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Response to Parliamentary Committees and external audits

House Committee on Natural Resources’ Report 11 – Insect Management in Canada’s Forest Sector: Strengthening National Cooperation Against Current and Future Outbreaks

Summary: The Committee’s report provides an overview of the challenges that forest insects, both native and introduced from foreign sources, can pose to Canada’s economy, environment and communities.

Report Recommendations – Insect Management in Canada’s Forest Sector: Strengthening National Cooperation Against Current and Future Outbreaks

Departmental ResponseReport Recommendations – Insect Management in Canada’s Forest Sector: Strengthening National Cooperation Against Current and Future Outbreaks (PDF, 460 KB)

House Committee on Natural Resources’ Report 11 – Insect Management in Canada’s Forest Sector: Strengthening National Cooperation Against Current and Future Outbreaks
Report Recommendations Departmental Response
1. The House of Commons Standing Committee on Natural Resources (the committee) recommends that the Government of Canada work with industry, civil society, research institutions, Indigenous governments and communities, and provincial, territorial, municipal and/or international governments to strengthen Canadian capacity to prevent, mitigate and/or adapt to regional pests by:
  1. Continuing to enhance border protection against foreign invasive species and to promote preventative and/or proactive outbreak management practices, such as the Early Intervention Strategy to combat the spruce budworm in Atlantic Canada;
  2. Expanding federal research on invasive species, including the mountain pine beetle, especially with regards to their impacts in new host environments and other factors related to ecological and/or climate change;
  3. Providing long-term financial and/or policy support, where necessary, according to the stated needs of regional governments and forest managers, including municipalities and Indigenous governments and communities;
  4. Coordinating a central reporting and information-sharing system to allow forest managers access to the same outbreak management data nationwide;
  5. Offering educational and training opportunities to forest managers, as needed, in communities and jurisdictions with inadequate outbreak management capacity;
  6. Investing in research and expertise to bring forward Indigenous knowledge of forest land and resource management;
  7. Strengthening citizen awareness and engagement through public outreach campaigns that aim to promote and normalize risk-reduction practices;
  8. Encouraging the adaptation of regional harvesting and reforestation policies, according to new ecological realities and science-based evidence on climate change, to ensure the diversity and sustainability of both urban and rural forests; and
  9. Including specific research and support for municipalities to deal with invasive insects and diseases, recognizing the social, environmental and economic value of urban forests.

Actions taken:

The Government of Canada is committed to ensuring that our forests contribute to the well-being of all Canadians. The Government is taking action to establish policies and programs at home and abroad to help deliver more proactive, integrated and collaborative responses to our biggest socio-economic and environmental issues related to forest pests, both within and across our borders.

Canada’s existing domestic and international plant health programs help protect our borders and forest resources from foreign forest insects. This includes regulation of imports, risk-based surveillance and inspection activities. It also includes extensive leadership to develop international plant health standards and advance supporting scientific research and analysis.

The Government’s ongoing science and technology contribution enhances prevention and preventative approaches to forest insect outbreaks and invasions. The Government invests $20 million annually in broad-scale, long-term, research providing the forest sector with science solutions addressing risk management needs at key response stages of insect infestations. A large portion of this research program addresses foreign invasive species, whose primary entry points are generally urban environments. Examples of targeted investments include $74.75 million to prevent the spread of spruce budworm in Atlantic Canada (2018) and $87.2 million to upgrade scientific infrastructure, including federal labs conducting research that informs our responses to destructive forest pests (2016). 

The Government has made ongoing efforts to mobilize and maximize research capacity over the long term through the co-development of a national research agenda for forest pest risk management. The agenda recognizes the need to build on the diverse capacity of the country’s research system, including Indigenous ecological knowledge, to support, protect and improve Canada’s plant resources, as well as to engage with and address the needs of a broad range of collaborators, including municipalities and Indigenous communities.

Since 2000, the Government maintains the National Forest Information System to provide a central, credible, accurate, and reliable national information on forest insect conditions and control.

The Government engages proactively in knowledge and technology transfer with forest managers across Canada. An example is the annual Forest Pest Management Forum.

The Government also conducts proactive communication and outreach to grow public awareness about forest health in general and engagement in actions to reduce the risk of spreading invasive foreign insect species in human activities.

The Government invested $200 million under the Low Carbon Economy Fund, supporting provincial and territorial efforts for managing their forests in a manner that helps reduce net greenhouse gas emissions. The Government also makes annual investments of $10 million in ongoing research on impacts of climate change on Canada’s forests and adaption to changing forest conditions, including patterns of forest insect outbreaks.

2. The committee recommends that the Government of Canada convene a meeting with provincial, territorial and Indigenous governments, as well as the Federation of Canadian Municipalities to develop a co-ordinated national strategy to deal with invasive insects and diseases, including their impact on the urban forest. In 2017, Canada adopted a Plant and Animal Health Strategy to address plant pest risks, including forest pests in urban and rural forests, in a coordinated, partnership-based approach. Extensive consultation and engagement with organizations from the public and private sectors helped jointly set the strategic direction for a more agile, forward looking, and better-coordinated system to address present-day and future plant and animal health challenges, including forest pest issues. The Canadian Plant Health Council was established in 2018 to mobilize stakeholders and coordinate implementation of the plant health priorities under the Strategy.

House Committee on Natural Resources’ Report 10 – Rethinking Canada’s Energy Information System: Collaborative Models in a Data-Driven Economy

Summary: The report examines the state of national energy data, including the benefits and limitations for various users in Canada and abroad, as well as opportunities and best practices for future data development.

