Details on transfer payment programs of $5 million or more

NRCan’s Green Construction through Wood (GCWood) Program is aimed at supporting the use of wood in non-traditional construction projects, such as tall buildings, low-rise non-residential buildings and bridges. The GCWood Program launch follows the Government’s Budget 2017 announcement of $39.8M over four years, starting in April 2018, to undertake this initiative.
The GCWood Program supports Canada’s transition to a more wood-inclusive construction industry by funding projects that encourages:

• Greater adoption and commercialization of wood-based products in the construction of innovative tall wood buildings, timber bridges, and low-rise non-residential wood buildings;
• Replication of demonstrated innovative non-traditional wood-based buildings and timber bridges; and,
• Research that addresses the gap in technical information needed to facilitate revisions to the 2020 and 2025 National Building Code of Canada (NBCC) to allow tall wood buildings beyond the current 6 storey limit.

The GCWood program had great success in 2019-20, seeing all three expressions of interest closed with excellent uptake from industry.  All projects submitted have been evaluated by an expert panel, and nearly two dozen tall wood, low-rise commercial, and bridge projects were shortlisted.  Of those demonstration projects shortlisted, 13 have now had funding agreements signed, providing over $25 million in support to industry.

GCWood provided support to the code change process in Canada by funding key R&D activities at the National Research Council (NRC) to address research gaps identified by the Task Groups and Working Groups of the Canadian Commission on Building and Fire Codes (CCBFC) committee.  These activities helped support the inclusion of mass timber buildings up to 12-stories in height in the upcoming 2020 National Building Code of Canada (NBCC) being released.

GCWood also supported efforts to advance wood education at engineering and architectural schools across Canada by funding the development of key educational resources and tools required to support wood design education, such as: curricula, handbooks, technical guides, and course materials.

GCWood worked closely with partners to increase the capacity of practitioners in Canada by supporting the development of design tools such as the Gestimat GHG calculator and the next edition of a tall wood building guide.

To showcase innovative Canadian engineered wood products and wood design, engineering and construction techniques arising from these projects, several investments through the Green Construction through Wood program were publically announced, including investing:

• $4.1 million in a 10-storey Tall Wood building on the George Brown campus in Toronto. The project incorporates advanced mass timber building technology and will be a living lab for students;
• $2 million for a 4-storey office building in Toronto identified as a pilot project as part of Canada’s Green Building Council’s Zero Carbon Building Pilot Program; and,
• Almost $2.5 million to implement advanced wood design education at Canadian post-secondary institutions through the development of course materials and other education resources.

No audits in 2019-20.

Joint audit and evaluation of Green Construction via Wood, planned for completion in FY 2022-23.

No evaluations in 2019-20.

A joint audit and evaluation of GCWood is planned for completion in FY 2022-23.

GCWood issued a public Call for Expressions of Interest for each aspect of the program’s demonstration component (tall wood, low-rise non-residential, and bridges) which is promoted through the NRCan website and social media, as well as through partner organizations across the country. 

Following the close of all three calls, GCWood heavily engaged with applicants and recipients through email, conference calls and virtual meetings, and in-person meetings to conduct due diligence on selected projects and work with them through the process to establish funding agreements.

Clean Growth in Natural Resource Sectors

The Impact Canada Clean Technology Challenges are focused on unlocking breakthrough solutions to complex and persistent problems in developing clean technology. In the long term, this program is intended to contribute to improved environmental and economic performance in Canada’s natural resource and clean technology sectors. In 2019-20, NRCan continued to advance the five Challenges launched in 2018-19, while also launching a sixth Challenge, Charging the Future.

Women in Cleantech Challenge ($6 million):
Women in Cleantech finalists collectively leveraged over $7 million dollars from a mix of investors, exceeding the total prize value of the Challenge ($6M). Agreements were signed with five of the six finalists to pair them with federal labs; this collaboration will support advancing the finalists’ cleantech solutions.

The Sky’s the Limit Challenge ($14 million):
The four finalists were announced by Minister Sohi at the 10th Clean Energy Ministerial and 4th Mission Innovation Ministerial Meetings, hosted by Canada in May 2019. Contribution agreements for up to $2 million in funding have been signed with each of the four finalists. The finalists are exploring a range of technical and business approaches for producing sustainable aviation fuel in Canada with the lowest emissions at the lowest price.

Canada-UK Power Forward Challenge ($20 million):
The seven finalists (three in Canada and four in the UK) were announced through a joint Canada-UK Ministerial announcement at the Rushlight Summer Showcase in London, UK in June 2019. Contribution agreements for up to $3 million each were signed with the three Canadian finalists to demonstrate their innovative smart grid solutions for cleaner, more flexible power grids. Finalists will address common technical barriers and create new commercial opportunities.

Crush It! Challenge ($10 million):
The six finalists were announced at the Canadian Institute of Mining Convention in Montreal in April 2019. Contribution agreements for up to $800,000 each were signed with the six finalists. The finalists will develop prototype solutions to drive transformative energy efficiency improvements in the crushing and grinding of rocks in the mining industry.

Indigenous Off-Diesel Initiative ($20 million):
The 15 Community Energy Champions were announced in April 2019 and completed Phase 1: 20/20 Catalysts clean energy training with Indigenous Clean Energy (ICE) in August 2019. Following an all-Indigenous jury review of Phase 2 proposals, microgrants worth $25,000 were issued to each of the 15 Champions to support the transition to Phase 2: community energy planning. Fourteen Phase 2 contribution agreements, worth up to $475,000 each, were signed.

Charging the Future Challenge ($4.5 million):

No audits in 2019-20.

Joint audit and evaluation of Impact Canada Clean Technology Stream, planned for completion in March 2021.

No evaluations in 2019-20.

Joint audit and evaluation of Impact Canada Clean Technology Stream planned for completion in March 2021.

One new challenge was launched in 2019-20. The Charging the Future Challenge engaged with over 40 battery-ecosystem stakeholders from industry, academia, government agencies, and sector associations from across the country to design the Challenge through co-creation. Stakeholder input significantly shaped the final design, expanding the scope to include a broader range of technologies. Five organizations were engaged as Challenge collaborators to enhance ecosystem engagement and amplify NRCan messaging. Two collaborators each hosted webinars leading up to the application deadline (one in French, one in English) to better provide information on the Challenge process and to respond to questions. These engagement activities helped to meet and exceed the range of projected applicants with a total of 39 applications submitted.

The five original challenges have continued increasing their reach and becoming further established in their respective areas. Notably, Women in Cleantech finalists attended multiple high-profile international conferences including the Clean Energy 10 / Mission Innovation 4 Ministerials (Vancouver, May 2019), where they participated in a panel on prize challenges, and the National Renewable Energy Labs’ Industry Growth Forum (Denver, May 2019), where they pitched their projects to investors. The finalists were also featured at Export Development Canada’s Cleantech Export Week (Toronto, November 2019). The Sky’s the Limit’s collaborative partner, the Green Aviation Research and Development Network (GARDN), engaged with stakeholders at the International Civil Aviation Organization (ICAO) Stocktaking Seminar on sustainable aviation fuel (Montreal, April 2019) and other events, including two workshops they hosted (Montreal and Toronto, February 2020) to engage stakeholders on how to strengthen the ecosystem in Canada. Power Forward semi-finalists participated in pitch events (Ottawa and Glasgow, Spring 2019), co-delivered with the UK Department for Business, Energy & Industrial Strategy (BEIS), to present their solutions to a jury of government and industry experts for a chance to be selected as finalists. Power Forward’s collaborative partner, MaRS Discovery District, engaged stakeholders to support the growth of Canada’s smart grid ecosystem, such as profiling semi-finalists at the Energy Roundtable Conference (Toronto, June 2019). Crush It!’s collaborative partner, the Centre for Excellence in Mining Innovation, engaged stakeholders at the Canadian Mineral Processors Conference (Ottawa, January 2020) on accelerating collaborative technology development with its new Mineral Processing Ecosystem Map. The Indigenous Off-Diesel Initiative delivered six webinars for their 15 energy champions along with collaborative partners, Indigenous Clean Energy (ICE) and Pembina, to ensure consistent engagement and learning. A face-to-face session also took place at the ICE Gathering (Ottawa, October 2019), which brought all 15 Champions together. All 15 Champions have successfully moved to Phase 2 of the program. 

