ARCHIVED - Natural Resources Canada - Supplementary Tables

Name of Transfer Payment Program: Canada Newfoundland Offshore Petroleum Board (Statutory)

Start Date: 1987

End Date: Perpetuity

Description: NRCan covers 50% of the operating costs of the Canada Newfoundland Offshore Petroleum Board.  The Province pays the other 50%.  This is done pursuant to provisions of the Canada-Newfoundland Atlantic Accord Implementation Act.

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

Results Achieved: Provided financial support to the Offshore Board to cover its costs for the management of offshore resources on behalf of Canada and Newfoundland and Labrador.

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

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants
Total Contributions	4.1	4.9	6.5	6.3	6.3	.2
Total Other Types of Transfer Payments
Total Program Activity(ies)	4.1	4.9	6.5	6.3	6.3	.2

Comment(s) on Variance(s): The variance is due to cost recovery that the Board received from industry.

Audit Completed or Planned: An OAG audit, to be performed jointly with the provincial auditor general, is planned for fiscal year 2011-12.

Evaluation Completed or Planned: N/A

Name of Transfer Payment Program: Clean Energy Fund (Voted)

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.

In support of these goals, the Clean Energy Fund provides $795 million 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 demonstration and research and development (R&D) projects.

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

Results Achieved: Design work has commenced on the three large-scale CCS demonstration projects announced in 2009-10, with the first of these projects currently under construction and expected to start-up operations in 2012. The other two projects are expected to start construction in 2012-13 and to start-up operations in 2015. These CCS projects are part of Canada's contribution to the G8 Leaders' goal of launching 25 such projects in the near future.  In addition, 19 small-scale renewable and clean energy projects are underway. As part of the global effort to advance CCS technology, Canada is participating in a number of initiatives, including project knowledge sharing, public outreach, and regulatory development, and is sharing information widely with other governments, including the US (via the Canada-US Clean Energy Dialogue) the EU, Australia, etc. These projects are expected to provide short and medium term economic stimulus and are being tracked as part of Canada's Economic Action Plan.

Program Activity: Clean Energy
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants
Total Contributions	-	30	161	157.7	104.3	56.7
Total Other Types of Transfer Payments
Total Program Activity(ies)	-	30	161	157.7	104.3	56.7

Comment(s) on Variance(s): The Fourth Report to Canadians on the Economic Action Plan, reallocated $205M from the original $1Billion Clean Energy Fund to the ecoENERGY Retrofit-Homes program. As a result, the program reprofiled $53M to fiscal year 11-12 to better deliver its program commitments. In addition, Clean Energy Fund paid back $4M in previous year loans from the ecoENERGY Technology Initiative.

Audit Completed or Planned: The NRCan Risk-based Audit Plan for 2010-11 included the publication of the audit of the Clean Energy Fund. The completed audit report for project AU1111 can be found at the following link: http://www.nrcan.gc.ca/audit/reprap/2010/au1111-eng.php

Evaluation Completed or Planned: The NRCan 2011-12 to 2015-16 Strategic Evaluation Plan has determined that the evaluation for the Clean Energy Fund will be conducted in the 2013-14 fiscal year.

Name of Transfer Payment Program: Departmental Class Grants and Contributions (Voted)

Start Date: January 31, 2008

End Date: March 31, 2012

Description: Class Grants and Contributions support organizations associated with the research, development and promotion of activities that contribute to departmental objectives.

Strategic Outcome: Economic competitiveness, Environmental Responsibilities, Safety, Security, and Stewardship.

Results Achieved: Geo-mapping for Energy & Minerals [GEM] Program being delivered under the DCGCP:

The purpose of the GEM program is to accelerate the activities of the Geological Survey of Canada to provide the public geoscience knowledge base needed to support increased economic prosperity of northern Canada through stable, long term investment in resource development.  GEM aims to provide a modern, regional-scale geological knowledge base in Canada’s territories to the minimum level needed for effective private sector exploration.  Similarly, GEM also works with the provincial governments to fill critical gaps in the knowledge base needed to increase the effectiveness of exploration investment in the provinces.

Outcomes associated with negotiated GEM grants and contributions have included:

• Generation of new knowledge/technology with strong potential to strengthen, inform and guide Canada’s minerals and energy exploration industries;
• Increase in the number of highly qualified Canadian geoscience personnel;
• Fostered the involvement of the Canadian-based minerals and energy exploration industries in academic research; and,
• Enabled the transfer of knowledge/technology and expertise to the Canadian industries that are well positioned to apply the results to maintain and enhance the prosperity of Canadians, especially in the North.

