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2008-09
Departmental Performance Report



Natural Resources Canada






Supplementary Information (Tables)






Table of Contents




Table 1: Sources of Respendable and Non-Respendable Revenues by Program Activity



Respendable Revenue
($ millions)
Program
Activity
Actual
2006‑07
Actual
2007‑08
2008-09
Main
Estimates
Planned
Revenue
Total
Authorities
Actual
 
Economic Opportunities for Natural Resources     3.0 3.0 3.0 2.2
Natural Resource Based Communities     0.5 0.5 0.5 0.9
Clean Energy     12.1 16.6 16.6 12.5
Ecosystem Risk Management     1.1 1.1 1.1 0.6
Adapting to a Changing Climate and Hazard Risk Management     5.5 5.5 5.5 5.6
Natural Resource and Landmass Knowledge for Canadians     2.3 2.3 2.3 1.8
Geomatics Revolving Fund     1.9 1.9 1.9 3.9
Earth Sciences 13.5 6.0        
Energy 9.2 11.3        
Forest 1.4 1.2        
Minerals and Metals 7.0 7.8        
 
Total Respendable Revenue 31.1 26.3 26.4 30.9 30.9 27.5

 



Non-Respendable Revenue
($ millions)
Program
Activity
Actual
2006‑07
Actual
2007‑08
2008-09
Main
Estimates
Planned
Revenue
Total
Authorities
Actual
 
Economic Opportunities for Natural Resources     983.1 1082.2 2898.2 2898.2
Natural Resource Based Communities     0.0 0.0 0.4 0.4
Clean Energy     0.3 0.9 10.8 10.8
Ecosystem Risk Management     0.0 0.0 0.6 0.6
Adapting to a Changing Climate and Hazard Risk Management     0.0 0.9 2.8 2.8
Natural Resource and Landmass Knowledge for Canadians     0.2 0.2 1.4 1.4
Geomatics Revolving Fund       0.0 0.1 0.1
Earth Sciences 3.3 3.0        
Energy 463.4 1887.6        
Forest 0.9 1.3        
Minerals and Metals 0.7 2.7        
 
Total Non-respendable Revenue 468.3 1894.6 983.6 1084.2 2914.3 2914.3


Table 2: User Fees and External Fees


User Fees


Fee Category: Explosives licence and inspection fees

Fee Type: Regulatory

Fee-setting Authority: Explosives Act

Date Last Modified: 1993

Performance Standards: 95% of the time, initial factory applications will be completed within 60 days of receipt of completed documentation; renewals and all other authorizations will be processed within 30 days of a complete request.

Performance Results: Licensing turnaround times have been acceptable to stakeholders. Results indicate the performance standards were met or exceeded 95% of the time.



($ thousands)
  2008-2009 2009-2010 2010-2011 2011-2012
Forecast Revenue 1200 2200 2200 2200
Actual Revenue 472 Not Applicable Not Applicable Not Applicable
Estimated Full Cost 4092* 4636* 4767* 4900*

*excluding PSAT



Fee Category: Seismic data

Fee Type: Optional

Fee-setting Authority: Resources and Technical Surveys Act

Date Last Modified: 2004

Performance Standards: For provision of accurate location and magnitude of strong earthquakes in Canada, turnaround time is normally within 2 hours during working hours and within 4 hours outside of working hours. Preliminary confirmation is normally available to clients within 15 minutes during normal working hours and on our Web site.
For all other requests for standard seismic data, turnaround time is within five working days. Complex requests are negotiated with the client.

Performance Results: Service standards are reviewed annually (inquiries are recorded) – results indicate greater than 95% compliance with standards.



($ thousands)
  2008-2009 2009-2010 2010-2011 2011-2012
Forecast Revenue 700 700 700 700
Actual Revenue 765 Not Applicable Not Applicable Not Applicable
Estimated Full Cost 765 700 700 700



Fee Category: Map products

Fee Type: Optional

Fee-setting Authority: Resources and Technical Surveys Act, Canada Land Surveys Act

Date Last Modified: 2004

Performance Standards: National Topographic System and Atlas of Canada maps – NRCan sells maps on a wholesale basis from the Canada Map Office to a limited distribution network, and service standards reflect this.

Response time for information requests is two working days. Order processing time: the CMO will strive to fill orders received from the RDC within five (5) working days (excluding Saturdays, Sundays and statutory holidays in the Province of Ontario), upon approved credit and provided account is in good standing. Hours of operation, 08:30 – 16:30 EST.

Performance Results: The service standard of five working days is met 95% or the time. The Centre for Topographic Information of the Mapping Services Branch is certified ISO 9001:2000, hence undergoes regular management review of quality objectives, discrepancy reporting processes, and client consultation. Performance issues are addressed through ISO Quality Objectives which are updated each year to address issues that may arise.

Aggregate annual data is available on request.



($ thousands)
  2008-2009 2009-2010 2010-2011 2011-2012
Forecast Revenue 500 250 250 250
Actual Revenue 219 Not Applicable Not Applicable Not Applicable
Estimated Full Cost 219 250 250 250



Fee Category: ISO non-destructive testing

Fee Type: Optional

Fee-setting Authority: Resources and Technical Surveys Act

Date Last Modified: 2002

Performance Standards: Two weeks for processing of a candidate's application form. This period is advertised on application forms 'Instructions for Candidates' available in hard copy or electronically from the NDT Web site. All candidates have this information before applying. *Note: Assessment of foreign applications or unusual training/experience situations may require more time.

Examination results are usually available three weeks from the date of examination. This period is clearly specified in 'letter of approval' issued to the candidate to permit him/her to challenge an examination.

Performance Results: The progress of each client application is recorded and tracked throughout the process – date of receipt, date of review, date of written responses. While performance has not been formally aggregated to summarize performance against service standards, the absence of stakeholder complaints indicates satisfaction that the published delivery standards are being met.

In 2006, processing of all applications in all methods became a work function of one person, significantly reducing processing time previously required.



($ thousands)
  2008-2009 2009-2010 2010-2011 2011-2012
Forecast Revenue 1200 1300 1400 1500
Actual Revenue 1236 Not Applicable Not Applicable Not Applicable
Estimated Full Cost 1236 1300 1400 1500



Fee Category: Air Photo Products

Fee Type: Optional

Fee-setting Authority: Resources and Technical Surveys Act

Date Last Modified: 2004

Performance Standards: Aerial Photography – Order processing time by the National Air Photo Library is ten working days, priority service five working days; response time for information requests of ten working days 80% of the time; production error rate of 2% or less; hours of operation, 08:30 – 16:30 EST.

Performance Results: The service standard is met 80% of the time. Performance issues are addressed through ISO Quality Objectives which are updated each year to address issues that arise.

Performance results are monitored continuously. Aggregate annual data is available on request.



($ thousands)
  2008-2009 2009-2010 2010-2011 2011-2012
Forecast Revenue 350 400 400 400
Actual Revenue 428 Not Applicable Not Applicable Not Applicable
Estimated Full Cost 428 400 400 400



Fee Category: Fees charged for the processing of access requests filed under the Access to Information Act

Fee Type: Regulatory

Fee-setting Authority: Access to Information Act

Date Last Modified: 1992

Performance Standards: Response provided within 30 days following receipt of request; the response time may be extended pursuant to section 9 of the ATIA. Notice of extension to be sent within 30 days after receipt of request.

The Access to Information Act provides fuller details: http://laws.justice.gc.ca/en/A-1/218072.html.

Performance Results: Met prescribed standards 91.5% of the time.



($ thousands)
  2008-2009 2009-2010 2010-2011 2011-2012
Forecast Revenue 5 5 5 5
Actual Revenue 3 Not Applicable Not Applicable Not Applicable
Estimated Full Cost  663  663  663  663



Fee Category: Digital Topographic Data (formerly Subscription data)

Fee Type: Optional

Fee-setting Authority: Resources and Technical Surveys Act

Date Last Modified: 2004

Performance Standards: National Topographic Data Base (NTDB), CanVec and others – Response time for general information requests is two working days during business hours. Availability of web-site is 24-7 90% of the time, monitored monthly.

Performance Results: Web-site was available 24-7 more than 95% of the time. Performance results are monitored continuously (on-line surveys). Target 95% client satisfaction. Actual satisfaction level for the product quality and delivery is at 89% – website improvements will be made to help clients and improve the satisfaction level.

Complaints acknowledged within two working days – and as per ISO procedures, corrective action is taken immediately. Performance results are monitored continuously.



($ thousands)
  2008-2009 2009-2010 2010-2011 2011-2012
Forecast Revenue 0 0 0 0
Actual Revenue 0 Not Applicable Not Applicable Not Applicable
Estimated Full Cost 0 0 0 0



Fee Category: Other Products

Fee Type: Optional

Fee-setting Authority: Resources and Technical Surveys Act

Date Last Modified: 2004

Performance Standards: For aeromagnetic, radiometric and gravity data, the Geoscience Data Centre (GDC) of ESS provides maximum 10 day turn-around on external requests for data (average turnaround for a standard request is one day). We also provide on-line access through the Geoscience Data Repository for Geophysical and Geochemical Data (GDRGG). For more info on service standards see the Web site.

Performance Results: Performance is aggregated against standards annually. In 2008‑09 100% of requests are in compliance with standards.

The number of inquires has dropped significantly since data has been made available free of charge through the GDRGG. Typically there are 10 to 20 requests for information made to the GDC annually and 10,000 to 15,000 downloads from the online service annually. The GDRGG is available 24/7, 365 days per year.



($ thousands)
  2008-2009 2009-2010 2010-2011 2011-2012
Forecast Revenue 200 200 80 80
Actual Revenue 150 Not Applicable Not Applicable Not Applicable
Estimated Full Cost 150 200 80 80


External Fees



External Fee Service Standard Performance Result Stakeholder Consultation
Explosives licence and inspection fees 95% of the time, initial factory applications will be completed within 60 days of receipt of completed documentation; renewals and all other authorizations will be processed within 30 days of a complete request. Licensing turnaround times have been acceptable to stakeholders. Results indicate the performance standards were met or exceeded 95% of the time. Stakeholder groups are in agreement with licensing and authorization service standards. No formal complaints to this proposal have been received.
Seismic data

For provision of accurate location and magnitude of strong earthquakes in Canada, turnaround time is normally within 2 hours during working hours and within 4 hours outside of working hours. Preliminary confirmation is normally available to clients within 15 minutes during normal working hours and on our Web site.

For all other requests for standard seismic data, turnaround time is within five working days. Complex requests are negotiated with the client.

Service standards are reviewed annually (inquiries are recorded) – results indicate greater than 95% compliance with standards. None planned at present (regular consultation provided through the Lithoprobe Seismic Processing Facility in Calgary). Client feedback on service expectations encouraged through questionnaire that accompanies responses to data requests.
Map products

National Topographic System and Atlas of Canada maps – NRCan sells maps on a wholesale basis from the Canada Map Office to a limited distribution network, and service standards reflect this.

Response time for information requests is two working days. Order processing time: the CMO will strive to fill orders received from the RDC within five (5) working days (excluding Saturdays, Sundays and statutory holidays in the Province of Ontario), upon approved credit and provided account is in good standing. Hours of operation, 08:30 – 16:30 EST.

Service standard of five working days is met 95% of the time. Service standards are included in the annual management review of Quality Objectives under ISO 9001:2000. ISO Quality Objectives are updated each year to address issues as they arise. Regular discussions and meetings are held with stakeholders. Service standards are reviewed continuously and included as part of the Discrepancy Management Reports (DMRs). Ongoing client and service feedback are used to ensure constant improvement as part of ISO 9001 quality system.
ISO non-destructive testing

1 - Two weeks for processing of a candidate's application form. This period is advertised on application forms 'Instructions for Candidates' available in hard copy or electronically from the NDT Web site. All candidates have this information before applying. *Note: Assessment of foreign applications or unusual training/experience situations may require more time.

2 - Examination results are usually available three weeks from the date of examination. This period is clearly specified in 'letter of approval' issued to the candidate to permit him/her to challenge an examination.

1 - The progress of each client application is recorded and tracked throughout the process – date of receipt, date of review, date of written responses. While performance has not been formally aggregated to summarize performance against service standards, the absence of stakeholder complaints indicates satisfaction that the published delivery standards are being met 98% of the time. Fee adjustments are presented and negotiated with the 12 member advisory body of stakeholders. Previously the agreed price structure associated with fees for required services and reports is put into effect and not changed for 3 years. The stakeholders like the stability in knowing what they will be paying for the next 3 years. The revised plan is to move to annual fee adjustments based on actual costs. From January through June 2006, extensive consultations on exam fees were held with 8 exam centres, the advisory board, and the union representing 2,000 clients. The objective of these consultations was to isolate cost drivers in order to derive a formula driven fee structure.
Air Photo products Aerial Photography – Order processing time by the National Air Photo Library is ten working days, priority service five working days; response time for information requests of ten working days 80% of the time; production error rate of 2% or less; hours of operation, 08:30 – 16:30 EST. Service standard of ten working days is met 80% of the time. Service standards are included in annual management review of Quality Objectives under ISO 9001:2000. ISO Quality Objectives are updated each year to address issues as they arise. Major survey completed in 2004. Initated needs requirement based on sales statistics to determine future directions for improvement. Service standards are reviewed continuously and included as part of the Discrepancy Management Reports (DMRs). Ongoing client and service feedback are used to ensure constant improvement as part of ISO 9001 quality system.
Fees charged for the processing of access requests filed under the Access to Information Act

Response provided within 30 days following receipt of request; the response time may be extended pursuant to section 9 of the ATIA. Notice of extension to be sent within 30 days after receipt of request.

The Access to Information Act provides fuller details: http://laws.justice.gc.ca/en/A-1/218072.html.

Met prescribed standards 91.5% of the time The service standard is established by the Access to Information Act and the Access to Information Regulations. Consultations with stakeholders were undertaken by the Department of Justice and the Treasury Board Secretariat for amendments done in 1986 and 1992.
Digital Topographic Data (formerly Subscription Data) National Topographic Data Base (NTDB), Canvec and others – Response time for general information requests is two working days during business hours. Availability of Web site is 24-7 90% of the time, monitored monthly.

Web site was available 24-7 90% of the time. Performance results are monitored continuously (on-line surveys). Target 95% client satisfaction. Actual satisfaction level for the product quality and delivery is at 89% – Web site improvements will be made to help clients and improve the satisfaction level.

Complaints acknowledged within two working days – and as per ISO procedures, corrective action is taken immediately.

Client consultation is ongoing – part of regular ISO process.
Other products For aeromagnetic, radiometric and gravity data, the Geoscience Data Centre (GDC) of ESS provides maximum 10 day turn-around on external requests for data (average turnaround for a standard request is one day). We also provide on-line access through the Geoscience Data Repository for Geophysical and Geochemical Data (GDRGG). For more info on service standards see the Web site.

Performance is aggregated against standards annually. In 2008-09 100% of requests are in compliance with standards.

The number of inquires has dropped significantly since data has been made available free of charge through the GDRGG. Typically there are 10 to 20 requests for information made to the GDC annually and 10,000 to 15,000 downloads from the online service annually. The GDRGG is available 24/7, 365 days per year.

