ARCHIVED - Environment Canada

1. Name of Recipient: Sustainable Development Technology Canada (SDTC)

2. Start Date: March 2001 (Sustainable Development Technology Fund) and April 2007 (NextGen Biofuels Fund)

3. End Date: June 2015 (Sustainable Development Technology Fund) and September 2027 (NextGen Biofuels Fund)

4. Total Funding: $1.05 billion (Environment Canada's share is $525 million)⁵

5. Description

• Sustainable Development Technology Fund: To stimulate the development and demonstration of Canadian technologies aimed at climate change, clean air, clean water and clean soil
• NextGen Biofuels Fund: To establish first-of-kind, large, demonstration-scale facilities for the production of next-generation renewable fuels

6. Strategic Outcome(s): Canadians and their environment are protected from the effects of pollution and waste

7. Summary of Results Achieved by the Recipient: In 2008, under the Sustainable Development Technology Fund, SDTC announced that 34 projects were approved for funding in 2008, with SDTC providing $105 million or 30 percent of the total eligible project value of $355 million. Since its inception, SDTC has provided $376 million for 154 projects, with a total project value of $1.3 billion and the potential for 5 to 12Mt of CO2 emission reductions annually by 2012. Under the new NextGen Biofuels Fund, SDTC received one formal application in 2008 and expects four more in 2009. Currently, SDTC is tracking 100 companies as potential applicants, but there were no allocations in 2008. As expected, project disbursement payments from the Sustainable Development Technology Fund are projected to increase as the number of completed projects increases. Disbursement payments are projected to be $85 million in 2010 and $60 million in 2009, compared to $41 million in 2008 and $28 million in 2007. As of December 2008, $126 million has been disbursed under the Sustainable Development Technology Fund. As required by legislation, SDTC submitted its annual report documents on time to both Environment Canada and Natural Resources Canada and posted these on the SDTC website, making them available to the public.

($ millions)

14. Program Activity:	8. Actual Spending 2006-07	9. Actual Spending 2007-08	10. Planned Spending 2008-09	11. Total Authorities 2008-09	12. Actual Spending 2008-09	13. Variance(s)
Canadians adopt sustainable consumption and production approaches	-	-	12.5	12.5	12.5	-
	-	(S) 1.6	-	(S) 19.0	(S) 19.0	(19.0)
Total Program Activity	-	1.6	12.5	31.5	31.5	(19.0)
Totals may differ between and within tables due to rounding of figures.

15. Comments on Variance(s): The above financial data pertain to the NextGen Biofuels Fund only. The variance is due to a statutory payment of $19.0 million issued over and above the planned $12.5 million included in Environment Canada 's Main Estimates. The last payment to SDTC for the Sustainable Development Technology Fund occurred in 2005.

16. Significant Evaluation Findings by the Recipient During the Reporting Year and Future Plan: As per Funding Agreement Three for the Sustainable Development Technology Fund, SDTC has engaged an independent third party to conduct its second interim evaluation. The evaluation report will be submitted by June 20, 2009, for operations up to December 31, 2008, and will assess whether the Fund is meeting its purposes and objectives, and whether adjustments to the program can and should be made. The "Evaluation by Canada" is optional at any time. There was no evaluation in 2008 of the NextGen Biofuels Fund, since it is new. The first of three interim evaluations for that fund is required in November 2012.

17. Significant Audit Findings by the Recipient During the Reporting Year and Future Plan: There was no performance audit in 2008, except for the standard financial audit required for the financial data in the SDTC annual report. However, the "Value-for-money (Performance) Audit" for the Sustainable Development Technology Fund will be initiated in the 2009-2010 fiscal year (which is equivalent to once every five years, as per Funding Agreement Three).

18. URL to Recipient's Site: www.sdtc.ca

1. Name of Recipient: Federation of Canadian Municipalities (FCM) Green Municipal Fund (GMF); formerly known as the Green Municipal Enabling Fund and the Green Municipal Investment Fund

2. Start Date: February 2000

3. End Date: In perpetuity

4. Total Funding: $550 million (Environment Canada's share is $275 million)

5. Description: The intent of the GMF is to encourage investment in environmental municipal infrastructure. Specifically, the priorities of the fund are to have a positive impact on the health and quality of life of Canadians by reducing greenhouse gas emissions, improving local air, water and soil quality, and promoting renewable energy by supporting environmental studies and projects within the municipal sector.

