Section I - Overview

Minister’s Message

As Minister of Natural Resources, I am pleased to present the 2013-14 Report on Plans and Priorities for Natural Resources Canada (NRCan).

The natural resource sectors continue to underpin Canada’s economy, and they remain the cornerstone of our future prosperity. Collectively, the energy, mining and forest sectors directly and indirectly account for more than 1.6 million jobs in communities across the country and support close to 20% of Canada’s nominal gross domestic product.

Canada has an unprecedented opportunity: over the next 10 years, as much as $650 billion could be invested in more than 600 major resource projects that are underway or planned in Canada. To capitalize on these opportunities, our Government’s plan for Responsible Resource Development will ensure Canada’s regulatory regime for major projects is among the most efficient, effective and competitive in the world. It will place beginning-to-end time limits on environmental assessments, eliminate unnecessary duplication, strengthen environmental protection and improve consultation with Aboriginal peoples. These changes will provide greater certainty for investors while strengthening Canada’s world-class environmental standards.

Our nation’s prosperity depends on expanding and diversifying markets for energy, mineral and forest products and innovative supporting technologies, particularly to fast-growing economies in the Asia-Pacific region. Accordingly, we are working with partners to support infrastructure development, reduce market access barriers, and brand Canada as a reliable and responsible supplier of resources.

Recognizing the fundamental importance of innovation to the productivity, environmental performance and competitiveness of the natural resource sectors, we will continue to advance new processes and technologies with partners in areas such as unconventional oil and gas, lightweight materials for transportation, green mining and energy efficiency.

To further the continued safety and security of Canada and Canadians, NRCan will also work with partners to prepare for and manage resource-related threats and emergencies, such as forest pests and forest fires, as well as natural hazards such as earthquakes.

We have a tremendous opportunity to capitalize on Canada’s natural resources and their future potential. NRCan is working to help us seize this opportunity.

Section I: Organizational Overview

Raison d’être

NRCan’s vision is to improve the quality of life of Canadians by creating a sustainable resource advantage. It seeks to achieve this vision by working to improve the competitiveness of the natural resource sectors and to grow their contribution to Canada’s economy; by supporting the sustainable development of Canada’s resources in a manner that advances the country’s global standing as a leader on the environment; and by using its knowledge and expertise of Canada’s landmass to support the safety and security of citizens.

Responsibilities

The Minister of Natural Resources is specifically responsible for or has responsibilities under more than 30 Acts of Parliament ¹. The Minister’s core powers, duties and functions are set forth in the Department of Natural Resources Act ², the Resources and Technical Surveys Act ³ and the Forestry Act ⁴. NRCan also works in areas of shared responsibility with the provinces.

Within the Government of Canada, the Minister of Natural Resources also has responsibilities for the Natural Resources portfolio ⁵, which includes:

• Atomic Energy of Canada Limited ⁶ (AECL);
• National Energy Board ⁷ (NEB);
• Canadian Nuclear Safety Commission ⁸ (CNSC);
• Canada-Newfoundland and Labrador Offshore Petroleum Board ⁹ (CNLOPB);
• Canada-Nova Scotia Offshore Petroleum Board ¹⁰ (CNSOPB);
• Northern Pipeline Agency ¹¹(NPA),
• Sustainable Development Technology Canada ¹² (SDTC), and
• Energy Supplies Allocation Board ¹³ (ESAB) (inactive).

To deliver on its responsibilities, NRCan relies on a number of instruments. It uses science and technology (S&T) to help address priorities and plan for the future. It develops policies, programs, and regulations that help create a sustainable resource advantage, supporting strong, competitive natural resource sectors that are environmentally and socially responsible. And it uses partnerships and international collaboration to help drive progress on natural resource issues important to Canadians. More broadly, the Department plays a critical role in Canada’s future, contributing to high-paying jobs, business investment and overall economic growth in Canada’s natural resource sectors.

Strategic Outcomes and Program Alignment Architecture

The diagram below presents NRCan’s expected results and programs for 2013-14, commonly referred to as the Program Alignment Architecture. Through its programs, NRCan supports the achievement of three Government of Canada outcomes: Strong Economic Growth, A Clean and Healthy Environment, and A Safe and Secure Canada. NRCan’s Program Alignment Architecture for 2013-14 showcases its contribution to Canada and Canadians and demonstrates how it will achieve its results.

