ARCHIVED - Transport Canada

Name of Transfer Payment Program: Grant to the Province of British Columbia for ferry and coastal freight and passenger services.

Start date: 1977

End date: ongoing

Description: The Province of British Columbia (BC) assumes the entire responsibility for the operation of ferry and coastal freight and passenger services.

Strategic Outcome: An efficient transportation system that contributes to Canada's economic growth and trade objectives.

Results Achieved: The grant allowed BC ferry service to continue to provide transportation of coastal freight and passengers.

($ thousands)	Actual Spending 2006-07	Actual Spending 2007-08	Planned Spending 2008-09	Total Authorities 2008-09	Actual Spending 2008-09	Variance(s) Between Planned & Actual Spending 2008-09
Program Activity	Policies, Programs and Infrastructure in support of a market-based framework		Transportation Policy Development and Infrastructure Programs
Total Grants	25,309	25,856	26,447	26,439	26,294	153
Total Contributions
Total Other types of transfer payments
Total Program Activity(ies)	25,309	25,856	26,447	26,439	26,294	153

Comment(s) on Variance(s): The planned spending was based on an estimate of the BC consumer price index. Actual spending reflects the actual consumer price index, which was lower than anticipated.

Audit completed or planned: Transport Canada did not conduct an internal audit of this contribution program in 2008-2009. There are currently no plans to do so under the 2009-10 to 2011-2012 fiscal year.

Name of Transfer Payment Program: Contribution for ferry and coastal passenger and freight services

Start date: 1941

End date: March 31, 2011

Description: Operating funding for three regional passenger and vehicle ferry services, CTMA Traversier Ltee; Northumberland Ferry Ltd.; and Bay Ferries Ltd.

Strategic Outcome: An efficient transportation system that contributes to Canada's economic growth and trade objectives.

Results Achieved: The services continued to provide transportation of freight and passengers in Atlantic Canada and Quebec. In addition, these services continued to support tourism and one continued to provide a link to a remote location.

($ thousands)	Actual Spending 2006-07	Actual Spending 2007-08	Planned Spending 2008-09	Total Authorities 2008-09	Actual Spending 2008-09	Variance(s) Between Planned & Actual Spending 2008-09
Program Activity	Policies, Programs and Infrastructure in support of a market-based framework		Transportation Policy Development and Infrastructure Programs
Total Grants
Total Contributions	11,493	13,345	11,243	16,181	16,056	( 4,813 )
Total Other types of transfer payments
Total Program Activity(ies)	11,493	13,345	11,243	16,181	16,056	( 4,813 )

Comment(s) on Variance(s): Actual spending was more than planned due to unforeseen maintenance costs (traffic decline and increase of fuel costs) as well as a contribution to a pilot project for one of the ferries to operate in winter months.

Audit completed or planned: Transport Canada did not conduct an internal audit of this contribution program in 2008-2009. There are currently no plans to do so under the 2009-10 / 2011-2012 fiscal year.

Name of Transfer Payment Program: Contributions to provinces toward highway improvements to enhance overall efficiency and promote safety while encouraging, industrial development and tourism from a regional economic perspective: Outaouais Road Development Agreement

Start date: January 17, 1972

End date: March 31, 2009

Description: Contributions to the Province of Quebec related to the Outaouais Roads Agreement toward highway improvements made to enhance overall efficiency and promote safety while encouraging regional and industrial development and tourism.

Strategic Outcome: An efficient transportation system that contributes to Canada's economic growth and trade objectives.

Results Achieved: Construction has started on Phase 1 of the extension of Highway 5 to prolong the divided highway while studies are underway for Phase 2. Two noise barriers projects - Maloney noise barrier and the St-Raymond noise barrier - were completed in 2008-2009. All of these projects contributed to enhance the safety and the efficiency of the Outaouais road network

($ thousands)	Actual Spending 2006-07	Actual Spending 2007-08	Planned Spending 2008-09	Total Authorities 2008-09	Actual Spending 2008-09	Variance(s) Between Planned & Actual Spending 2008-09
Program Activity	Policies, Programs and Infrastructure in support of a market-based framework		Transportation Policy Development and Infrastructure Programs
Total Grants	14,596	18,998	15,075	11,462	7,340	7,735
Total Contributions
Total Other types of transfer payments
Total Program Activity(ies)	14,596	18,998	15,075	11,462	7,340	7,735

Comment(s) on Variance(s): The Outaouais Road Agreement is a cost sharing agreement between the federal government and the province of Québec where the federal government funds up to 50% of eligible costs on infrastructure projects covered under this agreement. There is no funding ceiling to this agreement. Transport Canada ensures that expenditures, under this agreement cover only up to 50% of eligible costs.

In 2008-09, delays occurred in the completion of the studies for Phase 2 of Highway 5 due to a narrow right of way established in the 1980's. The project design will most likely result in an encroachment on adjacent federal lands. Further discussions and preparation of alternative options were required to minimize the encroachment.

Audit completed or planned: Transport Canada did not conduct an internal audit of this contribution program in 2008-2009. There are currently no plans to do so under the 2009-10 to 2011-2012 fiscal year.