The GMF is co-funded equally by Natural Resources Canada and Environment Canada, which manage the fund at arm's length, creating a strong partnership between the FCM and the Government of Canada. The FCM Board of Directors, formally designated as the decision-making body for the funds, is advised by a 15-member council that includes five federal appointees. The council plays a key role, supported by the FCM Secretariat and the GMF Peer Review Committee.

Created in Budget 2000 with an endowment of $125 million, the Green Municipal Enabling Fund and Green Municipal Investment Fund were doubled in Budget 2002 with an additional $125 million.

The $50 million Green Municipal Enabling Fund provided grants to support feasibility studies to increase municipal expertise and knowledge of leading-edge environmental technologies and practices. The $200 million Green Municipal Investment Fund has provided loans and loan guarantees to leverage municipal investment in innovative environmental infrastructure projects.

Budget 2005 announced $300 million of additional funding for the 2004-2005 fiscal year.

With Budget 2005, the two funds were merged into one fund known as the Green Municipal Fund, combining the $250 million from the old funds with the new $300 million into a revolving fund. This fund supports grants, loans and loan guarantees, and is consistent with the purpose and intent of the original agreements. Of the total amount in this fund, $150 million is to be used exclusively to provide loans for the cleanup and redevelopment of brownfields.

The amount of GMF financing available to municipalities is directly related to the environmental benefits and/or innovation of the projects undertaken, with grant-loan combinations of up to 80 percent of eligible costs available for projects with exceptional environmental benefits.

6. Strategic Outcome(s): Canadians and their environment are protected from the effects of pollution and waste

7. Summary of Results Achieved by the Recipient: Findings on the results achieved by the recipient are available in the recipient's annual report.

($ millions)

14. Program Activity:	8. Actual Spending 2006-07	9. Actual Spending 2007-08	10. Planned Spending 2008-09	11. Total Authorities 2008-09	12. Actual Spending 2008-09	13. Variance(s)
Canadians adopt sustainable consumption and production approaches	-	-	-	-	-	-
Totals may differ between and within tables due to rounding of figures.

15. Comments on Variance(s): The Green Municipal Fund is administered by the Federation of Canadian Municipalities, as per the Funding Agreement (2005).

16. Significant Evaluation Findings by the Recipient During the Reporting Year and Future Plan: N/A

17. Significant Audit Findings by the Recipient During the Reporting year and Future Plan:

• A progress report was provided to the Green Municipal Fund Council on June 12, 2009, regarding the status of the performance audit (section 11.07) and review (section 11.05). The final report will be provided to Council for approval in September 2009.
• In section 11.05 of the Funding Agreement, it stipulates that the FCM agrees to obtain and make public and forward to each Minister, for tabling in Parliament, an independent review using recognized evaluation standards on the following timelines: an initial review within six months following March 31, 2009, and subsequent reviews every five years from the date of the first review.
• In section 11.07 of the Funding Agreement, it stipulates that the FCM agrees to have carried out an independent performance (value-for-money) audit to ensure the economy, efficiency and effectiveness with which funds have been used. An initial audit must be carried out within six months following March 31, 2009, with subsequent reviews every five years from the date of the first review.

18. URL to Recipient's Site: www.fcm.ca

1. Name of Recipient: Nature Conservancy of Canada

2. Start Date: March 2007

3. End Date: In perpetuity (until the total funding is expended)

4. Total Funding: $225 million

5. Description: The Nature Conservancy of Canada works to ensure the long-term protection of biodiversity by placing funds into a stewardship endowment to support the ongoing management and restoration of habitat and the recovery of species at risk. The Conservancy focuses on working with private landowners to secure ecologically significant lands that have been identified as priorities for conservation action. To that effect, the Conservancy acquires and preserves land through one of four methods: land purchase, land donations, conservation easements or relinquishment of rights. The goal of the program is to secure 200,000 hectares of private land for conservation.