Energy Efficiency
Energy Innovation Program

NRCan funded projects across Canada that supported improved energy efficiency. In 2019-2020, these projects included:

• Support to small-scale field studies to test high efficiency heating technologies (cold climate heat pumps and heat pump water heaters) in five regions of Canada, to better learn about the different regional considerations and circumstances, including performance, installation and contractor experience.
  • These studies are essential to enhancing the Department’s understanding of the market barriers facing these technologies and will help with their increased deployment within the Canadian market.
• Financial support to 19 projects with provinces, territories, municipalities, Indigenous communities and stakeholders to benchmark, label and disclose energy use or implement the ISO 50001 energy management system standard in commercial and institutional buildings.
• Working with industry to improve energy efficiency through the ENERGY STAR for Industry Program and through co-funding projects in 19 industrial facilities to implement the ISO 50001 energy management system standard as well as other energy management systems and studies in their facilities.
• Supporting projects that test innovative, multi-sectoral approaches that could significantly increase demand for Housing energy efficiency actions across Canada (new, existing and behavioral). 
• 21 projects that have tested new approaches, provided best practices and lessons learned, demonstrated benefits of working in partnerships, executed interventions and strategies that can be replicated by others, and contribute to energy savings and GHG reductions.

Green Infrastructure Funding under the Investing in Canada Plan

This funding also captures projects that support the Green Infrastructure component of the Investing in Canada Plan.

NRCan is using Green Infrastructure funding to make homes, buildings and industrial facilities more energy efficient. This included work on the development of model codes for new and existing homes and buildings, ENERGY STAR Certification for industrial facilities and commercial and institutional buildings, and support for expanding the implementation of the ISO 50001 energy management standard to commercial and institutional buildings.

In addition, tools have been developed to open access to EnerGuide home energy use data and enable the sharing of EnerGuide home energy ratings. This supports provincial, territorial, municipal and other partners’ residential energy efficiency programming.

NRCan is investing $64.1M in the Green Infrastructure: Energy Efficient Buildings Research, Development, and Demonstration Program to fund projects that will accelerate the development and adoption of net-zero codes and technologies to promote highly energy-efficient building design and construction practices, provide cost-effective building solutions, and validate their applications with real-world demonstrations. Twelve projects were selected for funding under the first two calls for proposals, for a total of $16 M; other calls will follow beginning in Fall 2020. New projects in 2019-20 include:

• $2.1 M to Qikiqtaaluk Properties Inc. for a deep energy retrofit of a 56-unit Nunavut Arctic College student residence, targeting a 50% energy reduction in whole-building energy consumption.
• $2.5 M for the Sundance Housing Cooperative to retrofit 59 townhouses in Edmonton to achieve net-zero energy ready performance levels and develop the infrastructure to make retrofits commercially viable through a repeatable, modular retrofit process.
• $2.4 M to the Canadian Home Builders’ Association to build seven demonstration Multi-Unit Residential Buildings (MURBs) across four provinces, covering all major Canadian climate zones. The project will build capacity through training of builders and energy advisors across the country, in particular for constructing new MURBs using a prefabrication and panelization approach.

No audits in 2019-20.

This program will be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

No evaluations in 2019-20.

Evaluation of Energy Efficiency Program planned for completion in Fall 2020

NRCan participates in a number of initiatives to engage with stakeholders including industry, associations, provinces and territories, as well as research and policy groups.This includes:

• Extensive engagement with industry, associations, provinces and territories, and research and policy groups to help inform the scope of calls for proposals.
• Requests for project proposals were solicited from a broad range of eligible recipients including industry, academia and consortia via open, advertised proposal calls; non-advertised direct requests.
• In addition, the program engaged recipients by hosting workshops and webinars, as well as knowledge and capacity-building activities such as case studies.
• NRCan also continued to advance work on energy efficiency through collaborative work with the Canadian Standards Association and the Consortium for Energy Efficiency.

The Green Infrastructure: Energy Efficient Buildings RD&D program supports the Local Energy Efficiency Partnerships (LEEP) initiative, which aims to foster the construction industry’s capacity and confidence in net-zero-energy ready (NZER) technologies. Industry uses LEEP to communicate their key challenges to local building science experts, officials, manufacturers, etc., working together to trial solutions and support the local and national industry in learning from their experience. Results in 2019-20 included the following:

• 27 LEEP workshops and forums delivered across Canada.
• Almost 1000 home building industry leaders attended LEEP events (equates to approximately $1 million of participant time), providing over 200 hours of content including 70 technical presentations.
• LEEP field trial of British Columbia’s Step Code level 4 and 5 housing, the first such coordinated provincial trial in Canada.
• Development and trial, with positive results, of a cost-benefit tool for NZER housing, a Draft Planning and Decision Guide for Solar PV Systems, and four Guides to Net Zero Energy Ready Wall Systems.

Electricity Resources

No audits in 2019-20.

This program will be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

No evaluations in 2019-20.

Evaluation of Renewable Energy Deployment planned for completion in September 2020.

The application process closed on March 31, 2011. Of the 104 signed agreements, only 48 continue to receive the incentive as of March 31, 2020. The program will sunset on March 31, 2021.

Electricity Resources

This program will advance the decommissioning of legacy uranium mine and mill tailings in the Province of Saskatchewan, to be in accordance with current regulatory standards. The Program will provide financial contributions to the Government of Saskatchewan for it to undertake decommissioning activities at the Gunnar uranium mine site.^{Footnote 2}

This program does not contain any repayable contributions.

No federal funding for eligible expenditures has been provided since 2007. As per the Memorandum of Agreement (MOA), prior to providing federal funds for Phase 2 and 3, Saskatchewan must first obtain a CNSC Uranium Mine Decommissioning License and a Saskatchewan Ministry of Environment Approval to Decommission permit.

No audits in 2019-20.

This program will be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

No evaluations in 2019-20.

No evaluations planned, next evaluation will be identified when five-year spending total averages over $5M per year.

Quarterly meetings between NRCan and Saskatchewan Ministry of the Economy officials to discuss progress on the Project were expected. These meetings have been less frequent due to ongoing litigation.

Clean Growth in Natural Resource Sectors

The Clean Growth Program will provide $155M over four years to support clean technology research and development (R&D), and demonstration projects in Canada’s energy, mining, and forest sectors. The Program is designed to advance emerging clean technologies towards commercial readiness so that natural resource operations can better reduce their environmental impacts on air, land, and water, while enhancing competitiveness and creating jobs.

The Program has conditionally repayable contributions for demonstration projects; R&D activities are non-repayable.

In 2019-20, NRCan continued to work with proponents to finalize contribution agreements. Forty-two agreements have been signed to date, and all of these projects are underway; the remaining projects are undergoing due diligence review and/or contribution agreement negotiations. Five projects valued at over $297 million are being co-funded with NRCan’s Trusted Partners: Emission Reduction Alberta, Alberta Innovates, the Ontario Centre of Excellence and the British Columbia Innovation Council.