Energy Efficiency and Alternative Energy Program (EEAE) delivered under the DCGCP:

The Purpose of the EEAE program is to fund projects related to the following activities: performing basic and applied technology research, development, and demonstrations; standards development; scientific, engineering, and industry knowledge development and dissemination (technology transfer and outreach activities, including providing workshops and conferences).

This fiscal CanmetENERGY partnered with Hydrogenics Corporation of Mississauga, Ontario, to make major improvements in hydrogen production from Proton Exchange Membrane (PEM) water electrolysis technology.  These improvements included the continuous operation of the PEM water electrolyzer for 22,000 hours. The electrolyzer also demonstrated an increased energy efficiency which exceeded the U.S. Department of Energy target for 2017.

Ad hoc agreements delivered under the DCGCP:

Below are a number of examples of ad hoc activities that were funded under the DCGCP

• A one-day workshop held in May by the International Energy Agency (IEA) on unconventional oil, who then used the analysis and findings from the workshop to form the basis of an analytical framework on the long-term role of unconventional sources of oil for the World Energy Outlook (WEO) 2010, released in November 2010. By hosting a workshop and analyzing and publishing their findings in the WEO 2010, the International Energy Agency raised awareness of the potential for boosting production of heavy oil and the benefits that could accrue in terms of energy security and related economic issues.
  
  
• A clean energy policy research paper produced by the Great Bear Initiative Society, a not-for-profit organization working on behalf of BC First Nations. The paper assessed the resource potential for renewable energy development along BC's northern Pacific coast, and was submitted to the BC government for policy planning purposes. The paper identified a number of promising sites for developing renewable energy projects and recommended that specific actions be taken by the province that would promote the economic interests of First Nation communities in the region.
  
  
• Support for the development and maintenance of the Calgary-based Canadian Centre for Energy Information (CCEI) website, to promote public knowledge of Canada's energy industries and options. The CCEI is a multi-stakeholder, non-profit organization that gathers and disseminates information and data pertaining to all aspects of the Canadian energy sector (including green energy) and makes this freely available to the public via its web-based energy information portal.
  
  
• Two studies done by the Canadian Energy Research Institute (CERI): 1) the role natural gas might play in reducing greenhouse gas (GHG) emissions in key economic sectors; and 2) the cost-effectiveness in terms of reducing GHG emissions of a number of energy efficiency measures and green technologies applied to important energy-intensive sectors of the economy. These reports help to analyze future trends in Canadian fossil fuel markets and provide supporting information to the design and evaluation of GHG emissions reduction options. These two reports are expected to be made public following peer review by a panel of external experts.
  
  
• NRCan executed 27 contribution agreements with proponents under the Class Grants and Contributions Program to support activities such as delivering housing industry training, providing technical support to consumers and builders, and builder mentoring services in 2010-11. Project activities helped to encourage increased energy efficient home design and construction to new home buyers, builders and other key stakeholders in the residential construction industry.
  
  
• Support for three energy end-use data and analysis centres across Canada to improve the accessibility and comparability of existing data about the evolution of energy consumption and its impact on environmental quality.
  
  

Program Activity: Economic Opportunity for Natural Resources, Natural Resource-based Communities, Clean Energy, Ecosystem Risk Management, Adaptation to Changing Climate and Hazard Risk Management, Natural Resources and Landmass Knowledge.

($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants	1.7	1.9	2.3	2.2	1.9	0.4
Total Contributions	8.6	10	3.1	12.2	11.8	(8.7)
Total Other Types of Transfer Payments
Total Program Activity(ies)	10.3	11.9	5.4	14.4	13.7	(8.3)

Comment(s) on Variance(s): As a mechanism which enables NRCan managers to take advantage of opportunities to provide financial support to projects falling under the departmental mandate but not covered under other transfer payment programs, Class Grant and Contribution actual spending exceeds the planned spending appearing in Main Estimates. This is primarily due to ad hoc opportunities identified as the fiscal year progresses, which are typically funded via cash management using flexibility from other transfer payment programs.

Audit Completed or Planned: This program was part of the horizontal audit on Transfer Payments that took place in fiscal year 2010-11.

Evaluation Completed or Planned:Evaluation of entire program is scheduled to be completed during fiscal year 2012-13.

Name of Transfer Payment Program: ecoENERGY for Biofuels (Voted)

Start Date: April 1, 2008

End Date: March 31, 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 $1.48 billion over 9 years, starting April 1, 2008, in support of biofuels production in Canada.

