Section I: Organizational Expenditure Overview 2014-15

Organizational Profile

Appropriate Minister: The Honourable Gordon James Carr, P.C., M.P.

Institutional Head: Bob Hamilton

Ministerial Portfolio:

Year established: 1994

Main legislative authorities:

Organizational Context

Raison d’être

Natural Resources Canada (NRCan) works to improve the quality of life of Canadians by ensuring that our resource sector remains a source of jobs, prosperity, and opportunity within the context of a world that increasingly values sustainable practices and low carbon processes.

Responsibilities

The Minister of Natural Resources has responsibilities under more than 30 acts of Parliament. The Minister’s core powers, duties and functions are set forth in the Department of Natural Resources Act, the Resources and Technical Surveys Act and the Forestry Act. NRCan also works in areas of shared responsibilities with provinces.

To deliver on its responsibilities, NRCan relies on a number of instruments: policy, programs, regulations, and science and technology. It uses partnerships and international collaboration to help drive progress on natural resource issues that are 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.

NRCan has offices and laboratories across the country. About half of its occupied facilities are in the National Capital Region, with the remainder being distributed from Atlantic Canada, through Quebec and Ontario, to the Western and Pacific Regions and Northern Canada.

Strategic Outcomes and Program Alignment Architecture

  • Strategic Outcome 1: Canada’s Natural Resource Sectors are Globally Competitive
    • Program 1.1: Market Access and Diversification
      • Sub-Program 1.1.1: Mineral and Metal Markets Access and Development
      • Sub-Program 1.1.2: Forest Products Market Access and Development
      • Sub-Program 1.1.3: Energy Market Regulation and Information
    • Program 1.2: Innovation for New Products and Processes
      • Sub-Program 1.2.1: Mining Innovation
      • Sub-Program 1.2.2: Forest Sector Innovation
      • Sub-Program 1.2.3: Geomatics Innovation
    • Program 1.3: Investment in Natural Resource Sectors
      • Sub-Program 1.3.1: Mineral Investment
      • Sub-Program 1.3.2: Targeted Geoscience Initiative
      • Sub-Program 1.3.3: Geo-mapping for Energy and Minerals
      • Sub-Program 1.3.4: New Energy Supply
      • Sub-Program 1.3.5: Major Projects Management Office Initiative
    • Program 1.4: Statutory Programs – Atlantic Offshore
  • Strategic Outcome 2: Natural Resource Sectors and Consumers are Environmentally Responsible
    • Program 2.1: Energy-Efficient Practices and Lower-Carbon Energy Sources
      • Sub-Program 2.1.1: Renewable Energy Deployment
      • Sub-Program 2.1.2: Support for Clean Energy Decision-Making
      • Sub-Program 2.1.3: Alternative Transportation Fuels
      • Sub-Program 2.1.4: Energy Efficiency
    • Program 2.2: Technology Innovation
      • Sub-Program 2.2.1: Materials for Energy
      • Sub-Program 2.2.2: Green Mining
      • Sub-Program 2.2.3: Clean Energy Science and Technology
    • Program 2.3: Responsible Natural Resource Management
      • Sub-Program 2.3.1: Forest Ecosystem Science and Application
      • Sub-Program 2.3.2: Groundwater Geoscience
      • Sub-Program 2.3.3: Environmental Studies and Assessments
      • Sub-Program 2.3.4: Radioactive Waste Management
      • Sub-Program 2.3.5: Earth Observations for Responsible Resource Development
  • Strategic Outcome 3: Canadians have Information to Manage their Lands and Natural Resources, and are Protected from Related Risks
    • Program 3.1: Protection for Canadians and Natural Resources
      • Sub-Program 3.1.1: Explosives Safety and Security
      • Sub-Program 3.1.2: Materials and Certification for Safety and Security
      • Sub-Program 3.1.3: Forest Disturbances Science and Application
      • Sub-Program 3.1.4: Climate Change Adaptation
      • Sub-Program 3.1.5: Geohazards and Public Safety
    • Program 3.2: Landmass Information
      • Sub-Program 3.2.1: Essential Geographic Information
      • Sub-Program 3.2.2: Canada’s Legal Boundaries
      • Sub-Program 3.2.3: Polar Continental Shelf Logistics Support
      • Sub-Program 3.2.4: United Nations Convention on the Law of the Sea
    • Program 4.1: Internal Services

Organizational Priorities

In 2014-15, NRCan supported key Government of Canada (GC) priorities. The Department played a lead role in:

  • Expanding markets and global partnerships;
  • Unlocking resource potential through responsible development;
  • Leveraging S&T knowledge for safety and security risk management;
  • Innovating for competitiveness and environmental performance; and
  • Increasing the effectiveness and efficiency of NRCan operations.

Information on how each of these priorities is being delivered is found below under the Summary of Progress.