Examples of CGP projects announced in 2019-20 include the following:

• Carbonix Inc. received $3.15M to pilot the production of sustainably sourced activated carbons designed to competitively capture contaminants of concern from various industrial effluent streams and mine tailings in the oil sands and hard rock mining industry. This project will help accelerate land restoration and the recycling of wastewater, while reducing water usage.
• Razor Energy Corp. received $5M to convert an active oil and gas operation in Alberta to a geothermal site without interrupting hydrocarbon production. This project will recover waste heat and provide up to 5MWe of power. Additional benefits could include longer life and integrity of pipelines and transportation infrastructure, mitigating operating costs and risks.
• Sylvis Environmental Services Inc. received $3.8M for its BIOSALIX project to use municipal biosolids as a soil amendment to improve mine reclamation outcomes and establish a willow biomass plantation, which can then be used for energy production or as a soil reclamation amendment. The process results in significant sequestration of carbon in both soils and woody biomass, and will accelerate the transition from coal mines to biomass production while providing mining communities with economic stability through the development of a cleantech economy. 

NRCan’s new Science and Technology Assistance for Cleantech (STAC) initiative also provided small to medium sized enterprises funded under the CGP with access to in-kind scientific and technical resources at federal research centres to help them overcome a lack of technical expertise and research infrastructure.

This program was selected as part of the sample for the annual cycle of the Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. In the Continuous Audit covering April to October 2018, it was found that all ten key financial and monitoring controls were in place for the administration of G&C, and that they are generally working as intended.

No evaluations in 2019-20.

Evaluation of Clean Growth Funding Program planned for completion in December 2021.

As planned during the design of the CGP, the program regularly communicated with its proponents through the new Integro funding portal and the CGP mailbox for all program-wide relevant information. Project-specific communication took place between the proponent and project advisor. The Clean Growth Collaboration Community is another one of the Program’s online platforms for public-facing communication with proponents and others interested in the progress of the program. Public announcements and reminders were posted in the community to engage proponents and others in the clean tech community.

Energy Innovation Program

The objective is to support the competitiveness of Canada’s natural resource sectors through a comprehensive suite of research, development, demonstration, and RSA (Related Scientific Activities) projects leading to advances in technology, increased knowledge and collaboration, input into codes, standards and associated policies and regulations, and ultimately improved environmental and economic performance.

The program has conditionally repayable contributions for demonstration projects; R&D and RSA are non-repayable.

NRCan launched Breakthrough Energy Solutions Canada (BESC) in May 2019, a new stream under the Energy Innovation Program (EIP) which provides up to $40 million in funding for companies to accelerate the development and commercialization of clean energy technologies in the electricity, transportation, buildings and manufacturing sectors with the potential to significantly reduce global GHG emissions (0.5GT/year globally for each project). The BESC partnership includes founding BESC member Breakthrough Energy Ventures (BEV) and the Business Development Bank of Canada (BDC), who joined in August 2019. With $20 million funding from NRCan, both partners have each committed up to $10 million in follow-on funding. The successful cohort of 10 companies was selected following a pitch event in January 2020, which included participation from and input into the final selection of winners from BEV, BDC and Export Development Canada. The winners were announced in February at Globe 2020 by Minister O’Regan.

Additionally, NRCan and Alberta Innovates co-led a funding call under the Canadian Emission Reduction Innovation Network (CERIN), with NRCan and Alberta Innovates each providing $6 million in funding. CERIN supports targeted infrastructure investments at existing facilities and sites across Canada, and brings together national expertise into an integrated network. The funding call closed for intake in September; following an in-depth technical and policy review, two projects were successfully selected for funding. The total value of these two projects is over $56 million, with significant GHG reductions expected by 2025.

NRCan also funded 65 external research, development and demonstration projects under EIP in 2019-20 to reduce GHG emissions, while increasing competitiveness, affordability and reliability in Canada’s energy sector. The projects fostered innovations in key areas such as renewable energy; smart grids; energy-efficient buildings; carbon capture, utilization and storage; and the cleaner production of oil and gas. Examples of projects announced in 2019-20 include the following:

• Ameresco Canada Inc. received $4.5M to reduce GHG emissions related to the energy required to heat, cool and provide electricity to John Paul II Secondary School in London, Ontario to near-zero. A carbon-free microgrid energy system will be installed, including an 804kWDC solar photovoltaic rooftop array; a 1.1 MW Power – 2MWh Energy electrical energy storage system; and an integrated building control system that can support large energy loads such as electric vehicle charging stations.
• Tugliq Energy Corp. received $3.9M to continue its work toward achieving a 60-90% diesel displacement at Glencore RAGLAN Mine in Nunavik, Quebec. This project builds on work supported by $7.8M in funding under the ecoEII program, EIP’s predecessor, which demonstrated the viability of wind energy in Canada’s harsh Arctic environment by installing a 3MW wind turbine and an energy storage and management system. The current second phase involves integrating larger-scale variable renewable energy and energy storage while maintaining grid stability under highly cyclical industrial loads, a feat that has never before been achieved at this scale in Canada. 

In addition, projects funded in previous years under EIP are demonstrating results. For example:

No audits in 2019-20.

This program will be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

Evaluation of Energy Innovation Program was completed in July 2019.

Overall, the program was found to be relevant, effective, and efficient. However, there was a need for the federal government to support innovation for cleaner energy in both supply and demand. Four recommendations for improvement were issued.

NRCan regularly communicated with external EIP proponents on project specifics via one-on-one emails. Program-wide updates and requests are sent via the EIP’s mailbox to ensure clear and consistent messaging for all proponents. The Program has also encouraged the use of the Clean Growth Collaboration Community for various federal support updates and news, including the recent COVID-related supports made available by the Government of Canada.

Indigenous Partnerships Office – West

Funding is available to Indigenous groups potentially impacted by the Trans Mountain Expansion Pipeline Project (TMX) and the Line 3 Replacement Program (Line 3) to enhance their capacity to participate in the Indigenous Advisory and Monitoring Committees; to pursue other Committee objectives including those supporting their mandate to provide advice to regulators on environmental, safety, and socio-economic issues related to the performance of the projects and compliance with conditions; and to address other environmental concerns related to the broader pipeline corridor over the full lifecycle of development.

The transfer payment program has non-repayable contributions.

In 2019-20, the Indigenous Advisory and Monitoring Committees (IAMCs) for the Trans Mountain Expansion (TMX) and Line 3 Replacement projects delivered approximately $8.5M in funding through 112 contribution agreements.

The IAMC for TMX provided approximately $7M in contribution funding in 2019-20 to:

• support Indigenous participation on the IAMC;
• provide capacity funding to Indigenous communities in the priority areas of stewardship, protection and meaningful participation;
• support the Indigenous Caucus to provide advice to the Canada Energy Regulator; and,
• deliver the ground-breaking IAMC Indigenous Monitoring Program, that to date has trained 40 Indigenous monitors who have spent 64 days out in-the field participating in 59 regulatory activities.

The IAMC for Line 3 provided approximately $1.6M in contribution funding in 2019-20 to:

• support Indigenous participation on the IAMC;
• establish the IAMC Indigenous Monitoring Program to enable Indigenous monitors to participate in joint inspections of regulatory activities with the Canada Energy Regulator; and,
• engage technical resources to review regulatory filings and report the results to the IAMC and Nations potentially impacted by the project.

In 2018-19 this program was selected as part of the sample for the annual cycle of the Continuous Audit of Grants and Contributions. The audit found that nine of the ten key financial and monitoring controls are in place for the administration of G&C, and that they are generally working as intended.

For the one key control that was assessed as partially effective, the Program has developed a formal approach for proponent monitoring commensurate with risk, to be presented to the DAC in September 2020. This allows the Program to follow generally accepted practices identified in the guidance on recipient auditing, as directed by the Departmental Centre of Expertise on Grants and Contributions.