Report Recommendations – Rethinking Canada’s Energy Information System: Collaborative Models in a Data-Driven Economy

Departmental Response – Rethinking Canada’s Energy Information System: Collaborative Models in a Data-Driven Economy (PDF, 4.95 MB)

House Committee on Natural Resources’ Report 10 – Rethinking Canada’s Energy Information System: Collaborative Models in a Data-Driven Economy
Report Recommendations Departmental Response

1. The committee recommends that the Government of Canada designate a “one-stop shop” for detailed regional and national energy information that is accurate, timely, transparent, comprehensive, user-friendly, internally-consistent, free of charge, responsive to the needs of different sectors, and independent of political influence. To this end, the committee recommends that the government work with industry, civil society, research institutions, Indigenous governments and communities, and provincial/territorial governments to:

  1. assess the feasibility of housing the proposed information provider within an existing federal organization versus creating an entirely new Canadian energy information agency;
  2. ensure that the proposed energy information provider is politically independent and has sufficient legislative power to collect, validate, analyse and distribute energy data under competitive timelines;
  3. establish sufficient safeguards to protect the sensitivity and/or confidentiality of energy data reported by the public, private companies and other organizations; and
  4. incorporate best practices from international counterparts, where appropriate.

Budget 2019 provided NRCan with $15.2M over five years (+$3.4M/year ongoing) to establish the Canadian Centre for Energy Information, to be delivered by Statistics Canada. The Centre will integrate data from various providers, providing one-stop access to comprehensive energy data, building on the federal Canadian Energy Information Portal launched in June 2019. It will also work with stakeholders to identify and address gaps in energy data and to standardize energy definitions and measurements. These activities will be informed by multi-stakeholder engagement.

The virtual Centre will be housed at Statistics Canada, and will leverage the agency’s independence and ability to integrate energy information with socioeconomic statistics. Statistics Canada has the existing capacity and legislative authority to collect and distribute data while safeguarding sensitive and confidential information. Its ongoing connections to the international statistics community will ensure that the Centre incorporates best practices.

2. The committee recommends that the Government of Canada work with industry, research institutions, Indigenous governments and communities, and provincial/territorial governments to identify gaps in Canadian energy information, and to mitigate these gaps by providing financial, legal and/or administrative support to relevant data collectors, as needed.

Key activities of the Centre include working with stakeholders to make energy information more complete, coherent, relevant and timely by addressing gaps in energy data (e.g., through improved surveys, reliance on untapped administrative data, or compilation of existing provincial/territorial/municipal data). This will build on recent work within existing resources to address data gaps related to renewable energy, biofuels, refined petroleum products, and diversity in the energy sector labour force, including the participation of women and Indigenous Peoples.

Input on energy priorities to inform the Centre’s activities (e.g., which data gaps to address) will be sought through an inclusive governance and engagement with stakeholders, including provinces and territories, municipal governments, Indigenous Peoples, academics and energy modellers, non-government organizations, industry and others. As a first step, the federal, provincial and territorial governments released a document, the “Collaboration on Energy Information – A Pan-Canadian Approach” (PDF, 2.29 MB) in July 2019.

3. The committee recommends that the federal government work with industry, civil society, research institutions, Indigenous governments and communities, and provincial/territorial governments to standardize energy definitions, measurements and reporting standards across Canadian jurisdictions and reporting organizations, and to ensure that these standards are consistent with international norms and best practices. The Centre has a mandate to work with data providers to increase the consistency and coherence of energy data by standardizing energy definitions, measurements and reporting. Common data standards will be based on international best practices and those currently being used by leading Canadian energy data providers (e.g., Statistics Canada, the Canadian Energy Regulator, and provinces and territories).

House Committee on Natural Resources’ Report 9 – Value-Added Products in Canada’s Forest Sector: Cultivating Innovation for a Competitive Bioeconomy

Summary: The report examines how Canada’s value-added manufacturing in the forest industry can contribute to economic and employment growth in Canada.

Report Recommendations – Value-Added Products in Canada’s Forest Sector: Cultivating Innovation for a Competitive Bioeconomy

Departmental Response – Value-Added Products in Canada’s Forest Sector: Cultivating Innovation for a Competitive Beconomioy (PDF, 158 KB)

House Committee on Natural Resources’ Report 9 – Value-Added Products in Canada’s Forest Sector: Cultivating Innovation for a Competitive Bioeconomy
Report Recommendations Departmental Response

1. That the Government of Canada work with industry, research institutions, Indigenous governments and communities, and provincial/territorial governments to sustain and improve Canada’s forest management policies and practices, by:

  1. continuing to study, address and adapt to short- and long-term climate change impacts, including forest fires, pest infestation and variations in forest temperatures and biodiversity;
  2. maintaining sustainable forest management policies and practices, according to the most recent scientific evidence; and
  3. supporting innovation in forest operations, including harvesting practices that maximize the utilization of unused, underused and/or at-risk forest resources, within the allowable harvesting limits.

In 2016, the Government of Canada led national‐level conversations with over 140 experts from 80 different organizations, including academia, provincial and federal government agencies, research institutions and non-governmental organizations to better define its role as a forest science provider. Following these conversations, the Government restructured the science portfolio of the Canadian Forest Service (CFS) of Natural Resources Canada around climate change mitigation and adaptation, wildfire, forest pests, sustainable forest management, cumulative effects of natural resources development in forests, and fibre solutions to develop the bioeconomy.

Some of the key initiatives carried out under this restructured science portfolio include the ongoing Forest Change program, through which the CFS provides information for decision‐makers on the impacts of climate change on Canada’s forests and how to adapt. Further, through Budget 2018, the Government of Canada committed to providing up to $74 million over the following four years, to prevent the spread of spruce budworm. Finally, through a close partnership with Canadian Interagency Forest Fire Centre (CIFFC), the Government of Canada through the CFS provides strategic and policy advice on national fire management issues to minimize social and economic impacts from wildfire, under the Canadian Wildfire Strategy.