Text Version

2013-14 Program Alignment Architecture Natural Resources Canada

1. Canada’s Natural Resource Sectors are Globally Competitive

1.1 Market Access and Diversification
1.1.1 Mineral and Metal Markets Access and Development
1.1.2 Forest Products Market Access and Development
1.1.3 Energy Market Regulation and Information

1.2 Innovation for New Products and Processes
1.2.1 Mining Innovation
1.2.2 Forest Sector Innovation
1.2.3 Geomatics Innovation

1.3 Investment in Natural Resource Sectors
1.3.1 Mineral Investment
1.3.2 Forest-based Community Partnerships
1.3.3 Targeted Geoscience Initiative 4 (TGI4)
1.3.4 Geo-mapping for Energy and Minerals
1.3.5 New Energy Supply
1.3.6 Major Projects Management Office Initiative

1.4 Statutory Programs –Atlantic Offshore

2. Natural Resource Sectors and Consumers are Environmentally Responsible

2.1 Energy-efficient Practices and Lower-carbon Energy Sources
2.1.1 Renewable Energy Deployment
2.1.2 Support for Clean Energy Decision-making
2.1.3 Alternative Transportation Fuels
2.1.4 Energy Efficiency

2.2 Technology Innovation

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

2.3 Responsible Natural Resource Management
2.3.1 Forest Ecosystem Science and Application
2.3.2 Groundwater Geoscience
2.3.3 Environmental Studies and Assessments
2.3.4 Radioactive Waste Management
2.3.5 Earth Observations for Responsible Development of Natural Resources

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

3.1 Protection for Canadians and Natural Resources
3.1.1 Explosives Safety and Security
3.1.2 Materials and Certification for Safety and Security
3.1.3 Forest Disturbances Science and Application
3.1.4 Climate Change Adaptation
3.1.5 Geohazards and Public Safety

3.2 Landmass Information
3.2.1 Essential Geographic Information
3.2.2 Canada’s Legal Boundaries
3.2.3 Polar Continental Shelf Logistics Support

4.1 Internal Services
4.1.1 Governance and Management Support
4.1.2 Resource Management Services
4.1.3 Asset Management Services

Organizational Priorities

Last year, NRCan identified five priorities as critical to meeting its Strategic Outcomes and supporting the Government of Canada’s priorities. These priorities have guided, and will continue to guide, the Department. NRCan’s success in delivering on each priority will be assessed in the corresponding Departmental Performance Report. Details on each of the priorities and the plans for achieving them are presented below.

Risk Analysis

As a large and diverse organization, NRCan prepares for and manages a wide range of risks. The Department’s approach to risk management is outlined in its Integrated Risk Management Policy Framework, which is based on the recognition that a solid understanding of the risk environment is fundamental to achieving its Strategic Outcomes. High-level strategic and operational risks are presented in NRCan’s Corporate Risk Profile (CRP), which is monitored and updated regularly. Risk identification is a key part of NRCan’s planning process, and risks are important drivers in the establishment of priorities for the Department.

The Department’s priorities respond to specific risks. In 2013-14, NRCan will be managing key risks to the natural resource sectors and Canadians on behalf of the Government of Canada.

Important risks include:

• adapting to shifting demand for natural resources, particularly energy, in traditional markets (US and European Union). To address this risk, NRCan places a high priority on efforts to diversify global markets for Canada’s energy sector, specifically to fast-growing Asia-Pacific economies, supported by the Government’s plan for Responsible Resource Development and other measures to enable timely and safe development of resources and related infrastructure.
• major industrial incidents, forest fires and earthquakes. The Department will continue to mitigate the impacts of these risks, supporting the safety and security of Canadians through timely and accessible information on Canada’s natural resources and landmass to be used by the public and stakeholders to prepare for and respond to emergencies.
• operational risks associated with high-profile programs, (e.g., large grants and contributions programs) and an aging workforce and capital asset base. The Integrated Business Plan, the Talent Management Strategy and the Investment Plan, among others, help to minimize such risks.

NRCan will continue to ensure that its resources are allocated where most needed based on thorough risk assessment and comprehensive integrated planning. Implementation of Budget 2012 measures, including the reduction of NRCan’s workforce, will continue to be done through careful, deliberate, integrated planning, while ensuring that employees are treated in an equitable, transparent and respectful manner.

