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Name of Transfer Payment Program: Clean Energy Fund

Start date: April 23, 2009

End date: March 31, 2014

Description: Clean energy is energy that is produced, transmitted, distributed and used with low or zero greenhouse gas (GHG) and other air emissions. The Government of Canada has committed that Canada’s total GHG emissions be reduced by 17 percent from 2005 levels by 2020 and that 90 percent of Canada’s electricity be provided by non-emitting sources such as hydro, nuclear, clean coal and wind power by 2020.

In support of these goals, the Clean Energy Fund provides $795M over five years for the demonstration of promising technologies, including large-scale carbon capture and storage (CCS) projects, and renewable energy and clean energy systems demonstrations. $205M of the original one billion was reallocated to ecoEnergy Retrofit.

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

Results Achieved: 3 large scale CCS demonstrations now underway and 19 renewable and clean energy technology demonstrations will begin by summer 2010

Program Activity: Clean Energy
($ millions)

	Actual Spending 2007-08	Actual Spending 2008-09	Planned Spending 2009-10	Total Authorities 2009-10	Actual Spending 2009-10	Variance(s)
Total Grants
Total Contributions				30	30	30
Total Other types of transfer payments
Total Program Activity(ies)				30	30	30

Comment(s) on Variance(s): At the time of the RPP the Clean Energy Fund was not announced.

Audit completed or planned: to be completed as part of Economic Action Plan audit in 2010

Evaluation completed or planned: N/A at this stage

Name of Transfer Payment Program: :  ecoENERGY for Biofuels

Start date: April 1^st , 2008

End date: March 31^st , 2017

Description:

ecoENERGY for Biofuels supports the production of renewable alternatives to gasoline and diesel and encourages the development of a competitive domestic renewable fuels industry.  The program provides an operating incentive to facilities that produce renewable alternatives to gasoline and diesel in Canada, based on production volumes.  ecoENERGY for Biofuels will invest up to $1.48B over 9 years, starting April 1st , 2008, in support of biofuels in Canada.

The initial program volume is 2.5B litres of domestic production by March 2012, with a target of 2B litres of renewable alternatives to gasoline and 500M litres of renewable alternatives to diesel.  Key changes to the program were proposed and approved in 2009.  This involved a realignment of the nine-year funding allocation, a new payment regime and a new decision-making methodology.

Strategic Outcome:

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

Results Achieved:

The Program has currently 21 signed contribution agreements with companies representing a total commitment of $966.2M and a domestic production of 1.6B litres of biofuels (1.4 billion litres of ethanol and 0.189B litres of biodiesel). 

As of April 1st ,  2010, the ecoENERGY for Biofuels program has received an additional 68 applications from both existing and new producers representing approximately $2,061M and the potential production of 540M litres of renewable alternatives to gasoline and 1576M litres of renewable alternatives to diesel per year by March 2012 and increasing thereafter. Currently, $473M is available within the program budget.

Program Activity: Clean Energy
($ millions)

	Actual Spending 2007-08	Actual Spending 2008-09	Planned Spending 2009-10	Total Authorities 2009-10	Actual Spending 2009-10	Variance(s)
Total Grants
Total Contributions		92.2	185.4	187.5	177.7	7.7
Total Other types of transfer payments
Total Program Activity(ies)		92.2	185.4	187.5	177.7	7.7

Comment(s) on Variance(s): Applications did not materialize in time to qualify for funding in 2009-10.  In addition, some Proponents produced lower than expected volumes, something that can not be predicted. The Program also received $8.6M from Supps. C after the December forecast.

Audit completed or planned: An audit of ecoENERGY for Biofuels began in fiscal year 2010-2011.

Evaluation completed or planned: An evaluation of ecoENERGY for Biofuels is planned for 2011-2012.

