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Minister’s Message

I am pleased to present the 2009–2010 Departmental Performance Report for Environment Canada. This report reflects the progress made towards achieving the Department’s Strategic Outcomes and the priorities identified in Environment Canada’s 2009–2010 Report on Plans and Priorities.

In these economic times, it is a greater challenge than ever to strike the right balance between environmental integrity and economic prosperity. In addressing the core issues on the Department’s agenda, we have engaged with stakeholders and worked closely with our provincial and territorial partners to ensure that our policy work is aligned with the realities they may confront regionally, domestically and internationally.

This consultative approach also informed the way in which the Government committed financial support for new and existing environmental programs. The result has been demonstrable progress for the environment and the economy through legislation and regulation, science, enforcement partnerships and service delivery to Canadians.

Climate change remained a focal point for policy over the past year. A major achievement was the successful negotiations of the Copenhagen Accord, which Canada supports as a significant breakthrough in the global effort to address climate change. In January 2010, Canada committed under the Accord to reduce our emissions by 2020 to 17% below 2005 levels. In addition, as part of Canada’s commitment to provide its fair share of fast-start financing under the Accord, we announced a $400 million contribution for 2010-2011 to help developing countries address climate change.

Over the past year, the Department moved forward on regulations to reduce greenhouse gas emissions from passenger vehicles and trucks, cut greenhouse gas and air pollution emissions from coal-fired electricity plants, develop a national standard for municipal wastewater treatment, and reduce emissions from volatile organic compounds which contribute to smog.

Environment Canada also delivered on its pledge to improve biodiversity and water quality, as well as to protect Canadians from air pollution and toxic substances. It demonstrated leadership on initiatives such as the Clean Air Agenda, the Federal Contaminated Sites Action Plan, the Chemical Management Plan, and the Federal Sustainable Development Strategy.

In the past year, with the passage of the Environmental Enforcement Act, the Department fortified its enforcement of environmental laws and regulations. The Department showcased its state of the art innovative technologies with its exceptional delivery of the official weather services and forecasts to the 2010 Winter Games, and Canadians benefitted from the expansion of the Air Quality Health Index program to more communities, helping Canadians take action to protect their health as it relates to air quality.

These are some of the highlights from the last year that represent Environment Canada’s ongoing commitment to stewardship and the protection of Canada’s environment. Over the coming year, we will continue to build on this foundation of accomplishment to ensure Canada’s environmental and economic excellence.

 

Section I: Departmental Overview

Raison d’être

A number of acts and regulations provide the Department with its mandate and allow it to carry out its programs. Under the Department of the Environment Act, the powers, duties and functions of the Minister of the Environment extend to and include matters relating to:

• the preservation and enhancement of the quality of the natural environment, including water, air and soil quality;
• renewable resources, including migratory birds and other non-domestic flora and fauna;
• water;
• meteorology;
• the enforcement of any rules or regulations made by the International Joint Commission relating to boundary waters; and
• the coordination of the policies and programs of the Government of Canada respecting the preservation and enhancement of the quality of the natural environment.

Additional authorities are provided in other acts and regulations administered by the Department, including the Species at Risk Act, the Canadian Environmental Protection Act, 1999 and the Federal Sustainable Development Act. In addition to the statutes administered by the Minister, Environment Canada has responsibilities under other statutes, including the Canadian Environmental Assessment Act, either as a federal or as a responsible authority. For details on departmental legislation and regulations, please see http://www.ec.gc.ca/default.asp?lang=En&n=48D356C1-1.

During the fiscal year under review, the Department undertook the development of new enforcement legislation aimed at strengthening the enforcement of wildlife laws through increased fines and new enforcement tools. The new Environmental Enforcement Act received Royal Assent in June 2009.

Environment Canada is also a key partner with other federal departments, where statutes such as the Arctic Waters Pollution Prevention Act, Canada Foundation for Sustainable Development Technology Act, and Marine Liability Act provide Environment Canada with secondary or shared responsibility for the successful execution of other federal departments’ mandates.

In addition to the legislative and regulatory responsibilities, Environment Canada has certain fiduciary obligations related to, for example, contaminated sites.

Strategic Outcomes and Program Activity Architecture

The Program Activity Architecture (PAA) is an inventory of a Department’s programs, and is therefore a basis for performance measurement as appears in the Departmental Performance Report.¹ Environment Canada’s 2009–2010 PAA included three Strategic Outcomes that supported the Government of Canada’s priority of a clean and healthy environment:

• Canada’s natural capital is restored, conserved and enhanced;
• Weather and environmental predictions and services reduce risks and contribute to the well-being of Canadians; and
• Canadians and their environment are protected from the effects of pollution and waste.

A fourth Strategic Outcome supported the Government of Canada’s priority of strong economic growth:

• Canadians benefit from the responsible development of the Mackenzie gas resources.

The Department’s 2009–2010 Strategic Outcomes and PAA, presented next, shows how programs are organized in the Department.

Environment Canada 2009–2010 Program Activity Architecture

[D]

Program Activity: Internal Services

Commencing in the 2009–2010 Estimates cycle, the resources for Program Activity: Internal Services are displayed separately from other Program Activities (see Section II); they are no longer distributed among the remaining Program Activities, as was the case in previous Main Estimates. This change, therefore, affects the comparability of spending and FTE information by Program Activity between fiscal years.

In-year Changes to Environment Canada’s 2009–2010 Program Activity Architecture

The table below shows 2009–2010 actual spending following in-year change of Mackenzie Gas Project into Environment Canada’s Program Activity Architecture.

Program Activity	Total ($ millions)
Biodiversity and Wildlife Program	138.1
Water Program	87.4
Ecosystems Initiatives Program	35.4
Environmental Science and Monitoring Program	105.8
Weather and Environmental Prediction Program	90.9
Chemicals Management Program	120.1
Legislation and Information Program	50.1
Clean Air Program	109.5
Mackenzie Gas Project*	6.5
Internal Services	351.3
Total Actual Spending	1,095.1

Totals may differ between and within tables due to rounding of figures. Excludes services received without charge and respendable revenues.

