Section I - Overview

Minister’s Message

The Honourable Joe Oliver

As Minister of Natural Resources, I am pleased to present the 2013-14 Report on Plans and Priorities for Natural Resources Canada (NRCan).

The natural resource sectors continue to underpin Canada’s economy, and they remain the cornerstone of our future prosperity. Collectively, the energy, mining and forest sectors directly and indirectly account for more than 1.6 million jobs in communities across the country and support close to 20% of Canada’s nominal gross domestic product.

Canada has an unprecedented opportunity: over the next 10 years, as much as $650 billion could be invested in more than 600 major resource projects that are underway or planned in Canada. To capitalize on these opportunities, our Government’s plan for Responsible Resource Development will ensure Canada’s regulatory regime for major projects is among the most efficient, effective and competitive in the world. It will place beginning-to-end time limits on environmental assessments, eliminate unnecessary duplication, strengthen environmental protection and improve consultation with Aboriginal peoples. These changes will provide greater certainty for investors while strengthening Canada’s world-class environmental standards.

Our nation’s prosperity depends on expanding and diversifying markets for energy, mineral and forest products and innovative supporting technologies, particularly to fast-growing economies in the Asia-Pacific region. Accordingly, we are working with partners to support infrastructure development, reduce market access barriers, and brand Canada as a reliable and responsible supplier of resources.

Recognizing the fundamental importance of innovation to the productivity, environmental performance and competitiveness of the natural resource sectors, we will continue to advance new processes and technologies with partners in areas such as unconventional oil and gas, lightweight materials for transportation, green mining and energy efficiency.

To further the continued safety and security of Canada and Canadians, NRCan will also work with partners to prepare for and manage resource-related threats and emergencies, such as forest pests and forest fires, as well as natural hazards such as earthquakes.

We have a tremendous opportunity to capitalize on Canada’s natural resources and their future potential. NRCan is working to help us seize this opportunity.

The Honourable Joe Oliver
P.C., M.P.
Minister of Natural Resources

 

Section I: Organizational 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 and to grow their 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.

Responsibilities

The Minister of Natural Resources is specifically responsible for or has responsibilities under more than 30 Acts of Parliament 1. The Minister’s core powers, duties and functions are set forth in the Department of Natural Resources Act 2, the Resources and Technical Surveys Act 3 and the Forestry Act 4. 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 portfolio 5, which includes:

To deliver on its responsibilities, NRCan relies on a number of instruments. 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 natural resource issues important to Canadians. More broadly, the Department plays a critical role in Canada’s future, contributing to high-paying jobs, business investment and overall economic growth in Canada’s natural resource sectors.

Strategic Outcomes and Program Alignment Architecture

The diagram below presents NRCan’s expected results and programs for 2013-14, commonly referred to as the Program Alignment Architecture. Through its programs, NRCan supports the achievement of three Government of Canada outcomes: Strong Economic Growth, A Clean and Healthy Environment, and A Safe and Secure Canada. NRCan’s Program Alignment Architecture for 2013-14 showcases its contribution to Canada and Canadians and demonstrates how it will achieve its results.

Natural Resources Program Activity Architecture

 

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2013-14 Program Alignment Architecture Natural Resources Canada

1. Canada’s Natural Resource Sectors are Globally Competitive

1.1 Market Access and Diversification
1.1.1 Mineral and Metal Markets Access and Development
1.1.2 Forest Products Market Access and Development
1.1.3 Energy Market Regulation and Information

1.2 Innovation for New Products and Processes
1.2.1 Mining Innovation
1.2.2 Forest Sector Innovation
1.2.3 Geomatics Innovation

1.3 Investment in Natural Resource Sectors
1.3.1 Mineral Investment
1.3.2 Forest-based Community Partnerships
1.3.3 Targeted Geoscience Initiative 4 (TGI4)
1.3.4 Geo-mapping for Energy and Minerals
1.3.5 New Energy Supply
1.3.6 Major Projects Management Office Initiative