Name of Transfer Payment Program: ecoENERGY for Renewable Power Initiative

Start date: April 1^st , 2007

End date: March 31^st , 2011

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

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

Results Achieved: At year end, 100 contribution agreements were in place representing 4419 megawatts (MW) of renewable power capacity and commitments of $1.384B over 14 years.  Of the 100 agreements, 61 projects were in operation representing 2894 MW of renewable power capacity and commitments of $912M.

Program Activity: Clean Energy
($ millions)

	Actual Spending 2007-08	Actual Spending 2008-09	Planned Spending 2009-10	Total Authorities 2009-10	Actual Spending 2009-10	Variance(s)
Total Grants
Total Contributions	16.0	30.2	72.2	64.5	56.7	15.5
Total Other types of transfer payments
Total Program Activity(ies)	16.0	30.2	72.2	64.5	56.7	15.5

Comment(s) on Variance(s): The ecoENERGY Renewable Power Program had anticipated more projects being built and commissioned during 2009-2010.  Some projects experienced commissioning delays due to construction issues, and others were cancelled due to difficulties in obtaining financing. A significant portion of the identified variance will be cash managed within the Clean Energy suite of initiatives in order for the funding to be available to the program in future years.

Audit completed or planned: During fiscal year 2009-2010, two financial audits of recipients were completed under the program.

Evaluation completed or planned: In 2009-2010, the department began an evaluation of renewable energy programs, including the ecoENERGY for Renewable Power program, and results are expected in fiscal year 2010-2011

Name of Transfer Payment Program: ecoENERGY Retrofit Initiative
Grants in support of ecoENERGY Retrofit – Homes (Voted)
Contributions in support of ecoENERGY Retrofit – Small and Medium Organizations (Voted)

Start date: 2007

End date: March 2011

Description: The ecoENERGY Retrofit Initiative is a program to provide financial assistance to Canadian homeowners and small industrial and commercial businesses and institutions to support energy efficiency retrofits. There are three components:

• a home energy efficiency retrofit incentive (grant funding noted in the table below);
• an energy efficiency retrofit incentive to accelerate the implementation of energy retrofit projects for non-regulated industries with less than 500 employees per facility and commercial/institutional buildings less than 20,000 square metres in size (contribution funding noted in the table below); and
• a one-year extension of the Existing Buildings Initiative, which supported the retrofitting of existing commercial and institutional buildings (contribution funding in 2007-08 only).

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

Results Achieved: As of March 31st , 2010, The ecoENERGY Retrofit - Homes program has received 293,716 grant applications and performed over 609,000 pre-retrofit evaluations.  It has paid out over $350M to 274, 588 grant recipients, leading to a 21% reduction on average in GHG levels for retrofitted homes.  As of March 31st, 2010, the EcoEnergy Retrofit – Small and Medium Organizations (SMO) program has signed contribution agreements for 494 buildings projects and 354 industry projects.  On a combined basis, these projects energy savings of 1,869,133 Gigajoules and greenhouse gas savings of approximately 157 kilo-tonnes.

Program Activity:
($ millions)

	Actual Spending 2007-08	Actual Spending 2008-09	Planned Spending 2009-10	Total Authorities 2009-10	Actual Spending 2009-10	Variance(s)
Total Grants	12.0	89.7	46.0	267.9	267.9	221.9
Total Contributions	0	3.9	4.4	6.9	6.7	2.3
Total Other types of transfer payments
Total Program Activity(ies)	12.0	93.6	50.4	274.8	274.6	224.2

Comment(s) on Variance(s): Program received 139M in Supplementary Estimates A as part of Budget 2009 Implementation Act. The program also received an additional 45M in Supplementary Estimate C, followed by an incremental 37.9M. This last increase was a measure to accommodate the very high demand for retrofit grants and was to be paid back in 2010-2011.

Because demand from small building owners exceeded the 09/10 budget, the program was required to seek additional funding for the fiscal year.  This money was provided through a cash management exchange between Biofuels and SMO between FY 2008/09 and 2009/10.

