Section I: Organizational Expenditure Overview 2014-15

NRCan worked to expand existing markets, open new markets, address market access barriers, attract investment into Canada and promote Canadian investment abroad, by engaging with key foreign governments, both bilaterally and multilaterally. This included signing a new bilateral Memorandum of Understanding (MOU) with the United States (US) Department of Energy and a trilateral data MOU with the US and Mexico. Canada also engaged with China, Ukraine, Poland, the United Kingdom (UK), Lithuania and Italy on the potential for future Liquefied Natural Gas (LNG) exports. With the US, Canada helped the Ukraine formulate a plan to deal with natural gas supply shortages during the winter of 2014-15.

Internationally, the Canada-European Union (EU) High Level Energy Dialogue was relaunched after the Canada-EU summit of September 2014, when leaders committed to renewed collaboration in the field of energy. The Dialogue allows Canada to cooperate with the EU on key energy areas such as oil and gas markets, science and technology (S&T), research and development (R&D), renewables, and in international fora.

NRCan’s recent outreach and engagement on EU’s proposed regulations for the Fuel Quality Directive successfully brought about final regulations in February 2015, which should not impact future oil exports to the EU.

The Department provided technical expertise on Canada's natural resource sectors to Foreign Affairs, Trade and Development Canada (DFATD) to support international trade negotiations, including on the recently concluded Canada-Korea Free Trade Agreement and on other international trade negotiations still under way such as the Canada-Japan Economic Partnership Agreement and the Trans-Pacific Partnership. NRCan also provided expertise to DFATD and Environment Canada (EC) in support of three international climate change negotiation sessions.

NRCan continued to advance Canada’s international climate change objectives in a range of high-level climate change- and clean energy-related fora. NRCan promoted its energy efficiency and clean energy supply initiatives at the fifth Clean Energy Ministerial in May 2014. The Department became Canada’s Focal Point on the Climate Technology Centre and Network (CTCN) of the United Nations Framework Convention on Climate Change (UNFCCC), and will facilitate the deployment of climate-friendly technologies in developing countries, as well as the Clean Technology Initiative (CTI) Private Financing Advisory Network (PFAN).

The Clean Energy Dialogue successfully released the Third Report to Leaders in October 2014, outlining joint Canada-US achievements in working groups focused on Carbon Capture and Storage and Integrating Renewable Power into the Grid, as well as Clean Energy R&D and Energy Efficiency.

In 2014-15, NRCan established the Major Projects Management Office – West (MPMO-West). It provides a single window for First Nations to engage with the GC on issues related to the development of West Coast energy infrastructure. In response to Special Federal Representative Douglas Eyford’s recommendations, the MPMO-West team is engaging early and often with First Nations, to build a trusting relationship, to identify and address issues related to west coast energy infrastructure, and to facilitate increased Aboriginal participation in energy projects.

NRCan coordinated many federal-provincial-territorial meetings, including the Energy and Mines Ministers’ Conference 2014, which included discussion of collaboration on energy efficiency, regulatory reform, the junior mining sector and mandatory reporting in the extractive sectors.

The Department continued to work collaboratively with wood product associations, provincial governments and the forest industry on a range of market development activities, both in foreign and North American markets. Exports of Canadian forest products increased 10.2% (dollar value) in 2014-15, in part due to these activities. Under the Expanding Market Opportunities program, NRCan provided support to the forest industry including $6.7 million in support of foreign market development initiatives and $2.8 million to increase the use of wood in non-residential and mid-rise applications in Canada and the US.

Promoting Canadian best practices in responsible mineral resource development, NRCan led the Canadian delegation to the 10^th annual general meeting of the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development. At events in Brussels and Berlin, the delegation promoted Canadian mining policies and technologies, including the Green Mining Initiative.

In 2014-15, NRCan established the Extractive Sector Transparency Measures Act (ESTMA) in response to the Prime Minister’s 2013 G8 commitment to deter corruption in the extractives sector through transparency measures. The Act requires the reporting of certain payments made to all levels of governments domestically and abroad. The ESTMA received Royal Assent on December 16, 2014, and came into force on June 1, 2015.