 * Responsibility for the Mackenzie Gas Project (MGP) has been transferred to the Minister of the Environment from the Minister of Industry, effective October 2008 by Order in Council. Changes to Parliamentary Authorities for this initiative occurred through Supplementary Estimates in 2009–2010. As such, Environment Canada is responsible to report on the Mackenzie Gas Project within its 2009–2010 unaudited financial statements. It is also important to note that this transfer did not affect the financials (planned and actual) or the expected results and performance of other Program Activities.

Performance Highlights for 2009–2010

Environment Canada made overall progress across the range of its responsibilities and priorities for 2009–2010. Highlights from the year follow.

Environment Canada represented the Government of Canada at the negotiations leading up to, and at, the 15th Conference of the Parties (CoP 15) to the United Nations Framework Convention on Climate Change, held from December 7 to December 18, 2009 in Copenhagen.

The Copenhagen Accord represented a major step towards achieving real progress on climate change and was fully consistent with Canada’s policy on climate change. The Accord includes both commitments by all major economies to take significant action to reduce emissions, as well as provisions for financing to support mitigation and adaptation efforts in developing countries. These include a collective commitment by developed countries to provide resources approaching $30 billion between 2010 and 2012. The Government announced a $400 million investment beginning in fiscal year 2010–2011 as Canada’s first step in delivering its fair share of the Accord’s commitment by advanced economies to provide financing assistance to developing countries to address climate change. The Copenhagen Accord reflects key Canadian negotiating principles and objectives on a wide range of issues including mitigation, adaptation, finance and technology. In January 2010, Canada submitted an economy-wide emissions target for 2020 of 17 percent below 2005 levels as part of its commitment to the Copenhagen Accord.

With respect to changes to the Department’s legislative responsibilities, the Environmental Enforcement Act received Royal Assent in June 2009. The Act includes increased penalties in environmental statutes under the authority of the Minister of the Environment. The Department also made strides in its environmental enforcement services, through achievement of the 2009–2010 plans to hire, train and deploy additional enforcement officers, and to enhance related laboratory capacity and technical support.

Under the requirements of the new Federal Sustainable Development Act, which received Royal Assent in June 2008, public consultations were launched on a proposed new government-wide strategy to improve how the environment is considered in policy and program development. The strategy also proposes a new approach to monitoring and reporting using objective and rigorous data, including data from the Canadian Environmental Sustainability Indicators (CESI).

The year also saw continued implementation of the Species at Risk Act (SARA). In response to a public commitment, a suite of draft policies has been developed and communicated to stakeholders explaining how the federal government intends to use SARA to meet its obligations. In addition, as of March 31, 2010, Environment Canada had completed 41 recovery strategies, 2 action plans and 2 management plans.

The Department made progress on its regulatory agenda. Implementation of the Chemicals Management Program achieved its 2009–2010 objectives. Specifically, 259 existing substances were under risk assessment, which led to the issuance of 44 substance profiles, 63 draft screening assessments and 152 final screening assessments. Draft regulations to limit greenhouse gas emissions from new vehicles beginning with the 2011 model year were prepared for release on April 1, 2010. New regulations were announced to reduce emissions of volatile organic compounds (pollutants that contribute to the formation of ground-level ozone and particulate matter, two key smog components) from products such as paints, finishes, dyes, and varnishes. Proposed Wastewater Systems Effluent Regulations were published in the Canada Gazette, Part I, in March 2010. When in force, the Regulations will set a minimum national effluent quality standard reflecting secondary wastewater treatment, as agreed to in the Canadian Council of Ministers of the Environment (CCME) Canada-wide Strategy for the Management of Municipal Wastewater Effluent, which was endorsed in 2009 by all jurisdictions except Newfoundland and Labrador, Nunavut and Quebec.

As a service provider to Canadians, the Department continued to provide its weather and related services 24-hours a day, 7 days a week and successfully forecasted several severe weather events such as 41 tornadoes during the summer of 2009 and Hurricane Bill. There was effective coordination with emergency measures organizations and environmental emergency agencies during these events, although it was recognized local notification around sudden and severe weather situations could be improved. The Air Quality Health Index Program was expanded to 14 new sites across Canada and enhancements were made to the automated telephone answering devices (ATAD), the Weatheroffice website and Weatheradio systems to increase reach and ensure effective delivery of weather information in both official languages.

The Vancouver 2010 Olympic and Paralympic Games showcased some exciting advances in weather forecasting that contributed to the Games’ success. Environment Canada spent four years monitoring and model building, so as to best ensure accurate predictions during the Games. The Department received international and national recognition of its meteorological research project at the Games, which used an array of measuring instruments, high-resolution forecast models and nowcasting (very short-term forecasts) techniques to provide forecasts of weather conditions, down to the scale of a single Olympic event.

Environment Canada worked through a wide variety of partnerships on priority issues. With respect to water, for example, Environment Canada worked collaboratively with its partners to clean up polluted and problem waters from coast to coast to coast, including the Great Lakes, Lake Simcoe, and Lake Winnipeg. Projects received funding under the Great Lakes Sustainability Fund, the Lake Simcoe Clean-Up Fund, and the Lake Winnipeg Basin Initiative to help clean up, protect and restore our lakes and rivers. The 2007 Canada-Ontario Agreement Respecting the Great Lakes Basin Ecosystem, set to expire on March 31, 2010, was extended to March 31, 2011. This extension allows Canada and Ontario to continue their work to protect and restore the Great Lakes while the governments of Canada and the United States negotiate amendments to the Great Lakes Water Quality Agreement. Also in partnership with the United States, Environment Canada began implementing the U.S.-Canada Clean Energy Dialogue (CED), including the first Report to Leaders in September 2009 that outlines progress made on the 20 projects identified in the CED Action Plan.

The conservation and protection of Canada's biodiversity was a focus for several initiatives in 2009–2010. For example, funds totalling $3.3 million² were allocated to 99 projects under the federal Aboriginal Funds for Species at Risk, with over 90 First Nations, Inuit and Métis organizations or community groups directly involved in the projects funded. Through the Habitat Stewardship Program for Species at Risk, $12.1 million was invested in various communities across Canada for the restoration of endangered and threatened species and other species at risk, and to help prevent other species from becoming a conservation concern. Also, during 2009–2010, the total value of properties donated through Environment Canada's Ecological Gifts Program was over $40 million, for a total of over $500 million since the beginning of the program.