Audit completed or planned: An audit of EcoENERGY Retrofit – SMO was completed in 2009.  An audit of the ecoENERGY Retrofit – Homes was released in 2010.

Evaluation completed or planned: An evaluation of ecoENERGY Retrofit is currently ongoing and should be completed in 2010.

Name of Transfer Payment Program: ecoENERGY Technology Initiative

Start date: April 1^st , 2007

End date: March  31^st , 2012

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

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

Results Achieved: 7 carbon capture and storage projects now underway

Program Activity: Clean Energy
($ millions)

	Actual Spending 2007-08	Actual Spending 2008-09	Planned Spending 2009-10	Total Authorities 2009-10	Actual Spending 2009-10	Variance(s)
Total Grants
Total Contributions	0.7	13.6	31.1	28.5	28.5	2.6
Total Other types of transfer payments
Total Program Activity(ies)	0.7	13.6	31.1	28.5	28.5	2.6

Comment(s) on Variance(s): Expenses were deferred to a future year.  The variance was cash managed within the sector, and funds will be made available to meet project liabilities in future years.

Audit completed or planned: audit planned for fiscal year 2011-12

Evaluation completed or planned: Evaluation of components undertaken on ongoing basis as part of Program Activity Architecture evaluation process.

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

Start date: April 1^st , 2007

End date: March 31^st , 2010

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

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

Results Achieved:

Slowing the Spread
Surveys of beetle populations, direct control of active beetle infestation and control burns were completed. Research was completed on remote sensing applications to improve pest disturbance mapping and on upgrading beetle threat mapping.   The Program was successful in slowing the rate of eastward MPB spread.
               
Recovering Economic Value
Knowledge was generated on post-beetle timber shelf-life and on the use of post-beetle timber salvage in the manufacture of standard forest products including panelboards, pulp and paper, and energy from forest biomass.

Protecting Communities and Forest Resources
The Program assisted 32 non-native communities and 59 First Nations Bands in removing post-beetle forest fuels and hazardous trees.  The Program also assisted another 9 First Nations Bands with beetle control.
Knowledge was generated on post-beetle secondary forest structure, forest regeneration, integration of non-timber values into salvage harvesting, on stand and watershed hydrology, and on the post-beetle threat to Fraser River flooding in lower mainland BC.   

Program Activity: Adapting to a Changing Climate and Hazard Risk Management
($ millions)

	Actual Spending 2007-08	Actual Spending 2008-09	Planned Spending 2009-10	Total Authorities 2009-10	Actual Spending 2009-10	Variance(s)
Total Grants
Total Contributions	30.8	17.5	8.8	9.0	0.2	0.2
Total Other types of transfer payments
Total Program Activity(ies)	30.8	17.5	8.8	0.2	0.2	0.2

Comment(s) on Variance(s): Reflects adjustment for cash flow management within the Program.

Audit completed or planned: Recipient audit completed in fiscal year 2009-2010.

Evaluation completed or planned: Evaluation underway and scheduled for completion early in fiscal year 2010-2011 as part of 3.1.2 Forest Disturbances Science and Application.

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

Start date: December 7^th , 2006

End date: March 31^st , 2010

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

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

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

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

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

Results Achieved:

Institute Consolidation: FPInnovations

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

Canadian Wood Fibre Centre

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

Transformative Technology Program (TTP)

• Research results have led to the implementation of new truck components which reduces the vehicle tare weights allowing for increased payloads (allows trucks/trailers to hull 3 tonnes more payload) which has resulted in these devices being permitted for use in B.C.
• Development of the BiOS (Biomass Opportunity Supply) model, which is used to assess the economic supply of forest biomass, is now being used by the Provinces of Ontario, Alberta and Quebec to support the development of regional tenders for new bioenergy projects.
• Research has now generated enough data (decreasing the capital and operating costs and identifying the potential markets) allowing the construction to begin on a pilot scale demonstration plant producing nano crystalline cellulose (NCC).

