Section I: Organizational Expenditure Overview

Organizational Profile

Appropriate Minister: The Honourable Greg Rickford, P.C., M.P.

Institutional Head: Bob Hamilton

Ministerial Portfolio:

Atomic Energy of Canada Limited^{Footnote [i]} (AECL);
National Energy Board^{Footnote [ii]} (NEB);
Canadian Nuclear Safety Commission^{Footnote [iii]} (CNSC);
Canada-Newfoundland and Labrador Offshore Petroleum Board^{Footnote [iv]} (CNLOPB);
Canada-Nova Scotia Offshore Petroleum Board^{Footnote [v]} (CNSOPB);
Northern Pipeline Agency^{Footnote [vi]} (NPA);
Sustainable Development Technology Canada^{Footnote [vii]} (SDTC); and
Energy Supplies Allocation Board (ESAB) (inactive).

Enabling Instrument(s):

Department of Natural Resources Act^{Footnote [viii]}, S.C. 1994, c. 41
Forestry Act^{Footnote [ix]}, R.S.C., 1985, c. F-30
Resources and Technical Surveys Act^{Footnote [x]}, R.S.C., 1985, c. R-7

Year of Incorporation / Commencement: 1994

Organizational Context

Raison d’être

The vision of Natural Resources Canada (NRCan) 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 responsible 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. The Minister’s core powers, duties and functions are set forth in the Department of Natural Resources Act, the Resources and Technical Surveys Act and the Forestry Act. NRCan also works in areas of shared responsibilities with provinces.

To deliver on its responsibilities, NRCan relies on a number of instruments. It uses science and technology (S&T) to help address priorities and to 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.

NRCan has offices and laboratories from coast to coast to coast. About half of its occupied facilities are in the National Capital Region, with the remainder being distributed from Atlantic Canada, through Québec and Ontario, to the Western and Pacific Regions and Northern Canada.

Strategic Outcome(s) and Program Alignment Architecture

Strategic Outcome 1: Canada’s Natural Resource Sectors are Globally Competitive
- Program 1.1: Market Access and Diversification
  - Sub-Program 1.1.1: Mineral and Metal Markets Access and Development
  - Sub-Program 1.1.2: Forest Products Market Access and Development
  - Sub-Program 1.1.3: Energy Market Regulation and Information
- Program 1.2: Innovation for New Products and Processes
  - Sub-Program 1.2.1: Mining Innovation
  - Sub-Program 1.2.2: Forest Sector Innovation
  - Sub-Program 1.2.3: Geomatics Innovation
- Program 1.3: Investment in Natural Resource Sectors
  - Sub-Program 1.3.1: Mineral Investment
  - Sub-Program 1.3.2: Forest-based Community Partnerships
  - Sub-Program 1.3.3: Targeted Geoscience Initiative 4 (TGI-4)
  - Sub-Program 1.3.4: Geo-mapping for Energy and Minerals
  - Sub-Program 1.3.5: New Energy Supply
  - Sub-Program 1.3.6: Major Projects Management Office Initiative
- Program 1.4: Statutory Programs –Atlantic Offshore

Strategic Outcome 2: Natural Resource Sectors and Consumers are Environmentally Responsible
- Program 2.1: Energy-efficient Practices and Lower-carbon Energy Sources
  - Sub-Program 2.1.1: Renewable Energy Deployment
  - Sub-Program 2.1.2: Support for Clean Energy Decision-making
  - Sub-Program 2.1.3: Alternative Transportation Fuels
  - Sub-Program 2.1.4: Energy Efficiency
- Program 2.2: Technology Innovation
  - Sub-Program 2.2.1: Materials for Energy
  - Sub-Program 2.2.2: Green Mining
  - Sub-Program 2.2.3: Clean Energy Science and Technology
- Program 2.3: Responsible Natural Resource Management
  - Sub-Program 2.3.1: Forest Ecosystem Science and Application
  - Sub-Program 2.3.2: Groundwater Geoscience
  - Sub-Program 2.3.3: Environmental Studies and Assessments
  - Sub-Program 2.3.4: Radioactive Waste Management
  - Sub-Program 2.3.5: Earth Observations for Responsible Development of Natural Resources

Strategic Outcome 3: Canadians have Information to Manage their Lands and Natural Resources, and are Protected from Related Risks
- Program 3.1: Protection for Canadians and Natural Resources
  - Sub-Program 3.1.1: Explosives Safety and Security
  - Sub-Program 3.1.2: Materials and Certification for Safety and Security
  - Sub-Program 3.1.3: Forest Disturbances Science and Application
  - Sub-Program 3.1.4: Climate Change Adaptation
  - Sub-Program 3.1.5: Geohazards and Public Safety
- Program 3.2: Landmass Information
  - Sub-Program 3.2.1: Essential Geographic Information
  - Sub-Program 3.2.2: Canada’s Legal Boundaries
  - Sub-Program 3.2.3: Polar Continental Shelf Logistics Support
- Program 4.1: Internal Services

Organizational Priorities

In 2013-14, NRCan supported key government priorities. The Department played a lead role in 1) diversifying markets for Canada’s natural resources, 2) implementing responsible resource development, 3) conducting science and innovation for competitiveness and environmental protection, and 4) making use of science and technology to ensure the safety and security of Canadians and public confidence. It also continued to enhance the effectiveness and efficiency of its internal operations. Work on these priorities helped guide the Department in its efforts to follow through on its Strategic Outcomes and support broader Government of Canada priorities.