6. Strategic Outcome(s): Canada's natural capital is restored, conserved and enhanced

7. Summary of Results Achieved by the Recipient: A statutory payment was issued to the Nature Conservancy of Canada as per the Government's commitment in the 2008 Budget. As of the end of March 2009, the Conservancy has drawn $116 million under the federal allocation. To date, the Conservancy has raised more than $90 million in matching funds and pledges from private and other public sources, and received donations of conservation lands and easements valued at $88 million from private landowners, for a total of $178 million. The organization is on track to more than match the federal investment of $225 million over the life of the program. The Conservancy and its partners have now secured more than 102,000 hectares of land, through more than 324 land transactions. These lands are found in every province and provide habitat for at least 74 species at risk.

($ millions)

14. Program Activity:	8. Actual Spending 2006-07	9. Actual Spending 2007-08	10. Planned Spending 2008-09	11. Total Authorities 2008-09	12. Actual Spending 2008-09	13. Variance(s)
Biodiversity is conserved and protected	-	70.2	-	46.1	46.1	(46.1)
Totals may differ between and within tables due to rounding of figures.

15. Comments on Variance(s): This conditional grant was fully accounted for in the 2006-2007 fiscal year. Payments made under the grant are based on the Conservancy's fiscal year, which commences on July 1, 2009. Installments under the grant were $70.2 million in 2007-2008 and $46.1 million in 2008-2009.

16. Significant Evaluation Findings by the Recipient During the Reporting Year and Future Plan: No program evaluation has been conducted to date. The first annual progress report spanning April 1, 2007, to June 30, 2008, was received from the Conservancy on May 14, 2009, and was deemed to be satisfactory. Program evaluations are to be carried out no less frequently than every five years from the date of the agreement and when the fund has been expended.

17. Significant Audit Findings by the Recipient During the Reporting Year and Future Plan: A financial audit, dated June 30 2008, was conducted by Ernst & Young to inform the first annual progress report on the program, spanning April 1, 2007, to June 30, 2008. The auditor's report indicated that "...the financial statements present fairly, in all material respects, the financial position of the Fund as at June 30, 2008 and the results of its operations and its cash flows for the fifteen-month period then ended in accordance with Canadian generally accepted accounting principles … except for the effect of adjustments, if any, which we might have determined to be necessary had we been able to obtain detailed supporting documentation for expenses incurred by Ducks Unlimited Canada" as per the sub-agreement between the Conservancy and Ducks Unlimited Canada. (Note: Ducks Unlimited Canada employs a "pooling and deeming" accounting process to allocate funds and track the progress of their various programs. Since the Natural Areas Conservation Plans Annual Progress Report, Environment Canada has indicated "acceptance as appropriate" of Ducks Unlimited's pooling and deeming system, therefore allowing the auditor's disclaimer about Ducks Unlimited to become a non-issue. This has been reviewed by Environment Canada's Finance and Audit and Evaluation branches.)

18. URL to Recipient's Site: www.natureconservancy.ca/site/PageServer

1. Name of Recipient: Canadian Foundation for Climate and Atmospheric Sciences

2. Start Date: February 2000

3. End Date: March 2011

4. Total Funding: $110 million (a one-time $60 million grant to be disbursed over six years was received in 2001; a second grant of $50 million to be disbursed by the end of March 2011 was received in 2004)

5. Description: To invest strategically in excellent university-based research in climate and atmospheric sciences to do the following:

• provide relevant scientific information to support federal policymaking;
• generate better knowledge of climate change and its impacts on the natural environment;
• provide results to help Canada respond to its international environmental commitments; and
• ensure a supply of skilled human resources to meet future environmental challenges.

