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Section I - Overview 2014-15

Minister’s Message

L'honorable Joe Oliver

As Minister of Natural Resources, I am pleased to present the 2014-15 Report on Plans and Priorities for Natural Resources Canada.

The natural resources sector is critical to the Canadian economy. It directly and indirectly accounts for almost one-fifth of nominal GDP, provides 1.8 million jobs throughout Canada and generates government revenue which supports important programs, such as health care and education.

We are witnessing a fundamental shift in the global economy where world trade and investment patterns are changing, particularly with regard to energy markets.

Although demand for energy is expected to grow by one-third by 2035, most of that growth comes from emerging economies in Asia, Africa and Latin America. Currently, Canada exports almost all of its energy products to the United States. For Canadians to benefit fully from our natural resources, we must be able to sell them beyond the limits of North America. However, a lack of key infrastructure, particularly in relation to energy resources, threatens to strand these resources at a time when global demand is soaring.

Now more than ever, our future prosperity depends on responsible development of these resources. Doing so requires focus and action. It means building infrastructure so our oil and gas can reach new markets. It means ensuring we have a world-class safety system, and enhancing the conditions for Aboriginal peoples to participate in Canada’s prosperity. It also means strengthening our relationships with global partners and accelerating innovation to improve economic and environmental outcomes.

To diversify our markets and attract investment, our Government will continue to reduce barriers to trade, facilitate market access, and brand Canada as a reliable and responsible supplier of resources. We also remain focused on innovation in our forest sector, improving energy efficiency, providing geoscience knowledge on areas of high resource potential to the public and researching ways to manage natural hazards, such as earthquakes. Our government understands that science and technology are integral for a strong, competitive natural resource sector.

I invite you to read this report to learn more about the initiatives that Natural Resources Canada is pursuing to support Canada’s continued prosperity through the responsible development of our natural resources.

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

 

Section I: Organizational Expenditure Overview

Organizational Profile

Minister: The Honourable Joe Oliver, P.C., M.P.

Deputy head: Serge Dupont

Ministerial portfolio:

Year established: 1994

Main legislative authorities:

Organizational Context

Raison d’être

The vision of Natural Resources Canada (NRCan) 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. 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. It uses science and technology (S&T) to help address priorities and to 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.

NRCan has offices and laboratories from coast to coast to coast. 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 Outcome(s) and Program Alignment Architecture (PAA)

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: Geospatial Innovation

  • Program 1.3: Investment in Natural Resource Sectors

    • Sub-Program 1.3.1: Mineral Investment

    • Sub-Program 1.3.2: Targeted Geoscience Initiative 4 (TGI4)

    • 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 Observation 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

NRCan has identified five priorities critical to meeting its strategic outcomes, thereby supporting the Government of Canada’s priorities. These priorities have guided, and continue to guide, the delivery of results. 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 and commitments for achieving them are presented below.

Priority TypeFootnote 1 Strategic Outcome(s) and/or Program(s)*

Expand markets and global partnerships

Previously committed to

SO 1 Canada’s Natural Resource Sectors are Globally Competitive

SO 2 Natural Resource Sectors and Consumers are Environmentally Responsible

Description

Why is this a priority?

Market access for natural resource products and services generates significant benefits to Canadians. With slower-than-anticipated economic growth and increasing domestic supply of oil and gas in the United States together with high demand for natural resources in fast-growing economies in the Asia-Pacific region, Canada must focus on expanding and diversifying its markets, for example by supporting the expansion of energy infrastructure, and on positioning itself as a reliable and responsible supplier worldwide.

What are the plans for meeting this priority?

Work supporting this priority will focus on addressing market barriers, promoting Canada as a responsible supplier of natural resource products and services in both existing and emerging markets, while encouraging investment from foreign investors. Partnerships with industry and other government departments will also be leveraged to contribute to the expansion of markets. NRCan will also continue its involvement in various international fora to exercise its leadership and promote Canada’s other natural resource interests.

Market Access and Diversification (1.1)

NRCan will address market barriers (e.g., European Union’s Fuel Quality Directive) and brand Canada globally as a reliable and responsible resource developer through international bilateral and multilateral engagement, advocacy and communications.

The Department will also leverage partnerships with provinces and territories through venues such as the Energy and Mines Ministers’ Conference to identify areas for collaboration on issues related to responsible natural resource development, distribution and use, and to align policy and program efforts addressing energy and mining priorities, where appropriate.