Name of Transfer Payment Program: Gateways and Border Crossings Fund (GBCF)

Start date: February 7, 2008 (Treasury Board approval)

End date: March 31, 2014

Description: The GBCF aims to improve the flow of goods and people between Canada and the rest of the world and enhance infrastructure at key locations in order to advance the competitiveness of the Canadian economy.

Strategic Outcome: An efficient transportation system that contributes to Canada's economic growth and trade objectives.

Results Achieved: The Report on Plans and Priorities indicates that the GBCF will promote infrastructure and technology investments, such as Intelligent Transportation Systems, that enhance multi-modal integration of major transportation systems, as well as their efficiency, safety, security, and sustainability. In this context, GBCF achieved the following results:

• The majority of the $2.12 billion GBCF has been committed, and only $105 million (M) remains unencumbered.
• The federal government signed Memoranda of Understanding (MOU) with the respective provincial jurisdictions and is engaged with the Atlantic Provinces (Atlantic Gateway), Ontario Québec (Continental Gateway and Trade Corridor) in analytical and consultative processes to develop gateway strategies that will ensure informed infrastructure investment decisions in support of international trade and investment. A separate table has been established with the Western Provinces.
• The GBCF funded several studies and research to analyse the transportation network, identify other issues and opportunities, and look at future trade growth and patterns.
• Several significant projects have been announced for all three gateways, including projects to improve the Core National Highway System, enhance strategic border crossings, and improve key ports.
• Three contribution agreements and one MOU were signed in 2008-2009 for a total project commitment from Transport Canada of $154.5M dollars.

($ thousands)	Actual Spending 2006-07	Actual Spending 2007-08	Planned Spending 2008-09	Total Authorities 2008-09	Actual Spending 2008-09	Variance(s) Between Planned & Actual Spending 2008-09
Program Activity	Policies, Programs and Infrastructure in support of a market-based framework		Transportation Policy Development and Infrastructure Programs
Total Grants
Total Contributions	0	0	210,960	207,831	4,246	206,714
Total Other types of transfer payments
Total Program Activity(ies)	0	0	210,960	207,831	4,246	206,714

Comment(s) on Variance(s): $5M was transferred to Parks Canada in 08/09 through an MOU for a total project commitment of $100M dollars.

Transport Canada had estimated it would spend a total of $210,960,000 in FY 2008-2009, the first year of the GBCF. As the fiscal year progressed, it became clear that such an estimate would not be met. There are several related explanations for this variance.

Treasury Board (TB) approval for the implementation of the GBCF was not received until February 2008, later than originally scheduled. As a result, Transport Canada did not receive the funds for FY 2008-2009 until July 2008.

In a number of cases, for projects that were publicly announced (by the Prime Minister, the Minister of Transport, or other Government of Canada representatives), business cases were not received from the project proponents and thus contribution agreements or MOUs could not be signed in a timely fashion.

The 2008 federal election also precluded the Department from obtaining Treasury Board approval for funding of specific projects throughout much of Fall 2008.

Finally, in several other cases, work by proponents on approved projects slowed down and some of the planned contributions had to be reprofiled to future years.

Audit completed or planned: Transport Canada did not conduct an internal audit of this contribution program in 2008-2009. There are currently plans to do so under the 2009-10 to 2011-2012 fiscal year.

Name of Transfer Payment Program: Airports Capital Assistance Program

Start date: April 1, 1995

End date: March 31, 2010

Description: Airports Capital Assistance Program (ACAP) assists eligible applicants in financing capital projects related to safety, asset protection and operating cost reduction.

Strategic Outcome: An efficient transportation system that contributes to Canada's economic growth and trade objectives.

Results Achieved: In 2008/09, ACAP contributed to 50 safety-related airside projects at 41 eligible airports.

($ thousands)	Actual Spending 2006-07	Actual Spending 2007-08	Planned Spending 2008-09	Total Authorities 2008-09	Actual Spending 2008-09	Variance(s) Between Planned & Actual Spending 2008-09
Program Activity	Policies, Programs and Infrastructure in support of a market-based framework		Transportation Policy Development and Infrastructure Programs
Total Grants
Total Contributions	36,277	32,306	49,800	51,062	51,062	(1,262)
Total Other types of transfer payments
Total Program Activity(ies)	36,277	32,306	49,800	51,062	51,062	(1,262)

Comment(s) on Variance(s): Actual spending was more than planned due to multi-year projects that proceeded more quickly than expected.

Audit completed or planned: Transport Canada conducted an internal audit on ACAP in 2007. A copy of the report is available via the following link: http://www.tc.gc.ca/corporate-services/aas/audit/2006/1577-06-101/menu.htm

Name of Transfer Payment Program: Contribution Program for operating, capital and start-up funding requirement for Regional and Remote Passenger Rail Services

Start date: June 1, 2004

End date: March 31, 2010

Description: Provide operating funding for the regional and remote passenger rail services not provided by VIA Rail, for capital and start-up costs for regional and remote passenger rail services, and to address potential costs of transferring regional services.

Strategic Outcome: An efficient transportation system that contributes to Canada's economic growth and trade objectives.

