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Minister's Message

The Honourable Christian Paradis, P.C., M.P.

It is my pleasure to present the Departmental Performance Report for Natural Resources Canada (NRCan) for the reporting period ending March 31, 2010.

During this time, Canada began to emerge from the global recession with one of the strongest economies in the industrialized world. Its natural resources played a central role in this resurgence.  The global economic recovery, however, is still fragile. The Government has therefore remained committed to keeping Canada’s economy on track by working to complete the delivery of its successful Economic Action Plan (EAP).

Through the EAP, NRCan significantly expanded its ecoENERGY Retrofit – Homes program, taking direct action to maintain and create jobs when they were needed and in a way that effectively reduces Canada’s greenhouse gas emissions. And NRCan’s launch of the Clean Energy Fund is advancing Canadian leadership in tomorrow’s clean energy technologies, creating long-term economic opportunities and environmental benefits.

NRCan also delivered EAP investments that are enhancing the competitiveness of the forest sector, driving long-term economic and environmental sustainability by fostering critical new markets, breakthrough products, and more efficient and environmentally-friendly processes. By rolling out the $1 billion Pulp and Paper Green Transformation Program, NRCan is helping the sector reduce GHG emissions, increase energy savings, and advance Canada’s renewable energy production.

To ensure that the mining sector continues to contribute significantly to Canada’s economy, NRCan launched the Green Mining Initiative, enabled new technologies and innovation in materials, and actively engaged in the on-going implementation of Canada’s Corporate Social Responsibility Strategy. These initiatives are creating a more sustainable mining industry for the benefit of all Canadians.

In the North, the department’s mapping, geomatics and geoscience-related activities support responsible development of the region’s resource potential, attracting private investment, strengthening our understanding of the local environment and building capacity amongst northerners. NRCan’s expertise continues to be used in mapping the underwater geological formations in the Arctic in support of Canada’s submission under the United Nations Convention on the Law of the Sea.  The expansion of NRCan’s Polar Continental Shelf Program not only strengthens one of the premier Arctic logistic facilities in the world, but also ensures the Program can play an integral role in the network of research infrastructure that the new Canadian High Arctic Research Station will anchor. 

Across Canada, NRCan’s commitment to improving both environmental protection and investor certainty for major resource projects continues to pay dividends for Canadians. By the end of 2009-2010, a total of 53 projects were being managed under NRCan’s Major Project Management Office, representing close to $100 billion in potential new capital investment.

By identifying priorities for 2009-10 that were meaningful to Canadians and delivering real results, NRCan advanced its vision of improving the quality of life of Canadians by creating a sustainable resource advantage. And as a result of the Department’s unwavering commitment to improving the competitiveness of Canada’s natural resource sector, advancing leadership on the environment and enhancing the security of Canadians, we can all look forward to a more sustainable and prosperous future.

The Honourable Christian Paradis, P.C., M.P. (Mégantic-L’Érable)
Minister of Natural Resources

Section I – Departmental Overview

Raison d’être

NRCan’s vision is to improve the quality of life of Canadians by creating a sustainable resource advantage. It seeks to achieve this vision by working to improve the competitiveness of the natural resource sectors by ensuring the continuation of their significant contribution to Canada’s economy; by supporting the sustainable development of Canada’s resources in a manner that advances the country’s global standing as a leader on the environment; and by using its knowledge and expertise of Canada’s landmass to support the safety and security of citizens.


The Minister of Natural Resources is specifically responsible for, or has responsibilities under, more than 30 Acts of Parliament1. The Minister's core powers, duties and functions are set forth in the Department of Natural Resources Act, the Resources and Technical Surveys Act and the Forestry Act. NRCan also works in areas of shared responsibility with the provinces.

Within the Government of Canada, the Minister of Natural Resources also has responsibilities for the natural resources portfolio2, which includes the following:

To deliver on its responsibilities, NRCan relies on a number of tools. It uses science and technology (S&T) to help address priorities and plan for the future. It develops policies, programs, and regulations that help create a sustainable resource advantage, supporting strong, competitive natural resource sectors that are environmentally and socially responsible. And it uses partnerships and international collaboration to help drive progress on issues important to Canadians.

Operating Context

In mid-2009 the world began pulling out of one of the deepest recessions in the past 50 years, as aggressive monetary and fiscal stimulus implemented by Canada and other like-minded nations put economies on the path to recovery. There are many encouraging signs that signal the success of this approach, with worldwide economic growth forecast to reach 4.6 percent in 2010. That said, the recovery is still fragile. Global growth indicators mask an unevenness between a strong recovery in many emerging countries, such as China and India, and more modest progress in some developed economies, such as the U.S. and Europe. And downside risks have risen sharply amid renewed financial turbulence, reflecting a drop in confidence in fiscal sustainability –  particularly in Europe – and future growth prospects.