Science and technology (S&T) is the foundation of Environment Canada’s work and accounts for the majority of the Department’s budget and staff. Over two-thirds of the Department's budget and more than half of its workforce is dedicated to science and technology. Environment Canada’s S&T activities generate the knowledge and tools needed to develop and implement policy and regulations, deliver services to Canadians, and disseminate information on environmentally sound technologies. Significant progress was made in 2009–2010 to implement Environment Canada's Science Plan, with a supplement to the Department’s technology role also added to the Plan during the year. In addition, the Department put in place two Web-based tools (Science Alert and the S&T Expert) to better transmit new research and share research expertise with both internal and external users of S&T.

Finally, on its management agenda, the Department redefined its Program Activity Architecture (PAA) for 2010–2011, to explain more clearly the Department’s programs and performance to Canadians. Important progress was also made on priorities related to financial and people management. For instance, a single source for financial data was made available to all managers in the Department so that a snapshot of the financial situation can be obtained anytime, thus allowing greater accuracy, timeliness and consistency in financial reporting. On people management, the 2008 Public Service Employee Survey results were validated, analyzed, and supported the introduction of common commitments in all 2010–2011 Branch Head performance agreements to address issues raised in the survey. Overall the Department saw a net rating improvement in five categories under the Management Accountability Framework (seven improvements and two declines) in 2009–2010, during which the Department received at least an acceptable rating in 17 of the 19 Areas of Management.

Lessons Learned during 2009–2010

The extent to which the Department met stated objectives across the full range of Program Activities included in its four Strategic Outcomes provides important opportunities for learning how to improve the Department’s performance in the future. The lessons are:

Lesson #1: The importance of environmentally oriented partnerships:

Program results achieved in 2009–2010 suggest that the Department can do even more to energize the multi-initiative, multi-partner approaches to protecting Canada’s fragile ecosystems, and monitoring and predicting Canada’s weather patterns.

First, there is a strong data collection and monitoring leadership role that the Department can play in making improvements to its system of gathering and interpreting long-term trend data so that all biodiversity-related initiatives can be informed and guided by better information about the state of ecosystems.

Second, the experiences in 2009–2010 suggest that the Department can use its unique science capacity and broad based program footprint to nourish its partnerships through constant infusion and dissemination of best practices.

Third, it is clear from the Department’s efforts on biodiversity, weather and environmental services that “outreach” to partners needs to remain a very high priority for years to come. Involvement of Canada’s Inuit leaders and communities in the development of a new Canadian position on trade in polar bears is an excellent example of outreach and partnership making for better results. The effective region-wide severe weather notifications associated with Hurricane Bill in Atlantic Canada is another example of successful outreach to the Department’s partners. In contrast, the challenges experienced in disseminating severe weather warnings past the regional level and down to local levels indicates there is still more outreach to be done by the Department towards establishing a truly effective and comprehensive severe weather warning network across Canada’s regions and communities.

Lesson #2: The importance of continuous improvement:

Another lesson to be drawn from the Department’s performance involves the concept and practice of continuous improvement. Over the course of 2009–2010, it became clear that more work is needed by the Department in terms of understanding the role that nutrients play in ecosystems. It was also clear that the Department’s continued improvements in implementing the Species at Risk Act (SARA) in 2009–2010 were headed in the right direction. For instance, draft policies were developed and communicated to stakeholders to clarify roles and responsibilities in the ongoing implementation of SARA, and this will help improve coordinated action and enhance administrative efficiency in the implementation process. Activities in 2009–2010 also identified the need for continuing improvements in both managing weather monitoring systems and the actual performance of weather prediction systems.

Learning from experience was advanced in 2009–2010 as the Department acted upon the results of audits and evaluations, and improved the effectiveness and efficiency of departmental policies, programs and management.

Finally, the singular achievements of the Department in 2009–2010 with respect to the Vancouver 2010 Olympic and Paralympic Games is an excellent example of the Department positioning itself to learn from its successes, with the specific winter forecasting models developed for the Winter Olympics now available to inform the development of other weather forecasting models.

Lesson #3: The value of horizontal integration:

Another useful development in 2009–2010 was the effectiveness of horizontally oriented efforts to integrate data gathering and thereby reduce duplication of data gathering activities, simplify and align information collection more directly with departmental priorities and strengthen program reporting. Section II of this Report presents several examples where consolidation of data gathering proved useful.

As well, the Department made effective advances in horizontal coordination of environmental protection activities across a number of federal departments, important developments which helped bring a number of federal mandates to bear on environmental priorities in a way that made the total federal effort on environmental protection more than the sum of its parts.

In summary, these “lessons learned” point the Department not in the direction of the re-engineering of major programs, but, instead, in the direction of demonstrating the multiplier effect that a relatively small number of core practices can have on the Department’s overall performance. The lessons learned by the Department in 2009–2010 clearly indicate that emphasizing and energizing partnerships, placing emphasis on continuous improvement, and increasing the use of horizontal integration practices can enhance the results generated by the Department’s programs. Moreover, this can expand the scale and range of resources being focused on Canada’s environment-related priorities as a result of multi-jurisdictional partnerships and increased integration of programs across a number of federal departments.

Performance Summary:

2009-2010 Financial Resources* ($ millions)

Planned Spending	Total Authorities	Actual Spending
992.5	1,173.7	1,095.1

Totals may differ between and within tables due to rounding of figures

* Excludes services received without charge and respendable revenues.

The Department’s planned spending represents that amount approved by Parliament through Main Estimates and increased by other anticipated adjustments for the balance of the year.  Throughout the year, new and renewed funding added a total of $181.2 million to Planned Spending, increasing the Total Authorities to $1,173.7 million. In addition to $52.3 million increased employee compensation funding, the main programs contributing to this increase were the Clean Air Regulatory Agenda ($25.2 million), the Mackenzie Gas Project ($9.5 million), Modernizing Federal Laboratories ($6.4 million) and a statutory payment to the Nature Conservancy of Canada ($29.3 million). The Actual Spending of $1,095.1 million (93 percent of Total Authorities) reflects the departmental expenditures as reported in the Public Accounts with a resulting surplus of $78.6 million. Much of this surplus was due to the decision to reprofile funds to future fiscal years for Sustainable Development Technology Canada (SDTC) ($12.5 million), National Vehicle Scrappage ($7.2 million) and the Great Lakes Sediment Remediation Program ($10.9 million).