6. Strategic Outcome(s): Weather and environmental predictions and services reduce risks and contribute to the well-being of Canadians

7. Summary of Results Achieved by the Recipient: In 2008-2009, the Foundation assessed 73 requests for short-term research projects and nine requests for network supplements. It funded 29 projects for two years, for an application success rate of 40 percent. Seven network supplements were approved, to enhance the outreach, research integration and coordination, and data management and communications activities of existing networks. The competition addressed priorities outlined in the Government's Science and Technology Strategy, Mobilizing Science and Technology to Canada's Advantage, and other federal policy documents. The competition also encouraged interdisciplinary projects associated with northern climate, water resources, extreme weather, ice and snow, and air quality. In accordance with the Foundation's communications strategy, staff worked with university offices to optimize publicity on grants.

($ millions)

14. Program Activity:	8. Actual Spending 2006-07	9. Actual Spending 2007-08	10. Planned Spending 2008-09	11. Total Authorities 2008-09	12. Actual Spending 2008-09	13. Variance(s)
Improved knowledge and information on weather and environmental conditions influences decision-making	-	-	-	-	-	-
Totals may differ between and within tables due to rounding of figures.

15. Comments on Variance(s): N/A

16. Significant Evaluation Findings by the Recipient During the Reporting Year and Future Plan: Mandatory evaluation of the Foundation is planned for 2010.

17. Significant Audit Findings by the Recipient During the Reporting Year and Future Plan: The Foundation tracks the progress, management and outputs of networks and projects through meetings, reports and audits. During 2008, the Foundation received independent performance audit reports on one project and one network, and commissioned two more.

18. URL to Recipient's Site: www.cfcas.org/

1. Name of Recipient: Clayoquot Biosphere Trust

2. Start Date: February 2000

3. End Date: In perpetuity

4. Total Funding: $12 million (Environment Canada does not report on the financial activities of the Trust.)

5. Description: To create an endowment fund for the Clayoquot Biosphere Trust—the cornerstone of the Clayoquot Sound UNESCO Biosphere Reserve. The Trust will use the income from the endowment fund to support local research, education and training in the Biosphere Reserve region.

6. Strategic Outcome(s): Canada's natural capital is restored, conserved and enhanced

7. Summary of Results Achieved by the Recipient: Findings on the results achieved by the recipient are available in the recipient's Funded Project Archives.

($ millions)

14. Program Activity:	8. Actual Spending 2006-07	9. Actual Spending 2007-08	10. Planned Spending 2008-09	11. Total Authorities 2008-09	12. Actual Spending 2008-09	13. Variance(s)
Canadians adopt approaches that ensure the sustainable use and management of natural capital and working landscapes	-	-	-	-	-	-
Totals may differ between and within tables due to rounding of figures.

15. Comments on Variance(s): The Fund is administered by the Trust

16. Significant Evaluation Findings by the Recipient During the Reporting Year and Future Plan:

• Trust core priorities were identified and reaffirmed during this reporting period to increase the Trust's overall focus: Connecting People and Place, a Biosphere Centre and Practising Sustainability. Signature projects were identified in relation to specific priorities.
• The Trust secured two funding agreements as a result of intensified fund development efforts.
• Evaluations of community events and initiatives supported by the Trust over this period indicated a high level of community awareness of the Trust and satisfaction with activities undertaken.
• Changes to internal policy and procedures were introduced to address perceived deficits in project tracking and reporting processes, resulting in more accountability and efficiencies.

17. Significant Audit Findings by the Recipient During the Reporting Year and Future Plan:

• Erosion of the Trust's principal as a result of poor market performance and fund withdrawals has resulted in plans for significant reduction in operating budgets and intensified revenue generation. The Clayoquot Biosphere Trust Society, which is required under the Funding Agreement to maintain the original value of the Trust, as adjusted using the Canadian Consumer Price Index, is taking steps to rectify the situation.
• Canada Revenue Agency revoked the Trust’s charitable status, which meant the Trust no longer complied with the Funding Agreement. The Trust appealed the Canada Revenue Agency decision and proposed revisions to the CBT’s Constitution to clarify the purpose and activities of the Society and assist with the reinstatement of charitable status. The Society’s Board of Directors voted to make the changes and was subsequently advised that Canada Revenue Agency has retroactively reinstated the Society’s charitable status based on these changes. 

18. URL to Recipient's Site: www.clayoquotbiosphere.org/