1.4 Statutory Programs –Atlantic Offshore

2. Natural Resource Sectors and Consumers are Environmentally Responsible

2.1 Energy-efficient Practices and Lower-carbon Energy Sources
2.1.1 Renewable Energy Deployment
2.1.2 Support for Clean Energy Decision-making
2.1.3 Alternative Transportation Fuels
2.1.4 Energy Efficiency

2.2 Technology Innovation

2.2.1 Materials for Energy
2.2.2 Green Mining
2.2.3 Clean Energy Science and Technology

2.3 Responsible Natural Resource Management
2.3.1 Forest Ecosystem Science and Application
2.3.2 Groundwater Geoscience
2.3.3 Environmental Studies and Assessments
2.3.4 Radioactive Waste Management
2.3.5 Earth Observations for Responsible Development of Natural Resources

3. Canadians have Information to Manage their Lands and Natural Resources, and are Protected from Related Risks

3.1 Protection for Canadians and Natural Resources
3.1.1 Explosives Safety and Security
3.1.2 Materials and Certification for Safety and Security
3.1.3 Forest Disturbances Science and Application
3.1.4 Climate Change Adaptation
3.1.5 Geohazards and Public Safety

3.2 Landmass Information
3.2.1 Essential Geographic Information
3.2.2 Canada’s Legal Boundaries
3.2.3 Polar Continental Shelf Logistics Support

4.1 Internal Services
4.1.1 Governance and Management Support
4.1.2 Resource Management Services
4.1.3 Asset Management Services

 

Organizational Priorities

Last year, NRCan identified five priorities as critical to meeting its Strategic Outcomes and supporting the Government of Canada’s priorities. These priorities have guided, and will continue to guide, the Department. NRCan’s success in delivering on each priority will be assessed in the corresponding Departmental Performance Report. Details on each of the priorities and the plans for achieving them are presented below.

Risk Analysis

As a large and diverse organization, NRCan prepares for and manages a wide range of risks. The Department’s approach to risk management is outlined in its Integrated Risk Management Policy Framework, which is based on the recognition that a solid understanding of the risk environment is fundamental to achieving its Strategic Outcomes. High-level strategic and operational risks are presented in NRCan’s Corporate Risk Profile (CRP), which is monitored and updated regularly. Risk identification is a key part of NRCan’s planning process, and risks are important drivers in the establishment of priorities for the Department.

The Department’s priorities respond to specific risks. In 2013-14, NRCan will be managing key risks to the natural resource sectors and Canadians on behalf of the Government of Canada.

Important risks include:

  • adapting to shifting demand for natural resources, particularly energy, in traditional markets (US and European Union). To address this risk, NRCan places a high priority on efforts to diversify global markets for Canada’s energy sector, specifically to fast-growing Asia-Pacific economies, supported by the Government’s plan for Responsible Resource Development and other measures to enable timely and safe development of resources and related infrastructure.
  • major industrial incidents, forest fires and earthquakes. The Department will continue to mitigate the impacts of these risks, supporting the safety and security of Canadians through timely and accessible information on Canada’s natural resources and landmass to be used by the public and stakeholders to prepare for and respond to emergencies.
  • operational risks associated with high-profile programs, (e.g., large grants and contributions programs) and an aging workforce and capital asset base. The Integrated Business Plan, the Talent Management Strategy and the Investment Plan, among others, help to minimize such risks.

NRCan will continue to ensure that its resources are allocated where most needed based on thorough risk assessment and comprehensive integrated planning. Implementation of Budget 2012 measures, including the reduction of NRCan’s workforce, will continue to be done through careful, deliberate, integrated planning, while ensuring that employees are treated in an equitable, transparent and respectful manner.

Planning Summary

NRCan’s Strategic Outcomes and Program Alignment Architecture (PAA) for 2013-14 showcase its contribution to Canada and Canadians and how it measures results. The financial information related to fiscal year 2013-14 is presented according to that year’s PAA.