 

Program Activity: Economic Opportunities for Natural Resources
($ millions)

	Actual Spending 2007-08	Actual Spending 2008-09	Planned Spending 2009-10	Total Authorities 2009-10	Actual Spending 2009-10	Variance(s)
Total Grants
Total Contributions	22.6	23.7	11.5	11.1	11.1	0.4
Total Other types of transfer payments
Total Program Activity(ies)	22.6	23.7	11.5	11.1	11.1	0.4

Comment(s) on Variance(s):

Audit completed or planned: A third party recipient audit of FPInnovations for 2008-2009 was completed in spring 2010. The findings were generally positive regarding the management and use of funds. NRCan is working with FPInnovations to address the process improvements identified within the audit.

An internal audit of NRCan management of PFII funds for 2008-2009 was completed in early 2010. Again, the findings were generally positive and NRCan has enacted changes to address the few minor corrective actions identified.

Evaluation completed or planned: Last evaluation was completed in fiscal 09/10.

Name of Transfer Payment Program: Investing  in Canada’s Forest Sector

Start date: March 12^th , 2009

End date: March 31^st , 2011

Description:

The "Investing in Canada's Forest Sector" initiative consists of two main objectives: Promoting Forest Innovation and Investment and Expanding Market Opportunities.

The objective of Promoting Forest Innovation and Investment is to support the goal of sustainable natural resources development by enhancing the long-term economic opportunities for Canada's forest sector as a product of increased investment in forest innovation.There are three initiatives in this program: the consolidation of Canada’s three forest research institutes, the creation of the Canadian Wood Fibre Centre, and investment in forest innovation. These measures will enhance economic opportunities for Canada’s forest sector as a result of increased investment in forest innovation.

The objectives of Expanding Market Opportunities are to: maintain and grow international wood product markets; expand wood use in the North American non-residential construction market; and improve product opportunities for value added wood manufacturers.There are three initiatives in this program: the Canada Wood Export Program, the North American Wood First Initiative, and the Value to Wood Program.  These initiatives aim to increase market opportunities for Canadian wood product producers through market development, branding, and technology development and transfer activities.

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

Results Achieved:

Promoting Forest Innovation and Investment:

Institute Consolidation: FPInnovations

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

Canadian Wood Fibre Centre

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

Transformative Technology Program (TTP)

• Research results have led to the implementation of new truck components which reduces the vehicle tare weights allowing for increased payloads (allows trucks/trailers to hull 3 tonnes more payload) which has resulted in these devices being permitted for use in B.C.
• Development of the BiOS (Biomass Opportunity Supply) model, which is used to assess the economic supply of forest biomass, is now being used by the Provinces of Ontario, Alberta and Quebec to support the development of regional tenders for new bioenergy projects.
• Research has now generated enough data (decreasing the capital and operating costs and identifying the potential markets) allowing the construction to begin on a pilot scale demonstration plant producing nano crystalline cellulose (NCC).
• Under the Short Term Competitiveness Initiative of the TPP, industry uptake and implementation of technologies and processes form other NRCan-funded FPInnovations programs has greatly increased. Mills and forestry operations have reported immediate financial and operational benefits and returns in many cases.

Expanding Market Opportunities:

Canada Wood Export Program
 Efforts to expand Canadian wood export opportunities in emerging markets continued to produce concrete results, particularly in Asian offshore markets. For example, wood exports to China were up 64% (to $381M) from 2008 levels. The September 2009 adoption of the Shanghai Local Code (which addresses all technical aspects related to light wood frame and hybrid construction) will also help foster a growing demand for Canadian wood products in this important market. In Korea, wood exports were up 10% (to $97.7M) from 2008 levels and Canada regained its position as the top lumber supplier in this market.
North American Wood First Initiative
In Canada, the program successfully influenced $54M in new wood sales in non-residential construction over 69 projects. In targeted parts of the U.S., the program influenced wood use in 77 projects, resulting in an increase in wood sales of $53M.
Value to Wood Program
In 2009-10, the Value to Wood Program continued to support Canadian value-added wood product companies by investing in research and technology transfer. To help generate new and improved wood products and processes for the secondary wood products manufacturing sector, the program funded 24 research projects at five research organizations in New Brunswick, Quebec, Ontario and British Columbia. The program's Industry Advisor Network also performed more than 650 mill visits and technical assessments, and supported more than 200 technical projects across Canada.

