessed for cancellation during the cure period
- Any application fees paid will be refunded in full
- The cure period is configured per municipality and may not be shortened below 10 business days
Phase 3 -- Your Agreement
8. Clean Energy Improvement Agreement P3
The following is an outline of the CEIP Agreement template. This agreement is a three-party contract between the Property Owner, the Qualified Contractor, and Deep Retrofit Capital Inc. (as Program Administrator).
Agreement Structure
- Parties: Property Owner(s), Qualified Contractor (Primary), Deep Retrofit Capital Inc.
- Preamble: Recitals establishing CEIP authority, municipal bylaw reference, DRC designation
- Article 1 -- Buyer's Right to Cancel: 10-business-day rescission period, notice requirements, refund terms
- Article 2 -- Definitions: All defined terms per CEIP Regulation and DRC program terms
- Article 3 -- Project Scope (Schedule A): Detailed description of eligible improvements, specifications, timeline, contractor obligations
- Article 4 -- Payment Terms (Schedule B): Capital cost breakdown, professional services, incidental costs, annual payment calculation, payment schedule
- Article 5 -- Warranties: Contractor workmanship warranty, equipment manufacturer warranties, DRC program warranties
- Article 6 -- Insurance: Contractor insurance requirements, property owner insurance obligations, DRC program insurance
- Article 7 -- Dispute Resolution: Four-tier escalation framework (Program Liaison, Concerns Officer, Resolution Committee, Minister)
- Article 8 -- Title Registration: Consent to register agreement on property title, obligations upon sale
- Article 9 -- Monitoring and Reporting: Property owner cooperation requirements, data collection consent, ASHRAE Level 2 post-completion audit
- Article 10 -- General Provisions: Force majeure, severability, entire agreement, amendments, governing law (Alberta)
Schedules
- Schedule A: Project Scope and Specifications -- detailed improvement descriptions, quantities, models, installation requirements
- Schedule B: Financial Terms -- cost breakdown, payment calculation, interest rate, term, annual payment amount
- Schedule C: Contractor Information -- qualification credentials, insurance certificates, WCB clearance
- Schedule D: Monitoring Plan -- metrics to be tracked, reporting frequency, data access provisions
9. Understanding Your Costs P3
Annual Payment Formula
Annual Payment = (A + B + C) / D
- A = Capital cost of the clean energy improvement
- B = Total cost of professional services (engineering, architecture, project management)
- C = Total incidental costs (maximum 15% of total capital cost) -- includes audit costs, permit fees, inspection costs
- D = Probable lifetime in years of the improvement
Worked Example: Two Improvements
Consider a commercial property with two eligible improvements:
| Item | Improvement 1: HVAC | Improvement 2: LED Lighting |
|---|---|---|
| Capital Cost (A) | $460,000 | $200,000 |
| Professional Services (B) | $46,000 | $15,000 |
| Incidental Costs (C) | $40,250 | $20,000 |
| Probable Lifetime (D) | 25 years | 10 years |
| Annual Payment | $21,850 | $23,500 |
Total annual payment: $21,850 + $23,500 = $45,350 per year
Total project cost: $460,000 + $200,000 + $46,000 + $15,000 + $40,250 + $20,000 = $781,250
Note: When multiple improvements have different lifetimes, each is calculated independently. The longer-lived improvement continues to appear on tax bills after the shorter-lived improvement is fully paid.
10. Land Title Registration Explained P3
As a condition of the CEIP agreement, the following documents are registered on your property title:
- The Clean Energy Improvement Agreement itself
- The monitoring plan (metrics, duration, reporting requirements)
- Tax documentation related to the energy improvement assessment
Why Is This Required?
Land title registration serves multiple purposes: it provides transparency to future buyers, ensures business continuity if DRC or the municipality changes, creates a permanent record of the obligation, and supports the property-assessed financing model by connecting the financial obligation to the property rather than the owner.
Impact on Property Sale
When you sell a property with a registered CEIP agreement, the buyer assumes the remaining payments. You are required to disclose the CEIP agreement to the buyer before the sale closes. Land title registration ensures that any title search conducted during a real estate transaction will reveal the CEIP obligation.
Phase 4 -- During Installation
11. What to Expect During Installation P4
Once your CEIP agreement is executed and the municipality has processed authorization, installation of your eligible improvements begins.
Timeline
Your Qualified Contractor will provide a detailed installation schedule as part of the Project Agreement. For commercial and industrial projects, a professional engineer or architect provides oversight throughout installation. DRC tracks progress through the platform and provides regular updates.
Your Responsibilities
- Provide reasonable access to the property for installation work
- Maintain property insurance throughout the installation period
- Report any concerns or issues promptly to DRC via the platform or the escalation process
- Do not authorize changes to scope without DRC approval (changes may affect financing terms)
How to Report Issues
If you encounter any problems during installation, contact DRC through the platform or use the four-tier issue escalation framework. Tier 1 (DRC Program Liaison) responds within 1 business day.
12. Completion Acceptance Guide P4
Before formally accepting the completed installation, review the following items carefully:
- All improvements specified in Schedule A of your agreement have been installed
- Professional engineer or architect sign-off has been obtained (commercial/industrial projects)
- Commissioning reports demonstrate systems are operating as specified
- Any deficiencies identified during inspection have been documented and a remediation plan is in place
- As-built documentation matches the approved project scope
- Equipment specification sheets and warranty documentation have been provided
- All permits have been closed out and final inspections passed
DRC will validate the completion documentation before releasing the balance payment to the contractor. You will receive a formal completion notice once DRC has verified all requirements are met.
Phase 5 -- After Completion
13. Performance Monitoring Guide P5
After your improvements are installed, DRC monitors their performance over the lifetime of each improvement (7 to 60 years depending on improvement type).
What Is Monitored
| Metric | Unit | Purpose |
|---|---|---|
| Electricity savings | kWh | Reduction in electrical energy consumption vs. pre-project baseline |
| Natural gas savings | GJ | Reduction in natural gas consumption vs. pre-project baseline |
| GHG reductions | tCO2e | Tonnes of CO2 equivalent avoided annually and cumulatively |
| Water savings | m3 | Reduction in water consumption where applicable |
| Financial savings | CAD | Actual energy cost savings vs. projected savings |
ASHRAE Level 2 Post-Completion Audit
One year after project completion, an ASHRAE Level 2 energy audit is conducted to compare actual performance against the projections in the original Level 3 audit. This audit verifies that the improvements are delivering the expected energy savings and identifies any adjustments needed. The cost of this audit is included in the original project financing.
14. Property Sale Disclosure Requirements P5
If you sell a property with an active CEIP agreement, you have the following obligations:
- Disclose the existence and terms of the CEIP agreement to all prospective buyers
- Append the CEIP agreement disclosure to any contract of sale or purchase agreement
- Notify your real estate agent of the CEIP agreement so they can fulfill their own disclosure obligations
- The remaining annual payments and total obligation must be clearly communicated
Land title registration ensures that any title search will reveal the CEIP agreement, providing an additional layer of transparency. The buyer assumes all remaining payment obligations upon transfer of title.
Getting Started
1. Registration Guide P1
Contractors who wish to participate in CEIP projects administered by Deep Retrofit Capital must complete a registration and qualification process before they may bid on or perform any work.
Step-by-Step Registration
- Submit Application: Complete the DRC Qualified Contractor Application Form through the DRC portal, including company details, key personnel, areas of service, and property types served.
- Provide Credentials: Upload current copies of all required documentation: APEGA or AAA licence, jurisdiction-specific licences, $5M general liability insurance certificate, $2M errors and omissions insurance certificate, current WCB clearance letter, and business registration.
- Complete Training: All key personnel must complete the mandatory 3-hour DRC CEIP video training module covering program regulations, quality standards, reporting requirements, and the Code of Conduct.
- Sign Agreements: Execute the DRC Qualified Contractor Terms and Conditions and the Code of Conduct.
- Receive Confirmation: Upon successful review and approval, DRC will issue a Registration Confirmation and add your company to the Qualified Contractor Directory. You may then be selected for CEIP projects.
Registration review typically takes 5-10 business days. DRC may request additional information or clarification during the review process.
2. Qualification Requirements P1
All contractors must meet and maintain the following requirements throughout their participation in the DRC CEIP program:
| Requirement | Details | Verification |
|---|---|---|
| Professional Licence | APEGA (Association of Professional Engineers and Geoscientists of Alberta) or AAA (Alberta Association of Architects) licence | Verified at registration and annually |
| Jurisdiction Licences | Valid business licence in all municipal jurisdictions where work will be performed | Verified per project |
| Training | 3-hour DRC CEIP video training module completed by all key personnel | Certificate issued upon completion |
| General Liability Insurance | Minimum $5,000,000 general liability insurance | Certificate required at registration and annually |
| Errors & Omissions Insurance | Minimum $2,000,000 errors and omissions (professional liability) insurance | Certificate required at registration and annually |
| WCB Coverage | Current Workers' Compensation Board coverage for all personnel | Clearance letter required at registration and per project |
| Code of Conduct | Signed adherence to the DRC Qualified Contractor Code of Conduct | Signed at registration |
Policies & Standards
3. DRC Qualified Contractor Code of Conduct All Phases
Section 1: Definitions
For the purposes of this Code of Conduct, the following definitions apply:
- "Deep Retrofit Capital" or "DRC" means Deep Retrofit Capital Inc., the ministerially-designated Program Administrator for CEIP in Alberta.
- "CEIP" means the Clean Energy Improvement Program as established under the Municipal Government Act and Alta Reg 212/2018.
- "Qualified Contractor" means a contractor who has been approved by DRC and listed in the Contractor Directory.
- "Primary Qualified Contractor" means the contractor designated as the lead on a specific CEIP project.
- "Project Agreement" means the three-party agreement between the Property Owner, Qualified Contractor, and DRC for a specific CEIP project.