Results Achieved: The contribution program allowed Keewatin Railway Company, Algoma Central Railway, Ontario Northland transportation Commission, and Tshiuetin Rail Transportation to continue to provide safe, reliable and sustainable passenger rail services.

($ thousands)	Actual Spending 2006-07	Actual Spending 2007-08	Planned Spending 2008-09	Total Authorities 2008-09	Actual Spending 2008-09	Variance(s) Between Planned & Actual Spending 2008-09
Program Activity	Policies, Programs and Infrastructure in support of a market-based framework		Transportation Policy Development and Infrastructure Programs
Total Grants
Total Contributions	13,080	12,437	5,600	16,514	16,514	(10,914)
Total Other types of transfer payments
Total Program Activity(ies)	13,080	12,437	5,600	16,514	16,514	(10,914)

Comment(s) on Variance(s): Funding of $5.6M was provided through the 2008-09 Main Estimates. However, it was not sufficient to maintain the network of regional and remote services and an additional $10.9M was received from Budget 2008 through Supplementary Estimates.

Audit completed or planned: Transport Canada completed an audit of this contribution program in 2003. The report can be found at the following link: http://www.tc.gc.ca/eng/corporate-services/aas-audit-2003-424.htm

Name of Transfer Payment Program: Northumberland Strait Crossing subsidy payment under the Northumberland Strait Crossing Act (Statutory)

Start date: May 31, 1997

End date: April 1, 2032

Description: Subsidy payments are made to bridge operator to honour constitutional obligations to provide a transportation link between Prince Edward Island and the mainland

Strategic Outcome: An efficient transportation system that contributes to Canada's economic growth and trade objectives.

Results Achieved: The subsidy payments allowed the bridge operator to continue to provide an efficient year-round transportation service between Prince Edward Island and the mainland.

($ thousands)	Actual Spending 2006-07	Actual Spending 2007-08	Planned Spending 2008-09	Total Authorities 2008-09	Actual Spending 2008-09	Variance(s) Between Planned & Actual Spending 2008-09
Program Activity	Policies, Programs and Infrastructure in support of a market-based framework		Transportation Policy Development and Infrastructure Programs
Total Grants
Total Contributions
Total Other types of transfer payments	54,265	54,897	54,897	56,066	56,066	(1,169)
Total Program Activity(ies)	54,265	54,897	54,897	56,066	56,066	(1,169)

Comment(s) on Variance(s): As per the Northumberland Strait Crossing Act, payments to Northumberland Strait Crossing are $41.9 million, adjusted annually for inflation in accordance with the Consumer Price Index.

The actual spending reflects the actual Consumer Price Index, which was more than originally anticipated.

Audit completed or planned: Transport Canada did not conduct an internal audit of this contribution program in 2008-2009. There are currently no plans to do so under the 2009-10 to 2011-2012 fiscal year.

Name of Transfer Payment Program: Asia-Pacific Gateway and Corridor Transportation Infrastructure Fund (TIF)

Start date: October 19, 2006

End date: March 31, 2014

Description: To establish the best transportation network facilitating global supply chains between Asia and North America. Transportation infrastructure investments to address near term capacity problems and build strategically for the future

Strategic Outcome: An efficient transportation system that contributes to Canada's economic growth and trade objectives.

Results Achieved: Transport Canada completed two infrastructure projects and four others are under construction. In addition, five Shortsea SHIPping projects and five North Shore Trade Area projects were announced. Three contribution agreements were also signed.

($ thousands)	Actual Spending 2006-07	Actual Spending 2007-08	Planned Spending 2008-09	Total Authorities 2008-09	Actual Spending 2008-09	Variance(s) Between Planned & Actual Spending 2008-09
Program Activity	Policies, Programs and Infrastructure in support of a market-based framework		Transportation Policy Development and Infrastructure Programs
Total Grants
Total Contributions	8,400	40,403	82,100	101,748	56,592	25,508
Total Other types of transfer payments
Total Program Activity(ies)	8,400	40,403	82,100	101,748	56,592	25,508

Comment(s) on Variance(s): A number of the TIF projects that were scheduled to advance this year were either delayed or moved to future years by proponents. In particular, though it is moving well, the South Fraser Perimeter Road did not advance as quickly as planned. Also the slow down in the economy caused a number of the private sector projects to be pushed into future years as the proponent's capital plans had to be readjusted.

Audit completed or planned: Transport Canada did not conduct an internal audit of this contribution program in 2008-2009.

Name of Transfer Payment Program: Port Divestiture Fund

Start date: April 1, 1996

End date: March 31, 2012

Description: Facilitate the divestiture process by providing a new owner with the resources to take over the port.

Strategic Outcome: An efficient transportation system that contributes to Canada's economic growth and trade objectives.

Results Achieved: As of March 31, 2009, Transport Canada had divested 471 of its original 549 ports (86% complete) and has saved taxpayers an estimated $531 million that would otherwise have been spent on the ports.