Planning Summary

NRCan’s Strategic Outcomes and Program Alignment Architecture (PAA) for 2013-14 showcase its contribution to Canada and Canadians and how it measures results. The financial information related to fiscal year 2013-14 is presented according to that year’s PAA.

* Note: Actual Spending for 2010-11 and 2011-12

NRCan changed its Program Alignment Architecture (PAA) for 2012-13. Actual spending for 2010-11 and 2011-12 reflects the legacy PAA structure, for which there were two programs under Strategic Outcome 1 as opposed to the current four. Actual spending for Program 1.1 Economic Opportunities for Natural Resources was $2,351,960,558 (includes the Statutory Programs related to the Atlantic Offshore of $2,103,259,499) for 2010-11 and $1,439,492,491 (includes the Statutory Programs related to the Atlantic Offshore of $1,222,730,140) for 2011-12. Actual spending for Program 1.2 Natural Resource-based Communities was $12,683,530 for 2010-11 and $23,288 for 2011-12.

**Statutory Programs:

As per the various Atlantic Offshore Accords, the Government of Canada receives royalties for offshore oil and gas production and subsequently pays an equal amount to the provinces of Nova Scotia and Newfoundland and Labrador.

* Note: Actual Spending for 2010-11 and 2011-12

NRCan changed its Program Alignment Architecture (PAA) for 2012-13. Actual spending for 2010-11 and 2011-12 reflects the legacy PAA structure, for which there were two programs under Strategic Outcome 2 as opposed to the current three. Actual spending for Program 2.1 Clean Energy was $1,329,561,608 for 2010-11 and $1,323,313,646 for 2011-12. Actual spending for Program 2.2 Ecosystem Risk Management was $198,295,951 for 2010-11 and $199,083,001 for 2011-12.

* Note: Actual Spending for 2010-11 and 2011-12

NRCan changed its Program Alignment Architecture (PAA) for 2012-13. Actual spending for 2010-11 and 2011-12 reflects the legacy PAA structure, for which there were three programs under Strategic Outcome 3 as opposed to the current two. Actual spending for Program 3.1 Adapting to a Changing Climate and Hazard Risk Management was $60,822,193 for 2010-11 and $50,834,868 for 2011-12. Actual spending for Program 3.2 Natural Resource and Landmass Knowledge and Systems was $95,524,071 for 2010-11 and $87,235,443 for 2011-12. Actual spending for Program 3.3 Geomatics Canada Revolving Fund was -$253,414 for 2010-11 and $444,250 for 2011-12.

For more information on NRCan’s plans and performance please see the NRCan plans and performance reports website ¹⁸

Expenditure Profile

Departmental Spending Trend

The graph below illustrates the departmental spending trend for the period 2008-09 to 2015-16 excluding statutory funding. Note that it does not include information from the 2013 Budget.

NRCan has four principal sources of funding:

• A-Base – permanent funding to the department;
• B-Base – funding to the department that is managed through a special purpose allotment;
• C-Base – funding that is temporary in nature (provided for a specific time period); and
• Statutory – funding that is provided directly as a result of legislative obligations.

NRCan’s A-Base is holding at a fairly consistent level, although it has seen some reductions through both Strategic Review 2009 and Budget 2012 savings measures.

NRCan’s B-Base is showing a downward trend as programs that are managed through special purpose allotments, such as the Nuclear Legacy Liabilities Program, are planned to wind down during 2013-14. However, NRCan recognizes that these programs may continue, which would level the B-Base spending trend over the period 2008-09 to 2015-16.

NRCan had a significant spike in C-Base funding during the period 2008-09 to 2011-12 resulting principally from programs announced as part of Canada’s Economic Action Plan 2009, including the Pulp and Paper Green Transformation Program and the ecoENERGY Retrofit Homes grant program. As these programs have terminated, NRCan’s spending trend for C-Base programs has declined. Additionally, as the department moves into 2013-14 and future years, other programs (such as Investments in Forest Industry Transformation and the Clean Energy Fund) are scheduled to sunset and other programs (such as ecoENERGY for Biofuels) have declining funding profiles.

NRCan’s statutory payments are primarily associated with the offshore agreements between the Government of Canada and both the Province of Nova Scotia and the Province of Newfoundland and Labrador. As the majority of the statutory payments are related to revenue, the spending trend for statutory payments fluctuates depending on a number of factors such as production and pricing levels.

