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8. Transfer Payment Programs



1) Name of Transfer Payment Program: Contribution in support of the Canadian Energy Efficiency Retrofit Fund
2) Start Date: April 1, 2007 3) End Date: March 31, 2011
4) Description:

This template entitled "Canadian Energy Efficiency Retrofit Fund" covers two components under the ecoENERGY Retrofit Program: ecoENERGY Retrofit – Small and Medium Organization, and ecoENERGY Retrofit – Existing Building Initiative (EBI) Extension.

ecoENERGY Retrofit – Small and Medium Organizations provides incentives to increase efficiency in small and medium organizations. Industrial facilities with fewer than 500 employees and commercial and institutional buildings of less than 10,000 square metres may be eligible for funds through contribution agreements with ecoENERGY Retrofit for Small and Medium Organizations.

The ecoENERGY Retrofit – Existing Buildings Initiative (EBI) has existed since 1998, under different names (Energy Innovators Plus, Commercial Institutional Building Retrofit Initiative, Retrofit of Existing Commercial Buildings, to finally be called in May 2005, Existing Buildings Initiative). The program was extended to March 31, 2008 to accommodate the significant increase in program applications received in the summer of 2006.

5) Strategic Outcome(s): Canadians derive sustainable social and economic benefits from the assessment, development and use of energy, forest and mineral resources, and have the knowledge to mitigate environmental impact and respond effectively to natural and man-made hazards.
6) Results Achieved: In 2007–2008, 96 retrofit projects were funded through ecoENERGY Retrofit – Small and Medium Organizations representing under 500 employees (industry) or less than 10,000 square metres (buildings) for a total expected emissions reduction of approximately 30 kilotonnes. The commercial and institutional buildings stream of this program was late launching (June 15, 2007) due to work force adjustment restructuring of the entire Buildings Division in the Spring of 2007. Approximately 6 months of program activity were lost as a result of program start-up delays. A large portion ($1.4M) of the 07/08 program budget was re-profiled into 08/09.

ecoENERGY Retrofit – Existing Buildings Initiative was extended to accommodate approximately 300 organizations that had put considerable time and effort into proposals that, in total, exceeded the previous program funding. These organizations had a reasonable expectation that they would receive funding, which could be met by extending the program for one year. Due to the period of time between October 2006 and March 2007, when there was no policy authority for program extension, there was no ability for the program to approve projects. Therefore, some of the project proponents could not wait and withdrew their proposals from the program. This explains the lower results.

 
(in millions of $) 7) Actual Spending 2005–2006 8) Actual Spending 2006–2007 9) Planned Spending 2007–2008 10) Total Authorities 2007–2008 11) Actual Spending 2007–2008 12) Variance(s) Between 9) and 11)
13) Program Activity: Energy
14) Total Grants            
14) Total Contributions     18.4 15.0 11.1 7.3
14) Total Other Types of TPs            
15) Total Program Activity            
16) Comment(s) on Variance(s): A total of $3.4M was reprofiled from 2007–08 into future years, resulting in a Total 2007–08 Authority of $15M. A balance of $3,877,300 was unspent at the end of the year.
17) Significant Evaluation Findings and URL(s) to Last Evaluation(s): An evaluation of the Retrofit initiative is planned in 2009–10.
18) Significant Audit Findings and URL(s) to Last Audit(s).

 


1) Name of Transfer Payment Program: ecoEnergy Renewable Power Program
2) Start Date: April 1, 2007 3) End Date: March 31, 2011
4) Description of Transfer Payment Program: The ecoENERGY for Renewable Power program offers a production incentive of 1 cent per kilowatt hour to eligible producers of electricity from low impact renewable power sources such as wind, low impact hydro, biomass, geothermal, photovoltaics and ocean energy.
5) Strategic Outcome: Canadians derive sustainable social and economic benefits from the assessment, development and use of energy, forest and mineral resources, and have the knowledge to mitigate environmental impacts and respond effectively to natural and man-made hazards.
6) Results Achieved: In fiscal year 2007–08, 12 contribution agreements were signed for about 948 megawatts of capacity and contribution of approximately $305 million over ten years.
(in millions of $) 7) Actual Spending 2005–06 8) Actual Spending 2006–07 9) Planned Spending 2007–08 10) Total Authorities 2007–08 11) Actual Spending 2007–08 12) Variances
13) Program Activity: Energy
14) Total Grants            
14) Total Contributions 0.0 0.0 21.4 19.4 16.0 5.4
14) Total Other Transfer Payments            
15) Total PA            
16) Comments on Variances: The ecoENERGY Renewable Power program had anticipated several projects that were commissioned in fiscal years 2006–07 and 2007–08 would have gone through the program's approval process. Several projects were delayed due to the requirements for environmental assessments and consultations with Aboriginal Groups. Consequently, the program was unable to sign contribution agreements for these projects in fiscal year 2007–08 resulting in $5.4M variance ($2M was reprofiled to future years and $3.4M lapsed due to delays)
17) Significant audit and evaluation findings and URL to last audit and/or evaluation:

 


1) Name of Transfer Payment Program: ecoENERGY Retrofit Homes
2) Start Date: April 1, 2007 3) End Date: March 31, 2011
4) Description:

Announced as part of the suite of ecoENERGY initiatives, under the ecoENERGY Retrofit Program, ecoENERGY Retrofit Homes is available to owners of single family homes including detached, semi-detached and low rise multi-unit residential buildings. Property owners can qualify for federal grants by improving the energy efficiency of their homes, and reducing their home's impact on the environment. The maximum grant one can receive per home or multi-unit residential building is $5,000; whereas the total grant amount available to one individual or entity for eligible properties over the life of the program is $500,000.

The Government of Canada provides grants to owners of low-rise properties who complete energy efficiency retrofits based on the energy advisors' recommendations. Owners of rental properties may also qualify for a grant. The grant amount is based on carrying out energy efficiency retrofits such as increasing attic insulation or replacing a gas furnace with a qualified ENERGY STAR® model. Only homes that have undergone a residential energy efficiency assessment by an NRCan-licensed advisor are eligible for grants.

5) Strategic Outcome(s): Canadians derive sustainable social and economic benefits from the assessment, development and use of energy, forest and mineral resources, and have the knowledge to mitigate environmental impact and respond effectively to natural and man-made hazards.
6) Results Achieved: 102,800 homes had pre-retrofit energy evaluations and 17,000 homeowners qualified for grants averaging approximately $1K each; 12,000 were paid in 07–08. All regions of Canada except one province and one territory have matching programs where homeowners can get seamless access to both orders of government support for home retrofits.
 
(in millions of $) 7) Actual Spending 2005–2006 8) Actual Spending 2006–2007 9) Planned Spending 2007–2008 10) Total Authorities 2007–2008 11) Actual Spending 2007–2008 12) Variance(s) Between 9) and 11)
13) Program Activity: Energy
14) Total Grants       12.0 12.0 12.0
14) Total Contributions            
14) Total Other Types of TPs            
15) Total Program Activity            
16) Comment(s) on Variance(s): In Supplementary Estimates "A" the grant program "Grants in support of Home Energy Retrofits" was changed to "Grants in support of ecoENERGY Retrofit – Homes". Funding formerly assigned to "Grants in support of Home Energy Retrofits" was subsequently used to fund the "Grants in support of ecoENERGY Retrofit – Homes". Subsequent to Supplementary Estimates "A", an amount of $25.5M was reprofiled from 2007–08 into future years, resulting in a 2007–08 Authority of $12M.
17) Significant Evaluation Findings and URL(s) to Last Evaluation(s): An evaluation is planned in 2009–10.
18) Significant Audit Findings and URL(s) to Last Audit(s).

 


1) Name of Transfer Payment Program: In support of the efficiency and alternative energy programs
2) Start Date: April 1, 1997 3) End Date: 2008
4) Description of Transfer Payment Program: This program provides contribution funding for a variety of energy efficiency and alternative energy initiatives.
5) Strategic Outcome: Canadians derive sustainable social and economic benefits from the assessment, development and use of energy, forest and mineral resources, and have the knowledge to mitigate environmental impacts and respond effectively to natural and man-made hazards.
6) Results Achieved:

Key performance information is provided in the DPR in Section II under the heading Energy Program Activity. As well, more detailed reporting is provided in the 2007–2008 Report to Parliament under the Energy Efficiency Act, which is expected to be tabled in Parliament in late 2008.

(in millions of $) 7) Actual Spending 2005–06 8) Actual Spending 2006–07 9) Planned Spending 2007–08 10) Total Authorities 2007–08 11) Actual Spending 2007–08 12) Variances
13) Program Activity: Energy
14) Total Grants            
14) Total Contributions 77.2 53.9 10.8 11.7 11.2 0.5
14) Total Other Transfer Payments            
15) Total PA            
16) Comments on Variances:
17) Significant audit and evaluation findings and URL to last audit and/or evaluation:

 


1) Name of Transfer Payment Program: Forest Industry Long-Term Competitiveness Strategy – Expanding Market Opportunities
2) Start Date: 2006–2007 3) End Date: 2009–2010
4) Description: There are three initiatives in this program: the Canada Wood Export Program, the North American Wood First Initiative, and the Value to Wood Program. These initiatives aim to increase market opportunities for Canadian wood product producers through market development, branding, and technology development and transfer activities.

Canada Wood Export Program – The Canada Wood Export Program is a national market development program, supporting wood products associations in their efforts to expand offshore export opportunities for Canadian wood products in traditional and emerging markets. More information can be found at http://cfs.nrcan.gc.ca/subsite/canada-wood/home.