2009-2010 Human Resources (Full-time Equivalents)

Planned	Actual	Difference
6,678	6,817	139

The human resources required to sustain an average level of employment over 12 months are based on a 37.5-hour work week. Environment Canada used 6,817 full-time equivalents (FTEs) in 2009–2010. This increase of 139 FTEs or 2 percent over the initial planned estimate of 6,678 FTEs reflects new FTEs associated with the $181.2 million new and renewed funding noted in the Financial Resources Table above. This FTE utilization represents an increase of 260 over that of 2008–2009 (6,557 FTEs).

Performance Summary by Strategic Outcome

The following tables present an overview of key achievements and progress towards program results during 2009–2010 and a summary of financial information for each Program Activity.³ For further information on performance by Strategic Outcome, please refer to Section II.

For an overview of the program activities within each Strategic Outcome and their ratings please refer to Performance by Program Activity – Overview.

Strategic Outcome 1: Canada’s natural capital is restored, conserved, and enhanced

Overview of key achievements in 2009–2010: In 2009–2010, Environment Canada worked to ensure consistent application of laws to protect Canada’s biodiversity. In the ongoing implementation of the Species at Risk Act, Environment Canada has developed and communicated a suite of policies that clarify administrative processes and inter-jurisdictional roles and responsibilities to enhance coordinated action. In addition, the Department developed a more streamlined approach to the development and posting of future species recovery planning documents. As of March 31 2010, Environment Canada completed 41 recovery strategies, 2 action plans and 2 management plans. Northwest Territories Protected Areas Strategy: The Edéhzhíe Working Group released its final recommendations report in November of 2009 (http://www.nwtpas.ca/area-edehzhie.asp), bringing this candidate National Wildlife Area one step closer to being formally designated a National Wildlife Area under the Canada Wildlife Act. Marine Protected Areas: Environment Canada completed a Policy Framework for Canada's Network of Marine Protected Areas in cooperation with Fisheries and Oceans Canada and with Parks Canada. The policy framework will set direction for the establishment of marine protected areas under the Health of the Ocean's (HOTO) initiative. Canadian Council on Ecological Areas (CCEA): Environment Canada led the further refinement of Conservation Areas Reporting and Tracking System (CARTS) including the identification of marine conservation areas and the move towards better online mapping and tracking tools. In 2009–2010, the Government invested $8 million to continue to implement the Great Lakes Action Plan, as well as $54 million and $15 million in the Great Lakes and the St. Lawrence, respectively, to clean up toxic sediment and pursue related science activities. The Department supported the sustainable use and management of ecosystems by advancing the implementation of an ecosystem approach with an emphasis on strengthening the ecosystem knowledge base and approaches to building integrated environmental monitoring and prediction tools.

($ millions)

Program Activity	2008-2009 Actual Spending	2009-2010				Alignment with Government of Canada Outcomes
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
Biodiversity and Wildlife Program Details	146.1	85.0	85.1	143.2	138.1	Clean and healthy environment
Water Program Details	81.5	94.3	94.3	99.2	87.4
Ecosystems Initiatives Program Details	33.0	40.2	40.2	42.4	35.4
Total (excluding Internal Services)	260.6	219.5	219.6	284.8	260.9
Internal Services	84.9
Total (including Internal Services)	345.5*

Note: Numbers exclude respendable revenues and services received without charge, and totals may differ between and within tables due to rounding of figures.

* The 2008–2009 Actual Spending included $84.9 million for Internal Services. With Internal Services removed⁴, the total actual spending for 2008–2009 was $260.6 million. A year over year comparison shows that in 2009–2010, there was an increase of $0.3 million, or 0.1 percent.

Strategic Outcome 2: Weather and environmental predictions and services reduce risks and contribute to the well-being of Canadians

Overview of key achievements in 2009–2010: Environment Canada continued to provide its weather and related services 24-hours a day, 7 days a week. The Vancouver 2010 Olympic and Paralympic Games were an opportunity to highlight Environment Canada’s outstanding weather prediction and environment services on the world stage. In 2009–2010, the Department successfully forecasted major events such as Hurricane Bill and the tornado outbreak in southern Ontario. There was strong coordination with emergency measures organizations and environmental emergency agencies during major meteorological events. The Air Quality Health Index Program was expanded to 14 new sites across Canada, and various enhancements were made to the automated telephone answering devices (ATAD), the Weatheroffice web site and Weatheradio systems to increase reach and ensure effective delivery of weather information to Canadians in both official languages. In response to key risks identified with weather services, strategies for moving forward are being developed as well as options for where key investments should be made as resources permit to reduce vulnerabilities and strengthen critical infrastructure.

($ millions)

Program Activity	2008-2009 Actual Spending	2009-2010				Alignment with Government of Canada Outcomes
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
Environmental Science and Monitoring Program Details	98.2	90.5	90.4	108.2	105.8	Clean and healthy environment
Weather and Environmental Prediction Program Details	83.2	86.4	86.4	93.0	90.9
Total (excluding Internal Services)	181.4	176.9	176.8	201.2	196.7
Internal Services	142.5
Total (including Internal Services)	323.9*

Note: Numbers exclude respendable revenues and services received without charge, and totals may differ between and within tables due to rounding of figures.

* The 2008–2009 Actual Spending included $142.5 million for Internal Services. With Internal Services removed⁵ from 2008–2009, the total actual spending was $181.4 million. In 2009–2010, there was an increase of $15.3 million, or 8.4 percent. This increase is mainly attributable to employee compensation cost ($8.7 million), capital spending for life-cycle management ($3.2 million) and incremental spending to supplement Adaptation program initiatives in support of Canada’s Clean Air Regulatory Agenda ($1.1 million).