The program volume target is 2.5 billion litres of domestic production by December 2012, with a target of 2 billion litres of renewable alternatives to gasoline and 500 million litres of renewable alternatives to diesel. Key changes to the program were approved in 2009 and implemented in 2010. This involved a realignment of the nine-year funding allocation, a new payment regime and a new decision-making methodology

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

Results Achieved: The program rendered final eligibility decisions in 2010. It currently has 31 signed contribution agreements and is finalizing the remaining 10 agreements or amendments. This in total will represent a signed production capacity of 1807 million litres per year of ethanol and 628 million litres per year of biodiesel by December 2012 at a value of $1.24 billion (currently signed agreements represent a total value of $1.133 billion and a domestic production capacity of approximately 1973 million litres, 1724 million litres of ethanol and 249 million litres of biodiesel, by December 2012). The program target is 2.5 billion litres of biofuels (2 billion litres of ethanol and 500 million litres of biodiesel) by December 2012. 

Program Activity: Clean Energy
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants
Total Contributions	92.2	177.7	255.2	274.1	147.1	108.1
Total Other Types of Transfer Payments
Total Program Activity(ies)	92.2	177.7	255.2	274.1	147.1	108.1

Comment(s) on Variance(s): Program design changes announced in December 2009 were implemented in 2010, requiring the review of 68 applications, the rendering of decisions and the negotiation of numerous contribution agreements; all of which could not be incented for the most part of 2010-2011. In addition, as a result of the economic downturn and the fact that Environment Canada’s biodiesel regulation is not yet in place, the Canadian biodiesel industry has been slow in developing its production capacity.  Consequently, they have been unable to produce up to the amounts allowed by NRCan biofuels production subsidy program, and we have a significant amount of unspent money (lapse) from 2010-2011.  

Audit Completed or Planned: An audit of ecoENERGY for Biofuels was completed in 2010-11.

Evaluation Completed or Planned: In 2011-12 ecoENERGY for Biofuels will be evaluated as part of the Alternative Transportation Fuels sub-sub activity (2.1.5.5) within the Energy Efficiency and Alternative Transportation Fuels sub-activity of the Department’s Program Activity Architecture (PAA).

Name of Transfer Payment Program: ecoENERGY for Renewable Heat Initiative (Voted)

Start Date: April 1, 2007

End Date: March 31, 2011

Description: As part of the ecoENERGY Initiative, the ecoENERGY Renewable Heat Program supports non-emitting renewable thermal energy technologies used for space heating and cooling, and water heating through a mix of deployment contributions, residential pilot program contributions and industry capacity development contributions.

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

Results Achieved: Since the program’s inception on April 1, 2007, 1,728 funding applications from industrial, commercial and institutional sectors to install solar air and solar hot-water systems were received.  Contribution agreements were signed for 1,120 projects. These agreements represent 1,267 solar systems.
 
ecoENERGY for Renewable Heat entered into information sharing agreements with Ontario, Saskatchewan and British Columbia to provide one window access to federal and provincial industrial, commercial and institutional solar thermal programs.

In addition, 14 pilot projects were established with partners (utilities, developers and buyers’ groups) to test large-scale deployment mechanisms for solar water heating systems in the residential sector.  Under these pilot projects, 1,100 solar water-heating systems were installed in Canadian homes.  This Residential Pilot Initiative was also the driving force behind the creation of a new regulatory regime for Canadian residential solar water heating systems.

As well, the ecoENERGY for Renewable Heat program helped support a study to strengthen the Labour Market Information data for solar thermal and geo-exchange.

Program Activity: Clean Energy
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants
Total Contributions	6.7	5.0	10.0	9.8	9.7	0.3
Total Other Types of Transfer Payments
Total Program Activity(ies)	6.7	5.0	10.0	9.8	9.7	0.3

Comment(s) on Variance(s): Many of the projects for which the program receives applications do not, in the end, proceed.  Of the 1,728 applications received, 611 were cancelled, the majority by the proponent.  Some proponents could not obtain the rest of the financing, some could not get other approvals needed, and some could not get the project finished by the deadline.

Audit Completed or Planned: N/A

Evaluation Completed or Planned: An evaluation was completed and posted on the NRCan website in 2010.

Name of Transfer Payment Program: ecoENERGY for Renewable Power Initiative (Voted)

Start Date: April 1, 2007

End Date: March 31, 2011 (The program stopped accepting applications in 2011. However, allocated funding will be issued to program participants until 2020-21).