- "Eligible Improvement" means an improvement that meets the criteria established in the CEIP Regulation and the DRC Eligible Improvements List.
- "Property Owner" means the registered owner(s) of a property participating in CEIP.
- "Municipality" means an Alberta municipality that has passed a CEIP bylaw.
- "ASHRAE" means the American Society of Heating, Refrigerating and Air-Conditioning Engineers, whose standards govern energy audit requirements.
- "Subcontractor" means any person or company engaged by the Qualified Contractor to perform any portion of the work under a Project Agreement.
- "Supporting Documentation" means all documents required by DRC to verify qualification, project progress, and completion.
- "Substantial Performance" means the stage at which the work is ready for use as intended, subject only to minor deficiencies.
- "Upgrade Completion Form" means the DRC form certifying that all improvements have been installed and commissioned.
- "Contractor Directory" means the DRC-maintained registry of all currently qualified contractors.
- "Energy Audit Report" means the ASHRAE Level 2 or Level 3 report prepared by a qualified auditor.
- "ECM" means Energy Conservation Measure, a specific improvement designed to reduce energy consumption.
- "Incidental Cost" means costs associated with but not directly part of the improvement, limited to 15% of total capital cost.
- "Administration Fee" means the fee charged by DRC for program administration, limited to 5% of total capital cost.
- "Installation Authorization Notice" means the written authorization from DRC permitting the contractor to commence installation.
- "FOIP Act" means the Freedom of Information and Protection of Privacy Act (RSA 2000, c.F-25).
- "WCB" means the Workers' Compensation Board of Alberta.
- "APEGA" means the Association of Professional Engineers and Geoscientists of Alberta.
- "AAA" means the Alberta Association of Architects.
- "P.Eng" means Professional Engineer registered with APEGA.
- "CET" means Certified Engineering Technologist.
- "CEM" means Certified Energy Manager.
- "CSA" means the Canadian Standards Association.
- "ULC" means Underwriters Laboratories of Canada.
- "ETL" means Intertek Testing Services, a recognized product safety certification body.
- "Business Day" means any day other than a Saturday, Sunday, or statutory holiday in Alberta.
Section 2: Background
Deep Retrofit Capital Inc. has been designated as a Program Administrator for the Clean Energy Improvement Program (CEIP) by Ministerial Order 16/2025, signed October 23, 2025, under the authority of the Emissions Management and Climate Resilience Act and the Municipal Government Act.
DRC administers CEIP for all property types (residential, commercial, farm, and non-designated industrial) across all Alberta jurisdictions. The program enables property owners to finance energy efficiency and renewable energy improvements through their municipality, with repayment via property tax assessment.
Qualified Contractors are essential partners in delivering CEIP projects. They must meet rigorous qualification standards, adhere to professional codes of conduct, and maintain compliance with all applicable regulations throughout their participation in the program.
This Code of Conduct establishes the standards and expectations for all contractors participating in the DRC CEIP program. It is a condition of registration and continued participation in the Contractor Directory.
Section 3: Code of Conduct
3.1 Conduct
All Qualified Contractors shall:
- Maintain good standing with all applicable professional and regulatory bodies (APEGA, AAA, municipal licensing authorities, WCB)
- Adhere to all construction safety codes and standards applicable in Alberta
- Maintain all required licences and permits for the jurisdictions in which they operate
- Meet or exceed quality standards specified in project agreements and ASHRAE guidelines
- Provide accurate, complete, and honest quotes that clearly isolate CEIP-eligible costs
- Complete all work in a timely manner consistent with project timelines and milestones
- Conduct themselves professionally in all interactions with property owners, DRC, municipalities, and other stakeholders
- Not misrepresent their qualifications, experience, capabilities, or the expected performance of improvements
- Honour all warranty obligations for workmanship and installation quality
- Indemnify property owners and DRC against losses arising from contractor negligence or non-compliance
- Maintain all required insurance coverage at or above specified minimums throughout their participation
- Communicate any material changes to their business, qualifications, or insurance status to DRC promptly
- Follow ASHRAE standards for energy assessment, installation quality, and performance verification
- Cooperate fully with DRC in program administration, auditing, monitoring, and reporting activities
- Comply with any additional requirements imposed by specific municipalities
3.2 Obligations
Qualified Contractors are specifically obligated to:
- Complete all services as specified in the Project Agreement, to the quality standards therein
- Provide all supporting documentation required by DRC, including progress reports, commissioning reports, as-built documentation, specification sheets, photographs, and invoices
- Provide workmanship warranty for a minimum period as specified in the Project Agreement
- Maintain all required insurance (general liability, errors and omissions, and any project-specific coverage) throughout the project and warranty period
- Ensure current WCB coverage for all personnel (employees and subcontractors) working on CEIP projects
- Cooperate with DRC in all aspects of program delivery, including responding to information requests within specified timelines
3.3 Conflict of Interest
Qualified Contractors must disclose any actual, potential, or perceived conflicts of interest that may arise in connection with their participation in the CEIP program. This includes, but is not limited to: financial interests in property being improved, relationships with property owners or their agents, relationships with energy auditors conducting assessments on properties where the contractor will perform work, and any other circumstance that could reasonably be perceived as affecting the contractor's objectivity or independence.
3.4 FOIP and Confidential Information
Qualified Contractors must comply with the Freedom of Information and Protection of Privacy Act (FOIP Act) and DRC's Data Collection, Use, and Privacy Policy (DRCP-PADM-0002) in all aspects of their participation. Contractors must not disclose personal information of property owners, project details, or program information to any third party without the express written consent of DRC and the affected property owner. All data collected during CEIP projects remains the property of DRC and the property owner.
Section 4: Issue Escalation Framework
4.1 Issue Identification
Issues related to contractor conduct or performance are addressed through a graduated response framework:
- Verbal Warning: For minor first-time issues. Documented in contractor file. No formal consequence.
- Written Warning: For repeated minor issues or first-time moderate issues. Formal letter with required corrective action and timeline.
- Notice of Non-Compliance: For serious issues or failure to address warnings. Formal notice with specific requirements, timeline, and consequences of continued non-compliance.
4.2 Issue Escalation
Unresolved issues follow the DRC four-tier escalation framework:
- Tier 1 -- DRC Program Liaison: Initial contact point. Response within 1 business day. Handles routine inquiries, minor complaints, scheduling issues.
- Tier 2 -- DRC Concerns Officer: Assigned for issues requiring investigation. Severity assessment within 2-10 business days. Handles moderate complaints, performance issues, disputes between parties.
- Tier 3 -- DRC Resolution Committee: Senior management and legal review. For serious complaints, patterns of non-compliance, significant financial disputes. Committee includes senior management, legal counsel, and relevant subject matter experts.
- Tier 4 -- Minister's Office: Escalation to the Government of Alberta. Reserved for issues involving significant community concern, serious legal implications, or matters that cannot be resolved through the DRC framework.
4.3 Suspension
DRC may suspend a Qualified Contractor from the Contractor Directory under the following conditions:
- Failure to maintain required insurance, licences, or WCB coverage
- Failure to address issues identified in written warnings or notices of non-compliance
- Serious breach of the Code of Conduct
- Pending investigation of a significant complaint
During suspension, the contractor may not bid on or commence new CEIP projects. Existing projects may continue under DRC supervision. Reinstatement requires demonstration that all conditions of suspension have been met.
4.4 Removal
DRC may permanently remove a Qualified Contractor from the Contractor Directory for:
- Repeated or severe breaches of the Code of Conduct
- Fraud, misrepresentation, or criminal activity
- Failure to complete projects to required standards despite corrective action
- Loss of required professional licences
- Consistent failure to meet performance standards (OTIF, EIA, or satisfaction KPIs)
Removed contractors have a 30-day appeal period. Removal is effective immediately upon notice, with appeal heard by the Resolution Committee. If removal is upheld, the contractor is barred from the DRC CEIP program and existing projects are transitioned to alternative qualified contractors.
4. DRC Marketing Guidelines All Phases
Marketing Guidelines -- Full Document
Overview: Representing the Public Trust
As participants in a government-designated program, Qualified Contractors bear a responsibility to represent CEIP accurately and professionally. All marketing and communications must reflect the public trust nature of the program and comply with applicable consumer protection legislation.
Messaging Requirements
All marketing materials must:
- Accurately describe CEIP as a property-assessed financing program administered by Deep Retrofit Capital
- Clearly state that repayment is via property tax assessment and runs with the property
- Include the DRC program administrator designation where the CEIP program is referenced
- Use approved terminology and avoid jargon that could confuse consumers
Prohibited Practices
Qualified Contractors are strictly prohibited from:
- Making misleading claims about energy savings, financial returns, or payback periods that are not supported by a qualified energy audit
- Using language such as "pays for itself," "free upgrades," "no cost to you," or similar phrases that misrepresent the financial nature of CEIP
- Providing tax advice or making representations about the tax implications of CEIP financing
- Falsely claiming endorsement by the Government of Alberta, any municipality, or DRC beyond what is factually accurate
- Using municipal logos, seals, or official branding without express written authorization from the municipality
- Implying exclusivity as the only contractor eligible for CEIP work in any jurisdiction
- Making unsolicited door-to-door sales visits representing themselves as acting on behalf of DRC or a municipality
- Using high-pressure sales tactics or creating artificial urgency
- Disparaging other Qualified Contractors, DRC, municipalities, or the CEIP program
- Collecting personal information from prospective clients beyond what is necessary for an initial consultation
Logo Usage
Qualified Contractors may use the "DRC Qualified Contractor" badge in their marketing materials subject to the following: the badge must be displayed at its original proportions, not modified or altered, used only during active registration, and removed within 5 business days of any suspension or removal. The DRC primary logo may not be used by contractors without express written permission.