In partnership with forest product associations and provincial governments, NRCan will support market development and acceptance activities in offshore markets and in North America to expand opportunities for the export of Canada’s forest products. It will provide financial contributions to Canadian forest industry associations to support initiatives to expand exports to international markets and increase the use of wood in North American non-residential construction. It will also provide financial contributions and science-based information to industry partners to support the development and dissemination of information products that promote the environmental reputation of Canada's forest sector in international markets. Also, it will continue to provide expertise to other federal departments in support of Canada's international negotiating positions on trade and environmental issues.

To help increase the participation of Aboriginal people in west coast energy development, the department will engage with Aboriginal peoples on the report of the Special Federal Representative on West Coast Energy Infrastructure, as well as provinces and industry, and identify the most promising avenues for meaningful follow-up.

Investment in Natural Resource Sectors (1.3)

NRCan will promote Canadian best practices in responsible mineral resource governance and activities related to the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development and Corporate Social Responsibility.

Energy-Efficient Practices and Lower-Carbon Energy Sources (2.1)

NRCan will advance Canada’s energy and technology interests at environmental and climate change-related international fora (e.g., United Nations Framework Convention on Climate Change, the North American Leaders Summit, and the Clean Energy Ministerial process), with the aim of helping to ensure that Canadian objectives are reflected in the outcomes of the discussions Footnote 2.

NRCan will also collaborate with the United States to help ensure that the development of oil and gas resources is carried out in a responsible and sustainable manner and will work together to modernize energy use and efficiency, which could include, for example, collaboration on harmonized energy efficiency performance standards and labeling. NRCan will also continue to support Environment Canada (the lead Department for Canada) on the Clean Energy Dialogue to enhance clean energy technology implementation to reduce greenhouse gases.

 

Priority TypeFootnote 3 Strategic Outcome(s) and/or Program(s)*

Unlock resource potential through responsible development

  • Previously committed to

SO 1 Canada’s Natural Resource Sectors are Globally Competitive

SO 2 Natural Resource Sectors and Consumers are Environmentally Responsible

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

 

 

Description

Why is this a priority?

The responsible development of Canada’s natural resources is a critical contributor to our current and future prosperity. Over the next 10 years, planned investments of about $650 billion in hundreds of major energy, mining and forest sector projects across all regions will spur jobs and economic growth. Seizing this opportunity requires geoscience knowledge, investment, capital, energy and other infrastructure, an efficient and effective regulatory system, and meaningful consultation and engagement with Aboriginal peoples.

What are the plans for meeting this priority?

Efforts supporting this priority will focus on the provision of expertise as well as continuous improvements to the regulatory process and major project reviews. These efforts will encourage investments in the natural resource sectors, while facilitating the responsible management of those resources. Targeted promotion efforts will also be undertaken to attract foreign direct investment and to address market access issues.

Market Access and Diversification (1.1)

NRCan will update the Government of Canada’s regulatory framework governing energy resources by 1) advancing goal-oriented regulation in support of responsible resource development for offshore petroleum and developing modern occupational health and safety regulations for the Atlantic Accord areas, in partnership with the provinces of Nova Scotia and Newfoundland and Labrador; 2) supporting the amendment of the National Energy Board’s (NEB) Damage Prevention Regulations to ensure the effective management of safety and environmental protection for work near pipelines; 3) providing policy support to the amendment of the NEB Part VI (Oil and Gas) Regulations to update the NEB’s oil and gas import and export regulatory framework; 4) establishing regulations pursuant to the Nuclear Liability and Compensation Act to designate nuclear installations and the operators for those installations, and prescribe classes of nuclear installations and the amounts of liability applicable to those classes; and, 5) developing new regulations under the National Energy Board Act to clarify liability and ensure pipelines have sufficient financial capacity to respond to potential incidents.

Innovation for New Products and Processes (1.2)

NRCan will contribute to increasing Aboriginal participation in major resource projects relating to forestry by enhancing the depth of the Aboriginal capacity to do so and seize new opportunities. The Department will also participate in the Federal Framework for Aboriginal Economic Development through its funding program, the Strategic Partnerships Initiative.

Investment in Natural Resource Sectors (1.3)

As part of the implementation of the plan for Responsible Resource Development, NRCan will advance system-wide improvements to the federal regulatory system, and ensuring consistency across federal legislative, regulatory, policy and program development initiatives. This will also include the pipeline and marine safety systems.

NRCan will further support investments by providing expertise to increase industry and government knowledge of untapped and new sources of energy. To this end, it will deliver public geoscience information and knowledge on Canada’s Northern regions and in particular areas of high mineral and energy resource potential. NRCan will also develop proposals to pursue its work on geoscience in support of effective and efficient mineral exploration.