NRCan contributed to the 2014-15 review and renewal of the GC’s Corporate Social Responsibility (CSR) Strategy. Through cooperation with the Prospectors and Developers Association of Canada (PDAC), the Mining Association of Canada (MAC), rePlan, Plan Canada and UNICEF, the Department developed a CSR checklist for mining companies working abroad.

NRCan provided federal leadership by working with other federal departments and regulatory agencies to implement the Government’s plan for Responsible Resource Development and help protect Canadians.  It also disseminated scientific knowledge necessary to understand and identify areas that hold the most resource development potential.

To help bring Canada’s LNG resources to market, the Department supported the Governor in Council’s decision-making to authorize the National Energy Board (NEB) to issue two export licenses.

NRCan continued to monitor the Lower Churchill hydroelectric projects, including reviewing funding request documentation and independent engineering reports and participating in site visits.

The Department is updating the federal regulatory framework governing energy resources, including:

• Collaborating with Nova Scotia and Newfoundland and Labrador, other federal government departments and regulator partners to amalgamate various offshore and northern onshore oil and gas regulations into one performance-based regulatory system;
• Working with the NEB on amendments to regulations for pipeline damage prevention and to its Export and Import Regulatory Framework;
• Establishing regulations pursuant to the Nuclear Liability and Compensation Act; and
• Supporting the introduction of the Pipeline Safety Act, which includes authority to regulate liability and minimum financial capacity.

With a view to attracting and increasing investment in Canada’s natural resource sector, NRCan:

• Provided expertise and knowledge including the release of new information bulletins, maps and a Minerals and Metals Factbook;
• Developed and implemented proposals for geoscience research through the Geo-Mapping for Energy and Minerals-2 (GEM-2) program, including launching 14 activities, with initial fieldwork completed during the 2014-15 field season;
• continued to advance knowledge of untapped mineral resources though the release of new results on ore deposit science through the Targeted Geoscience Initiative (TGI); and
• Led missions to China, Japan and the US (Washington D.C. and Houston, TX), to attract foreign direct investment.

The Aboriginal Forestry Initiative delivered $2.7 million in funding in 2014-2015, supporting early engagement activities with industry, enhanced community readiness and capacity, and facilitating business development opportunities in Aboriginal communities across Canada.

NRCan continued to synthesize its science-based research to support the forest sector, including projects such as the long-term ecological forest research (35-year study) at Turkey Lakes, Ontario, and 15 years of research results from the Ecosystem Management Emulating Natural Disturbance project which explores the effectiveness of ecosystem-based management in the western boreal forest.

NRCan provided estimates of forest-related carbon and greenhouse gas (GHG) emissions to EC’s National Inventory (of GHG emissions); this information will be used in the 2015 National Inventory Report.

NRCan also delivered geoscience support to federal (Transport Canada [TC], Canadian High Arctic Research Station) and territorial governments (Northwest Territories [NWT] Environment and Natural Resources, NWT Department of Transport, Nunavut Department of Economic Development and Transportation, Gwich’in Renewable Resource Board) to increase their understanding of changes to the climate, and how they impact Northern infrastructure that would be required in bringing resources to market.

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.

The implementation of the Government-owned, Contractor-operated (GoCo) model for AECL’s Nuclear laboratory is on track. A key milestone was achieved in November 2014, with the operationalization of Canadian Nuclear Laboratories (CNL).

NRCan supported the forest sector’s efforts to develop opportunities in bioenergy, bio-products and next generation of building materials, including the deployment of new cross-laminated timber manufacturing technology at facilities in Western Quebec and British Columbia; state-of-the-art precision forestry informatics through a national equipment manufacturer; commercial production of food-grade biomethanol from a pulp and paper mill; construction of a facility to prefabricate a panelized system for the Passive House Standard (a rigorous, internationally recognized design and building standard), and industrial-scale glue applications for lignin extracted from the pulping process.