Strategic Outcome 3: Canadians and their environment are protected from the effects of pollution and waste

Overview of key achievements in 2009–2010: The Government announced a $400 million investment in fiscal year 2010–2011 as Canada’s first step in delivering its fair share of the Copenhagen Accord’s commitment by advanced economies to provide financing assistance to developing countries to address climate change. The Accord reflects key Canadian negotiating principles and objectives on a wide range of issues including mitigation, adaptation, finance and technology. In January 2010, Canada submitted an economy-wide emissions target for 2020 of 17 percent below 2005 levels as part of its commitment to the Copenhagen Accord. The Department worked on the development of greenhouse gas emissions regulations for the transportation sector, specifically for new cars and light trucks for the 2011 and later model years. Progress also continued on approaches to reduce greenhouse gas emissions from industrial sectors in the context of a potential North American cap-and-trade system. A proposal for a Comprehensive Air Management System (CAMS) was developed through joint work with the provinces, industry and non-governmental organizations to improve air quality management in Canada. Proposed regulations were published in the Canada Gazette, Part I, to address wastewater effluent on a national basis. In partnership with Health Canada, Environment Canada continued to implement the Chemicals Management Plan. The Plan is on track and meeting all of its commitments within established timelines.6

($ millions)

Program Activity	2008-2009 Actual Spending	2009-2010				Alignment with Government of Canada Outcomes
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
Chemicals Management Program Details	74.4	127.2	127.2	132.0	120.1	Clean and healthy environment
Legislation and Information Program Details	75.0	47.9	47.9	53.4	50.1
Clean Air Program Details	77.6	138.1	138.1	138.0	109.5
Total (excluding Internal Services)	227.0	313.2	313.2	323.4	279.7
Internal Services	139.4
Total	366.4*

Note: Numbers exclude respendable revenues and services received without charge, and totals may differ between and within tables due to rounding of figures.

* The 2008–2009 Actual Spending included $139.4 million for Internal Services. With Internal Services removed⁷, the total spending for 2008–2009 was $227 million. A year over year comparison shows that in 2009–2010, there was an increase of $52.7 million, or 23.2 percent. This increase is primarily attributable to the realignment of the Enforcement program ($41.6 million) under the Chemicals Management Program Activity and increased spending for the following programs: National Vehicle Scrappage ($21.2 million), Clean Air Regulatory Agenda ($18.9 million) and Chemicals Management Plan ($2.8 million). These increases were offset by a reduction in payment to the Canada Foundation for Sustainable Development Technology ($31.5 million).

Strategic Outcome 4: Canadians benefit from the responsible development of the Mackenzie gas resources

Overview of key achievements in 2009–2010: In 2009–2010, the Mackenzie Gas Project Office8 (MGPO) played a central role in coordinating federal government activities in support of the Mackenzie Gas Project (MGP). Key achievements during the year included the following: The development of a project management plan that provided detail regarding the steps that the Government of Canada would take in order to respond to the Joint Review Panel (JRP) report that assessed the potential impact of the project upon the environment and the lives of the people living along the proposed pipeline route. The JRP report was released on December 30, 2009. The development of a consultation plan amongst federal departments that would enable the Government to undertake consultations with Aboriginal communities, as required, in order to complete the Government’s response to the JRP report. The finalization of a regulatory implementation plan that would be used by federal, territorial and northern regulators with responsibility for issuing nearly 7,000 permits and authorizations associated with the MGP.

($ millions)

Program Activity	2008-2009 Actual Spending	2009-2010				Alignment with Government of Canada Outcomes
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
Mackenzie Gas Project Details				9.7	6.5	Strong economic growth
Total	0.0	0.0	0.0	9.7*	6.5

Note: Numbers exclude respendable revenues and services received without charge, and totals may differ between and within tables due to rounding of figures.

* For 2009–2010, $37.6 million was allocated government-wide to the Mackenzie Gas Project, of which $9.7 million was assumed by Environment Canada.

Contribution of Department’s Priorities to Strategic Outcomes

In its 2009–2010 Report on Plans and Priorities, Environment Canada identified six program priorities and one management priority on which it would focus during 2009–2010. These priorities fully support ongoing progress towards program results in support of the Department’s Strategic Outcomes.⁹

That said, the Department faced challenges in contributing to the operational and management priorities. These are described in the Lessons Learned section.

The following table identifies the 2009–2010 priorities, provides a rating of performance for 2009–2010, and provides highlights of a few achievements and progress against these priorities, and the plans for meeting these priorities, as cited in the 2009–2010 RPP.