Description: The ecoENERGY for Renewable Power program is investing $1.43 billion in transfer payments over 14 years to increase Canada's supply of clean electricity from renewable sources such as wind, biomass, low-impact hydro, geothermal, solar photovoltaic and ocean energy. It is intended to help position low-impact renewable energy technologies to make an increased contribution to Canada’s energy supply and thereby contribute to a more sustainable and diversified energy mix.

The program offers a production incentive of 1 cent per kilowatt hour for ten years to eligible projects using low impact renewable power sources such as wind, low impact hydro, biomass, geothermal, photovoltaics and ocean energy.

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

Results Achieved: At fiscal year end, 104 contribution agreements were in place, representing 4458 megawatts (MW) of renewable power capacity and commitments of $1.39 billion over 14 years. 

Program Activity: Clean Energy
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants
Total Contributions	30.2	56.7	97.9	105.5	88.5	9.4
Total Other Types of Transfer Payments
Total Program Activity(ies)	30.2	56.7	97.9	105.5	88.5	9.4

Comment(s) on Variance(s): Some projects experienced commissioning delays due to construction issues, and others were cancelled due to difficulties in obtaining financing by the end of the commitment period. 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: An audit of the Program is planned for fiscal year 2012-13

Evaluation Completed or Planned: An evaluation of Renewable Energy, including this program, was completed in fiscal year 2010-11.

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: April 1, 2007

End Date: March 31, 2011

Description: The ecoENERGY Retrofit Initiative provided financial assistance to Canadian homeowners and small industrial and commercial businesses and institutions to support energy efficiency retrofits. There were 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: Environmental Responsibility - Canada is a world leader on environmental responsibility in the development and use of natural resources. 

Results Achieved: As of March 31, 2011, the ecoENERGY Retrofit – Homes program had received over 510,000 grant applications from Canadian homeowners. Over the course of the program, more than $710 million in grants has been paid out to recipients, leading to a 21% reduction in energy use and a 1.78 Mt reduction in GHG emissions for retrofitted homes.

As of March 31, 2011, the ecoENERGY Retrofit – Small and Medium Organizations (SMO) program had signed a total of 1286 contribution agreements for retrofit projects. These projects are forecasted to have a combined energy savings of 2.8 PJ and GHG savings of approximately 0.23 Mt.

Program Activity: Clean Energy
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants	89.7	267.9	425	394.3	355.1	69.9
Total Contributions	3.9	6.7	10.5	10.5	11	(.5)
Total Other Types of Transfer Payments
Total Program Activity(ies)	93.6	274.6	435.5	404.8	366.1	69.4

Comment(s) on Variance(s): Retrofit Grant program paid back 43.7M in previous year loans from other programs, while also having 37.9M frozen from its profile related to the TB submission “permanent access to TB vote 5”. 12.4M was subsequently, permanently transferred from other lapsing Clean Air Agenda program funds to cover estimated Retrofit PAYEs.

Audit Completed or Planned: An audit of ecoENERGY Retrofit – SMO was completed in 2009. An audit of ecoENERGY Retrofit – Homes was completed in 2010.

Evaluation Completed or Planned: An evaluation of the ecoENERGY Retrofit Initiative was completed in 2010.

Name of Transfer Payment Program: ecoENERGY Technology Initiative (Voted)

Start Date: April 1, 2007

End Date: March 31, 2011

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

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

Results Achieved: Supported scientific research that will generate knowledge essential to achieving Canada’s climate change goals. Activities were in the areas of cleaner fossil fuels, cleaner transportation, energy efficiency in residential, commercial and institutional buildings, improved industrial processes, carbon capture and storage, and bioenergy. Examples include:

• Design work continued on five small scale carbon capture and storage demonstration projects. These projects are expected to provide short and medium term economic stimulus and are being tracked as part of ecoENERGY programming under the Clean Air Agenda.
  
  
• Provided on-going information and expert advice to Environment Canada on energy policy and technology to develop regulations under the Canadian Environmental Protection Act to limit greenhouse gas emissions from coal-fired power plants.
  
  
• The Biomass Inventory and Mapping Analysis Tool (BIMAT) was further developed and improved with the addition of a feedstock transportation analysis option and sustainability analysis in 2010-11. The BIMAT website continues to be used by a wide variety of stakeholders to aid in decision-making.
  
  
• Used modelling and simulation capability to develop five case studies on the integration of distributed generation that will have a significant impact on how renewable energies will be integrated onto the grid.
  