($ thousands)	Actual Spending 2006-07	Actual Spending 2007-08	Planned Spending 2008-09	Total Authorities 2008-09	Actual Spending 2008-09	Variance(s) Between Planned & Actual Spending 2008-09
Program Activity	Policies, Programs and Infrastructure in support of a market-based framework		Transportation Policy Development and Infrastructure Programs
Total Grants
Total Contributions	513	16,004	33,000	33,060	384	32,616
Total Other types of transfer payments
Total Program Activity(ies)	513	16,004	33,000	33,060	384	32,616

Comment(s) on Variance(s): Actual spending was less than planned because several significant port divestitures anticipated for 2008-09 were delayed to 2009-10.

Audit completed or planned: Audits of this program were completed in 2001, 2003 and 2004. While the 2001 report has been archived, the 2003 and 2004 reports are available via the following links: http://www.tc.gc.ca/corporate-services/aas/audit/2003/1577-03-026/menu.htm and http://www.tc.gc.ca/corporate-services/aas/audit/2003/1577-03-020/menu.htm. Transport Canada is currently conducting an audit that was started in 2009.

Name of Transfer Payment Program:

Strategic Highway Infrastructure Program (SHIP) - Highway Component

Strategic Highway Infrastructure Program - Border Crossing Transportation Initiative and
Transportation Planning and Modal Integration (TPMI) Initiative

Strategic Highway Infrastructure Program - Intelligent Transportation Systems Initiative

Start date: March 29, 2001

End date:

SHIP - Highway Component: extended until March 31, 2009.

SHIP - Border Crossing Transportation Initiative and Planning and Modal Integration (TPMI) Initiative: extended until March 31, 2010.

SHIP - Intelligent Transportation Systems Initiative: extended until March 31, 2010.

Description:

SHIP - Highway Component: Provide federal funding under cost-shared contribution agreements with provincial and territorial governments for highway improvement projects to address the needs of Canada's National Highway System.

SHIP - Border Crossing Transportation Initiative and TPMI Initiative: Provide federal funding under cost-shared contribution agreements with provincial, territorial, municipal governments and other partners to improve the access to land border crossings, mobility, modal integration and transportation efficiency.

SHIP - Intelligent Transportation Systems Initiative: Provide federal funding under cost-shared contribution agreements with provincial, territorial, municipal governments and other partners to enable the undertaking of the deployment of intelligent transportation systems.

Strategic Outcome: An efficient transportation system that contributes to Canada's economic growth and trade objectives.

Results Achieved:

Highway Component: As of March 31, 2009, Canada has completed 9 of the 10 Provincial SHIP agreements and all three of the Territorial Agreements. The SHIP program has seen over 70 projects completed across Canada under the $600M program.

Border Crossing Transportation Initiative and Transportation Planning and Modal Integration (TPMI) Initiative: As of March 31, 2009 all of the SHIP Border projects have been completed. Prior to final payment being made by Canada for a project, the recipient must submit a signed affidavit stating the project was completed as per Engineering guidelines. Once the Province of British Columbia submits its final affidavits, the remaining funds in the SHIP Border fund will be released and all funding will be disbursed.

Intelligent Transportation Systems Initiative: As of March 31, 2009, Transport Canada continues to collaborate with stakeholders in advancing the development and deployment of intelligent transportation systems. 23 projects were successfully concluded, including the implementation of 18 road weather information stations along the National Highway System; the implementation of technologies to provide road and traffic information for traveller information systems; and the implementation of technologies to increase efficiencies for commercial vehicles at roadside inspection stations.

($ thousands)	Actual Spending 2006-07	Actual Spending 2007-08	Planned Spending 2008-09	Total Authorities 2008-09	Actual Spending 2008-09	Variance(s) Between Planned & Actual Spending 2008-09
Program Activity	Policies, Programs and Infrastructure in support of a market-based framework		Transportation Policy Development and Infrastructure Programs
Total Grants
Total Contributions	80,407	19,755	2,287	17,805	15,907	(13,620)
Total Other types of transfer payments
Total Program Activity(ies)	80,407	19,755	2,287	17,805	15,907	(13,620)

Comment(s) on Variance(s): Funding of $2.287M was provided through the 2008-09 Main Estimates. However, subsequent funding was provided through Supplementary Estimates for two components: the SHIP Border Crossing Transportation Initiative and Planning and Modal Integration (TPMI) Initiative, and the SHIP Intelligent Transportation Systems Initiative.

The SHIP Intelligent Transportation Systems Initiative spent less than planned due to the delays associated with the construction of the projects (weather, industry's capacity, timing of activities) and, to a lesser extent, to delays in the provincial and federal approval process of the projects (provincial capital planning and available funding, environmental assessment process, permits, etc) required prior to construction start.

Audit completed or planned: Transport Canada completed an audit of this contribution program in 2008-2009 that was approved by the Audit and Review Committee in May 2009. Posting of the report on the internet is pending.

Name of Transfer Payment Program: Action Plan 2000 for Climate Change - Urban Transportation Showcase Program (UTSP)

Start date: June 21, 2001

End date: March 31 st, 2009

Description: To test and measure the impacts of strategies to reduce urban greenhouse gas (GHG) emissions from transportation, so as to lay a foundation for the adoption of effective, integrated GHG reduction strategies in urban centres across Canada by 2010.