In Canada, stimulus measures taken by the government began to take hold, buoyed by the strength of the country’s financial system. Through Canada’s Economic Action Plan11 12 (EAP), targeted stimulus was delivered to communities, businesses and workers. EAP investments were also made to help ensure that Canada was in a solid position to succeed over the longer term in an ever-more globalized economy, where environmental leadership is emerging as a key competitive advantage.

The focus on the future is critical. Key trends that were underway prior to the recession have re-emerged and are expected to accelerate. Globalization and other long-term forces point to supply constraints for vital resources, rising demand from emerging economies, changing demographics, geopolitical uncertainties and growing expectations from citizens and investors for more responsible development. It is a future of complex economic, environmental, and social challenges and opportunities.

To succeed, Canada and its natural resource sectors are focusing on advancing a new approach to competitiveness, one that combines the economic imperatives of sound business drivers and improving productivity with the need to show environmental leadership and corporate social responsibility. They are continuing their move from a “volume” to a “value” focus, improving its regulatory processes to enhance both environmental protection and investor certainty. By working to produce and use resources in more efficient ways and by creating and commercializing greener products, technologies and services, a sustainable resource advantage is being secured for all Canadians.

NRCan Action

Over the past year, NRCan has responded vigorously to the demands for government action on the recession, in the context of changing competitiveness.

To help secure Canada’s economy, NRCan continued its important role in delivering the EAP. For example, the department provided significant short-term stimulus through the ecoENERGY Retrofit – Homes Program* and it made significant long-term investments in clean energy and forest innovation and market diversification, in order to ensure Canada’s future success. It also supported the development of programming to deliver assistance to communities and workers in transition through the $1 billion Community Adjustment Fund.

Through its successful Strategic Review exercise and its ongoing commitment to renewal, NRCan reshaped how it fulfills its core federal roles, with the objective of contributing more effectively to new competitiveness imperatives and positioning Canada as a new kind of global resource leader. Going forward, the department will work to pioneer geographic and knowledge frontiers where national interests deem it necessary; drive the national S&T and innovation agenda on natural resources; and build results-based, priority-driven partnerships. By using these roles to guide its activities, NRCan is leading the integration of sustainability and competitiveness for the long-term benefit of Canadians.

Strategic Outcomes and Program Activity Architecture (2009-10)

NRCan manages its program delivery through three Strategic Outcomes (SO) and seven Program Activities (PA) designed to achieve the expected results and deliver benefits to Canadians.

Strategic Outcomes and Program Activity Architecture (2009-10)

[Text version]

In 2009-10, NRCan developed new performance indicators at the SO and PA levels to address opportunities to improve reporting identified through Strategic Review. These performance indicators were used to enhance decision-making, manage more effectively, and present more balanced information to parliament and Canadians.

At the SO level, NRCan tracks a range of key national macroeconomic and technological indicators that are influenced by departmental programming.  At the PA level, NRCan has four classes of performance indicators:

  • narrow socio-economic and technical measures;
  • measures of knowledge and innovation13;
  • service standards; and
  • indices of success14.

In general, NRCan's performance target is for positive long-term trends in its performance indicators (usually over five years). Activity-specific performance targets have been established in cases where the department is reporting its performance in delivering highly specific outcomes (e.g., data on natural hazards). In a minority of cases, the department responds on an as-required basis to broader Government of Canada activities; hence, there are no specific targets for the corresponding indicators.


Contribution of Priorities to Strategic Outcomes

In its 2009-10 Report on Plans and Priorities15, NRCan identified priorities (operational and management) it believed to be critical to the realization of its Strategic Outcomes and expected results over the planning period.  These priorities helped shape the department’s efforts in the development of policies, the pursuit of science and technology (S&T) initiatives, and the delivery of programs in support of its vision of improving the quality of life of Canadians by creating a sustainable resource advantage.

NRCan made significant progress in delivering on its priorities, while also encountering some challenges.  The department’s performance reflects its response to the demands of the day, while preparing for the economy of tomorrow. Through the EAP and key departmental initiatives, NRCan achieved real and lasting results for Canadians.