NRCan Financial Resources ($ thousands)
Main Estimates
2013-14
Planned Spending
2013-14
Planned Spending
2014-15
Planned Spending
2015-16
2,767,014 2,767,784 2,316,896 2,056,759
NRCan Human Resources (FTEs)
2013-14 2014-15 2015-16
4,156 4,117 4,006
Planning summary table for Strategic Outcome 1: Canada’s natural resource sectors are globally competitive
2013-14
Program
Actual Spending
2010-11
Actual Spending
2011-12
Forecast Spending
2012-13
Planned Spending
($ thousands)
Alignment with Government
of Canada Outcomes
15
2013-14 2014-15 2015-16
Program 1.1 Market Access and Diversification * * 55,428 44,913 42,764 41,801 Strong economic growth
Program 1.2 Innovation for New Products and Processes * * 96,212 102,525 61,787 60,506 Strong economic growth
Program 1.3 Investment in Natural Resource Sectors * * 80,447 54,484 48,508 42,008 Strong economic growth
Program 1.4 Statutory Programs – Atlantic Offshore** * * 800,673 1,255,167 1,100,100 1,121,468 Strong economic growth
Sub-Total     1,032,760 1,457,305 1,253,371 1,265,783  

* Note: Actual Spending for 2010-11 and 2011-12

NRCan changed its Program Alignment Architecture (PAA) for 2012-13. Actual spending for 2010-11 and 2011-12 reflects the legacy PAA structure, for which there were two programs under Strategic Outcome 1 as opposed to the current four. Actual spending for Program 1.1 Economic Opportunities for Natural Resources was $2,351,960,558 (includes the Statutory Programs related to the Atlantic Offshore of $2,103,259,499) for 2010-11 and $1,439,492,491 (includes the Statutory Programs related to the Atlantic Offshore of $1,222,730,140) for 2011-12. Actual spending for Program 1.2 Natural Resource-based Communities was $12,683,530 for 2010-11 and $23,288 for 2011-12.

**Statutory Programs:

As per the various Atlantic Offshore Accords, the Government of Canada receives royalties for offshore oil and gas production and subsequently pays an equal amount to the provinces of Nova Scotia and Newfoundland and Labrador.

Planning summary table for Strategic Outcome 2: Natural resource sectors and consumers are environmentally responsible
2013-14
Program
Actual Spending
2010-11
Actual Spending
2011-12
Forecast Spending
2012-13
Planned Spending
($ thousands)
Alignment with Government
of Canada Outcomes
16
2013-14 2014-15 2015-16
Program 2.1 Energy-efficient Practices and Lower-carbon Energy Sources * * 354,416 444,318 464,096 255,697 A clean and healthy environment
Program 2.2 Technology Innovation * * 139,470 265,762 202,009 122,822 A clean and healthy environment
Program 2.3 Responsible Natural Resource Management * * 237,333 341,051 157,779 178,425 A clean and healthy environment
Sub-Total     731,219 1,051,131 823,885 556,945  

* Note: Actual Spending for 2010-11 and 2011-12

NRCan changed its Program Alignment Architecture (PAA) for 2012-13. Actual spending for 2010-11 and 2011-12 reflects the legacy PAA structure, for which there were two programs under Strategic Outcome 2 as opposed to the current three. Actual spending for Program 2.1 Clean Energy was $1,329,561,608 for 2010-11 and $1,323,313,646 for 2011-12. Actual spending for Program 2.2 Ecosystem Risk Management was $198,295,951 for 2010-11 and $199,083,001 for 2011-12.

Planning summary table for Strategic Outcome 3: Canadians have information to manage their lands and natural resources and are protected from related risks
2013-14
Program
Actual Spending
2010-11
Actual Spending
2011-12
Forecast Spending
2012-13
Planned Spending
($ thousands)
Alignment with Government
of Canada Outcomes
17
2013-14 2014-15 2015-16
Program 3.1 Protection for Canadians and Natural Resources * * 65,381 59,202 58,051 55,829 A clean and healthy environment
Program 3.2 Landmass Information * * 76,436 44,500 41,888 40,712 A clean and healthy environment
Sub-Total     141,817 103,702 99,140 95,679  