NRCan will also promote Canada as a competitive destination for foreign direct investment by highlighting Canada’s positive investment climate for mineral capital.

Energy-Efficient Practices and Lower-Carbon Energy Sources (2.1)

The Department will manage the loan guarantee for the Lower Churchill River hydroelectric projects.

Technology Innovation (2.2)

NRCan will support responsible resource management by demonstrating key environmental technologies for green mining to industry and other stakeholders, including the feasibility of developing productive agricultural land uses on mine waste.

Responsible Natural Resource Management (2.3)

To support responsible resource management in the forest sector, NRCan will conduct and synthesize science-based research on forest ecosystems. It will also produce estimates of forest-related carbon and greenhouse gas emissions to be used in Canada’s 2014 greenhouse gas National Inventory Report. This report will inform policy for above-ground carbon-related issues that affect forest health.

Protection for Canadians and Natural Resources (3.1)

NRCan will deliver public geoscience, tools, information and knowledge to federal and territorial governments to increase their understanding of changes to the climate and how they impact Northern infrastructure requirements and constraints, such as those imposed by changes to permafrost.

 

Priority TypeFootnote 4 Strategic Outcome(s) and/or Program(s)*

Innovate for competitiveness and environmental performance

Previously committed to

SO 1 Canada’s Natural Resource Sectors are Globally Competitive

SO 2 Natural Resource Sectors and Consumers are Environmentally Responsible

Description

Why is this a priority?

Innovation is critical to both resource sector competitiveness and improved environmental performance, contributing to increased productivity, lower costs, value-added and new products, and helping to meet environmental standards and regulations.

What are the plans for meeting this priority?

Commitments supporting this priority will focus on research, development and demonstration projects within government as well as in partnership with industry, academia, and other government departments to foster innovation in the natural resource sectors.

Market Access and Diversification (1.1)

NRCan will lead the implementation of a Government-owned, Contractor-operated model for Atomic Energy of Canada Limited’s (AECL’s) Nuclear Laboratories.

Innovation for New Products and Processes (1.2)

Through programs such as the Forest Innovation Program, NRCan will support the forest sector’s efforts to develop opportunities in bioenergy, bio-products and next generation building materials and to provide more value to its products.  

The Department will continue to work through the Federal Committee on Geomatics and Earth Observation to ensure that the way government shares, uses and manages its location-based information (i.e., geospatial information) is appropriate for new uses.

Energy-Efficient Practices and Lower-Carbon Energy Sources (2.1)

NRCan will bolster industry capacity to produce renewable forms of energy by supporting the production of up to a maximum of 15.7 terawatt-hours of clean electricity through its ecoENERGY for Renewable Power and Wind Power Production Incentive programs and by supporting Canada's alternative fuel production capacity for renewable alternatives to gasoline and diesel through its ecoENERGY for Biofuels program. 

Further, through its ecoENERGY Efficiency program, NRCan will support Canadian consumers and businesses in reducing energy consumption by aiming to contribute 25-32 petajoules of energy savings, which is equivalent to the energy required by 240,000 to 300,000 households over one year (excluding transportation requirements), and by providing training sessions on energy efficient products and practices for 200,000 individuals in the transportation sector, 800 in the buildings sector, 500 in the housing sector, and 750 in the industrial sector.

NRCan will also complete a policy paper advancing knowledge of policy options for administering marine renewable energy in the federal offshore, through its Marine Renewable Energy Enabling Measures program.

Technology Innovation (2.2)

To further support environmental performance, NRCan will implement clean energy technology projects with industry, academia and other government departments and agencies to research, develop and demonstrate innovative solutions to environmental challenges in the energy sector.

NRCan will also present to industry one advanced material technology to be identified for implementation in the design or processing components of energy efficient vehicles produced in North America. Furthermore, it will develop at least one material solution for key components in the Canadian Generation-IV Supercritical Water-cooled Reactor concept.

 

Priority TypeFootnote 5 Strategic Outcome(s) and/or Program(s)*

Leverage S&T knowledge for safety and security risk management

Previously committed to

SO 2 Natural Resource Sectors and Consumers are Environmentally Responsible

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

 

Description

Why is this a priority?

NRCan has an important role in helping prevent and reduce the environmental impacts of past, present and future natural resource development, and preparing for and managing threats and emergencies associated with natural and man-made hazards, including earthquakes, forest fires and industrial incidents. Furthermore, NRCan plays a key role in providing up-to-date information on our natural resources and landmass through Open Government, a whole-of-government initiative to ensure Canadians have easy access to the right information, in the right format, in a timely manner.