Client consultation is performed on an ongoing basis. All web-based clients are provided with a client satisfaction questionnaire including a request for suggestions for improvement. Advent of the GDRGG (web-based access) has significantly reduced requests via the GDC.

Other Information

The Explosives Regulatory Division (ERD) remains committed to managing its regulatory activities in an effective and efficient manner to ensure public and worker health and safety while protecting Canada's explosives supply from criminal and terrorist interests. ERD is committed to delivering 95% of decisions on requests for explosives product authorizations, importation permits, display fireworks and pyrotechnics certificates, user magazine licences, vendor magazine licences, manufacturing certificates and factory licence renewals within 30 days of the receipt of complete applications and all necessary documentation. In the case of initial applications for a factory licence where the review is a more time consuming process, ERD is committed to delivering 95% of decisions within 60 days of the receipt of complete applications and all necessary documentation.

The proposed performance standards reflect a reasonable amount of time that could be taken to complete a regulatory activity (e.g., the amount of time required to review and make a decision regarding an application for a license). The standards identify an intent to meet the standard at least 95% of the time. This reflects the fact than on occasion, a regulatory decision may be delayed due to circumstances beyond ERD control and that on occasion, spikes in workload may prevent all decisions to be reached within the defined timeframe.



Table 3: Transfer Payment Programs Exceeding $5 million/year



Name of Transfer Payment Program: Contributions in support of the Technology and Innovation Initiative

Start date: October 10, 2003

End date: March 31, 2009

Description: To contribute to the objectives of Canada's climate change agenda by reducing long-term greenhouse gas (GHG) emissions by means of longer-term advanced technologies and enhanced innovative capacity through research, development and demonstration.

Strategic Outcome: Canada is a world leader on environmental responsibility in the development and use of natural resources.

Results Achieved:
Demonstration Component: The Technology Early Action Measures (TEAM) program was the demonstration component of the Technology & Innovation Initiative. The timeframe of the program, per the T&I Initiative, was from October 2003 to March 31, 2008. However, in December 2007, TEAM received Treasury Board approval for its Terms and Conditions to be extended for one additional year, namely for the 2008-09 fiscal year, in order to allow for the proper implementation of projects started in 2007-08. TEAM demonstration projects are typically multi-year, ranging from 1-5 years. The Climate Change Review had frozen activities in 2005-06, and as a result much of the TEAM funding for 2003-08 had been reprofiled to the 2007-08 fiscal year. The extension of the T&C's for 1 extra year, in 2008-09, allowed the TEAM program to avoid lapsing of a significant amount of G&C funds and more optimally implement demonstration projects over this timeframe. As a result, TEAM received approval to transfer $4.8M allocated to 8 projects to the 2008-09 fiscal year. Out of these 8 projects, 2 were terminated prematurely because proponents were unable to obtain the necessary partner financing to complete the projects. TEAM was able to reallocate $1.5M freed up from these 2 projects, out of the $4.8M for 2008-09, to 5 existing projects that were progressing well. In 2008-09, TEAM lapsed $110k in G&C funds.

During 2008-09, the TEAM program disbursed $4.7M in contributions (G&Cs), providing funding to 13 demonstration projects. G&C contributions typically represent 90% or more of TEAM's annual budget, and are the primary means of funding clean technology demonstration projects. Since inception in 1998, TEAM has funded 140 clean energy demonstration projects, many of which are flagship NRCan projects. Total G&C disbursements to date are approximately $130M, and total project value exceeds $1.1B. The following are highlights of funding activities in 2008-09:

  • TEAM project COM-097 Dockside Green (TEAM contribution $2.3M; total project cost $14M), which is a green real estate development of 26 residential and 7 commercial buildings with over 1200 residential suites, over a 15 acres site in downtown Victoria BC, completed construction of its biomass heating plant, funded by TEAM. This project sets an example and showcase to the world in how to implement sustainable, green, healthy real estate development. The project is only one of 9 projects in Canada to have received the LEED platinum certification and has received the highest LEED platinum rating of any project in the world. The project won an award from the American Institute of Architects as one of its Environmental Top Ten Green Projects for 2009. NRCan contributed at an early stage of the project (feasibility and engineering design), providing needed credibility, financial stability and momentum to the project. Via its GHG assessment process, NRCan helped the Dockside Green management team develop and quantify environmental benefits, in particular the benefits related to the integrated design and systems approach. NRCan focused its funding on the feasibility studies, business cases, and detailed engineering designs of the clean energy (biomass heat system, heat recovery) and water management systems, which are at the heart of the award winning real estate development design and the basis of the LEED platinum certification.
  • TEAM project COM-103 with the Solar Building Research Network was completed (TEAM contribution $1M, total project cost $2.6M). This is the first demonstration of its kind in the world – a combined solar electric and thermal system was integrated into the operations and building envelope of a large commercial building, the John Molson School of Business, at Concordia University in Montreal. This project marks a significant advance in the state-of-the art in attempting to reduce the environmental footprint of buildings. Canadians have developed capacity to further advance the combined heat and power solar technology and to implement its application in real world applications. The project helped strengthen Canadian solar technology companies that participated in the project, including Conserval and Day4Energy. This world leading technology has been featured on the Discovery Channel and will be also promoted at International Energy Agency working groups. The system has an estimated solar efficiency (utilization) of 60%.
  • TEAM project IND-146 Enhanced Joint Implementation of Vapour Extraction (JIVE) was completed (TEAM contribution $1M; total project cost $11.6M). The project significantly advanced knowledge of and demonstrated completely novel enhanced oil recovery techniques for use in the extraction of heavy oil, which have considerable lower environmental impact versus conventional heavy oil extraction techniques. This project, which is co-funded with SDTC, has now evolved and developed into a new Carbon Capture & Storage project funded by ecoENERGY Technology Initiative, as part of its $140M call for proposals for CCS projects. The new $3-4M ecoETI CCS project is with Husky Energy and is called Targeted R&DR&D Activities in CCS for Heavy Oil EOR. NRCan provided its funding at a critical stage of the project, after the SDTC-funded project had started and some problems in implementing the JIVE project had been identified. NRCan targeted its funding to the development of physical and mathematical models, which when used iteratively with data from field operations, could be used to progressively improve the EOR techniques under development. According to the PTRC, the models funded by TEAM are amongst the key elements which have led to the project's success.
  • TEAM project IND-155 Direct-Fired boiler gasification demonstration Project (with Nexterra Energy; TEAM contribution $1.7M; total project cost $7.4M) completed detailed engineering design and obtained funding. The project is a first in the pulp and paper industry. Nexterra's turnkey gasification system will convert locally sourced wood residue into clean burning "syngas" that will be fired directly into a boiler in place of natural gas. The Kruger installation will produce 40,000 lbs/hour of process steam and displace approximately 445,000 gigajoules (GJs) of natural gas annually. This is equivalent to the amount of natural gas used to heat 3,500 homes in Canada for a year. Displacing this amount of natural gas with syngas made from wood fuel will lower the mill's energy costs by millions of dollars a year, making the mill less reliant on fossil fuels. It will also reduce greenhouse gas emissions from the plant by more than 22,000 tonnes per year, the equivalent of removing nearly 5,500 cars off Canadian roads. Nexterra's direct fired gasification system is a platform technology that can be used in many industrial applications. Replicating Nexterra's technology at industrial sites in B.C. could result in an estimated 200,000 tonnes of greenhouse gas emission reductions in British Columbia annually by 2020. For this project, NRCan provided support at a critical time, especially given the difficulties experienced by the pulp and paper industry over the past 3 years, as well as the current economic crisis. NRCan stayed with the project even as the project partner and site location changed. NRCan's support, at the highest risk point of the project, was used to leverage additional funding that was needed for the project, from FPInnovations, the new BC ICE program, and Ethanol BC.
  • In 2008-09, TEAM continued to play a role in developing and providing internationally accepted standards (ISO) and tools, relating to the measurement and reporting of Greenhouse Gas emission reductions achieved in clean energy demonstration projects. In addition, TEAM continued its work in implementing qualitative assessments for air quality impacts from demonstration projects. TEAM also submitted a verification protocol to provide a method to audit GHG results; continued to work internationally to draft a guidance documentation for ISO standard 14065 on the accreditation of validation and verification bodies; and implemented an MOU with the Standards Council of Canada for creating a national system for the accreditation of verification bodies and a professional certification scheme for GHG validators, verifiers, and consultants.

Program Activity: Clean Energy
($ millions)
  Actual
Spending
2006-07
Actual
Spending
2007-08
Planned
Spending
2008-09
Total
Authorities
2008-09
Actual
Spending
2008-09
Variances
Total Grants            
Total Contributions 5.7 17.2 4.8 4.8 4.7 0.1
Total Other types of transfer payments            
Total Program Activity            

Comment(s) on Variance(s): lapsed at fiscal year end, as could not be reallocated to other projects

Audit completed or planned: Evaluation of TEAM, as a component of the Climate Change Action Fund http://www2cm.nrcan.gc.ca/nrcan/index_e.aspx?DetailID=392; TEAM was also one of the programs evaluated in the Examination of Federal Energy & Environmental S&T Investment (completed in 2006/07). TEAM has been actively working with NRCan's Strategic Knowledge and Evidence Branch on the new evaluations of Transportation & Built Environment that are in the planning stages for 2008-09.



Name of Transfer Payment Program: ecoENERGY for Biofuels

Start date: April 1, 2008

End date: March 31, 2017

Description: The ecoENERGY for Biofuels program supports the production of renewable alternatives to gasoline and diesel and encourages the development of a competitive domestic industry for renewable fuels. The program provides an operating incentive to facilities that produce renewable alternatives to gasoline and diesel in Canada.

ecoENERGY for Biofuels will invest up to $1.5 billion over nine years in support of biofuel production in Canada. Recipients will be entitled to receive incentives for up to seven consecutive years.

Strategic Outcome: Canada is a world-leader on environmental responsibility in the development and use of natural resources.

Results Achieved: In fiscal year 2008-2009, the program received 46 applications and signed 22 contribution agreements representing a total commitment of $938 million and a volume of 1.63 billion litres of biofuels.


Program Activity: Clean Energy
($ millions)
  Actual
Spending
2006-07
Actual
Spending
2007-08
Planned
Spending
2008-09
Total
Authorities
2008-09
Actual
Spending
2008-09
Variances
Total Grants            
Total Contributions     112.4 92.4 92.2 0.2
Total Other types of transfer payments            
Total Program Activity     112.4 92.4 92.2 0.2

Comment(s) on Variance(s):

Audit completed or planned:



Name of Transfer Payment Program: ecoENERGY for Renewable Heat Program

Start date: April 1, 2007

End date: March 31, 2011

Description: The program supports non-emitting renewable thermal energy technologies for space heating and cooling, and water heating though a mix of deployment contributions and industry capacity development activities.

Strategic Outcome: Canada is a world leader on environmental responsibility in the development and use of natural resources.

Results Achieved: As at March 16, 2009, 466 contribution agreements were signed for deployment of solar thermal systems in institutional, commercial and industrial sector. In addition, program signed 11 contribution agreements with collaborators to implement residential pilot projects for deployment of solar hot water units in homes.


Program Activity: Clean Energy
($ millions)
  Actual
Spending
2006-07
Actual
Spending
2007-08
Planned
Spending
2008-09
Total
Authorities
2008-09
Actual
Spending
2008-09
Variances
Total Grants            
Total Contributions 0.0 3.4 8.0 6.7 6.7 0.0
Total Other types of transfer payments            
Total Program Activity 0.0 3.4 8.0 6.7 6.7 0.0

Comment(s) on Variance(s): Installations under the Residential Pilot Program encountered regulatory barriers so funds were reprofiled to later years.

Audit completed or planned: Recipient audits on 12 Commercial Deployment Initiative projects underway.



Name of Transfer Payment Program: ecoENERGY for Renewable Power Program

Start date: April 1, 2007

End date: March 31, 2011

Description: The ecoENERGY for Renewable Power program offers a production incentive of 1 cent per kilowatt hour for ten years to eligible producers of electricity from low impact renewable power sources such as wind, low impact hydro, biomass, geothermal, photovoltaics and ocean energy.

Strategic Outcome: Canada is a world leader on environmental responsibility in the development and use of natural resources.

Results Achieved: In fiscal year 2008-2009 40 new contribution agreements were signed for about 1790 megawatts of capacity and contribution of approximately $597 million over ten years.


Program Activity: Clean Energy
($ millions)
  Actual
Spending
2006-07
Actual
Spending
2007-08
Planned
Spending
2008-09
Total
Authorities
2008-09
Actual
Spending
2008-09
Variances
Total Grants            
Total Contributions 0.0 16.0 49.3 36.3 30.2 6.1
Total Other types of transfer payments            
Total Program Activity 0.0 16.0 49.3 36.3 30.2 6.1

Comment(s) on Variance(s): The ecoENERGY Renewable Power Program had anticipated more projects built during 2008-2009. Some projects experienced commissioning delays, and others were cancelled due to difficulties in obtaining financing.

Audit completed or planned: During fiscal year 2008-2009, two financial audits of recipients were completed under the program.



Name of Transfer Payment Program: ecoENERGY Retrofit – Homes

Start date: April 1, 2007

End date: March 31, 2011

Description:

Announced as part of the suite of ecoENERGY initiatives, under the ecoENERGY Retrofit Program, ecoENERGY Retrofit Homes provides home and property owners with grants up to $5,000 per unit to offset the cost of making energy efficiency improvements. Small mixed-use buildings are also eligible as long as they meet the size requirements and 50% or more of the floor space is used as permanent residences. Property owners can qualify for federal grants by improving the energy efficiency of their homes, and reducing their home's impact on the environment.

The Government of Canada provides grants to owners of low-rise properties who complete energy efficiency retrofits based on the energy advisors' recommendations. Owners of rental properties may also qualify for a grant. The grant amount is based on carrying out energy efficiency retrofits such as increasing attic insulation or replacing a gas furnace with a qualified ENERGY STAR model. Only homes that have undergone a residential energy efficiency evaluation by an NRCan-licensed advisor are eligible for grants.

As part of the Government of Canada's Economic Action Plan, the ecoENERGY Retrofit – Homes program has been expanded to help 200,000 more homeowners cover the cost of making energy-efficiency retrofits to their homes. The time-limited expansion includes grant-level increases of 25 percent and a $300-million increase in funding over two years.

Strategic Outcome: Canada is a world-leader on environmental responsibility in the development and use of natural resources.

Results Achieved: Grants to 94,000 homeowners have been made to support energy efficiency upgrades that will reduce their annual energy consumption. Grants averaged $1,112 per household. All regions of Canada, except one province and one territory, have matching programs that provide homeowners with seamless access to both orders of government support for home retrofits.


Program Activity: Clean Energy
($ millions)
  Actual
Spending
2006-07
Actual
Spending
2007-08
Planned
Spending
2008-09
Total
Authorities
2008-09
Actual
Spending
2008-09
Variances
Total Grants   12.0 46.0 79.0 89.7 (10.7)
Total Contributions            
Total Other types of transfer payments            
Total Program Activity   12.0 46.0 79.0 89.7 (10.7)

Comment(s) on Variance(s): The accelerated success of the ecoENERGY Retrofit – Homes program resulted in eligible claims exceeding authority provisions by $10.7 million. Subsequent year authorities will be adjusted downward by the $10.7 million variance to offset the 2008-2009 over expenditure.