The CFS champion’s cutting‐edge science on forest carbon‐budget modeling that has reshaped national perceptions on the importance of forests, and our management of them, in addressing climate change.
To maintain sustainable forest management policies, and practices, the Government of Canada will continue to share its science with provinces and territories, who are responsible to implement sustainable forest management on Crown lands, as well as Indigenous governments,

The Government of Canada, through the Canadian Wood Fibre Centre (CWFC), works in close collaboration with provinces and territories, universities and other research centres, professional associations, Indigenous and rural communities to develop and deploy the most recent scientific research and emerging innovations that help sustain an innovative and prosperous forest‐based bioeconomy.

The Government of Canada, through Environment and Climate Change Canada’s Low Carbon Economy Leadership Fund, is also supporting provincial and territorial efforts to manage their forests, including harvesting practices, to contribute to greenhouse gas emission reduction targets, in line with commitments under the Pan‐Canadian Framework on Clean Growth and Climate Change.

2. That the federal government work with Indigenous governments and communities, as well as industry, research institutions and provincial/territorial governments, to develop policies and programs that encourage more investment in value-added manufacturing, including targeted and culturally appropriate support for Indigenous businesses that harvest value-added products and standing forests.

The Government of Canada, through its Indigenous Forestry Initiative (IFI), collaborates with Indigenous communities to support tangible forest‐based economic development across Canada.

Under the Investments in Forest Industry Transformation program (IFIT), the Government supports Canada’s forest sector in becoming more economically competitive and environmentally sustainable. By “de‐risking” new technologies and encouraging broader adoption of these technologies across the industry, IFIT supports forest industry transformation through a more diversified portfolio of value‐added products and markets. The Government also supports policies and programs to encourage investment in wood‐based construction, including mid‐rise and tall buildings through the Green Construction through Wood (GCWood) program as well as numerous industry and research partnerships.

The Government of Canada is also building on the engagement undertaken to develop the Canadian Council of Forest Ministers (CCFM) Forest Bioeconomy Framework for Canada. At the time, the Government engaged with over 350 stakeholders from Indigenous governments and communities, as well as industry, research institutions and provincial/territorial governments. Through the CCFM Innovation Committee, the Government continues to partner with provinces and territories in delivering activities under this framework.

3. That the federal government work with industry, research institutions, Indigenous governments and communities, and provincial/territorial governments to improve the economic competitiveness and innovative capacity of value-added manufacturing in the Canadian forest sector, by:

  1. supporting regional forestry clusters that integrate primary, secondary and tertiary value-added supply chains; 
  2. investing in talent and skills development programs, especially in rural areas, including targeted and/or culturally appropriate programs for women, Indigenous peoples and minorities;
  3. providing financial incentives to support the development of transformative forest product innovations and low-carbon products and technologies with high economic potential, especially through the commercialization gap;
  4. developing performance-based standards and favouring policies that prioritize public safety, cost competitiveness and greenhouse gas emission reduction, according to the most recent scientific evidence and industry market research; and
  5. supporting workforce development initiatives, including industry skills development and industry-specific regional immigration programs and policies to allow for long-term regional sustainability.

Through the Forest Innovation Program (FIP), the Government supports pre‐commercial research and development of new technologies and products, such as those related to bioenergy, nanotechnology and next-generation forest products. The FIP is the federal contribution arm to FPInnovations, Canada’s world leading forest innovation research organization co‐funded by the Government of Canada, industry and the provinces.

These technologies developed under FIP are commercialized under the Investments in Forest Industry Transformation program (IFIT). The IFIT program offers non‐repayable contributions to successful applicants in the Canadian forest industry to implement innovative, first‐in‐kind technologies in their facilities.

The Government of Canada, through its CWFC supports a strong national forest sector built on regional specificities and needs, and is located across CFS’s regional centres. Together, the CWFC and regional stakeholders ensure that the entire forest-based supply chain and manufacturing sector has the fibre‐based building blocks required for an innovative, prosperous and sustainable Canadian forest sector.

The forest sector transformation in Canada has not been limited to making changes in technology, products and markets. These changes are also improving Indigenous peoples’ access to forest resources and increasing their control over decisions about how forests are used, harvested and managed. The IFI supports the development of a skilled Indigenous workforce through support for forest based economic development projects.

Wood-based construction can sequester carbon and help to meet Canada’s climate change targets. The Government of Canada continues to support codes and standards work to institutionalize engineered wood construction through the Green Construction through Wood (GCWood) program and numerous industry and research partnerships in Canada. Budget 2017 provided funding of $39.8 million over 4 years under the Pan Canadian Framework on Clean Growth and Climate Change, starting in April 2018, to increase the use of mass timber as a greener construction material in buildings and public infrastructure projects.

Over the last 15 years, NRCan funded extensive R&D activities in support of codes and standards to facilitate expanding the use of wood in the domestic and international construction markets. The codes and standards activities and its associated R&D work have been led by key Canadian research organizations such as the National Research Council (NRC), Canadian universities, industry associations and by FPInnovations.

4. That the Government of Canada work with industry, Indigenous governments and communities, and provincial/territorial governments to support biofuel projects in diesel-dependent, off-grid communities, including targeted and culturally appropriate support for Indigenous peoples. 

To reduce reliance on diesel in rural and remote communities, the Government of Canada is supporting the use of clean energy solutions through various initiatives. The Northern Responsible Energy Approach for Community Heat and Electricity (Northern REACHE) program, funds renewable energy and energy efficiency projects in Canada’s three northern territories. Budget 2017 provided $53.5 million over ten years, starting in 2018‐19, to implement renewable energy projects in off‐grid Indigenous and northern communities that rely on diesel and other fossil fuels to generate heat and power. This funding complements the $400 million Arctic Energy Fund administered by Infrastructure Canada, which is specific to the territories to help improve energy security in the North by replacing or upgrading aging fossil fuel energy infrastructure. 