NRCan assesses its success in delivering priorities by summing the performance of constituent sub-activities in achieving “planned spending-weighted” expected results and outputs on time, and on budget.  Performance status is assigned as follows:  Met All, 99 percent and above; Mostly Met, 80-98 percent.  Major accomplishments, status, and alignment to strategic outcomes and program activities for each of the operational and management priorities are summarized below.  

Operational Priorities Type Status16 Linkages
Address climate change and air quality through clean energy Previously committed Met All SO2 & 3
PA 2.1 & 3.1
Overview: NRCan delivered short-term economic stimulus through the ecoENERGY Retrofit – Homes Program17*, supporting jobs in the home renovation industry, improving the efficiency of Canadian homes, and reducing Canada’s greenhouse gas emissions.  In 2009-10, the program provided grants to more than 190,000 homeowners. Unprecedented demand led the government to allocate additional funding of $285 million to augment the original EAP commitment. Longer term, the sustainability of Canadian energy production and consumption will be improved through NRCan’s new Clean Energy Fund18* (funded through the EAP), which is providing substantial investments in the research, development and large-scale demonstration of the clean energy technologies of tomorrow (e.g. carbon capture and storage).
Support forest sector restructuring and a healthy forest Previously committed Met All SO1, 2 & 3
PA 1.1, 2.2, 3.1 & 3.2

Overview: While the forest sector continued to face challenges during this period, particularly the North American lumber market, NRCan investments in expanding innovation and diversifying markets have set the course for sustainable and transformative change and improved long-term competitiveness in the forest sector. Through the EAP, the department, in collaboration with FPInnovations, accelerated research and applications of more efficient processes associated with the production of existing and the development of new forest-based products. Investments in the Canada Wood Export Program19*, the North American Wood First Program20*, and the Value to Wood Program21*, are diversifying markets at home and abroad. Trade and sales data show increased wood exports to China and South Korea (up 64 percent and 10 percent, respectively, from 2008 levels) and increased sales of Canadian wood used in North American non-residential construction of more than $100 million. In addition, the $1-billion Pulp and Paper Green Transformation Program was launched during the period and is showing early indications of major improvements of production processes, energy conversion (increased use of bio-based energy) and efficiency, and generally improved competitiveness in Canada’s wood pulp sector.

Strengthen Canada’s minerals, metals and materials industries Previously committed Met All SO1, 2 & 3
PA 1.1, 2.2 & 3.2
Overview: The competitiveness of the mineral exploration industry was supported in Budget 2009 with the renewal of the Mineral Exploration Tax Credit, as well as through the strengthening of strategic partnerships. Over the past year, longer-term competitiveness has been enhanced through the renewal and planned relocation of the CANMET Materials Laboratory to the McMaster Innovation Park, where its co-location with other industry and academic stakeholders will result in greater synergies. Competitiveness demands are being further addressed through the implementation of a pan-Canadian Green Mining Initiative which was endorsed by Mines Ministers in 2009 and supported by the Canadian Mining Innovation Council (CMIC) as a key element of their Mining Research and Innovation Strategy.  As well, NRCan worked closely with other government departments to implement Canada’s Corporate Social Responsibility Strategy announced in March 2009. NRCan, in collaboration with the provinces and territories, launched  a 10-year Mining Sector Performance Review to provide a balanced, credible, evidence-based analysis on the performance of the mining sector from 1998-2008. 
Advance Canada’s resource interests and sustainability efforts in the Americas and globally Ongoing Mostly Met SO1, 2 & 3
PA 1.1, 2.1 & 3.2

Overview:Over the past year, NRCan leveraged Canada’s sustainable resource advantage for domestic and international economic growth. Work on Canada’s Corporate Social Responsibility Strategy has helped the department advance this priority, supporting long-term business growth and success through the promotion of Canadian values internationally and contribution to the sustainable development of communities. Other key achievements include strengthening Canada’s resource trade interests by demonstrating Canada’s commitment to sustainable forest management through the Leadership for Environmental Advantage in Forestry initiative, as well as NRCan’s role in Canada’s Clean Energy Dialogue with the United States, which is exploring ways Canada and the U.S. can work together on key clean energy science and technology issues. In addition, NRCan signed Memoranda of Understanding with Brazil and Chile on the Sustainable Development of Minerals and Metals. Together, these efforts are working to leverage Canada’s sustainable resource advantage for economic success in the short and long term.