Details on each of the priorities and how NRCan achieved them are presented below.

Organizational Priorities

Priority

Type¹

Strategic Outcome(s) [and/or] Program(s)

Expand markets and global partnerships

Previously Committed to

P 1.1 – Market Access and Diversification
P 1.2 – Innovation for New Products and Processes

Summary of Progress

NRCan worked to expand existing markets, open new markets, address market access barriers and promote investment in Canada as well as Canadian investment abroad by engaging with key foreign governments, both bilaterally and multilaterally.

NRCan continued to brand Canada globally as a responsible resource developer. For example, the Department assisted the Minister in undertaking an advocacy program to address market barriers to Canadian crude oil, travelling to Europe to discuss Canada’s concerns with the European Commission’s Fuel Quality Directive (FQD). A key accomplishment was to produce a study that demonstrated significant flaws in the previous methodology in calculating the FQD’s crude intensity default values. NRCan officials participated in subsequent fora on the FQD in Brussels to discuss Canada’s concerns.

NRCan officials also undertook discussions with their counterparts in California to discuss that state’s Low Carbon Fuel Standard (LCFS) and several potentially discriminatory components therein. Departmental officials also briefed the Canadian oil sands industry and Alberta officials on potential risks in the evolution of LCFS and carried out a Canadian engagement strategy to mitigate these risks. This outreach highlighted several links between various actors working on both the LCFS and the FQD and helped to better inform Canada’s position on both files.
NRCan was very active in the Asia-Pacific region over 2013-14 and worked with counterparts in Foreign Affairs, Trade and Development Canada (DFATD) to achieve the following successes:
- In India, NRCan supported work to develop the Canada-India Ministerial Energy Dialogue, following up on the Prime Minister’s prior commitment. The Prime Minister then followed this up with a Mission to India in early 2014, during which trade and investment opportunities for Canadian energy supply to meet Indian energy demand were promoted.
- In March 2014, Canada and South Korea announced the successful conclusion of a free trade agreement, Canada’s first in an Asian market. Among other benefits, this agreement will support Canada’s forest sector, including by phasing out all existing tariffs, the establishment of a working group on building products and a subcommittee on trade in forest products. The Minister also travelled to Korea to speak at the World Energy Congress to emphasize the importance of market diversification for Canadian oil and gas exports.
- In Japan, the Minister and his Japanese counterpart signed the Statement on Oil and Gas Cooperation, intended to strengthen Canada's energy cooperation with Japan and establish an annual bilateral high-level policy dialogue on energy. NRCan also met with officials from China in Canada to provide further information on Canada’s vast crude oil and natural gas resources and pipeline regulatory framework.
- NRCan also worked in China to highlight the role Canadian energy exports could play in that country’s economy in support of Canada’s energy diversification.
In coordination with DFATD, NRCan continued to analyze and provide input into energy-related negotiations with several trade partners, including Japan, the European Union, Korea (as previously described) and the Trans-Pacific Partnership. NRCan also co-led the Energy, Mining and Agriculture group under the Japan Economic Partnership Agreement negotiations. These agreements would build on other successes in the 2013-14 period, such as Canada and the European Union’s announcement that they had reached an agreement in principle, expected to result in the Comprehensive Trade and Economic Agreement (CETA).
NRCan supported trips to Washington, New York and Houston, where the Minister emphasized the importance of the Canada-US energy relationship including trade and investment advantages and opportunities. NRCan officials also continued to work with their US counterparts to advance trade and investment discussions as part of the Clean Energy Dialogue.

In 2013-14, NRCan supported its Minister and the Prime Minister in Mexico for the North American Leaders' Summit, which resulted in agreement for a trilateral meeting of North American Energy Ministers later in the year. Also in 2013-14, NRCan officials hosted the Canada-Mexico Energy Working Group, a part of the Canada-Mexico Partnership, sharing information on Canada's renewed regulatory system and partnership opportunities, particularly in unconventional oil and gas.
NRCan worked with DFATD to finalize the terms of reference for the review of the Government of Canada's Corporate Social Responsibility Strategy. It supported the Prime Minister's commitment at the G8 Summit to improve transparency and accountability in the extractive sector.
NRCan supported the fall meeting of the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF). At the sessions, Canadian representatives exchanged extractive sector partnership best practices and established relationships with several new IGF participants. Further, NRCan was elected Vice-Chair for North America on the IGF Executive Committee for two years (October 2013 to October 2015.
In 2013-14, NRCan supported market development and market access activities of forest product associations in traditional and emerging offshore markets and in North America. The offshore activities position Canada as a world leader in sustainable forest management and a preferred supplier of sustainable forest products. The North American activities aim to increase wood use in non-residential and mid-rise construction and support forest science research to inform sustainable forestry practices in Canada's boreal forest.

¹Type is defined as follows: previously committed to—committed to in the first or second fiscal year prior to the subject year of the report; ongoing—committed to at least three fiscal years prior to the subject year of the report; and new—newly committed to in the reporting year of the RPP or DPR. If another type that is specific to the department is introduced, an explanation of its meaning must be provided.