North American Wood First Initiative – North American Wood First works in collaboration with wood products associations in North America, technical institutes, universities, provinces and American states, and support projects to increase the use of wood products in North American non-residential construction (schools, shopping centres, hospitals, etc.).

Value to Wood Program – The Value to Wood Program is a national research and technology transfer program with the purpose of enhancing the productivity and competitiveness of the value-added wood products industry. Additional information can be found at http://www.valuetowood.ca/html/english/index.php.

5) Strategic Outcome: Canadians derive sustainable social and economic benefits from the assessment, development and use of energy, forest and mineral resources, and have the knowledge to mitigate environmental impacts and respond effectively to natural and man-made hazards.
6) Results Achieved:

Canada Wood Export Program – The program continued to support the network of Canada Wood offices (China, Japan, Europe and South Korea, with representation in Taiwan), through which market development initiatives were implemented. These initiatives have raised the profile of Canadian wood products, influenced the development of residential construction codes and standards to accommodate wood use, and supported a number of training initiatives on wood frame designs and systems. In 2007–08, these activities have increased year-over-year wood exports to China, South Korea and Europe by 46%, 13% and 10% respectively. The program has also helped to stabilize Canada's market share in Japan despite challenging market pressures.

China – Key Results

  • Publication of wood design drawings for architects.
  • Completion of a durability guide for wood products.
  • Successful delivery of programs supporting the acceptance of Canadian conformity assessment and grade-stamps.
  • Quality Assurance and Technical Transfer Program well established – training building inspectors and supporting builders in their wood frame construction (WFC) projects.

Japan – Key Results

  • Successful fireproof testing of multi-family wall and balcony assemblies.
  • Success in persuading Japan's top five computer-aided design (CAD) software makers to include the Canada Tsuga E120‑F330 kiln dried product line in the next edition of their software.
  • Recognition of Canada Jack Pine in the Glulam Standard by the Japanese Building Standards Law.

South Korea – Key Results

  • Improved Collaboration between Canadian and Korean fires experts.
  • Pending inclusion of Canadian species in Korean standards.
  • Successful delivery of wood frame construction training to builders and architects.

Europe – Key Results

  • CE marking of lumber achieved – providing unfettered access to the EU market.
  • Western red cedar cladding now incorporated in the UK Green Building Guide.

North American Wood First Initiative – While still in the early stages of implementation, the program funded the delivery of seminars, workshops and briefings to architects and code officials in both Canada and the U.S. to demonstrate the feasibility and versatility of wood in non-residential applications. This initiative was also successful in influencing a number of non-residential projects toward the use of wood products. In Canada, this initiative has enhanced the existing "Wood WORKS" program in British Columbia and Ontario and the implementation of new non-residential initiatives in the Maritimes, Quebec and the Prairies. In the U.S., this initiative contributed to the implementation of a "Wood WORKS" non-residential program in two regions – California and the Southeast (Carolinas and Georgia) region.

Value to Wood Program – The program continues to improve the competitiveness of the Canadian secondary-manufacturing wood sector and is supporting the expansion of value-added wood products markets in targeted offshore and North American markets.

In 2007–08, a network of 36 experts on the value-added wood products industry was funded through this program. The experts provided technical advice and market intelligence to Canadian companies in this sector. The $1 million of funding provided to this network of experts resulted in the leveraging of an additional $5 million of funding from provincial departments and regional development agencies.

The program provided $2 million in funding for 26 research projects at four Canadian universities and one national research organization to respond to the R&D needs of industry. This investment is also funding 15 graduate students to help build expertise and capacity in the secondary-manufacturing wood sector.

(in millions of $) 7) Actual Spending 2005–2006 8) Actual Spending 2006–2007 9) Planned Spending 2007–2008 10) Total Authorities 2007–2008 11) Actual Spending 2007–2008 12) Variance Between 10) and 11)
13) Program Activity: Sustainable Forest
14) Total Grants            
14) Total Contributions 0.0 0.1 15.8 14.9 14.8 0.1
14) Total Other Types of TPs            
15) Total Program Activity            
16) Comments on Variances:
17) Significant Evaluation Findings and URL(s) to Last Evaluation(s):

Canada Wood Export Program – http://www.nrcan.gc.ca/dmo/aeb/aeb-rpts-2007-EV0704-e.htm

Value to Wood Program – http://www.nrcan.gc.ca/dmo/aeb/aeb-rpts-2007-EV0701-e.htm

18) Significant Audit Findings and URL(s) to Last Audit(s):

 


1) Name of Transfer Payment Program: Forest Industry Long-Term Competitiveness Strategy – Promoting Forest Innovation and Investment
2) Start Date: 2006–2007 3) End Date: 2009–2010
4) Description: There are three initiatives in this program: the consolidation of Canada's three forest research institutes, the creation of the Canadian Wood Fibre Centre, and investment in forest innovation. These measures will enhance economic opportunities for Canada's forest sector as a result of increased investment in forest innovation.