Strategic Outcome: An environmentally responsible transportation system that contributes to Canada's sustainable development objectives.

Results Achieved: The showcase component of UTSP, which aims to demonstrate, measure and monitor the effectiveness of a range of integrated urban GHG reduction strategies, began analysis of the final results for the Halifax, Whitehorse, and Toronto showcases. Preliminary results from Halifax show a thirty percent modal shift from cars to the new transit service that will provide a two kiltotonne per year reduction in GHG emissions. In Toronto, there was a reported 17,500 tonne reduction in GHG emissions and the development of a strong regional partnership of organizations, businesses, governments and others dedicated to making commuting more sustainable. Whitehorse final project results include an estimated GHG reduction of ninety tonnes from elements of the project that were measurable; as well, the municipality is now replicating project elements in forthcoming municipal infrastructure work.

Implementation of showcase activities in the following five municipalities, Region of Waterloo, Vancouver, Winnipeg, Gatineau-Montreal, and Quebec City were completed as of March 31, 2009. However, measurement and compiling of results is ongoing for these showcase municipalities. Progress reports indicated that these showcase municipalities are reaching their objectives to change travel behaviour, foster replication, and innovate in the delivering of urban transportation infrastructure and services. All proponents cite the involvement of Transport Canada as a critical factor in implementing the projects.

The second component of UTSP is the Information Network, which focuses on information transfer in order to drive replication of effective sustainable transportation strategies. Results in 2008/2009 for the Information Network include:

• The development of thirteen case studies and issue papers, as well as four case study updates, that highlight sustainable transportation strategies and issues;
• Creation of a bike-sharing guide that will aid Canadian municipalities in determining the feasibility of a bike sharing system and how to implement one;
• Supported two awards programs: The Transportation Association of Canada's Sustainable Urban Transportation Award and The Federation of Canadian Municipalities' Sustainable Transportation Award;
• Sponsored fifteen sustainable transportation workshops and conference sessions across Canada in collaboration with federal departments, sector associations, and non-profit groups that were attended by over nine hundred targeted stakeholders.
• Undertook an extensive upgrade to the Urban Transportation Emissions Calculator (UTEC), allowing municipalities to more accurately measure GHG and CAC emissions from transportation projects;
• Upgraded the UTSP website in order to comply with CLF 2.0 requirements; a major task owing to the fact the website is over four thousand pages in size;
• Developed and hosted four webinars that shared information with over three hundred transportation practitioners on effective sustainable transportation initiatives;
• Hosted a workshop for UTSP showcase proponents that enabled information sharing on project implementation; and
• Produced an annual report that summarized UTSP activities, which is available at: http://www.tc.gc.ca/utsp/

($ thousands)	Actual Spending 2006-07	Actual Spending 2007-08	Planned Spending 2008-09	Total Authorities 2008-09	Actual Spending 2008-09	Variance(s) Between Planned & Actual Spending 2008-09
Program Activity	Policies and Programs in support of sustainable transportation		Sustainable Transportation Development and the Environment
Total Grants
Total Contributions	3,841	6,687	5,043	8,383	7,969	( 2,926 )
Total Other types of transfer payments
Total Program Activity(ies)	3,841	6,687	5,043	8,383	7,969	( 2,926 )

Comment(s) on Variance(s): Supplementary Estimates (A: $527,000; B:$2,195,000; C:$390,912) and internal cash flow of $227,457 were approved after the Main Estimates for a Total Authorities of $8,383,000. This resulted in an adjusted variance or surplus of $414,000 due to one proponent who significantly reduced the scope of its project.

Audit completed or planned: Transport Canada is currently conducting an audit of the Urban Transportation Showcase Program.

Name of Transfer Payment Program: ecotransport Strategy

Start date: April 1, 2007

End date: March 31^st, 2011

Description: The ecotransport Strategy involves a series of initiatives designed to reduce the amount of fuel consumed, improve transportation efficiency and introduce cleaner transportation technologies. Launched as part of the Government's Environmental Agenda, this strategy features the ecomobility program; the ecotechnology for Vehicles Program and the ecoenergy for Personal Vehicles Program; and the ecofreight program. The ecoAUTO Rebate Program was introduced separately but is complementary to the programs for personal vehicles.

• The ecomobility program is a $10 million initiative that seeks to work with municipalities to help cut urban-passenger transportation emissions by encouraging commuters to choose public transit or other sustainable transportation options. Working with cities across Canada, this initiative will help develop programs, services and products that improve sustainable transportation options in urban areas.
• The ecotechnology for Vehicles Program includes in-depth testing and showcasing of advanced technologies vehicles in order to raise awareness and foster important new partnerships with the automotive industry and encourage the introduction of a broader range of environmental technologies in Canada. The ecoenergy for Personal Vehicles Program, delivered by NRCan will provide fuel consumption information and decision-making tools to encourage consumers to purchase fuel-efficient vehicles that are currently available in the market. Together these two programs have a combined funding of $36 million.
• The ecofreight program, with $61 million in funding, features new steps to reduce the environmental and health effects of freight transportation through technology and will be delivered by Transport Canada and Natural Resources Canada (NRCan). These steps include addressing regulatory barriers, reducing fuel use and emissions, establishing a Freight Technology Demonstration Fund, providing cost-shared funding for the purchase and installation of proven technologies, building industry partnerships, and supporting up to four pilot projects to demonstrate the installation and use of shore-based power for marine vessels in Canadian ports.
• The ecoAUTO Rebate Program is a $264 million program to provide performance-based rebates to consumers who purchase fuel-efficient vehicles. It requires eligible vehicles to meet a performance standard or fuel consumption rating. This is intended as an interim measure to increase consumer purchases of more efficient advanced technology vehicles before the new fuel-efficiency standards take effect with model year 2011.