Priority

Type

Strategic Outcome(s) [and/or] Program(s)

Unlock resource potential through responsible development

Previously Committed to

P 1.1 – Market Access and Diversification
P 1.3 – Investment in Natural Resource Sectors
P 2.1 – Energy-Efficient Practices and Lower-Carbon Energy Sources
P 2.3 – Responsible Natural Resource Management
P 3.2 – Landmass Information

Summary of Progress

To achieve this priority, NRCan provided federal leadership by working with federal regulatory departments and agencies to implement the Government’s plan for Responsible Resource Development, and disseminated scientific knowledge necessary to understand and identify areas that hold the most resource development potential.

NRCan’s supported the development of a suite of Responsible Resource Development (RRD) regulations, 11 of which were published in 2013-14. It also supported the legislative changes for pipeline and offshore liability, as well as measures to ensure a world-class marine safety regime. With support from its federal partners, the Department continued to drive system-wide improvements to the regulatory system for major resource projects in Canada.
NRCan oversaw the whole-of-government approach to Aboriginal consultation for major resource projects, and integrated, to the extent possible, Aboriginal consultation into environmental assessments and project reviews. In 2013-14, the Department also played a central role in supporting the work of the Special Federal Representative on West Coast Energy Infrastructure, which concluded with a final report that was publicly released in December 2013.
At the 2013 Energy and Mines Ministers' Conference, federal, provincial and territorial (FPT) Ministers endorsed five priorities for the Regulatory Reform Working Group (which NRCan co-chairs): 1) supporting improvements to the coordination of Aboriginal engagement and consultation, 2) clarifying information requirements for FPT review processes, 3) further exploring potential areas for regulatory reform to strengthen the effectiveness and efficiency of major project reviews, 4) continuing implementation of RRD by encouraging greater uptake of key tools and processes, such as substitution provisions, and 5) advancing opportunities to demonstrate the effectiveness of FPT review processes.
As of March 31, 2014, NRCan’s Major Projects Management Office managed a portfolio of approximately 80 projects, representing a total capital investment of nearly $230 billion.
NRCan continued to support the Minister in the Government's implementation of pipeline and marine safety measures by identifying issues, providing sound advice, and ensuring a coordinated, whole-of-government approach to implementing the measures that impact major project reviews.
NRCan prepared the Treasury Board submissions and provided advice and recommendations to Cabinet Ministers regarding the approval of four long term liquefied natural gas (LNG) export licences, several variances to pipeline certificates, and recommendations for decisions on two pipeline projects.
The formal agreements for the provision of the loan guarantee for the Lower Churchill River hydroelectric projects concluded.
Through its Targeted Geoscience Initiative 4 (TGI-4), NRCan contributed a number of geoscience publications and presentations to the public domain to help industry uncover deep, hidden mineral deposits. Sourced from study sites across Canada, these publications include geoscience knowledge products and innovations (e.g., geochemical, geophysical, mineralogical, and 3D modelling tools), and have been used by the exploration service industry and mineral exploration clients. More than 300 publications and 450 public engagement products (such as workshops and conference proceedings) are now available online.
Through its Geo-mapping for Energy and Minerals (GEM) program, NRCan continued to improve public understanding of the resource potential in the North by releasing almost 800 products and contributing more than 200 regional scale maps in 2013-14. The high-impact scientific results included 32 new knowledge products on Nunavut's Kivalliq region, presented by the Prime Minister in August 2013 when he also announced the launch of a second phase of the GEM program for another 7 years; GEM-2 will continue to modernize geological knowledge and enhance understanding of mineral and energy systems in high-priority areas in the North, including in collaboration with Northerners, their institutions and provincial and territorial representatives.
NRCan’s Ecosystem Management Emulating Natural Disturbance project yielded results for responsible resource development in 2013-14. For example, NRCan provided information to provincial forestry committees on modelling best practices, and to companies on how to take caribou and marten populations into consideration to maintain ecosystem integrity.
In December 2013, the Commission on the Limit of the Continental Shelf received Canada’s submission to delineate an extended continental shelf zone for Canada in the Atlantic Ocean. At the same time, preliminary information was filed for the Arctic Ocean, indicating an intention to file a full submission at a later date. This highly technical document is developed in collaboration with the Fisheries and Oceans Canada and Foreign Affairs, Trade and Development Canada.
NRCan provided leadership within Canada’s federation by developing and tabling a report on labour market imbalances at the Energy and Mines Minsters’ Conference. NRCan also collaborated with provinces and territories to advance work on shale oil and gas, renewable energy, energy transportation and energy efficiency, priorities that were discussed by energy ministers at the 2013 Conference in Yellowknife..

Priority

Type

Strategic Outcome(s) [and/or] Program(s)

Innovate for competitiveness and environmental performance

Previously Committed to

P 1.1 – Market Access and Diversification
P 1.2 – Innovation for New Products and Processes
P 2.1 – Energy-efficient Practices and Lower-Carbon Energy Sources
P 2.2 – Technology Innovation
P 2.3 – Responsible Natural Resource Management

Summary of Progress

NRCan continued its work to enhance energy efficiency in the residential, commercial and institutional, industrial and transportation sectors, pursue S&T projects on unconventional oil and gas, promote the development and use of innovative energy technology, support the production and use of alternative transportation fuels, and advance innovation in green mining.