  

Program Activity: Clean Energy
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants
Total Contributions	13.6	28.5	61.1	55.4	48.6	12.5
Total Other Types of Transfer Payments
Total Program Activity(ies)	13.6	28.5	61.1	55.4	48.6	12.5

Comment(s) on Variance(s): Two projects with key stakeholders (industrial and provincial) did not proceed due to unforeseen factors resulting in a surplus.

Audit Completed or Planned: The NRCan Risk-based Audit Plan for fiscal year 2011-12 included an audit of the ecoENERGY Technology Initiative. 

Evaluation Completed or Planned:

Recently completed as part of the following portfolio evaluations:

- Energy S&T: Clean Energy Systems for Clean Electric Power Generation

- Energy S&T: Clean Energy Systems for Frontier Oil & Gas

The NRCan 2011-12 to 2015-16 Strategic Evaluation Plan has determined that the evaluation for the remaining portfolio evaluations will be conducted as follows:

Fiscal year 2011-12:

- Energy S&T: Clean Energy Systems for Industry

- Energy S&T: Sustainable Bioenergy

Fiscal Year 2012-13:

- Energy S&T: Clean Energy Systems for Buildings and Communities

- Energy S&T: Clean Transportation Energy.

Name of Transfer Payment Program: Implementation of the Adaptation Theme in Support of Canada’s Clean Air Agenda (Voted)

Start Date: April 1, 2008

End Date: March 31, 2013

Description: The objectives of the program are to generate and effectively deliver knowledge and information needed to understand the range of risks and opportunities from a changing climate; and effectively inform and engage decision-makers across a range of social and economic sectors that have responsibilities to adapt. 

Strategic Outcome: 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

Results Achieved: Six Regional Adaptation Collaboratives (RACs) were established and have attracted the participation of 120 partners in municipalities, Aboriginal organizations, Non-governmental organizations, academia and the private sector, as well as 40 provincial and territorial agencies and departments.  This collaborative will contribute to the capacity of these organizations to address adaptation issues.

Tools for adaptation were delivered in three areas: a risk management guide for communities, training modules for professional planners and an upgraded protocol to assist engineers in assessing infrastructure vulnerability to a changing climate.

Program Activity:Adapting to a changing climate and hazard risk management
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants
Total Contributions	0.1	4.2	9.3	9.1	8.5	0.8
Total Other Types of Transfer Payments
Total Program Activity(ies)	0.1	4.2	9.3	9.1	8.5	0.8

Comment(s) on Variance(s): Variance in contributions was due to slower than planned spending in several large projects.

Audit Completed or Planned: N/A

Evaluation Completed or Planned: A program evaluation is underway. Expected completion in October 2011.

Name of Transfer Payment Program: Investments in Forest Industry Transformation (IFIT) (Voted)

Start Date: June 17, 2010

End Date: March 31, 2014

Description: The objective of Investments in Forest Industry Transformation is to support forest industry transformation that will make the forest industry more economically viable and environmentally sustainable by investing in innovative technologies. These investments will lead to a more diversified, higher-value product mix including bioenergy and renewable power, as well as biomaterials, biochemicals, and next generation building products.

The Program will fund innovative projects implementing transformative technologies at the pilot to commercial scales that direct wood fibre, and by-products from wood processing, into higher value uses.   Such projects will increase the total value generated from wood fibre, diversify product lines for the forest industry, and produce new bio-products or renewable energies. By providing funding to Canadian forest firms for capital investments to advance new technologies towards full, commercial-scale implementation, this Program will broaden and build upon previous departmental investments in forest sector transformation.

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

Results Achieved:

• Successful program development and launch in summer 2010, followed by the program’s first Call for Proposals which attracted more than 64 applications from companies across Canada and represented a wide variety of forest industry subsectors, company and project sizes, and technology types.
• Signed first round of Contribution Agreements worth $6.6 million for commercial scale projects at two Canadian forest sector facilities, on small scale power production from waste heat and methanol purification.  The latter project is the first application in the world of this Canadian technology, which produces bio-methanol from process streams, and both projects hold significant potential for replication within Canada’s forest sector. 

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

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants
Total Contributions	-	-	23.6	23.6	6.6	17.6
Total Other Types of Transfer Payments
Total Program Activity(ies)	-	-	23.6	23.6	6.6	17.6

Comment(s) on Variance(s): The variance in planned spending vs. actual spending was cash managed within the sector. Final project funding decisions will be made during FY 2011-2012, based on technical, financial and environmental feasibility analyses, in order to fully allocate the funding available under the first call for proposals.The second call for proposals will take place mid-year of 2011-2012 to allocate remaining program funds. 