The Clean Energy for Rural and Remote Communities (CERRC) program, launched in February 2018, with approximately $220 million in funding for initiatives to reduce reliance on diesel in rural and remote communities, the majority of which are Indigenous.

The CERRC program supports projects to demonstrate and deploy renewable energy technologies, implement energy efficiency solutions and, build community skills and capacity.

5. That the federal government continue to facilitate the market access of Canadian forest products in domestic and international markets:

  1. through market-access policies, such as the Expanding Market Opportunities and Green Construction through Wood programs (or similar programs);
  2. through government procurement policies, such as Bill C-354, An Act to amend the Department of Public Works and Government Services Act (use of wood) – at the date of tabling of this report, the last stage completed by Bill C-354 was Concurrence at Report Stage in the House of Commons;
  3. by supporting the research and development of value-added product applications (i.e., “market pull” strategies), in collaboration with industry, Indigenous governments and communities, and/or provincial/territorial governments; and
  4. by continuing to promote Canadian forestry products, technologies and practices in international trade missions.

The Government seeks to build on its track-record of successfully developing new markets in new places to help the forest sector adapt to an increasingly globalized marketplace while capitalizing on emerging products opportunities, including bioproducts.  These efforts include:

  1. Through its Expanding Market Opportunities (EMO) program, the Government of Canada provides co‐funding to industry associations for market development initiatives and supports in‐market industry representation through a network of offshore offices.
  2. Developing new end‐uses for forest products in the non‐residential and mid‐rise construction markets of North America by driving building code acceptance of taller wood buildings and interventions in the regulation of new construction products.
  3. Opening up new markets for innovative forest bioproducts, including providing market development and advocacy support and providing business development support in conjunction with other programs (e.g., Industrial Research Assistance Program, Export Development Canada, and Regional Development Agencies).
  4. Leverage NRCan science to ensure market access by growing public and consumer confidence in the sector’s environmental reputation (including removing non‐tariff trade barriers). This will continue to demonstrate Canadian leadership and expertise by developing and supporting knowledge‐exchange partnerships between international experts on critical issues.

These investments will catalyze interest in new applications of forest‐derived fibre and the advantages of building with wood and will help to achieve a diversified forest industry, maintaining jobs and economic prosperity.

To further support research and development, the Government of Canada has created the Transformative Technologies Program, delivered by FPInnovations, which has a component that delivers support to the value‐added wood sector in a variety of capacities to the provinces. In 2017‐18, over 100 small and medium sized enterprises received technical expertise on process improvements, assistance with equipment justification, advice on product standards, and information on market solutions to problems related to manufacturing.

The EMO program also provides support to organizations that produce value‐added products.  A new program element was added at the most recent program renewal to support export-readiness of secondary manufacturers. The EMO maintains a library of market studies and strategies, available to industry to inform their market development efforts. The EMO program also provides funding to promote Canadian forest products, typically in the form of a trade mission, to highlight Canadian wood building systems and other Canadian forestry products to create important relationships with foreign markets.

House Committee on Environment and Sustainable Development Report 17 – Better Buildings for a Low Carbon Future

Summary: The report examines how the federal government can help to accelerate the transition to more energy-efficient buildings (residential, commercial and institutional) that emit fewer greenhouse gas emissions.

Report Recommendations – Better Buildings for a Low Carbon Future (PDF, 6.79 MB)

Departmental Response – Better Buildings for a Low Carbon Future (PDF, 113 KB)

House Committee on Environment and Sustainable Development Report 17 – Better Buildings for a Low Carbon Future
Report Recommendations Departmental Response
1. The Committee recommends that the National Research Council, working with the Canadian Commission on Building and Fire Codes, publish the national model energy codes for both new and existing buildings as soon as possible and for existing buildings no later than fiscal year 2022-23. There were no recommendations for NRCan
2. The Committee recommends that the National Research Council work with the Canadian Commission on Building and Fire Codes to add a new core objective to the national model codes that clearly identifies the importance of increasing energy efficiency and decreasing greenhouse gas emissions in Canada’s buildings. There were no recommendations for NRCan
3. The Committee requests that Global Affairs Canada and Finance Canada respond to this report with a full description of how recent trade agreements signed by Canada have reduced tariffs on products and services that are specifically relevant to low-carbon building materials. There were no recommendations for NRCan
4. The Committee recommends that Employment and Social Development Canada ensure that programs exist or are established to address the labour transition required so that skilled personnel are available to implement net-zero energy ready codes. There were no recommendations for NRCan
5. The Committee recommends that Natural Resources Canada, the National Research Council, and the Canada Mortgage and Housing Corporation work together to develop a national strategy for energy retrofits of existing buildings that reflects regional differences and targets the most effective emissions reduction opportunities.

Canada’s Buildings Strategy under the Pan-Canadian Framework articulates a national strategy to increase the energy efficiency of existing buildings

Natural Resources Canada took a number of actions to support this work in 2018-2019 including:

  • Continued work on developing and implementing Net-Zero Energy Ready (NZER) codes for new buildings. 
  • Expanding the ENERGY STAR certification program for existing buildings and supporting provinces, territories, municipalities, and stakeholders to benchmark, label and disclose energy use in commercial and institutional buildings.  These activities provide businesses with transparent information on the energy performance of their buildings. Increased awareness of energy use helps encourage retrofits and pushes the entire market towards greater energy efficiency. Expanding the ENERGY STAR certification program for existing buildings and supporting provinces, territories, municipalities, and stakeholders to benchmark, label and disclose energy use in commercial and institutional buildings. These activities provide businesses with transparent information on the energy performance of their buildings. Increased awareness of energy use helps encourage retrofits and pushes the entire market towards greater energy efficiency.
  • Ongoing work to develop partnership opportunities with NRC on the topic of energy efficiency in buildings.
  • Through CanmetEnergy, NRCan provided computational decision support tools to Canada-wide analyses of options for cost-effective retrofits for housing and buildings.  The results of this work have been provided within NRCan, NRC (Codes Canada) and CMHC, to help with code adoption by provinces, development of the next codes and support of the National Housing Strategy respectively.