No evaluations in 2019-20.

Horizontal evaluation (NRCan lead) of Indigenous Advisory and Monitoring Committees, planned for completion in October 2021.

The IAMCs engaged potential applicants through email distribution lists, websites, social media, newsletters, meetings and engagement activities such as regional information sharing sessions for Line 3 and a line wide gathering for TMX.

NRCan engaged recipients to ensure compliance with the requirements of the contribution agreements.

Lower Carbon Transportation

Lower carbon transportation is both an essential component of longer-term decarbonisation of the economy as well as a short-term means for reducing emissions. As outlined in the Pan Canadian Framework for Clean Growth and Climate Change, coordinated and targeted green infrastructure investments to support electrification and fuel switching in the light-and-heavy-duty vehicle sectors correspond to two pillars of the framework to lower emissions from the transportation sector. These investments are required to eliminate barriers that currently impede the adoption of clean transportation choices and to spur the wide-scale deployment of low-carbon vehicles, which will enable further greenhouse gas emission reductions across the transportation sector.

This investment will support:

• The installation of commercially available fast-charging electric vehicle (EV) infrastructure and other alternative fuel infrastructure (e.g. hydrogen and natural gas) along highly travelled routes to address consumer and commercial fleets’ concerns regarding the low availability of recharging/refuelling infrastructure investor concerns regarding the financial risk to investment. This will help to accelerate market deployment of electric and alternative fuel vehicles and fuels; and,  
• The development of codes and standards for low-carbon vehicles and refuelling infrastructure.

As of March 31, 2019, projects were in place for 837 EV fast-chargers, 21 natural gas refueling stations and eight hydrogen refueling stations. Of these, 377 EV fast-chargers, seven natural gas refueling and two hydrogen stations are open to the public. The 2020 Request for Proposals (RFP) successfully closed in June, and proposals are currently under review.

Joint audit and evaluation of the Electric Vehicle and Alternative Fuel Infrastructure Deployment Initiative was completed in September 2019. The Program was found to have appropriate governance structures and processes for oversight, and compliance was being monitored appropriately. Key financial and operational controls had also been designed, implemented, and operating effectively since Program inception. The design and delivery of the Program was found to facilitate the achievement of its intended outcomes and outputs.

However, the joint engagement also found opportunities for improvement in that the Initiative had not formalized how electric vehicle station usage data would be collected, monitored, analyzed, and disseminated. Opportunities also existed to develop a strategy and formalize roles and responsibilities associated with monitoring contribution repayments. Two recommendations were issued.

Joint audit and evaluation of the Electric Vehicle and Alternative Fuel Infrastructure Deployment Initiative was completed in September 2019. Overall, the program was found to be relevant; had demonstrated evidence of efficiency and economy in its operations; had achieved its key intended outcomes for Phase 1; and was progressing similarly for Phase 2.

However, the joint engagement also found opportunities for improvement in that the Initiative had not formalized how electric vehicle station usage data would be collected, monitored, analyzed, and disseminated. Opportunities also existed to develop a strategy and formalize roles and responsibilities associated with monitoring contribution repayments. Two recommendations were issued.

EVAFIDI launched a Request for Proposal in July 2019. As a result there were 36 Contribution Agreements signed covering projects in 9 jurisdictions.

There have been a total of 16 public announcements of funding.

Investments include largest EV networks in Canada such as Circuit Électrique (Hydro Québec) and Suncor.

Energy Innovation Program
Electricity Resources

The Smart Grid Program will invest $100 M over four years (2018-19 to 2021-22) to support the deployment of existing smart grid integrated systems (which may include energy storage) and the demonstration of promising, near-commercial smart grid technologies to reduce greenhouse gas emissions and foster innovation and clean jobs.

The Program will accelerate the transition to a clean growth economy by:

• Better utilizing the existing capacity of electricity assets;
• Increasing the penetration of renewable generation; and,
• Increasing the reliability, resiliency, and flexibility of the power system while maintaining cyber security.

This transfer payment program is repayable as follows:

Demonstration: Repayable, if the demonstration leads to a profit within five years following the end of the project. The requirements for reporting profits will be detailed in the contribution agreement, along with the process for repayment. 

Deployment: Repayable, if the deployment leads to a profit within five (5) years following the project commissioning.  The requirements for reporting profits will be detailed in the contribution agreement, along with the process for repayment.

Expected results for the 2019-20 to 2021-22 period are:

• Ratio of project investments made by stakeholders to deployment project funding from the program leveraged at a minimum of 1:3.
• Ratio of project investments made by stakeholders to demonstration project funding from the program leveraged at a minimum of 1:1.

Longer-term expected result by 2030:
GHG emission reductions of 0.9 megatonnes (Mt) through a clean, smart electricity grid.

Through the four-year, $100 million Green Infrastructure (GI): Smart Grid Program, NRCan is promoting the modernization of grid infrastructure by funding the demonstration of promising, near-commercial smart grid technologies and the deployment of smart grid integrated systems across Canada. In 2019-20, the Program supported 21 projects across Canada. New announcements included: 

• $2.5 million to EQUS REA, Canada’s first member-owned rural smart grid project. The project supports the deployment of a next-generation smart grid interface to allow for the increased penetration of renewable energy, integration of a Battery Energy Storage System (BESS), installation of electric vehicle charging stations and enhanced grid automation and data management that will result in higher system utilization and improved outage response. 
• $5.1 million to Nova Scotia Power to demonstrate and deploy an energy system platform that integrates and manages Distributed Energy Resources and electric vehicle infrastructure, while increasing resiliency. This will be achieved by increasing investment in affordable options for on-site renewable power generation and battery storage, which in turn is expected to reduce the demand for peaking power plants. 
• $5 million to the Independent Electricity System Operator (IESO) of York Region, Ontario to investigate innovative operation and market models founded on smart grids, with a high integration of Distributed Energy Resources (DER) and use of Non-Wires Alternative (NWA) resources as a strategy to defer infrastructure investment.

No audits in 2019-20.

Phase II: Joint audit and evaluation of Green Infrastructure – Electric Vehicles and Alternative Fuels Infrastructure Demonstration Program and Smart Grids Program planned for completion in December 2021. This program will also be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

Phase I: Evaluation of Energy Innovation Program, completed in July 2019.

It was found that the program was relevant and well-managed. However, there was a need for the federal government to support innovation for cleaner energy in both supply and demand. Four recommendations were issued.

Phase II: Joint audit and evaluation of Green Infrastructure – Electric Vehicles and Alternative Fuels Infrastructure Demonstration Program and Smart Grids Program planned for completion in December 2021.

NRCan organized the first Smart Grid Symposium on October 22, 2019, the kick-off of a series over the course of the Program, in conjunction with two electricity associations: Smart Grid Canada and the Canadian Electricity Association. The symposium series is one component of a stakeholder engagement strategy being developed by the Program. The event profiled the 16 announced program recipients and their projects with posters, a program brochure and presentations/panel discussions during the event. The event attracted 117 stakeholders, 30% of which were recipients from the Program or their project partners, and was positively received by participants: in a post-event survey, 95% of 40 respondents rated the event as good to excellent. The panels and presentations yielded a wealth of feedback to the Program and information that will guide the stakeholder engagement strategy going forward.

Electricity Resources

The Program will reduce reliance on diesel in rural and remote communities by deploying and demonstrating renewable energy projects, encouraging energy efficiency and building skills and capacity.

Contribution payments made under this program are repayable.

In 2019-20, NRCan continued to advance the Government’s commitment to reduce reliance on diesel and other fossil fuels for heat and power in Canada’s rural and remote communities by supporting community-led renewable energy projects. The Program completed its second round of applications in 2019-20, selecting 35 new projects. After two rounds of intake, the Program supports a total of 88 renewable energy and capacity building projects.