However, NRCan experienced some challenges in fully delivering on this priority.  In the area of minerals and metals, the initiation of two planned industrial technology projects were delayed to 2010-11.  In the area of clean energy policy, the timing of a new regulatory approach to Industrial Air Emissions was delayed to enable the Government of Canada to act in step with the US approach.  Finally, in the area of forestry, the NRCan-led International Model Forest Network (IMFN) had engaged 31 countries, four less than the target.
Support Canada’s Arctic strategy and develop resource potential in the North Ongoing Met All SO 1 &3
PA 1.1 & 3.2
Overview:NRCan continued to support economic development in the North through its Geo-mapping for Energy and Minerals (GEM) Program22*. This program provides geological information in areas that were previously unmapped and helps lower risk to private sector investment in the development of potential energy and mineral resources. In addition, GEM is training the next generation of Canadian geoscientists required to address current and future capacity gaps, and contribute to prosperity and well-being in Canada's North. NRCan also worked with other government departments to produce science that will support Canada’s submission to the UN Commission on the Law of the Sea for the delineation of Canada’s continental shelf. This submission, if positively received, will allow Canada to gain international recognition of its sovereign rights over an area of more than 1.7 million square kilometres, for the exploration and development of natural resources on and below the seabed. NRCan also partnered with other government departments in planning for the Canadian High Arctic Research Station and spent $2 million allocated from the EAP to upgrade a key Arctic research facility in Resolute, Nunavut*.
Improve regulatory performance for major natural resource projects Previously Committed Mostly Met SO 3
PA 3.2

Overview: NRCan continued the implementation of its Major Projects Management Office (MPMO), ensuring that Canada’s sustainable resource advantage is enhanced by a stable, timely, well-coordinated and evidence-based regulatory process. A growing portfolio of major resource projects has benefited from these improvements, with a total of 53 projects managed under MPMO by the end of fiscal year 2009-10, representing close to $100 billion in potential new capital investment. NRCan also led collaborative efforts across the Government of Canada to identify opportunities to further improve the regulatory system for major resource projects. These efforts led to a number of actions proposed in the Jobs and Economic Growth Act – actions that will allow project reviews to start sooner, reduce delays and duplication, and result in better assessments.

Fully delivering on this priority proved to be challenging; 81 percent of active or completed MPMO projects were on time or within eight weeks of their target timelines. Two key factors had an impact on those project reviews that were behind schedule; namely, process modifications related to the Supreme Court of Canada’s MiningWatch decision, and process revisions caused by changes to the type of environmental assessment being conducted (largely originating from new project information or revised project proposals). In the absence of these factors, it is estimated that approximately 90 percent of project reviews would have met their respective targets.  
Strengthen the Canadian nuclear industry Ongoing Mostly Met SO 1 & 2
PA 1.1 & 2.2

Major Accomplishments: NRCan continued to help strengthen Canada’s nuclear advantage by providing funding to Atomic Energy of Canada Limited (AECL) for its operations, including the development of the Advanced CANDU Reactor and for the safe and reliable operation of its laboratories.  In December 2009, the Government advanced on its commitment to restructure AECL, by issuing a call for proposals on the divestiture (in whole or in part) of AECL’s commercial CANDU Reactor Division.  In addition, NRCan worked with Health Canada to ensure that the best possible information on medical radio-isotopes was made available to the medical community in Canada in support of health care mitigation measures. An Expert Panel on Medical Isotope Production, established by the government in June 2009, submitted its report to the Minister of Natural Resources in November 2009.  In response to the Panel’s report, the government of Canada announced in March 2010 – amongst other measures – NRCan’s Non-reactor-based Isotope Supply Program to invest in research, development and demonstration of novel isotope production technologies.

Delivering on this priority was found to be more difficult than anticipated. Although a number of key milestones were achieved in NRCan's radioactive waste management programs, the completion of some milestones was delayed.  These delays relate to program delivery such as planning, regulatory review, procurement, and implementation, as well as technical and social issues, similar to those experienced by other nations dealing with historic and legacy waste liabilities.  The department has formally evaluated these challenges and put in place governance and program management responses that seek to address program delivery challenges and delays going forward.