Audit Completed or Planned: A program audit is planned for the 2011-2012 fiscal year.

Evaluation Completed or Planned: A program evaluation is planned for the 2013-2014 fiscal

Name of Transfer Payment Program: Leadership for Environmental Advantage in Forestry (LEAF) Initiative (Voted)

Start Date: June 12, 2008

End Date: March 31, 2012

Description: The purpose of this program is to advance Canada’s trade interests by promoting the environmental reputation of Canada’s forest sector in international markets. Its aim is to promote the Canadian forest sector’s environmental record internationally through addressing science and information gaps, supporting market outreach, and monitoring and reporting on trends.

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

Results Achieved:

• In 2010-2011, the Leadership for Environmental Advantage in Forestry program continued to defend and promote the environmental record of Canada’s forest products in international markets by continuing to provide evidence of Canada’s leadership in forest sustainability. This included developing science policy notes on topics ranging from protected areas to the impact of forest bio-energy on the environment; creating nine information modules to fill a gap in the understanding of our key markets regarding the complexity of forest management practices in Canada; and producing video vignettes on forest-based bio-energy, spruce budworm, and the natural regeneration of Canada’s forests.
  
  
• Under the program’s market outreach activities, the Forest Products Association of Canada (FPAC) also delivered 15 customer and industry briefings in the United States, Europe and Asia. These briefings increasingly involve key individuals who are in a position to influence perceptions about the environmental credentials of Canada’s forest sector in target markets.
  
  
• FPAC also collaborated with the International Forestry Partnerships Program (IFPP) on advocacy activities aimed at continuing to raise awareness and understanding of Canada’s sustainable forest management practices in target markets.
  
  

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

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants
Total Contributions	1.9	4.1	6.0	6.0	6.0	-
Total Other Types of Transfer Payments
Total Program Activity(ies)	1.9	4.1	6.0	6.0	6.0	-

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

Audit Completed or Planned: Two audits of the LEAF program are planned in 2011-2012:

• An internal audit of the CFS’ management oversight of the LEAF program which will be delivered by the Forest Products Association of Canada (FPAC).
• A financial audit of FPAC program expenditures in 2010-11 will be conducted in FY 2011-12.

Evaluation Completed or Planned:

• An evaluation of the LEAF program is planned in 2011-12.

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

Start Date: 2002

End Date: March 2011

Description: To make the 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: Economic Competitiveness - 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)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants
Total Contributions	556.7	465.3	-	641.9	641.9	(641.9)
Total Other Types of Transfer Payments
Total Program Activity(ies)	556.7	465.3	-	641.9	641.9	(641.9)

Comment(s) on Variance(s): Offset payments are determined by Department of Finance. NRCan was informed of 2010-11 offset payments in early April 2010.

Audit Completed or Planned: N/A

Evaluation Completed or Planned: N/A

Name of Transfer Payment Program: Non-reactor-based Isotope Supply Contribution Program (NISP) (Voted)

Start Date: May 13, 2010

End Date: March 31, 2012

Description: The NISP is a $35-million program to establish the feasibility of cyclotron and linear accelerator-based production of the key medical isotope technetium-99m (Tc-99m).

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

Results Achieved: The first year of the program focused on launching the program in a fair, open and transparent manner.  All milestones for program launch were achieved, and the competitive process resulted in direct stakeholder engagement with the four project leads as well as with the more than 30 project partners, collaborators and subcontractors.  In this way, the program has already increased collaboration among public, private and academic stakeholders in seven provinces across Canada, including engagement with the regulators involving regular communication and one Memorandum of Understanding between the Canadian Nuclear Safety Commission and the Canadian Light Source Inc.  Also, investments in infrastructure and salaries for researchers have increased research capacity in Canada, with further increases expected by the end of the Program. 

All other outcomes of the program are not expected until between 2012 and 2016 since the program is focused on the long-term outcomes of increased security of supply of isotopes and reduced nuclear waste.  The knowledge products that will result from the NISP following 2012 will contribute to a better understanding of the commercial viability of the accelerator technologies, and consequently, to the ability to attract private sector investment that will bring the technologies to commercialization prior to when the National Research Universal ceases isotope production.