No audits in 2019-20.

Joint audit and evaluation of Green Infrastructure – Clean Energy for Rural and Remote Communities planned for completion in FY 2022-23.

This program will also be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

No evaluations in 2019-20.

Joint audit and evaluation of Green Infrastructure – Clean Energy for Rural and Remote Communities planned for completion in FY 2022-23.

The Program consulted with recipients and applicants through regular email correspondence, as well as bilateral calls and conference calls. The Program made a number of site visits to communities to check in on project progress and strengthen relations. The Program also engaged with applicants and recipients at conferences and related training events.

Electricity Resources

This program will support the deployment of renewable electricity technologies which have been established successfully abroad or have been demonstrated successfully in Canada but have not yet been deployed commercially. This program will help mitigate the risk of upfront capital investments in emerging renewable power projects.

The Emerging Renewable Power Program funding is conditionally repayable should the project yield a return on investment above and beyond the total project costs less the federal contribution.

Target Results

• Increase in the deployment of Emerging Renewable Power Projects in Canada
• Increase in awareness and understanding of regional energy resources and impacts from emerging renewable energy projects
• Reduce barriers to deployment of emerging renewable power projects in Canada
• Increase in renewable technology supply chains in Canada
• Improved environmental performance through GHG reductions of the Canadian electricity sector

Results to Date

• Four projects announced; total capacity of 52 MW; two geothermal, one tidal, one bi-facial solar
• Four regional environmental assessments/ regional energy resource assessments underway
• Three bi-facial solar projects proceeding without federal funding; the portfolio of commercially-viable renewable energy technologies available in Canada is expanding
• Three provincial/territorial support mechanisms (e.g. power purchase agreements, regulator frameworks) put in place
• Almost 1,000 direct job years created through supported projects
• Over $55 million in supply chain spending to date
• When commissioned, supported projects will replace emitting sources of electricity generation

No audits in 2019-20.

Joint audit and evaluation of Green Infrastructure – Emerging Renewables Program, planned for completion in 2021-2022.

This program will also be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

No evaluations in 2019-20.

Joint audit and evaluation of Green Infrastructure – Emerging Renewables Program planned for completion in 2021-2022.

The Program completed a request for proposals in 2018. There have been no further calls for proposals. Engagement with the recipients is ongoing in terms of project monitoring.

Climate Change Adaptation

The objective of the Program is to position regions and sectors to undertake measures that will enable them to adapt to a changing climate.

This program does not have repayable contributions.

The Department leads Canada in a Changing Climate: Advancing our Knowledge for Action, the National Assessment of how and why Canada’s climate is changing, the impacts of these changes on our communities, environment, and economy; and how we are adapting. Between 2019 and 2022, a series of authoritative, user-friendly, online reports are being released that will inform Canadians and support sound decision making on climate change adaptation. The first report in the series, Canada’s Changing Climate Report, was released in April 2019. Co-led by Environment and Climate Change Canada, this report details how and why Canada’s climate has changed and what changes are projected for the future for Canada’s lands, freshwater and three oceans as a result of changes in temperature, precipitation, snow, ice, and permafrost.

Between April 1, 2019 and March 31, 2020, Canada’s Changing Climate Report on the NRCan website received 68,492 views. In addition, the interactive version of Canada’s Changing Climate Report on changingclimate.ca/CCCR2019 was viewed 211,026 times; this is a second version of the report delivered through a user-friendly, interactive, external website that was requested and supported by our external partners in the assessment process.

Under Canada’s Climate Change Adaptation Platform, a national forum that brings together key groups to collaborate on climate change priorities, the Department delivered two plenary meetings. These meetings allow different jurisdictions and sectors to leverage resources, knowledge, and skills. The broader reach of the membership creates a “network of networks” that helps to share adaptation information with target audiences, enhance engagement at senior levels within members’ organizations, and promote the mainstreaming of adaptation in management practices.

Working groups under the platform have led successful projects over the last year. For example:

• Joint project with the Chartered Professional Accountants of Canada aims to build the capacity of corporations and municipalities to disclose the risks posed by climate change impacts, and to encourage use of climate change information in internal decision-making. Two reports were released: Disclosing the Impacts of Climate Change: A Process for Assessing Materiality and Enhancing Climate- related Disclosure by Cities: A Guide to Adopting the Recommendations of the Task Force on Climate-related Financial Disclosure.
• Climate-resilience Coastal Natural Infrastructure Workshop and Field Trip (May 2019) hosted by Saint Mary’s University and the Cold Regions Living Shorelines Community of Practice (CRLS CoP) – engaged participants (coastal adaptation practitioners, natural and social scientists, students, government officials, and Indigenous groups) in a critical discourse around the feasibility of nature-based adaptation. Presentations and other workshop resources are available through CRLS CoP.

Under the Platform, NRCan also supported the delivery of Canada’s national adaptation conference, Adaptation Canada 2020, which was held in Vancouver, British Columbia in February 2020. The conference brought together experts and leaders from diverse sectors, regions and jurisdictions, providing a broad platform for knowledge exchange and capacity building. The event was oversubscribed even after increasing enrollment to 750 participants, and had over 300 abstracts submitted for consideration. The conference covered a large range of topics related to climate change adaptation such as mental health, planned retreat, equity, and finance.

No audits in 2019-20.

This program will be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

No evaluations in 2019-20.

Evaluation of Climate Change Adaptation is planned for completion in December 2020.

The Adaptation Platform creates an enabling environment for adaptation, where decision-makers in regions and industry are equipped with the tools and information they need to adapt to a changing climate. The Platform supports collaboration with the distribution of newsletters, hosting of webinars and outreach to the public.

Forest Sector Competitiveness
Fibre Solutions

Expanding Market Opportunities (EMO) aims at maintaining and growing international wood product markets, expanding wood use in the non-residential and mid-rise construction market, and promoting the strong environmental credentials of Canadian forest products.

This transfer payment program provides non-repayable contributions.

EMO International – 2019-2020 highlights

The Program delivered the last year of funding under the Softwood Lumber Action Plan, signing contribution agreements with 12 organizations delivering over 100 projects in established and emerging international wood markets that aim to promote, educate, inform or facilitate the use of Canadian wood products or wood construction systems.

The Program continued to partner with industry and provinces to maintain offices and staff to promote the performance and environmental credentials of Canadian wood products, as well as grow opportunities for Canadian wood product producers, in China, Japan, South Korea, Vietnam, India and Europe.

The Program also continued to support organizations working in the areas of codes and standards, technical research and testing as well as technology transfer and training so that individuals and organizations domestically and internationally had the information they needed to understand/evaluate the performance and environmental credentials of Canadian wood products.

Lastly, the program supported the development of market strategies for China, Japan and Korea so that industry has the information they need to realize opportunities in these key markets.

Other highlights include:

EMO funding was pivotal in helping Canada Wood Japan convert the design of the Isseikyu Hospital from reinforced concrete to the largest 2x4 structure ever built in Japan at 15,000m². In addition, the demonstration project uses a Canadian innovation known as the Midply shearwall system to resolve technical design hurdles allowing for large spans and open spaces to be designed in wood. This hospital will serve as a valuable reference tool that wood can be a realistic option in large-scale non-residential construction. Moreover, hospitals have previously not been built in wood hence the Isseikyu demo project potentially opens the door to a significant and untapped market segment for wood in Japan.

University-based training administered by Canada Wood Korea (CWK) with support from EMO provided 77 architecture and design students with information about the merits of wood as an environmentally-friendly building material, and hands-on wood construction experience. With no formal courses on modern wood construction offered in South Korean universities and colleges, CWK’s training program fills a gap in educating the next-generation of practitioners. The curriculum provides architecture and design students with critical knowledge to establish wood construction as an option for their future projects, thereby helping to sustain and expand the use of wood construction in South Korea.