Management Priorities Type Status Linkages
Implement an integrated strategic framework and integrated planning and reporting Ongoing
Met All SO 1, 2 & 3
PA 4.1
Major Accomplishments: NRCan continued to advance horizontal collaboration and science and policy integration, as well as further implement its Strategic Framework. The Framework has worked to guide and underpin departmental decision-making and takes into account NRCan’s vision and the importance of finding synergies within and among Canada’s natural resource asset groups – the natural resource base, systems, and people and ideas. The Framework proved to be central to the success of NRCan’s first Strategic Review, allowing the department to better understand how it needed to position itself for the future. As a result, NRCan was able to reallocate funding of more than $43 million to other government priorities, while becoming a department that is more efficient, clearly focused on core federal roles, and better aligned with the priorities of Canadians. NRCan also published its first Integrated Business Plan (IBP), demonstrating how NRCan is sharpening its focus and addressing issues important to Canadians. The IBP shows how the department integrates its programs, activities, and resources to deliver on priorities.
Better integration and management of the natural resources portfolio Previously committed
Met All SO 1, 2 & 3
PA 4.1

Major Accomplishments: To ensure the coherence of the Minister’s diverse natural resource portfolio, NRCan developed a Portfolio Management Framework that articulates the principles of effective portfolio coordination. This complements NRCan’s dedicated portfolio coordination office, which has now been operational for a full fiscal year (2009-10).

Delivering Canada's Economic Action Plan

NRCan received funding for new and expanded initiatives to deliver on Canada’s EAP, as part of Budget 2009. Total funding received for 2009-10 for EAP initiatives was $349.7 million 23; the department spent $339.8 million, or 97 percent. EAP initiatives, along with their respective budget and expenditures as of March 31, 2010, are presented below.

Expected Results Indicators Performance
($ million)
($ million)
Expanding Market Opportunities (Canada Wood Exports (CWEP), Value to Wood, North American Wood First (NAWFP) Programs)
Increase market opportunities for Canadian wood product producers through market development, branding, and technology development and transfer activities Diversified markets for Canadian wood products; use of wood in North American, non-residential construction;  new markets for Canadian manufacturers of value-added wood products Met All 19.0 18.3
Performance Summary: The CWEP contributed to an increase in wood exports to China and Korea by 64 percent and 10 percent respectively, from 2008 levels. Likewise, the NAWFP influenced $54 million in new Canadian wood sales and $53 million in US wood sales. The Value to Wood Program funded 24 research projects at five research organizations across Canada, and supported 200 technical projects to strengthen the competitiveness of the secondary manufacturing wood industry.
Expanding Market Opportunities (Support large-scale demonstrations of Canadian-style use of wood in offshore and domestic markets)
Support initiatives to increase market opportunities for Canadian wood product producers in international (e.g., CWEP) and domestic (e.g., NAWFP) markets Demonstration projects support initiatives to increase non-traditional uses of wood in offshore and domestic markets Met All 4.3 3.8
Performance Summary: The offshore component of the large-scale wood demonstration initiative supported six wood-frame demonstration projects in China, South Korea and Italy. Additionally, domestic demonstration projects in Quebec and British Columbia are currently being considered for funding in 2010-11.
Promoting Forest Innovation and Investment (Development of demonstration-scale pilot projects of new products for use in commercial applications)
Construction of demonstration-scale pilot projects brings research to the next stage towards commercialization An operating pilot plant to prove the scalability of new technology from laboratory to commercial application Met All 3.0 2.2
Performance Summary: Collaborative research between NRCan and FPInnovations, through the Transformative Technologies Program, is advancing the commercialization of new and innovative value-added forest products.  Planning for a partnership to construct a nanocrystalline cellulose pilot plant led to a $1.1 million commitment to carry out a feasibility and engineering study. As well, other pilot plants were under active consideration to produce lignin and methanol from pulp and paper streams for use in the manufacture of new industrial products and processes.
Promoting Forest Innovation and Investment (Contributions to FPInnovations for its Transformative Technologies Program)
To develop emerging and breakthrough technologies related to forest biomass utilization, nanotechnology and next generation forest products New products and processes adopted by industry; new demonstration/pilot projects and trials; in-kind contributions leveraged from stakeholders; research institute consolidation Met All 36.2 35.6
Performance Summary: A number of applications for the use of surplus biomass have been explored, ranging from energy production in mills to the extraction of biomaterials, including chemicals and nanocrystalline cellulose.  In addition, inventory assessment technologies have been improved to provide more accurate, informative, and cost-efficient estimates of available biomass at the local and regional levels.
Clean Energy Fund
Support the development and demonstration of clean energy technologies Number of demonstrated technologies that meet or surpass current best technologies; number of knowledge products made available to codes and developed standards; number of technology demonstrations leading to commercialization (long-term outcome) Met All 20.0 20.0
Performance Summary: In 2009-10, $466 million was announced for 3 large-scale carbon capture and storage (CCS) projects, and a further $146 million for 19 renewable and clean energy demonstration projects across Canada. Research, development and demonstration are being undertaken in the areas of clean fossil fuels; clean integrated electricity including clean coal, CCS, distributed power generation, and next generation nuclear; bioenergy systems; low emission industrial systems; clean transportation systems; and the built environment. The CEF is expected to reduce GHG emissions by 6 million tonnes by 2015.
ecoENERGY Retrofit – Homes Program
To encourage homeowners to improve the energy efficiency of their homes and reduce their greenhouse gas (GHG) emissions Grant applications received; grant amounts paid; number of grants paid; GHG emission reductions; pre-retrofit assessments Met All 232.9 231.2
Performance Summary: During 2009-10, there was unprecedented demand for the ecoENERGY Retrofit – Homes and the government provided additional funding of $285M.  On average, program participants have reduced their annual energy consumption by about 22 percent and GHG emissions by approximately 3 tonnes per house per year.
Modernizing federal laboratories
Maintenance and modernization of NRCan laboratories across Canada Percentage of program funding contracted/awarded or out to tender for bids; percentage of funding not yet contracted/awarded nor out to tender Met All 17.1 17.1