Third-Party Agencies and Subcontractors
Qualified Contractors are responsible for ensuring that any marketing agencies, subcontractors, or third parties acting on their behalf comply with these Marketing Guidelines. Violations by third parties will be attributed to the Qualified Contractor.
Advertising Materials by Channel
- Website: Must include accurate program description, DRC designation reference, and link to official DRC website
- Print Materials: Must include the DRC Qualified Contractor badge and accurate program description
- Email: Must comply with CASL (Canada's Anti-Spam Legislation), include unsubscribe mechanism, and not misrepresent sender identity
- Canvassing: Must carry visible DRC Qualified Contractor identification, not imply municipal or government endorsement beyond factual designation
- Events: Must accurately represent their role as a Qualified Contractor, not as a representative of DRC or the government
- Press/Media: Must coordinate with DRC communications before issuing press releases or media statements about CEIP
- Social Media: Must follow all guidelines above, must not create accounts that could be confused with official DRC or municipal accounts
- Telemarketing: Must comply with CRTC Telemarketing Rules and the National Do Not Call List, must identify themselves as a Qualified Contractor (not as DRC or a municipality)
Violation Consequences
Violations of these Marketing Guidelines will be addressed through the issue escalation framework (Section 4 of the Code of Conduct). Repeated or serious violations may result in suspension or removal from the Contractor Directory. DRC reserves the right to require immediate removal of non-compliant marketing materials.
5. DRC Qualified Contractor Terms and Conditions All Phases
Terms and Conditions -- Full Document
1. Application for Inclusion in Contractor Directory
By submitting an application, the contractor requests inclusion in the DRC Qualified Contractor Directory and agrees to comply with all terms, conditions, policies, and procedures established by Deep Retrofit Capital Inc. Acceptance is at DRC's sole discretion. Inclusion in the Directory does not guarantee assignment to any projects.
2. Requirements
- Code of Conduct: Adherence to the DRC Qualified Contractor Code of Conduct is mandatory and continuous
- Insurance: Maintenance of $5M general liability and $2M errors and omissions insurance throughout participation, with DRC named as additional insured
- WCB: Current WCB coverage for all personnel, including subcontractors, working on CEIP projects
- Legal Compliance: Compliance with all applicable federal, provincial, and municipal laws, regulations, codes, and standards
- Project Agreement: Execution of a Project Agreement for each CEIP project before commencing work
- Electronic Devices: Contractors must have and maintain capability to use DRC's electronic project management platform for all project communication, documentation, and reporting
- Subcontractors: All subcontractors must meet the same insurance and WCB requirements. The Primary Qualified Contractor remains responsible for all subcontractor performance and compliance
3. Scope of Services
Scope varies by property type:
- Residential: Installation of eligible improvements per project agreement, coordination with homeowner, compliance with residential building codes, warranty provision
- Commercial: Installation under professional engineer/architect oversight, compliance with commercial building codes, commissioning and handover, comprehensive documentation
- Farm: Installation adapted for agricultural operations, seasonal scheduling considerations, compliance with applicable agricultural facility codes
4. Upgrade Requirements
All improvements must meet or exceed the specifications in the Project Agreement, comply with applicable CSA, ULC, and ETL standards, be installed according to manufacturer specifications, be commissioned and tested before acceptance, and be documented with as-built drawings and specification sheets.
5. Representations and Warranties
The Qualified Contractor represents and warrants that: all information provided in the application is true and complete; all work will be performed by qualified personnel; all materials and equipment will be new and of merchantable quality unless otherwise specified; all work will comply with applicable codes and standards; the contractor has the financial capacity and resources to complete assigned projects.
6. Liability and Indemnification
The Qualified Contractor shall indemnify and hold harmless DRC, participating municipalities, and property owners from any claims, damages, losses, or expenses arising from the contractor's negligence, breach of contract, or violation of any law or regulation in connection with CEIP work.
7. Misrepresentation and Compliance
Any material misrepresentation in the application, project documentation, or marketing materials constitutes grounds for immediate suspension and potential removal. The contractor consents to DRC auditing compliance with these Terms and Conditions at any time with reasonable notice.
8. Removal
DRC may remove a contractor from the Directory for cause as described in Section 4.4 of the Code of Conduct. The contractor has a 30-day appeal period following notice of removal. During the appeal, new project assignments are suspended but existing projects continue under DRC supervision.
9. Agreement Terms
These Terms and Conditions remain in effect for as long as the contractor is listed in the DRC Qualified Contractor Directory. They may be amended by DRC with 30 days written notice. Continued participation following notice constitutes acceptance of amendments. Either party may terminate participation with 30 days written notice, subject to completion of active project obligations.
Working on Projects
6. Quote Development Guide P2
When preparing quotes for CEIP projects, contractors must structure their pricing to clearly isolate CEIP-eligible costs from any non-eligible work the property owner may wish to include.
Quote Structure
- Capital Costs: Materials and equipment directly related to each eligible improvement, itemized per improvement category
- Labour Costs: Installation labour, broken down by improvement category and trade
- Professional Services: Engineering, architectural, and project management fees directly attributable to the CEIP project
- Incidental Costs: Audit fees, permit fees, inspection fees, and other incidental costs (total must not exceed 15% of total capital cost)
- Non-Eligible Work: Any work outside CEIP scope must be clearly separated and quoted independently
Administration fees (max 5% of total capital cost) are calculated and added by DRC and should not be included in the contractor's quote.
7. Project Agreement Template P3
The Project Agreement is a three-party contract between the Property Owner, the Primary Qualified Contractor, and Deep Retrofit Capital Inc. It governs the execution of the specific CEIP project.
Agreement Outline
- Parties: Property Owner(s), Primary Qualified Contractor, Deep Retrofit Capital Inc.
- Recitals: CEIP bylaw reference, DRC designation, property details, approved improvements
- Scope of Work: Detailed specifications per Schedule A of the CEIP Agreement
- Timeline: Commencement date, milestones, completion deadline
- Payment Terms: Deposit (upon authorization to proceed), balance (upon DRC-validated completion)
- Quality Standards: Reference to ASHRAE standards, CSA/ULC certification, manufacturer specifications
- Warranties: Workmanship warranty period, equipment warranty pass-through, warranty claim process
- Insurance: Required coverage during installation, coverage for property damage and worker injury
- Change Orders: Process for scope changes, DRC approval requirement, impact on financing terms
- Dispute Resolution: Four-tier escalation framework reference
- Termination: Conditions for termination, consequences, wind-down procedures
8. Completion Documentation Requirements P4
Upon completion of all CEIP improvements, the Qualified Contractor must submit the following documentation to DRC for validation before the balance payment is released:
- Commissioning Reports: System-by-system commissioning documentation demonstrating all improvements are installed and operating as specified
- As-Built Documentation: Updated drawings and specifications reflecting the actual installation, noting any deviations from the approved design
- Equipment Specification Sheets: Manufacturer data sheets for all major equipment and materials installed
- Engineer/Architect Sign-Off: Formal sign-off from the supervising professional (required for commercial and industrial projects)
- Photographs: Before, during, and after photographs of each improvement area, documenting the installation process and final result
- Invoices: Detailed invoices matching the approved quote structure, with CEIP-eligible and non-eligible costs clearly separated
- Warranty Documentation: Manufacturer warranty certificates and contractor workmanship warranty confirmation
- Upgrade Completion Form: Completed DRC form certifying all improvements per the Project Agreement are complete
- Permit Close-Out: Evidence that all required permits have been closed and final inspections passed
Performance & Compliance
9. Performance Standards P5
DRC monitors contractor performance using three key performance indicators. All Qualified Contractors are expected to meet or exceed these targets:
| KPI | Target | Measurement Method | Reporting Frequency |
|---|---|---|---|
| OTIF (On-Time In-Full) | >98% | Percentage of projects completed on or before the agreed completion date, with all specified improvements installed to specification | Per project, aggregated quarterly |
| EIA (Energy Improvement Achievement) | >95% | Percentage of predicted energy savings actually achieved, measured by ASHRAE Level 2 post-completion audit at 1 year | Per project, aggregated annually |
| Customer Satisfaction | >90% | Property owner satisfaction survey score (conducted by DRC post-completion) | Per project, aggregated quarterly |
Consequences of Non-Compliance
- Below target for 1 quarter: Written notification and performance improvement plan required
- Below target for 2 consecutive quarters: Formal review, potential reduction in project assignments
- Below target for 3 consecutive quarters: Suspension from new project assignments pending Resolution Committee review
- Persistent non-compliance: Removal from Contractor Directory per Section 4.4 of the Code of Conduct
10. Issue Escalation Flowchart All Phases
The DRC Issue Resolution and Escalation framework provides a structured, four-tier process for addressing complaints, disputes, and performance issues.
Routine inquiries, minor complaints, scheduling issues, information requests
Moderate complaints, performance issues, disputes between parties, severity assessment
Serious complaints, patterns of non-compliance, significant financial disputes
Legal implications, matters unresolvable by DRC, public interest concerns
Getting Started
1. How to Adopt CEIP P1
Municipalities interested in offering CEIP to their constituents follow a five-step adoption process. DRC provides support and guidance throughout.
5-Step Adoption Process
- Build Business Case: Assess community interest and demand for clean energy improvements. Review the economic case for CEIP including projected property tax revenue, local job creation, and environmental benefits. DRC can provide market analysis and community engagement support.
- Source Capital: DRC operates a 100% private-capital model. The municipality does not need to allocate public funds. DRC works with capital investors to ensure funding availability for the municipality's projected program volume.
- Draft and Pass Bylaw: Using the DRC Model CEIP Bylaw template (see below), draft a bylaw specific to the municipality. The bylaw must be reviewed by municipal legal counsel and passed by council. The bylaw establishes the legal authority for CEIP within the municipality.