Program Activity: Clean Energy
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants
Total Contributions	-	-	9.3	10.2	10.2	(0.9)
Total Other Types of Transfer Payments
Total Program Activity(ies)	-	-	9.3	10.2	10.2	(0.9)

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

Audit Completed or Planned: N/A

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

Results Achieved: The transfer to the Province of an amount equivalent to the amounts received by Canada in relation to oil and gas activity in the Newfoundland and Labrador offshore was completed in a timely manner, as set out in Sections 97, 214 and 217 of the Canada-Newfoundland and Labrador Atlantic Accord Implementation Act.

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

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants
Total Contributions	2351.0	1180.9	1371.2	1227.7	1227.8	143.4
Total Other Types of Transfer Payments
Total Program Activity(ies)	2351.0	1180.9	1371.2	1227.7	1227.8	143.4

Comment(s) on Variance(s): Forecast predicted higher crude oil prices and production

Audit Completed or Planned: An audit of Nova Scotia and Newfoundland Statutory Transfers was completed for fiscal year 2008-09.

Evaluation Completed or Planned: N/A

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

Start Date: 1988

End Date: Perpetuity

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

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

Results Achieved: The transfer to the Province of an amount equivalent to the amounts received by Canada in relation to oil and gas activity in the Nova Scotia offshore was completed in a timely manner, as set out in Sections 99, 219 and 222 of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act. 

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

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants
Total Contributions	577.4	109.4	295.3	225.2	225.2	70.1
Total Other Types of Transfer Payments
Total Program Activity(ies)	577.4	109.4	295.3	225.2	225.2	70.1

Comment(s) on Variance(s): Diminished natural gas prices and reduced production resulted in actual spending lower than anticipated in forecast.

Audit Completed or Planned: An audit of Nova Scotia and Newfoundland Statutory Transfers was completed for fiscal year 2008-09.

Evaluation Completed or Planned: N/A

Name of Transfer Payment Program: The “Investing in Canada’s Forest Sector” Initiative (Voted)

Start Date: March 12, 2009

End Date: March 31, 2011

Description: The “Investing in Canada’s Forest Sector” initiative consists of two main objectives:

• Promoting Forest Innovation and Investment - 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.
  
  
• Expanding Market Opportunities - 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.
  
  

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

Results Achieved:

Promoting Forest Innovation and Investment

• To foster greater efficiency and strength in forest innovation and R&D, part of the federal contributions in 2010-2011 enabled the completion of the merger of three separate forestry research institutes into FPInnovations, resulting in a strong and integrated public-private innovation partnership for Canada’s forest sector.
• To maximize fibre value and help improve the competitiveness of Canada’s forest sector, the Canadian Wood Fibre Centre (CWFC), housed in Natural Resources Canada, has helped in the development and application of new forest inventory tools that will assist resource managers to evaluate the value that can be obtained from the location of forest resources. This has enabled forestry research to shift from one that has traditionally been volume-based to one that is more value-based. Currently, over 80% of research can be shown to be value-based.
• To help develop and commercialize new technologies for Canada’s forest sector and assist in its on-going transformation, FPInnovations research under the Transformative Technologies Program (TTP) has yielded more than twenty new technologies and processes. Examples include new wood composite products such as engineered strand lumber, cross laminated timber; the development of new methods to cure chemically-impregnated wood products; the production of nanocrystalline cellulose; and diversified forest products derived largely from mill residues and effluents.
• Many of the technologies and processes developed under the TPP proceeded either to pilot scale demonstration or commercial application in 2010-2011, with 14 pilot scale demonstration projects implemented at forest product manufacturing mills across Canada, in partnership with provinces and industry.

Expanding Market Opportunities

• In 2010-2011, the Canada Wood Export Program (CWEP) continued to successfully expand demand for Canadian wood products in emerging offshore markets. Wood exports to China, for example, rose 119% to $834 million while South Korean exports rose 47% to 145 million.
• The North American Wood First Initiative influenced the use of wood in 256 non-residential construction (NRC) projects in Canada and the United States. These projects had an estimated wood sales value of $190 million. In addition, the initiative provided training to 6,954 architects, engineers and builders to educate them on the opportunities and benefits of using wood in non-residential applications.
• The Value to Wood Program funded 25 research projects in 2010 at five research organizations across Canada. Its technology transfer component performed 694 mill visits and technical assessments which resulted in 249 technical projects that provided direct problem solving support to wood product firms across Canada. Documented cases of companies that were assisted by the program reported productivity gains of 8 to 20 percent.
• To showcase the innovative use of wood in commercial and non-residential applications and the use of innovative wood products in traditional buildings, the large scale Wood Demonstrations Initiative supported 14 projects in 2010-2011. Seven of these projects were in Canada (i.e., three in British Columbia, one in Ontario, and three in Quebec) and seven in offshore markets (i.e., six in China and one in Italy). Examples of these projects include: the construction of the Vancouver Pavilion at the Shanghai 2010 Exposition visited by 650,000 visitors who saw first-hand the attributes and benefits of wood frame construction; the construction of a day residence for autistic children in Aquila, Italy using prefabricated wood panels and technical expertise from Canada. The project demonstrates the ease and quickness of construction, seismic safety, cost effectiveness and compatibility of panelized wood frame system with Italian design and style.