Program Activity: Economic Opportunities for Natural Resources
($ millions)

	Actual Spending 2007-08	Actual Spending 2008-09	Planned Spending 2009-10	Total Authorities 2009-10	Actual Spending 2009-10	Variance(s)
Total Grants
Total Contributions			53.6	54.7	54.7	1.1
Total Other types of transfer payments
Total Program Activity(ies)			53.6	54.7	54.7	1.1

Comment(s) on Variance(s): $1.1 variance reflects cash management within the program.

Audit completed or planned: A third party recipient audit of FPInnovations for 2008-2009 was completed in spring 2010. The findings were generally positive regarding the management and use of funds. NRCan is working with FPInnovations to address the process improvements identified within the audit.

An internal audit of NRCan management of PFII funds for 2008-2009 was completed in early 2010. Again, the findings were generally positive and NRCan has enacted changes to address the few minor corrective actions identified.

Evaluation completed or planned: An Evaluation of the first two years (2007-2009) of the Promoting Innovation and Investment was completed in February 2010. Positive findings were returned – minor program adjustments have been implemented based on recommendations. The Expanding Market Opportunities element Evaluation is currently underway and will be completed in Fall of 2010.

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

Start date: 2002

End date: Perpetuity

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

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

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

Program Activity: Economic Opportunities for Natural Resources
($ millions)

	Actual Spending 2007-08	Actual Spending 2008-09	Planned Spending 2009-10	Total Authorities 2009-10	Actual Spending 2009-10	Variance(s)
Total Grants
Total Contributions	188.6	556.7	0.0	465.3	465.3	465.3
Total Other types of transfer payments
Total Program Activity(ies)	188.6	556.7	0.0	465.3	465.3	465.3

Comment(s) on Variance(s):

Audit completed or planned: The Office of the Auditor General will be completing an audit of the offshore statutory payments in fiscal year 2010-2011.

Evaluation completed or planned: N/A

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

Start date: 1987

End date: Perpetuity

Description: To make statutory payments to the province of NL equivalent to the revenue amounts received by Canada in relation to Newfoundland offshore oil and gas activities.

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

Results Achieved: Payment to the province of Newfoundland and Labrador pursuant to the Canada-Newfoundland Atlantic Accord Implementation Act.

Payment amount takes into consideration royalties and corporate income taxes related to the Newfoundland offshore activities.  Actual spending is subject to production levels, prices, exchange rates.

 

Program Activity: Economic Opportunities for Natural Resources
($ millions)

	Actual Spending 2007-08	Actual Spending 2008-09	Planned Spending 2009-10	Total Authorities 2009-10	Actual Spending 2009-10	Variance(s)
Total Grants
Total Contributions	1701.0	2351.0	2045.9	1180.9	1180.9	86.5
Total Other types of transfer payments
Total Program Activity(ies)	1701.0	2351.0	2045.9	1180.9	1180.9	86.5

Comment(s) on Variance(s): N/A

Audit completed or planned: The Office of the Auditor General will be completing an audit in fiscal year 2010-11.

Evaluation completed or planned: N/A

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

Start date: 1993-94

End date: Perpetuity

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

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

Results Achieved: Payments to the province of NS pursuant to provisions of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act.

Payment amount takes into consideration royalties and corporate income taxes related to the Nova Scotia offshore activities.  Actual spending is subject to production levels, prices, exchange rates.