In 2013-14, the ecoENERGY Efficiency program achieved more than 22 petajoules (PJ) of energy savings by providing process and technology solutions to make housing, buildings, industry, vehicles and equipment more energy efficient and energy performance more visible.
NRCan’s ecoENERGY for Biofuels program supported the private sector’s development of renewable alternatives to gasoline and diesel. Despite changes in the marketplace and other factors, NRCan was able to maintain the total built production capacity of 1.88 billion litres of ethanol and 575 million litres of biodiesel, slightly lower than that achieved in 2012.
NRCan signed agreements with foreign partners in Israel to collaborate on common energy interests. In 2013-14, NRCan also launched a second call for proposals on additional energy R&D projects.
In 2013-14, NRCan signed 9 contribution agreements with external project proponents, bringing to 62 the number of agreements signed through the ecoENERGY Innovation Initiative. Including money from private sector proponents, $289 million has been leveraged to date for clean energy research. One notable example is a project on carbon capture and storage project to identify options for the Athabasca area of Alberta.
NRCan continued to advance Canada’s international climate change objectives in a range of climate change and clean energy-related fora. For instance, NRCan’s energy efficiency initiatives, efficient street lighting tool, and energy management systems were promoted at the fourth Clean Energy Ministerial, a global forum. NRCan also continued to support the operationalization of the Climate Technology Centre and Network under the United Nations Framework Convention on Climate Change’s (UNFCCC), which will facilitate the deployment of climate-friendly technologies in developing countries.
NRCan supported partners in producing 15.7 TWh of renewable power in 2013-14 through its ecoENERGY for Renewable Power and Wind Power Production Incentive programs.
Canadian Standards Association standards and other international codes and standards were advanced based on the research conducted at NRCan’s CanmetMATERIALS laboratory, the largest research centre in Canada dedicated to the fabrication, processing and evaluation of metals and materials. These included a standard on oil and gas pipe systems and a new standard on field applied external coatings for pipeline systems. Research on fracture, welding and corrosion was also advanced through national and international collaborations with the pipeline industry and its associations, universities and other government agencies to support the design, construction and operation of new and existing pipelines.
NRCan, through its Investments in Forest Industry Transformation (IFIT) program, supported two new projects in 2013-14 that are world-first demonstrations of Canadian technologies. In doing so, NRCan demonstrated its commitment to emerging technologies in the forest sector through targeted investments in integrated biorefineries that are capable of efficiently converting biomass into high-value bioproducts.
NRCan advanced the restructuring of Atomic Energy of Canada Limited (AECL) by working closely with Public Works and Government Services Canada, Justice Canada, AECL, central agencies and external advisors. In 2013-14, NRCan launched the procurement process to obtain the services of a private-sector contractor to manage and operate AECL's Nuclear Laboratories through a Request for Response Evaluation, during which interested bidders are evaluated to assess whether they meet mandatory technical, financial and security requirements.
To date, NRCan’s obligations under the current pilot plant project using supercritical water bitumen processing have been exceeded and NRCan continues to work with its Japanese partner on a two-month extended contract to fulfill the needs of the state-run Japan Oil, Gas and Metals National Corporation.
In 2013-14, two of the three projects supported by NRCan’s Isotope Technology Acceleration Program (ITAP) were successfully demonstrated and made public announcements regarding the commercial production of technetium-99m (Tc-99m) for medical purposes using a cyclotron at a scale sufficient for a metropolitan area.
NRCan’s partnership with Purdue University on bio-char technology, to reduce metal contamination in soils, yielded lab-scale results in 2013-14, suggesting viability of larger-scale demonstration projects.
In 2013-14, NRCan developed a method to assess the effects of residual stress on steel tubes manufactured at two Canadian tube production mills. This modelling method, when fully deployed, will allow for lightweight tubes to be used in vehicle manufacturing, reducing fuel use.

Priority

Type

Strategic Outcome(s) [and/or] Program(s)

Leverage S&T knowledge for safety and security risk management

Previously Committed to

P 2.3 – Responsible Natural Resource Development
P 3.1 – Protection for Canadians and Natural Resources
P 3.2 – Landmass Information

Summary of Progress

Through collaboration with federal, provincial and territorial partners as well as academia, industry stakeholders and key international organizations, NRCan continued to drive innovation of the Canadian Geospatial Data Infrastructure, ensuring that high-value, open, standards-based geodata, such as topographic and geoscience maps, were available to Canadians. Additionally, the Department delivered reusable open data applications (e.g., Canadian digital elevation data, GeoGratis) and tools, leading to cost-effectiveness in technology use.

NRCan also continued to prepare for and manage risks and emergencies as they related to its mandate.