The Government is also undertaking the following efforts related to retrofits of existing buildings to lead by example:

  • NRCan’s Greening Government Services program provides ongoing support to build federal capacity to reduce energy consumption in facilities through increasing energy management skills, supporting strategic planning, and de-risking innovative clean and energy efficient technologies.
6. The Committee recommends that Infrastructure Canada work to provide significant funding in order to accelerate energy retrofits of commercial, institutional, and multi-residential buildings in the public and private sectors, such as through the Canada Infrastructure Bank. There were no recommendations for NRCan
7. The Committee recommends that the federal government create or adopt a measurement tool to take into account the net carbon emissions avoided through adaptive reuse of existing buildings.

NRCan continues to administer and enhance the ENERGY STAR Portfolio Manager benchmarking tool. Over 22,000 buildings have been entered into the tool, which helps them track the performance of their building.  As well, numerous stakeholders are using the tool to deliver their programs and challenges, such as the Province of Ontario’s mandatory Energy and Water Reporting and Benchmarking (EWRB) initiative and Building Owners and Managers Association (BOMA)’s BOMA BEST certification program.

In October 2018, NRCan launched an ENERGY STAR Multifamily High Rise pilot program to recognize high performing new building designs in Ontario. If successful, the program is expected to be expanded to other provinces.

8. The Committee recommends that the federal government create or adopt a measurement tool to take into account the net carbon emissions avoided through adaptive reuse of existing buildings. There were no recommendations for NRCan.
9. The Committee recommends that, as the federal government takes steps to recognize the value of embedded carbon in existing construction, it should take into account the unique characteristics of heritage buildings and the public interest in their protection. In 2018-2019, NRCan launched a Pilot Recommissioning Project for Special Purpose Federal Buildings. This includes heritage buildings in the Parliamentary Precinct. A case study will help other federal custodians of heritage buildings successfully analyze and implement recommissioning projects in high-security laboratories, airports and heritage buildings. This project will document challenges and solutions arising from these non-typical recommissioning projects.
10. The Committee recommends that Natural Resources Canada, the National Research Council, and Environment and Climate Change Canada include building operator and building inspector training as part of federal funding, research, and incentive programs aimed at improving energy efficiency and reducing greenhouse gas emissions from the built environment.

NRCan offers cost-shared financial assistance to help organizations implement the ISO 50001 standard in commercial, institutional and industrial facilities. 

In 2018-2019, NRCan began work to customize the 50001 Ready Navigator tool for use in Canada. The tool will offer step-by-step guidance to industrial, commercial and institutional organizations looking to implement a structured energy management system at their facilities.  It aligns with the energy management system best practices outlined in ISO 50001 and will help organizations build towards compliance with the ISO 50001 standard. The tool is expected to be launched in Spring 2020.

In 2018-2019, NRCan provided funding for the development of new energy code training materials for building inspectors as well as for designers, builders, equipment manufacturers and building operators. These training materials are on track for roll-out by the Summer of 2020.

11. The Committee recommends that Natural Resources Canada, in collaboration with the National Research Council, invest in methods (e.g. apps, web-based programs) through which building and home owners can obtain easily-understood information about their estimated energy usage and carbon emissions, and to compare the economic and emissions impacts of various energy-efficiency retrofits.

NRCan maintains a regularly updated on-line directory for ENERGY STAR rebates and incentives available within Canada.

In April 2019, the Government of Canada launched the online EnerGuide Labelling Portal, allowing homeowners to view and compare their energy use.

In 2018-2019, NRCan provided $245k in funding over two years for the development of enhancements to the Canadian version of the Standard Energy Efficiency Database (SEED) platform.  SEED is an online tool that facilitates the management of energy benchmarking, labelling and disclosure (BLD) programs and it will be made available to jurisdictions to support their BLD programs and policies. The enhanced SEED platform is expected to launch in Fall 2019.

12. The Committee recommends that the federal government further invest in research, development, and demonstration in building science.

Through the Green Infrastructure, Energy Efficient Buildings RD&D program, 12 projects have been selected for funding following the first call for Expressions of Interest, allocating a portion of the Program’s $48.4million. These projects outcomes are expected to:

  • Accelerate the development and adoption of net-zero codes and necessary technologies,
  • Promote highly energy-efficient building design and construction practices,
  • Provide cost-effective building solutions, and validate their applications locally with real-world demonstrations,
  • Build confidence with industry and PTs to accelerate their adoption of revised building codes.

Further rounds of funding will see the remainder of funds allocated through to 2026. 

Additional actions include, NRCan’s Green Construction through Wood (GCWood) program, which contributed $947,000 to the National Research Council’s (NRC) code change process and associated research and development activities, mainly related to demonstrating the fire and seismic performance of wood products and assemblies in tall wood buildings in support of the 2020 edition of the National Building Code of Canada (NBCC).

The GCWood program will continue funding NRC to support the development of technical information targeting future performance-based building codes (i.e., 2025 & 2030 editions of the NBCC).

Since October 2017, GCWood launched three calls for Expression of Interest targeting tall wood buildings (10+ storeys), low-rise non-residential wood construction, and timber bridges.

Technical information developed with this funding will help inform building code committees, design and construction communities, the construction industry, building regulators and other stakeholders across Canada about the safety and the environmental benefits of building with wood. 

Lastly, Budget 2019 invested over $1 billion in energy efficiency to transform the built environment. The funds were provided to the Federation of Canadian Municipalities (FCM) Green Municipal Fund (GMF). This long-running fund supports projects across Canada that benefit communities through improved environmental, economic, and social outcomes, including RD&D projects for buildings. Since 2000, the GMF has financed more than 1,250 municipal sustainability initiatives. These new investments will continue to build on an already successful program.