Institute Consolidation: FPInnovations – The consolidation of Canada's three forest research institutes (Forintek, FERIC and Paprican) along with NRCan's Canadian Wood Fibre Centre will provide greater efficiency, synergies and strength in innovation and R&D, and will facilitate speaking with a stronger common voice on forest sector issues. Referred to as FPInnovations, this merger will create the world's largest forest research institute. Additional information on FPInnovations can be found at http://www.fpinnovations.ca/.

Canadian Wood Fibre Centre – The virtual Canadian Wood Fibre Centre (CWFC) is an NRCan initiative in collaboration with FPinnovations to increase the economic return from Canada's forest resources. Researchers within the CWFC will work in collaboration with researchers from FPInnovations, or wherever the expertise exists to increase the value of Canadian wood fibre. More information on CWFC can be found at http://cfs.nrcan.gc.ca/subsite/cwfc.

Investments in Forest Sector Innovation – The purpose of this initiative is to direct and harness the expertise of the newly consolidated FPInnovations – in close conjunction with provinces, industry, and academia – to invest in and develop transformative technologies relevant to all segments of the forest sector.

5) Strategic Outcome: Canadians derive sustainable social and economic benefits from the assessment, development and use of energy, forest and mineral resources, and have the knowledge to mitigate environmental impacts and respond effectively to natural and man-made hazards.
6) Results Achieved:

Institute Consolidation: FPInnovations – Funding under this program supported implementation of a new governance model; efforts to address human resources and administrative issues related to the consolidation (excluding capital projects); development of a business plan and communication strategy; and realignment of the program design and research priorities.

Canadian Wood Fibre Centre – In 2007–08, CWFC became fully operational and continued working towards integration with FPInnovation. A development plan was produced that defines the objectives, research plan and deliverables for CWFC until 2009. In conjunction with FPInnovations, stakeholder consultations were held to introduce CWFC and identify areas of mutual priority. A selection group made up of federal, provincial and industry stakeholders chose 21 projects in the areas of:

  • information for long-term sites;
  • production of high-quality fibre;
  • characterization and optimization of wood fibre;
  • economics; and
  • knowledge transfer.

Investments in Forest Sector Innovation – The Transformative Technologies Program was initiated with 57 research projects over 5 research themes including: next generation building solutions; next generation pulp and paper; fuels and chemicals from forest biomass; novel bioproducts; and integrated value maximization. Key initiatives underway in the first year of research include:

  • new commercial products from kraft pulp mills (transportation fuels);
  • significant progress on bioactive papers for the manufacturing of biosensors to detect toxins and pathogens;
  • development of high performance paper packaging reinforced with natural fibres;
  • new building designs and hybrid systems combining the use of wood, concrete and metals for 5‑wood storey + 1‑concrete storey and 8‑storey hybrid buildings; and
  • production of nanocrystalline cellulose (NCC) for enhanced durability, appearance and protection of wood products.
(in millions of $) 7) Actual Spending 2005–2006 8) Actual Spending 2006–2007 9) Planned Spending 2007–2008 10) Total Authorities 2007–2008 11) Actual Spending 2007–2008 12) Variance Between 9) and 11)
13) Program Activity: Sustainable Forest
14) Total Grants            
14) Total Contributions 0.0 0.4 28.1 23.4 22.6 0.8
14) Total Other Types of TPs            
15) Total Program Activity            
16) Comment(s) on Variance(s):
17) Significant Evaluation Findings and URL(s) to Last Evaluation(s):
18) Significant Audit Findings and URL(s) to Last Audit(s):

 


1) Name of Transfer Payment Program: GeoConnections Program
2) Start Date: May 2, 2005 3) End Date: March 31, 2010
4) Description: GeoConnections helps decision-makers use online location-based (or "geospatial") information, such as maps and satellite images, to tackle some of Canada's most pressing challenges by maintaining and expanding the Canadian Geospatial Data Infrastructure. The program focuses on working with partners in public health, public safety and security, the environment and sustainable development, Aboriginal matters, and geomatics technology development.
5) Strategic Outcome: Canadians derive sustainable social and economic benefits from the assessment, development and use of energy, forest and mineral resources, and have the knowledge to mitigate environmental impact and respond effectively to natural and man-made hazards.
6) Results Achieved: Measurement against the GeoConnections Logic Model outcome are dependent on public opinion research that will be undertaken in Fall 2008 and Fall 2009. Among the results achieved for the program to date (May 2, 2005 to March 31, 2008):
  • 72 single agency infrastructure applications were funded (23 projects in the environment / SD domain; 15 public safety projects; 11 projects relating to matters of importance to Aboriginal communities; 15 public health projects; and 8 projects common to all thematic areas. This number exceeds by 20% total number of single agency infrastructure applications targeted for all five years of GeoConnections.
  • 56 distributed thematic data sets closest to source were funded, compared to a target of 20 data sets for the program as a whole.