Operational Priorities for 2009–2010	Type	Performance Status	Linkages to Strategic Outcome(s)
1- Reducing greenhouse gas emissions domestically and through international agreements.	Ongoing	Mostly Met	Strategic Outcome 3
Progress was made in advancing approaches to reduce greenhouse gas emissions from industrial sectors in the context of a potential North American cap-and-trade system, including a draft set of rules and guidance for Canada’s Offset System published in June 2009. New regulations were announced and are being developed for the transportation and electricity generation sectors. Negotiations and climate change discussions over the course of 2009 led to the achievement of progress in the form of the Copenhagen Accord. The Accord, a political agreement by over 120 world leaders, represents a significant step towards the development of a more fair, effective and comprehensive post-2012 international climate regime. The Accord included the following achievements: It includes significant mitigation commitments by all major economies. It commits developing countries to undertake enhanced and more frequent reporting of greenhouse gas emissions and provides for the establishment of a process of international review of their actions. It commits developed countries to provide strengthened fast-start financing over the short term (to 2012) to help implement adaptation action in developing countries, and recognizes the importance of mobilizing both public and private sources over the long-term. It emphasizes the importance of taking urgent action on adaptation, with a particular focus on the poorest and most vulnerable developing countries. It sets the stage for the establishment of key mechanisms in support of reducing emissions from deforestation and technology transfer. The Government of Canada revised its national target to reduce greenhouse gas emissions to 17 percent below 2005 levels by 2020 to align with the U.S. target, and has inscribed this target in the Copenhagen Accord. Key regulatory steps were taken in the transportation sector to reduce greenhouse emissions. Beginning in 2011, Canada and the U.S. will have common standards for limiting tail pipe emissions from new cars and light trucks.
2- Protecting Canadians from air pollution and toxic substances.	Ongoing	Mostly Met	Strategic Outcome 3
Implementation of the Chemicals Management Plan met its deliverables within the established timelines. In 2009–2010, 259 existing substances were under risk assessment, which led to the issuance of 44 substance profiles, 63 draft screening assessments and 152 final screening assessments. In 2009–2010, a proposal for a Comprehensive Air Management System (CAMS) was developed through joint work with the provinces, industry and non-governmental organizations to improve air quality management in Canada. The Department published new regulations designed to reduce volatile organic compounds (VOC) emissions from automotive refinishing products and VOC concentration limits in the architectural coatings sector.
3- Strengthening the meteorological and environmental services to Canadians.	Ongoing	Mostly Met	Strategic Outcome 2
In 2008, the Commissioner of the Environment and Sustainable Development (CESD) conducted an audit on the way Environment Canada manages its severe weather-warning program, identifying a number of issues with the Department’s ability to deliver high-quality warnings, forecasts and related products and services to Canadians in a sustainable manner. Examples of improvements to the warning and forecasting programs taken in 2009–2010 that help address these issues are the reinvestment and advancement in forecasting through the introduction of the Ninjo forecaster workstation, the continued progress with Public Safety Canada in the development of a national public alerting system (NPAS) for Canada, and the development of a long-term strategy to improve the effectiveness of Environment Canada's warning production and delivery system. Environment Canada provided weather prediction services essential to the success of the Vancouver 2010 Olympic and Paralympic Games and had considerable success in forecasting major severe weather events; both Nova Scotia and Newfoundland acknowledged Environment Canada’s performance in the preparations for Hurricane Bill. With an eye on the future to address key risks identified with weather services, strategies for moving forward are being developed as well as options for where key investments should be made, as resources permit. These strategies are intended to better position the Department to move forward with the resourcing of priorities and the continued strengthening of these services in the years immediately ahead.
4- Taking action to improve biodiversity and water quality.	Ongoing	Mostly Met	Strategic Outcome 1
The year under review saw continued implementation of the Species at Risk Act (SARA), and the start of the five-year review of SARA. This included development and communication of a draft suite of policies explaining the federal government’s understanding of, and obligations under SARA. The conservation and protection of Canada's biodiversity was advanced through partnerships such as funding under the federal Aboriginal Funds for Species at Risk and the Habitat Stewardship Program for Species at Risk and donations through the Ecological Gifts Program. The Protected Areas Program has expanded support for habitat conservation in the North with six National Wildlife Areas identified in the Northwest Territories and three established in Nunavut. Consideration is being given to Sable Island off the coast of Nova Scotia to be changed from a National Wildlife Area to a National Park. The Department made significant contributions to the United Nations Environment Programmes (UNEP) Global Environmental Monitoring System (GEMS) to allow the program to expand to add data quality management activities, water assessments and capacity building. GEMS is the only global water quality monitoring system and its activities include assessments of freshwater lakes, reservoirs, rivers and ground waters, maintenance of a global water quality database and management of an international network of participating countries, to support global environmental assessments, water resource management and economic and environmental decision making. Work continued with the United States to amend the Great Lakes Water Quality Agreement, and to modernize the Agreement to address new challenges in water quality while strengthening efforts to reduce toxic pollution in the Great Lakes. Environment Canada provided support to Foreign Affairs and International Trade Canada in drafting legislation to strengthen prohibitions on the bulk removal of Canada’s water outside the country. In 2009–2010, the Government invested $8 million to continue to implement the Action Plan for the Great Lakes, as well as $54 million and $15 million in the Great Lakes and the St. Lawrence, respectively to clean up toxic sediment and pursue related science activities. Environment Canada met second year commitments for the Action Plan for Clean Water through the delivery of the Lake Simcoe Clean-up Fund and Lake Winnipeg Basin Stewardship Fund, and by providing leadership, science and expertise to the Lake Winnipeg Basin Initiative.
5- Enhancing the enforcement program to improve environmental outcomes.	Ongoing	Met All	Strategic Outcomes 1 and 3
The new Environmental Enforcement Act, which received Royal Assent in June 2009, strengthened the enforcement of wildlife laws through increased fines and new enforcement tools. A strategic enforcement framework was developed and implemented for planning and decision-making to strengthen the identification of priorities that focus on the most serious wildlife risks and threats. The Department successfully completed plans to expand the Enforcement Program by 50 percent through the hiring, training, and deployment of additional enforcement officers. Operational and management capacity, and laboratory and technical support, were increased.
6- Continuing to take leadership on horizontal environmental initiatives.	Ongoing	Mostly Met	Strategic Outcomes 1, 2, and 3
The Air Quality Health Index Program has been accepted by nearly all provincial partners, local partners, and the media. It has become one of the most successful programs under the Adaptation Theme in the Government of Canada Clean Air Agenda. Partners were engaged on the Contaminated Sites Program to deliver key commitments, including Economic Action Plan commitments, and good progress was made on planning for program renewal. Under the requirements of the new Federal Sustainable Development Act, Environment Canada led the process to prepare and publish the Federal Sustainable Development Strategy consultation paper. The Government of Canada committed $500 million for Sustainable Development Technology Canada’s NextGen FundTM to support the establishment of commercial scale demonstration facilities for the production of next-generation renewal fuels. The funding is equally divided between Natural Resources Canada and Environment Canada.

Management Priorities for 2009–2010	Type	Performance Status	Linkages to Strategic Outcome(s)
7- Strengthening the support to Program Activities through enhancement of key enabling functions	Ongoing	Mostly Met	Strategic Outcomes 1, 2, 3 and 4
Progress has been made on integrated planning by improving linkages across financial, human resources, information technology/management, and communications planning components. Specifically, during the operational planning process, financial resource requirements (salary, Operation and Maintenance, Grants and Contributions and Capital) and non-financial planning components (HR, IM/IT, Communications) were solicited from line managers through a single department-wide call letter and common templates. This effort was assisted by the participation of enabler portfolio managers (e.g., HR, Communications, IM/IT) who worked with line managers in defining these resource requirements. The departmental financial position is now presented through a standard single source for financial data in electronic format that is generally updated weekly and is available to all managers across the Department. The single source of financial data for internal departmental reporting ensures consistency and accuracy. Key departmental priorities were supported through the development of policy advice for consideration by senior management; interdepartmental policy processes were successfully coordinated and supported and core policy activities—including the fulfillment of legislated reporting requirements—were effectively managed.

Note: Performance status ratings definitions are provided here.