13. The Committee recommends that the Canada Mortgage and Housing Corporation work with its partners to more broadly promote the incentives available for buying, building, and renovating energy-efficient homes, prior to the point of financing. There were no recommendations for NRCan
14. The Committee recommends that Natural Resources Canada and the National Research Council work with, and encourage, provincial/territorial, municipal, and industry partners to streamline the regulatory environment in order to encourage the early adoption of onsite renewable energy generation and green building techniques and technologies. No concrete actions were taken by NRCan.  The Natural Research Council is leading the response to this recommendation.
15. The Committee recommends that Natural Resources Canada, Finance Canada, Infrastructure Canada, and the Canada Mortgage and Housing Corporation identify and implement effective financial incentives to encourage on-site renewable energy generation and net-zero energy ready building construction (e.g. a federally-backed mortgage rate reduction, Canada Infrastructure Bank funding, insurance incentives, or programs similar to the U.S. renewable energy tax credits or U.S. tax credits for home builders). In 2018-2019, Natural Resources Canada awarded 22 projects so far under the Smart Grid Program, which was launched at the beginning of 2018. These technologies are key to modernizing Canada’s electricity systems, allowing more local renewable energy to be integrated within electric grids, and allowing more efficient and economic operation of electricity services for customers.
16. The Committee requests that the federal government focus more attention on its Greening Government Strategy and report back to the Committee on its progress by the end of 2018. There were no recommendations for NRCan
17. The Committee recommends that Public Services and Procurement Canada and the Treasury Board of Canada Secretariat work with all other federal departments and agencies to demand higher energy efficiency standards (e.g. LEED, BOMA BEST) when procuring rental space and new buildings. There were no recommendations for NRCan
18. The Committee recommends that Public Services and Procurement Canada and the Treasury Board of Canada Secretariat require all federal custodian departments and agencies to develop and implement multi-year energy retrofit strategies for their respective portfolios of existing federally-owned buildings. There were no recommendations for NRCan
19. The Committee recommends that the federal government, when making federal infrastructure procurement decisions, consider including full life cycle analyses that address carbon emissions and storage resulting from the infrastructure’s materials, construction, operation, and de-commissioning.

NRCan’s Green Construction through Wood (GCWood) program has signed a multi-year Letter of Agreement with NRC to provide a total of $750,000 over a 3-year period to the National Research Council (NRC) to kick start the Low-carbon Assets through Life Cycle Assessment (LCA) Initiative, including over $230,000 in 2018-2019.

These funds helped to establish a solid foundation of information that the Steering Committee can use to support the project and to initiate the wood value-chain LCA inventory datasets.

20. The Committee recommends that Natural Resources Canada and the National Research Council work with Indigenous governments and communities, territorial and affected provincial governments, and industry to invest in building science and clean energy generation research, development, demonstration, and post-construction monitoring in the Canadian North.

Through the Clean Energy for Rural and Remote Communities (CERRC), NRCan is currently supporting clean energy and capacity building projects across the North.

In 2018-2019, CERRC launched two calls for proposal for clean energy projects and capacity building proposals. A total of 225 proposals were received, requesting $797M between the two calls. 20 Northern projects were approved for funding for these two calls.

In February 2019, NRCan launched the Impact Canada Off-Diesel Initiative (IODI), which was designed based on over 18 months of engagement with stakeholders and Indigenous organizations and rights holders. This includes regional Indigenous organizations and communities in the North, territorial governments, and Northern utilities. Nine of the 15 remote Indigenous communities selected for the IODI are in the North (NWT, Nunavut, Nunavik and Nunatsiavut).

21. The Committee recommends that Natural Resources Canada and the National Research Council work with Indigenous governments and communities and territorial and affected provincial governments to develop building standards specifically adapted to the Canadian North. The NRC and NRCan are partnering to develop simplified housing design guides adapted to the requirements of northern, remote and Indigenous communities. The guides are expected to be completed by March 2021.

House Committee on Public Accounts’ Special Examination of Atomic Energy of Canada Limited

Summary: The Committee’s report provides the results of its study of the Office of the Auditor General (OAG)’s 2017 special examination. AECL

Report Recommendations – Special Examination of Atomic Energy of Canada Limited

Departmental Response – Special Examination of Atomic Energy of Canada Limited (PDF, 425 KB)

House Committee on Public Accounts’ Special Examination of Atomic Energy of Canada Limited
Report Recommendations Departmental Response
1. Atomic Energy of Canada Limited (AECL) should provide the House of Commons Standing Committee on Public Accounts with a report outlining all the measures and targets in its performance assessment of the Canadian Nuclear Laboratories. Atomic Energy of Canada Limited: Provided a report to the Committee responding to both recommendations. This report, available on AECL’s website, provides detailed information about the components of AECL’s Comprehensive Performance Measurement Framework.
2. AECL should provide the Committee with a report outlining the percentage of existing and new employees on the contract management team that have completed the contract management training program. Atomic Energy of Canada Limited: Provided a report to the Committee responding to both recommendations. This report, available on AECL’s website, answer the Committee’s question. As of September 21, 2018 all of AECL’s contract management staff had completed the contract management training program.

Senate Committee on Transport and Communications’ Report 6, Pipelines for Oil: Protecting Our Economy, Respecting Our Environment

Summary: The Report stresses the economic imperative for Canada to develop a strategy to facilitate the transportation of oil through the expansion of the country’s pipeline infrastructure. The report notes that to achieve that goal, a more inclusive, fact-based and apolitical regulatory regime must be put in place, environmental concerns must be considered more significantly and Indigenous peoples must be more closely involved.