Strategic Outcome: An environmentally responsible transportation system that contributes to Canada's sustainable development objectives.

Results Achieved *: Financial incentives and assistance were provided to members of the transport sector to increase uptake of emission-reducing technologies. In 2008-2009, over 116,000 ecoAUTO Rebate applications were processed, and almost $120 million was distributed to eligible applicants. Six projects, which will receive funding of about $2 million, continue to be implemented under the Freight Technology Demonstration Fund, and an additional nine projects for $3.5 million in funding were selected in January, 2009 and are underway. The two rounds of funding under the Freight Technology Demonstration Fund have allowed an uptake of 1254 pieces of emerging technology equipment across four modes of transportation. Similarly, fifteen projects with funding of $3.7 million are underway under the Freight Technology Incentives Program, and an additional 17 projects, with funding of $3.8 million, were selected in February, 2009. The two rounds of funding under the Freight Technology Incentives Program have allowed an uptake of 1654 pieces of proven technology equipment. Under the ecomobility Program, 14 projects worth $3 million were selected, of which three contribution agreements were signed in 2008-2009 and the remainder are under negotiation; proposals for a second round of funding were received on May 1, 2009. Following a competitive process, the Port Metro Vancouver was awarded $3 million in funding (including $2M under the Marine Shore Power Program and $1M under the Western Economic Diversification) to implement marine shore power at Canada Place - the first such initiative in Canada and the third in the world.

* The financial and non-financial results includes Transport Canada's program only

($ thousands)	Actual Spending 2006-07	Actual Spending 2007-08	Planned Spending 2008-09	Total Authorities 2008-09	Actual Spending 2008-09	Variance(s) Between Planned & Actual Spending 2008-09
Program Activity	Policies, Programs in support of Sustainable Development		Sustainable Development and the Environment
Total Grants	0	71,342	100,200	168,758	119,864	(19,664)
Total Contributions	0	0	11,569	11,669	5,805	5,764
Total Other types of transfer payments
Total Program Activity(ies)	0	71,342	111,769	180,427	125,669	(13,900)

Comment(s) on Variance(s): Supplementary Estimates of $75,558,000 and other authorities of $7,000,000 were approved for a ‘Total Authorities' of $168,758,000 resulting in an adjusted variance of $48,894,000 due to lower application intake due in part, to a downturn in the economy resulting in fewer automobile purchases. Variance was due to downturn in the economy resulted in fewer automobile purchases and lower ecoAuto rebate applications.

Supplementary Estimates of $4,660,820 and other authorities of $1,103,000 were approved for a ‘Total Authorities' of 11,669,000 resulting in an adjusted variance of $1,203,749. Variance was due to time required to establish programs' structure (staffing, developing guidelines and forms, initiating outreach activities); delays in acquiring vehicle technology to be tested; and late reprofiling not reflected in the above.

Audit completed or planned: Transport Canada did not conduct an internal audit of this contribution program in 2008-2009. There are currently no plans to do so under the 2009-10 to 2011-2012 fiscal year.

Name of Transfer Payment Program: Divestiture of St-Romuald

Start date:

End date: March 31, 2009

Description: Divestiture of St-Romuald Marine Emergency Duties Training Assets to the Province of Quebec.

Strategic Outcome: A safe and secure transportation system that contributes to Canada's social development and security objectives.

Results Achieved: Lump-sum contribution of $6,300,000 was provided to the province of Quebec, allowing it to continue to provide Marine Emergency Duties training in French in the foreseeable future. Seafarers wishing to be trained in the French language will receive the necessary training to obtain a recognized level of proficiency in marine emergency duties practices and procedures, thereby contributing to the safety on our waters. The program will also attract and qualify Canadian seafarers thereby increasing the number of francophone seafarers in the Canadian marine industry.

The divestiture will allow the Department to focus on the policy and regulatory framework while the Province assumes responsibility for the continued provision of MED training in the French language for the next 25 years.

($ thousands)	Actual Spending 2006-07	Actual Spending 2007-08	Planned Spending 2008-09	Total Authorities 2008-09	Actual Spending 2008-09	Variance(s) Between Planned & Actual Spending 2008-09
Program Activity			Transportation Safety and Security
Total Grants
Total Contributions	0	0	0	6,300	6,300	(6,300)
Total Other types of transfer payments
Total Program Activity(ies)	0	0	0	6,300	6,300	(6,300)

Comment(s) on Variance(s): No funding was provided through the 2008-09 Main Estimates. However, Transport Canada subsequently received funding of $6.3M in fiscal year 2008-09 through Supplementary Estimates to support the St-Romuald Contribution Program.