Performance Summary: $17.1 million across 12 federal laboratory modernization projects was spent as planned.
141 (93%) of the 151 original work items were implemented.  This has resulted in significant upgrades to NRCan facilities and improvement to NRCan’s scientific capacity, while creating local employment.  171 jobs were created based upon benchmark stimulus employment metrics (1 job per $100,000 in infrastructure investment).

Accelerating the Federal Contaminated Sites Action Plan
Conducting site assessments, remediation and risk management activities on federal contaminated sites Number of assessment projects planned, underway or completed; number of remediation/risk management projects planned, underway or completed Met All 12.3 6.5
Performance Summary: The 4 assessment projects planned for 2009-10 and the first phase of the Booth Street Complex Remediation Project were completed, at lower than expected cost.   
Maintaining or upgrading existing Arctic research facilities
Modernized and expanded logistics base in Resolute to support increased demands for Arctic logistics

Percentage of improved and upgraded logistics base completed

Met All 2.0 2.0
Performance Summary: NRCan partnered with other government departments to upgrade a key Arctic research facility in Resolute, Nunavut.
Promoting energy development in Canada’s North
Conducting science and other activities to prepare for and respond to the Joint Review Panel (JRP) Report related to the Mackenzie Gas Project

Geoscience expertise, effective preparations for and timely response to the JRP Report, and advice on induced oil and gas activities

Met All 3.0 2.8
Performance Summary:NRCan provided geoscience expertise related to the Mackenzie Gas project federal environmental assessment review. The department completed 501 new maps of northern Canada in support of this initiative.

Performance by Strategic Outcomes

Strategic Outcome 1: Economic Competitiveness
Natural resource sectors are internationally competitive, economically productive, and contribute to the social well-being of Canadians

Performance Indicator: Canada's share of resource-based world trade.
Target: Positive five-year trend.
Performance Against Target: Met All

Between 2004 and 2008 (the most recent data available) Canada’s Trade Performance Index (TPI) ranking relative to all other nations for wood, wood products, and paper increased from 14th in the world, to 12th. Over the same period, Canada's TPI ranking for minerals, including energy and power, increased from from 6th to 4th position.
Program Activity
(Main Estimates)
2009-10 ($ M) Alignment to GoC Outcomes26
(or statutory
1.1  Economic opportunities for natural resources27 174.6 141.3 226.1 290.3 274.2 Strong Economic
1.2   Natural resource-based communities28 11.2 11.2 11.1 14.8 10.9 Strong Economic
Total 185.8 152.5 237.2 305.1 285.1  

Strategic Outcome 2 – Environmental Responsibility
Canada is a world leader in environmental responsibility in the development and use of natural resources.

Performance Indicators:
(i) Canada's total annual energy savings due to efficiency.
(ii) NRCan’s contribution to advancement of innovative and environmentally responsible resource practices in the resource sector measured by uptake of knowledge, technologies, and demonstration projects.
Target: Positive five-year trend.
Performance Against Target:  Met All

As of 2007, the most recent year for which data are available, energy efficiency in Canada had improved 16% since 1990.  Using 1990 energy use as a baseline, Canada's energy savings due to efficiency increased from 908 petajoules (PJ) per annum in 2003 to 1,090 PJ per annum in 2007.  Over the most recent five-year period for which data are available (2002-2006), NRCan's production of peer-reviewed scientific and technical papers in fields related to environmentally responsible practices in the resource sector was 1,847, an increase from 1,362 over the previous five-year period (1997-2001).
Program Activity
(Main Estimates)
2009-10($ M) Alignment to GoC Outcomes(or statutory obligations)
2.1  Clean energy29 440.9 556.9 708.3 816.7 802.5 A Clean and Healthy Environment
2.2  Ecosystem risk management30 141.2 169.4 169.4 184.2 156.5 A Clean and Healthy Environment
Total 582.1 726.3 877.7 1,000.9 959.0  

