Up-Front Multi-Year Funding

Up Front Multi Year Spending: Sustainable Development Technology Canada (SDTC) - SD Tech Fund™

Start date: March 26, 2001
End date: December 31, 2017

Total funding: $590 million* (Split evenly between NRCan and Environment Canada as per the SD Tech Fund Agreement)

Description: 
To stimulate the development and demonstration of innovative Canadian technological solutions that address climate change, clean air, clean water and clean soil.

Strategic Outcome: 2 – Natural Resource Sectors and Consumers are Environmentally Responsible

Summary of results achieved by the recipient: 
SDTC has allocated $6841 million and leveraged $1.8 billion in funding from other partners, for a total of $2.5 billion in portfolio value across its 269 projects. A total of 98 projects have been completed since the Fund’s inception. In 2013, the Foundation expended $69 million to support projects under the SD Tech Fund™. It also allocated $102 million in funding projects, including $219 million of leveraged capital.

SDTC reported that 90% of projects continue to be led by small and medium-sized companies. Further, SDTC-funded projects are expected to generate positive impacts related to climate change, clean air, clean water and clean soil, with 90% of projects generating multiple environmental benefits.

SDTC estimates a total annual reduction of greenhouse gas (GHG) emissions in 2015, attributed to the 269 projects funded to date, of between 6 and 12 megatonnes of carbon dioxide equivalent. Sixty-five projects, completed before 2014, have reported actual emission reductions of approximately 2.8 megatonnes in 2013.

Program and Sub-program: 2.2 – Technology Innovation

($ millions) 2011-12
Actual
Spending
2012-13
Actual
Spending
2013-14
Planned
Spending
2013-14
Total
Authorities
2013-14
Actual
Spending
Variances
Statutory 0.0 0.0 0.0 0.0 0.0 0.0

Comments on variances: 
The SD Tech FundTM received money upfront in 2004-05, and is currently transferring to a cash on-demand model.

Significant evaluation findings by the recipient during the reporting year and future plan: 
There were no evaluations in 2013-14. The next evaluation is planned for 2016-17, with the final report completed by December 31, 2017.

Significant audit findings by the recipient during the reporting year and future plan:
A standard financial audit was completed as required by the funding agreement and results were provided in the 2012 SDTC Annual Report. There were no other audits in 2013-14. The funding agreement stipulates that Canada or the Auditor General may undertake a compliance audit at any time over the life of the SD Tech FundTM.

Link to recipient’s website: 
http://www.sdtc.ca

Notes:
1 Interest earned on the fund has allowed SDTC to allocate more funding towards SD Tech FundTM projects than the original grants provided by the federal government.

Up Front Multi Year Spending: Sustainable Development Technology Canada (SDTC) for the NextGen Biofuels Fund™

Start date: July 30, 2007
End date September 30 2027; last disbursement of funds by NRCan to SDTC by March 31, 2015

Total funding: $137.5 million* ($100 million statutory and $37.5 million appropriation). Original funding was $250 million. In 2012-13, $62.5 million in appropriated funds was not re-profiled and was returned to the Consolidated Revenue Fund.

*NRCan's contribution via the SDTC NextGen Biofuels agreement is $137.5 million. Environment Canada contributes an equal amount of $137.5 million.

Description: 
SDTC is managing the NextGen Biofuels Fund™ (NGBF), which supports up to 40% of eligible project costs to a maximum of $200 million per project for the establishment of first-of-kind, large-scale demonstration next-generation renewable fuel production facilities to encourage the future sustainability and success of renewable fuels. Next-generation renewable fuels are derived from non-traditional renewable feedstocks, such as forest biomass, fast-growing grasses, and agricultural residues, and are produced with non-conventional conversion technologies. 

Since next-generation technologies are capital equipment intensive, they constitute a greater debt financing risk. The support provided by the NGBF is meant to encourage the retention and growth of technology expertise and innovation capacity for next-generation renewable fuels production in Canada. 

Of the $500 million* originally allocated to NextGen Biofuels Fund™, $200 million was statutory funding. The remaining $300 million in funding was to be appropriated by Parliament over the period 2008-09 to 2014-15.