NRCan’s GeoGratis application was improved to provide easier access to 182,000 Earth Sciences web resources (datasets, maps, publications). The Department also published 426 new publications via GeoGratis in 2013-14, including 244 open files, 124 maps, 20 research documents and general information products. Other work completed by NRCan included the digitizing and re-releasing to the public an additional 736 publications and updated datasets pertaining to the National Road Network, National Hydro Network, National Railway Network, and Atlas of Canada.
NRCan’s new Emergency Geomatics Service system was used during the 2013 spring flood season in Manitoba (Red River, Assiniboine River) and Alberta (High River). Near real-time open water flood extent maps, derived from Radarsat-2, were provided to provincial and municipal authorities to enhance the situational awareness of managers and responders. These maps served to improve planning, execution, and evaluation of emergency management operations, and guide responders engaged in tactical response.
NRCan expanded the reach of its Climate Change Adaptation Platform to more than 200 members in 2013-14, allowing for greater sharing of knowledge, improved dialogue and coordination on adaptation initiatives. In the same time period, 43 new products were delivered and $3.85 million was approved, in addition to more than $4 million leveraged from the public and private sectors, for 36 new cost-shared projects that will help Canadians adapt to a changing climate.
In 2013-14, NRCan co-hosted the Conference of the International Boreal Forest Research Association and presented a number of papers reviewing scientific literature on Canada’s boreal zone. These presentations advanced participants’ knowledge on a number of topics, including the climate change, disturbances, and the need for closer collaboration amongst the circumboreal countries. It also enabled the exchange of knowledge related to best practices in boreal forest management on a region-specific basis. These papers were published in the journal Environmental Reviews beginning in December 2013 and will continue into 2014.
NRCan provided remote sensing methods, tools and data for regulatory compliance monitoring and cumulative environmental impact assessments in 2013-14. This scientific support related to the acquisition, calibration, correction and processing of airborne data, including over the oil sands region, and resulted in improvements in data set quality and subsequent mapping by other users of these data.
NRCan conducted inspections in 2013-14 related to explosives, ensuring that facilities working with explosives were conducting their work in a safe and secure manner.
NRCan continued to conduct leading edge science and research on Canada’s unconventional oil and gas resources to ensure they are developed safely and responsibly. NRCan has disseminated research results and factual information addressing public concerns with aspects of unconventional oil and gas development, including hydraulic fracturing, induced seismicity and the protection of groundwater.

Priority

Type

Strategic Outcome(s) [and/or] Program(s)

Increase the effectiveness and efficiency in NRCan operations

Previously Committed to

P 4.1 – Internal Services

Summary of Progress

NRCan focused on transforming the way it delivers internal services such as human resources, information management, and capital investments. In so doing, the Department increased efficiency and effectiveness of its operations.

NRCan completed its implementation of the Common Human Resources Business Process (CHRBP) ahead of the March 31, 2014 deadline. The Department also completed its business process analysis for all seven CHRBP processes, implementing 25 identified opportunities for improvement to processes.
NRCan’s new document management application, GCDOCS, was advanced substantially in 2013-14. Key milestones completed include the development and approval of the Project Management Plan, employee engagement, functional testing, completion of pilots, and implementation in some parts of the Department.
NRCan launched its new consolidated Internet website in December 2013, replacing the existing collection of branch, sector and corporate websites. This transformation resulted in a streamlined Web presence and the archiving of 14,000 web pages, consistent with the Government of Canada Standard on Web Usability. Further, Web performance measurement capabilities have been upgraded so that all web pages and web applications are being monitored by Google Analytics, a centrally managed web analytics tool.
Progress was made in implementing NRCan’s Values and Ethics (V&E) Code. Specifically, NRCan undertook consultations on the new employee conflict of interest self-declaration tool, updated internal V&E tools and resources, and launched an initiative to inform employees of services available to them.
NRCan continued to improve its service to Canadians and its employees in both official languages, including through implementing all of the Department’s 2011-14 Official Languages Action Plan initiatives. It also implemented many initiatives from its 2012-15 Employee Equity Action Plan.
NRCan’s Investment Plan was approved by the Treasury Board in September 2013. To support subsequent planning activities and the delivery of investments, NRCan reviewed relevant frameworks and worked to streamline them.
Finally, NRCan continued to support its human resource priorities by focusing on the Employee Performance Management Program as the foundation for effective talent management, leadership development, and strengthened management capacity. It provided training to its managers and supervisors on performance management, strengthened internal governance to support implementation of the Directive on Performance Management, and developed communications, tools and resources.

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 based on the recognition that a solid understanding of the risk environment is fundamental to achieving its Strategic Outcomes. Risk identification is a key part of NRCan’s planning process, and risks are important drivers in the establishment of priorities for the Department.

High-level strategic and operational risks are presented in NRCan’s Corporate Risk Profile, which is monitored and updated regularly. Operationally, one of the Department’s primary ongoing focuses continues to be the prudent and efficient management of its financial resources. From a strategic perspective, NRCan manages risks to support Canadians and the natural resource sectors

Two of these risks — Market Access and Investment Climate, and Hazards and Emergency Management, — are discussed here.

Resource context

Canada has vast energy, mineral and forest resources, which are critical to its economic prosperity. This resource wealth indirectly and directly contributes to almost one-fifth of the country’s nominal Gross Domestic Product and close to 1.8 million jobs. The importance of natural resources to the Canadian economy could grow further if, for example, the oil sands crude oil production more than doubles over the next 15 years, from 1.9 million barrels per day to 4.8 million barrels per day by 2030, as currently projected.

With a supply of natural resources far outpacing domestic demand, Canada must ensure that it can access foreign markets if it is to maintain and grow the economic benefits from its resource endowment. Canadian natural resources must have export destinations. As the United States is expected to be almost self-sufficient in energy, in net terms, by 2035, Canadian export destinations must increasingly be outside traditional markets. Countries such as China, which has already surpassed the United States as the world’s largest energy consumer, and India, slated to become the third largest energy consumer by 2030, represent important opportunities for Canada to expand markets. However, Canada has been keen to expand and strengthen existing markets too, in an effort to build resilience into its export strategy. In October 2013, for example, Canada and the European Union announced an agreement in principle on a Canada-European Comprehensive Economic and Trade Agreement (CETA), which will significantly boost two-way trade and investment. Once the CETA comes into force, it will immediately eliminate all tariffs on Canadian forest, minerals, metals and energy products, and will support bilateral dialogues in forestry and raw materials.