* Note: Actual Spending for 2010-11 and 2011-12

NRCan changed its Program Alignment Architecture (PAA) for 2012-13. Actual spending for 2010-11 and 2011-12 reflects the legacy PAA structure, for which there were three programs under Strategic Outcome 3 as opposed to the current two. Actual spending for Program 3.1 Adapting to a Changing Climate and Hazard Risk Management was $60,822,193 for 2010-11 and $50,834,868 for 2011-12. Actual spending for Program 3.2 Natural Resource and Landmass Knowledge and Systems was $95,524,071 for 2010-11 and $87,235,443 for 2011-12. Actual spending for Program 3.3 Geomatics Canada Revolving Fund was -$253,414 for 2010-11 and $444,250 for 2011-12.

Planning summary table for Internal Services
2013-14
Program
Actual Spending
2010-11
Actual Spending
2011-12
Forecast Spending
2012-13
Planned Spending
($ thousands)
2013-14 2014-15 2015-16
Program 4.1 Internal Services 308,434 251,746 204,313 155,862 139,913 137,490
Sub-Total 308,434 251,746 204,313 155,862 139,913 137,490
Planning summary TOTAL for NRCan
Strategic Outcomes Programs, and Internal Services Actual Spending
2010-11
Actual Spending
2011-12
Forecast Spending
2012-13
Planned Spending
($ thousands)
2013-14 2014-15 2015-16
TOTAL 4,357,029 3,352,173 2,110,108 2,767,784 2,316,896 2,056,759

For more information on NRCan’s plans and performance please see the NRCan plans and performance reports website 18

Expenditure Profile

Departmental Spending Trend

The graph below illustrates the departmental spending trend for the period 2008-09 to 2015-16 excluding statutory funding. Note that it does not include information from the 2013 Budget.

 
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Budget by Source of Funds

  2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
A-Base : Ongoing Funding 544,760,668 591,935,567 455,462,093 430,465,079 532,545,431 442,456,682 420,865,581 429,262,159
B-Base : Special Purpose Allotment 108,258,402 122,673,000 135,195,500 136,837,000 151,652,000 174,097,028 1,897,028 1,897,028
C-Base : Temporary Funding 507,830,090 1,012,655,000 1,663,112,817 1,562,141,474 626,075,759 895,293,528 713,831,615 503,200,194

NRCan has four principal sources of funding:

  • A-Base – permanent funding to the department;
  • B-Base – funding to the department that is managed through a special purpose allotment;
  • C-Base – funding that is temporary in nature (provided for a specific time period); and
  • Statutory – funding that is provided directly as a result of legislative obligations.

NRCan’s A-Base is holding at a fairly consistent level, although it has seen some reductions through both Strategic Review 2009 and Budget 2012 savings measures.

NRCan’s B-Base is showing a downward trend as programs that are managed through special purpose allotments, such as the Nuclear Legacy Liabilities Program, are planned to wind down during 2013-14. However, NRCan recognizes that these programs may continue, which would level the B-Base spending trend over the period 2008-09 to 2015-16.

NRCan had a significant spike in C-Base funding during the period 2008-09 to 2011-12 resulting principally from programs announced as part of Canada’s Economic Action Plan 2009, including the Pulp and Paper Green Transformation Program and the ecoENERGY Retrofit Homes grant program. As these programs have terminated, NRCan’s spending trend for C-Base programs has declined. Additionally, as the department moves into 2013-14 and future years, other programs (such as Investments in Forest Industry Transformation and the Clean Energy Fund) are scheduled to sunset and other programs (such as ecoENERGY for Biofuels) have declining funding profiles.

NRCan’s statutory payments are primarily associated with the offshore agreements between the Government of Canada and both the Province of Nova Scotia and the Province of Newfoundland and Labrador. As the majority of the statutory payments are related to revenue, the spending trend for statutory payments fluctuates depending on a number of factors such as production and pricing levels.

Information on year-to-year variations for the period 2012-13 to 2015-16 can be found in the table below, which provides details on fluctuations.