1Type is defined as follows: previously committed to – committed to in the first or second fiscal year prior to the subject year of the report; ongoing – committed to at least three fiscal years prior to the subject year of the report; and new – newly committed to in the reporting year of the RPP or DPR. If another type that is specific to the department is introduced, an explanation of its meaning must be provided.

Risk Analysis

NRCan recognizes that a solid understanding of its risk environment is fundamental to achieving its strategic outcomes and maintaining operational efficiency and effectiveness. Within its mandate and the levers at its disposition, NRCan endeavours to respond to uncertainties, including opportunities, in the global and domestic contexts and their potential impact on Canada’s natural resource sectors.

Key Risks

 

Actual Expenditures

Budgetary Financial Resources (dollars)
2014-15
Main Estimates
2014-15
Planned Spending
2014-15
Total Authorities
Available for Use
2014-15
Actual Spending
(authorities used)
Difference
(actual minus planned)
2,534,650,611 2,534,650,611 2,282,358,631 2,049,418,787 (485,231,824)

 

Human Resources (Full-Time Equivalents [FTEs])
2014-15
Planned
2014-15
Actual
2014-15
Difference
(actual minus planned)
3,902 3,913 11

 

Budgetary Performance Summary for Strategic Outcomes and Programs (dollars)
Strategic Outcome(s), Program(s) and Internal Services 2014-15
Main Estimates
2014-15
Planned Spending
2015-16
Planned Spending
2016-17
Planned Spending
2014-15
Total Authorities Available for Use
2014-15
Actual Spending (authorities used)
2013-14
Actual Spending (authorities used)
2012–13
Actual Spending (authorities used)
Strategic Outcome: 1. Canada’s Natural Resource Sectors are Globally Competitive
Market Access and Diversification 56,085,530 56,085,530 48,685,006 46,583,308 64,507,366 61,566,240 59,733,334 55,420,361
Innovation for New Products and Processes 67,598,586 67,598,586 83,438,001 95,060,475 71,742,031 71,707,214 94,093,063 93,948,144
Investment in Natural Resource Sectors 55,641,175 55,641,175 54,230,114 54,864,751 61,525,666 60,589,504 65,333,593 73,319,149
Statutory Programs- Atlantic Offshore 1,293,425,000 1,293,425,000 1,181,938,140 1,108,579,456 837,746,067 837,746,067 795,884,721 684,964,769
Subtotal 1,472,750,291 1,472,750,291 1,368,291,261 1,305,087,990 1,035,521,130 1,031,609,025 1,015,044,711 907,652,423
Strategic Outcome: 2. Natural Resource Sectors and Consumers are Environmentally Responsible
Energy-Efficient Practices and Lower-Carbon Energy Sources 464,018,045 464,018,045 253,978,461 187,217,607 370,539,168 291,745,439 314,652,883 342,424,547
Technology Innovation 150,090,774 150,090,774 126,472,078 112,852,111 163,911,547 151,832,220 155,738,548 152,200,348
Responsible Natural Resource Management 179,373,009 179,373,009 193,117,981 165,816,726 387,092,977 267,570,932 282,047,031 236,874,939
Subtotal 793,481,827 793,481,827 573,568,520 465,886,444 921,543,692 711,148,591 752,438,462 731,499,834
Strategic Outcome: 3. Canadians have Information to Manage their Lands and Natural Resources, and are Protected from Related Risks
Protection for Canadians and Natural Resources 55,878,528 55,878,528 58,672,639 59,053,121 66,173,756 65,692,439 65,535,095 55,604,146
Landmass Information 53,620,414 53,620,414 71,155,143 51,472,071 89,926,292 78,469,116 73,828,231 90,961,341
Subtotal 109,498,941 109,498,941 129,827,782 110,525,192 156,100,048 144,161,555 139,363,326 146,565,487
Internal Services Subtotal 158,919,551 158,919,551 142,789,148 128,635,058 169,193,761 162,499,616 184,198,094 181,093,220
Total 2,534,650,611 2,534,650,611 2,214,476,711 2,010,134,684 2,282,358,631 2,049,418,787 2,091,044,593 1,966,810,964

The overall $485 million difference between Planned Spending and Actual Spending is attributed to a $252 million reduction in authorities and lapse of $233 million. The reduction in authorities and the lapse are explained below.

NRCan’s planned spending of $2.535 billion was adjusted during the year to $2.282 billion to reflect changes in authorities granted in Budget 2014 and adjustments to statutory items. The reduction of $252 million is explained by a combination of increases and decreases.

Increases included funding for the extension of the NLLP and the United Nations Convention on the Law of the Sea (UNCLOS); the renewal of the Investments in Forest Industry Transformation Program; the facilitation of Aboriginal Participation in West Coast Energy Development; the Genomics Research and Development Initiative, as well as comprehensive claims and self-government negotiations across Canada. Increases were also a result of transfers from the Department of National Defence for the Canadian Forces Arctic Training Centre and for the support and advice for responding to the GC’s public safety and security policy imperatives; a transfer from Aboriginal Affairs and Northern Development Canada (AANDC) to enable the delivery of cost-effective, safe and efficient field logistics for the Canadian High Arctic Research Station Science and Technology program; the operating budget and capital budget carry forward, and collective bargaining for amounts before the implementation of the two year operating budget freeze.