A number of factors influence the ability of natural resource sectors to get resources to market, and each of these contributed to the resource-based risks faced by Canada and managed, in part, by NRCan. These include Canada’s investment climate, the infrastructure to support harvesting resources and transporting them to market, and Canada’s international reputation in those potential markets. These risk drivers are discussed below, while NRCan’s strategy for managing them is addressed in the table following this section.

Canada needs to maintain an attractive business environment for natural resource projects as well as Canadian trade globally. A lack of critical infrastructure to bring resources to terminals or ports is a risk for the natural resource sectors. If pipelines, rail networks and roads – as well as the support to maintain them as safe and reliable transportation routes – are not sufficient, then the opportunities for the natural resource sectors will be diminished. Furthermore, if transportation infrastructure is not managed with the utmost regard to safety, the public confidence in the environmental safety of natural resource projects, or even in the entire industry, would erode, decreasing the support for projects by local First Nations. As well, Canada’s international reputation relating to its environmental performance could impact the access to foreign markets for Canadian natural resource exports.

Key Risks

Risk

Risk Response Strategy

Link to Program Alignment Architecture

Market Access and Investment Climate

NRCan will continue to manage this risk through working with several other federal departments, provincial and territorial governments and representatives from the private sector to 1) promote and brand Canada abroad as a reliable and environmentally responsible trade partner, including through focused, Ministerial missions; 2) engage with Aboriginal peoples and other Canadians on the potential benefits as well as on approaches to mitigate any environmental risks associated with resource development; 3) make the regulatory review process at home more predictable and efficient while ensuring sound environmental stewardship; and 4) develop appropriate regulations.

Supporting diversified market access and increased investment through promotion of Canada as a responsible resource developer in Israel, across Europe and in the Asia-Pacific Region. NRCan also continued to strengthen its bilateral engagement with the United States.
Participating in major international trade shows such as BC Mineral Roundup, China Mining, Mining Indaba, Chile’s Expomin and the Prospectors and Developers Association of Canada's Annual Convention and Tradeshow to promote Canada as a destination for foreign direct investment.
Working with partner departments, provinces and key stakeholders to ensure the safety and security of critical resource infrastructure through strengthening world-class pipeline and marine safety regimes.
Implementing the plan for Responsible Resource Development to advance system-wide transformation of the federal regulatory system, including by delivering and managing predictable and timely project reviews, reducing regulatory burdens, improving environmental protection, and providing consistent, meaningful and timely Aboriginal consultation.

These and other commitments that helped mitigate this risk are described throughout the Departmental Performance Report in the sections identified under the links to the Program Alignment Architecture.

1.1.2 – Forest Products Market Access and Development

1.1.3 – Energy Market Regulation and Information

1.3.1 – Mineral Investment

1.3.6 – Major Projects Management Office Initiative

2.2.1 – Materials for Energy

2.3.1 – Forest Ecosystems Science and Application

Hazards and Emergency Management

As a core part of NRCan’s mandate, the Emergency Management Act (EMA) outlines the accountabilities of federal ministers and their responsibilities relating to emergency management in Canada. In accordance with the EMA, and in relation to the Minister’s mandate, NRCan has specific accountabilities for contributing to the safety and security of Canadians and the international community.
These responsibilities are met through the provision of 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. The Department also conducted risk assessments that support the development of policies, programs and regulations and ensure learning from incidents and availability of scientific research, tools and techniques to promote resilience within the natural resource sectors.
In 2013-14, NRCan undertook a number of specific initiatives to address its responsibilities, which included:

Working with the Alberta’s Environment and Sustainable Resource Development branch to plan the integration of NRCan satellite-earth observation methods into the mapping for fire management in the Alberta oil sands region. That province is also utilizing hyperspectral data funded by NRCan to support the development of land reclamation tools.
Partnering with the Canadian Geotechnical Society to develop and release the Canadian technical guidelines and best practices related to landslides and loss reduction.
Working with Alberta Energy Regulator (AER) to develop internal capacity to understand and model surface deformation related to the in situ extraction of bitumen. Project deformation results shared with AER helped the regulator to develop an informed decision for bitumen spill in the Cold Lake region.
Completing ongoing enhancements to the Canadian Wildland Fire Information System, including the Fire Monitoring Accounting and Reporting System. The Canadian Fire Resource Demand System is now operational and integrates weather forecasts, statistical fire occurrence models, resource use variables, and expert opinion to provide wildfire managers with forecasts of fire load and fire resource demand and availability across the country. The System was used in 2013 by British Columbia, which enabled it to transfer resources to help fight large fires in Quebec.
Contributing to the development of a revised National Disaster Mitigation Program to reduce the impact of future natural disasters and inform NRCan’s development of proposed real-time earthquake and tsunami alerting systems.
Engaging in the Government of Canada All-Hazard Risk Assessment effort, the Federal Nuclear Emergency Plan national exercise and the review of the Federal Emergency Response Plan.
Supporting stakeholders in their use of NRCan’s new Emergency Geomatics Service system during the 2013 spring flood season in Manitoba (Red River, Assiniboine River), and Alberta (High River).

