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Softwood Industry Community Economic Adjustment Initiative - British Columbia

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Program Overview

Federal funding under the Softwood Industry Community Economic Adjustment Initiative (SICEAI) is coordinated through Industry Canada and delivered by regional agencies, including FedNor, using existing mechanisms and delivery structures. Western Economic Diversification Canada delivers the program in Western Canada. The delivery model is distinct to each region, reflecting the unique capabilities and infrastructure of each regional agency. In B.C., the department works with a Softwood Industry Minister's Advisory Group chaired by Prince George Mayor Colin Kinsley, and the Community Futures Development Corporations to implement the Softwood Initiative.

A formal call for Softwood Initiative project proposals was issued on May 2, 2003, to communities throughout B.C. that have been impacted by the U.S. softwood lumber trade dispute. By the June 2, 2003 deadline for expressions of interest, over 1,100 proposals seeking over $700 million in funding were received from applicants in some 140 communities across the province. Applicants whose proposals met Softwood Initiative guiding principles and criteria were invited to develop a full business or project plan.

No further Expressions of Interest are being accepted.

Fund Objectives

The Softwood Industry Community Economic Adjustment Initiative was created to help forest-dependent communities create opportunities for economic development in order to stimulate investment and job creation. Specifically, the Softwood Initiative provides funding for projects in B.C.'s forest-dependent communities that address local adjustment priorities and which have demonstrable community support.

The objectives of the Softwood Initiative are to facilitate local and regional, forest-based strategic investments with positive long-term economic benefits, and transition away from traditional forest-based dependence to alternative and sustainable economic activities within communities.

The five areas of priority for the Softwood Industry Community Economic Adjustment Initiative are:

• Innovation and Value Added Forestry
• Community Capacity Building
• Economic Diversification
• Infrastructure that Encourages Growth
• First Nations Participation

Program Funding

The national Softwood Industry Community Economic Adjustment Initiative program is funded with $110 million for 2003/2004, of which British Columbia received $50 million to support diversification projects in impacted communities. Funding has been extended for the 2004/2005 fiscal year. All projects must be fully completed by March 31, 2005.

Assistance was given in both repayable (for - profit projects) and non-repayable (not-for-profit projects) forms.

Assessment of Eligibility and Funding Criteria

Eligible Areas

Communities that were impacted by direct job losses in sawmilling, logging and remanufacturing since May 22, 2002 ( imposition when the of U.S. softwood tariffs were imposed) were eligible for Softwood Initiative funding. A list of those communities can be accessed here at : SICEAI Eligible Communities .

Eligible Recipients

Eligible recipients included:

• not-for-profit organizations
• municipalities and municipal organizations
• crown corporations
• corporations
• sole proprietorships
• community development organizations
• associations and other consortia
• First Nations and aboriginal organizations

Funding Criteria

To be considered for funding, projects were required to meet the following criteria:

• Be consistent with the overall objectives of the program;
• Have potential to further the economic development of a community or a group of communities and should not benefit one community or community group at the expense of another;
• Have strong community support such as financial contributions, written support or endorsements by a municipal or band council;
• Demonstrate economic benefits such as increased jobs or use of a new technology; and

• Demonstrate adequate managerial, financial and technical capability to conduct the proposed activity.

Environmental Assessments under SICEAI

Each project under the Softwood Industry Community Economic Adjustment Initiative offers sustainable economic benefits while minimizing or avoiding adverse environmental effects. Each project must undergo an environmental assessment to determine whether a Canadian Environmental Assessment Act (CEAA) review is potentially may be required. Funding cannot be legally released to the proponent prior to a satisfactorily completed environmental assessment.

Approval Process

The first stage involved a preliminary review of the "Expressions of Interest" against basic eligibility criteria. This included verifying community support, gauging environmental implications, a look ing at the structure of the funding profile and confirming the potential for sustainable economic benefits to the local economy. Over 1,100 projects were looked reviewed at thoroughly to determine if they me et the se stage one eligibility requirements.

The second stage involved a detailed assessment of a full project plan (for non-profit organizations) or a business plan (for commercial for-profit ventures). More than 3 00 projects moved to this detailed assessment stage and 146 projects were approved for funding through the Quality Review Process.

A final stage entailed a review of each "bundle" of projects by Mayor Kinsley's Minister's Advisory Group to ensure consistency with the strategic goals set for the program. This group looked at issues like such as sectoral and geographic distribution, Aboriginal participation, and ensured projects offered tangible and sustainable economic benefits.

Questions ?

For further information, please contact your local Community Futures Development Corporation office or call the B.C. Community Futures Development Association toll free at (604) 1-866-685-2332.