Note: In December 2008, the Minister provided an approval in principle to continue consultations with the Province of Quebec on the divestitutre of St-Romuald within the context of a supplemented offer of contribution not to exceed $6.3M for the divestiture of St-Romuald training facility and related assets in fiscal year 2008-09. Although the province of Quebec signed an agreement in principle on March 27, 2009 for $6.3M, the signature on the final agreement is pending.

Audit completed or planned: Transport Canada did not conduct an internal audit of this contribution program in 2008-2009.

Name of Transfer Payment Program: Grade Crossing Improvement Contribution Program (approved under Railway Safety Act)

Start date: 1989

End date: Ongoing

Description: Payments made to railway companies and municipalities to improve the safety at public road/railway grade crossings.

Strategic Outcome: A safe and secure transportation system that contributes to Canada's social development and security objectives.

Results Achieved: Since 1989, over $100 million has been spent by Transport Canada to fund improvements at public road/railway grade crossings across Canada, under federal jurisdiction. It is conservatively estimated that the program is responsible for 53% of the reduction in collisions at grade crossings.

In 2008-09, 143 grade crossing improvement projects were funded through this program to enhance the safety of Canada's road/railway system. Examples of project improvements included the installation of flashing lights, bells and gates; the interconnection of crossing signals to nearby highway traffic signals; the modification of operating circuits within automatic warning systems; the improvement of roadway alignment or grades.

($ thousands)	Actual Spending 2006-07	Actual Spending 2007-08	Planned Spending 2008-09	Total Authorities 2008-09	Actual Spending 2008-09	Variance(s) Between Planned & Actual Spending 2008-09
Program Activity	Policies, Rulemaking, Monitoring and Outreach in support of a safe and secure transportation system		Transportation Safety and Security
Total Grants	140	155	300	120	120	180
Total Contributions	3,505	7,280	7,145	7,325	7,315	(170)
Total Other types of transfer payments
Total Program Activity(ies)	3,645	7,435	7,445	7,445	7,435	10

Comment(s) on Variance(s): Actual spending of grants was less than planned primarily due to a decrease in the number of applications received under the grant program to close crossings and the remainder was transferred to the contribution program to improve crossings.

Actual spending of contributions was more than planned primarily due to an increase in the number of projects funded and the remainder was due to cash flow management.

Audit completed or planned: An audit of the Grade Crossing Review Program was completed in November 2001. The report has been archived. There are currently no plans to do an audit during the 2009-10 to 2011-2012 fiscal years.

Name of Transfer Payment Program: Marine Security Contribution Program

Start date: December 1, 2004

End date: November 30, 2009

Description: Financial assistance to aid in the speedy implementation of security measures and to help offset the costs of operators who would not have the financial capacity to cover security costs without significantly affecting operating costs.

Strategic Outcome: A safe and secure transportation system that contributes to Canada's social development and security objectives

Results Achieved:

• Transport Canada has continued to provide financial contributions towards marine security enhancements
• All funded projects are inspected by Transport Canada Regional Security Inspectors to verify that projects have been completed
• The program has contribution agreements that have been signed or are pending totalling $103.1M.

($ thousands)	Actual Spending 2006-07	Actual Spending 2007-08	Planned Spending 2008-09	Total Authorities 2008-09	Actual Spending 2008-09	Variance(s) Between Planned & Actual Spending 2008-09
Program Activity	Policies, Rulemaking, Monitoring and Outreach in support of a safe and secure transportation system		Transportation Safety and Security
Total Grants
Total Contributions	12,559	30,806	28,046	15,300	7,826	20,220
Total Other types of transfer payments
Total Program Activity(ies)	12,559	30,806	28,046	15,300	7,826	20,220

Comment(s) on Variance(s): Transport Canada received $28M through the Main Estimates. However, due to program requirements funding was re-profiled to 2009-2010. In addition, $2.5 million was part of the department's Strategic Review commitments. Actual spending reflects total authorities provided.

Audit completed or planned: Transport Canada is currently conducting an audit of the Marine Security Contribution Program. The final report is scheduled to be released in 2009.

Name of Transfer Payment Program: Passenger Rail and Urban Transit Security Contribution Program (Transit - Secure)

Start date: June 22, 2006

End date: March 31, 2009

Description: The program is designed to enhance the security of Canada's passenger rail and urban transit system by providing incentives to operators of passenger rail and urban transit services to implement new and enhanced security measures rapidly.

Strategic Outcome: A safe and secure transportation system that contributes to Canada's social development and security objectives.

Results Achieved:

• Passenger rail and urban transit security in Canada was enhanced through the completion of 130 security projects. This program helped passenger rail and urban transit operators make improvements to the security of their operations (e.g. enhanced physical security and access controls, employee training, public awareness campaigns and increased domain awareness).
• In completing these projects, passenger rail and urban transit operators made extensive use of guidelines, technical advice (from Transport Canada Security Inspectors) and best practices (as shared at Surface and Intermodal Security Conferences) made available through the program.
• Security enhancements undertaken by this program have enhanced the ability of Canadian passenger rail and urban transit operators to prevent, mitigate, respond to and recover from terrorist attacks.