- Design Program and Onboard Contractors: Working with DRC, configure program parameters including eligible improvements, interest rates, property type coverage, and fee structures. DRC will recruit and qualify contractors to serve the municipality.
- Launch and Market: Announce the program to constituents. DRC provides marketing materials, property owner guides, and ongoing program administration support.
2. Model CEIP Bylaw Template P1
Bylaw No. [____] -- Clean Energy Improvement Tax Bylaw
Section 1: Purpose and Authority
WHEREAS the Municipal Government Act (RSA 2000, c.M-26), Division 6.1, authorizes municipalities to pass bylaws establishing clean energy improvement programs; and
WHEREAS the Clean Energy Improvements Regulation (Alta Reg 212/2018, as amended by Alta Reg 153/2020) provides the regulatory framework for such programs; and
WHEREAS the Council of [Municipality Name] wishes to enable property owners within its jurisdiction to access financing for clean energy improvements through the CEIP framework;
NOW THEREFORE the Council of [Municipality Name] enacts as follows:
Section 2: Definitions
In this Bylaw:
- "CEIP" means the Clean Energy Improvement Program as established under the Municipal Government Act and Alta Reg 212/2018;
- "Clean Energy Improvement" means an improvement to a property that is intended to reduce energy consumption, greenhouse gas emissions, or water consumption, and is listed on the Eligible Improvements List;
- "Clean Energy Improvement Agreement" means the agreement between a property owner, a Qualified Contractor, and the Program Administrator for a specific CEIP project;
- "Eligible Improvements List" means the list of improvements eligible for CEIP financing, as published and maintained by the Program Administrator;
- "Program Administrator" means Deep Retrofit Capital Inc., designated by Ministerial Order 16/2025;
- "Property Owner" means the registered owner(s) of a property within [Municipality Name];
- "Qualified Contractor" means a contractor who has been approved by the Program Administrator and listed in the Contractor Directory.
Section 3: Program Administrator
The Council hereby designates Deep Retrofit Capital Inc. as the Program Administrator for CEIP within [Municipality Name], pursuant to Ministerial Order 16/2025 and in accordance with an Administration Agreement between [Municipality Name] and Deep Retrofit Capital Inc.
Section 4: Eligible Improvements
The improvements eligible for CEIP financing within [Municipality Name] shall be those published on the Eligible Improvements List maintained by the Program Administrator, subject to any modifications approved by Council.
Section 5: Property Types
This Bylaw applies to the following property types within [Municipality Name]:
- Residential properties (single-family, semi-detached, row houses, townhomes, multi-unit residential)
- Commercial (non-residential) properties
- Farm properties
- Non-designated industrial properties
Section 6: Application Process
Applications for CEIP financing shall be submitted to and processed by the Program Administrator in accordance with Section 7 of the Clean Energy Improvements Regulation.
Section 7: Clean Energy Improvement Agreements
Clean Energy Improvement Agreements shall be entered into in accordance with Section 10 of the Clean Energy Improvements Regulation and shall be registered on the property title.
Section 8: Tax Imposition
Pursuant to Section 390.4 of the Municipal Government Act, the Council may impose a clean energy improvement tax on properties that are subject to a Clean Energy Improvement Agreement. The tax shall be calculated in accordance with the payment terms specified in each Agreement.
Section 9: Administration Fee Division
The administration fee charged by the Program Administrator shall be divided between [Municipality Name] and the Program Administrator in accordance with the Administration Agreement and Section 6.2 of the Clean Energy Improvements Regulation.
Section 10: Coming into Force
This Bylaw comes into force on the date it is passed by Council.
Note: This template must be reviewed by municipal legal counsel before adoption. Specific provisions may need to be adapted to align with the municipality's existing bylaw framework, local circumstances, and legal requirements.
3. Administration Agreement Template P1
Administration Agreement -- [Municipality Name] and Deep Retrofit Capital Inc.
Recitals
WHEREAS [Municipality Name] (the "Municipality") has passed a Clean Energy Improvement Tax Bylaw (Bylaw No. [____]) establishing a CEIP within its jurisdiction; and
WHEREAS Deep Retrofit Capital Inc. ("DRC") has been designated as a Program Administrator for CEIP by Ministerial Order 16/2025; and
WHEREAS the parties wish to enter into an Administration Agreement to define their respective roles and responsibilities in delivering the CEIP program;
NOW THEREFORE the parties agree as follows:
1. Roles and Responsibilities
1.1 DRC Responsibilities
- Maintain the Eligible Improvements List and Qualified Contractor Directory
- Process CEIP applications and conduct eligibility reviews
- Structure financing terms and prepare CEIP Agreements
- Oversee installation by Qualified Contractors
- Validate completion and authorize balance payments
- Manage ongoing monitoring and performance reporting
- Register all required documents on the property title
- Manage the issue escalation framework
- Provide annual program reports
1.2 Municipal Responsibilities
- Confirm CEIP thresholds and interest rates for each agreement
- Register approved CEIP agreements on the municipal tax roll
- Process deposit and balance payments to Qualified Contractors
- Collect CEIP payments through property tax assessment
- Enforce tax collection in case of non-payment
2. Administration Fee Division
The administration fee (maximum 5% of total capital cost per project) shall be divided between DRC and the Municipality in accordance with Section 6.2 of the Clean Energy Improvements Regulation. The specific division shall be as follows: [to be negotiated per municipality].
3. Reporting Obligations
DRC shall provide the Municipality with: quarterly program activity summaries, an annual municipality-specific performance report, access to program KPI dashboards, and copies of all title registration confirmations for properties within the municipality.
4. Insurance Requirements
DRC shall maintain program-level insurance as specified in the DRC designation conditions and provide proof of insurance to the Municipality upon request. All Qualified Contractors are required to maintain insurance as specified in the Qualified Contractor Terms and Conditions.
5. Term and Termination
This Agreement shall have an initial term of [__] years, with automatic renewal for successive [__]-year terms unless either party provides [__] months written notice of non-renewal. Either party may terminate for cause with [__] days written notice. Termination does not affect existing CEIP Agreements, which continue in force.
6. Dispute Resolution
Disputes between DRC and the Municipality shall be resolved through good-faith negotiation, followed by mediation if necessary, before any party may pursue legal remedies.
Note: This template must be reviewed by both municipal and DRC legal counsel. Terms in brackets require negotiation between the parties.
Program Operations
4. Program Parameters Guide P2
Each municipality may configure certain program parameters within the bounds established by the CEIP Regulation. DRC works with each municipality to establish:
- Interest Rates: The interest rate applied to CEIP financing, typically aligned with municipal borrowing rates (historically 3-5%)
- Eligible Improvements List: The municipality may adopt the full DRC Eligible Improvements List or a subset tailored to local priorities
- Property Type Coverage: The municipality may enable CEIP for all property types or specific types (e.g., residential only, or commercial and farm)
- Fee Structures: Application fees are set by regulation ($100 residential, $200 farm, $500 commercial/industrial); administration fee division is negotiated in the Administration Agreement
- Thresholds: Maximum funding amounts are set by regulation ($50K residential, $300K farm, $1M commercial/industrial), but the municipality may set lower thresholds
- Cure Period: The 10-business-day rescission period is the regulatory minimum; municipalities may extend it
5. Processing Agreements P3
When DRC submits an approved CEIP agreement to the municipality, the following workflow applies:
- Receive DRC-Approved Agreement: DRC transmits the signed CEIP Agreement along with all supporting documentation
- Confirm Thresholds and Interest Rate: Verify the project amount is within the municipality's configured thresholds and the correct interest rate is applied
- Register on Tax Roll: Add the CEIP assessment to the property's tax account for the calculated annual payment amount
- Process Deposit Payment: Upon DRC's authorization to proceed, issue the deposit payment to the Qualified Contractor
- Process Balance Payment: Upon DRC's validation of project completion, issue the balance payment to the Qualified Contractor
6. Payment Processing Guide P4
Municipal payment processing follows a two-stage model:
| Stage | Trigger | Recipient | Amount |
|---|---|---|---|
| Deposit | DRC issues Authorization to Proceed | Qualified Contractor | Per Project Agreement (typically 30-50% of total) |
| Balance | DRC validates completion | Qualified Contractor | Remaining balance per Project Agreement |
| Ongoing Collection | Annual property tax cycle | Municipality retains | Annual CEIP payment as calculated in Agreement |
The municipality collects the CEIP payments through its normal property tax process. Non-payment is subject to the same enforcement mechanisms as regular property tax arrears.
Reporting
7. Annual Reporting Guide P5
DRC provides comprehensive reporting to each participating municipality as part of its program administration obligations. Reports are delivered according to the following schedule:
Report Types
| Report | Frequency | Content |
|---|---|---|
| Municipality-Specific Performance Report | Annual | Number of projects, total capital deployed, energy savings achieved, GHG reductions, contractor performance, financial summary for projects within the municipality |
| Program-Wide Annual Report | Annual (published by September 1) | Province-wide program performance, aggregate KPIs, market trends, policy recommendations. This report is published publicly per regulatory requirements. |
| KPI Dashboards | Continuous (real-time access) | Live dashboards showing project status, energy metrics, financial performance, and contractor KPIs for the municipality's projects |
| Title Registration Records | Per transaction | Confirmation of all title registrations for properties within the municipality, including agreements, monitoring plans, and completion documents |
Investment Overview
1. CEIP Investment Overview All Phases
CEIP investments are property-tax-backed clean energy investments offering stable, long-term returns secured by municipal tax assessment. Key characteristics:
- Security: Repayment is secured by the municipality's property tax authority -- the same mechanism used for sidewalks, sewers, and other local improvements
- Property-Attached: The obligation runs with the property, not the owner. If the property is sold, the new owner assumes the payments. This eliminates traditional borrower credit risk.
- Low Default Risk: Property tax non-payment rates in Alberta are historically below 1%. Municipalities have established enforcement mechanisms for tax collection.