What are the plans for meeting this priority?

In 2014-15, the key commitments that will support this priority will focus on interdepartmental emergency management, nuclear waste management, climate change adaptation and the dissemination of expertise to support the management of land boundaries and natural hazards (e.g., earthquakes, forest pests).

Responsible Natural Resource Management (2.3)

To support nuclear waste management, NRCan will complete the commissioning of new water treatment plants at the New Port Hope and Port Granby facilities. The Department also expects to tender and issue a contract for construction of the Port Granby Long-Term Waste Management Facility.

Regarding the Nuclear Legacy Liabilities Program, NRCan will complete activities to support the transition of nuclear decommissioning and waste management responsibilities at the Nuclear Laboratories to the Government-owned, Contractor-operated management model.

Protection for Canadians and Natural Resources (3.1)

NRCan will pursue research for early intervention in the event of a spruce budworm outbreak and will report the results to clients and stakeholders. In addition, NRCan will co-host the Third Biennial Wildland Fire Canada Conference and produce an integrated assessment of the implications of climate change on Canada’s forest sector, using a range of future climate scenarios.

Through the national climate change Adaptation Platform, NRCan will continue to engage the provinces, territories, and the public and private sectors to develop and exchange knowledge and tools on thematic areas, including coastal management, mining and energy, in support of the development of effective climate change adaptation strategies for Canada’s regions. 

NRCan will collaborate with Public Safety Canada and other levels of government to develop Emergency Management Plans and participate in the development and execution of interdepartmental emergency management protocols and exercises.

NRCan will also continue to administer the Explosives Act, while implementing the modernized Explosives Regulations, 2013, including its new security provisions.

Landmass Information (3.2)

The Department will collect and disseminate geoscience, geodetic and geospatial information (e.g., digital mapping, satellite imagery) to support the management of Canada’s natural resources and land. 

NRCan will also complete 100% of annual survey obligations as defined in land claim legislation and agreements for Northern Canada and for First Nations Land Management and Additions to Reserve in southern Canada.

 

Priority TypeFootnote 6 Strategic Outcome(s) and/or Program(s)*

Increase the effectiveness and efficiency of NRCan operations

Previously committed to

Program 4.1 – Internal Services

Description

Why is this a priority?

NRCan strives to serve Canadians in the most effective and efficient manner possible. To this end, it is continuously improving and transforming how it delivers on its science and policy mandates and manages its assets. It also supports the implementation of government-wide initiatives to improve efficiency, such as Shared Services Canada and the consolidation of pay and benefits.

What are the plans for meeting this priority?

NRCan will undertake steps to implement its Blueprint 2020 Action Plan aligned with the guiding principles of Blueprint 2020 to achieve the vision for a revitalized, world-class public service.

The Department will implement a revised, proactive departmental approach to manage intellectual property. It will document and track NRCan’s Signature S&T projects, including development of a performance measurement framework to better assess and convey the relevance, quality and impact of the Department’s S&T expertise. And opportunities will be identified to establish new domestic and international S&T partnerships.

NRCan will continue to implement the Common Human Resources Business Process Initiative, a government-wide initiative to revitalize human resource services and systems through the standardization of processes and tools. This year, under the Initiative, new tools will be developed to support the implementation of performance management systems and the provision of human resources-related information within NRCan to enhance consistency and efficiency. The Department will also develop tools and resources to complement the NRCan Values and Ethics Code.

NRCan will closely monitor financial pressures, particularly those associated with its real property assets. To this end, it will explore options related to the possible disposal of surplus property.

NRCan will complete the implementation of the GCDOCs project, which will establish a new platform for the management of electronic records at NRCan. It will also improve a series of internal business processes in various areas, from corporate planning and reporting to travel booking and procurement. Finally, it will put in place processes and systems to better track the efficiency of its programs.

Finally, the Department will continue to support the Government of Canada’s web renewal initiative, contributing to an improved user-centric Web presence for Canadians.

 

Risk Analysis

The Department manages a range of risks, both strategic and operational, which are contained in its Corporate Risk Profile. Risk identification is a key part of NRCan’s planning process, and risks are important drivers in the establishment of priorities for the Department.

Three of these risks—Market Access and Investment Climate, Hazards and Emergency Management, and Finance—are discussed here.