Strategic Outcome: 2 – Natural Resource Sectors and Consumers are Environmentally Responsible

Summary of results achieved by the recipient: 
In 2013-14, SDTC had one project terminate at an early stage and continued to support the front-end development phase of two projects which, should they be approved for full investment, would represent a total investment of $180.8 million.

Program and Sub-program: 2.1 – Energy–efficient Practices and Lower-carbon Energy Sources

($ millions) 2011-12
Actual
Spending
2012-13
Actual
Spending
2013-14
Planned
Spending
2013-14
Total
Authorities
2013-14
Actual
Spending
Variances
Statutory 0.0 0.0 0.0 0.0 0.0 0.0
Appropriation 0.0 0.0 50.0 50.0 0.0 50.0

Comments on variances: 
There is a large difference between planned and actual expenditures for 2013-14. There was no spending in the year because no projects were advanced enough to require SDTC to draw the funds from NRCan.

Significant evaluation findings by the recipient during the reporting year and future plan: 
No evaluations were conducted in 2013-14. The next evaluation is planned for 2017-18.

Significant audit findings by the recipient during the reporting year and future plan:
No audits were conducted in 2013-14.

Link to recipient’s website: 
http://www.sdtc.ca

Up-Front Multi Year Spending: Green Municipal Fund (GMF) (Statutory)

Federation of Canadian Municipalities’ Green Municipal Fund

Start date: March 31, 2000
End date: In perpetuity

Total funding: $275.0 million*
*NRCan’s contribution via the GMF Funding agreement is $275 million. Environment Canada contributes the other $275 million.

Description:
The Government of Canada endowed the Federation of Canadian Municipalities (FCM), a non-profit organization, with $550 million to establish the Green Municipal Fund (GMF) to provide long-term, sustainable financing for municipal governments and their partners. The GMF invests in plans, studies and projects that provide the best examples of municipal leadership in sustainable development and that can be replicated in other Canadian communities.

The intent of the GMF is to encourage investment in environmental municipal infrastructure.  Specifically, the priorities of the fund are to have a positive impact on the health and the quality of life of Canadians by reducing greenhouse gas emissions, improving local air, water and soil quality and promoting renewable energy by supporting environmental studies and projects within the municipal sector. Additional considerations include the potential for economic and/or social benefits.

The amount of GMF financing available to municipalities is directly related to the environmental, economic and social benefits of the projects undertaken. Grants of up to 50% to a maximum of $175,000 are available for plans, studies and field tests. GMF can provide below-market financing for capital projects up to 80% of costs to a maximum of $10 million in loans combined with up to $1 million in grants (up to a maximum of 20% of the loan amount) per project. Brownfield projects are eligible for below-market loans only, with no funding limit.

Under the GMF agreement, the Government of Canada (represented by NRCan and Environment Canada) participates in the governance of this revolving fund, along with representatives from the public and private sectors, including municipal officials and technical experts, through a Peer Review Committee and an Advisory Council. The FCM Board of Directors approves projects based on the Council’s recommendations.

Strategic Outcome: 2 – Natural Resource Sectors and Consumers are Environmentally Responsible

Summary of results achieved by the recipient: 
According to the FCM, as of March 31, 2013, the GMF had committed $668 million for more than 987 sustainable community plans, feasibility studies, field tests and capital projects with the potential to leverage over $3.3 billion of economic activity in approximately 477 Canadian communities. The FCM reports that environmental benefits included the annual reduction of an estimated 352,000 tonnes of carbon dioxide from 88 completed capital projects.

Program: 2.1 – Energy–Efficient Practices and Lower-Carbon Energy Sources

($ millions) 2011-12
Actual
Spending
2012-13
Actual
Spending
2013-14
Planned
Spending
2013-14
Total
Authorities
2013-14
Actual
Spending
Variances
Statutory 0.0 0.0 0.0 0.0 0.0 0.0

Comments on variances: 
No funds appear because the FCM received endowments from the Government of Canada beginning in 2000, so NRCan does not carry planned or actual spending.

Significant evaluation findings by the recipient during the reporting year and future plan: 
The next independent review of the GMF will be completed in 2014.

Significant audit findings by the recipient during the reporting year and future plan:
Final audited results for 2013-14 will be available in the GMF Annual Report 2013-14.

The next independent review of the GMF will be completed in 2014.

Link to recipient’s website: 
http://www.fcm.ca/home/programs/green-municipal-fund.htm