Under the ecoENERGY Efficiency program, NRCan continued to support training initiatives for individuals in the housing, buildings, industrial and transportation sectors, and the development of codes and regulations. This program contributes to Canada's long-term goals to reduce greenhouse gas emission while saving Canadian consumers and businesses money, and helping Canadian industry to become more competitive. In 2014-15, key activities included the ENERGY STAR® benchmarking tool for buildings, the SmartWay Transport Partnership (a benchmarking program for the freight transportation industry), and the expansion of the ENERGY STAR® product labelling program.

NRCan's Program of Energy Research and Development, ecoENERGY Innovation Initiative and Clean Energy Fund programs continued to support leading-edge clean energy research, development and demonstration (RD&D) projects.

In its first full year of operation, the NRCan-led Federal Geospatial Platform (FGP) developed a functional test version of an integrated suite of internal and external online tools and technologies. Through this whole-of-government, enterprise-wide approach to geospatial tools and information sharing, the federal government has started to integrate and share more than 141 geospatial data layers, significantly exceeding its original first-year target of 50. The addition of this new data to Canada’s Open Data Portal will facilitate smarter and faster decision making by a multitude of users on a wide range of issues, from environmental and safety, to economic and social issues. 

NRCan undertook the Canadian Geomatics Environmental Scan and Value Study representing the most comprehensive assessment to date of the geomatics and geospatial sector in Canada. The study found that in 2013, the use of geospatial information contributed $20.7 billion in productivity improvements to the Canadian economy, or the equivalent of 1.1% of national GDP.

With regard to improving the energy efficiency of vehicles, NRCan’s CanmetMATERIALS Lab completed work in successfully integrating spring-back prediction of high-strength steels. This enables Canadian companies, to avoid costly tooling changes and enhances time to market in hydro-formed tubular products used in crash applications in vehicle body structures.

Several materials solutions for key components in the Canadian Generation-IV (GEN-IV) Supercritical Water-cooled Reactor concept were developed in 2014-15. This year, coatings to protect steels from corrosion in high-temperature supercritical water have been evaluated and finalized; and a ceramic insulating material has been developed and tested. Results were provided to the Canadian GEN-IV Review Committee in February 2015.

Through collaboration with federal, provincial and territorial partners, 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, are available to Canadians. The Department also delivered reusable Open Data applications (e.g., Canadian digital elevation data and GeoGratis) and tools, leading to cost-effectiveness in technology use, and continued to prepare for and manage risks and emergencies as they relate to its mandate.

NRCan continued to disseminate geospatial products and services in support of land and natural resource management, publishing 37 Canadian geoscience maps along with their associated data, and releasing 775 science and technology publications. The Department also produced a new reference map of Canada including updates to the transportation network, populated placed symbols, place names and the position of the North Magnetic Pole. New features include winter roads, two new national parks and an updated summer sea ice extent based on EC’s standard measurement approach.

NRCan’s research on an early intervention against the spruce budworm in Eastern Canada produced promising results, including a better understanding of how a spruce budworm outbreak begins and spreads. In October 2014, the Department co-hosted the Third Biennial Wildland Fire Canada Conference with Maritime provincial agencies. The event was a key opportunity to re-engage and strengthen working relationships with Canadian fire management agencies, and transfer knowledge on NRCan fire research and information systems technology to fire management end-users.

Commissioning of the Water Treatment Plants for the Port Hope and Port Grandby remained on track. In September 2014, Public Works and Government Services Canada (PWGSC) put out to tender the contract for the Port Granby Long Term Waste Management Facility.

Under the Nuclear Legacy Liabilities Program (NLLP), NRCan continued its work with AECL and CNL on the transition of nuclear decommissioning and waste responsibilities to the GCo management model.

NRCan regularly participated in the development and revision of GC Emergency Management Plans including the Interagency Volcanic Event Notification Protocol, Atlantic Canada Tsunami Protocol, Earthquake Contingency Plan, Earthquake Response protocol, Flood Plan, and Satellite Imagery Acquisition Plan.

New security provisions under the Explosives Act came into force on February 1, 2015, which completed the final step in the implementation of the Explosives Regulations, 2013.