Program Funding
Fiscal year Programs (Note 1) Funding Change (Note 2)
2012-13 Pulp and Paper Green Transformation Program 19 Sunset of program
ecoENERGY Technology Initiative 20 Sunset of program
Isotopes Supply Initiative 21 Sunset of program
Major Projects Management Office 22 Sunset of program
Transfer to Shared Services Canada (SSC) for the Administrative Services Review Decrease in program funding profile
ecoENERGY for Biofuels 23 Decrease in program funding profile
CANMET Materials Technology Laboratory Relocation Program 24 Decrease in program funding profile
Programs under the United Nations Convention on the Law of the Sea (UNCLOS) 25 Decrease in program funding profile
Nuclear Legacy Liabilities Program 26 Increase in program funding profile
Clean Energy Fund 27 Increase in program funding profile
ecoENERGY Innovation Initiative 28 Increase in program funding profile
ecoENERGY Efficiency Program 29 Increase in program funding profile
Sustainable Development Technology Canada – Next Generation Biofuels Fund 30 Increase in program funding profile
Port Hope Area Initiative 31 Increase in program funding profile
2013-14 Geo-mapping for Energy and Minerals Program 32 Sunset of program
Clean Energy Fund 33 Decrease in program funding profile
ecoENERGY for Biofuels 34 Decrease in program funding profile
Budget 2012 Savings Measures Decrease in program funding profile
Sustainable Development Technology Canada – Next Generation Biofuels Fund 35 Decrease in program funding profile
ecoENERGY Renewable Power Initiative 36 Decrease in program funding profile
Program of Energy Research and Development 37 Decrease in program funding profile
ecoENERGY Innovation Initiative 38 Decrease in program funding profile
Nuclear Legacy Liabilities Program 39 Increase in program funding profile
Investments in Forest Industry Transformation Program 40 Increase in program funding profile
Port Hope Area Initiative 41 New program
Forest Innovation and Expanding Market Opportunities Programs 42 New program
Satellite Station Facilities 43 New program
Isotope Technology Acceleration Program 44 New program
Responsible Resource Development Advertising Campaign New program
Major Projects Management Office 45 Renewal program
2014-15 Nuclear Legacy Liabilities Program 46 Sunset of program
Investments in Forest Industry Transformation Program 47 Sunset of program
Responsible Resource Development Advertising Campaign Sunset of program
Clean Energy Fund 48 Decrease in program funding profile
ecoENERGY for Biofuels 49 Decrease in program funding profile
Sustainable Development Technology Canada – Next Generation Biofuels Fund 50 Decrease in program funding profile
Budget 2012 Savings Measures Decrease in program funding profile
Satellite Station Facilities 51 Decrease in program funding profile
CANMET Materials Technology Laboratory Relocation Program 52 Decrease in program funding profile
Isotope Technology Acceleration Program 53 Decrease in program funding profile
Targeted Geoscience Initiative Phase 4 54 Decrease in program funding profile
Program of Energy Research and Development 55 Decrease in program funding profile
Forest Innovation and Expanding Market Opportunities Programs 56 Decrease in program funding profile
Port Hope Area Initiative 57 Increase in program funding profile
Sustainable Development Technology Canada – Technology Fund 58 Increase in program funding profile
2015-16 Clean Energy Fund 59 Sunset of program
Sustainable Development Technology Canada – Next Generation Biofuels Fund 60 Sunset of program
Satellite Station Facilities 61 Sunset of program
Major Projects Management Office 62 Sunset of program
Targeted Geoscience Initiative Phase 4 63 Sunset of program
ecoENERGY for Biofuels 64 Decrease in program funding profile
ecoENERGY Innovation Initiative 65 Decrease in program funding profile
Sustainable Development Technology Canada – Technology Fund 66 Decrease in program funding profile
Wind Power Production Incentive 67 Decrease in program funding profile
Climate Change Impacts and Adaptation68 Decrease in program funding profile
Port Hope Area Initiative69 Increase in program funding profile

Note 1: Certain programs are divided in different phases and as one phase is completed another phase may start. For this reason, the same program may be listed as both sunsetting/decreasing or new/increasing.