Report Recommendations – Pipelines for Oil: Protecting Our Economy, Respecting Our Environment (PDF, 2.11 MB)

Departmental Response – Pipelines for Oil: Protecting Our Economy, Respecting Our Environment (PDF, 4.0 MB)

Senate Committee on Transport and Communications’ Report 6, Pipelines for Oil: Protecting Our Economy, Respecting Our Environment
Report Recommendations Departmental Response
1.  The Committee recommends that Natural Resources Canada, in collaboration with Indigenous peoples, industry and academia, develop and update annually a working document of best practices in building partnerships with Indigenous communities in the natural resources sector.

In February 2019, the Government announced a new Recognition and Implementation of Rights Framework. The Government of Canada will engage with First Nation, Inuit and Métis individuals, communities, organizations and governments. The Government will also engage with other key partners, including provincial and territorial governments, industry, scholars and academics, and the general public. Having a clear framework for recognizing and implementing Indigenous rights will also contribute to greater clarity and predictability for the development and use of lands and resources in Canada.

The Government of Canada has worked in partnership with Indigenous communities to co-develop and implement Indigenous Advisory and Monitoring Committees (IAMCs) for the Trans Mountain Expansion and Line 3 Replacement projects. These Committees, the first initiatives of their kind for linear (pipeline) projects, bring together Indigenous and government representatives to monitor and provide advice on environmental, safety and socio-economic matters related to the projects.

The new Impact Assessment Act which came into force on August 28, 2019, provides new opportunities for the government to work in partnership with Indigenous peoples from the start through early and inclusive engagement in assessing resource projects so we can get to better project decisions and outcomes.

Natural Resources Canada has also been working collaboratively with Indigenous Peoples and other federal departments in the development of an Indigenous Knowledge Framework to support the consistent application of the Indigenous knowledge provisions in the Impact Assessment Act, the Canadian Energy Regulator Act, the Canadian Navigable Waters Act and the fish and fish habitat provisions of the Fisheries Act.

2. The Committee recommends that the Governor in Council use its authority to make appointments under the National Energy Board Act to appoint permanently an Indigenous peoples’ representative to the National Energy Board. The representative should be chosen in consultation with Indigenous communities.

The Canadian Energy Regulator Act, which came into force on August 28, 2019, require that at least one member of the Board of Directors and at least one full time Commissioner be an Indigenous person (First Nations, Métis or Inuit). Recent Governor in Council (GIC) appointments include an Indigenous representative for each of the Board of Directors and Commission.  Further, the Government of Canada will establish an Indigenous working group for the initial Canadian Energy Regulator (CER) selection processes to support the recruitment of talented Indigenous candidates and advise the Selection Committees on ways to eliminate biases and barriers for Indigenous peoples. 

In addition, the Act contains a mandatory provision to establish an Indigenous Advisory Committee to enhance the involvement of Indigenous peoples in pipeline, power line and offshore renewable energy projects.

3. The Committee recommends that Natural Resources Canada modernize the National Energy Board (NEB) regulatory process by:

  • removing the Governor in Council’s (i.e. Cabinet’s) automatic final approval of pipeline projects, thus empowering the NEB to act in Canada’s national interests on pipeline decisions. These NEB decisions would be subject to appeal to the Governor in Council, similar to some licensing decisions by the Canadian Radio-television and Telecommunications Commission;
  • ensuring that Canadians have multiple ways of participating in the NEB process, including, for example, online participation;
  • broadening the NEB’s mandate to include greenhouse gas emissions and other environmental matters that are within the scope of pipeline construction;
  • broadening the NEB’s mandate to ensure effective communication and consultation with stakeholders; and
  • having the federal government conduct its consultation with First Nations at the same time as the NEB’s review of a pipeline project, and feeding the results of that consultation into the NEB process before the Board’s final decision on a project.

The new Canadian Energy Regulator Act and Impact Assessment Act which came into force on August 28, 2019 addresses these recommendations:

  • For pipeline projects less than 40km in length, the CER Commission has full authority to make a decision on whether the project can proceed and may impose any conditions that it considers appropriate. In the case of pipeline projects greater than 40km, the GiC makes the decision based on the regulator’s recommendation but would be unable to overturn a negative recommendation.
  • Unlike the NEB Actthe new CER Act does not have a “standing test”. This ensures that any member of the public has an opportunity to express their views during review processes, including through submissions online.
  • Canada’s environmental obligations and climate change commitments will  be explicitly considered in decisions concerning pipelines, power lines, and offshore renewable energy projects.
  • New processes for greater public engagement, include a new early planning phase and extended Participant Funding Program to support meaningful Indigenous and public engagement.
  • Making the CER and the Impact Assessment Agency an agent for Her Majesty for all purposes, gives the regulator the authority to consult with Indigenous groups on behalf of the Crown. This removes the need for parallel processes for consultations.  In addition, greater opportunities for Indigenous peoples to participate in project reviews would be pursued via various methods, including an early planning phase and Indigenous advisory committees.
4. The Committee recommends that the National Energy Board, as part of its hearings on the proposed Energy East project, examine the Strait of Canso area as an alternative end point of the pipeline. The Energy East project was cancelled by the proponent on October 5, 2017.
5. The Committee recommends that Natural Resources Canada focus on improving public knowledge about regulatory processes, the economic importance of the oil and gas sector, and its impact on Indigenous peoples and the environment.

On August 26, 2019 Canada's Minister of Natural Resources announced the creation of the Canadian Centre for Energy Information. Once operational, the new Centre, which received $15.2 million over five years in Budget 2019, will provide Canadians with access to independent and credible information and expert analyses on which to base important decisions for their businesses, their communities, and the environment. The Centre is a partnership between Natural Resources Canada and Statistics Canada, where it will be housed.