The Adaptation Platform continued to develop effective climate change adaptation actions, notably by bringing more stakeholders on board. Public Safety Canada and the Federation of Canadian Municipalities joined the plenary body, with total Platform membership rising to 370 members.

NRCan met its Northern survey obligations and completed its annual plan for the multi-year First Nations Land Management program. As part of its First Nation Land Management work, NRCan prepared 37 land descriptions, 101 research reports, and annual work plans for Treaty Land Entitlement in Saskatchewan and Manitoba.

NRCan focused on transforming the way it delivers internal services such as human resources, information management, and capital investments, to increase the efficiency and effectiveness of its operations.

The Department has implemented government-wide transformation initiatives:

• In support of its Blueprint 2020 Action Plan, NRCan created the Natural Resources Economic Analysis Network (NREAN) of experts in economic analysis related to natural resources, launched the NRCan Speakers Series, hosted a Fail Faire for the federal government (providing tools to support learning from intelligent risk taking) and implemented the Upward Feedback pilot project.
• Under Web Renewal, NRCan met all deliverables including supporting each new release of the Canada.ca website.
• The Department implemented GCDOCS, the new document-management system.

NRCan has also made improvements to its operations:

• The Department’s Intellectual Property leaders shared best practices for publishing and licensing, and created A Guide for NRCan Managers.
• NRCan’s first S&T Annual Report was published in January 2015.
• The Department developed tools and resources to complement its Values and Ethics Code, including defining the governance structure to support values and ethics activities within NRCan and developing mandatory conflict of interest training for employees.
• With respect to monitoring financial pressures related to real property assets, NRCan drafted a national accommodation strategy and national portfolio strategy; it also continued to optimize office accommodation through workplace densification, re-location and the termination of leases to improve NRCan’s space envelope balance.
• To improve tracking of the efficiency and effectiveness of its programs, NRCan renewed the Department’s Integrated Risk Management Policy Framework, drawing on best practices and recommendations from a recent internal audit; developed capacity on the Lean approach to processes and applied it to selected processes.
• NRCan implemented the Treasury Board Performance Management Directive. NRCan had the second highest completion rate amongst large federal departments in 2014-15.

If Canada fails to respond to changing market dynamics such as shifting natural resources demand to new markets, or maintain an appropriate investment climate, natural resource sectors may lose opportunities.

NRCan provided support to several regulatory and legislative initiatives to strengthen energy and mining regulations, pipeline safety, nuclear liability and offshore petroleum regimes. In February 2014, the Energy Safety and Security Act received Royal Assent and will enter into force in February 2016. The Offshore Health and Safety Act received Royal Assent in June 2014 and entered into force on December 31, 2014. The Pipeline Safety Act was introduced in December 2014 and received Royal Assent in June 2015. NRCan continues to work with Quebec on the 2011 Canada-Quebec Gulf of St. Lawrence Petroleum Resources Accord legislation to implement it as early as possible. As well, NRCan contributed to the review of the Metal Mining Effluent Regulations led by EC.

To help bring Canada’s LNG resources to market, NRCan supported Governor in Council decision-making to authorize the NEB to issue two LNG export licences.

In 2014, NRCan established the MPMO-West, providing a single window for First Nations communities to engage with the GC on issues related to West Coast energy infrastructure development. The MPMO-West team is engaging early, often and in collaboration with other federal departments, supporting a range of initiatives to respond to identified community needs building a trusting relationship and facilitating increased Aboriginal participation in energy projects.

NRCan managed outreach and engagement on proposed regulations for the EU’s Fuel Quality Directive; these efforts successfully brought about final regulations in February 2015, which should not impact future oil exports to the EU.