Through the British Columbia Forestry Innovation Investment, the Canadian forest sector has been present in India since 2012 to engage with local industry stakeholders in the promotion of wood products. Supported by EMO funding, in 2019-20, staff worked with 48 Indian manufacturers to conduct product trials in furniture, door, interior millworks and packaging using Canadian wood. They also organized 26 educational events across the country where they introduced Canadian wood products to over 2000 local participants.

EMO Domestic – 2019-2020 highlights

Technical advisors in Canada, funded through the EMO program, influenced the use of wood in 296 non-traditional and mid-rise construction projects between April 1, 2019 and March 31, 2020, resulting in incremental wood sales of $191.1 million in 12.7 million square feet of construction; and, delivered over 44,000 wood education hours to nearly 25,000 practitioners.  These results are an all-time high for project conversions and wood sales.

Nationally, a set of six low-rise commercial design examples were prepared by technical experts to be introduced to both existing practitioners in the market, as well as integrated into post-secondary institutional training. The building designs will be instrumental in demonstrating that wood can be a competitive material option for commercial buildings.

2019-20 saw NRCan support domestically:

• A series of mid-rise focus group sessions across Canada to gather information on increasing uptake of wood solutions where ten key points were identified, including the need for a new technical field guide education resource;
• A new performance management framework adopted by WoodWorks! to improve their ability to report on performance metrics; and,
• A study of the insurance industry as it relates to mass timber projects and begins to address the need to assign specialists to connect, inform and organize; improve access to existing information; and expand data on topics relevant to insurers.

No audits in 2019-20.

This program will be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

Evaluation of Expanding Market Opportunities Program, completed December 2019.

Overall, the Program was found to be relevant, effective, and efficient. However, there were opportunities for improvement regarding geographic and structural barriers to enhanced participation by the forest industry in eastern Canada. Five recommendations were issued.

On November 1, 2019, EMO issued its annual call for proposals (CFP) for fiscal year 20/21 by email and through its website.

EMO launched a new online funding management system (FMS) for the 20/21 CFP. Funding recipients and stakeholders were consulted during the redesign of the FMS and offered a series of training sessions to learn how to use the new system to submit funding proposals and reports.

Each year, program officers provide funding recipients with guidance on projects and related budgets. Engagement increased during the last quarter of the fiscal year as measures to restrict the spread of COVID-19 began to impact the delivery of work plans, and program officers supported recipients to pivot to adopt alternative methods to deliver their programming.

Forest Sector Competitiveness
Fibre Solutions

The Forest Innovation Program (FIP) supports the forest sector’s innovation agenda and priorities needed to continue the transformation of Canada’s forest sector to ensure its competitiveness.

This transfer payment program provides non-repayable contributions.

In FY19-20, the Program invested $20.4M in FPInnovations to support 27 research projects that support the forest sector’s innovation agenda.

In FY19-20, FIP has achieved the following results:

• All FIP-funded projects were reviewed and endorsed through long-standing advisory and approval processes to ensure all forest-based research and development and deployment programs are aligned to address key opportunities and threats facing Canada’s forest sector;
• 27 research projects contributed to the knowledge of the physical and environmental attributes of forest products, including building with wood (e.g. timber bridge construction and wood building sensors to measure performance) and evaluating the potential of large-scale bio-refinery projects in Canada;
• 60 science-based articles were published and 108 technical reports were produced and shared with industry members ensuring increased awareness of forest-based research; and,
• 32 academic and industry collaborations took place including field trials, a pilot project and the development of a research roadmap demonstrating new ways of optimizing forest-related research.

No audits in 2019-20.

This program will be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

Evaluation of the Forest Innovation Program was completed in December 2019. This evaluation covered both the Forest Innovation Program and the Investments in Forest Industry Transformation Program.

Overall, the Program was found to be relevant, effective, and efficient. However, in the Forest Innovation Program, opportunities for improvement existed to enhance communication of the Program’s vision and better align the needs of smaller firms in the Program. Four recommendations were issued.

There is no open call for proposals through FIP. Officials meet with the principal named recipient, FPInnovations, on a regular basis. Any other potential funding recipients are engaged directly by program officials. The Canadian Wood Fibre Centre, which is a component of FIP, receives $1M in Contribution funds from FIP, which it distributes through a competitive process.

Forest Sector Competitiveness

The Investments in Forest Industry Transformation (IFIT) Program was renewed in 2017-2018 with an additional $55 million of funding to support transformations that will make the forest industry more economically viable and environmentally sustainable. The objective will be achieved by investing in innovative technologies that lead to a more diverse, higher-value product mix including bioenergy and renewable power, as well as biomaterials, biochemical and next generation building products.

The Program funds innovative projects that are using transformative technologies at the pilot and commercial scales that direct wood fibre and by-products from wood processing into higher value usages which:

• Increase the total revenues available from a log;
• Diversify product lines for the forest industry, stabilizing economic performance; and,
• Produce renewable energy and other products that are beneficial to the environment.

By providing funding to Canadian forest industry firms for capital investments in bioenergy and bio-product industrial processes to advance these technologies towards full, commercial-scale implementation, this Program will broaden and build upon previous investments in forest sector transformation.

This transfer payment program does not have any repayable contributions.

In FY19-20, the Program invested $16.9M in 13 projects to support the competitiveness of Canada's forest sector.

Examples of IFIT projects announced in 2019-20 include the following:

• Kruger Biomaterials Inc. received $2.125M to upgrade the company’s existing plant in Trois-Rivières, Quebec to operate a first in the world commercial-scale facility manufacturing cellulose filaments. This project is funding the commercialisation a new forest bio-product and process and is helping to diversify the sector with potential applications in the horticultural, construction and aerospace markets as a replacement for chemical-based materials.  
• Uniboard Canada Inc. received $4.9M to recover waste heat released during its operations and use it in its fibre drying system, significantly reducing CO₂ emissions while still increasing the production capacity at its Mont-Laurier facility.
• Resolute Forest Products Canada Inc. received $4.9M to increase the efficiency and quality of the cellulose filament production at its Kénogami facility in Saguenay, Quebec. This project will increase advanced biomaterial production in Canada with applications as a reinforcing agent in polymers and cement.

No audits in 2019-20.

This program will be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

Evaluation of the Forest Innovation Program completed in December 2019. This evaluation covered both the Forest Innovation Program and the Investments in Forest Industry Transformation Program.

Overall, the Program was found to be relevant, effective, and efficient. However, in the case of the Investments in Forest Industry Transformation Program the evaluation found that CFS should play a stronger role in the transition to the bioeconomy. It was also noted that better metrics and methods were needed to measure the effectiveness of the Program. More flexibility and novel approaches were also required to optimize the management of complex projects and the project selection process. Five recommendations were issued.

Pest Risk Management

Phase II of the Spruce Budworm Early Intervention Strategy is a research program investigating a new pest management approach that could avoid an outbreak and the associated socio-economic impacts in Atlantic Canada, where forestry is one of the largest economic sectors.

Phase II includes a suite of integrated research activities and operational insecticide applications to validate the early intervention strategy’s scientific foundation, enhance its efficacy for any emerging outbreaks of spruce budworm, and protect the region’s forests.

Through the Forest Pest Risk Management Program, the initiative will implement and validate a novel forest pest management approach supported by science knowledge and tools to address a forest pest issue that could have significant negative impacts on Canadian forest values and resources. This approach will be available to forest managers across Canada for application to any impeding outbreaks of spruce budworm in order to mitigate risks to forest resources or other related values.

This transfer payment program provides non-repayable contributions.

