Mountain Pine Beetle: Community Economic Diversification Initiative

Overview | Impacted Areas | Participating CF's | FAQ

Overview

• What is the Community Economic Diversification Initiative?
• What is the status of the Community Economic Diversification Initiative? 
• Who could apply for funding?
• Which communities were eligible for funding?
• What kinds of projects were eligible for funding?
• How did WD assess projects?
• How will this initiative be evaluated?
• Who can I contact for more information? 

What is the Community Economic Diversification Initiative?

The Community Economic Diversification Initiative (CEDI) is a key component of the federal Mountain Pine Beetle Program. It is a two-year federal contribution program aimed at helping to diversify the economic foundation and contribute to their long-term stability of forest-dependent communities and First Nations.
 
Western Economic Diversification Canada (WD) is delivering the initiative on behalf of the federal government. Working with community leaders and other key stakeholders, the Department will invest over $33 million in projects that support economic growth, job creation and future sustainability of communities adversely affected by the widespread beetle infestation.

Launched in January 2007, the CEDI program is part of the Government of Canada's $200 million response to the mountain pine beetle outbreak.

All projects funded under the Community Economic Diversification Initiative must be completed by March 31, 2010.

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What is the status of the Community Economic Diversification Initiative?

The deadline for submitting Expressions of Interest for program funding has passed. More than 500 Expressions of Interest were received by WD. These Expressions of Interest were ranked, with the highest ranking proposals invited to the next stage of proposal development.

Currently, the Department is completing work with proponents to develop final, full project proposals. These proposals will be considered for funding through the Department's regular project approval process, which may or may not lead to final project approval.

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Who could apply for funding?

Not-for-profit* organizations dedicated to helping diversify the economic foundation of forest-dependent communities and contributing to their long-term could submit Expressions of Interest for funding by October 19, 2007. These organizations included:

• local and regional governments, First Nations, crown corporations and agencies;
• Aboriginal and community groups;
• community development corporations, industry, business and sector associations;
• co-operatives;
• academic institutions, post -secondary and technical institutes.

* Small- and medium-sized businesses and for-profit co-operatives may be eligible for funding on a fully repayable basis for innovative forest and value-added wood projects.

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Which communities were eligible for funding?

The adjacent map highlights the Timber Supply Areas (TSAs) affected by the mountain pine beetle. To be considered for funding, projects had to serve one or more of the communities and First Nations within Zone 1 and/or Zone 2.

Based on recommendations from an advisory board of forestry and community leaders in British Columbia (BC), WD will direct a minimum of 70 per cent of available funds to projects that serve communities and First Nations that are at the most immediate (i.e. first affected) risk from the pine beetle infestation. These first affected communities and First Nations are located within Zone 2.

In order to further prioritize communities at the most immediate risk, WD used the following biological and socio-economic measures:

• community is most immediately impacted (e.g. the percentage of pine already killed);
• community is in a Timber Supply Area with more than 25 per cent pine;
• community has more than 10 per cent of its labour force employed in logging and forestry (as defined by BC Stats);
• community is more than 10 per cent forest income dependent (as defined by BC Stats);
• community is a First Nation community shown to be at greatest risk due to economic and sustenance dependency on the affected forests.

The above biological and socio-economic indicators were not available for all communities in BC.  Where necessary, WD made the best efforts to use alternative sources of data.

What kinds of projects were eligible for funding?

To be considered, projects were expected to link to one or more of the four broad program areas. Within these areas, WD considered a wide range of projects. These program areas included:

• Community Capacity Building - projects aimed at preparing communities to take advantage of new economic opportunities.
• Economic Diversification - projects that focus on innovative opportunities for growth by capitalizing on regional strengths beyond the forest industry.
• Value-Added Forestry - projects that capitalize on unrealized and high-value niche opportunities in the non-traditional areas of the forest sector including commercializing new value-added wood products, markets and services.
• Economic Infrastructure - projects that result in new or improved infrastructure that generates long-term sustainable economic benefits for the community.

Note that stand-alone, municipal, civic, social service or quality of life infrastructure projects were not eligible for funding.

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How did WD assess projects?

Western Economic Diversification Canada reviewed each Expression of Interest and ranked it against assessment criteria. The highest ranking proposals were invited to the full proposal stage of development.  The following was used to rank Expressions of Interest:

Assessment criteria

• the organization is financially viable and has a track record of undertaking and successfully completing projects; 
• the project activities are incremental. Core operational activities are not eligible for funding under this initiative;
• the project is clearly in line with one or more of the initiative's four key program areas: Community Capacity Building; Economic Diversification; Value-Added Forestry; and Economic Infrastructure;
• the project has attracted funding and support from other sources;
• the project is in line with First Nations, local or regional economic development priorities or initiatives.

Additional assessment points were given to projects that met the following:

• the community to be served by the project is located in Zone 2 and meets the "at risk"  measures; (see map)
• the community to be served by the project is First Nations;
• the project creates permanent and/or seasonal jobs;
• the project introduces new products and/or services to the local economy;
• the project increases the number of skilled workers in BC; and
• the project creates new businesses or enhances existing businesses.

Other considerations included:

• Whether an environmental assessment was required if a project involved the construction, operation, modification or decommissioning of a physical work. Given the initial March 31, 2009 deadline for completion of all projects, it was unlikely that large, complex environmental assessments could be completed within the available timeframe. 
• The terms of the Community Economic Diversification Initiative state that, for small and medium sized enterprises, WD would fund, on a repayable basis, up to 50 per cent of the cost of capital projects and 75 per cent for non-capital projects. 
• WD had to ensure all programs and projects were in compliance with international trade agreements.  Softwood lumber manufactures and exporters were not eligible for funding under this initiative.

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How will this initiative be evaluated?

In working closely with the Community Futures offices in BC and other key partners, WD is dedicated to delivering a successful Mountain Pine Beetle Community Economic Diversification Initiative that will support long-term stability in BC's forest-dependent communities.  Some of our expected outcomes are:

• successful community adjustment;
• new start-ups and enhanced existing businesses;
• increased business capacity, productivity, and viability;
• increased skills, knowledge and competencies for community members;
• increased participation in international markets;
• increased community participation;
• creation of mechanisms for community and government collaboration and coordination;
• enhanced capacity for communities to implement strategies identified in their strategic plans; and
• greater linkages between communities and educational facilities.

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Who can I contact for more information?

For additional information and inquires contact the WD regional office nearest you, or by:

Telephone: 1 888 338-WEST (9378)
Email: cedi@wd-deo.gc.ca

To review other Western Economic Diversification Canada funding programs available to assist community economic diversification, please visit: WD Programs.

For more information on the federal Mountain Pine Beetle program, visit the Natural Resources Canada website.