Internationally, NRCan supported projects and engaged with partners to promote Canada as a reliable and responsible resource developer, as well as to promote investment in Canada’s natural resource sectors; for example:

• NRCan signed an MOU on Enhanced Energy Cooperation with the US Department of Energy (US DOE).
• NRCan participated in the first trilateral meeting of North American Energy Ministers in seven years.
• NRCan signed an MOU on Nuclear Energy Cooperation with China’s National Energy Administration in November 2014.
• NRCan signed an Implementing Arrangement with AECL and the US DOE for Collaboration in the Area of Nuclear Energy Research and Development in January 2015.
• NRCan facilitated Ministerial trips to China and Japan, and engaged multilaterally to strengthen international energy security through the G7, the International Energy Agency and the Asia-Pacific Economic Cooperation.
• NRCan signed an MOU with the Tianjin Binhai New Area in support of the Sino-Canadian Low-Carbon Eco District Demonstration Project, which will feature a variety of Canadian wood frame building systems and wood products, as well as Canadian energy-efficient and renewable energy technologies.
• NRCan signed a Canada-South Africa MOU concerning Cooperation in Mining and Mineral Development, which will create opportunities to promote green mining technologies.
• NRCan signed an Action Plan with Mongolia to formalize cooperation and position Canada as a strategic long-term partner for trade and investment in Mongolia's mining sector.
• NRCan has been designated as Canada’s National Focal Point for the (CTCN) – an operational arm of the UNFCCC Technology Mechanism. In this capacity, NRCan advanced opportunities for the Canadian private sector to participate in the transfer of clean technologies to developing countries.

NRCan continued to conduct research to ensure the safety of our infrastructure and sustainability of our natural resource systems; for example:

• Nineteen research projects were initiated related to pipeline integrity and safe operation of pipelines through the use of advanced materials and technology.
• NRCan continued to provide knowledge and information on the status, function and integrity of forest ecosystems to support the sustainability of Canada’s forests and forest management.
• NRCan also continued to provide knowledge, information and analysis on the state of Canada’s exploration and mining sector and key commodities found in Canada.

1.1.2 – Forest Products Market Access and Development

1.1.3 – Energy Market Regulation and Information

1.3.1 – Mineral Investment

1.3.5 – Major Projects Management Office Initiative

2.1.2 – Support for Clean Energy Decision-making

2.2.1 – Materials for Energy

2.3.1 – Forest Ecosystems Science and Application

If Canada does not have sufficient safeguards in place, in the event of a natural event or human-driven incident, this may negatively impact Canadians, the security of Canada’s natural resource infrastructure as well as Canada’s economy.

NRCan and Maritime forest management agencies co-hosted the third biennial Wildland Fire Canada Conference in October 2014, helping to re-engage and strengthen working relationships among the Canadian fire management agencies and to transfer knowledge on NRCan fire research and information systems technology to fire management end-users.

NRCan and the Privy Council Office led the development of geomatics in support of the federal Departmental Security Officer (DSO) Community with the support of Defence Research and Development Canada. The project included two components: (1) to document the requirements of the DSO community in the preservation of information and physical infrastructure; (2) to bring together the DSO community to extract detailed functional requirements for the FGP based on commonly accepted user-centred engineering methods.

NRCan updated the Risk and Control Assessment Report for the NLLP to confirm that adequate controls were in place to mitigate potential impacts on health, safety and the environment from incidents that could occur during implementation of the NLLP.

NRCan participated in the development and revision of GC Emergency Management Plans including the Interagency Volcanic Event Notification Protocol, Atlantic Canada Tsunami Protocol, Earthquake Contingency Plan, Earthquake Response Protocol, Flood Plan, and Satellite Imagery Acquisition Plan. In addition, NRCan collaborated on the development of, and participation in, a Full-Scale Exercise (FSX) Unified Response, to test the recently redrafted Federal Nuclear Emergency Plan with a field deployment of federal and provincial assets. Lessons learned from these exercises are being used to improve a variety of NRCan emergency management protocols.

The Department also developed and disseminated knowledge about hazards to Government and industry clients through 24/7 monitoring and alerting, and emergency geomatics services. In 2014-15, NRCan implemented an $17 million ‘Enhanced Earthquake Monitoring’ initiative to refresh Canada’s earthquake monitoring and alerting capability. NRCan also continues its work in mapping and interpretation of floods and ice break-up during emergency situations. The Emergency Geomatics Service, which supports emergency response activities in Canada, also continues to produce and disseminate satellite-based information products to a large community of emergency responders.

1.2.3 – Geospatial Innovation

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