- Long Duration: Improvement lifetimes range from 7 to 60 years, providing stable long-term cash flows
- Title Registration: All agreements are registered on property titles, providing transparency and ensuring continuity regardless of changes in property ownership, program administration, or municipal governance
- Environmental Impact: Investments directly fund measurable reductions in energy consumption, GHG emissions, and water usage across Alberta
- Audit-Verified Performance: DRC is the only CEIP administrator that requires both pre-project (ASHRAE Level 3) and post-project (ASHRAE Level 2) independent audits for commercial properties, building a verified performance dataset that systematically reduces portfolio risk over time
2. Investment Prospectus Template All Phases
Executive Summary
Alberta's clean energy retrofit market represents a significant investment opportunity. The province requires an estimated $60-80 billion in building energy improvements to meet its 2050 climate targets. With 29 municipalities having already passed CEIP bylaws and $95.6 million in CEIP financing deployed to date, the market infrastructure is established and growing.
Market Context
- Market Size: $60-80 billion needed for Alberta's 2050 climate targets
- Program Maturity: 29 municipalities with CEIP bylaws, including Calgary and Edmonton
- Track Record: $95.6 million in CEIP financing deployed across Alberta to date
- Property Types: DRC is authorized for all property types (residential, commercial, farm, non-designated industrial), expanding the addressable market
- Regulatory Stability: CEIP is established in provincial legislation (MGA) with regulation (Alta Reg 212/2018), providing strong legal foundation
DRC's Model
DRC operates a private-capital, technology-driven model serving all property types across all Alberta jurisdictions. Key differentiators:
- 100% private capital -- no dependency on public funding or government appropriations
- Technology platform enabling scalable program administration across multiple municipalities
- All property types (residential, commercial, farm, industrial) -- broader market access than competitors
- Real-time monitoring and reporting system providing transparency to all stakeholders
The DRC Audit Advantage: Lowest Risk, Highest Proof-of-Value
DRC's pre- and post-project audit requirements -- funded within the approved cost model as eligible incidental costs -- create a structural investment advantage that no other CEIP program administrator currently provides:
- Pre-Project Validation (ASHRAE Level 3): Every commercial/industrial project enters the portfolio with independently verified energy savings projections, cost estimates, and engineering feasibility. The regulation permits the administrator to define assessment scope (Reg 7.3); DRC has chosen the most rigorous standard available. This means investors fund projects with validated outcomes, not estimates.
- Post-Project Verification (ASHRAE Level 2, 1 year after completion): Every project is independently re-audited to confirm actual energy savings versus projections. This closes the loop: investors receive verified proof that improvements delivered the promised results, not just modelled projections.
- Proprietary Performance Dataset: Over time, DRC accumulates a growing, independently verified dataset of actual vs. projected energy outcomes -- segmented by improvement type, property type, geography, building age, climate zone, and contractor. This dataset becomes the industry's most reliable source for answering: which improvements work best, where, how, and when.
- Continuous De-Risking: As the dataset grows, DRC can refine underwriting criteria, identify highest-performing improvement combinations, and adjust eligibility requirements -- systematically reducing portfolio risk with each project cohort.
- Government and Municipal Interest: This evidence-based, performance-verified approach directly addresses the oversight gap identified in the government's due diligence review. Municipalities and the province gain access to independently audited program outcomes that the existing quasi-agency model (Alberta Municipalities/AMSC) does not provide at this level of rigour. DRC's reporting thus becomes a competitive advantage for municipal adoption -- councils can demonstrate to constituents that their CEIP program delivers verified, measurable results.
In summary: DRC's audit framework transforms CEIP from a financing program into a verified performance program. The cost of the audits is built into the approved cost model (incidental costs under Reg 10.4.g). The value they generate -- lowest risk, highest transparency, best data -- accrues to every stakeholder: investors get verified returns, municipalities get proven outcomes, property owners get validated savings, and the Government of Alberta gets auditable program performance reporting.
Deal Structure
The DRC capital model follows a mortgage-sector parallel:
- Origination: DRC originates CEIP projects through its program administration activities
- Aggregation: Completed projects are aggregated into bond pools based on risk profile, geography, and improvement type
- Secondary Market: Bond pools are offered to institutional investors, freeing DRC's capital for new project origination
- Servicing: DRC continues to service all projects (monitoring, reporting, escalation) throughout their lifetime
Security Structure
- Property Tax Assessment: Repayment via the same mechanism as sidewalks, sewers, and other local infrastructure improvements
- Title Registration: All agreements registered on property title, providing senior lien position
- Municipal Enforcement: Municipalities enforce collection through established tax enforcement processes
Risk Analysis
| Risk Category | Assessment | Mitigation |
|---|---|---|
| Default Risk | Low | Property tax non-payment historically <1% in Alberta; municipal enforcement authority; obligation runs with property |
| Regulatory Risk | Low | Established in provincial legislation (MGA); ministerial designation framework; bipartisan policy support |
| Operational Risk | Moderate | DRC business continuity provisions: 3-month financial reserve, 12-month operational support commitment, platform transferability, performance bonds |
| Market Risk | Low | Growing demand driven by climate policy, energy costs, and building performance requirements |
| Concentration Risk | Moderate | Diversification across 29+ municipalities, 4 property types, 8 improvement categories |
| Performance Risk | Low | Pre-project ASHRAE L3 audit validates projected savings before funding; post-project ASHRAE L2 audit (1yr) verifies actual delivery; growing dataset enables continuous underwriting refinement |
Performance Bonds
DRC maintains performance bonds of approximately $100,000 per $100 million in aggregated projects. These bonds ensure long-term monitoring capability and program continuity regardless of changes in DRC's business circumstances.
Expected Returns
- Based on municipal interest rates (typically 3-5%)
- Project aggregation efficiencies improve returns at scale
- Long-term stable cash flows (7-60 year improvement lifetimes)
- Low servicing costs due to technology-driven platform
- Environmental, Social, and Governance (ESG) alignment for impact investors
Monitoring, Reporting, and Performance Intelligence
- Real-time monitoring system tracking energy savings, GHG reductions, and financial performance
- Annual program reports published publicly by September 1 each year
- Portfolio-level KPI dashboards available to investors
- Individual project performance data available upon request
- Post-project ASHRAE Level 2 audits provide independently verified actual-vs-projected performance data for every commercial/industrial project in the portfolio
- Cumulative performance dataset enables evidence-based insights: which improvement types deliver strongest verified returns by property type, geography, building vintage, and climate zone
Transferability
The DRC platform is designed for transfer to an alternative program administrator if required. All agreements are registered on property titles, ensuring continuity regardless of administrator changes. This transferability is a condition of DRC's ministerial designation and a key element of investor protection.
3. Due Diligence Package All Phases
The DRC Due Diligence Package provides comprehensive information for investor evaluation:
Regulatory Framework
- Municipal Government Act, Division 6.1 -- enabling legislation
- Alta Reg 212/2018 -- CEIP regulation
- Alta Reg 153/2020 -- CEIP amendment regulation
- Ministerial Order 16/2025 -- DRC designation
DRC Governance
- Advisory Board (industry, government, and independent representation)
- Four-tier issue escalation framework (Program Liaison through Minister's Office)
- Eight governance policies covering all aspects of program administration
Financial Management
- Financial Management Policy (DRCP-FINMGT-0001) -- GAAP compliance, internal controls, audit readiness
- Designated Financial Officer with fiduciary responsibility
- Monthly financial reviews and quarterly board reporting
- Annual independent audit
Business Continuity
- 3-month financial reserve maintained at all times
- 12-month operational support commitment if DRC ceases operations
- Platform designed for transfer to alternative administrator
- All agreements registered on property titles for continuity
- Transition plan and training manual maintained at all times
- Performance bonds (~$100K per $100M aggregation)
4. Ongoing Reporting Format P5
Investors receive the following ongoing reporting:
| Report | Frequency | Content |
|---|---|---|
| Portfolio Dashboard | Real-time | Active projects, total capital deployed, aggregate energy savings, GHG reductions, payment status, default rates |
| Bond Performance Report | Quarterly | Pool-level performance metrics, cash flow analysis, prepayment tracking, delinquency rates |
| Annual Program Report | Annual (by September 1) | Full program performance, market analysis, forward projections, regulatory updates |
| Environmental Impact Report | Annual | Total energy savings (kWh, GJ), GHG reductions (tCO2e), water savings (m3), per-project performance vs. projections |
DRC Governance Policies
Deep Retrofit Capital maintains eight governance policies covering all aspects of CEIP program administration. Each policy is reviewed on the schedule indicated and updated as required to maintain compliance with evolving regulations and best practices.
DRCP-PADM-0001: Program Administrator Designation
Purpose
To establish and maintain the standards, procedures, and obligations associated with DRC's designation as a CEIP Program Administrator under Ministerial Order 16/2025.
Scope
This policy applies to all activities undertaken by DRC in its capacity as Program Administrator, including interactions with the Government of Alberta, municipalities, property owners, qualified contractors, and capital investors.
Must-Have Elements
- Legal Compliance: Continuous compliance with the Municipal Government Act, Clean Energy Improvements Regulation, and all conditions of Ministerial Order 16/2025
- Designation Criteria: Maintenance of all criteria that formed the basis of the ministerial designation, including organizational capacity, financial stability, technical capability, and governance standards
- Role Fulfillment: Full execution of all program administration responsibilities: application processing, contractor qualification, agreement management, installation oversight, monitoring, and reporting
- Stakeholder Relations: Maintenance of productive working relationships with all stakeholder groups: Government of Alberta, municipalities, property owners, contractors, and investors
Should-Have Elements
- Regulatory Updates: Proactive monitoring of regulatory changes and timely adaptation of program operations
- Advocacy: Constructive engagement with government on policy development and program improvement
- Best Practices: Adoption of best practices from other PACE (Property Assessed Clean Energy) programs nationally and internationally
Designation Procedures
DRC maintains documented procedures for: initial designation application and approval, ongoing compliance demonstration, annual reporting to the Government of Alberta, responding to government inquiries and audits, and managing designation renewal or modification processes.