2.3.4 – Radioactive Waste Management

2.3.5 – Earth Observation for Responsible Resource Development

3.1.2 – Materials and Certification for Safety and Security

3.1.3 – Forest Disturbances Science and Application

3.1.5 – Geohazards and Public Safety

3.2.1 – Essential Geographic Information

4.1 – Internal Services

Actual Expenditures

**Budgetary Financial Resources (dollars)**
2013-14 Main Estimates	2013-14 Planned Spending	2013-14 Total Authorities Available for Use	2013-14 Actual Spending (authorities used)	Difference (actual minus planned)
2,767,014,238	2,767,784,129	2,373,283,282	2,091,044,593	(676,739,536)

**Human Resources (Full-Time Equivalents [FTEs])**
2013-14 Planned	2013-14 Actual	2013-14 Difference (actual minus planned)
4,156	4,033	(123)

**Budgetary Performance Summary for Strategic Outcome(s) and Program(s) (dollars)**
Strategic Outcome(s), Program(s) and Internal Services	2013-14 Main Estimates	2013-14 Planned Spending	2014-15 Planned Spending	2015-16 Planned Spending	2013-14 Total Authorities Available for Use	2013-14 Actual Spending (authorities used)	2012-13 Actual Spending (authorities used)	2011-12 Actual Spending (authorities used)
Strategic Outcome 1: Canada’s Natural Resource Sectors are Globally Competitive
Market Access and Diversification	44,912,875	44,912,875	56,085,530	43,497,846	61,396,582	59,733,334	55,420,361	*
Innovation for New Products and Processes	102,524,720	102,524,720	67,598,586	66,175,755	105,039,435	94,093,063	93,948,144	*
Investment in Natural Resource Sectors	54,483,815	54,483,815	55,641,175	53,472,654	65,961,283	65,333,593	73,319,149	*
Statutory Programs- Atlantic Offshore	1,255,167,000	1,255,167,000	1,293,425,000	1,328,316,000	795,884,721	795,884,721	684,964,769	*
Subtotal	1,457,088,410	1,457,088,410	1,472,750,291	1,491,462,255	1,028,282,021	1,015,044,711	907,652,423	*
Strategic Outcome 2: Natural Resource Sectors and Consumers are Environmentally Responsible
Energy-efficient Practices & Lower-carbon Energy Sources	444,317,619	444,317,619	464,018,045	255,596,149	430,276,325	314,652,883	342,424,547	**
Technology Innovation	265,761,737	265,761,737	150,090,774	122,495,639	235,868,140	155,738,548	152,200,348	**
Responsible Natural Resource Management	341,051,255	341,051,255	179,373,009	181,701,711	330,109,153	282,047,031	236,874,939	**
Subtotal	1,051,130,611	1,051,130,611	793,481,828	559,793,499	996,253,618	752,438,462	731,499,834	**
Strategic Outcome 3: Canadians have information to Manage their Lands and Natural Resources, and are Protected from Related Risks
Protection for Canadians and Natural Resources	58,484,119	59,202,413	55,878,528	52,950,476	66,418,340	65,535,095	55,604,146	***
Landmass Information	44,500,738	44,500,738	53,620,414	45,306,771	83,852,111	73,828,231	90,961,341	***
Subtotal	102,984,857	103,703,151	109,498,941	98,257,247	150,270,451	139,363,326	146,565,487	***
Internal Services Subtotal	155,810,360	155,861,957	158,919,551	140,907,322	198,477,192	184,198,094	181,093,220	251,745,618
Total	2,767,014,238	2,767,784,129	2,534,650,611	2,290,420,322	2,373,283,282	2,091,044,593	1,966,810,964	3,352,172,605

* NRCan changed its PAA from 2011-12 to 2012-13. Actual Spending for 2011-12 reflects that year’s PAA structure, for which there were two program activities under Strategic Outcome 1: 1.1 Economic Opportunities for Natural Resources (actual spending for 2011-12 of $1,439,492,491, which includes the Statutory Programs related to the Atlantic Offshore, with actual spending for 2011-12 of $1,222,730,140), and 1.2 Natural Resource-based Communities (actual spending for 2011-12 of $23,288).

** NRCan changed its PAA from 2011-12 to 2012-13. Actual Spending for 2011-12 reflects that year’s PAA structure, for which there were two program activities under Strategic Outcome 2: 2.1 Clean Energy (actual spending for 2011-12 of $1,323,313,646) and 2.2 Ecosystem Risk Management (actual spending for 2011-12 of $199,083,001).

*** NRCan changed its PAA from 2011-12 to 2012-13. Actual Spending for 2011-12 reflects that year’s PAA structure, for which there were three program activities under Strategic Outcome 3: 3.1 Adapting to a Changing Climate and Hazard Risk Management (actual spending for 2011-12 of $50,834,868), 3.2 Natural Resources and Landmass Knowledge and Systems (actual spending for 2011-12 of $87,235,443) and 3.3 Geomatics Canada Revolving Fund (actual spending for 2011-12 of $444,250).

NRCan’s Planned Spending of $2.768 billion was adjusted during the year to $2.373 billion to reflect changes in authorities granted in Budget 2013 and adjustments to statutory items. The overall reduction of $395 million is explained by a combination of increases and decreases.

Increases included funding for the Government Advertising Campaign, the Stakeholder Engagement and Outreach Campaign, the Restructuring of Atomic Energy of Canada Limited’s Nuclear Laboratories, Geo-Mapping for Energy and Minerals, United Nations Convention on the Law of the Sea (UNCLOS), Port Hope Area Initiative, transfer from the Department of National Defence for the Canadian Armed Forces Arctic Training Centre, the operating budget and capital budget carry forward, and collective bargaining.