To provide effective annual treatment of Atlantic Canada’s forest at risk of a spruce budworm outbreak, in 2019-20:

• 100% of eligible forest areas were successfully treated (10,000 ha in New Brunswick)
• Spruce budworm populations remain below outbreak levels throughout Atlantic Canada

To provide access to scientific knowledge, surveillance solutions, and response solutions pertaining to spruce budworm outbreaks and the Early Intervention Strategy, in 2019-20:

• Knowledge was shared with the Healthy Forest Partnership research consortium and general public through the Heathy Forest Partnership webpage, 25 scientific journal articles, 62 stakeholder presentations, and 16 media articles.

No audits in 2019-20.

Joint audit and evaluation of Spruce Budworm Early Intervention Strategy – Phase 2 planned for completion in 2022-23.

This program will also be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of Natural resources Canada’s (NRCan) continuous audit framework, NRCan’s Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

No evaluations in 2019-20.

Joint audit and evaluation of Spruce Budworm Early Intervention Strategy – Phase 2 planned for completion in 2022-23.

Statutory Offshore Payments

The Minister of Natural Resources is responsible under section 214 of the Canada-Newfoundland and Labrador Atlantic Accord Implementation Act to make payments to the province of Newfoundland and Labrador equivalent to the revenue amounts received by Canada in relation to offshore oil and gas activities in the Canada-Newfoundland and Labrador offshore area. The federal Newfoundland Offshore Petroleum Resource Revenue Fund Regulations prescribe the time and manner for making the transfer payments. The funds are drawn from the Consolidated Revenue Fund.

This transfer payment program does not have any repayable contributions.

100% of the payments to Newfoundland and Labrador were processed on time and in accordance with the applicable regulations.

The amount of money transferred to Newfoundland and Labrador is subject to change based on factors such as offshore oil production levels, crude oil prices, project costs, currency exchange rates, and the timing of oil sales.

Payments to the Fund were included in the scope of the annual cycle of the Continuous Audit of Offshore Revenues and Transfers, completed in June 2019. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The Continuous Audit covering October 2017 to October 2018 found that 18 of 22 key financial and monitoring controls examined were effective, while four controls were partially effective.

Next cycle of Continuous Audit of Offshore Revenues and Transfers is planned for completion in September 2020.

Audit of Implementation of the Offshore Petroleum Accord Acts planned for completion in 2021-2022.

Not applicable - Statutory payments are excluded from evaluation.

Statutory Offshore Payments

NRCan pays 50% of the operating costs of the Canada-Newfoundland and Labrador Offshore Petroleum Board. The province pays the other 50%. This is done pursuant to section 27 of the Canada-Newfoundland and Labrador Atlantic Accord Implementation Act. The funds are drawn from the Consolidated Revenue Fund. Cost recovery regulations put in place in 2016 allow the Board to cost recover up to 100% of eligible costs from industry, which are remitted to the Government of Canada and the province of Newfoundland and Labrador on a 50/50 basis.

This transfer payment program does not have any repayable contributions.

NRCan’s share of the Offshore Board operating budgets is made in four quarterly payments throughout the course of each fiscal year.

No audits in 2019-20.

Audit of Implementation of the Offshore Petroleum Accord Acts planned for completion in 2021-2022.

Not applicable - Statutory payments are excluded from evaluation.

Energy Innovation Program

The Electric Vehicle Infrastructure Demonstration component supports the demonstration of next-generation and innovative electric vehicle charging infrastructure in Canada.

The program will undertake Front End Engineering Design studies and demonstrations to reduce the costs, understand the impacts and address potential barriers for the deployment of charging infrastructure for electric vehicles.

Projects funded under this program are conditionally repayable.

The third request for proposals (RFP) under Phase 2 of the Green Infrastructure: Electric Vehicle Infrastructure Demonstration (EVID) program closed on October 18, 2019, and resulted in the submission of 44 demonstration project proposals. Five projects were selected to move forward to due diligence, with a significant standby list. Another 16 projects that were selected under the two previous Phase 2 RFPs had begun as of March 31, 2020.

Under Phases 1 and 2 of the Electric Vehicle Infrastructure Demonstration (EVID) program, 26 demonstration projects have been supported to date. The projects are addressing technological gaps and barriers to the introduction of electric vehicles (EVs), such as: developing charging options for multi-residential units, people without dedicated parking, and public transit; addressing grid integration issues; and improving the functionality of network management systems for EV infrastructure. Projects are demonstrating, for example: bi-directional charging (vehicle to grid); improving interoperability and grid integration of charging technologies; charging solutions for autonomous vehicles; repurposing of e-bus batteries for charging; and airport e-bus fleet charging and energy management.

Examples of projects include the following:

• $3.5 million to the City of Brampton and $1 million to Newmarket Tay Power announced in 2019-20 for the Pan-Canadian Electric Bus Demonstration and Integration Trial, building on a previous announcement of $1.2 million to British Columbia’s TransLink. Together, these projects will help pave the way for widespread adoption of electric buses and other low-carbon buses among Canada’s public transit systems by addressing key technical challenges, in particular: demonstrating interoperability of different electric bus models and overhead chargers; providing real-world data to utilities and transit agencies; and informing domestic and international codes, standards and regulations.
• $212,000 to the Government of Yukon announced in 2019-20 to demonstrate the all-season performance of public charging stations in order to accelerate EV ownership. Three fast chargers were installed in the Yukon and monitored as they operated at temperatures as low as -40oC. Users and the charger network company reported no problems with the chargers, and the Government of Yukon has consequently decided to pursue further deployments, beginning with the purchase of an additional five chargers (beyond the scope of this project).

No audits in 2019-20.

Phase II: Joint audit and evaluation of Green Infrastructure – Electric Vehicles and Alternative Fuels Infrastructure Demonstration Program and Smart Grids Program planned for completion in December 2021.

This program will also be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

Phase I: Evaluation of Energy Innovation Program, completed in July 2019. It was found that the program was relevant and well-managed. Four recommendations were issued.

Phase II: Joint audit and evaluation of Green Infrastructure – Electric Vehicles and Alternative Fuels Infrastructure Demonstration Program and Smart Grids Program planned for completion in December 2021.

Youth Employment Strategy

Since 1997, NRCan has contributed to the Youth Employment and Skills Strategy through the Science and Technology Internship Program. This program supports youth between the ages of 15-30 in gaining work experience in science, technology, engineering and math fields in the natural resource sectors. The Program supports the Minister’s mandate to support innovation, job creation and clean technology in the natural resources sectors. The Program also promotes diversity in the natural resources labour market by targeting participation by individuals in the designated employment equity groups (women, Indigenous Peoples, visible minorities, and persons with disabilities).

Through NRCan’s A-base funding, approximately 50 youth internships are created per year. In Budget 2017, NRCan received incremental funds of $16.4M over 2 years ($7.5M in 2017-18 and $8.9M in 2018-19) over 2 years ($7.5M in 2017-18 and $8.9M in 2018-19) to create an additional 1100 Green Jobs internships.

• In 2019-20, the Youth Employment and Skills Strategy (YESS) / Science and Technology Internship Program (STIP) created 503 internships and training opportunities to youth between the ages of 15-30 in the natural resources sectors with a focus on STEM through the receipt of $8,799,949 of incremental funding, in addition to the A-Base of $600,000.
• Internships and training opportunities took place in all provinces and territories (except for Nunavut).
• 85.5% of the YESS STIP internships were related to Clean Technology.
• 53% of YESS STIP Hiring organizations were Small and Medium-sized Enterprises.
• Based on engagement with Indigenous youth, in 2019-20, YESS STIP adjusted the program by removing the post-secondary requirement, including training as an eligible expenditure and increasing the maximum wage to better serving Indigenous and northern youth. As a result, YESS STIP has seen a doubling of participation by Indigenous and northern youth from 6% to 12% in 2019-20.
• YESS STIP had over 50% participation by employment equity groups, including women in STEM (science, technology, engineering and mathematics), Visible Minorities, Indigenous youth and youth with disabilities.