Overall funds invested by GeoConnections were leveraged at a rate of 1 : 2.21 in comparison to the program target of 1 : 1 funding leverage.

(in millions of $) 7) Actual Spending 2005–06 8) Actual Spending 2006–07 9) Planned Spending 2007–08 10) Total Authorities 2007–08 11) Actual Spending 2007–08 12) Variance(s) Between 9) and 11)
13) Program Activity: Earth Sciences
14) Total Grants            
14) Total Contributions 0.1 1.7 5.0 5.0 4.7 0.3
14) Total Other Types of TPs            
15) Total Program Activity            
16) Comment(s) on Variance(s):

Delay caused by M‑30 process; proponent work schedule delay; proponent signature delay due to legal issue negotiations.

17) Significant Evaluation Findings and URL(s) to Last Evaluation(s): An evaluation will be undertaken over summer 2008 and is expected to be completed by October 2008.
18) Significant Audit Findings and URL(s) to Last Audit(s): As a program with C‑base funding, GeoConnections anticipates an audit before the end of the program. However, nothing has been scheduled yet.

 


1) Name of Transfer Payment Program: Federal Response to the Mountain Pine Beetle Infestation
2) Start Date: 2006–2007 3) End Date: 2008–2009
4) Description: The purpose of the program is to slow the spread of the Mountain Pine Beetle (MPB), recover economic value from beetle-killed trees, and protect communities and forest resources in areas affected by the infestation.
5) Strategic Outcome(s): Canadians derive sustainable social and economic benefits from the assessment, development and use of energy, forest and mineral resources, and have the knowledge to mitigate environmental impacts and respond effectively to natural and man-made hazards.
6) Results Achieved:

In 2006–07, the Government of Canada announced the $200‑million Federal Response to the Mountain Pine Beetle Infestation program. Through this program, NRCan is working closely with provincial counterparts to deliver a comprehensive, integrated strategy to combat the beetle infestation. Additional information about this program can be found by visiting http://mpb.cfs.nrcan.gc.ca.

Slowing the Spread

The principal aim of the federal MPB program is to slow the eastward spread of the beetle outbreak. NRCan worked with scientists from B.C. and Alberta to complete a comprehensive assessment of the pine beetle threat to the boreal and eastern pine ecosystems. This assessment also delineated the spatial priorities for federal funding in beetle detection and control. In 2007–08, over 5.2 million hectares of pine forests were surveyed for active beetle infestation and over 53,000 infested trees were cut and burned. Beetle control activity on strategic areas of federal forestlands in the mountain national parks and the Dominion Coal Blocks was also completed to compliment spread control on provincial forestlands.

Recovering Economic Value

NRCan, working with B.C. survey agencies, initiated a suite of primary surveys to assess potential mineral and energy resources within the Bowser and Nechako Basins of the MPB zone in B.C. Working with national sector research institutes and universities, the program enabled the completion of timely studies on:

  • the "shelf-life" of beetle-killed timber;
  • how to overcome limitations in processing this timber; and
  • alternative uses for the massive volume of beetle-killed timber

Protecting Communities and Forest Resources

NRCan is also focusing its efforts on supporting community and forest resource sustainability after the beetle epidemic. The MPB impacts community safety through increased forest fire fuel loads and the number of dead hazard trees. During 2007–08, the federal MPB program funded 45 fuel reduction projects with 35 First Nations communities. The program also provided assistance to 11 non‑aboriginal communities and the B.C. school trustees in reducing fire safety threats. NRCan has assisted regional and local economic diversification efforts in tourism by funding the removal of more than 20,000 beetle-killed hazard trees at 175 designated recreational and hiking areas. Through the program, NRCan is funding a long‑term project at the University of Victoria to advance the use of remote sensing techniques and database development for forest disturbance detection and monitoring.

(in millions of $) 7) Actual Spending 2005–2006 8) Actual Spending 2006–2007 9) Planned Spending 2007–2008 10) Total Authorities 2007–2008 11) Actual Spending 2007–2008 12) Variance Between 10) and 11)
13) Program Activity: Sustainable Forest
14) Total Grants            
14) Total Contributions 0.0 24.8 75.3 30.8 30.8 0.0
14) Total Other Types of TPs            
15) Total Program Activity            
16) Comment(s) on Variance(s):
17) Significant Evaluation Findings and URL(s) to Last Evaluation(s):

http://www.nrcan.gc.ca/dmo/aeb/aeb-rpts-2007-EV0702-e.htm

18) Significant Audit Findings and URL(s) to Last Audit(s):

 