Resource context

Canada has vast energy, mineral and forest resources, which are critical to its economic prosperity. This resource wealth indirectly and directly contributes to almost one-fifth of the country’s nominal Gross Domestic Product and close to 1.8 million jobs. The importance of resources to the Canadian economy is projected to grow: for example, oil sands crude oil production is expected to triple over the next 20 years, from 1.8 million barrels per day to 5.2 million barrels per day by 2030.

However, the realization of this resource potential is not a sure thing. With a domestic supply far outpacing domestic demand, Canada must ensure that it can access foreign markets if it is to maintain and grow the economic benefits from its resource endowment. As the United States is expected to be almost self-sufficient in energy, in net terms, by 2035, Canadian export destinations must increasingly be outside North America. Countries such as China, which has already surpassed the United States as the world’s largest energy consumer, and India, slated to become the third largest energy consumer by 2030, present the most logical opportunities for Canada to expand markets. In October 2013, Canada and the European Union announced an agreement in principle on a Canada-European Comprehensive Economic and Trade Agreement (CETA) that will significantly boost two-way trade and investment. Once the CETA comes into force, it will immediately eliminate all tariffs on Canadian forest, minerals, metals and energy products and will create bilateral dialogues in forestry and raw materials.

A number of factors influence the ability of natural resource sectors to get resources to market, and each of these contribute to the resource-based risks faced by Canada and managed, in part, by NRCan. These include Canada’s investment climate, the infrastructure to support harvesting resources and transporting them to market, and Canada’s international reputation in those potential markets. These risk drivers are discussed below, while NRCan’s strategy for managing them is addressed in the table following this section.

Canada must maintain an appropriate investment climate to make investment in resource development attractive. This means that financing for capital resource projects must be available and that business cases for companies to develop a given resource can be made and supported by Canadians. A lack of public support for resource projects of regional or national significance could preclude industry from conducting operations within Canada or within a particular province.

A lack of critical infrastructure to bring resources to terminals or ports is another risk for the natural resource sectors. If pipelines, rail networks and roads, as well as the support to maintain them as safe and reliable transportation routes, are not sufficient then the opportunities for the natural resource sectors will be diminished. Furthermore, if transportation infrastructure is not managed with the utmost regard to safety, the public support for natural resource projects, or even the entire industry, could decrease.

Finally, Canadian natural resources must have export destinations. The risk drivers articulated above all influence whether a given resource can be brought to a foreign market and sold. As well, Canada’s international reputation relating to, for example, its progress in meeting environmental targets could impact the acceptance of Canadian natural resource exports by other countries.

NRCan’s risk context

From an operational perspective, one of the Department’s primary challenges relates to managing its financial resources. Specific drivers of this risk include:

  1. NRCan must continue to find efficiencies in its operations.
  2. A significant portion of NRCan’s budget is temporary, which creates additional management challenges as programs sunset.
  3. NRCan must address financial pressures resulting from its aging real property assets.

These challenges impact NRCan’s ability to deliver on its priorities and core mandate, and manage the risks articulated above.

 

Risk

Risk Response Strategy

Link to Program Alignment Architecture

Market Access and Investment Climate

NRCan will continue to manage this risk through working with several other federal departments, provincial and territorial governments and representatives from the private sector to 1) promote and brand Canada abroad as a reliable and environmentally responsible trade partner, including through focused, Ministerial missions; 2) engage with Aboriginal peoples and other Canadians on the potential benefits as well as on approaches to mitigate risks associated with resource development; 3) make the regulatory review process at home more predictable and efficient while ensuring sound environmental stewardship; and 4) develop appropriate regulations.

 

In 2014-15, NRCan will:

 

  • As part of the implementation of the plan for Responsible Resource Development, advance system-wide improvements to the federal regulatory system, and ensure consistency across federal legislative, regulatory, policy and program development initiatives. This will also include the pipeline and marine safety systems.
  • Address market barriers (e.g., European Union's Fuel Quality Directive) and brand Canada globally as a reliable and responsible resource developer through international bilateral and multilateral engagement, advocacy and communications.

 

These and other commitments that help mitigate this risk are described throughout the RPP in the sections identified at right.

 

1.1.2 – Forest Products Market Access and Development

 

1.1.3 – Energy Market Regulation and Information

 

1.3.1 – Mineral Investment

 

1.3.5 – Major Projects Management Office Initiative

 

2.2.1 – Materials for Energy

 

2.3.1 – Forest Ecosystems Science and Application

 

Hazards and Emergency Management

NRCan supports the management of emergencies, proactively and reactively, thereby helping to ensure the safety and security of Canadians. This will continue to be accomplished through the provision of 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. The Department also conducts risk assessments that support the development of policies, programs and regulations and ensures learning from incidents to promote the building of resilience within the natural resource sectors.