Decreases included transfers to other departments, and reduced statutory payments to the Newfoundland Offshore Petroleum Resource Revenue Fund (which were lower than initially forecasted due to lower oil prices), Nova Scotia Crown Share Adjustment Payments (due to reduced natural gas prices along with lower production), payments to Newfoundland and Labrador and Nova Scotia Offshore Petroleum Boards as a result of voluntary remittances received from both boards and provinces.

NRCan’s actual spending of $2.049 billion compared to total authorities of $2.282 billion resulted in a lapse of $233 million, primarily due to funding being re-profiled into future years for the Port Hope Area Initiative, the Grant to Sustainable Development Technology Canada for the Technology Fund, UNCLOS, and the Gunnar mine, as well as funding for the Grant to Sustainable Development Technology Canada Next Generation Biofuels Fund, which was not provided to Sustainable Development Technology Canada. In addition, a lapse in the Grants and Contributions vote pertaining to the ecoENERGY for Biofuels program (due to funds not committed to any contribution agreements and under-production by biofuel companies) and the ecoENERGY Renewable Power program (due to lower incentive payouts based on lower production levels) contributed to the reduction in spending.

Alignment of Spending With the Whole-of-Government Framework

Alignment of 2014-15 Actual Spending With the Whole-of-Government FrameworkFootnote xi (dollars)
Strategic Outcome Program Spending Area Government of Canada Outcome 2014-15 Actual Spending
1 Canada’s Natural Resource Sectors are Globally Competitive 1.1 Market Access and Diversification Economic Affairs Strong Economic Growth 61,566,240
1.2 Innovation for New Products and Processes Economic Affairs Strong Economic Growth 71,707,214
1.3 Investment in Natural Resource Sectors Economic Affairs Strong Economic Growth 60,589,504
1.4 Statutory Programs- Atlantic Offshore Economic Affairs Strong Economic Growth 837,746,067
2 Natural Resource Sectors and Consumers are Environmentally Responsible 2.1 Energy-Efficient Practices and Lower-Carbon Energy Sources Economic Affairs A Clean and Healthy Environment 291,745,439
2.2 Technology Innovation Economic Affairs A Clean and Healthy Environment 151,832,220
2.3 Responsible Natural Resource Management Economic Affairs A Clean and Healthy Environment 267,570,932
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 Social Affairs A Safe and Secure Canada 65,692,439
3.2 Landmass Information Social Affairs A Safe and Secure Canada 78,469,116

 

Total Spending by Spending Area (dollars)
Spending Area Total Planned Spending Total Actual Spending
Economic Affairs 2,266,232,118 1,742,757,616
Social Affairs 109,498,941 144,161,555
International Affairs

 

 

Government Affairs

 

 

 

Departmental Spending Trend

Departmental Spending Trend Graph

Departmental Spending Trend Graph

 

Text version
The table below illustrates the departmental spending trend, in dollars, for the period 2011-12 to 2016-17.
  2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Sunset Programs 0 0 0 265,083,632 104,654,006 75,638,452
Total Spending 3,352,172,605 1,966,810,964 2,091,044,593 2,269,566,979 2,185,766,316 2,250,021,913
 

For fiscal years 2012-13, 2013-14 and 2014-15, the figures represent the actual expenditures as reported in the Public Accounts. NRCan’s spending profile remains steady over the period 2012-13 to 2014-15.

For the periods 2015-16 to 2017-18, the figures represent the total planned spending for the fiscal year, which reflects approved funding by Treasury Board to support the departmental strategic outcomes. The sunset amounts represent programs that are set to expire in that fiscal year, for which no government decision on the program’s future has been made. In 2015-16, a significant portion ($231.3 million) of the sunsetting programs is related to the NLLP. Planned spending from 2015-16 to 2017-18 is declining in both Voted and Statutory authorities.

Major initiatives sunsetting in 2015-16 include:

  • Nuclear Legacy Liabilities Program;
  • ecoENERGY Innovation Initiative; and
  • ecoENERGY Efficiency Program.

Major initiatives sunsetting in 2016-17 include:

  • Federal Infrastructure Initiative;
  • ecoENERGY for Biofuels; and
  • Wind Power Production Incentive.

Major initiatives sunsetting in 2017-18 include:

  • Investments in Forest Industry Transformation Program; and
  • Forest Innovation and Expanding Market Opportunities programs, which were extended to 2017-18 in Budget 2015 for which the funding has not yet been included in planned spending for 2017-18. 

Estimates by Vote

For information on NRCan’s organizational Votes and statutory expenditures, consult the Public Accounts of Canada 2014 on the Public Works and Government Services Canada website.Footnote xii