1) Name of Transfer Payment Program: Newfoundland and Labrador Fiscal Equalization Offset Payments
2) Start Date: 2002 3) End Date: Statutory
4) Description of Transfer Payment Program: To make payments to the province to compensate for part of the reduction in fiscal equalization entitlements that would result from offshore revenues being included in the equalization program.
5) Strategic Outcome: Canadians derive sustainable social and economic benefits from the assessment, development and use of energy, forest and mineral resources, and have the knowledge to mitigate environmental impacts and respond effectively to natural and man-made hazards.
6) Results Achieved: Payments were made to the province in accordance with the provisions of the Act.
(in millions of $) 7) Actual Spending 2005–2006 8) Actual Spending 2006–2007 9) Planned Spending 2007–2008 10) Total Authorities 2007–2008 11) Actual Spending 2007–2008 12) Variances
13) Program Activity: Energy
14) Total Grants            
14) Total Contributions 0.0 109.8 188.6 188.6 188.6 0.0
14) Total Other Transfer Payments            
15) Total PA            
16) Comments on Variances:
17) Significant audit and evaluation findings and URL to last audit and/or evaluation:

 


1) Name of Transfer Payment Program: Payments to the Newfoundland and Labrador Offshore Petroleum Resource Revenue Fund
2) Start Date: 1987 3) End Date: Statutory
4) Description of Transfer Payment Program: To make payments to the province equivalent to amounts received by Canada in relation to offshore activities in accordance with provisions of the Canada Newfoundland Atlantic Accord Implementation Act
5) Strategic Outcome: Canadians derive sustainable social and economic benefits from the assessment, development and use of energy, forest and mineral resources, and have the knowledge to mitigate environmental impacts and respond effectively to natural and man-made hazards.
6) Results Achieved: Payments were made to the province in accordance with the provisions of the Act.
(in millions of $) 7) Actual Spending 2005–06 8) Actual Spending 2006–07 9) Planned Spending 2007–08 10) Total Authorities 2007–08 11) Actual Spending 2007–08 12) Variances
13) Program Activity: Energy
14) Total Grants            
14) Total Contributions 427.7 313.4 1,740.5 1,701.1 1,701.1 0.0
14) Total Other Transfer Payments            
15) Total PA            
16) Comments on Variances:
17) Significant audit and evaluation findings and URL to last audit and/or evaluation:

 


1) Name of Transfer Payment Program: Payments to the Nova Scotia Offshore Revenue Account
2) Start Date: 1993 3) End Date: Statutory
4) Description of Transfer Payment Program: To make payments to the province equivalent to amounts received by Canada in relation to offshore activities in accordance with provisions of the Canada Nova Scotia Offshore Petroleum Resource Accord Implementation Act.
5) Strategic Outcome: Canadians derive sustainable social and economic benefits from the assessment, development and use of energy, forest and mineral resources, and have the knowledge to mitigate environmental impacts and respond effectively to natural and man-made hazards.
6) Results Achieved: Payments were made to the province in accordance with the provisions of the Act.
(in millions of $) 7) Actual Spending 2005–06 8) Actual Spending 2006–07 9) Planned Spending 2007–08 10) Total Authorities 2007–08 11) Actual Spending 2007–08 12) Variances
13) Program Activity: Energy
14) Total Grants            
14) Total Contributions 217.8 275.4 397.2 493.2 493.2 0.0
14) Total Other Transfer Payments            
15) Total PA            
16) Comments on Variances:
17) Significant audit and evaluation findings and URL to last audit and/or evaluation:

 


1) Name of Transfer Payment Program: Contributions in support of the Technology and Innovation Initiative
2) Start Date: October 10, 2003 3) End Date: March 31, 2008
4) Description of Transfer Payment Program: To contribute to the objectives of Canada's climate change agenda by reducing long-term greenhouse gas (GHG) emissions by means of longer-term advanced technologies and enhanced innovative capacity through research, development and demonstration.
5) Strategic Outcome: Canadians derive sustainable social and economic benefits from the assessment, development and use of energy, forest and mineral resources, and have the knowledge to mitigate environmental impacts and respond effectively to natural and man-made hazards.
6) Results Achieved:

Technology and Innovation Research and Development (T&I R&D) Component: Transfer payments are one of the tools used to perform R&D and comprised 20% of the total T&I R&D budget of $28M in 2007/08. Transfer Payments directly supported 69 of the 170 projects funded by T&I R&D for 2007–2008. Recipients included 14 universities across Canada, several provincial research organizations as well as a variety of research associations and private companies.

The funding of these projects directly supports T&I R&D in its five strategic priorities of: cleaner fossil fuels; advanced end-use efficiency; decentralized energy production; biotechnology; and the hydrogen economy. The following are some highlights of funding in 2007/08:

Area: Cleaner Fossil Fuels: NRCan in collaboration with the University of Calgary is the first to develop and apply hybrid lifecycle assessment techniques to current and developing oil sands projects to quantify GHG emissions, energy, water and land. This project is currently being adopted by industry and other stakeholders. Completion of an Economic Integrated Model in collaboration with the Alberta Research Council will provide estimation of CO2 capture, Transport and Injection cost and revenue in the Alberta coal seams for Enhanced Coal Bed Methane (CBM). The model will be used to assess and evaluate potential commercial projects as well as enhance awareness and acceptance of this technology by industry and government. Building on the achievements of 2006–07, NRCan, in collaboration with the Alberta Research Council, Alberta Newsprint Company, and the Alberta Energy Research Institute, further developed a potentially lower cost approach with industry and government partners of a micro-porous hollow fiber membrane module as gas-liquid contactor to achieve efficient low cost CO2 and SO2 capture from flue gas, natural gas, biogas, and for CBM and other applications. The estimated operational cost reduction is 25–30% compared to conventional technology.