 

In 2014-15, NRCan will:

 

  • Co-host the Third Biennial Wildland Fire Canada Conference to re-engage and strengthen working relationships between NRCan's Canadian Forest Service (CFS) and other Canadian fire management agencies and to facilitate further development of CFS fire research and fire management information systems.
  • Collaborate with Public Safety Canada and other levels of government to develop Emergency Management Plans and participate in the development and execution of interdepartmental emergency management protocols and exercises.
  • Support Privy Council Office in the development of a common operating picture for the Federal Departmental Security Office community in coordination with the Federal Committee on Geomatics and Earth Observation, through its geomatics expertise.
  • Assist Canada in its role as chair of the Arctic Council, from 2013-15, under the theme of development for people of the North, focusing on responsible Arctic resource development, safe Arctic shipping, and sustainable circumpolar communities.

 

These and other commitments that help mitigate this risk are described throughout the RPP in the sections identified at right.

2.3.4 – Radioactive Waste Management

 

2.3.5 – Earth Observation for Responsible Resource Development 

 

3.1.2 – Materials and Certification for Safety and Security

 

3.1.3 – Forest Disturbances Science and Application

 

3.1.5 – Geohazards and Public Safety

 

3.2.1 – Essential Geographic Information

 

4.1 – Internal Services

Finance

To manage its financial risks, NRCan continues to closely monitor its operating budget by conducting monthly analyses of trends and forecasting of its salary and non-salary expenditures, and comprehensive quarterly reviews.

 

In 2014-15, NRCan will:

 

  • Improve internal business processes by increasing the efficiency and effectiveness of service and operations in various areas, such as human resources, procurement, and financial reporting and procedures.
  • Closely monitor financial pressures, particularly those associated with its real property assets. To this end, it will explore options related to the possible disposal of surplus property.

 

These and other commitments that help mitigate this risk are described in the section identified at right.

4.1 – Internal Services

 

Planned Expenditures

Budgetary Financial Resources (Planned Spending—dollars)
2014 -15
Main Estimates
2014-15
Planned Spending
2015 - 16
Planned Spending
2016 -17
Planned Spending
2,534,650,611 2,534,650,611 2,290,420,322 2,325,660,365

 

Human Resources (Full-time equivalents—FTEs)
2014-15 2015-16 2016-17
3,902 3,874 3,603

 

Budgetary Planning Summary for Strategic Outcome(s) and Program(s) (dollars)
Strategic Outcome(s), Program(s) and Internal Services 2011-12 Expenditures 2012-13 Expenditures 2013-14 Forecast Spending 2014-15 Main Estimates 2014-15 Planned Spending 2015-16 Planned Spending 2016-17 Planned Spending
Strategic Outcome 1: Canada's Natural Resource Sectors are Globally Competitive
Market Access and Diversification * 55,420,361 58,921,793 56,085,530 56,085,530 43,497,846 41,589,231
Innovation for New Products and Processes * 93,948,144 104,217,164 67,598,586 67,598,586 66,175,755 64,218,235
Investment in Natural Resource Sectors * 73,319,149 62,435,605 55,641,175 55,641,175 53,472,654 54,134,355
Statutory Programs – Atlantic Offshore** * 684,964,769 850,666,916 1,293,425,000 1,293,425,000 1,328,316,000 1,518,474,000
Strategic Outcome 1 Subtotal 1,439,515,779 907,652,423 1,076,241,478 1,472,750,291 1,472,750,291   1,491,462,255 1,678,415,820
Strategic Outcome 2: Natural Resource Sectors and Consumers are Environmentally Responsible
Energy-Efficient Practices and Lower-Carbon Energy Sources * 342,424,547 318,562,949 464,018,045 464,018,045 255,596,149 188,718,695
Technology Innovation * 152,200,348 162,607,927 150,090,774 150,090,774 122,495,639 73,422,952
Responsible Natural Resource Management*** * 236,874,939 269,595,183 179,373,009 179,373,009 181,701,711 167,424,924
Strategic Outcome 2 Subtotal 1,522,396,647 731,499,834 750,766,059 793,481,827 793,481,827 559,793,499 429,566,570
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 * 55,604,146 64,918,851 55,878,528 55,878,528 52,950,476 46,610,275
Landmass Information*** * 90,961,341 73,852,417 53,620,414 53,620,414 45,306,771 44,608,900
Strategic Outcome 3 Subtotal 138,514,561 146,565,487 138,771,268 109,498,941 109,498,941 98,257,247 91,219,175
Internal Services Subtotal 251,745,618 181,093,220 203,844,318 158,919,551 158,919,551 140,907,322 126,458,800
Total 3,352,172,605 1,966,810,964 2,169,623,123 2,534,650,611 2,534,650,611 2,290,420,322 2,325,660,365