Through a modernized environmental impact assessment process, the government will increase access to science and evidence, and make easy-to-understand summaries of decisions publicly available. The government will also work in partnership with Indigenous peoples to ensure their involvement in studying project impacts from the start.

6. The Committee recommends that Fisheries and Oceans Canada ensure that the Oceans Protection Plan includes enhancements to the Canadian Coast Guard, including an expansion of resources and bases of operations for the purposes of oil tanker spill mitigation and prevention.

New initiatives under the Government’s Oceans Protection Plan (Transport Canada, DFO, ECCC) are already underway to enhance the Canadian Coast Guard. These include:

  • Expanding the Canadian Coast Guard Auxiliary role in environmental response, including development of Indigenous chapters.
  • Ensure a faster and more efficient first response to reports of oil spills. Canadian Coast Guard equipment for oil spill response is being upgraded including: spill booms, small response vessels and clean-up technologies, and new mobile command posts to better coordinate with partners.
  • Specific investments in new radar sites in key strategic locations on the east and west coasts, as well as the re-opening of the Maritime Rescue Sub-Centre in St. John's, Newfoundland and Labrador
  • Increasing the towing capacity of the Coast Guard fleet will allow the Coast Guard to take swift action to avoid disasters.
  • Two new vessels operated by the Canadian Coast Guard in the areas that pose the greatest risk have been leased to tow large commercial ships, including tankers.
7. The Committee recommends that the Government of Canada continue its research into the behaviour of various types of oil in water and how aquatic ecosystems can be better reclaimed after an oil spill, as outlined in the Oceans Protection Plan.
  • Natural Resources Canada is providing $5M in funding for external technology development under the Oil Spill Response Science Program. These projects are focused on improving recovery technologies and processes for the clean-up of oil products spilled in marine environments.
  • The $45M Multi-Partner Initiative is led by Fisheries and Oceans Canada under the OPP, and will focus on the science of alternative oil spill response measures
  • In response to the National Energy Board reconsideration report of the Trans Mountain Expansion project and accommodation measures offered to Indigenous groups during Crown consultations the Government is introducing several safety enhancements for vessel traffic on the west coast and will be launching a Challenge program to support the development of new oil spill recovery technologies.

Response to audits conducted by Public Service Commission of Canada or Office of the Commissioner of Official Languages

Public Service Commission of Canada Audit of System-Wide Staffing

Summary

The objectives of the System-Wide Staffing Audit were:

  • to determine progress on implementing the New Direction in Staffing requirements
  • to assess adherence to the Public Service Employment Act and other applicable statutes, the Appointment Policy, and the Appointment Delegation and Accountability Instrument
  • to gauge stakeholders’ awareness and understanding of New Direction in Staffing requirements as well as their roles and responsibilities

Overall, the audit found that all 25 participating departments and agencies had implemented required changes to their appointment framework. With respect to appointments, the audit observed high levels of compliance for requirements regarding consideration of persons with a priority entitlement, merit and other appointment related authorities. However, the audit did identify areas for improvement. It concludes that efforts should focus on improving system-wide awareness and understanding of staffing requirements; improved quality control of documents in relation to official languages; and having sufficient documentation to explain appointment decisions.

The recommendations included in this report are intended to support system-wide improvements in staffing across the federal public service. The audit invite all deputy heads to consider our audit findings and recommendations to identify areas within their own organizational staffing systems that may require further monitoring or action. In keeping with the principle of shared accountability for the integrity of staffing, deputy heads may wish to pay special attention to our recommendation on official languages obligations throughout the appointment process.

There were no recommendations for NRCan

There were no audits in 2018–19 requiring a response.

Response to audits conducted by the Office of the Auditor General of Canada or the Commissioner of the Environment and Sustainable Development

2018 Fall Reports of the Commissioner of the Environment and Sustainable Development to the Parliament of Canada – Report 3 – Departmental Progress in Implementing Sustainable Development Strategies

Summary

This audit focused on whether the organizations we examined had adequately applied the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, and whether they had met their commitments to strengthening their strategic environmental assessment practices.

The audit concluded that the selected organizations had adequately applied the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals to most policy, plan, and program proposals submitted for approval to Cabinet in 2017. Overall, the organizations had applied the directive to 93% of proposals, which represents a significant improvement in comparison with observations made in our previous reports on the same topic over the past five years. These organizations had also made satisfactory progress toward meeting their commitments to strengthening their strategic environmental assessment practices.

There were no recommendations for NRCan

2018 Spring Reports of the Auditor General of Canada to the Parliament of Canada – Report 1 – Building and Implementing the Phoenix Pay System

Summary

This audit examined whether Public Services and Procurement Canada effectively and efficiently managed and oversaw the implementation of the new Phoenix pay system. The audit focused on the Department as the lead organization for building and implementing the system and for operating centralized pay operations for 46 departments and agencies in the Public Service Pay Centre in Miramichi, New Brunswick. The audit also examined whether the system was fully tested, would deliver the functions needed to pay federal employees, was secure, and would protect employees’ private information. The audit also examined whether Public Services and Procurement Canada adequately supported selected departments and agencies in their move to Phoenix.

The audit concluded that the Phoenix project was an incomprehensible failure of project management and oversight. Phoenix executives prioritized certain aspects, such as schedule and budget, over other critical ones, such as functionality and security. Phoenix executives did not understand the importance of warnings that the Miramichi Pay Centre, departments and agencies, and the new system were not ready. They did not provide complete and accurate information to deputy ministers and associate deputy ministers of departments and agencies, including the Deputy Minister of Public Services and Procurement, when briefing them on Phoenix readiness for implementation. According to the OAG, the decision by Phoenix executives to implement Phoenix was unreasonable according to the information available at the time. As a result, Phoenix has not met user needs, has cost the federal government hundreds of millions of dollars, and has financially affected tens of thousands of its employees.

There were no recommendations for NRCan

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