Note 2: Funding change is as compared to the preceding year (e.g., Geo-mapping for Energy and Minerals Program sunsets March 31, 2013, so the sunsetting is reflected in 2013-14).

Estimates by Vote

For information on NRCan’s organizational appropriations, see the 2013-14 Main Estimates 70 publication.

Contribution to the Federal Sustainable Development Strategy

The Federal Sustainable Development Strategy (FSDS) outlines the Government of Canada’s commitment to improving the transparency of environmental decision-making by articulating its key strategic environmental goals and targets. The Government will be consulting the public in 2013-14 regarding the second three-year cycle of the FSDS (2013-16). The FSDS 2013-16 will be finalized in 2013-14 and presented as part of year-end performance reporting for that year.

 

Theme I
NRCan supports the goals of this theme, which are to reduce greenhouse gas emissions and mitigate the impacts of climate change as well as to minimize the threats to air quality so that the air Canadians breathe is clean and supports healthy ecosystems. NRCan contributes to GHG mitigation and air quality through Energy-efficient Practices and Lower-carbon Energy Sources (PAA 2.1), Technology Innovation (PAA 2.2), Responsible Natural Resource Management (PAA 2.3), Protection for Canadians and Natural Resources (PAA 3.1) Economic Opportunities for Natural Resources (PAA 1.1), and Innovation for New Products and Processes (PAA 1.2).

 

Theme II
NRCan supports the goal to protect and enhance the quality of water so that it is clean, safe and secure for all Canadians and supports healthy ecosystems through activities under Responsible Natural Resources Management (PAA 2.3).

 

Theme III
NRCan supports the goal to maintain productive and resilient ecosystems with the capacity to recover and adapt; and protect areas in ways that leave them unimpaired for present and future generations, through programming in Responsible Natural Resources Management (PAA 2.3) and Protection for Canadians and Natural Resources (PAA 3.2).

 

Theme IV
NRCan supports the goal to green government operations and minimize the environmental footprint of government operations through Energy-efficient Practices and lower-carbon energy sources, technology innovation and activities in our Internal Services (PAA 4.1), specifically via the Low Carbon NRCan Initiative.

Sustainable development is central to the mandate of NRCan and essential to the future of the natural resource sectors and to the Canadian economy. The Department makes significant contributions to the FSDS. This is captured throughout this document and more specifically in NRCan’s Departmental Sustainable Development Strategy. NRCan plays a key role in delivering on the Government’s Clean Air Agenda 71 by leading on the Clean Energy component, contributing to greenhouse gas emissions mitigation and air quality through Energy-efficient Practices and Lower-carbon Energy Sources as well as by participating in adaptation and international engagement efforts such as the Canada-US Clean Energy Dialogue 72. In Budget 2011, the Government renewed its commitment to the Clean Air Agenda, as part of Canada’s Economic Action Plan, with a focus on regulatory actions to achieve real emissions reductions while maintaining Canada’s economic advantage.

More specifically, NRCan contributes to the following FSDS themes: I - Addressing Climate Change and Air Quality; II - Maintaining Water Quality and Availability; III - Protecting Nature, and; IV - Shrinking the Environmental Footprint – Beginning with Government, as denoted by the visual identifiers below.

Theme 1 - Addressing Climate Change and Air Quality

Theme II - Maintaining Water Quality and Availability

Theme III - Protecting Nature

Theme IV - Shrinking the Environmental Footprint - Beginning with Government

These contributions are components of most of the Department’s Programs, outlined in sections II and III (Greening Government Operations supplementary table). Visit NRCan’s website 73 for additional details on the Department’s activities to support sustainable development.

Strategic Environmental Assessments

NRCan also ensures that environmental concerns are considered in its decision-making through Strategic Environmental Assessments (SEAs). An analysis of the impacts on FSDS goals and targets is included in every proposal for policies, plans, or programs as part of the federal SEA process. The results of NRCan’s Detailed SEAs are made public when an initiative is announced, demonstrating the Department’s commitment to achieving the FSDS goals and targets.

For complete details on the FSDS, see the Environment Canada Sustainable Development website. 74

 

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