* Actual Spending for 2011-12: NRCan changed its PAA for 2012-13. Actual spending for 2011-12 reflects the legacy PAA structure which was as follows:

- Strategic Outcome 1: 1.1 Economic Opportunities for Natural Resources: $1,439,492,491 (includes the Statutory Programs related to the Atlantic Offshore of $1,222,730,140); 1.2 Natural Resource-based Communities: $23,288.

- Strategic Outcome 2: 2.1 Clean Energy: $1,323,313,646; 2.2 Ecosystem Risk Management: $199,083,001.

- Strategic Outcome 3: 3.1 Adapting to a Changing Climate and Hazard Risk Management: $50,834,868; 3.2 Natural Resource and Landmass Knowledge and Systems: $87,235,443; 3.3 Geomatics Canada Revolving Fund: $444,250.

** 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.

*** There was a slight change in the 2013-14 PAA structure at the sub-activity level that affects this table. A portion of expenditures previously reported under Landmass Information under Strategic Outcome 3 is now being reported under Responsible Natural Resource Management under Strategic Outcome 2. In 2012-13 (nil in 2011-12) expenditures in the amount of $560,000 have not been adjusted to transfer the expenditures from Landmass Information to Responsible Natural Resource Management as it was not considered a material amount.

Planned spending declines by $209 million, or 8%, from 2014-15 to 2016-17. This is attributable mainly to:

  • An increase in agreements between the Government of Canada and the provinces of Nova Scotia and Newfoundland and Labrador under the Offshore Atlantic Accords. As the majority of the payments are related to revenues, the planned spending trend fluctuates depending on a number of factors such as production and pricing levels.
  • A decline in program funding profile for several programs, the most significant of which are:
    • ecoENERGY for Biofuels;
    • Wind Power Production Incentive; 
    • Port Hope Area Initiative; and,
    • Forest Innovation and Expanding Market Opportunities
  • The sunsetting of several programs or initiatives in 2014-15 and 2015-16, including:
    • Clean Energy Fund;
    • ecoENERGY Innovation Initiative;
    • ecoENERGY Efficiency;
    • Grant to the Canada Foundation for Sustainable Development Technology; 
    • Stakeholder Engagement Outreach and Advertising;
    • Climate Change Impacts and Adaptation;
    • Satellite Station Facilities;
    • Isotope Technology Acceleration Program; and
    • Major Projects Management Office Initiative.

NRCan recognizes that some of the aforementioned sunsetting programs may continue, which depending on the amount of renewal, could level the spending trend in temporary funding over the period 2014-15 to 2016-17. 

For the explanation on variances in actual expenditures and forecasted spending between 2011-12 and 2013-14, refer to the analysis included in the Departmental Spending Trend section.

Alignment to Government of Canada Outcomes

2014-15 Planned Spending by Whole-of-Government-Framework Spending Area (dollars)
Strategic Outcome Program Spending Area Government of Canada Outcome 2014-15 Planned Spending
1 Canada’s Natural Resource Sectors are Globally Competitive 1.1 Market Access and Diversification Economic Affairs Strong Economic Growth 56,085,530
1.2 Innovation for New Products and Processes Economic Affairs Strong Economic Growth 67,598,586
1.3 Investment in Natural Resource Sectors Economic Affairs Strong Economic Growth 55,641,175
1.4 Statutory Programs – Atlantic Offshore Economic Affairs Strong Economic Growth 1,293,425,000
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 464,018,045
2.2 Technology Innovation Economic Affairs A Clean and Healthy Environment 150,090,774
2.3 Responsible Natural Resource Management Economic Affairs A Clean and Healthy Environment 179,373,009
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 Economic Affairs A Safe and Secure Canada 55,878,528
3.2 Landmass Information Economic Affairs A Safe and Secure Canada 53,620,414
Total Planned Spending by Spending Area (dollars)
Spending Area Total Planned Spending
Economic Affairs 2,534,650,611
Social Affairs -
International Affairs -
Government Affairs -

Departmental Spending Trend

Spending Trend Graph

Spending Trend Graph

Text version
Departmental Spending Trend Graph
Fiscal Year Total Spending Sunset Programs
2011-2012 3,352,172,605  
2012-2013 1,966,810,964  
2013-2014 2,169,623,123  
2014-2015 2,408,566,979 126,083,632
2015-16 2,188,173,243 102,247,079
2016-2017 2,250,021,913 75,638,452

For the fiscal year 2011-12 and 2012-13, actual spending represents the actual expenditures as reported in the Public Accounts. For fiscal year 2013-14, the forecast spending represents forecasted expenditures as of the end of November 2013. For the period 2014-15 to 2016-17, the planned spending reflects approved funding by Treasury Board to support the departmental strategic outcomes.