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

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants
Total Contributions		54.7	96.3	96.3	95.4	0.9
Total Other Types of Transfer Payments
Total Program Activity(ies)		54.7	96.3	96.3	95.4	0.9

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

Audit Completed or Planned:

• An audit of the FPInnovations overhead factor was completed in 2010-11. In addition, a financial audit report of NRCan-funded FPInnovations programs (Core, Short Term Competitiveness Initiative, Transformative Technology Program, Value to Wood, and Canadian Wood Fibre Centre) was delivered in 2010-11. The recommended actions were of a minor to moderate nature and appropriate corrective measures were put in place. The audit examined the fiscal year 2008-09. 
• An audit of a sampling of PSD (Pilot Scale Demonstration) projects is projected in 2011-12.

Evaluation Completed or Planned:

• An evaluation of the Canada Wood Export Program, North American Wood First, and Value to Wood programs was completed in 2010-11.  An evaluation of the Wood Demonstrations Initiative is planned in 2011-12.
• An evaluation of the Transformative Technologies and Pilot Scale Demonstration programs is projected for 2013-2014.

Name of Transfer Payment Program: The “Pulp and Paper Green Transformation Program” (Voted)

Start Date: July 30, 2009

End Date: March 31, 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: The Pulp and Paper Green Transformation Program supported innovation and environmentally friendly investments in Canada’s pulp and paper sector. The objective of this program is to improve the sustainability of Canadian pulp and paper mills by improving their energy efficiency and positioning them as leaders in the production of renewable energy from forest biomass. During 2010-11, contribution agreements were signed for  66 projects with 21 pulp and paper companies across Canada. These projects are expected to produce more than 1.7 million MWh/year of renewable energy – enough to power 144,000 homes, while saving more than 6.8 million GJ/year of energy – enough to power an additional 160,000 homes. These projects are also collectively expected to reduce greenhouse gas emissions by more than 280,000 tonnes per year while reducing recipient mills’ consumption of fresh water, the amount of solid waste sent to landfills and odorous emissions.

Program Activity: Clean Energy
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants
Total Contributions	-	48.7	637.1	387.1	388.5	248.6
Total Other Types of Transfer Payments
Total Program Activity(ies)	-	48.7	637.1	387.1	388.5	248.6

Comment(s) on Variance(s): $250 million was re-profiled from 2010-11 to 2011-12 via the Annual Reference Level Update (ARLU) process. Remaining variance was cash managed within the Departmental Vote.

Audit Completed or Planned: An Audit was completed in 2010-11 and found the Program to be “operating well”.

Evaluation Completed or Planned: An evaluation is planned for 2012-13 as a part of the Department’s Risk Based Evaluation Plan.

Name of Transfer Payment Program: Wind Power Production Incentive Program (Voted)

Start Date: April 1, 2002

End Date: March 31, 2007 (Note: The program stopped accepting applications in 2007. However, allocated funding will be issued to program participants until 2016-17).

Description: The WPPI Program was set up to help establish wind energy as a full-fledged competitor in the electricity market by providing 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. Eligible recipients claim payment of the incentive over a 10-year period.

The initial WPPI G&C budget was $255 million and an additional $69.9 million was allocated in 2005-06 to allow the program to continue to support the development of new wind farms.

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

Results Achieved: 22 wind farms were commissioned under the program, representing 924 megawatts of wind energy capacity in Canada and about $315 million in contribution funding over 15 years.

Program Activity: Clean Energy
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants
Total Contributions	29.3	28.0	32.7	28.3	26.4	6.3
Total Other Types of Transfer Payments
Total Program Activity(ies)	29.3	28.0	32.7	28.3	26.4	6.3

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

Audit Completed or Planned: N/A

Evaluation Completed or Planned: An evaluation of Renewable Energy, including this program, was completed in fiscal year 2010-2011