Information on year-to-year variations for the period 2012-13 to 2015-16 can be found in the table below, which provides details on fluctuations.

Note 1: Certain programs are divided in different phases and as one phase is completed another phase may start. For this reason, the same program may be listed as both sunsetting/decreasing or new/increasing.

Note 2: Funding change is as compared to the preceding year (e.g., Geo-mapping for Energy and Minerals Program sunsets March 31, 2013, so the sunsetting is reflected in 2013-14).

Estimates by Vote

For information on NRCan’s organizational appropriations, see the 2013-14 Main Estimates ⁷⁰ publication.

Contribution to the Federal Sustainable Development Strategy

The Federal Sustainable Development Strategy (FSDS) outlines the Government of Canada’s commitment to improving the transparency of environmental decision-making by articulating its key strategic environmental goals and targets. The Government will be consulting the public in 2013-14 regarding the second three-year cycle of the FSDS (2013-16). The FSDS 2013-16 will be finalized in 2013-14 and presented as part of year-end performance reporting for that year.

 

NRCan supports the goals of this theme, which are to reduce greenhouse gas emissions and mitigate the impacts of climate change as well as to minimize the threats to air quality so that the air Canadians breathe is clean and supports healthy ecosystems. NRCan contributes to GHG mitigation and air quality through Energy-efficient Practices and Lower-carbon Energy Sources (PAA 2.1), Technology Innovation (PAA 2.2), Responsible Natural Resource Management (PAA 2.3), Protection for Canadians and Natural Resources (PAA 3.1) Economic Opportunities for Natural Resources (PAA 1.1), and Innovation for New Products and Processes (PAA 1.2).

 

NRCan supports the goal to protect and enhance the quality of water so that it is clean, safe and secure for all Canadians and supports healthy ecosystems through activities under Responsible Natural Resources Management (PAA 2.3).

 

NRCan supports the goal to maintain productive and resilient ecosystems with the capacity to recover and adapt; and protect areas in ways that leave them unimpaired for present and future generations, through programming in Responsible Natural Resources Management (PAA 2.3) and Protection for Canadians and Natural Resources (PAA 3.2).

 

NRCan supports the goal to green government operations and minimize the environmental footprint of government operations through Energy-efficient Practices and lower-carbon energy sources, technology innovation and activities in our Internal Services (PAA 4.1), specifically via the Low Carbon NRCan Initiative.

Sustainable development is central to the mandate of NRCan and essential to the future of the natural resource sectors and to the Canadian economy. The Department makes significant contributions to the FSDS. This is captured throughout this document and more specifically in NRCan’s Departmental Sustainable Development Strategy. NRCan plays a key role in delivering on the Government’s Clean Air Agenda ⁷¹ by leading on the Clean Energy component, contributing to greenhouse gas emissions mitigation and air quality through Energy-efficient Practices and Lower-carbon Energy Sources as well as by participating in adaptation and international engagement efforts such as the Canada-US Clean Energy Dialogue ⁷². In Budget 2011, the Government renewed its commitment to the Clean Air Agenda, as part of Canada’s Economic Action Plan, with a focus on regulatory actions to achieve real emissions reductions while maintaining Canada’s economic advantage.

More specifically, NRCan contributes to the following FSDS themes: I - Addressing Climate Change and Air Quality; II - Maintaining Water Quality and Availability; III - Protecting Nature, and; IV - Shrinking the Environmental Footprint – Beginning with Government, as denoted by the visual identifiers below.

These contributions are components of most of the Department’s Programs, outlined in sections II and III (Greening Government Operations supplementary table). Visit NRCan’s website ⁷³ for additional details on the Department’s activities to support sustainable development.

Strategic Environmental Assessments

NRCan also ensures that environmental concerns are considered in its decision-making through Strategic Environmental Assessments (SEAs). An analysis of the impacts on FSDS goals and targets is included in every proposal for policies, plans, or programs as part of the federal SEA process. The results of NRCan’s Detailed SEAs are made public when an initiative is announced, demonstrating the Department’s commitment to achieving the FSDS goals and targets.

For complete details on the FSDS, see the Environment Canada Sustainable Development website. ⁷⁴

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