Performance by Program Activity – Overview

The following table presents an overview of the performance status ratings for each of the expected results identified in the Environment Canada 2009–2010 RPP. The performance status ratings provide an assessment of progress achieved during the year against the indicators and targets or activities and outputs for results as stated in the RPP. Details regarding the progress achieved during 2009–2010 are provided in Section II of this DPR.

Program Activities	Expected Results as per 2009–2010 Report on Plans and Priorities	Performance Status, 2009–2010
Strategic Outcome 1: Canada's natural capital is restored, conserved and enhanced
Biodiversity and Wildlife Program	Populations of wildlife, in particular migratory birds and species at risk, are maintained at healthy levels	Mostly Met Details
	Habitats for healthy populations of wildlife, in particular migratory birds and species at risk, are protected and conserved	Somewhat Met Details
Water Program	Risks to aquatic ecosystems resulting from human activity are reduced	Somewhat Met Details
Ecosystems Initiatives Program	Beneficial uses and environmental quality in priority ecosystems are maintained or restored	Mostly Met Details
	Potential significant adverse environmental effects of projects/ plans/ programs/ policies subject to federal environmental assessment legislation and Cabinet directives are avoided or mitigated	Exceeded Details
Strategic Outcome 2: Weather and environmental predictions and services reduce risks and contribute to the well-being of Canadians
Environmental Science and Monitoring Program	Environment Canada and partners receive high-quality observations that allow them to identify, analyze and predict weather, air water and/or climate conditions	Mostly Met Details
	Environment Canada and partners receive high-quality weather and environmental prediction information (or models) that allow them to identify, analyze and predict weather, air, water and/or climate conditions	Mostly Met Details
Weather and Environmental Prediction Program	Canadians use weather forecasts for decision making	Mostly Met Details
	Weather and climate-sensitive industries, governments and institutions are aware of and benefit from Environment Canada's weather, climate, water and other services in their economic decision making and planning	Met All Details
Strategic Outcome 3: Canadians and their environment are protected from the effects of pollution and waste
Chemicals Management Program	Risks to Canadians and impacts on their environment posed by toxic and other substances of concern are reduced	Mostly Met Details
Legislation and Information Program	Facilities releasing pollutants to the environment comply with public reporting requirements	Mostly Met Details
	Regulations and orders made by Environment Canada under the Canadian Environmental Protection Act, 1999 (CEPA 1999) and under the Fisheries Act (FA) comply with the Cabinet Directive on Streamlining Regulation, and with statutory and other policy requirements	Met All Details
Clean Air Program	Risks to Canadians, their health and their environment from air pollutants and greenhouse gas emissions are reduced	Mostly Met Details
Strategic Outcome 4: Canadians benefit from the responsible development of the Mackenzie gas resources
Mackenzie Gas Project	Not applicable – please see Strategic Outcome 4 for more details	N/A

Note: Performance status ratings definitions are provided here.

Risk Analysis

In outlining the key risks that affected Environment Canada’s plans, priorities, performance, and decision-making process, it is important to consider the broader context in which the Department operated in 2009–2010. While economic policies and priorities remained at the forefront of the government agenda, preserving Canada’s environment remained a high priority for the government. Budget 2010 included new measures totalling more than $190 million to support a cleaner and more sustainable environment.

During 2009–2010, renewed interest and heightened expectations for progress on tackling climate change and other environmental issues became apparent. Anticipation of an international agreement for the post-2012 period places considerable pressure on the Department as it supports the Government in negotiating with international partners on climate change and in developing a broad range of regulations aimed at reducing greenhouse gas emissions to limit the potentially negative consequences of excessive global warming. Developing solutions that serve the mutual interests of Canada and its partners from both an economic and environmental perspective was a particular challenge. Canada typically seeks to align its policies with those of its international partners in order to facilitate trade and minimize potentially negative impacts to Canada’s international standing and to Canadian business that would result from differing approaches, standards, targets and implementation timelines.

Environment Canada faced the challenge of managing relationships effectively with interested parties and stakeholders, both domestic and international. These relationships, embodying varying degrees of dependency for Environment Canada, are often with those holding differing views in terms of policy or the pace at which progress should be attained on environmental issues. If business relationships with partners are not well managed, or if there is a failure on the part of partners, negative impacts on program or service delivery could result. The large number of partners with whom Environment Canada deals, coupled with the speed and sophistication with which they communicate their positions, necessitated a clear, consistent and timely communication effort on the part of the Department. Mechanisms to support this effort included joint working groups, such as that established by the Department with its U.S. counterparts to deliver on the Clean Energy Dialogue's 20 commitments.

Operationally, the risk for Environment Canada is linked to its critical interdependencies with various partners, and the renewal of agreements. To collaborate effectively with domestic, continental and international partners, the Department has taken a proactive approach to enhancing relationship management. For instance, partnership agreements are established well in advance with other government departments (OGDs). For example, in summer 2009, a new long-term agreement was concluded between Environment Canada and NAV CANADA for the provision of aviation weather services. 

Internally, some key risks related to human resource, financial and information management as well as business continuity emerged in 2009–2010 that could affect the Department’s capacity to meet its priorities in subsequent years. For example, effective resource management can be expected to be challenged by the need for fiscal restraint, as a result of the economic downturn. Current mitigation activities involve enhancing departmental integrated planning, streamlining resource allocation processes and increasing performance measurement capacity.  In the context of managing risks related to resource management and information for decision-making, the Department continued to make progress towards provision of improved tools and processes through the Corporate Accountability and Administrative Renewal (CAAR) initiative. With this initiative, the Department is seeking to streamline and standardize its system of internal controls, improve financial information through the implementation of tools such as Oracle Hyperion and Asset Lifecycle Management, and increase the efficiency of business processes.

During the period under review, government management priorities continued to revolve around the Public Service Renewal initiative directed by the Clerk of the Privy Council. To this end, the 2009–2010 Clerk’s Public Service Renewal Action Plan committed all departments to demonstrate progress on integrated human resource and business planning, recruitment, employee development and enabling infrastructure.