No audit was completed in 2019-20, however, this program will be considered for potential selection in the samples for future Continuous Audits of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on selected processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

Horizontal evaluation of the Youth Employment Strategy (called the Youth Employment and Skills Strategy since 2019) – Career Focus, led by Employment and Social Development Canada, was completed in January 2020. The Report accounts for the fiscal years of 2013-14 to 2017-18 inclusive.

The evaluation found that immediately after the completion of their respective interventions, a larger share of participants were still employed as opposed to having returned to school. There were no recommendations.

Delivery Organization (Initial Recipients)

• Call for proposals
• Monthly check-ins with delivery organization to assess progress.

Hiring Organizations (Ultimate Recipients)

• Targeted e-mails to past Hiring Organizations
• Updated website
• In-person meetings in Yellowknife, NWT & Whitehorse, YK to monitor and promote program delivery
• Outreach to employers at GLOBE 2020

Youth

• Engaged with youth at GLOBE 2020 during two sessions on inclusive workplace. Created opportunity for youth to interact with employers to present ideas to build an inclusive workplace for all youth and to increase retention, in particular for Indigenous, northern, and racialized youth.
• Post-internship survey completed by each intern to gauge the skills acquisition and intern experiences during the training and internship.

Statutory Offshore Payments

The Minister of Natural Resources is responsible under section 219 of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act to make payments to the province of Nova Scotia equivalent to the revenue amounts received by Canada in relation to offshore oil and gas activities in the Canada-Nova Scotia offshore area. The federal Nova Scotia Offshore Revenue Account Regulations prescribe the time and manner for making the transfer payments. The funds are drawn from the Consolidated Revenue Fund.

This transfer payment program does not have any repayable contributions.

100% of the payments to Nova Scotia were processed on time and in accordance with the applicable regulations.

The amount of money transferred to Nova Scotia is subject to change based on factors such as offshore oil production levels, crude oil prices, project costs, currency exchange rates, and the timing of oil sales.

Payments to the Fund were included in the scope of the annual cycle of the Continuous Audit of Offshore Revenues and Transfers, completed in June 2019. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The Continuous Audit covering October 2017 to October 2018 found that 18 of 22 key financial and monitoring controls examined were effective, while four controls were partially effective.

Next cycle of Continuous Audit of Offshore Revenues and Transfers planned for completion in September 2020.

Audit of Implementation of the Offshore Petroleum Accord Acts planned for completion in 2021-2022.

Not applicable - Statutory payments are excluded from evaluation.

NRCan consults with the Government of Nova Scotia when preparing its annual forecast of offshore revenues and transfers.

Statutory Offshore Payments

The Minister of Natural Resources makes the Crown Share Adjustment Payments to the Province of Nova Scotia from the Consolidated Revenue Fund under sections 246 to 249 of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act (the Act).

In effect, the Act requires NRCan to pay Nova Scotia the equivalent financial benefit to what Nova Scotia would have received had the federal government taken an interest in offshore projects and had Nova Scotia been able to exercise its Crown Share right under the 1982 Agreement.

100% of the Crown Share Adjustment Payments in fiscal year 2019-2020 were processed on time and in accordance with the applicable regulations.

Payments were included in the scope of the annual cycle of the Continuous Audit of Offshore Revenues and Transfers, completed in June 2019. As part of NRCan’s Continuous audit framework, the Audit and Evaluation Branch conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The Continuous Audit covering October 2017 to October 2018 found that 18 of 22 key financial and monitoring controls examined were effective, while four controls were partially effective.

Next cycle of Continuous Audit of Offshore Revenues and Transfers planned for completion in September 2020.

Audit of Implementation of the Offshore Petroleum Accord Acts planned for completion in 2021-2022.

Not applicable - Statutory payments are excluded from evaluation.

NRCan consults with the Government of Nova Scotia when preparing its annual forecast of the Crown Share Adjustment Payment and when preparing the calculation for the payment.

Major Projects Management Office Initiative

The objective of this program is to support active and meaningful Indigenous involvement in issues related to the Trans Mountain Expansion (TMX) project to address potential project-related impacts, cumulative effects and economic opportunities.

Following the Government’s decision to approve the TMX project on June 18, 2019, NRCan coordinated a whole-of-government approach through an interdepartmental TMX Deputy Ministers Oversight Committee to continue engagement activities with potentially impacted Indigenous groups. Strategies employed by the interdepartmental oversight committee saw emphasis on building community capacity, providing a single-window for engagement through the establishment of a Phase IV Partnerships Office, and addressing impacts on Indigenous rights and interest through coordinated delivery of a multi-departmental suite of accommodation measures, including those offered through NRCan’s Program Delivery Office.

Through the Terrestrial Cumulative Effects Initiative (TCEI), NRCan is collaborating with Indigenous peoples to co‑develop a 5-year (2019-20 – 2024-25) cumulative effects initiative, and provide funding for community capacity and Indigenous-led studies that will provide $24.5M.

NRCan is also supporting Indigenous-led studies to better understand potential terrestrial impacts of major natural resource projects through the Terrestrial Studies Initiative (TSI) with a total of $8.5M over three years (2019-20 – 2021-2022).

This Transfer Payment Program does not include any repayable contributions.

During 2019-20, NRCan entered into 63 contribution agreements with Indigenous groups potentially impacted by the TMX project, including:

• TSI (37);
• TCEI (18); and,
• Phase IV engagement activities (8).

Indigenous groups accessed 91% funds committed through contribution agreements supporting TSI and TCEI accommodation measures.

In 2019-20 this program was selected as part of the sample for the annual cycle of the Continuous Audit of Grants and Contributions. Key financial and monitoring controls were found to be in place for the administration of grants and contributions, and the Continuous Audit did not identify any deficiencies.

This program will be considered for potential selection in the samples for future Continuous Audits of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on selected processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

No evaluations in 2019-20.

Horizontal evaluation of Terrestrial Cumulative Effects Initiative, led by Environment and Climate Change Canada, planned for completion in 2023-24.

NRCan re-initiated, and completed, consultations with Indigenous groups potentially impacted by the TMX project in June 2020, and shared the Crown Consultation and Accommodation Report with Indigenous groups and the public.

Engagement of Indigenous groups to facilitate co-development and collaborative implementation of accommodation measures was another focal point of NRCan efforts following the Government’s decision to approve the TMX project in June 2019. Six introductory workshops for Indigenous groups were held by the Phase IV Partnerships Office in Alberta and B.C. in the Fall of 2019. A second series of workshops planned for the Spring of 2020 were postponed in response to COVID-19. Bilateral engagement, both in-person and virtually, was a further mainstay of NRCan activities. At the conclusion of the assessment period 77% of Indigenous groups on the Crown Consultation list were engaged on at least one accommodation measure, including TSI and TCEI.

Indigenous Partnerships Office – West (IPO-West)

The objective of this program was to deliver $6 million over one year to support Indigenous economic participation in energy infrastructure (oil and gas) in B.C. and Alberta.

This transfer payment program does not include any repayable contributions.

The Program committed $6.2 million in 2019-20 through 35 projects with Indigenous groups in B.C. and Alberta. The CAs supported activities that:

• Enhanced the capacity of Indigenous communities to capitalize on short and medium term business opportunities;
• Facilitated access of Indigenous groups to energy development information, tools and resources; and/or,
• Supported community and regional engagement on energy development.

Not applicable

Not applicable – An evaluation of this one-year TPP is not required under the Financial Administration Act.