($ thousands)	Actual Spending 2006-07	Actual Spending 2007-08	Planned Spending 2008-09	Total Authorities 2008-09	Actual Spending 2008-09	Variance(s) Between Planned & Actual Spending 2008-09
Program Activity	Policies, Rulemaking, Monitoring and Outreach in support of a safe and secure transportation system		Transportation Safety and Security
Total Grants
Total Contributions	0	8,077	61,400	69,400	58,894	2,506
Total Other types of transfer payments
Total Program Activity(ies)	0	8,077	61,400	69,400	58,894	2,506

Comment(s) on Variance(s):

Total spending was less than planned primarily because operators had some significant difficulties (e.g. securing heritage approvals, Ottawa bus strike, labour shortages) in completing projects, running up to the program completion date. Most of these challenges were successfully addressed by operators and projects were completed, however, they did result in under expenditures.

Audit completed or planned: Transport Canada conducted an Audit of Rail and Urban Transit Security Contribution in 2008-2009 that was approved by the Audit and Review Committee in May 2009. Posting of the report on the internet is pending.

Name of Transfer Payment Program: Airports Policing Contribution Program

Start date: April 2008

End date: Ongoing

Description: The Program was established in 2002 under the responsibility of the Canadian Air Transport Security Authority (CATSA). In 2007, a decision was made to transfer the program to Transport Canada. The program was created to assist eligible, designated airports in financing the heightened cost of security-related policing in accordance with Transport Canada's regulated security measures.

Strategic Outcome: A safe and secure transportation system that contributes to Canada's social development and security objectives

Results Achieved:

• Performance data from airports indicates an effective armed police officer response to alarms at screening checkpoints and restricted area access points.
• The 2008-09 data will be used as a reference point for future assessments.

($ thousands)	Actual Spending 2006-07	Actual Spending 2007-08	Planned Spending 2008-09	Total Authorities 2008-09	Actual Spending 2008-09	Variance(s) Between Planned & Actual Spending 2008-09
Program Activity	Policies, Rulemaking, Monitoring and Outreach in support of a safe and secure transportation system		Transportation Safety and Security
Total Grants
Total Contributions	0	0	15,645	15,621	14,216	1,429
Total Other types of transfer payments
Total Program Activity(ies)	0	0	15,645	15,621	14,216	1,429

Comment(s) on Variance(s): When the program was transferred from the Canadian Air Transport Security Authority to Transport Canada in 2008-09, the original funding allocation of $14,307,960 was maintained. A re-examination of the funding allocation was envisioned to assess how best to distribute the remaining $1,337,400 that was lapsed annually. However, this did not occur because the remaining amount was cut in the Budget 2009 announcement to phase out the program to certain recipients. The remaining variance is due to eligible costs for some recipients being lower than expected.

Audit completed or planned: Transport Canada did not conduct an internal audit of this contribution program in 2008-2009. There are currently no plans to do so under the 2009-10 to 2011-2012 fiscal year.

Name of Transfer Payment Program: Contribution to NAV Canada to support security for the 2010 Winter Olympic games

Start date: June 23, 2008

End date: June 30, 2010

Description: NAV Canada Olympic Security Contribution Program provides financial assistance to NAV Canada for systems and services to ensure the safe movement of security aircraft in the Sea-to-Sky corridor and to ensure aviation domain awareness and control of restricted airspace during the 2010 Winter Olympics.

Strategic Outcome: A safe and secure transportation system that contributes to Canada's social development and security objectives

Results Achieved:

• Installation of Multi-lateration equipment in the Sea-to-Sky corridor
• Provision and installation of new Vancouver area control centre (ACC) controlled VHF radio frequencies to allow for communications capability in the Sea-to-Sky corridor
• Provision and installation of Aviation Security Operations Command Centre positions and related data feeds at the RCMP Integrated Security Unit
• Provision and installation of new ACC controlled VHF radio frequencies to allow for communications capability around the Vancouver Airport with civilian and DND aircrafts

($ thousands)	Actual Spending 2006-07	Actual Spending 2007-08	Planned Spending 2008-09	Total Authorities 2008-09	Actual Spending 2008-09	Variance(s) Between Planned & Actual Spending 2008-09
Program Activity	Policies, Rulemaking, Monitoring and Outreach in support of a safe and secure transportation system		Transportation Safety and Security
Total Grants
Total Contributions	0	0	0	6,600	6,600	(6,600)
Total Other types of transfer payments
Total Program Activity(ies)	0	0	0	6,600	6,600	(6,600)

Comment(s) on Variance(s): No funding was provided through the 2008-09 Main Estimates. However, Transport Canada subsequently received funding of $6.6M in fiscal year 2008-09 through Supplementary Estimates to support the Program.

Audit completed or planned: Transport Canada did not conduct an internal audit of this contribution program in 2008-2009.