Compliance Monitoring
DRC conducts internal compliance reviews quarterly to ensure all designation conditions are being met. Results are reported to senior leadership and documented in the compliance register.
Documentation
All designation-related documents, correspondence, and compliance records are maintained in the DRC document management system with appropriate access controls and retention schedules.
Policy Review
This policy is reviewed bi-annually or upon any change to the regulatory framework or designation conditions.
DRCP-MORPT-0001: Monitoring and Reporting
Purpose
To establish comprehensive standards for monitoring the performance of CEIP projects and reporting results to stakeholders, ensuring transparency, accountability, and continuous improvement.
Scope
This policy applies to all monitoring and reporting activities related to CEIP projects administered by DRC, from installation verification through the full lifetime of each improvement.
Must-Have Elements
- Data Collection Standards: Standardized data collection methodologies for energy consumption (kWh, GJ), GHG emissions (tCO2e), water usage, and financial performance
- Regular Reporting: Annual program reports published by September 1, municipality-specific reports, and investor portfolio reports
- Transparency: Public disclosure of aggregate program performance data
- KPIs: Contractor performance tracking (OTIF >98%, EIA >95%, Satisfaction >90%) and program-level performance metrics
- Audit Compliance: ASHRAE Level 2 post-completion audits conducted 1 year after project completion for all projects
Should-Have Elements
- Advanced Analytics: Predictive analytics for energy savings projection, portfolio risk assessment, and program optimization
- Stakeholder Feedback: Systematic collection and analysis of feedback from all stakeholder groups
- Sustainability Impact Reporting: Comprehensive environmental impact reporting aligned with recognized frameworks (GRI, TCFD)
Monitoring Procedures
- Installation Verification: DRC verifies completion of all improvements per the Project Agreement before authorizing balance payment
- Ongoing Performance Tracking: Continuous monitoring of energy savings, GHG reductions, and financial performance against pre-project ASHRAE Level 3 baselines
- Issue Identification: Monitoring data is analyzed for performance deviations, triggering investigation and corrective action when improvements underperform projections
Reporting Procedures
- Regular Intervals: Quarterly activity summaries, annual comprehensive reports, and real-time dashboard access
- Public Disclosure: Annual program report published publicly by September 1 per regulatory requirements
- Custom Reports: Municipality-specific and investor-specific reports generated per agreement terms
Documentation
- Record Management: All monitoring data retained for the lifetime of each improvement plus 7 years
- Data Security: Monitoring data protected in accordance with DRCP-PADM-0002 (Data Collection, Use, and Privacy)
- Access to Data: Property owners may request copies of their project monitoring data at any time
Policy Review
This policy is reviewed annually or upon any material change to monitoring methodology or reporting requirements.
DRCP-AVBRD-0001: Advisory Board Composition
Purpose
To establish the composition, roles, and engagement structure of the DRC Advisory Board, providing expert guidance on program strategy, risk management, and policy development.
Scope
This policy applies to all Advisory Board members and governs the Advisory Board's structure and activities.
Board Composition
- Agile Size: The Advisory Board is sized to be responsive and effective, typically 7-15 members
- Industry Representation: Representatives from energy, construction, engineering, real estate, and finance sectors
- Government Representation: Representatives from provincial and/or municipal government (in advisory capacity)
- Independent Advisors: Subject matter experts in areas such as climate policy, building science, and capital markets
Roles
- Strategic Advice: Providing input on program strategy, market development, and stakeholder engagement
- Risk Assessment: Identifying emerging risks and opportunities from an industry perspective
- Policy Suggestions: Recommending policy improvements based on sector expertise and stakeholder feedback
Engagement Structure
- Chairperson: Appointed by senior leadership from among Advisory Board members
- Subcommittees: Formed as needed for specific topics (e.g., technology, market development, regulatory affairs)
- Term of Service: Advisory Board members serve 2-year terms, renewable by mutual agreement
- Meeting Frequency: Quarterly meetings, with additional sessions as needed for specific initiatives
Selection Criteria
Advisory Board members are selected based on: demonstrated expertise in a relevant field, reputation for integrity and independent thinking, willingness to contribute time and expertise, and absence of conflicts of interest.
Engagement Process
Candidates are identified by management, reviewed by the Nomination Committee, and appointed by leadership resolution. Advisory Board members serve in a voluntary, non-compensated capacity (travel and reasonable expenses may be reimbursed).
Interactions with Management
The Advisory Board reports to and advises DRC senior leadership. Management engages the Advisory Board on specific topics as directed by senior leadership. Advisory Board recommendations are non-binding but are formally considered and documented.
Policy Review
This policy is reviewed annually.
DRCP-PADM-0002: Data Collection, Use, and Privacy
Purpose
To establish standards for the collection, use, disclosure, and protection of personal and program data in compliance with the Freedom of Information and Protection of Privacy Act (FOIP Act, RSA 2000, c.F-25) and applicable privacy legislation.
Scope
This policy applies to all data collected, used, stored, or disclosed by DRC in connection with CEIP program administration, including data relating to property owners, contractors, municipal partners, and investors.
Data Collection and Use
- Participant Consent: DRC collects personal information only with the informed consent of the individual, for purposes directly related to CEIP program administration
- Information Verification: Personal information is verified for accuracy at the point of collection and updated as necessary throughout the program lifecycle
- Data Handling: All personal information is handled in accordance with the FOIP Act, stored securely, and accessible only to authorized personnel with a legitimate program need
- Public Disclosure Authorization: Property owners authorize DRC to disclose non-personal project information (e.g., aggregate energy savings, improvement types) in program reports and public disclosures
- Non-Identifiable Data Sharing: DRC may share aggregate, non-identifiable data for research, policy development, and program improvement purposes
- Information Sharing for Program Purposes: DRC shares information with municipalities, contractors, and other program participants as required for program delivery, with appropriate controls and in accordance with participant consent
- Communication Consent: Participants consent to receive program-related communications from DRC, with the ability to opt out of non-essential communications
- Audit Data Consents: Property owners consent to DRC accessing energy audit data for monitoring and reporting purposes throughout the improvement lifetime
FOIP Act and Reporting Requirements
- FOIP Act Application: DRC operates in accordance with the principles and requirements of the FOIP Act, including collection limitation, use limitation, disclosure limitation, security safeguards, openness, individual access, and accountability
- Authorized Disclosure: DRC may disclose personal information: with consent, for program administration purposes, as required by law, to the Government of Alberta as part of regulatory reporting, and to municipalities for tax assessment purposes
- Compliance: DRC maintains a designated Privacy Officer responsible for FOIP compliance, privacy impact assessments, and responding to access requests
- Inquiries and Concerns: Privacy inquiries and concerns may be directed to communications@deepretrofitcapital.com
Policy Review
This policy is reviewed annually or upon any change to applicable privacy legislation.
DRCP-EIMP-0001: Eligible Improvements
Purpose
To establish the criteria, categories, and maintenance procedures for the DRC Eligible Improvements List, ensuring all improvements financed through CEIP meet regulatory requirements and deliver measurable environmental benefits.
Scope
This policy applies to the identification, evaluation, approval, and ongoing management of improvements eligible for CEIP financing across all property types.
Must-Have Elements
- Improvement Identification: Systematic identification of improvements that reduce energy consumption, GHG emissions, or water usage
- Regulatory Compliance: All eligible improvements must comply with Alta Reg 153/2020 and applicable building codes and standards
- Energy Efficiency Standards Validation: Each improvement must have documented, verifiable energy efficiency or renewable energy performance characteristics
- Estimated Lifespan Tracking: Probable useful life documented for each improvement type, based on manufacturer data and industry standards
- Projected Energy Savings Documentation: Estimated energy savings (kWh, GJ) and GHG reductions (tCO2e) documented per improvement type and property type
- Industry Expert Collaboration: Regular consultation with energy professionals, manufacturers, and researchers to maintain current and comprehensive improvement lists
- Scientific and Market Research: Ongoing review of scientific literature and market developments to identify emerging improvement technologies
Improvement Categories
- Building Envelope: Air barriers, airtightness improvements, moisture management, windows and glazing, insulation, thermal bridging remediation
- Mechanical Systems: Heating, cooling, ventilation, major appliances, heat recovery systems
- Energy Management: Building automation systems, load management systems, renewable energy integration controls
- Lighting: LED retrofits, lighting controls, daylighting systems
- Solar and Renewable Energy: Photovoltaic panels, wind turbines, geothermal systems, combined heat and power
- Efficient Equipment: Kitchen, office, and industrial appliances meeting minimum efficiency standards
Policy Review
The Eligible Improvements List is reviewed at least annually. New improvement types may be added at any time following the evaluation process. The policy itself is reviewed bi-annually.
DRCP-QCTRS-001: Qualified Contractors
Purpose
To establish the requirements, procedures, and standards for contractor qualification, registration, performance monitoring, and compliance within the DRC CEIP program.
Scope
This policy applies to all contractors who apply for or hold qualification status in the DRC Qualified Contractor Directory.
Requirements
- Licensing: Current APEGA or AAA licence, plus valid business licences in all jurisdictions where work will be performed
- Training: Completion of the 3-hour DRC CEIP training module by all key personnel
- Insurance: $5,000,000 general liability and $2,000,000 errors and omissions insurance, maintained throughout participation
- WCB: Current Workers' Compensation Board coverage for all personnel
- Code of Conduct: Signed adherence to the DRC Qualified Contractor Code of Conduct
- Performance Standards: Commitment to meet KPI targets: OTIF >98%, EIA >95%, Satisfaction >90%
Registry Maintenance
DRC maintains the Qualified Contractor Directory as a public registry. The directory includes: company name and contact information, areas of service (geographic and property type), improvement categories served, current qualification status, and performance ratings (once sufficient project history is available).
Non-Compliance Sanctions
Graduated sanctions for non-compliance:
- Warning: Written notice identifying the issue and required corrective action
- Suspension: Temporary removal from the Directory, barring new project assignments until conditions are met
- Removal: Permanent removal from the Directory for serious or repeated non-compliance
Appeal Process
Contractors subject to suspension or removal have a 30-day appeal period. Appeals are heard by the DRC Resolution Committee. The contractor may present evidence and be accompanied by legal counsel. The Committee's decision is final within the DRC framework; the contractor retains the right to pursue external legal remedies.
Community Engagement
DRC encourages Qualified Contractors to engage with local communities to promote awareness of CEIP and clean energy improvements, subject to the Marketing Guidelines.
Policy Review
This policy is reviewed annually or upon any change to contractor requirements in the CEIP Regulation.
DRCP-FINMGT-0001: Financial Management
Purpose
To establish comprehensive financial management standards ensuring fiscal responsibility, transparency, and sustainability in DRC's administration of the CEIP program.
Scope
This policy applies to all financial activities of DRC related to CEIP program administration, including budgeting, accounting, reporting, capital management, and audit processes.
Must-Have Elements
- Project-Level Budgeting: Individual budgets for each CEIP project, tracking all costs against approved amounts
- Timely Financial Reporting: Monthly management reports, quarterly board reports, and annual public financial statements
- GAAP Compliance: All financial reporting in accordance with Canadian Generally Accepted Accounting Principles
- Internal Controls: Segregation of duties, authorization protocols, reconciliation procedures, and access controls for all financial systems
- Transparent Financing: Clear documentation of all financing terms, fees, and cost allocations for each project
- Cost-Benefit Analysis: Financial viability assessment for each project before approval
- Risk Management: Financial risk identification, assessment, and mitigation for program-level and project-level risks
- Monthly Reviews: Monthly financial review by management with variance analysis against budget
- Audit Readiness: Maintenance of records and systems to support annual independent audit at any time
- Long-Term Sustainability: Financial planning to ensure program continuity, including 3-month reserve maintenance and performance bond funding
Designated Financial Officer
DRC maintains a Designated Financial Officer (DFO) with fiduciary responsibility for the financial management of the CEIP program. The DFO reports to the CEO/Managing Director and the Audit Committee of the DRC Resolution Committee.
Policy Review
This policy is reviewed annually or upon any material change to financial regulations or accounting standards.
DRCP-IRE-0001: Issue Resolution and Escalation
Purpose
To establish a structured, transparent, and fair framework for resolving issues, complaints, and disputes arising in connection with the DRC CEIP program.
Scope
This policy applies to all issues, complaints, and disputes involving any CEIP stakeholder: property owners, qualified contractors, municipalities, investors, or members of the public.
4-Tier Framework
Tier 1: DRC Program Liaison
- Response Time: Within 1 business day
- Scope: Routine inquiries, minor complaints, scheduling issues, information requests, and first-contact resolution of straightforward issues
- Process: The Program Liaison receives the issue, documents it in the issue tracking system, and works to resolve it directly. If resolution is not possible at Tier 1, the issue is escalated to Tier 2 with full documentation.
Tier 2: DRC Concerns Officer
- Response Time: Severity assessment within 2-10 business days
- Scope: Moderate complaints, performance issues, disputes between parties, issues requiring investigation or multiple-party coordination
- Process: The Concerns Officer conducts a severity assessment, investigates the issue, engages relevant parties, and works toward resolution. If the issue cannot be resolved at Tier 2, it is escalated to Tier 3 with a full investigation report.
Tier 3: DRC Resolution Committee
- Composition: Senior management and legal counsel, with additional subject matter experts as needed
- Scope: Serious complaints, patterns of non-compliance, significant financial disputes, contractor suspension/removal decisions, matters with potential legal implications
- Process: The Committee reviews the full issue file, may conduct hearings, and issues a formal decision. Parties may be represented by legal counsel. The Committee's decision is final within the DRC framework.
Tier 4: Minister's Office
- Scope: Issues involving significant community concern, serious legal implications, matters that cannot be resolved through the DRC framework, or issues where a stakeholder is dissatisfied with the Tier 3 outcome
- Process: Escalation to the Government of Alberta (contact: Heather Dent, Director Strategic Climate Policy). The Minister's Office may conduct its own review and direct DRC to take specific actions.
General Provisions
- Full Audit Trail: Every issue is documented from initial receipt through final resolution, with all communications, decisions, and actions recorded in the issue tracking system
- Confidentiality: All parties' personal information and business details are handled confidentially in accordance with the FOIP Act and DRC's privacy policy
- Non-Retaliation: No stakeholder shall be subject to retaliation for filing a complaint or participating in the issue resolution process in good faith
- Accessibility: The issue resolution process is accessible to all stakeholders. Accommodations are provided for language, disability, or other accessibility needs upon request.
Policy Review
This policy is reviewed annually or upon any change to the regulatory framework governing dispute resolution.
Glossary
Comprehensive glossary of terms used throughout the DRC CEIP program documentation.
| Term | Definition | Source |
|---|---|---|
| Administration Fee | The fee charged by the Program Administrator for administering the CEIP program. Limited to a maximum of 5% of total capital cost per project. | Alta Reg 212/2018, s.6 |
| APEGA | Association of Professional Engineers and Geoscientists of Alberta. The regulatory body for professional engineers and geoscientists in Alberta. | DRCP-QCTRS-001 |
| AAA | Alberta Association of Architects. The regulatory body for architects in Alberta. | DRCP-QCTRS-001 |
| ASHRAE | American Society of Heating, Refrigerating and Air-Conditioning Engineers. The organization whose standards govern energy audit methodologies used in CEIP. | Alta Reg 212/2018 |
| Business Day | Any day other than a Saturday, Sunday, or statutory holiday in the Province of Alberta. | CEIP Agreement |
| Capital Cost | The cost of materials, equipment, and labour directly associated with installing an eligible improvement, excluding professional services and incidental costs. | Alta Reg 212/2018, s.10 |
| CEIP | Clean Energy Improvement Program. Alberta's property-assessed clean energy financing mechanism established under the Municipal Government Act. | MGA, Division 6.1 |
| Clean Energy Improvement Agreement | The formal agreement between a property owner, qualified contractor, and DRC governing a specific CEIP project, including scope, costs, payment terms, and obligations. | Alta Reg 212/2018, s.10 |
| Clean Energy Improvement Charge | The annual assessment added to a property owner's tax bill to repay the cost of CEIP-financed improvements. | MGA, s.390.4 |
| CEM | Certified Energy Manager. A professional certification for energy management professionals, qualifying the holder to perform ASHRAE energy audits for CEIP. | DRCP-EIMP-0001 |
| CET | Certified Engineering Technologist. A professional designation qualifying the holder to perform ASHRAE energy audits for CEIP. | DRCP-EIMP-0001 |
| Code of Conduct | The DRC Qualified Contractor Code of Conduct, establishing standards of behaviour, obligations, and compliance requirements for all contractors participating in the program. | DRCP-QCTRS-001 |
| Commencement Date | The date on which installation of eligible improvements begins under a Project Agreement. | Project Agreement |
| Completion Date | The date on which all eligible improvements under a Project Agreement have been installed, commissioned, and accepted. | Project Agreement |
| Contractor Directory | The DRC-maintained public registry of all currently qualified contractors, including their qualifications, areas of service, and performance ratings. | DRCP-QCTRS-001 |
| CSA | Canadian Standards Association. A standards development and testing organization whose certifications are required for certain equipment types in CEIP projects. | DRCP-EIMP-0001 |
| Dower Act | Alberta legislation requiring spousal consent for property transactions. Applicable to CEIP agreements on residential and certain other property types where all registered owners must sign. | Alta Reg 212/2018, s.10 |
| ECM | Energy Conservation Measure. A specific improvement or action designed to reduce energy consumption in a building, forming the basis of CEIP project scope. | ASHRAE Standards |
| Eligible Cost | Any cost that may be included in CEIP financing: capital costs, professional services, and incidental costs (up to 15% of total capital). | Alta Reg 212/2018, s.10 |
| Eligible Improvement | An improvement to a property that reduces energy consumption, GHG emissions, or water usage, and is listed on the DRC Eligible Improvements List. | Alta Reg 212/2018, s.3 |
| Energy Audit Report | A report prepared by a qualified auditor following ASHRAE methodology, documenting a building's energy characteristics and recommending improvements. DRC policy requires Level 3 pre-project for commercial/industrial (simplified assessment for residential) and Level 2 post-project for all property types. This is a DRC policy decision for private-capital de-risking, not a regulatory mandate. | DRCP-MORPT-0001 |
| ETL | Intertek Testing Services. A recognized product safety certification body whose mark is accepted for equipment certification in CEIP projects. | DRCP-EIMP-0001 |
| Event of Force Majeure | An event beyond the reasonable control of a party that prevents performance of obligations under an agreement, including natural disasters, war, pandemic, or government action. | CEIP Agreement |
| FOIP Act | Freedom of Information and Protection of Privacy Act (RSA 2000, c.F-25). Alberta's privacy legislation governing the collection, use, and disclosure of personal information by public bodies and their designates. | DRCP-PADM-0002 |
| GHG | Greenhouse Gas. Gases that trap heat in the atmosphere, primarily CO2, methane, and nitrous oxide. CEIP projects are measured for GHG reduction in tCO2e. | DRCP-MORPT-0001 |