Strategic Outcome 3 – Safety, Security and Stewardship
Natural resource knowledge, landmass knowledge and management systems strengthen the safety and security of Canadians and the stewardship of Canada’s natural resources and lands

Performance Indicator:
Contribution to the safety and security of Canadians, and the effectiveness of federal land stewardship and regulatory processes.
Target: Positive five-year trend.
Performance Against Target: Met All

Over the most recent five year period for which data is available (2002-2006), NRCan's production of peer-reviewed scientific and technical papers in the field of geoscience, and in fields related to explosives' safety and security was 1,536, an increase from 1,445 over the previous five-year period (1997-2001).  During the five-year period from 2005-06 to 2009-10, NRCan consistently exceeded its targets for timeliness and accessibility of landmass and natural hazard system data.
Program Activity
(Main Estimates)
2009-10 Alignment to GoC Outcomes
(or statutory obligations)
3.1  Adapting to a changing climate and hazard risk management31 74.1 73.1 73.1 70.6 62.9 An Innovative and Knowledge-based Economy 
3.2   Natural resources and landmass knowledge for Canadians32 83.1 101.7 101.7 124.2 113.5 An Innovative and Knowledge-based Economy
3.3   Geomatics Canada Revolving Fund33 1.0 1.9
7.7 0.5 An Innovative and Knowledge-based Economy
Total 158.2 174.8 174.8 202.5 176.9  
4.1   Internal Services34 258.8 177.0 177.0 310.5 306.3  
Sub-Total 1,184.9 1,230.6 1,466.7 1,819.0 1,727.3  
Statutory Programs
1.1   Economic opportunities for natural resources 3,492.6 2,409.3 2,409.3 1,764.0 1,764.0 Statutory Obligations
Total NRCan 4,677.5 3,639.9 3,876.0 3,583.0 3,491.3  

Overview of NRCan’s Financial and Human Resources

NRCan’s actual spending for fiscal year 2009-10 was $3,491.3 million. Included in this amount is $1,764.0 million in support of the Atlantic Offshore Statutory Accords; the remaining $1,727.3 million was in support of departmental programs and initiatives.

Financial Resources ($M)
  Main Estimates Total Authorities Actual Spending
Program Spending35 1,230.6 1,819.0 1,727.3
Statutory Programs – Atlantic Offshore36 2,409.3 1,764.0 1,764.0
Total 3,639.9 3,583.0 3,491.3

Human Resources (Full-time Equivalents)
Planned Actual Difference37
4,513 4,566 53

Actual Spending by Strategic Outcome and Program Activity

Under Strategic Outcome (SO) 1 – Economic Competitiveness, NRCan spent 59 percent of its resources. The Program Activity (PA) 1.1 – Economic Opportunities for Natural Resources, makes up the largest portion of the spending at 58.7 percent, given that it includes the statutory payments under the Atlantic Offshore Accords. Under Strategic Outcome (SO) 2 – Environmental Responsibility, NRCan spent 27.5 percent of its resources.  In support of SO2 – Environmental Responsibility, PA 2.1 – Clean Energy had the next highest spending at 23 percent of the total and at 84 percent of the Strategic Outcome. For SO3 – Safety, Security and Stewardship, expenditures totalled 5 percent of departmental funding. Finally, PA 4.1 – Internal Services comprised 8.8 percent of expenditures.

Actual Spending by Strategic Outcome and Program Activity
[Text version]

Expenditure Profile

Spending for departmental programs increased in 2009-10 from previous years – a $774.4 million and $542.4 million increase from 2007-08 and 2008-09 levels respectively. This is attributable to increased funding for the ecoENERGY Retrofit – Homes Program* ($232.9 million), the Pulp and Paper Green Transformation Program ($49.8 million), the completion of settlement agreements related to the Soldiers Settlement Board ($83.0 million), Investing in Canada’s Forest Sector* ($53.5 million), Accelerating the Federal Contaminated Sites Action Plan* ($12.3 million), and funding to support the modernization of federal laboratories* ($17.1 million). Overall, the spending increase for programs in 2009-10 is primarily associated with the EAP.