As indicated in the chart above, NRCan’s forecast spending for 2013-14 is $2.170 billion, a decrease of $1.182 billion, or 35%, from 2011-12 spending of $3.352 billion. This decrease is mainly due to:

  • A reduction under the Offshore Atlantic Accords (Accords), which are associated with offshore agreements between the Government of Canada and the provinces of Nova Scotia and Newfoundland and Labrador. As the majority of the payments are related to revenues, the actual and forecasted spending trend fluctuates depending on a number of factors such as production and pricing levels.
  • A variation in program spending:
    •  Decrease in the Clean Energy Fund; 
    •  Decrease in ecoENERGY for Biofuels;
    •  Increase in ecoENERGY Innovation Initiative;
    •  Increase for the Investment in Forest Industry Transformation Program; and
    •  Increase in ecoENERGY for Renewable Power.
  • The sunsetting of the following programs in 2011-12:
    • Pulp and Paper Green Transformation Program;
    • ecoENERGY Retrofit – Homes Grant Program; and
    • ecoENERGY Technology Initiative.
  • The saving measures announced in Budget 2012. 

For the explanation on variances in planned spending between 2014-15 and 2016-17, refer to the analysis included in the Planned Expenditures section.

Estimates by Vote

For information on NRCan’s organizational appropriations, please see the 2014-15 Main Estimates publicationxvi.

Contribution to the Federal Sustainable Development Strategy (FSDS)

The 2013-16 Federal Sustainable Development Strategy (FSDS)xvii, tabled on November 4, 2013, guides the Government of Canada’s 2013-16 sustainable development activities. The FSDS articulates Canada’s federal sustainable development priorities for the three year period, as required by the Federal Sustainable Development Act

NRCan contributes to the following themes of the FSDS as denoted by the visual identifiers below:

Theme I Theme II Theme III Theme IV

Goal 1 of Theme I aims to mitigate the effects of climate change and reduce greenhouse gas emission levels. This goal is consistent with NRCan’s second strategic outcome, namely Natural Resource Sectors and Consumers are Environmentally Responsible. The commitments supporting this goal fall under the following sub-programs:

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

NRCan will also undertake work to specifically address the impacts of climate change through commitments aligned to sub-program 3.1.4 – Climate Change Adaptation.

Goal 3 of Theme II seeks to protect and enhance water so that it is clean, safe and secure for all Canadians and supports healthy ecosystems. This goal is consistent with NRCan’s second strategic outcome, namely Natural Resource Sectors and Consumers are Environmentally Responsible. The commitments that support this goal fall under the following sub-programs:

  • 2.3.2 – Groundwater Geoscience
  • 2.3.4 – Radioactive Waste Management

Goal 4 of Theme III is related to NRCan’s third strategic outcome, namely, Canadians have Information to Manage their Lands and Natural Resources, and are Protected from Related Risks. The commitments support this goal fall under the following sub-programs:

  • 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
  • 3.1.5 – Geohazards and Public Safety

NRCan will also conduct work on sustainable forest management, which is a target under Goal 5 Efficient economic and ecological use of resources – Production and consumption of biological resources.

Goal 4 of Theme IV aims to reduce the carbon footprint and energy consumption of federal operations. NRCan will support this through commitments carried out under program activity 4.1 – Internal Services.

All of the commitments under these sub-programs are further explained in Section II of this document.

NRCan also ensures that its decision-making process includes consideration of the FSDS goals and targets through the Strategic Environmental Assessment (SEA) process. An SEA for policy, plan or program proposals includes an analysis of the impacts of the given proposal on the environment, including on the FSDS goals and targets. The results of NRCan’s Detailed SEAs are made public when respective initiatives are announced, demonstrating that environmental factors were integrated into the decision-making process.

For additional details on NRCan’s activities to support sustainable development, see Section II of this RPP and the departmental website. For complete details on the Strategy, please see the Federal Sustainable Development Strategyxviii website.

 

 

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