| GJ | Gigajoule. A unit of energy equal to one billion joules, commonly used to measure natural gas consumption in Alberta. | DRCP-MORPT-0001 |
| Incidental Cost | Costs associated with but not directly part of the improvement installation, including audit fees, permit fees, and inspection costs. Limited to 15% of total capital cost. | Alta Reg 212/2018, s.10 |
| Incidental Work | Work that is necessary to support the installation of an eligible improvement but is not itself an eligible improvement (e.g., structural reinforcement for solar panels). | Alta Reg 212/2018 |
| Installation Authorization Notice | The written notice from DRC to the qualified contractor and property owner authorizing commencement of installation work. | Project Agreement |
| Issue Escalation Framework | The DRC four-tier framework for resolving complaints, disputes, and performance issues: Program Liaison, Concerns Officer, Resolution Committee, and Minister's Office. | DRCP-IRE-0001 |
| kWh | Kilowatt-hour. A unit of electrical energy equal to one kilowatt of power sustained for one hour. Used to measure electricity consumption and savings. | DRCP-MORPT-0001 |
| Marketing Guidelines | The DRC guidelines governing how qualified contractors may market and represent the CEIP program, including prohibited practices and required messaging. | DRCP-QCTRS-001 |
| Minister | The Alberta Minister responsible for the Emissions Management and Climate Resilience Act, with authority to designate CEIP Program Administrators. | MGA, Division 6.1 |
| Municipality | An Alberta local government that has passed a CEIP bylaw enabling the program within its jurisdiction. | MGA |
| Municipal Government Act | RSA 2000, c.M-26. The Alberta statute providing municipalities with the authority to establish CEIP programs under Division 6.1. | Provincial legislation |
| P.Eng | Professional Engineer. A designation issued by APEGA to engineers meeting education, experience, and examination requirements. P.Eng holders may perform ASHRAE energy audits. | DRCP-EIMP-0001 |
| Performance Bond | A financial instrument ensuring long-term program monitoring capability. DRC maintains approximately $100,000 per $100 million in aggregated projects. | DRCP-FINMGT-0001 |
| Primary Qualified Contractor | The contractor designated as the lead on a specific CEIP project, responsible for overall project delivery and all subcontractor performance. | Project Agreement |
| Professional Service | Engineering, architectural, or project management services provided by qualified professionals in connection with a CEIP project. | Alta Reg 212/2018, s.10 |
| Program Administrator | An entity designated by the Minister to administer the CEIP program. Deep Retrofit Capital Inc. was designated by Ministerial Order 16/2025. | Alta Reg 212/2018, s.2 |
| Program Terms and Conditions | The overarching terms and conditions governing the DRC CEIP program, distinct from individual project agreements. | DRC Program |
| Project | A specific set of eligible improvements to be installed on a specific property under a CEIP Agreement. | CEIP Agreement |
| Project Agreement | The three-party agreement between a property owner, qualified contractor, and DRC governing the execution of a specific CEIP project. | Alta Reg 212/2018, s.11 |
| Project Application Form | The DRC form used by property owners to apply for CEIP financing for a specific set of eligible improvements. | DRC Program |
| Property | Real property located within an Alberta municipality that has passed a CEIP bylaw. Includes residential, commercial, farm, and non-designated industrial properties. | MGA |
| Property Owner | The registered owner(s) of a property participating or seeking to participate in the CEIP program. | Alta Reg 212/2018, s.1 |
| Qualified Contractor | A contractor who has met all DRC qualification requirements and is listed in the Contractor Directory. | Alta Reg 212/2018, s.4 |
| Subcontractor | Any person or company engaged by a Qualified Contractor to perform a portion of the work under a CEIP Project Agreement. | DRCP-QCTRS-001 |
| Substantial Performance | The stage at which CEIP improvements are ready for use as intended, subject only to minor deficiencies that do not materially affect function or safety. | Project Agreement |
| Supporting Documentation | All documents required by DRC to verify contractor qualification, project progress, and completion, including commissioning reports, invoices, photos, and warranties. | DRCP-QCTRS-001 |
| tCO2e | Tonnes of carbon dioxide equivalent. The standard unit for measuring greenhouse gas emissions, accounting for the global warming potential of different gases. | DRCP-MORPT-0001 |
| Terms and Conditions | The DRC Qualified Contractor Terms and Conditions, governing the contractual relationship between DRC and each qualified contractor. | DRCP-QCTRS-001 |
| ULC | Underwriters Laboratories of Canada. A product safety certification organization whose mark is required for certain equipment types in CEIP projects. | DRCP-EIMP-0001 |
| Upgrade | The installation of an eligible improvement on a property under a CEIP Agreement. | CEIP Agreement |
| Upgrade Completion Form | The DRC form certifying that all eligible improvements specified in a Project Agreement have been installed, commissioned, and accepted. | DRC Program |
| WCB | Workers' Compensation Board of Alberta. All contractors and their personnel must maintain current WCB coverage when working on CEIP projects. | DRCP-QCTRS-001 |
ASHRAE Level 2 Audit Requirements
The ASHRAE Level 2 audit is conducted one year after project completion to verify actual performance against the projections in the original Level 3 audit.
Level 2 Audit Specification P5
- Facility Description: Updated description of the facility reflecting completed improvements
- Energy Equipment Description: Inventory of all energy-consuming equipment, including newly installed CEIP improvements
- Historical Billing Data: Minimum 1 year of post-improvement utility billing data (electricity, natural gas, water)
- ECM Performance List: For each installed improvement:
- Actual energy savings (kWh, GJ) vs. projected
- Actual GHG reductions (tCO2e) vs. projected
- Remaining useful life assessment
- Actual cost vs. estimated (within +/-50% for cost, +/-30% for savings)
- Actual payback period vs. projected
- Commissioning Opportunities: Identification of any commissioning or retro-commissioning actions that could improve performance
- Next Steps Recommendations: Recommendations for additional improvements or operational changes
- Auditor Qualifications: P.Eng, CET, or CEM with minimum 3 years relevant experience. Must be an independent third party (not the installing contractor or property owner).
ASHRAE Level 3 Audit Requirements
The ASHRAE Level 3 audit is the most detailed level of energy assessment. DRC policy requires this audit for commercial and industrial properties as a pre-project investment validation measure for private-capital de-risking. The regulation permits the program administrator to define assessment requirements (Reg 7.3) but does not mandate a specific audit level. For residential properties, DRC accepts a simplified energy assessment. The Level 3 audit establishes the baseline against which post-project performance is measured.
Level 3 Audit Specification P2
- Site Conditions: Detailed assessment of site geography, climate zone, surrounding structures, and environmental factors
- Location: Full property location details, including municipal jurisdiction, assessment roll number, and legal description
- Building Characteristics: Construction type, age, floor area, number of storeys, orientation, occupancy type and patterns
- Utility Profile: Minimum 12 months historical utility data for all energy sources (electricity, natural gas, propane, heating oil, water), including rate structures and demand profiles
- Equipment Details: Complete inventory of energy-consuming equipment with specifications, age, condition, operating hours, and efficiency ratings
- Projected Savings: For each proposed improvement:
- Projected electricity savings (kWh/year)
- Projected natural gas savings (GJ/year)
- Projected GHG reductions (tCO2e/year)
- Projected water savings (m3/year, where applicable)
- Financial Estimates: For each proposed improvement:
- Return on investment (ROI)
- Net present value (NPV)
- Simple payback period
- Revenue projections (where applicable, e.g., micro-generation)
- Maintenance cost impact (increase or decrease)
- Micro-Generation Compliance: For renewable energy improvements, assessment of compliance with Alberta's Micro-Generation Regulation
- CSA/ULC Certification: Verification that all proposed equipment meets applicable CSA, ULC, or ETL certification requirements
- Milestones and Timeline: Proposed implementation schedule with milestones for each improvement
- Interconnection Analysis: For grid-connected systems, analysis of utility interconnection requirements and capacity
- Scalability: Assessment of potential for future improvement phases beyond the current project scope
- Auditor Qualifications: P.Eng, CET, or CEM with minimum 3 years relevant experience. Must be an independent third party.
Regulatory Cross-Reference
Mapping between the Clean Energy Improvements Regulation sections, DRC policies, and platform features.
| Regulation Section | Topic | DRC Policy | Platform Feature |
|---|---|---|---|
| Section 1 | Definitions | All policies | Glossary tab |
| Section 2 | Program Administrator | DRCP-PADM-0001 | N/A (ministerial designation) |
| Section 3 | Eligible Improvements | DRCP-EIMP-0001 | Improvements catalog |
| Section 4 | Qualified Contractors | DRCP-QCTRS-001 | Contractor registry |
| Section 5 | CEIP Tax Bylaws | Administration Agreement | Bylaw management module |
| Section 6 | Administration Agreement | Administration Agreement | Municipal portal |
| Section 7 | Applications | Application workflow | Application wizard |
| Section 8 | Application Fees | Fee configuration | Payment gateway |
| Section 9 | Approval | Approval workflow | Admin dashboard |
| Section 10 | CEIP Agreements | Agreement builder | Digital signatures |
| Section 11 | Contractor Agreements | DRCP-QCTRS-001 | Project management |
| Section 12 | Monitoring and Reporting | DRCP-MORPT-0001 | Monitoring system |
Contact Information
General program inquiries, partnership opportunities, and public information requests
communications@deepretrofitcapital.com
Media inquiries, privacy concerns, FOIP requests, and marketing guideline questions
contractors@deepretrofitcapital.com
Contractor registration inquiries, qualification requirements, and training information
Heather Dent, Director Strategic Climate Policy
Government liaison for CEIP program administration and Tier 4 escalation endpoint
See policy DRCP-IRE-0001 (Governance Policies tab) for the full four-tier escalation framework.
Tier 1: Program Liaison (1 business day) | Tier 2: Concerns Officer (2-10 days) | Tier 3: Resolution Committee | Tier 4: Minister's Office
Spearstone
Platform development, technical inquiries, and deployment