Program Activity: Economic Opportunities for Natural Resources
($ millions)

	Actual Spending 2007-08	Actual Spending 2008-09	Planned Spending 2009-10	Total Authorities 2009-10	Actual Spending 2009-10	Variance(s)
Total Grants
Total Contributions	493.2	577.4	351.5	109.4	109.4	242.1
Total Other types of transfer payments
Total Program Activity(ies)	493.2	577.4	351.5	109.4	109.4	242.1

Comment(s) on Variance(s):

Audit completed or planned: The Office of the Auditor General will be conducting audit in fiscal year 2010-2011.

Evaluation completed or planned: N/A

Name of Transfer Payment Program: The Pulp and Paper Green Transformation Program

Start date: July 30^th , 2009

End date: March 31^st , 2012

Description: The objective of the “Pulp and Paper Green Transformation Program” is to improve the environmental performance of Canada’s pulp and paper industry, which in turn will contribute to the environmental, and hence commercial, sustainability of the pulp and paper industry.

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

Results Achieved:

In the first year of the Program, determination of funding credits to pulp and paper companies in Canada was made based on each company’s production of black liquor during the period January to June 2009.  The process of applying for these credits and the criteria for determining the eligibility of projects for Program funding was refined and communicated to applicants during Fall 2009.  The environmental assessment requirements for projects funded under the Program were also developed and communicated to applicants at that time.

The first proposals were received in October 2009.  Since then, environmental assessments, proposal review and due diligence has been underway.  As of March 31st, 2010, contribution agreements were negotiated for nine projects for a total of more than $180M in funding.  Many more projects are proceeding through the assessment and due diligence processes.  As of April 30th, 2010, the Program has received 41 applications for funding.

As a result of the Program, infrastructure projects are underway in many pulp and paper mills across Canada. Thus far, projects for which agreements have been signed are projected to result in the generation of more than 500,000 megawatt hours/year in new electricity from renewable sources, and energy savings of more than 87,000 gigajoules/year.  All projects approved under the Program will contribute to a more environmentally and commercially sustainable pulp and paper industry in Canada.

Program Activity: Clean Energy
($ millions)

	Actual Spending 2007-08	Actual Spending 2008-09	Planned Spending 2009-10	Total Authorities 2009-10	Actual Spending 2009-10	Variance(s)
Total Grants
Total Contributions			44.6	48.7	48.7	4.1
Total Other types of transfer payments
Total Program Activity(ies)			44.6	48.7	48.7	4.1

Comment(s) on Variance(s): In order to meet the objectives of the funding agreement, the Program used the flexibility allowed under the Transfer Payment Directive to provide advance payments to a recipient covering costs to be incurred in April 2010 out of the appropriation for 2009-2010. This amount was cash managed within the Departmental Vote.

Audit completed or planned: Audit Planned for fiscal year 2010-2011

Evaluation completed or planned: TBD

Name of Transfer Payment Program: Wind Power Production Incentive Program

Start date: April 1^st , 2002

End date: March 31^st , 2007

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

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

Results Achieved: At year end, 22 wind farms were in operation representing 924 MW of wind energy capacity in Canada and about $315M in contribution funding over 15 years.

Program Activity: Clean Energy
($ millions)

	Actual Spending 2007-08	Actual Spending 2008-09	Planned Spending 2009-10	Total Authorities 2009-10	Actual Spending 2009-10	Variance(s)
Total Grants
Total Contributions	29.3	29.3	35.0	28.2	28	7
Total Other types of transfer payments
Total Program Activity(ies)	29.3	29.3	35.0	28.2	28	7

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

Audit completed or planned: During 2009-2010, three audits of recipients were completed under the program.

Evaluation completed or planned: The department began an evaluation of renewable energy programs, including the WPPI program, and results are expected in fiscal year 2010-2011.