Decreases included transfers to other departments, a reduction to the Clean Energy Fund (CEF), payments to the Newfoundland Offshore Petroleum Resource Revenue Fund (which were lower than initially forecasted due to decreases in production resulting from the shutdown of oil platforms), and payments to the Nova Scotia Offshore Revenue Account (which were lower due to decreases in production resulting from depressed natural gas prices and reduction in operating capacity).

NRCan’s Actual Spending of $2.091 billion compared to total authorities of $2.373 billion resulted in a lapse of $282 million, primarily due to lapses in the Grants and Contributions vote pertaining to the ecoENERGY for Biofuels program, the Grant to Sustainable Development Technology Canada, ecoENERGY Renewable Power (all resulting from claims being lower than allowed in the contribution agreements), Investments in Forest Industry Transformation program (as a result of a contribution agreement not being signed), as well as amounts frozen for the CEF, the Advertising Campaign, the transfer to Shared Services Canada, and the conversion factor (converting operating dollars into salary dollars), the reprofile of funding to future years for the Gunnar and Lorado Mine, the Port Hope Area Initiative, the Stakeholder Engagement and Outreach Campaign, and Incremental Land Claims, and a lapse in the Operating vote for the Port Hope Area Initiative, for which NRCan will seek a reprofile.

Alignment of Spending With the Whole-of-Government Framework

**Alignment of 2013-14 Actual Spending With the Whole-of-Government Framework^{Footnote xi} (dollars)**
Strategic Outcome	Program	Spending Area	Government of Canada Outcome	2013-14 Actual Spending
1 Canada’s Natural Resource Sectors are Globally Competitive	1.1 Market Access and Diversification	Economic Affairs	Strong Economic Growth	59,733,334
	1.2 Innovation for New Products and Processes	Economic Affairs	Strong Economic Growth	94,093,063
	1.3 Investment in Natural Resource Sectors	Economic Affairs	Strong Economic Growth	65,333,593
	1.4 Statutory Programs- Atlantic Offshore	Economic Affairs	Strong Economic Growth	795,884,721
2 Natural Resource Sectors and Consumers are Environmentally Responsible	2.1 Energy-efficient Practices & Lower-carbon Energy Sources	Economic Affairs	A Clean and Healthy Environment	314,652,883
	2.2 Technology Innovation	Economic Affairs	A Clean and Healthy Environment	155,738,548
	2.3 Responsible Natural Resource Management	Economic Affairs	A Clean and Healthy Environment	282,047,031
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	Social Affairs	A Safe and Secure Canada	65,535,095
	3.2 Landmass Information	Social Affairs	A Safe and Secure Canada	73,828,231

**Total Spending by Spending Area (dollars)**
Spending Area	Total Planned Spending	Total Actual Spending
Economic Affairs	2,508,219,021	1,767,483,173
Social Affairs	103,703,151	139,363,326
International Affairs
Government Affairs

Departmental Spending Trend

**The table below illustrates the departmental spending trend, in dollars, for the period 2011-12 to 2016-17.**
	2011-12	2012-13	2013-14	2014-15	2015-16	2016-17
Sunset Programs	0	0	0	265,083,632	104,654,006	75,638,452
Total Spending	3,352,172,605	1,966,810,964	2,091,044,593	2,269,566,979	2,185,766,316	2,250,021,913

For fiscal years 2011-12, 2012-13 and 2013-14, the figures represent the actual expenditures as reported in the Public Accounts.

NRCan’s spending profile shows a drop in expenditures after fiscal year 2011-12 as a result of sunsetting funding for Canada’s Economic Action Plan initiatives, specifically the Pulp and Paper Green Transformation Program, the ecoENERGY Retrofit – Homes Grant Program, and the ecoENERGY Technology Initiative. In addition to the sunsetting funding, there is a significant reduction to the statutory payments for the Atlantic Offshore Accords from 2011-12 to 2013-14.

For the period 2014-15 to 2016-17, the figures represent the total planned spending for the fiscal year, which reflects approved funding by Treasury Board to support the departmental strategic outcomes. The sunset amounts represent programs that are set to expire in that fiscal year, irrespective of a planned renewal. In 2014-15, a large portion ($195M) of the sunsetting programs is related to the Nuclear Legacy Liabilities Program. While total planned spending from 2014-15 to 2016-17 remains steady, the statutory planned spending for the Atlantic Offshore Accords increases from 2013-14 to 2016-17 and appropriated planned spending for sunset programs declines, effectively offsetting each other.

Major initiatives sunsetting in 2014-15 include:

Nuclear Legacy Liabilities Program;
Renewable Fuels – Conditional Grant to Sustainable Development Technology Corporation; and
Stakeholder Engagement and Outreach Campaign.

Major initiatives sunsetting in 2015-16 include:

ecoENERGY Innovation Initiative; and
ecoENERGY Efficiency.

Major initiatives sunsetting in 2016-17 include:

Forest Innovation and Expanding Market Opportunities;
ecoENERGY for Biofuels; and
Wind Power Production Incentive.

Estimates by Vote

For information on Natural Resources Canada’s organizational Votes and statutory expenditures, consult the Public Accounts of Canada 2014 ^{Footnote xii} on the Public Works and Government Services Canada website

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