Audit completed or planned: An audit of the ecoENERGY Retrofit – Homes program will take place in 2009/10.



Name of Transfer Payment Program: ecoENERGY Technology Initiative

Start date: April 1, 2007

End date: March 31, 2011

Description: The ecoENERGY Technology Initiative is a $230-million investment in science and technology by the Government of Canada to accelerate the development and market readiness of technology solutions in clean energy. This initiative is directed towards increasing clean energy supplies, reducing energy waste, and reducing pollution from conventional energy.

Strategic Outcome: Canada is a world leader on environmental responsibility in the development and use of natural resources.

Results Achieved: Completion of call for proposals process, followed by proposal assessment and due diligence for large scale projects in carbon capture and storage (CCS) completed. Eight projects selected (in BC, Alberta and Saskatchewan), and negotiations for contribution agreements begun, with projects to start in 2009-10.

Significant progress in broad range of R&D projects in the areas of low emission industrial processes, energy efficient built environment, clean transportation systems, distributed power.


Program Activity: Clean Energy
($ millions)
  Actual
Spending
2006-07
Actual
Spending
2007-08
Planned
Spending
2008-09
Total
Authorities
2008-09
Actual
Spending
2008-09
Variances
Total Grants           0.0
Total Contributions   0.7 24.9 13.6 13.6 0.0
Total Other types of transfer payments            
Total Program Activity   0.7 24.9 13.6 13.6 0.0

Comment(s) on Variance(s):

Audit completed or planned: The Initiative will be evaluated according to NRCan's evaluation plan.

Recipient audits will be undertaken as required under the RBAF for the initiative.



Name of Transfer Payment Program: Federal Response to the Mountain Pine Beetle Infestation in BC

Start date: 2006-2007

End date: 2009-2010

Description: The Program is designed to slow the eastward spread of the Mountain Pine Beetle (MPB), recover economic value from beetle-killed trees, and to reduce the threat to public safety in communities and the impacts to forest resources in areas affected by the infestation.

Strategic Outcome: Natural resource sectors are internationally competitive, economically productive, and contribute to the social well-being of Canadians.

Results Achieved:
In 2006-07, the Government of Canada announced the $200-million Federal Response to the Mountain Pine Beetle Infestation program. NRCan administers $100M, Transport Canada $56M and Western Economic Diversification $44M. Under this Program, NRCan has worked closely with BC and AB officials to deliver a comprehensive, integrated strategy in response to the beetle infestation. Additional information about this program can be found by visiting http://mpb.cfs.nrcan.gc.ca.

Slowing the Spread
One objective of the federal MPB program is to slow the eastward spread of the beetle outbreak. NRCan worked with scientists from BC and AB to complete a comprehensive assessment of the pine beetle threat to the boreal and eastern pine ecosystems. This assessment contributed to setting spatial priorities for federal funding in beetle detection and control. In 2008-09, over 1.3 million hectares of pine forests were scheduled to be surveyed for active beetle infestation; over 28 thousand beetle-infested trees were planned to be felled and burned; and 1 thousand hectares are identified for prescribed burning to destroy resident beetle populations. Beetle control was undertaken on forestlands in the mountain national parks and the Dominion Coal Blocks in south-eastern BC in areas identified to complement the control activity on provincial forestlands

Recovering Economic Value
NRCan, working with BC agencies, continued delivery of the primary surveys on mineral and energy potential in the Bowser and Nechako Basins of the beetle zone in BC. Working with national sector research institutes and universities, the program enabled the completion of timely studies on:

  • the potential impacts of post-beetle timber management on future forests;
  • how to integrate post-beetle timber into established milling procedures and markets; and
  • the potential for bio-energy and alternative uses for the massive volume of beetle-killed timber.

Protecting Communities and Forest Resources
NRCan has also focused on mitigating post-beetle impacts on community safety and forest resource sustainability. The MPB impacts community safety through increased forest fire fuel loads and dead hazardous trees.

During 2008-09, the Program funded the removal of hazardous beetle-killed trees from school yards and assisted 12 communities in removing these trees from municipal lands; assisted 22 communities and districts in reducing post-beetle fire fuel loads; and assisted 64 First Nations with reducing fire fuel loads to their villages on Reserve lands. The Program requires and funds the completion of a professional forest fuel management plan as a precondition to any support for removing forest fuel loads. The fuel abatement activity is based on the national FireSmart program prescriptions.

NRCan also assisted regional and local economic diversification efforts in tourism by funding the removal of more than 28,000 beetle-killed trees at 128 recreation sites and 11 hiking trails. In addition, 56 archaeological impact assessments were completed.


Program Activity: Adapting to a Changing Climate and Hazard Risk Management
($ millions)
  Actual
Spending
2006-07
Actual
Spending
2007-08
Planned
Spending
2008-09
Total
Authorities
2008-09
Actual
Spending
2008-09
Variances
Total Grants            
Total Contributions 0.0 24.8 30.8 27.4 17.5 9.9
Total Other types of transfer payments            
Total Program Activity 0.0 24.8 30.8 27.4 17.5 9.9

Comment(s) on Variance(s): The variance between the total authorities and the actual spending is due to reprofiling per 2009-10 ARLU.

Audit completed or planned:
http://www.nrcan.gc.ca/dmo/aeb/aeb-rpts-2007-EV0702-e.htm
NRCan's Strategic Knowledge and Evidence Branch has the beetle program scheduled for evaluation in 09/10.

Recipient audit scheduled for 09/10. NRCan Audit completing audit of compliance of G&C spending with TB T&C's in 09/10.



Name of Transfer Payment Program: Forest Industry Long-Term Competitiveness Strategy – Expanding Market Opportunities

Start date: 2006-2007

End date: 2009-2010

Description: There are three initiatives in this program: the Canada Wood Export Program, the North American Wood First Initiative, and the Value to Wood Program. These initiatives aim to increase market opportunities for Canadian wood product producers through market development, branding, and technology development and transfer activities.

Canada Wood Export Program – The Canada Wood Export Program is a national market development program, supporting wood products associations in their efforts to expand offshore export opportunities for Canadian wood products in traditional and emerging markets. More information can be found at http://cfs.nrcan.gc.ca/subsite/canada-wood/home.

North American Wood First Initiative – North American Wood First will work in collaboration with wood products associations in North America, technical institutes, universities, provinces and American states, and support projects to increase the use of wood products in North American non-residential construction (schools, shopping centres, hospitals, etc.).

Value to Wood Program – The Value to Wood Program is a national research and technology transfer program with the purpose of enhancing the productivity and competitiveness of the value-added wood products industry. Additional information can be found at http://www.valuetowood.ca/html/english/index.php.

Strategic Outcome: Natural resource sectors are internationally competitive, economically productive, and contribute to the social well-being of Canadians.

Results Achieved:

Canada Wood Export Program
The Canada Wood Program has continued to develop offshore markets with offices in Shanghai, Beijing, Tokyo, Brussels, London and Seoul. The program has raised the profile of Canadian wood products in the above markets and influenced the development of residential construction codes and standards to accommodate wood use. In Japan, seismic testing of a full scale three-storey traditional post-and-beam house was completed. Shanghai approved the Canadian wood truss re-roofing system, while Korean standards were updated to allow the use of all species of Canadian structural lumber. Canadian wood products and expertise were also used in the reconstruction of public buildings in China devastated by earthquakes in May 2008. The program has also helped increase wood exports (particularly in China and Korea, where Canadian wood exports have increased by 612% and 177% respectively since 2001) and stimulated the establishment of foreign marketing agents for a number of major Canadian wood producers. As well, Canada Wood has provided the framework for Canada's forest sector to take a unified national approach to offshore market development.

North American Wood First Initiative
During 2008/09, the Wood First Program has generated approximately $40 million in new wood sales in North America. Through partners in Quebec, the program influenced the establishment of a 6-storey, 60,000 square foot wood-frame building, the tallest of its kind in Canada. In the United States, the Program has succeeded in convincing builders/clients/authorities to use wood in over 90 non-residential projects in California, the SE US and the mid west as well as reversing a long-standing ban on wood use in Arkansas schools.

Value to Wood Program
The Value to Wood Program, a national research and technology transfer program, funded 26 research projects to support the competitiveness of the value-added wood sector. Industry Advisors funded through the program provided technical assessments involving productivity improvements and cost reductions to over 300 value-added wood firms. These activities supported the competitiveness and productivity of the Canadian wood-manufacturing sector.


Program Activity: Economic Opportunities for Natural Resources
($ millions)
  Actual
Spending
2006-07
Actual
Spending
2007-08
Planned
Spending
2008-09
Total
Authorities
2008-09
Actual
Spending
2008-09
Variances
Total Grants            
Total Contributions 0.1 14.8 17.5 18.8 15.3 3.5
Total Other types of transfer payments            
Total Program Activity 0.1 14.8 17.5 18.8 15.3 3.5

Comment(s) on Variance(s): The variance between the total authorities and the actual spending is due to reprofiling per 2009-10 ARLU.

Audit completed or planned:



Name of Transfer Payment Program: Forest Industry Long-Term Competitiveness Strategy – Promoting Forest Innovation and Investment

Start date: 2006-2007

End date: 2009-2010

Description: There are three initiatives in this program: the consolidation of Canada's three forest research institutes, the creation of the Canadian Wood Fibre Centre, and investment in forest innovation. These measures will enhance economic opportunities for Canada's forest sector as a result of increased investment in forest innovation.

Institute Consolidation: FPInnovations – The consolidation of Canada's three forest research institutes (Forintek, FERIC and Paprican) along with NRCan's Canadian Wood Fibre Centre will provide greater efficiency, synergies and strength in innovation and R&D, and will facilitate speaking with a stronger common voice on forest sector issues. Referred to as FPInnovations, this merger will create the world's largest forest research institute. Additional information on FPInnovations can be found at http://www.fpinnovations.ca/.

Canadian Wood Fibre Centre – The Canadian Wood Fibre Centre (CWFC) is an NRCan initiative in collaboration with FPinnovations to increase the economic return from Canada's forest resources. Researchers within the CWFC will work in collaboration with researchers from FPInnovations, or wherever the expertise exists to increase the value of Canadian wood fibre. More information on CWFC can be found at http://cfs.nrcan.gc.ca/subsite/cwfc.

Investments in Forest Sector Innovation – The purpose of this initiative is to direct and harness the expertise of the newly consolidated FPInnovations – in close conjunction with provinces, industry, and academia – to implement new forest innovation investments in transformative technologies relevant to all segments of the forest sector.

Strategic Outcome: Natural resource sectors are internationally competitive, economically productive, and contribute to the social well-being of Canadians.

Results Achieved:

Institute Consolidation: FPInnovations

  • Human resource administrative capabilities have been aligned and integrated so as to provide the required expertise to meet project needs and to support administration of human resources (e.g. hiring policies, retention strategies, staff development).
  • Financial, project management, and procurement systems have been aligned and integrated to support management decision-making, as well as to provide appropriate and prudent support for operational transactions and basic accounting.
  • Legal and practical steps required in creating a new corporate entity and absorbing three existing entities have been completed. This includes all aspects from registration of legal names, logos, and other trademarks, to marketing and communications, transfer of properties and assets, and the very challenging issues of harmonizing pay scales and benefit packages, job descriptions, and pension funds.
  • Director and executive level management have been restructured to create a single, enterprise-wide management team. Governance and advisory bodies have been restructured to support a single Board of Directors that represents the interest of the entire forest sector.

Canadian Wood Fibre Centre

  • Knowledge has been generated to enhance the capacity to identify standing timber with desirable fibre attributes and to efficiently produce wood fibre with desirable attributes by developing innovative silvicultural methods, genetics and genomics techniques, and methods to forecast wood volume and quality responses at the tree and stand levels.
  • A knowledge exchange capacity of 30 Industrial Technology Advisors (Forintek Division); 9 Extension specialists (Feric Division); 7 Knowledge Transfer Specialists (CWFC) was created to ensure that the research results generated by the program were implemented to generate new and improved products and processes.

Transformative Technology Program

  • Research led to changes in the BC building code permitting 6 storey wood frame construction creating opportunities to use wood in novel applications.
  • A laboratory process to utilize nano crystalline cellulose (NCC) – a derivative from tree fibre – was developed to be used as an input in advanced lightweight high strength composite materials for potential use in the automotive and aerospace industries.
  • Demonstration that the lignin and hemi-cellulose components of wood can be converted into value-added products (e.g. the use of lignin as a substitute for black carbon in tires).
  • Successful laboratory trials in utilizing forest biomass to develop new bioproducts and energy conservation processes.
  • Production of new grades of margin-added fine paper utilizing Canadian thermo-mechanical pulp (TMP).

Program Activity: Economic Opportunities for Natural Resources
($ millions)
  Actual
Spending
2006-07
Actual
Spending
2007-08
Planned
Spending
2008-09
Total
Authorities
2008-09
Actual
Spending
2008-09
Variances
Total Grants            
Total Contributions 0.4 22.6 28.9 31.7 23.7 8.0
Total Other types of transfer payments            
Total Program Activity 0.4 22.6 28.9 31.7 23.7 8.0

Comment(s) on Variance(s): The variance between total authorities and the actual spending is due to reprofiling per 2009-10 ARLU.

Audit completed or planned:



Name of Transfer Payment Program: Grant to the University of Calgary for the Institute for Sustainable Energy, Environment and Economy (ISEEE)

Start date: March 25, 2008

End date: March 31, 2012

Description: Funding for ISEEE's Carbon Capture and Storage Research Group. Strategic research that will help to address outstanding issues blocking industry from making investment in carbon capture and storage.

Strategic Outcome: Canada is a world leader on environmental responsibility in the development and use of natural resources.

Results Achieved: As of March 15, 2009, ISEEE has allocated over $400,000 in funding to projects, helping to leverage an additional $1.5 million in funding from industry and other governments. Several projects are underway, with results from a few short-term projects already being reported.


Program Activity: Clean Energy
($ millions)
  Actual
Spending
2006-07
Actual
Spending
2007-08
Planned
Spending
2008-09
Total
Authorities
2008-09
Actual
Spending
2008-09
Variances
Total Grants     0.0 5.0 5.0 0.0
Total Contributions            
Total Other types of transfer payments            
Total Program Activity     0.0 5.0 5.0 0.0

Comment(s) on Variance(s):

Audit completed or planned:



Name of Transfer Payment Program: In support of the efficiency and alternative energy programs

Start date: April 1, 1997

End date: March 31, 2009

Description: This program provides contribution funding for a variety of energy efficiency and alternative energy initiatives.

Strategic Outcome: Environmental Responsibility – Canada is a world leader on environmental responsibility in the development and use of natural resources.

Results Achieved: Key performance information is provided in the DPR in Section II under the Clean Energy program activity. As well, more detailed reporting is provided in the 2008-2009 Report to Parliament under the Energy Efficiency Act, which will be tabled in Parliament in late 2009.


Program Activity: Clean Energy
($ millions)
  Actual
Spending
2006-07
Actual
Spending
2007-08
Planned
Spending
2008-09
Total
Authorities
2008-09
Actual
Spending
2008-09
Variances
Total Grants            
Total Contributions 53.9 11.2 9.6 7.5 7.4 0.1
Total Other types of transfer payments            
Total Program Activity 53.9 11.2 9.6 7.5 7.4 0.1

Comment(s) on Variance(s): Treasury Board sets no maximum authority for this program and because it is resourced from A- and B-based departmental funding, there is the possibility to increase spending when greater than anticipated interest and/or opportunities arise, as was the case this year.

Audit completed or planned:



Name of Transfer Payment Program: Newfoundland and Labrador Fiscal Equalization Offset Payments

Start date: 2002

End date: Statutory

Description: To make payments to the province to compensate for part of the reduction in fiscal equalization entitlements that would result from offshore revenues being included in the equalization program.

Strategic Outcome: Natural resource sectors are internationally competitive, economically productive, and contribute to the social well-being of Canadians.

Results Achieved: Payments were made to the province in accordance with the provisions of the Act.


Program Activity: Economic Opportunities for Natural Resources
($ millions)
  Actual
Spending
2006-07
Actual
Spending
2007-08
Planned
Spending
2008-09
Total
Authorities
2008-09
Actual
Spending
2008-09
Variances
Total Grants            
Total Contributions 109.8 188.6 0.0 556.7 556.7 0.0
Total Other types of transfer payments            
Total Program Activity 109.8 188.6 0.0 556.7 556.7 0.0

Comment(s) on Variance(s):

Audit completed or planned:



Name of Transfer Payment Program: Payments to the Newfoundland and Labrador Offshore Petroleum Resource Revenue Fund

Start date: 1987

End date: Statutory

Description: To make payments to the province equivalent to amounts received by Canada in relation to offshore activities in accordance with provisions of the Canada Newfoundland Atlantic Accord Implementation Act

Strategic Outcome: Natural resource sectors are internationally competitive, economically productive and contribute to the social well-being of Canadians.

Results Achieved: Payments were made to the province in accordance with the provisions of the Act.


Program Activity: Economic Opportunities for Natural Resources
($ millions)
  Actual
Spending
2006-07
Actual
Spending
2007-08
Planned
Spending
2008-09
Total
Authorities
2008-09
Actual
Spending
2008-09
Variances
Total Grants            
Total Contributions 313.4 1,701.0 670.8 2,351.0 2,351.0 0.0
Total Other types of transfer payments            
Total Program Activity 313.4 1,701.0 670.8 2,351.0 2,351.0 0.0

Comment(s) on Variance(s):

Audit completed or planned:



Name of Transfer Payment Program: Payments to the Nova Scotia Offshore Revenue Account

Start date: 1993

End date: Statutory

Description: To make payments to the province equivalent to amounts received by Canada in relation to offshore activities in accordance with provisions of the Canada Nova Scotia Offshore Petroleum Resource Accord Implementation Act.

Strategic Outcome: Natural resource sectors are internationally competitive, economically productive and contribute to the social well-being of Canadians.

Results Achieved: Payments were made to the province in accordance with the provisions of the Act.


Program Activity: Economic Opportunities for Natural Resources
($ millions)
  Actual
Spending
2006-07
Actual
Spending
2007-08
Planned
Spending
2008-09
Total
Authorities
2008-09
Actual
Spending
2008-09
Variances
Total Grants            
Total Contributions 275.4 493.2 407.3 577.4 577.4 0.0
Total Other types of transfer payments            
Total Program Activity 275.4 493.2 407.3 577.4 577.4 0.0

Comment(s) on Variance(s):

Audit completed or planned:



Name of Transfer Payment Program: Wind Power Production Incentive Program

Start date: April 1, 2002

End date: March 31, 2007

Description: The WPPI Program was set up to help establish wind energy as a full-fledged competitor in the electricity market by providing – over a period of ten years – a financial incentive of about 1 cent per each kilowatt-hour produced from the installation of 1,000 MW of new wind power capacity in Canada by 2007. The Government of Canada is to provide – over a 10-year period – an incentive averaging 1 cent per each kilowatt-hour produced from a qualifying wind energy project.

Strategic Outcome: Canada is a world leader on environmental responsibility in the development and use of natural resources.

Results Achieved: At year end, 22 wind farms were in operation representing 924 megawatts of new wind energy capacity in Canada and about $315 million in contribution funding over 14 years.


Program Activity: Clean Energy
($ millions)
  Actual
Spending
2006-07
Actual
Spending
2007-08
Planned
Spending
2008-09
Total
Authorities
2008-09
Actual
Spending
2008-09
Variances
Total Grants            
Total Contributions 24.9 29.3 36.9 36.9 29.3 7.6
Total Other types of transfer payments            
Total Program Activity 24.9 29.3 36.9 36.9 29.3 7.6

Comment(s) on Variance(s): Wind farms supported under the program had lower than expected production numbers resulting in reduced obligations/lower payments to producers under the provisions of agreements.

Audit completed or planned: During 2008-2009, three audits of recipients were completed under the program.



Table 4: Up-Front Multi-Year Funding



Name of Recipient: Federation of Canadian Municipalities' (FCM) Green Municipal Fund (GMF)

Start Date: Budget 2000

End Date: In perpetuity

Total Funding: $550M*

Description:

The Government of Canada endowed the Federation of Canadian Municipalities (FCM), a non-profit organization, with $550 million* to establish the Green Municipal Fund (GMF) to provide a long-term, sustainable financing for municipal governments and their partners. The GMF invests in plans, studies and projects that provide the best examples of municipal leadership in sustainable development and that can be replicated in other Canadian communities.

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 the quality of life of Canadians by reducing greenhouse gas (GHG) emissions, improving local air, water and soil quality and promoting renewable energy by supporting environmental studies and projects within the municipal sector. Additional considerations include the potential for economic and/or social benefit.

Under the GMF agreement, the Government of Canada (represented by NRCan and Environment Canada) participates in governance of this revolving fund, along with representatives from the public and private sectors, including municipal officials and technical experts, through a Peer Review Committee and an advisory Council. The FCM Board of Directors approves projects based on the Council's recommendations.

*NRCan's share is $275M

Strategic Outcome(s): Canada is a world leader on environmental responsibility in the development and use of natural resources.

Summary of Results Achieved by the Recipient: As of March 31, 2009, the GMF had approved over $402 million for 735 plans, studies and projects with a total project value of $2.6 billion.


Program Activity: Clean Energy
($ millions)
Actual
Spending
2006-07
Actual
Spending
2007-08
Planned
Spending
2008-09
Total
Authorities
2008-09
Actual
Spending
2008-09
Variance(s)
0.0 0.0 0.0 0.0 0.0 0.0

Comments on Variance(s):

Significant Evaluation findings by the recipient during the reporting year and future plan:

Significant Audit findings by the recipient during the reporting year and future plan:

URL to Recipient's Site: http://sustainablecommunities.fcm.ca

URL to Recipient's Annual Report: http://sustainablecommunities.fcm.ca/About_Us/Annual_Reports



Name of Recipient: Sustainable Development Technology Canada (SDTC)

Start Date: April 2002

End Date: June 2015

Total Funding: $550 million

Description: To stimulate the development and demonstration of Canadian technologies aimed at climate change, clean air, clean water and clean soil.

Strategic Outcome(s): Canada is a world leader on environmental responsibility in the development and use of natural resources

Summary of Results Achieved by the Recipient: (within departmental overall plans):

Since 2001, SDTC's mandate has been expanded twice, and the foundation now manages two separate funds. The original fund, called the Clean Tech Fund, received a total federal endowment of $550M to provide funding for the development and demonstration of technologies focussing on climate change, clean air, water and soil (of which at least $50 million will be directed at hydrogen technologies and $50 million at clean fossil fuel projects). In 2007, a new $500M NextGen Biofuels Fund was established to provide capital support for next-generation renewable fuel facilities, reported separately.

NRCan is not responsible for reporting specifically on SDTC progress and results. However, as the designated minister under the SDTC Act, the Minister of NRCan tables the SDTC annual report in Parliament. This report is available at the SDTC website at http://www.sdtc.ca/en/index.htm. The following is a general summary of SDTC accomplishments. Further details will be available once the 2008 Annual Report is published.

To date, the SD Tech Fund has allocated $376 M in funds towards 154 projects. The fund has dispersed $126 M and to date 24 have been completed. The Latest information on projects is available from the 2008 Annual Report that can be found on its website per the link below.


Program Activity: Clean Energy**
($ millions)
Actual
Spending
2006-07
Actual
Spending
2007-08
Planned
Spending
2008-09
Total
Authorities
2008-09
Actual
Spending
2008-09
Variance(s)
0.0 0.0 0.0 0.0 0.0 0.0

Comments on Variance(s):

Significant Evaluation findings by the recipient during the reporting year and future plan:

Significant Audit findings by the recipient during the reporting year and future plan:

URL to Recipient's Site: http://www.sdtc.ca/en/index.htm

URL to Recipient's Annual Report: http://www.sdtc.ca/en/news/annual_reports.htm

** NRCan share only



Name of Recipient: Sustainable Development Technology Canada (SDTC) for the NextGen Biofuels Fund™

Start Date: April 1, 2007

End Date: Agreement ends Sept 30, 2027; last disbursement of funds to SDTC by March 31, 2015

Total Funding: $500M ***

Description:

SDTC is managing the NextGen Biofuels Fund™, which will support up to 40% of eligible project costs to a maximum of $200M per project for the establishment of first-of-kind, large-scale demonstration next-generation renewable fuel production facilities to encourage the future sustainability and success of renewable fuels. Next-generation renewable fuels are derived from non-traditional renewable feedstocks, such as forest biomass, fast-growing grasses, and agricultural residues, and are produced with non-conventional conversion technologies.

Since next-generation technologies are capital equipment intensive, they constitute a greater debt financing risk. The support provided by the NextGen Biofuels Fund™ will encourage the retention and growth of technology expertise and innovation capacity for next-generation renewable fuels production in Canada.

Of the $500M in total funding, $200M is statutory and the remaining $300M is appropriated funding.

*** The funding is equally divided between NRCan and Environment Canada.

Strategic Outcome(s): Canada is a world leader on environmental responsibility in the development and use of natural resources.

Summary of Results Achieved by the Recipient:

SDTC Corporate Plans for each year released in October of preceding year. Executive summaries are posted on the website below.

To date, SDTC has received one formal Application for Funding (AFF) under the NextGen Biofuels Fund (NGBF). At this time SDTC is tracking approximately 100 companies as potential applicants both from Canada and abroad. Of these, four have expressed a strong interest in submitting an application in 2009.

The NextGen Biofuels Fund adopted a Project Assurance Process based on best practices used by multi-national companies. From end to end, there are seven phases and five decision gates. The NGBF also assembled a roster of biofuels Experts to assist with the in-depth due diligence exercises required to assess applications for funding. A Project Review Committee was also created in order to support the review of applications for funding. The SDTC Board of Directors approved the NextGen Biofuels Fund Evaluation Framework.


Program Activity: Clean Energy – Statutory
($ millions)
Actual
Spending
2006-07
Actual
Spending
2007-08
Planned
Spending
2008-09
Total
Authorities
2008-09
Actual
Spending
2008-09
Variance(s)
0.0 1.6 0.0 19.0 19.0 0.0



Program Activity: Clean Energy – Appropriation
($ millions)
Actual
Spending
2006-07
Actual
Spending
2007-08
Planned
Spending
2008-09
Total
Authorities
2008-09
Actual
Spending
2008-09
Variance(s)
0.0 0.0 12.5 12.5 12.5 0.0

Comments on Variance(s):

Significant Evaluation findings by the recipient during the reporting year and future plan: Three interim evaluations will be performed by an independent 3rd party (Nov 30, 2012, Nov 30, 2017 and Nov 30, 2022); a final evaluation by Sept 30, 2027. Canada may choose to evaluate the Foundation at any time over the life of the agreement to determine whether it is fulfilling its objectives.

Significant Audit findings by the recipient during the reporting year and future plan: The agreement with SDTC requires the Foundation to hire an auditor to audit the accounts and financial statements and appoint an Audit Committee to oversee the financial management of the Foundation. It also stipulates that Canada or the Auditor General may undertake a compliance audit at any time over the life of the Fund.

URL to Recipient's Site: http://www.sdtc.ca

URL to Recipient's Annual Report: http://www.sdtc.ca/en/news/annual_reports.htm



Table 5: Horizontal Initiatives


Name of Horizontal Initiative: Improving the Performance of the Regulatory System for Major Natural Resource Projects

Name of Lead Department(s): Natural Resources Canada

Lead Department Program Activity: Internal Services – Public Policy Services – Major Projects Management Office

Start Date of the Horizontal Initiative: October 1, 2007

End Date of the Horizontal Initiative: March 31, 2012

Total Federal Funding Allocation (start to end date): $150 million over 5 years

Description of the Horizontal Initiative (including funding agreement):

To respond to the recent growth in the number of major resource projects and move forward on commitments to create a more accountable, predictable and timely regulatory review process, the Government has allocated $150 million over five years to establish the Major Projects Management Office (MPMO) within Natural Resources Canada (NRCan) and to increase the scientific and technical capacity of key regulatory departments and agencies.

The MPMO has been created to provide a single point of entry into the federal regulatory system for all stakeholders and to provide overarching management of the federal regulatory process for major natural resource projects. New capacity funding provided through this initiative will ensure key regulatory departments and agencies are positioned to respond to the recent growth in the number of new major resource projects and will better enable departments to meet their legal responsibilities for Aboriginal Crown consultation associated with their regulatory decisions relative to major resource projects.

This initiative will provide the oversight and capacity needed to address the issues affecting the performance of the federal regulatory system. In short, it will lay the foundation for a more predictable and accountable regulatory system that will improve the competitiveness of Canada's resource industries while ensuring careful consideration of environmental standards and technical requirements.

Shared Outcome(s):

Among the more tangible improvements resulting from this initiative will be the timeliness and predictability of the regulatory process. The environmental review and permitting of major resource projects is targeted to be reduced from upwards of four years to an average of about two years.

Other important outcomes from this proposal include:

  • a more accountable, predictable and timely regulatory review process that will facilitate investment and planning decisions and improve the competitiveness of Canada's resources industries;
  • high quality assessments of the environmental and social effects of resource development so that federal decisions in relation to projects safeguard the environment and promote sustainability; and
  • Aboriginal consultation responsibilities will be fulfilled in a more consistent, adequate and meaningful manner.

Governance Structure(s):

The Cabinet Directive on Improving the Performance of the Regulatory System for Major Resource Projects has established a new governance framework for federal government departments and agencies to facilitate the effective, coordinated, and concurrent discharge of their statutory duties, functions and obligations related to the regulation of major resource projects. It encourages federal government departments to work together to identify areas where the consistency, efficiency and effectiveness of the federal regulatory system can be improved and to develop and implement system improvements. These activities are intended to improve the accountability, transparency, timeliness and predictability of the federal regulatory system for major natural resource projects.

The Minister of Natural Resources is the lead Minister for the Initiative. In collaboration with her counterparts in other regulatory departments, the Minister of Natural Resources will report biannually to Cabinet on progress made towards achieving the objectives of the initiative, and will report annually to Parliament and the public through NRCan's annual reporting requirements.

A Major Projects Deputy Ministers' Committee has been created to serve as the governance body for the implementation of the initiative. This Committee will provide direction for the resolution of project-specific issues and oversee the application of the Cabinet Directive. Membership on this committee includes the Deputy Minister of NRCan (Chair), the Deputy Minister of Fisheries and Oceans Canada, the Deputy Minister of the Environment, the Deputy Minister of Indian Affairs and Northern Development, the Deputy Minister of Transport, the Deputy Minister of Justices, the Deputy Minister of Intergovernmental Affairs, Privy Council Office, the Associate Deputy Minister of Industry, the President of the Canadian Environmental Assessment Agency, the President of the Canadian Nuclear Safety Commission and the Chair of the National Energy Board.

The MPMO has been established to provide overarching management of the federal regulatory system for major resource projects. It will achieve this by working with the federal regulatory departments / agencies to identify areas where the consistency, efficiency and effectiveness of the federal regulatory process can be improved and work with these departments and agencies to implement change. The MPMO will also provide support to the Major Projects Deputy Ministers' Committee, through the provision of data, analysis and other information.

To ensure effective communication with federal regulatory departments on key issues and to facilitate collaboration and cooperation, interdepartmental working groups have been established at the ADM, DG and working levels.

Federal Partner Program Activity (PA) Names of Programs for Federal Partners Total Allocation (from Start to End Date)[1] Planned Spending for
2008-09
Actual Spending for
2008-09
Expected Results for
2008-09
Results Achieved in
2008-09
Natural Resources Canada
Internal Services Major Projects Management Office $18,500,000 $5,500,000 $3,797,559

Lead the development and implementation of a consistent, whole of government approach to Aboriginal consultations;

Ensure the environmental assessment and regulatory review processes for major resource projects are integrated and well coordinated through the development of Project Agreements;

Increase the transparency and accountability of the federal regulatory review process through increased oversight and regular monitoring, tracking and reporting on progress against commitments in Project Agreements; and,

Identify and implement process improvements to continue to improve the efficiency and effectiveness of the federal regulatory system for major resource projects.

Following its first full year of operations, the MPMO is providing overarching management of the federal regulatory review process for 41 major natural resource projects;

Service standards have been established with target time lines for each major project review, reflected in interdepartmental project agreements provided to project proponents, and made available to the public;

Performance of federal reviews for projects under the MPMO initiative is being publicly tracked and monitored to ensure greater transparency and accountability;

The initial building blocks, including improved governance, have been put in place for a whole-of-government approach to Aboriginal consultations for major resource projects;

Strong project management systems and governance mechanisms have been put in place to improve integration of federal decision-making and to improve the predictability and accountability of the federal regulatory review process;

Chaired monthly meetings of the Major Projects Deputy Ministers' Committee and supporting ADM and DG Committees to ensure timely resolution of project related issues and to advance new policies, procedures and analysis to further improve the performance of the federal regulatory system for major resource projects;

Held regular meetings with stakeholders (Industry associations, project proponents, Environmental groups and Aboriginal groups) to ensure that the implementation of the MPMO approach was meeting its stated objectives and the needs of stakeholders;

Led interdepartmental analysis and research to identify and implement further improvements to the regulatory review process;

As co-chair of the federal / provincial Regulatory Performance Improvement Working Group, worked closely with provincial energy and mining ministries to identify opportunities to improve integration of federal and provincial regulatory review processes; and,

New guidelines were developed to improve process clarity, promote early engagement between project proponents and regulators, and ensure a coordinated federal approach throughout the entire review process.

Total NRCan $18,500,000 $5,500,000 $3,797,559    
Canadian Environmental Assessment Agency
Environmental Assessment Support   $31,823,000 $7,955,750  

Support a whole-of-government approach to addressing strategic and project-specific environmental assessment (EA) issues, including supporting implementation of the MPMO initiative;

Manage the federal environmental assessment process and related Aboriginal consultation activities for most major resource projects; and,

Develop and deliver training and guidance in support of the initiative.

Worked in collaboration with other organizations involved in the MPMO initiative to strengthen coordination of EAs federally (such as the coordination of review panels), to integrate EA into the federal regulatory process more effectively and, in support of a "one-window" approach, to integrate Aboriginal consultation in EA process for major resource projects;

Led the federal environmental assessment process for major natural resource projects (with the exception of CNSC and NEB screening and comprehensive studies), and coordinated aboriginal engagement and consultation activities with the EA of these projects as mandated under the Cabinet Directive on Improving the Performance of the Regulatory System for Major Resource Projects and its Memorandum of Understanding;

Development of a tracking and reporting tool to improve the pre-EA and EA phases of the regulatory process is well under way and will be completed in 2009-2010;

Delivery of internal training and guidance in support of matters relevant to the MPMO initiative to Agency staff (existing and new) in NCR and in 6 regional offices; and,

Adaptation of training package for other organizations involved in the MPMO initiative is under way, for delivery in 2009/10 on a cost recovery basis.

Environmental Assessment Development   $3,512,000 $878,000  

Support the implementation of this horizontal initiative focused on achieving improvements in the process, capacity, and associated Aboriginal consultations with respect to major resource projects;

Contribute to the ongoing development of policies, procedures and guidance materials for enhancing coordination and collaboration on high-quality, timely and predictable environmental assessment within the regulatory approval process; and,

Contribute to the development of policies and procedures in support of the integration of Aboriginal Crown consultations in the environmental assessment and regulatory approval process.

Developed jointly with other organizations involved in the MPMO initiative procedural documents and templates to improve process clarity, promote early engagement between project proponents and regulators, and ensure a coordinated federal approach throughout the entire review process;

Established jointly with other organizations involved in the MPMO initiative policies, procedures and guidance materials for enhancing coordination and collaboration on high-quality, timely and predictable environmental assessment within the regulatory approval process, such as procedural guidance on comprehensive studies and multijurisdictional screenings, now in final review and approval; and,

Ongoing development, jointly with other organizations involved in the MPMO initiative of new policies, processes, procedures and guidance materials on the integration of Aboriginal Crown consultations in the environmental assessment and regulatory approval process.

Internal Support   $8,665,000 $2,166,250  

Core support services to support program delivery

Key national staffing processes completed; and,

New staff successfully integrated into the organization.

Total CEAA $44,000,000 $11,000,000      
Environment Canada
Biodiversity is conserved and protected Wildlife program $2,352,117 $463,919  

The efficiency and effectiveness of Canadian Wildlife Services' (CWS) regulatory role in major resource projects are improved; and,

Policies and guidance support CWS' involvement in the EA process for major resource projects.

The efficiency of CWS' permitting responsibilities for major resource projects is improved through the initial work on developing a national permitting system; and

CWS' involvement in the EA process for major natural resource projects is supported by processes, policies, and guidance.

Water is clean, safe and secure Aquatic ecosystems are conserved and protected $614,683 $123,281  

EC's responsibilities associated with the International River Improvements Act are supported by standard operating procedures and policies for permitting.

EC's responsibilities in the EA process associated with the International River Improvements Act for major natural resource projects are supported by guidance, processes, and issues reviews.

Canadians adopt approaches that ensure the sustainable use and management of natural capital and working landscapes Environmental assessment and ecological monitoring $4,533,659 $869,655  

Interdepartmental participation in establishing and implementing the MPMO initiative is supported;

Departmental EA processes are streamlined and the efficiency and effectiveness of the process in support of the MPMO initiative are increased;

Streamlining priorities are validated and supported within the department;

Regional offices are supported in the delivery of streamlining priorities for major resource projects; and,

A departmental governance structure is established to coordinate EC's involvement in the MPMO initiative.

MPMO's governance structure and implementation are supported through participation in the Major Projects Deputy Ministers' Committee and associated committees and working groups;

Identified and validated streamlining priorities through a completed comprehensive analysis and modeling of departmental EA processes and departmental workshops;

Regional offices are supported in the delivery of streamlining priorities through the development of a common understanding of expectations and responsibilities with respect to MPMO and EC's responsibilities associated with the MPMO initiative;

Established an internal governance structure to manage and coordinate the implementation of the MPMO initiative; and

EC supported the accountability, transparency, timeliness and predictability of the regulatory review process through participating in the development and implementation of project agreements.

Risks to Canadians, their health and their environment posed by toxic and other harmful substances are reduced Risk management/ Risk mitigation and implementation $2,723,834 $561,561  

Decisions on major resource projects are reached in a timely fashion while maintaining or enhancing protection of the environment;

EC's involvement in the EA process for major natural resource projects is supported by guidance; and,

EC provides input into the federal EA process through the provision of expertise.

Decisions on major resource projects are supported by review of regulatory processes for amendments of the Metal Mining Effluents Regulations for tailings impoundment areas and Ocean Disposal permitting;

Timely EA decisions are supported by the development of replacement class screenings for Ocean Disposal permits; and,

EC's involvement in the EA process for major natural resource projects is supported by the development of guidance documents and review of current practices.

Relations with other governments and partners are effectively managed in support of environmental priorities Inter-governmental and stakeholder relations $596,818 $121,742  

Regular, timely and strategic advice is provided on consulting and engaging Aboriginal groups throughout the regulatory process for natural resource projects; and,

EC contributes to and participates in the development of an interdepartmental approach to Aboriginal consultation.

Provided timely advice and support to regional offices on Aboriginal consultation, including regional training sessions; and,

EC supported the interdepartmental approach to Aboriginal consultation through its active involvement in developing a whole of government approach to addressing Aboriginal consultation for major resource projects.

Internal Services Core Support Services $1,429,648 $359,842  

Timely legal advice and support on delivery of national EA program involvement in major resource projects is provided; and,

Core support services are provided to support program delivery.

Supported delivery of national EA program by providing timely legal advice and support; and,

Core support services are provided to support program delivery.

Total EC $12,500,000 $2,500,000      
Transport Canada
Transportation Safety and Security   $3,365,555 $1,627,704 $506,632

TC to participate in the various governance mechanisms established for the MPMO initiative;

TC (headquarters and regional staff) to participate in working groups to assist with the creation and approval of key documents, processes and tracking systems required to operationalize the MPMO initiative; and,

TC to improve its capacity to complete technical reviews required under the Navigable Waters Protection Program (NWPP).

TC participated in various governance mechanisms established for the MPMO initiative or that are aiding the MPMO initiative including the Director General, Assistant Deputy Minister and Deputy Minister Committees and the Environmental Assessment Project Committee (EAPC);

TC (headquarters and regional staff) participated in interdepartmental working groups to assist with the creation and approval of key documents, processes and tracking systems required to operationalize the MPMO initiative;

TC maintained a headquarters MPMO committee in order to ensure new MPMO processes are applied internally in as efficient a manner as possible and that advice to the Associate Deputy Minister is provided in a timely and coordinated manner; and,

Positions have been created in the NWPP in order to improve TC's capacity to complete technical reviews required under the Navigable Waters Protection Act for major resource projects.

Transportation Policy Development and Infrastructure Programs   $1,813,090 $440,760 $0

Note: Actual spending transferred from this Program Activity Area to the Sustainable Transportation Development and the Environment program.

 
Sustainable Transportation Development and the Environment   $5,413,592 $2,632,667 $1,617,642

TC to participate in the various governance mechanisms established for the Major Projects Management Office initiative;

TC (headquarters and regional staff) to participate in the creation and approval of key documents and processes required to operationalize the MPMO initiative;

TC to work on departmental processes to ensure new MPMO processes are applied in an efficient manner internally; and,

TC to improve its capacity to complete technical reviews of environmental assessments across the country.

TC participated in various governance mechanisms established for the MPMO initiative or that are aiding the MPMO initiative including the Director General, Assistant Deputy Minister and Deputy Minister Committees and the Environmental Assessment Project Committee (EAPC);

TC (headquarters and regional staff) participated in working groups to assist with the creation and approval of key documents, processes and tracking systems required to operationalize the MPMO initiative;

TC maintained a headquarters MPMO committee in order to ensure new MPMO processes are applied internally in as efficient a manner as possible and that advice to be provided to the Associate Deputy Minister is provided in a timely and coordinated manner;

TC HQ held monthly teleconferences with regional staff to ensure smooth implementation of the initiative;

Funding received was used in order to increase capacity for technical review of environmental assessments (EAs) and other key aspects of carrying out EAs for major resource projects; and,

Involvement in Interdepartmental Working Group on Aboriginal Consultation that developed a whole of government approach to improve the Aboriginal consultation process for major resource projects.

Internal Services   $3,407,763 $1,330,869 $359,882

TC to hire lawyers to increase capacity to deal with legal issues associated with the regulatory review process for major resource projects across the country.

TC has engaged their legal services staff for review of various MPMO documents; and,

Funding received will be used to hire lawyers to increase capacity to deal with legal issues associated with the regulatory process in 2009/2010.

Total TC $17,500,000 $6,032,000 $2,484,156    
Fisheries and Oceans Canada
Habitat Management Habitat Management Program $34,041,800 $6,808,360  

Continued participation in the governance mechanism, i.e., Major Projects Deputy Ministers' Committee and other supporting governance structures;

Continued provision of DFO support to operationalize the initiative and working processes through participation on working groups;

Continued staffing of new positions;

Develop departmental guidance and procedures to operationalize the procedures prepared by MPMO and interdepartmental working groups; and,

Provide input to Project Agreements based upon DFO's role and responsibilities.

Participated in the governance mechanism, i.e., Major Projects Deputy Ministers' Committee and other supporting governance structures;

Input to MPMO undertakings to operationalize the initiative;

Input to MPMO analyses of legislative/regulatory issues and development of Strategic Framework.

Staffed most new positions. Staffed national Aboriginal Consultation Advisor;

Undertook the following to operationalize the initiative:

  • prepared DFO process maps to illustrate how MPMO procedures may be integrated into internal processes and identified process improvement, where needed;

  • evaluated existing decision authority protocols for regulatory and EA processes to identify appropriate adjustments to ensure timely decision making processes;

  • clarified Lines of Communication to illustrate the points of communication between DFO and other key parties involved in the initiative;

  • drafted DFO guide to the Project Agreement Phase based upon MPMO procedures to provide clarity to staff on the development of the Project Agreements;

  • developed internal communications on initiative and shared these with departmental staff, including an article in the DFO "Oceans" newsletter; and,

Participated in the development of numerous Project Agreements.

Legal Services Legal Services $958,200 $191,640  

Provide legal advice and support of DFO's continued participation in the governance mechanism, i.e., Major Projects Deputy Ministers' Committee and other supporting governance structures;

Provide legal advice and support of DFO's continued provision of support to operationalize the initiative and working processes through participation on working groups;

Provide legal advice and support of the development of DFO guidance and procedures to operationalize the procedures prepared by MPMO and interdepartmental working groups;

Provide legal advice and support to DFO's provision of input to Project Agreements based upon DFO's role and responsibilities; and

Support of the MPMO initiative through participation on the Legal Services Working Group.

Provided legal advice and support of DFO's participation in the governance mechanism, i.e., Major Projects Deputy Ministers' Committee and other supporting governance structures;

Provided legal advice and support of DFO's input to MPMO to operationalize the initiative;

Provided legal advice and support of DFO's input to MPMO analyses of legislative/regulatory issues and development of Strategic Framework;

Provided legal advice and support of various DFO work products including departmental guidance and procedures;

Provided legal advice and support to DFO departmental officials through monthly MPMO meetings;

Provided legal advice and support in of DFO's participation in the development of numerous Project Agreements; and

Weekly participation in the MPMO Legal Services Working Group and some half-day meetings.

Total DFO $35,000,000 $7,000,000      
Indian and Northern Affairs Canada
Northern Land and Resources Northern Affairs Organization $6,600,000 $1,320,000 $1,248,000

Facilitating environmental assessments and regulatory authorization processes;

Addressing Aboriginal and community consultation and capacity concerns;

Establishing and working with independent monitoring authorities;

Recommending mitigations to minimize environmental impacts;

Coordinating the department's participation in regulatory public hearings;

To assist NWT land and water, environmental assessment and screening boards in improving, reviewing and/or developing operational or procedural processes required to undertake the review of major projects, excluding the MGP, or for specific activities related to individual unplanned major projects not included in core Board funding; and,

Successfully support INAC in its operational s.35 Crown Consultation activities.

INAC participation in Selwyn Resources, Taltson Hydroelectric Expansion Project, Uravan Minerals and Bayswater Uranium environmental assessments, scoping hearings, technical meetings, community and public hearings, and site visits;

INAC participation in the Cantung water licence renewal technical meetings, community, public hearings and site visits;

Response to EA information requests, comment on EA Terms of Reference and Work Plans for the above projects;

Completed Crown Consultation Analyses for the above EAs and regulatory projects, conducted and reported on any required consultation;

Ministerial responses to the Reports of Environmental Assessment, including coordination with other Responsible Ministers including coordination with other Responsible Ministers; and,

Board Relations Secretariat provided funding on a proposal driven basis, to several boards with the objective to provide increased board capacity for regulatory improvement.

Responsible Federal Stewardship Lands and Economic Development- Environmental Management $3,400,000 $680,000 $62,000

Ensure the department has the capacity to meet its environmental obligations in relation to major resource projects; and

Increase First Nations and Inuit communities' capacity to participate in the regulatory review process for major resource projects.

Participated in the review of service standards, performance measures and guidelines development;

Reviewed Project Agreements (draft and final);

Provided the initial building blocks, including hiring of one FTE and initiating the hiring process for three additional FTE positions (2 in the western regions (BC and AB) and 1 HQ); and,

Provided the initial building blocks, including developing a program management regime (Departmental capacity and First Nations and Inuit communities capacity dollars) and supporting the development of the new internal MPMO review process.

Total INAC $10,000,000 $2,000,000 $1,310,000    
Total All Departments          

Comments on Variances:

[1] For many departments, the total funding allocated through this initiative does not correspond to total funding allocated to specific program activities identified above due to changes in the Program Activity Architecture of these departments.

Contact information:

Mr. Philip Jennings
Assistant Deputy Minister
Major Projects Management Office
Natural Resources Canada
155 Queen Street, 2nd Floor
Ottawa, ON  K1P 6L1
Telephone: 613 944-6171
Email: pjenning@nrcan.gc.ca



Table 6: Sustainable Development Strategy


Natural Resources Canada's (NRCan) Sustainable Development Strategy (SDS), Achieving Results, was tabled in Parliament in December 2006. The document is NRCan's action plan for sustainable development and sets out three long-term goals, long-term objectives, intermediate outcomes and targets. The current SDS extends to March 31, 2010.

The table below reflects the progress achieved against the SDS targets scheduled for completion by March 31, 2009 and linkages to the department's Program Activity Architecture. Detailed progress reports on all of NRCan's SDS 2008-2009 targets are available at: http://sd-aims.nrcan.gc.ca. Further information on the department's performance by program activity can be found in Section II of the Departmental Performance Report for the period ending March 31, 2009 at http://www.tbs-sct.gc.ca/est-pre/estime.asp.

SDS Goal 1: To enable Canada's natural resource sectors to contribute to a competitive economy and advance positive social and environmental outcomes


Expected Results for 2008-09 Performance Measure(s) Achievements for 2008-09 Linkage to Program Activities

Develop and initiate implementation with the provincial and territorial governments, the Canadian Wildland Fire Strategy (CWFS), a strategy to enhance the safety of Canadian communities from wildfire.

(SDS Target 1.1.1.2)

Increase in preparedness and response capability through enhancements to the Canadian Interagency Forest Fire Centre (CIFFC).

Expansion of the development and use of the CWFS as a publicly accessible fire warning and monitoring system.

Development of a wildland fire plan in support of the CWFS

The Canadian Council of Forest Ministers (CCFM) replaced the ad hoc ADM Wildland Fire Task Group with a Wildland Fire Management Working Group, with direct links to a reconstituted Canadian Interagency Forest Fire Centre (CIFFC) Board of Corporate Trustees. (Recommendations by NRCan were central to several of the changes to the governance structure of the CIFFC.)

These developments set the stage for early progress during fiscal year 2007-2008:

– Consultations on the CWFS were initiated with the forest industry (the Forest Products Association of Canada – FPAC) and the insurance industry through the Institute for Catastrophic Loss Reduction (ICLR).

– The CCFM Wildland Fire Management Working Group identified key issues to be addressed.

– An update on the status of the implementation of the CWFS, which is now in progress.

– In support of the CWFS, NRCan contracted the ICLR to organize and report on a meeting of international experts in wildland-urban interface fires. This meeting occurred in February 2008.

Progress during fiscal year 2008‑2009 included:

  • The CCFM increased its financial support to the Working Group, allowing it to explore options to strengthen its capacity to advance the CWFS.
  • The CCFM Wildland Fire Working Group developed a three-year work plan, which emphasizes CWFS implementation. Current discussions on implementation are focused on more effective inter-jurisdictional collaboration using existing resources.
  • The report on the February 2008 meeting involving international wildland fire experts remains under development. It will ultimately be distributed to Canadian municipalities to raise the awareness of both wildland fire as a public policy issue and the CWFS. Other vehicles for raising awareness like a national workshop with a focus on communities as well as other options are being explored.
  • The CCFM Wildland Fire Working Group has nearly completed two documents: an update on the CWFS and an implementation plan to execute the first phase of the CWFS.

Areas of analysis:

  • Through an interchange agreement, NRCan is hosting a world-class international fire expert, who, in close collaboration with provinces and territories, is reviewing the wildland fire research capacity in Canada, looking at how wildland fire information is managed, and conducting a benefit-cost study of wildland fire research from a national perspective. (Completion by December 2009).
  • NRCan scientists are analyzing how the anticipated increase in fire on the landscape (expected doubling of the area burned in the next 30-40 years as a result of climate change) could impact national timber supply. (Completion by September 2009).
  • Analysis of the wildland fire management expenditures in Canada was completed and will be presented to the CCFM Working Group in the fall 2009.
Adapting to a Changing Climate and Hazard Risk Management

Increase Aboriginal understanding of and participation in mining.

(SDS Target 1.1.1.3)

Number of information sessions delivered. Number of information Products distributed.

Early progress during fiscal year 2007-2008 included the delivery of information sessions on mining for aboriginal communities as well as workshops on human resources for Human Resources Development Agreement holders. In addition, NRCan contributed to the development of a proposal from the Mining Industry Human Resources Council (MIHR); funding for the proposal was received from Human Resources and Skills Development Canada and a steering committee formed. In addition, the Call for Request for Proposals was issued; proposals were received and distributed to the steering committee.

Progress during fiscal year 2008-2009 included:

  • Distribution by the Contractor and MIHR of the second draft of the Aboriginal Mining HR Guide for review by partners and the larger advisory committee of Aboriginal organizations.
  • Completion of final draft and forwarding for final editing and layout. The official release is set to coincide with the Canadian Institute of Mining, Metallurgy and Petroleum annual meeting in Toronto in June 2009.
Natural Resoource-Based Communities

Develop with the provincial and territorial governments, a National Forest Pest Strategy (NFPS) that establishes a national decision-making framework based on a risk-based ecosystem approach, to ensure an integrated response to increasing threats posed by native and alien invasive pests to rural and urban forests.

(SDS Target 1.2.1.1)

Increase in capacity for monitoring and prediction.

Improvement in response to forest pests based on integrated, risk-based approach.

Identification of key Science and Technology gaps and development of a plan to address gaps.

The NFPS Prospectus (Vision, principles and approach) was approved in principle by the CCFM in the fall of 2006. Subsequent early progress towards the development of the NFPS during fiscal year 2007-2008 included:

– Review by the NFPS Steering Committee and Working Group of the results of a national stock-taking exercise conducted by NFPS partners. The exercise identified key S&T gaps and provided an overview of the current national situation including pest monitoring and prediction capacity.

– A draft NFPS was presented to the CCFM Deputy Ministers in June 2007, followed, in September 2007, by a revised version, which included a preliminary 5-year implementation plan. The draft was approved in principle by CCFM Ministers.

– A Task Force was created to act as a National Coordination Body, and worked to further develop the NFPS Implementation Plan. Approval by CCFM Deputy Ministers and Ministers of a revised implementation plan was deferred in anticipation of the inclusion of an NFPS benefit – cost analysis, when completed.

– Early implementation actions undertaken included development of a risk analysis framework for assessing the risk of the Mountain Pine Beetle moving into the Boreal Forest. (A report describing the framework was published in 2008).

During fiscal year (2008-2009), the following progress was made:

  • Confirmation in September 2008 of overall NFPS direction by CCFM and continued implementation of the Strategy under CCFM auspices.
  • Continued implementation of the risk analysis framework and, in order to increase response to forest pests, further integration of the framework into forest pest activities carried out by federal, provincial and territorial jurisdictions.
  • Continued NRCan/Canadian Forest Service discussions with provinces and territories, leading to the cooperative development of projects in support of the NFPS priorities. Eleven projects to be conducted by provinces and territories were approved and are currently underway.
  • Following a gap-analysis to identify NFPS S&T needs/priorities, initiation of a second round of cooperative projects focussed on S&T development
  • Delivery of a survey of monitoring capacity, gaps and differences in standards by the NFPS technical committee, in support of NFPS priority to increase monitoring and prediction capacity.
  • Delivery of a benefit-cost analysis (an estimate of avoided costs under NFPS) for consideration by CCFM Deputy Ministers.
Adapting to a Changing Climate and Hazard Risk Management

Develop policy alternatives to arrest the decline in Canada's base-metal reserves and promote adoption by mines ministers and other decision-makers.

(SDS Target 1.2.1.2)

Completion of policy alternatives.

Adoption of alternatives by mines ministers and other decision-makers.

Early progress during fiscal year 2007-2008 included the production of reports on levels of ore reserves, mineral discoveries and exploration spending trends. A chapter was provided on the use of Qualified Environmental Trusts (QETs) in financing mine site rehabilitation in "Taxation Issues for the Mining Industry – 2007 Update" (presented at the September 2007 Mines Ministers' Conference). In addition, the Mines Ministers Conference 2007 was provided with detailed analysis of administrative guidelines for using Canadian Exploration Expense tax treatments and on industry's proposal to allow flow-through share financing for QETs. Further consultations were held with exploration associations at follow-up Intergovernmental Working Group (IGWG) meetings regarding policy options to address declining base-metal reserves in Canada and to remove barriers to exploration near existing mines.

Progress during fiscal year 2008-2009 included:

The tabling of a report at the Mines Ministers Conference 2008 that included analysis and conclusions on three industry proposals to help address declining base-metal ore reserves.

  • Further consultations with Finance Canada and the Canada Revenue Agency will be held to explore the practicality of a proposal to stimulate mineral exploration on properties closed for more than five years. Further research and analysis required and will be undertaken regarding tax incentives and deep drilling near existing mines as a means of increasing base-metal reserves.
  • Internal study was undertaken of new mine status cases referred to NRCan over the last ten years and the implications that a 60- month rule would have had on the decisions made. The conclusions and options related to the study will be released shortly.
  • To promote exploration, in conjunction with Canada Revenue Agency, NRCan presented a public awareness session on incentives for mineral exploration, on the margins of Roundup 2009. Agreement was reached to approach industry experts for technical information regarding the practicality of implementing/defining eligibility requirements for a deep drilling incentive. Further research and analysis is required and will be undertaken regarding the Mineral Exploration Tax Credit (METC) and deductibility of overhead expenses. The IGWG on the Mineral Industry tax subcommittee will continue to focus on these proposals to stimulate exploration and, in the long-term, increase base-metal reserves.
Economic Opportunities for Natural Resources

Develop and implement an information system on mining research across Canada.

(SDS Target 1.2.2.1)

Development and implementation of information system.

Early progress during fiscal year 2007-2008 included the development and implementation of information in the MineCan database (used as the reference database of the Canada Mining Innovation Council (CMIC), increasing from the earlier listing of 37 major research projects to 96 entries of current research projects performed by about 80 principal investigators from 5 research organizations.

Progress during fiscal year 2008-2009 included:

  • The continuation of the development of the MineCan Website, which now includes a list of Laboratories and Research Facilities in Canada as well as Mining Engineering Staff at the several institutions. Separate lists identify those working in Mineral Processing, Mining Extraction, and Environment. Efforts continue to urge all mining researchers to list their projects. By the end of June 2009, it is expected that 136 research projects and fifteen participating organizations be listed.
  • The continuation of development of the MineCan Website (content and software).
Economic Opportunities for Natural Resources

Develop and deploy an innovative process to enhance the recovery of gold and silver.

(SDS Target 1.2.2.2)

Development and deployment of the process.

Early progress during fiscal year 2007-2008 included the identification of CANMET Enhanced Leaching Process (CELP) chemical reaction mechanisms, and provided improved understanding of the parameters and confirmed the superiority / advantages of CELP to conventional processes. The first commercial implementation of the technology reached the start-up phase at the Canadian owned Kinross Kupol Mine in northern Russia.

Progress during fiscal year 2008-2009 included:

  • Continued to identify CELP chemical reaction mechanisms, provide improved understanding of the influential parameters and confirm the superiority/ advantages of the CELP over conventional processes.
  • The first commercial application of the technology reached full operation, with a performance above expectation at the Canadian owned Kinross Kupol Mine in northern Russia. The technology proved to be very robust according to Kinross.
Economic Opportunities for Natural Resources

Analyze the current state of water use in natural resource sectors based on available data.

(SDS Target 1.2.4.2)

Completion of synthesis document.

Early progress during fiscal year 2007-2008 included the drafting of a synthesis document and undertaking of internal and external consultations (Environment Canada and Statistics Canada).

Progress during the course of fiscal year 2008-2009 included:

Economic Opportunities for Natural Resources

Develop improved materials and processes to achieve more energy-efficient, lower-emission vehicles.

(SDS Target 1.3.2.1)

Development of a new high-temperature aluminum-copper alloy and a metal-matrix composite for application in automobiles.

Granting of the patent application and completion of foundry trials.

Improvement in energy efficiency and reduction in manufacturing costs through the application of hydroforming using ultra-high strength steels.

Early progress during fiscal year 2007-2008 included, in the case of the Aluminum-copper alloy, submission of a preliminary report on the development of the new alloy to the industry partner. Pending notification from the industry partner, foundry trials commenced. An Intellectual Property Disclosure Kit was not prepared due to patent search and potential for infringement on recent patents. The final report was submitted to the customer, who is proceeding on a tangential path to commercialization with a similar but patently different processing route. In the case of Ultra High-strength Steel, the report to industry was delayed until completion of additional welding trials planned for September 2008.

Progress during fiscal year 2008-2009 included:

  • Aluminum-copper alloys: Reports are in the process of preparation and submission into peer-reviewed journals. The alloy was tested for castability and properties by the client and found to meet the requirements. A manuscript was submitted and accepted for publication by The Minerals, Metal and Materials Society (2009). Another manuscript on the characterization of the alloy will be prepared soon. The project is completed successfully.
  • Ultra High-strength Steel: Completed the work with the Automotive Steel Partnership on Ultra High Strength Steel tubing for experimental work on welding of automotive framing members. The draft report was sent to the Partnership in February 2009 for review. The final report will be sent in June 2009. The research resulted in the definition of the optimal welding conditions for the subsequent hydroforming of Dual Phas (DP) 780 steel and Transformation Induced Plasticity (TRIP) Steel.
Clean Energy

Work with the Canadian Environmental Assessment Agency (CEAA) and other government departments to develop innovative approaches to improve regulatory efficiency in the natural resource sectors.

(SDS Target 1.5.1.1)

Number of innovative approaches developed.

Number of pilot projects.

Early progress during fiscal year 2007-2008 included provision of support to the NRCan-led Deputy Minister (DM) task force that developed recommendations that lead to the Budget 2007 announcement of $150 million over 5 years to improve the performance of the regulatory system for major resource projects. NRCan also led the following:

– The development of a joint Memorandum to Cabinet to obtain policy and funding approval to create the Major Projects Management Office (MPMO) within NRCan and increase capacity funding to key federal regulatory departments (approved June 2007);

– The development of a new Cabinet Directive on Improving the Performance of the Regulatory System for Major Resource Projects that creates a new governance framework for the management of federal regulatory responsibilities pertaining to regulatory approvals of major new resource projects, which includes the establishment of Project Agreements, a new DM-level oversight committee and the mandate for the MPMO (approved June 2007);

– The negotiation of a Memorandum of Understanding (MOU) that articulates the roles and responsibilities of the key regulatory department in implementing the MPMO Cabinet Directive (signed by DMs of NRCan, Environment Canada (EC), Transport Canada, Department of Fisheries and Oceans, Indian and Northern Affairs Canada, CEAA, the National Energy Board and Canadian Nuclear Safety Commission in August 2007)

– The development of an omnibus Treasury Board submission to obtain approval of funding announced in Budget 2007 to improve the performance of the regulatory system for major resource projects (approved September 2007;

– An interdepartmental study to map the federal regulatory process for new mining projects and to develop recommendations on how to increase the efficiency and effectiveness of this process (final report distributed September 2007).

In terms of pilot projects, NRCan developed and launched the Natural Resources Regulatory Web Portal, a one-window on-line tool directing the public to sites with information about natural resource regulations. (July 2007). NRCan also launched a pilot project called BizPaL+ to serve as the single point of contact for entrepreneurs that provides access to information on permits and licences needed from all orders of government to start or operate a business. NRCan, in collaboration with Industry Canada and provincial/territorial and local governments, undertook and completed business process mapping for various natural resource sectors in British Columbia, Yukon and Saskatchewan.

Progress during fiscal year 2008-2009 included:

  • NRCan consolidated the federal regulatory content required to complete the BizPaL+ pilot (March 31, 2009).
  • To fully implement BizPaL+, the regulatory content from the provinces and territories must also be made available. Industry Canada estimates that at the current pace of development, BizPaL+ content could be fully developed within a year.
Natural Resoruces and Landmass Knowledge for Canadians

SDS Goal 2: To advance Canada's position as a world leader in sustainable resource development and use.


Expected Results for 2008-09 Performance Measure(s) Achievements for 2008-09 Linkage to Program Activities

A minimum of five new members join the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development, and the Forum adopts a clear set of priorities.

(SDS Target 2.1.1.3)

Number of new members.

Adoption of priorities by the Forum.

Early progress during fiscal year 2007-2008 included the holding of a successful annual meeting of the Forum with 80 delegates from member countries. The meeting focussed on policies and practices to optimize benefits at community and national levels and on threats to market access for minerals and metals. The United Nations Commission on Sustainable Development (UNCSD) Committee intends to coordinate effective contributions to the UNCSD review of mining in 2010-11 at national, regional and global levels. At the Forum's annual meeting referenced above, a strategy was adopted to prepare for the UNCSD meeting in 2010-2011. In total, five new members joined the Forum: Mexico, India, Botswana, Papua New Guinea and Mozambique.

Progress during fiscal year 2008-2009 included:

  • Circulation of a first draft of the policy framework to members of the Forum for their review and comments. The draft policy framework is now under revision.
  • The agenda for the November 2008 Annual General meeting of the Forum was finalized, invitations sent to members, and the meeting was held. The Forum now comprises 41 members, and two observers (Chile and the European Commission) attended the November 2008 meeting.
Economic Opportunities for Natural Resources

Enhance leadership on international science and technology related to natural resources, and joint knowledge development with partner countries.

(SDS Target 2.1.2.1)

Strategic approach for development of joint knowledge and understanding of sustainable development of natural resources.

Three new regional monographs developed to promote international cooperation and compliance with natural resource commitments.

Early progress during fiscal year 2007-2008 included the agreement to proceed with Canada's participation in this initiative, and a Canadian position paper was developed to consolidate Canada's approach. Canada's funding of the United Nations Environment Program (UNEP) Steering Committee of the Resource Panel was also secured and eminent Canadian scientists for the Panel were identified. In addition, Canada became a formal supporter of the UNEP Panel and a member to the Panel's Steering Committee. Canada's nomination of Dr. Yvan Hardy (NRCan's former Chief Scientist) as an eminent Canadian Scientist was accepted.

Further progress during fiscal year 2008-2009 included:

  • The continued contribution by NRCan to the planning and work of the Panel, as well as representation by NRCan of the Government of Canada at the Steering Committee meetings. NRCan, as the Canadian representative on the file also consulted with the Assistant Deputy Minister (ADM) Science and Technology (S&T) Integration Board in the development of Canada's input to this process.
  • At the November 2008 and Committee meeting in Santa Barbara, California, NRCan was successful in advancing Canada's approach to water issues as the basis for a new working group on Water Efficiency.
  • In addition, NRCan through the ADM S&T Integration Board is looking to identify additional Canadian scientists for the panel.
Economic Opportunities for Natural Resources

Establish a pilot quarterly information platform for Canadian Trade Commissioners on Canadian efforts to ensure sustainable natural resource development and use.

(SDS Target 2.1.2.2)

New partnerships to provide information and data on NRCan best practices and innovations.

Three new regional monographs developed to promote international cooperation and compliance with natural resource commitments.

Early progress during fiscal year 2007-2008 included the securing of support within NRCan and the Department of Foreign Affairs and International Trade's (DFAIT) Trade Commissioner Service for a pilot of the Platform and the development of the Proposal outline. Following further discussion with DFAIT, there was a change in priorities and it was decided that this initiative should be postponed until further notice.

However, NRCan continued to provide information to Canada's Embassy in Beijing, China, through an NRCan employee, a natural resource specialist, there. NRCan also worked on the development and completion of an America's Strategy, which was approved by senior management.

During fiscal year 2008-2009:

  • NRCan's natural resource specialist at the Canadian Embassy in Beijing worked as part of a larger natural resource team at the Embassy, provided bi-weekly reports to NRCan on broad political and economic developments that may affect NRCan's sectors, worked to advance issues under the MOUs that NRCan has with the Chinese government, identified trade and investment opportunities for NRCan, provided information on market access and trade policy issues, and assisted in the organization of promotional and other market development initiatives.
  • NRCan is currently developing its departmental China and India Strategy. Both countries are emerging markets for Canadian natural resources and are priority countries within Canada's Global Commerce Strategy. The two strategies will provide an integrated strategic approach to NRCan's engagement with China and India that will promote a competitive natural resources advantage for Canada. It will also position NRCan within the Government's foreign strategy as the key department with policy and science expertise on natural resources issues. The strategies will provide an overview of the department's current activities with China and India and identify future areas of collaboration.
Economic Opportunities for Natural Resources

Contribute to the development of the Arctic Energy Summit (AES), in partnership with the United States, as part of the International Polar Year.

(SDS Target 2.1.3.1)

Development of a vision and direction for energy and energy technology in the circumpolar north to be adopted by the Arctic Council.

Participation in the AES Conference and Exposition to advance NRCan science, technology and policy expertise.

Early progress during fiscal year 2007-2008 included the provision by NRCan to the AES organizers an outline of Canada's contribution and priorities for this event. NRCan secured Canada's financial contribution to this event and identified Canada's representation on the Arctic Energy Action Team (AEAT). NRCan represented Canada at the AES, and provided further input to the outcomes of the Summit, including an international Arctic Energy Dialogue and action plan.

During fiscal year 2008-2009:

  • NRCan continued to participate in the development of the AES's Action Plan and provided input gathered from within the department as well as through consultations with DFAIT, EC, and Indian and Northern Affairs Canada.
  • NRCan also contributed to the development of the Action Plan into a Ministerial report that was presented at the April 29, 2009 Arctic Council Ministerial Meeting, in Tromso, Norway.
Natural Resoruces and Landmass Knowledge for Canadians

Minimize or eliminate unnecessary restrictions on market access and investment in the area of metals.

(SDS Target 2.1.4.3)

Completion of a roadmap on the flow of metals through their life cycle, for the international Council on Mining and Metals.

Completion of a report on metals' depletion related to life-cycle assessment, for the United Nations Environment Programme / Society for Environmental Toxicology and Chemistry.

Early progress during fiscal year 2007-2008 included the delivery of a presentation to an international conference, "Light Metals Technology 2007" at St‑Sauveur QC, in August 2007. In addition, the work by CANMET-Mining and Mineral Sciences Laboratories (MMSL) to develop a technical description on how to measure the recycling of metallic materials was accepted by industry and resulted in publication of the "Declaration of the Mining Industry on Recycling Principles" by International Council on Mining and Metals. Also, the project to conduct a complete Life Cycle Assessment (LCA) of a part made of various alloys to be used in a luxury passenger car was expanded to ensure buy-in from China on the life cycle framework.

Progress during fiscal year 2008-2009 included:

  • Ongoing consultation with China to obtain the required data on magnesium production.
  • In December 2008, CANMET‑MMSL participated in a workshop on LCA and magnesium production in China. LCA data associated with the magnesium production have been validated. LCA comparison for aluminum auto parts has been completed with the active support of the World Aluminum Association. The final report will be completed by August 2009.
Economic Opportunities for Natural Resources

Build strategic analysis of linkages between trade and investment, competiveness and corporate social responsibility (CSR).

(SDS Target 2.1.5.2)

Completion of a series of short working papers/briefings on key techniques and issues, and lessons learned, linking economic performance, competitiveness and CSR.

Early progress during the first half of fiscal year 2007-2008 included the use by NRCan of a sustainable development Free Trade Agreement (FTA) assessment tool to initiate intradepartmental discussion on the possibility of including Corporate Social Responsibility language in trade agreements, including offering possible text. This contributed to whole-of-government consensus to include language in the Colombia/Peru FTA.

Beginning in the latter half of fiscal year 2007-2008 and continuing on an ongoing basis through fiscal year 2008-2009:

  • NRCan has supported liberalization of trade, while safeguarding environmental objectives.
  • The Department has also shared information on the aforementioned issues with international organizations such as the OECD. NRCan contributed to the multilateral process of drafting ISO 26000 standard on Social Responsibility, which includes, but is not limited to corporate social responsibility considerations.
Economic Opportunities for Natural Resources

SDS Goal 3: To integrate economic, environmental and social considerations into departmental decision-making and to continuously improve operations.


Expected Results for 2008-09 Performance Measure(s) Achievements for 2008-09 Linkage to Program Activities

Work with other government departments and the Canada School of Public Service to design and deliver new Government of Canada sustainable development training material.

(SDS Target 3.1.1.1)

Completion of training materials and commencement of implementation of training.

Early progress during fiscal year 2007-2008 included the contribution of NRCan, in partnership with ten federal departments, to the development of a course on the topic of Sustainable Development (SD).

During fiscal year 2008-2009, the course, entitled Sustainable Development: Turning Principles into Practice (T727), was piloted by the Canada School of Public Service and subsequently launched in September 2008.

Internal Services

Department vision and strategies for Information Management (IM) and Information Technology (IT).

(SDS Target 3.1.2.1)

Development of departmental perspective on all IM and IT activities and where IM and IT dollars are spent.

Development of investment plans.

Updating of governance structure with increased business input / representation and strategic focus.

Early progress during fiscal year 2007-2008 included: senior management approval of NRCan's I-Vision; the completion and approval of the Enterprise I-Strategy (which outlines eight objectives in support of the five outcomes of the departmental I-Vision) and the approval of the Terms of Reference and membership for the new I-Governance committees. In addition, an effective approach to investment planning was provided through the development of: a Portfolio Management Framework that addresses how Information Management and Technology (IMT) Projects will be identified, selected, evaluated and controlled; a draft Enterprise IMT Strategic Plan that outlines strategic directions and investments for IMT based on operational activities and IMT projects that meet business requirements; and appropriate templates in the then developing departmental business planning process to capture investments in IMT. Innovation was also utilized to provide opportunities to enhance management of information through the introduction of an NRCan Resource Wiki and related processes.

During fiscal year 2008-2009, NRCan continued to make progress to moving towards an Enterprise approach to the management of IMT:

  • In consultation with TBS, draft developed of the NRCan Investment Plan – Assets and Acquired Services as required by the new Policy on Investment Planning – Assets and Acquired Services, which contains content for IT assets and IMT enabled projects (IT represents a sizeable amount of the total assets). This draft Plan is now under review by both senior NRCan management and TBS towards creating a final version for submission to TBS in Fall 2009.
  • Developed enterprise approaches for planning and reporting to reduce the burden of information collection essential to the planning of IMT in the Department.
  • Launched a Project Management Information System (PMIS) IT Task Team to review the existing 7 PMIS systems to determine if any single or one enhanced system could support departmental project management information requirements. A recommendation was submitted to EIC for consideration.
  • Developed/enhanced a number of project management processes and templates. Validation is under way, in terms of the approach and implementation plans for a future deployment of the project management discipline for IMT. A well defined and implemented project management discipline is essential for the future deployment of the Portfolio Management Framework that addresses how IMT Projects will be identified, selected, evaluated and controlled.
  • Developed a Business Case for the introduction of an Enterprise Resource Planning solution in NRCan, which will, as part of its scope, address Project Management information requirements.
  • A Project Management Framework for IMT projects has been approved and development is underway of an action plan for implementation.
  • Developed a number of policy instruments in support of NRCan's Enterprise Architecture and Government of Canada strategic directions as they relate to the management of IMT.
  • Endorsement of the NRCan Resource Wiki/collaborative approach continued with additional processes, users and knowledge migrating or being created on the Wiki (to date, over 1/3 of NRCan users are registered on Wiki).
  • Work continues on other pathfinders to determine the collaborative tools direction for NRCan and provide a more enterprise approach to the development of knowledge.
  • The NRCan library consolidated onto a single interface and platform the EBSCO platform and eight bibliographic databases to enable all NRCan users access at an enterprise level.
  • Work in support of IMT Architecture Program progressed (to date, 29 articles have been written on the NRCan Resource Wiki and includes the Enterprise Architecture Blueprint that sets out the principal IMT architectural goals).
Internal Services


Table 7: Green Procurement

Meeting Policy Requirements

Has the department incorporated environmental performance considerations in its procurement decision-making processes?


In progress

Summary of initiatives to incorporate environmental performance considerations in procurement decision-making processes:

  • Have support of the policy reflected in performance agreements for the second year running.
  • Plan to implement training and awareness activities, and a departmental protocol for green procurement so that all employees within the organization are aware of considerations, responsibilities and procedures and are applying these to departmental procurement.

Results achieved:

Performance management agreements have continued to include the contribution of, and support for green procurement policy objectives.

Green procurement training (for material managers and procurement personnel) chosen: Campusdirect course on Green Procurement (course already developed by and available from Canada School of Public Service)

Contributions to facilitate government-wide implementation of green procurement:

In its role as identified in the Policy on Green Procurement, NRCan contributed expertise to Public Works and Government Services Canada for a number of purposes to facilitate government-wide implementation, including but not limited to the:

  • Development of the "Guideline – Integrating Environmental Considerations Into Departmental Procurement Management Frameworks"
  • Further refinement of the Performance Measurement Framework
  • Revisions of the Green Procurement Communications Plan
  • Planning for and development of materials for the first interdepartmental Green Procurement Forum.
  • Development of Green Procurement templates and plans for commodity reviews
  • Development of the "Guideline for Greening Services Procurement"

Green Procurement Targets

Has the department established green procurement targets?


In progress

Are these green procurement targets the same as those identified in your Sustainable Development Strategy?


Yes

Summary of green procurement targets:

  • Have consulted widely in the department as part of the engagement activities of the broader NRCan Green Operations initiative and in the context of implementation of the policy, in order to identify commodity areas that will form the basis of an initial round of target-setting, that in some cases present opportunities for improvement in the various phases of the life cycle.
  • The target areas identified are paper, internal printing and travel (a key area of high spend). These target areas have been endorsed by senior management (Departmental Management Committee). Potential approaches have been developed.
  • In the cases of paper and internal printing, the approaches and targets will be firmed up to enable commencement of further work to implement in 2009-10. This may also be the case for the area of travel.

Results achieved:

The Shared Services Office (SSO) has "paper-reduction" projects underway that are expected to result in significantly less paper used in 2009-10, e.g. completion of amendment phase of e-procurement (rolled out February 2008), full ramp up of electronic procurement request system to replace paper submissions. Related to "paper-reduction", the SSO completed a pilot project for the reduction of printing devices which involved removing a number of local printers as well as replacing other printers with more efficient ones. Along with reducing paper usage by making printers less convenient, there are also energy savings resulting from this printer reduction initiative.

  • SSO plans to finalize research on the best way to measure the amount of paper usage (working with PWGSC since they are the buyer for all government).


Table 8: Response to Parliamentary Committees and External Audits



Response to Parliamentary Committees
The Minister of Natural Resources has not presented any responses to parliamentary committees during 2008-09.


Response to the Office of the Auditor General (OAG)

As a result of the new Audit Policy, the OAG annually sends the Audit Branch all the previous recommendations it has made to NRCan that are not considered completed for an update. For 2008-09, the department was asked to update and assess the status of previous recommendations. Responses were provided accordingly by the audited entities and assessed by the Audit Branch according to their responses. We however, cannot provide assurance on the responses.

The OAG audits included:

2003 – 10 CESD Chapter 1 – Managing the Safety and Accessibility of Pesticides
OAG recommended that NRCan should collaborate with other departments and agencies such as Health Canada, Environment Canada, etc. to better support pesticide regulation.

Response: As per the recommendation, NRCan continued to collaborate with agencies and departments with pesticide-related mandates. The relevant departments signed an MOU in 2008. Through this agreement, departments have identified their research and regulatory needs.

2003 – 11 OAG Chapter 10 – Other Audit Observations
OAG recommended that NRCan should improve its financial information and monitoring frameworks as such relate to managing contribution programs and scientific equipment. The objective of this recommendation is to ensure that such practices conform to Treasury Board Policy.

Response: NRCan has a Centre of Expertise which handles such issues. The Centre has added additional resources to enhance the management of contribution agreements. Secondly, improvements and new controls have been added to the financial system to safeguard the integrity of scientific equipments.

2005 – 04 OAG Chapter 1 – NRCan – Governance and Strategic Management
OAG recommended that NRCan should document the competencies and capacities of its current workforce and develop a human resources plan that will enable the department to replace the large percentage of key staff eligible to retire in the next few years.

Response: NRCan has developed a departmental HR Plan. This plan sets out specific strategies and timelines for five areas of focus: workforce capacity; competencies; employment equity; official languages; and workplace well-being.

2005 – 04 OAG Chapter 1 – NRCan – Governance and Strategic Management
OAG recommended that NRCan should develop plans and improve its risk analysis to deal with emergency situations particularly in areas where it has the lead federal role.

Response: As per the recommendations of the OAG, NRCan has continued to review and update the department's 11 Civil Emergency Plans. During FY 2008-09, two plans were tested through a joint exercise which engaged senior management and the National Energy Board. A third plan was validated through a major Government of Canada exercise in preparation for the 2010 Games. In addition, the department has updated its Corporate Risk Profile.

2004 – 10 CESD Chapter 4 – Assessing the Environmental Impact of Policies, Plans and Programs
It was recommended that Deputy Heads of departments and agencies ensure that their respective organizations are fully implementing the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals.

Response: NRCan has continued to use the management and accountability mechanisms and structures designed to uphold the implementation of this objective. In particular, outreach and training sessions are continuously provided to employees and managers on the requirements of this directive.

2005 – 04 OAG Chapter 1 – NRCan – Governance and Strategic Management
OAG recommended that NRCan should improve its performance measurement framework and reporting in order to provide parliamentarians with better information on the results and outcomes of its programs.

Response: NRCan has completed a Strategic Framework that articulates a new vision, mission and principles for the department. The framework includes NRCan's new Strategic Outcomes and was approved by the Treasury Board. The performance measurement component and other key elements in the framework have been strengthened to enhance strategic business planning and reporting of results and outcomes.

2005 – 04 OAG Chapter 1 – NRCan – Governance and Strategic Management
OAG recommended that NRCan should institute a strategic planning process across all sectors and develop a corporate strategic plan.

Response: Consistent with the OAG's recommendation, NRCan has articulated a new departmental vision and strategic direction through the Strategic Framework. Working through a DG-level task group, a corporate planning network and the Strategic Planning and Reporting Division, NRCan's Departmental Management Committee (DMC) has been consistently steering the development and implementation of corporate-level integrated strategic planning and reporting processes in the department.

2005 – 04 OAG Chapter 1 – NRCan – Governance and Strategic Management
OAG recommended that NRCan should improve its governance processes especially with respect to mandates, resources, roles and responsibilities for managers of horizontal issues.

Response: NRCan has instituted a DM-led Policy and Science Management Committee which ensures effective horizontal collaboration within NRCan on departmental and government-wide initiatives. Also, the DM has set up five Horizontal Task Teams (HTT) co-chaired by ADMs. These HTTs constitute a key component for the implementation of the Strategic Framework.

2005 – 04 OAG Chapter 1 – NRCan – Governance and Strategic Management
OAG recommended that NRCan should determine and obtain the relevant industry information that it needs to support strategic decision making by producing it internally or obtaining it from outside sources.

Response: NRCan's Science and Policy Integration (SPI) sector is leading the department's corporate-level efforts to obtain, analyze and disseminate the industry information needed to support strategic decision-making. The sector has created the necessary structures and mechanisms to support that process.

2006 – 09 CESD Chapter 1 – Managing the Federal Approach to Climate Change
It was recommended that NRCan should ensure that the model, data and results from the 2005 memorandum of understanding with the automotive industry are independently verified and that the results of the publication are reported publicly.

Response: NRCan is in the process of finalizing a request for proposals to select an independent third party to perform verification of the accounting model used to measure the auto industry's progress against the first interim target established in the memorandum of understanding. It may also be noted that government and industry have jointly released three progress updates. Public workshops were offered to stakeholders after each of the three progress updates.

2006 – 09 CESD Chapter 1 – Managing the Federal Approach to Climate Change
It was recommended that in any future voluntary agreements, NRCan should establish requirements similar to those found in Environment Canada's 2001 Policy Framework for Environmental Performance Agreements.

Response: No voluntary agreements have been established since the release of the CESD reports.

2006 – 09 CESD Chapter 2 – Adapting to the Impacts of Climate Change
It was recommended that NRCan and Environment Canada should collaborate with other pertinent federal departments and stakeholders to strengthen and develop initiatives relating to climate change and adaptation.

Response: NRCan continues to collaborate with Environment Canada and other pertinent stakeholders to advance the Government's climate change and adaptation plans.

2006 – 09 CESD Chapter 3 – Reducing Greenhouse Gases
It was recommended that NRCan should lead the development of a wind power strategy for Canada. This would be done in collaboration with the provinces and wind industry.

Response: NRCan developed a discussion paper titled, "Towards an Enabling Wind Energy Policy Framework in Canada" which served as the basis for consultations with industry, utilities, environmental groups and provinces in Ottawa and Montreal over the course of 2008. The department is also developing a Wind Technology Roadmap, an industry-led report that will identify key issues for wind energy development in Canada. Through the development of these two frameworks, NRCan is continuing to support the vision for wind power in Canada.

2006 – 09 CESD Chapter 3 – Reducing Greenhouse Gases Emitted During Energy Production and Consumption
It was recommended that NRCan should complete the evaluation of the Wind Power Production Incentive (WPPI) that it committed to in 2002.

Response: An evaluation of renewable energies including the WPPI is underway.

2006 – 09 CESD Chapter 3 – Reducing Greenhouse Gases Emitted During Energy Production and Consumption
It was recommended that NRCan, on behalf of the Government of Canada should make clear to Parliament by the end of 2006 how and to what degree the country would reduce greenhouse gas emissions in the oil and gas sector.

Response: The Government has committed to reducing Canada's GHG emissions by 20 per cent from 2006 levels by 2020. Environment Canada (EC) is the lead department for the implementation of that plan. NRCan has been fully engaged in the development of the regulatory framework for industrial gas emissions and will continue to work closely with EC officials on issues relating to greenhouse gas emissions in the oil and gas sector.

2006 – 09 CESD Chapter 3 – Reducing Greenhouse Gases Emitted During Energy Production and Consumption
It was recommended that NRCan should ensure that clear and concrete greenhouse gas reduction targets are established for each of its programs funded for this purpose.

Response: All programs under the Clean Air Agenda (CAA) annually report on their costs and performance including GHG emissions reductions through the CAA Horizontal Performance Report which is submitted to Parliament through Environment Canada.

2006 – 09 CESD Chapter 3 – Reducing Greenhouse Gases Emitted During Energy Production and Consumption
It was recommended that NRCan should establish consistent practices for financial management and reporting of authorized funding and spending at the program level.

Response: To ensure effective interdepartmental management of clean air initiatives, NRCan is participating with 8 federal departments in the Horizontal Management Accountability and Reporting Framework (HMARF) for the Clean Air Agenda. The HMARF (approved by the Treasury Board on April 3, 2008) establishes consistent practices for the management and reporting of financial information at the program level.

2006 – 11 OAG Chapter 12– Role of Federally Appointed Board Members – Sustainable Development Technology Canada
NRCan and Environment Canada should consult the Treasury Board Secretariat and the Privy Council Office to clarify the necessity of restricting the participation of federal government appointees to the Board of Directors of Sustainable Development Technology Canada (STDC) in the decision-making process.

Response: The issue under consideration was covered under clause 15.20 in STDC Funding Agreement Three. That clause was withdrawn by the President of the Treasury Board in a letter to the STDC in February 2007. Subsequently, the agreement was formally revised and that clause was amended accordingly.

For further information, please contact NRCan's Internal Audit Branch.



KPMG audit of the Geomatics Canada Revolving Fund
KPMG opined that the financial statements present fairly, in all material respects, the financial position of the GCRF as of March 31, 2009, and the results of its operations and the changes in its financial position for the year then ended in accordance with the accounting principles for revolving funds of the Government of Canada. This is the fifteenth consecutive year since the inception of the GCRF that external auditors have issued an unqualified opinion on the financial statements of the Fund.


Table 9: Internal Audits



Name of Internal Audit Audit Type Status Expected Completion Date
Audit of NRCan's Treasury Board Submission Process Assurance Completed Q1 08/09
Audit of Forest Communities Program Management Control Framework Assurance Completed Q1 08/09
Audit of Server Management Assurance Completed Q4 08/09
Audit of Cash Management Assurance Completed Q4 08/09
Audit of Accounts Payable and Acquisition Cards Assurance Completed Q3 08/09
Audit Of Management of Repayable Contributions Assurance Completed Q3 08/09
Audit of Performance Management at the Contribution Agreement Level Assurance Completed Q3 08/09
Audit of Commercial Off-the-Shelf Software Assurance Completed Q4 08/09
Summary of Financial Management Framework Audits Assurance Completed Q4 08/09
Audit of Public Website Management Practices Assurance Completed Q4 08/09
Audit of Financial Forecasting Year-end Expenditures Assurance Completed Q4 08/09
Audit of Pay and Benefits Assurance Completed Q4 08/09
Audit of Values and Ethics Assurance Ongoing Q2 09/10
Custom Software Development Assurance Ongoing Q1 09/10
Audit of SSO Service Delivery Assurance Ongoing Q2 09/10
Audit of Statutory Transfer Nova Scotia and Newfoundland Assurance Ongoing Q2 09/10
Audit of Departmental Asset Management Assurance Ongoing Q2 09/10
Audit of GeoConnections Assurance Ongoing Q2 09/10
Audit of Strategic Planning Assurance Deferred FY 10/11
Audit of ecoENERGY Retrofit Homes Program Assurance Ongoing Q2 09/10
Audit of Treasury Board Authorities Assurance Ongoing Q2 09/10

Electronic Link to Audits Reports: http://nrcan.gc.ca/audit/index-eng.php.

Table 10: Internal Evaluation



Name of Evaluation Program Activity Evaluation Type Status Completion Date
CFS Climate Change Program Evaluation Adapting to a Changing Climate and Hazard Management Summative Complete February 27, 2009

Electronic Link to Report: http://nrcan.gc.ca/evaluation/index-eng.php.

Electronic Link to Evaluation Plan: http://nrcan.gc.ca/evaluation/index-eng.php.