Departmental Spending Trend
[Text version]

Pursuant to the Atlantic Offshore Accords, NRCan receives royalties for offshore oil and gas production, and subsequently pays a like amount to the provinces. As such, the expenditures under the various Accords are based primarily on oil and gas royalty revenues received, which are affected by both the price of oil and gas as well as production levels. The reduction of royalties received during 2009-10, from previous years’ levels, reflects lower oil and gas prices and production levels. Hence, the decrease in Statutory programs.

The graph below compares the department’s three-year spending trend for estimates, planned spending, authorized authorities, actual spending, and planned spending and actual spending for EAP initiatives.

Department’s three-year spending trend
[Text version]

Voted and Statutory Items ($M)
Voted or Statutory Items Truncated Vote or Statutory Wording Actual Spending
Main Estimates
Actual Spending
Vote 138 Operating Expenditures 678.6 719.2 700.3 869.7
Vote 239 Capital Expenditures     0.0 8.9
Vote 540 Grants and Contributions 211.4 382.0 457.0 780.5
Statutory Minister of Natural Resources – Salary and Motor Car Allowance 0.1 0.1 0.1 0.1
Statutory Contributions to Employee Benefit Plans 57.9 58.3 53.1 67.1
Statutory Infrastructure costs relating to the exploration, development, production or transportation of oil and gas in the offshore area of Nova Scotia 0.6 0.6 1.4 1.3
Statutory Canada-Newfoundland-Labrador Offshore Petroleum Board 2.2 4.1 7.2 4.9
Statutory Canada-Nova Scotia Offshore Petroleum Board 2.6 2.8 3.4 2.2
Statutory41 Payments to the Nova Scotia Offshore Revenue Account 493.2 577.4 351.5 109.4
Statutory42 Payments to the Newfoundland Offshore Petroleum Resource Revenue Fund 1,701.0 2,351.0 2,045.9 1,180.9
Statutory Grant to the Canada Foundation for Sustainable Development 1.6 19.0 20.0 0.0
Statutory43 Newfoundland Fiscal Equalization Offset Payments 188.6 556.7 0.0 465.3
Statutory Grants in Support of Energy Costs Assistance Measures 0.0 0.0 0.0 0.0
Statutory Spending of proceeds from the disposal of Crown Assets 0.3 0.4 0.0 0.5
Statutory Refund of amounts credited to revenues in previous years 1.3 0.0 0.0 0.0
Statutory Grant to the University of Calgary, Institute for Sustainable Energy, Environment, and Economy 0.0 5.0 0.0 0.0
Statutory Geomatics Canada Revolving Fund
- Operational expenditures
- Respendable revenue
3.0 0.9 0.0 0.5
Total 3,341.1 4,677.5 3,639.9 3,491.3

Risk Analysis

NRCan manages a wide range of uncertainties that could affect its ability to deliver its objectives and priorities. The identification of and response to these uncertainties constitutes NRCan’s Integrated Risk Management Framework (IRMF).

In 2009-10, the department took a proactive approach to identify and manage the risks associated with the delivery of NRCan-led EAP initiatives. With large expenditures and tight timeframes, there were high inherent risks to achieving EAP objectives.

To address these risks, NRCan established and implemented effective stewardship measures for individual EAP initiatives, as well as for the overall action plan, which included monitoring on an ongoing basis. To date, NRCan’s elements of the EAP have been successfully delivered on time and on budget, and the outlook going forward is favourable.
In addition, the department successfully managed the risk related to the delivery of the multi-year project for renewing and relocating the CANMET Materials Technology Laboratory to the McMaster Innovation Park in Hamilton, Ontario. Risks relating to the construction of the new building, including human resources plans, were effectively mitigated by including contingencies in the costing and financial forecasting model, and by ensuring ongoing oversight at all levels within NRCan, and between NRCan and McMaster University.

In cooperation with Atomic Energy of Canada Limited (AECL) and Health Canada, the department managed risks to ensure safe and prudent operations of the National Research Universal (NRU) reactor, as well as the short- and long-term security of supply of medical isotopes for Canadians. Following recommendations from the Expert Review Panel on Medical Isotope Production, the Government of Canada announced – amongst other measures – NRCan’s Non-reactor-based Isotope Supply Program, to invest in research, development and demonstration of novel isotope production technologies

Finally, NRCan managed, on time and on budget, the high-priority project of collecting technical data that will be used to support Canada’s submission to extend our continental shelf under the United Nations Convention on the Law of the Sea (UNCLOS). Data collection is proceeding on schedule, and current funding levels are projected to be fully adequate.