In large part, the Clerk’s call for action was based on the recognition that a large number of employees are expected to retire in the next five years. In the Department’s case, this will be an enormous challenge, given that its workforce, located in 100 communities across Canada, has expertise in a broad range of fields including biology, environmental sciences and assessment, meteorology, chemistry, engineering, hydrology, business, commerce, communications, economics, law enforcement, finance, informatics, law, library science, policy, social sciences and toxicology. The Department, therefore, faces the challenge of maintaining the knowledge and expertise to deliver on its mandate and achieve its strategic outcomes. To mitigate this risk, and as part of Environment Canada’s response to the objectives embedded in the Clerk’s 2009–2010 Public Service Renewal Action Plan, the Department developed a talent management framework to support the meeting of departmental priorities for 2009–2010 and beyond. The framework consists of four elements: more effective and efficient recruitment and staffing; improving representativeness; retaining and enhancing talent through learning and development; and retaining and strengthening capacity through succession planning.

Providing timely policy analysis and information remains a key component of the Department’s business. Access to timely, consistent and accurate information is crucial for the proper functioning and governance of an organization. The sufficiency, availability and correct flow of management information impact the Department’s ability to make informed decisions, adapt to change, respond to emergencies and ensure compliance with regulations. To improve data quality and availability, the Department is implementing an integrated information management (IM) plan by establishing key IM services and products, promoting policies and best practices for the management of information, and implementing new technologies to support information management. The Department continues to take steps to achieve compliance with the Government’s Management of Information Technology Security (MITS) requirements and has made progress on its Business Continuity Planning program.

In summary, in the face of identified risks, the Department has implemented strategies to foster strong relationships with partners, better manage resources, address human resource needs, and enhance information management. The Department will continue to advance risk management practices by embedding risk management into departmental planning, and by better linking risk and performance management.

Expenditure Profile

The following chart depicts the Department’s spending trend over a six year period (three-year Actual Spending reported in Public Accounts and three year Planned Spending as per the 2010–2011 Report on Plans and Priorities).

[D]

As seen in the chart above, Environment Canada’s actual spending as per Public Accounts for 2009–2010 was $1.095 billion, a year-over-year decrease of $25.3 million or 2 percent from 2008–2009 spending. This slight net decrease is mainly due to reduced payments to foundations such as Nature Conservancy Canada and Sustainable Development and Technology Canada (SDTC). These decreases were offset by increased spending to implement the National Vehicle Scrappage Program and freshwater initiatives, as well as incremental spending related to Canada’s Economic Action Plan such as the Modernizing Federal Laboratories Initiatives.

The increase in actual spending between 2007–2008 and 2008–2009 ($123.4 million) is primarily attributed to temporary funding supporting the regulatory work of the Chemicals Management Plan, the Clean Air Agenda, the implementation of the National Vehicles Scrappage Program and payment to the SDTC foundation for delivery of the NextGen Biofuels Fund^TM. In 2008–2009, the responsibility for the Toronto Waterfront Revitalization Initiative and Harbourfront Corporation was transferred to the Department, which also contributed to the increase in spending.

The decreased planned spending from 2010–2011 to 2012–2013 is the result of sunsetting and reduced funding for initiatives including the Chemicals Management Plan, Clear Air Agenda and Federal Contaminated Sites Action Plan. Sunsetting programs are subject to Government decisions to extend or enhance funding, The outcomes of these decisions will, therefore, be reflected in both the Department’s future budget exercises and Reports on Plans and Priorities.

The spending trend chart illustrates the Department’s Main Estimates, Planned Spending, Total Authorities and Actual Spending for the last three years.

[D]

(1)  Actual Spending includes Canada's Economic Action Plan (CEAP) displayed separately for information purpose.

(2) CEAP figures included in the graph above exclude contributions to Employee Benefits Plans (EBP)

Canada’s Economic Action Plan (CEAP) Initiatives

Budget 2009 provided CEAP funding to Environment Canada for the following five initiatives:

• Modernizing Federal Laboratories: Funding was provided to address deferred maintenance at six Environment Canada laboratories over two years.
• Accelerating the Federal Contaminated Sites Action Plan: Funding was provided to accelerate assessment and remediation activities on federal contaminated sites under the Federal Contaminated Sites Action Plan (FCSAP).
• Canada’s Environmental Sustainability Indicators (CESI) Initiative: Funding was provided to support the production of the indicators for clean air, clean water and greenhouse gases, to improve the CESI website and annual report, and to implement an engagement strategy to increase awareness of CESI products.
• Promoting Energy Development in Canada’s North: Funding was provided to support the coordination and reporting on federal government activities required for the Joint Review Panel’s environmental assessment and the Government’s response to the report after its release in December 2009.
• Arctic Research Infrastructure: Funding was provided to support the development and expansion of Arctic research field camp facilities at seven sites in Nunavut and the Northwest Territories.

As seen in the chart above, CEAP funding had little impact on the overall departmental spending trend in 2009–2010.

Voted and Statutory Items

This table shows the voted items Parliament approved through the Main Estimates with its supply bills. The statutory items are included for information purposes.

($ millions)

Vote No. or Statutory Item (S)	Truncated Vote or Statutory Wording	2007-2008	2008-2009	2009-2010
		Actual	Actual	Main Estimates	Actual
1	Operating expenditures	700.5	763.7	736.3	818.6
5	Capital expenditures	35.7	45.0	44.5	47.3
10	Grants and contributions	106.9	164.5	129.8	101.5
(S)	Minister of the Environment: salary and motor car allowance	0.1	0.1	0.1	0.1
(S)	Contributions to employee benefit plans	81.1	81.2	81.9	98.0
(S)	Spending of proceeds from disposal of surplus Crown assets	1.0	0.8	0.0	0.5
(S)	Nature Conservancy of Canada	70.2	46.1	0.0	29.3
(S)	Grant to the Canada Foundation for Sustainable Development Technology	1.6	19.0	0.0	0.0
Subtotal - Actual Spending		997.0	1,120.4	992.6	1,095.1

Notes:

• Excludes services received without charge and respendable revenues.
• Totals may differ between and within tables due to rounding of figures.

The expenditure of $1,095.1 million in 2009–2010 represents a year-over-year net decrease of $25.3 million, or 2 percent. This decrease is mainly attributable to reduced grant payments to non-government organizations such as the Nature Conservancy of Canada and the Canada Foundation for Sustainable Development Technology.

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