Area: Advanced End-Use Efficiency: Research work in the transportation area has shown that GHG emissions factors currently in use substantially overestimate the GHG emission from light duty vehicles in Canada. Updated current Canadian data have been provided within a database tool developed with the University of Carleton to provide a simplified aggregation and quality control check of the data. NRCan CETC and Doug Tarry Homes Ltd. piloted a project called Solar Ready Homes which requires the builder to incorporate defined criteria into their construction designs and practices in order to accommodate solar hot water technology. The project is a first of its kind aimed at production builders as opposed to custom homes. Solar Ready in an ENERGY STAR home will enable the home owner to reduce their heating and hot water energy bills by as much as 40–50% compared to conventional homes currently built in Ontario. Numerous other builders are now interested in implementing the Solar Ready technology.

Area: Biotechnology: Collaboration with NRCan, Agriculture Canada, Environment Canada, industry and various municipalities has improved the quality of the information on biomass residues and their utilization. A database has been created on biomass supply and properties and emissions matrix for a mix of residues and conversion technologies. The information will allow growers to assess the optimal type of biomass conversion system required on greenhouse acreage and make better economical decisions.

Area: Decentralized Energy Production: Completed design and laboratory test on two turbine concepts for the fish friendly turbine project which is now ready for demonstration. The project team which includes partners from the Ontario Power Authority, Laval University, University of New Brunswick, Rapid-Eau Technologies and Norcan Hydraulic Turbine Inc. are now working on identifying sites for the demonstration of these concepts. Reduction in fish mortality in small turbines would remove an environmental barrier and reduce installation costs of small low head hydro. Real-time field testing of Environment Canada's wind forecasting system in collaboration with Hydro-Quebec has been running since May 1, 2007. The system has been providing 48 hour forecasting for all wind power plants in Quebec. The ability to better forecast wind energy would lead to better prices and lower penalties for producers and enable electricity system operations to better manage high wind penetration on the grid.

Area: Hydrogen: A five year development project with the University of Victoria to examine the feasibility of a hydrogen-based renewable-energy-powered residential cogeneration system for grid-connected houses is complete. The modelling software developed from this project has already been applied by the Canadian Space Agency to study autonomous green-houses on Devon Island.

Demonstration Component: During 2007/08, the T&I demonstration component, referred to as the Technology Early Action Measures (TEAM) program, disbursed $17.1M in contributions (G&Cs), providing funding to 30 demonstration projects, 11 of which were started in prior years, and 19 of which were started in-year. In total, 10 new clean energy demonstration projects were approved during the year, with a TEAM investment of $7.6M and a total project value of $33.8M. TEAM received Treasury Board approval for its Terms and Conditions to be extended for one additional year, namely 2008–09, in order to allow for the proper implementation of projects started in 2007–08. TEAM demonstration projects are typically multi-year, ranging from 1–3 years, therefore some of the new project funding will be disbursed over 2 years. As a result, TEAM received approval to transfer $5M allocated to 8 projects to the 2008–09 fiscal year. G&C contributions typically represent 90% or more of TEAM's annual budget, and are the primary means of funding clean technology demonstration projects. Since inception in 1998, TEAM has funded 140 clean energy demonstration projects, many of which are flagship NRCan projects. Total G&C disbursements to date are approximately $113M, and total project value exceeds $1.1B. The following are highlights of funding activities in 2007/08:

  • The 10 new projects approved during the year included the following: (1) Delta-Q Technologies Corp. is working with a major North American automotive OEM to demonstrate on-board battery charger systems for plug-in hybrid electric vehicles (PHEV's); (2) Ecologix Heating Technologies Inc. is demonstrating multi-zone forced air heating and cooling systems for homes; (3) Versus Goliath Project Solutions is demonstrating a remote sensing, monitoring and control system in 2 biogas generation projects in Argentina (wastewater treatment plant and landfill site); (4) TM4 Inc. is developing and demonstrating a new, lightweight, high efficiency generator for large wind turbines; (5) High Performance Energy Systems Inc. is demonstrating a highly innovative borehole thermal energy storage systems as part of a seawater cooling system to be installed in a building complex owned by the City of Halifax, NS; (6) The Solar Buildings Research Network is demonstrating combined solar heat and power co-generation using solar photovoltaic and thermal technologies in commercial and residential buildings; (7) Advanced Bio-Refinery Inc. is demonstrating a first-of-its-kind transportable pyrolysis system that turns biomass waste into bio-oil and char, which can be used as fuels; (8) Carmanah is demonstrating a solar-powered LED outdoor lighting system to be used by municipalities in parks, trails, on signs and other public infrastructure applications; (9) PyroGenesis Canada is demonstrating a plasma water resource recovery systems that turns waste into energy (electricity and heat) and other products; and (10) Thermal Energy Inc. is demonstrating a combined biomass dryer and heat-recovery system that can be used to dry biomass to displace fossil fuels in pulp & paper mills.
  • The following are some of the highlights of the demonstration projects, approved in prior years, and funded during 2007–08: Dockside Green is demonstrating a very innovative biomass energy system within a mixed use, LEED Platinum, sustainable green community in downtown Victoria, BC; Ice Kube is demonstrating a heat recovery system in two rinks, and using the excess heat for a district heating application in Bedford, NS; Vaperma Inc. completed its demonstration of an advanced membrane separation technology that reduces overall energy use in the production of fuel ethanol; Milligan Bio-Tech is demonstrating the production of bio-diesel using waste, off-spec canola seed; Enbridge Gas Distribution is demonstrating a highly innovative co-generation system that extracts energy from natural gas pipelines; Petroleum Technology Research Centre is leading an industrial consortium demonstrating novel solvent-based extraction methods that significantly reduce the GHG emission intensity and water usage in heavy oil extraction.
  • In 2007–08, TEAM continued to play a leading role in developing and providing internationally accepted standards (ISO) and tools, relating to the measurement and reporting of Greenhouse Gas emission reductions achieved in clean energy demonstration projects. In addition, TEAM continued its work in implementing qualitative assessments for air quality impacts from demonstration projects. TEAM also finalized a verification protocol to provide a method to audit GHG results; worked internationally to draft a guidance documentation for ISO standard 14065 on the accreditation of validation and verification bodies; and signed an MOU with the Standards Council of Canada for creating a national system for the accreditation of verification bodies and a professional certification scheme for GHG validators, verifiers, and consultants.
(in millions of $) 7) Actual Spending 2005–06 8) Actual Spending 2006–07 9) Planned Spending 2007–08 10) Total Authorities 2007–08 11) Actual Spending 2007–08 12) Variances
13) Program Activity: Energy
14) Total Grants            
14) Total Contributions 13.5 12.0 31.7 26.7 22.6 4.1
14) Total Other Transfer Payments            
15) Total PA            
16) Comments on Variances:

Demonstration component: The climate change review, change in government, and Treasury Board processes introduced a funding freeze in 2005–06 and 2006–07. As a result of this freeze, operations were significantly affected, resulting in reduced G&C disbursements in 2006–07, and resulting in larger G&C disbursements in 2007–08 ($17.1M) and 2008–09 ($5M).

17) Significant audit and evaluation findings and URL to last audit and/or evaluation: Evaluation of TEAM, as a component of the Climate Change Action Fund http://www2cm.nrcan.gc.ca/nrcan/index_e.aspx?DetailID=392; TEAM was also one of the programs evaluated in the Examination of Federal Energy & Environmental S&T Investment (completed in 2006–07). TEAM has been actively working with NRCan Audit & Evaluation Branch the new evaluations of Transportation & Built Environment that are being planning stages for 2008–09.

 


1) Name of Transfer Payment Program: Wind Power Production Incentive Contribution Program
2) Start Date: April 1, 2002 3) End Date: March 31, 2008
4) Description of Transfer Payment Program The WPPI Program was set up to help establish wind energy as a full-fledged competitor in the electricity market by providing – over a period of ten years – a financial incentive of about 1 cent per each kilowatt-hour produced from the installation of 1,000 MW of new wind power capacity in Canada by 2007. The Government of Canada is to provide – over a 10–year period – an incentive averaging 1 cent per each kilowatt-hour produced from a qualifying wind energy project.
5) Strategic Outcome: Canadians derive sustainable social and economic benefits from the assessment, development and use of energy, forest and mineral resources, and have the knowledge to mitigate environmental impacts and respond effectively to natural and man-made hazards.
6) Results Achieved: At year end, 22 wind farms were in operation representing 924 megawatts of new wind energy capacity in Canada and about $315 million in contribution funding over 14 years.
(in millions of $) 7) Actual Spending 2005–06 8) Actual Spending 2006–07 9) Planned Spending 2007–08 10) Total Authorities 2007–08 11) Actual Spending 2007–08 12) Variances
13) Program Activity: Energy
14) Total Grants            
14) Total Contributions 10.5 24.9 38.4 38.4 29.3 9.1
14) Total Other Transfer Payments            
15) Total PA            
16) Comments on Variances: Wind farms supported under the program had lower than expected production numbers resulting in lower payments to producers.
17) Significant audit and evaluation findings and URL to last audit and/or evaluation: