Details of transfer payment program of $5 million or more

The Clean Technology stream will co-develop and launch a series of challenges to address areas such as climate change, clean growth, and the application of new technologies to reduce negative environmental impacts. For each challenge, a mix of tools (e.g., contribution agreements, grants, micro-grants) will be used, based on technical, market and environmental circumstances, in order to achieve breakthroughs in clean technology, and leverage as much innovation activity as possible from a given award level.

No repayable contributions.

The Clean Technology Challenges are focused on unlocking breakthrough solutions to complex and persistent problems in developing clean technology. In the long term, this program is intended to contribute to improved environmental and economic performance in Canada’s natural resource and clean technology sectors.

The Women in Cleantech Challenge launched in Toronto on May 10, 2018. Submissions were received from applicants from eight provinces, and ten semi-finalists were chosen to describe their ideas before a jury of prominent Canadian women scientists and business leaders, including experts in the science, technology, engineering and mathematics (STEM) fields on September 18, 2018 in Toronto.  The six selected finalists are receiving up to $300,000 each in business incubation support, $250,000 in science and technology support from federal labs, and an annual stipend of $115,000 for living and travel expenses to allow 100% dedication to the Challenge, before they compete for a $1-million prize to invest in their business.

The Sky’s the Limit Challenge launched in Edmonton on August 17, 2018. Information and networking sessions to connect innovators were hosted in Ottawa in November 2018 as part of the Green Aviation Research and Development Network (GARDN) Conference. In February 2019, submissions were received from 14 consortium teams from across the country  on a range of technical and business approaches  for producing sustainable aviation fuel in Canada with the lowest emissions at the lowest price.  In March 2019, four finalists were selected to receive up to $2M to advance their projects.  The Cross-Canada Flight, a parallel competition to produce enough sustainable aviation fuel to complete a cross-Canada flight for the first time, opened for submission on March 1, 2019.

The Power Forward Challenge launched in Ottawa on October 16, 2018 in partnership with the UK. NRCan and the UK Department of Business, Energy and Industrial Strategy (BEIS) are each putting forward C$10 million for the Challenge to design the power grid of the future, address common technical barriers and create new commercial opportunities. In December 2018, submissions were received from 70 Canadian small and medium enterprises (SMEs). The top 10 were selected to receive $100K in funding. A virtual matchmaking event for Canadian and UK innovators took place in January 2019, featuring 93 participants. A trade mission in February 2019 brought 16 Canadian companies/utilities to the UK to develop partnerships. Collectively, these matchmaking activities contributed to about 300 business-to-business connections.  In March 2019, final submissions were received from 44 Canadian and UK applicants. 14 semi-finalist teams (7 projects being proposed in Canada and 7 projects being proposed in the UK) were selected to compete in June 2019 for funding support. On June 20, 2019, 7 finalist teams were announced. Each finalist team is eligible to receive up to C$3 million in funding for a demonstration project of their technology solution.

The Crush It! Challenge launched in Sudbury on October 30, 2018. The application intake phase closed in January 2019 with 65 submissions received from applicants.  A Technical Review Committee determined the 12 semi-finalists  invited to present their solutions to a Challenge Jury comprised of external experts. Eleven semi-finalists qualified as “small-scale innovators” and were awarded micro-grants of $10K to advance their proposals. In March 2019, the Challenge Jury determined the top-6 finalists  eligible to receive up to $800K each to build and test their prototype solutions to transform how energy is used in mining for the crushing and grinding of rocks.

The Indigenous Off-Diesel Initiative launched in Whitehorse on February 13, 2019. Webinars were held in February and March to engage potential applicants  and raise awareness of the Initiative. In March 2019, submissions were received from 60 applicants from across Canada’s Indigenous remote communities to become one of the 15 clean energy champions. After completing specialized clean energy training, the champions will receive up to $500K to develop ambitious clean energy plans.

No audit in 2018-19.

Joint audit and evaluation of Impact Canada Clean Technology Stream, planned for completion in September 2020

This program will be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

No evaluation in 2018-19.

Joint audit and evaluation of Impact Canada Clean Technology Stream, planned for completion in September 2020

The design and delivery of each Impact Canada Challenges varies from challenge to challenge. The development and scoping of challenges involved extensive consultations with more than 1500 experts, partners and stakeholders, such as sector associations, industry, academia, Indigenous Governments, representative organizations and Provinces/Territories and other levels of government.

Each challenge has undertaken a range of activities to help promote the challenges, encourage participation and provide guidance to potential challenge participants including: sharing challenge information on Natural Resources Canada website and the Impact Canada Initiative Prize and Challenge interactive website, using social media campaigns, targeted outreach, hosting webinars and delivering workshops.

Energy Efficiency

Energy Innovation Program

The Office of Energy Efficiency (OEE) funded projects that support improved energy efficiency across Canada. In 2018-2019 this included:

• The delivery and updating of the Consortium for Energy Efficiency Qualified Product Listings tool, a database containing energy performance data for energy efficiency products outside the scope of ENERGY STAR, and the compilation of research and data results from demonstration products across Canada.
• Supported the purchase of high efficiency water heating equipment by the Nova Scotia Department of Energy. The Department will collect data to analyze potential energy and economic savings of the equipment, its benefits to utility providers, and the experience of installers for the equipment.
• Supported a project in Medicine Hat, which through behavioural, data-driven and experimental approaches, allowed 349 participating households to reduce their energy use by up to 22%.
• Supported a project of the Arctic Energy Alliance which enabled low income homeowners in Jean Marie River First Nations and Hamlet of Sachs Harbour to improve living conditions by using EnerGuide to complete energy retrofits and by building local capacity to manage the retrofit process and reduce reliance on diesel.
• Supported the Green Infrastructure component of the Investing in Canada Plan to support Electric Vehicle and Alternative Transportation Fuels Infrastructure. The details can be found in the Investing in Canada Plan horizontal table .

Green Infrastructure Funding under the Investing in Canada Plan.

This funding also captures some OEE and the Office of Energy Research and Development (OERD) projects that support the Green Infrastructure (GI) component of the Investing in Canada Plan.

This green Infrastructure funding has been used to make homes, buildings and industrial facilities more energy efficient. This included work on the development of model codes for new and existing homes and buildings, ENERGY STAR Certification for industrial facilities and commercial and institutional buildings, and support for expanding the implementation of the ISO 50001 energy management standard to commercial and institutional buildings.

In addition, tools have been developed to open access to EnerGuide home energy use data and to enable the sharing of EnerGuide home energy ratings. This supports provincial, territorial, municipal and other partners’ residential energy efficiency programming.

As part of GI programs, OERD is investing $64.1M in the Energy Efficient Buildings Research, Development, and Demonstration Program to fund projects of net-zero energy ready technologies and practices to reduce costs and drive adoption by Canada’s construction industry. Projects are expected to lower the cost of high performance homes and buildings, and provide new knowledge to inform the development of new building model codes. The first call resulted in 13 projects selected for funding ($15M allocated). Six contribution agreements were signed & projects started (representing a $6M program investment). Projects include: the Nunavut Arctic College Student Residence Deep Energy Retrofit to save energy and cut pollution and the Sundance Housing Cooperative to retrofit 59 townhouses in Edmonton to be net-zero ready. The remaining 7 projects are completing due diligence. Other calls are planned on a bi-yearly basis until funds are fully allocated.

Additional details about Green Infrastructure Programs are available in Infrastructure Canada’s Investing in Canada Plan.

No audits in 2018-19

This program will be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

No evaluation in 2018-19.

Evaluation of Energy Efficiency planned for completion in December 2019

OEE participated in a number of initiatives to engage with stakeholders including industry, associations, provinces and territories, as well as research and policy groups. For example, in 2018-2019, OEE:

• Conducted 12 interviews with stakeholders to share best practices on project financing and to define the current energy efficiency landscape in Canada.
• Conducted face to face business development meetings with participants at the Canada Green Building Council conference, to better understand the energy efficiency retrofit market.

OERD conducted extensive engagement with industry, associations, Provinces and Territories, and research and policy groups to help inform the scope of calls for proposals. Requests for project proposals are solicited from a broad range of eligible recipients including industry, academia and consortia via open, advertised proposal calls and non-advertised direct requests. The first call for proposals and project selection was completed in 2018-19. Other calls for proposals are planned on a bi-yearly basis until the remaining program funds are fully allocated.

The ecoENERGY for Renewable Power program is investing $1.4 billion over 14 years to increase Canada's supply of clean electricity from renewable sources such as wind, biomass, low-impact hydro, and solar photovoltaic energy. It is intended to help position low-impact renewable energy technologies to make an increased contribution to Canada’s energy supply and thereby contribute to a more sustainable and diversified energy mix. Payments of the incentive will be paid over a 10-year period to qualifying projects.

This transfer payment program has repayable contributions.

No audits in 2018-19

This program will be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

No evaluations in 2018-19

Evaluation of Renewable Energy Deployment, planned for completion in March 2020

No audits in 2018-19

This program will be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

No evaluations in 2018-19

No evaluations planned, next evaluation will be identified when five-year spending total averages over $5M per year.

Since 1997, NRCan has contributed to the Youth Employment Strategy through the Science and Technology Internship Program, which supports the integration of post-secondary graduates between the ages of 15-30 into science, technology, engineering and math (STEM) fields in the natural resources sectors. Using a third party delivery model, NRCan provides funding for approximately 50 internships per year through contribution agreements to external funding organizations. These organizations take responsibility for delivering the internship funding to organizations that host the interns. This program supports the Minister’s commitment to assist in the development and promotion of Canadian scientific and technological capabilities, and to address labour shortages in science, technology, engineering and math fields. The program has been expanded for 2016-19 and includes funding for 1200 Green Jobs, internships with an environmental benefit. The program also promotes diversity in the natural resources labour market by targeting participation by individuals in the designated employment equity groups (women, Indigenous Peoples, visible minorities, persons with disabilities).

Contributions are non-repayable.

In 2018-19, the Science and Technology Internship program (STIP) created 638 Science, Technology, Engineering and Math (STEM) internships in the natural resource sectors, linked to the green economy.

Based on Budget 2017 investment of $16.4M to create 1200 Green Jobs for youth over 2 years, NRCan successfully created 1188 of the 1200 internships during 2017-2019 and achieved 99% of the target.

No audits in 2018-19

This program will be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

No evaluations in 2018-19

Horizontal evaluation of the Youth Employment Strategy (ESDC lead), planned for completion in June 2020

Engaged over 200 First Nations, Inuit and Metis Youth at the January 2019 SevenGen Indigenous Student Energy Summit to identify barriers and solutions to Indigenous employment in the natural resources sectors

Produced 3 testimonial videos featuring intern and employer experiences with the STIP and posted them on the NRCan STIP website.

The Clean Growth Program will provide $155M over four years to support clean technology research and development, and demonstration in Canada’s energy, mining, and forest sectors. The program is designed to advance emerging clean technologies towards commercial readiness so that natural resource operations can better reduce their environmental impacts on air, land, and water, while enhancing competitiveness and creating jobs.

The program has conditionally repayable contributions for demonstration projects; R&D activities are non-repayable.

The Clean Growth Program (CGP) selected 50 projects to co-fund with provinces and territories, to develop clean technologies to address pressing environmental challenges in Canada’s natural resource sector and help to grow Canada’s economy.

The program developed trusted partnerships with Emissions Reduction Alberta, Alberta Innovates, BC Innovation Council, Innovation Saskatchewan, the Natural Gas Innovation Fund, the Offshore Energy Research Association, and the Ontario Centre of Excellence, to advance co-funding requirements and FPT collaboration, enable the sharing of information and expertise, and establish methods for organizations to cooperate and co-fund projects under the CGP.

In FY 2018-19, 15 contribution agreements were signed; 12 projects had started; and 4 projects valued at over $145M that were co-funded with Alberta Innovates and/or Emissions Reductions Alberta, were announced, such as demonstrating an in-pit extraction process at Canadian Natural’s Horizon oil sands mine that promises to reduce energy use and GHG emissions. Remaining projects were undergoing due diligence review and/or contribution agreement negotiations.

Additionally, to help small to medium sized enterprises funded through CGP overcome capacity gaps, such as, lack of technical expertise or research infrastructure that may affect their ability to advance, the program launched Science & Technology Assistance for Cleantech (STAC), to provide eligible proponents with access to in-kind scientific and technical resources available through federal research centres.

No evaluations in 2018-19

Evaluation of Clean Growth Funding Program, planned for completion in June 2020

Through an extensive multisector engagement initiative, the program engaged key industry and provincial/territorial stakeholders during its development. This informed the outcomes-based approach by the program. In order to facilitate the co-funding of projects with provincial and territorial partners, the program has developed Trusted Partnerships with key provincial and territorial stakeholders.

To increase awareness about proposal solicitations, the program presented at conferences, workshops and sector meetings; held two webinars after the program launch (approx. 1000 participants); and launched an interactive social media platform to encourage potential applicants to collaborate with other partners, provinces/territories, and federal research centres.

CGP is fully subscribed and all available funding has been allocated.

The objective is to support the competitiveness of Canada’s natural resource sectors through a comprehensive suite of research, development, demonstration, and RSA (Related Scientific Activities) projects leading to advances in technology, increased knowledge and collaboration, input into codes, standards and associated policies and regulations, and ultimately improved environmental and economic performance.

The program has conditionally repayable contributions for demonstration projects; R&D and RSA are non-repayable.

The Energy Innovation Program (EIP) provided $24.4M in funding in 2018-19 for 54 grants and contributions, for a total of over $45.7M in EIP funding over three years of the program. This amounts to $227M in total project costs, including leveraged funds, which is estimated to leverage $3.90 dollars for every 1 dollar of federal funding. Projects were funded to research, develop and demonstrate a wide range of energy innovation themes including methane emissions reductions, carbon capture and storage, reducing energy use in buildings and communities, renewable energy, and smart grids. For example:

• Carbon Engineering received $2.25M to pioneer a scalable technology to capture carbon dioxide from the air and combine it with hydrogen atoms released from other clean energy sources to turn it into liquid fuels for transportation. The clean-burning synthetic fuels will contribute to the low-carbon economy and reduce emissions.
• London District Catholic School Board (LDCSB) received $4.8 million to install a micro-grid at London’s John Paul II Catholic Secondary School which will enable the school to generate and store its own energy, be resilient to grid outages and feed surplus energy back to the grid. Energy consumption will be reduced and almost all on-site emissions will be eliminated through the installation of a state-of-the-art geothermal system. The school board is also developing a curriculum to educate students about this type of emerging energy system.
• Tugliq Energy’s received $4.18M to conduct a front-end engineering project and design study to integrate compressed air energy storage with its operations, enabling increased use of wind energy at a Nunavut mine and to support the expansion of Nunavik’s first renewable energy production and storage centre for 16 regional mining operations and Inuit communities.
• Patro Research Inc. received $0.6M to identify the most cost-effective, high-impact methane emission reduction opportunities across the life-cycle of the integrated natural gas system, to help limit any increases in GHG emissions associated with Liquefied Natural Gas (LNG) projects in Canada. The project will identify technology gaps and inform the development of measures to advance technology deployment and uptake for improving environmental performance in this sector.

NRCan also relaunched EIP with two new funding calls:

Breakthrough Energy Solutions Canada (BESC) was launched under a first-of-its kind public-private partnership between Breakthrough Energy (BE), led by Bill Gates and global investors, and NRCan’s Office of Energy Research and Development. BESC fosters cutting-edge companies to deliver game-changing clean energy innovations – with a focus on technologies or solutions with potential for significant greenhouse gas reductions globally (0.5GT/year globally). In addition to funding support, BESC provides Canadian entrepreneurs and start-ups with a unique opportunity to harness the expertise and business support from BE and NRCan. Additionally, the successful cohort of companies funded through BESC will have the opportunity to attend annual “pitch events” where they can showcase their innovations to investors like BE for the opportunity to be considered for additional private investment.

Canadian Emission Reduction Innovation Network (CERIN): NRCan and Alberta Innovates have collaborated to develop a shared vision for a national approach to oil and gas emissions reduction that brings together expertise and builds capacity in emissions management innovation. CERIN leverages federal, provincial and industry funding to build technology testing infrastructure at key research and industry facilities within Canada to support the development and deployment of innovative technologies designed to measure and reduce methane and short-lived climate pollutant emissions from the oil and gas industry. This supports the innovation necessary to allow industry to meet national methane regulations in a cost-effective way.

No audits in 2018-19

This program will be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

No evaluations in 2018-19

Evaluation of Energy Innovation Program, planned completion in July 2019

The Electric Vehicle Infrastructure Demonstration component supports the demonstration of next-generation electric vehicle charging infrastructure in Canada.

The program will undertake Front End Engineering Design studies and demonstrations to reduce the costs, understand the impacts and address potential hurdles for the deployment of next-generation charging infrastructure for electric vehicles.

Projects funded under this program are conditionally repayable.

Electric Vehicle Infrastructure Demonstration (EVID) Phase I funded 10 real world projects to address technological gaps and barriers to the implementation of Electric Vehicle (EV) infrastructure, reduce the cost, improve the performance and charging speed for charging stations, improve the functionality of network management systems for EV infrastructure, and address grid integration issues.

Results to date include advancing innovative solutions to technical challenges and other barriers for the deployment of EV charging infrastructure (e.g. cost, speed, interoperability, load management, off-grid infrastructure), including the installation of 123 innovative or next generation chargers for multi-residential buildings, workplaces and people without garages or dedicated parking. Other examples of funded projects include: solar powered chargers, curb-side and lamppost chargers, multi-residential building load management, overhead charging for city buses, and next-generation high speed chargers.

In 2018-19, a call for proposals was launched for Phase II of EVID ($30 million over 4 years). The Program received a total of 81 expressions of interest (EOI’s) which led to the submission of 42 proposals. 25 projects were selected for funding. As of March 31, 2019, 5 contribution agreements (CAs) were signed representing $9.4M in federal investments and total project costs $19.2M. The other projects were undergoing due diligence review and /or CA negotiation. All CAs are expected to be signed by summer 2019.

No audit in 2018-19

Phase II: Joint audit and evaluation of Green Infrastructure – Electric Vehicles and Alternative Fuels Infrastructure Demonstration Program and Smart Grids Program, planned for completion in 2020-2021

This program will also be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

No evaluations in 2018-19

Phase I: Evaluation of Energy Innovation Program, planned completion in July 2019

Phase II: Joint audit and evaluation of Green Infrastructure – Electric Vehicles and Alternative Fuels Infrastructure Demonstration Program and Smart Grids Program, planned for completion in 2020-2021

Funding will be available to Indigenous groups potentially impacted by the Trans Mountain Expansion Pipeline Project (TMX) and the Line 3 Replacement Program (Line 3) to enhance their capacity to participate in the Indigenous Advisory and Monitoring Committees; to pursue other Committee objectives including those supporting their mandate to provide advice to regulators on environmental, safety, and socio-economic issues related to the performance of the projects and compliance with conditions; and to address other environmental concerns related to the broader pipeline corridor over the full lifecycle of development.

The transfer payment program has non-repayable contributions.

In 2018-19, the Indigenous Advisory and Monitoring Committees (IAMCs) for the Trans Mountain Expansion (TMX) project and Line 3 delivered approximately $7.1M in funding through 70 contribution agreements.

The IAMC for TMX provided approximately $4.7M in contribution funding in 2018-19 to:

• support Indigenous participation on the IAMC;
• provide capacity funding to Indigenous communities in the priority areas of stewardship, protection and meaningful participation;
• support the Indigenous Caucus to provide advice in the National Energy Board (NEB) Reconsideration Hearing of the TMX project; and
• deliver an Indigenous Monitoring Pilot Program that for the first time put Indigenous monitors on-site, working with federal regulators to carry out inspections.

The IAMC for Line 3 provided approximately $2.4M in contribution funding in 2018-19 to:

• support Indigenous participation on the IAMC;
• establish an Indigenous Monitoring Program which trained Indigenous monitors and allowed for joint inspections with the NEB; and
• engage technical resources to conduct reviews of regulatory filings and report results to the IAMC and to potentially impacted Nations across the project.

This program was selected as part of the sample for the 2018-19 Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. In 2018-19, the Continuous Audit found that nine of the ten key financial and monitoring controls are in place for the administration of G&C, and that they are generally working as intended.

For the one key control that was assessed as partially effective, the program needs to develop and implement a formal approach to proponent monitoring commensurate with risk. This will allow the program to follow generally accepted practices identified in the guidance on recipient auditing, as directed by the Departmental Centre of Expertise on Grants and Contributions.

The IAMCs engaged potential applicants through email distribution lists, websites, social media, newsletters, meetings and engagement activities such as regional information sharing sessions for Line 3 and a line wide gathering for TMX.

NRCan engaged recipients to ensure compliance with the requirements of the contribution agreements.

Lower carbon transportation is both an essential component of longer-term decarbonisation of the economy as well as a short-term means for reducing emissions. Coordinated and targeted green infrastructure investments to support electrification and fuel switching in the light-and heavy-duty vehicle sectors correspond to two pillars of the strategy to lower emissions from the Transportation Sector, as outlined in the Pan Canadian Framework for Clean Growth and Climate Change. These investments are required to eliminate barriers that currently impede the adoption of clean transportation choices and to spur the wide-scale deployment of low-carbon vehicles, which will enable further greenhouse gas emission reductions across the transportation sector.

This investment will support the installation of commercially available fast-charging electric vehicle infrastructure and other alternative fuel infrastructure (e.g. hydrogen and natural gas) along highly travelled routes to address consumer and commercial fleets’ concerns regarding the low availability of recharging/refuelling infrastructure, as well as investor concerns regarding the financial risk to investment. This will help accelerate market deployment of electric and alternative fuel vehicles and fuels.

This initiative will use repayable contributions (with Canada providing up to 50% of total project costs) to decrease the risk of investing in electric vehicle and alternative fuel infrastructure. These projects will be monitored for repayments over 10 years, following project completion.

• Green Infrastructure (GI) 1: Has to date resulted in the opening of 134 Electric Vehicle (EV) fast-chargers, 4 natural gas stations and two hydrogen stations
• GI2: Projects are in place to support 526 EV fast chargers, 12 natural gas and 6 hydrogen stations, and by 2024, when the program ends, it will have resulted in a coast-to-coast network of 1,000 EV fast chargers, 22 natural gas stations along freight routes, and 15 hydrogen chargers in metro areas.
• 2019 Request for Proposal (RFP): Proposals currently under review. 2 RFP's remaining (2020, 2021) to ensure program targets are met.

No audits in 2018-19

Joint audit and evaluation of Electric Vehicle and Alternative Fuel Infrastructure Deployment Initiative, planned for completion in September 2019

This program will also be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

No evaluations in 2018-19

Joint audit and evaluation of Electric Vehicle and Alternative Fuel Infrastructure Deployment Initiative, planned for completion in September 2019

• 32 Contribution Agreements signed covering projects in 9 jurisdictions.
• 15 announcements
• Investments with largest EV networks in Canada such as Circuit Électrique (Hydro Québec) and Suncor.

Energy Innovation Program

Electricity Resources

Purpose and Objectives

The Smart Grid program will invest $100 million over four years (2018/19 to 2021/22) to support the deployment of existing smart grid integrated systems (which may include energy storage) and demonstration of promising near-commercial smart grid technologies to reduce greenhouse gas emissions and foster innovation and clean jobs. The program will accelerate the transition to a clean growth economy by better utilizing the existing capacity of electricity assets; increasing the penetration of renewable generation; and, increasing the reliability, resiliency and flexibility of the power system while maintaining cyber security.

Repayability

Demonstration: repayable, if the demonstration leads to a profit within five (5) years following the end of the project.  The requirements for reporting profits will be detailed in the contribution agreement, along with the process for repayment. 

Deployment: repayable, if the deployment leads to a profit within five (5) years following the project commissioning.  The requirements for reporting profits will be detailed in the contribution agreement, along with the process for repayment. 

Budget 2017 allocated $100 million over 4 years, starting April 1, 2018 to support next generation smart grid, storage and clean electricity technology demonstration and deployment projects. The program supports the demonstration of promising, near-commercial smart grid technologies ($35 million), and the deployment of smart grid integrated systems ($65 million).  In 2018-19, the program approved 24 smart grid projects for funding,  signed 11 demonstration and 13 deployment project contribution agreements, and formally announced 7 projects including:

• $1.42M funding to support ENMAX Power’s next generation smart grid demonstration project in Calgary, which will safely send extra renewable electricity generated by customers back into Calgary’s electricity grid for others to use. This innovative solution will also make electricity grids more reliable, laying the conditions for future, small-scale clean energy resources in urban settings, lowering greenhouse gas emissions and removing barriers for customers to adopt renewable energy;
• $5.7M funding to support Saint John Energy’s hybrid demonstration and deployment project that will modernize the electricity grid for Saint John, New Brunswick, which will improve service delivery, reduce pollution and create jobs. The project will develop artificial intelligence to help optimize efficiency and cost effectiveness, ensure a more resilient and reliable power system, provide long-term rate stability to customers, and help to accelerate the switch to clean power; and
• $10.6M funding to support EPCOR’s project in the City of Edmonton that will deploy a 12 MW solar generating facility that integrates with a battery energy storage system and an intelligent management control system to mitigate a capacity shortfall at EPCOR’s Petrolia substation and reduce peak requirements at the E. L. Smith Water Treatment Plant.  The project improves the reliability and resiliency of the system while lowering greenhouse gas emissions and deferring expensive capital grid upgrades.

No audits in 2018-19

Joint audit and evaluation of Green Infrastructure – Electric Vehicles and Alternative Fuels Infrastructure Demonstration Program and Smart Grids Program, planned for completion in 2020-2021

This program will also be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

No evaluations in 2018-19

Joint audit and evaluation of Green Infrastructure – Electric Vehicles and Alternative Fuels Infrastructure Demonstration Program and Smart Grids Program, planned for completion in 2020-2021

Pre-launch activities

• Program design refined through wide-ranging consultations (pre-program launch) by connecting with over 350 stakeholders (utilities, system operators, Provinces and Territories, National Indigenous Organizations;
• informal call for Expressions of Interest (Project Concept Questionnaire) in order to anticipate project submission types and fine tune evaluation process

Launch activities

• Program launched on Jan 15/18, closed on Mar 4/18 with 86 applications received; 74 screened-in as eligible.

Post-launch activities

• 24-kick off meeting with potential funding recipients;
• 20 of 22 due diligence assessments completed;
• 24 agreements signed (out of 30); and
• 7 funding announcements.

The purpose of the Clean Energy for Rural and Remote Communities (CERRC) program is to reduce diesel reliance of rural, remote and Northern communities and off-grid industrial sites. This will be done by helping fund community and industry led renewable energy projects. CERRC has a repayable contributions clause.

CERRC - The Deployment Component, Demonstration Component and Bioheating Component

These program components support Core Responsibility 2, Innovative and Sustainable Natural Resources Development, of NRCan’s Departmental Results Framework (DRF). Projects will increase the number of renewable energy projects in remote communities and off-grid industrial operations, contributing to the sustainability of Canada’s natural resources.

CERRC - Energy Efficiency Component

This program component supports Core Responsibility 2, Innovative and Sustainable Natural Resources Development, of NRCan’s DRF. Projects will increase the total annual energy savings resulting from adoption of energy efficiency codes, standards and practices, contributing to the sustainability of Canada’s natural resources.

CERRC - Capacity Building Component

This program component supports Core Responsibility 2, Innovative and Sustainable Natural Resources Development, of NRCan’s DRF. Projects will increase the number of renewable energy projects in remote communities and off-grid industrial operations, contributing to the sustainability of Canada’s natural resources. This program component also supports Core Responsibility 3, Globally Competitive Natural Resource Sectors. Projects will increase the number of indigenous groups and communities implicated in economic development projects.

The CERRC renewable energy component (bioheat, demonstration and deployment) has completed two rounds of funding applications as of June 2019. In Round 1, the program selected 42 renewable energy projects. The CERRC capacity building component has completed Round 1 and has selected 11 capacity building projects for funding. 53 projects have been selected for funding between the two components. Taken together, these projects cover 84 rural and remote communities across Canada. The program is moving through due diligence and contribution agreement phases with these projects. There are 39 signed contribution agreements between the two components. 

CERRC renewable energy component (bioheat, demonstration and deployment received 106 applications for Round 2 funding. The program has completed the evaluation of these projects and has selected 19 projects, which are moving through the approval process prior to informing applicants. The capacity building component received 92 preliminary proposal applications for Round 2 funding. Successful applicants will submit full proposals.

At this time, no renewable energy projects have been built as construction has only just begun.

No audits in 2018-19

Joint audit and evaluation of Green Infrastructure – Clean Energy for Rural and Remote Communities, planned for completion in 2021-2022

This program will also be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

No evaluations in 2018-19

Joint audit and evaluation of Green Infrastructure – Clean Energy for Rural and Remote Communities, planned for completion in 2021-2022

Following the approval of Round 1 projects for renewable energy and capacity building, CERRC officials contacted each applicant via email to inform them of the results (September 12, 2018). The program offered feedback calls with unsuccessful applicants to review how they could improve their applications (October and November 2018). For successful applicants, program officials conducted a welcoming call and a webinar to explain the due diligence process (October 2018). Throughout the due diligence process, CERRC officials were in close contact with successful applicants via teleconference, email, and in-person meetings (on-going).

Prior to the closing of Round 2 funding (February 26, 2019), the program offered webinars to all interested applicants on the program, the program guide, and the application process itself. Those applicants applying for Round 2 were given the opportunity to submit their applications for an early feedback call prior to the closing date (December 2018). Program officials reviewed these applications and conducted a feedback call with applicants (December 2018).  Applicants were able to review the feedback and resubmit updated applications on the closing date for Round 2.

CERRC has announced 8 projects between the two components.  Where possible, recipients were present at these announcements and they spoke on behalf of their communities.

No audits in 2018-19

Joint audit and evaluation of Green Infrastructure – Emerging Renewables Program, planned for completion in 2020-2021

This program will also be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

No evaluations in 2018-19

Joint audit and evaluation of Green Infrastructure – Emerging Renewables Program, planned for completion in 2020-2021

The Climate Change Adaptation Program, launched in August 2017, currently has 38 cost-shared projects underway. These projects will provide guidance to support adaptation in the mining and Canadian electricity sectors and expand the use of natural infrastructure in coastal management.

Under the Building Regional Adaptation Capacity and Expertise (BRACE) Program, 18 contribution agreements have been established to support regions in developing the expertise and capacity to adapt to the impacts of climate change.

No audits in 2018-19

This program will be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

No evaluations in 2018-19

Evaluation of Climate Change Adaptation, planned for completion in June 2020

During the BRACE call for proposals, NRCan reached out to the provinces to explain program objectives and eligibility requirements.

The programs continue to engage recipients through regular meetings (in-person and by telephone) and site visits. Recipients were invited to present their projects to the Adaptation Platform Working Groups to increase awareness of the work and identify potential collaborations among projects.

Forest Sector Competitiveness

Fibre Solutions

The Forest Innovation Program (FIP) supports the forest sector’s innovation agenda and priorities needed to continue the transformation of Canada’s forest sector to ensure its competitiveness.

Expanding Market Opportunities (EMO) aims at maintaining and growing international wood product markets, expanding wood use in the North American non-residential and mid-rise construction market, and promoting the strong environmental credentials of Canadian forest products.

These transfer payment programs provide non-repayable contributions.

Results achieved for FIP:

2018-2019 highlights:

From April 1, 2018 to March 31, 2019, under the Transformative Technologies component of FIP, 8 new processes and products were developed by FPInnovations, Canada’s national forest research institute. Examples include:

• Developed a new, CF-based mesh backing to replace the metal backings that are used in heating, ventilation and air conditioning (HVAC) filters. This is an important step towards the manufacture of completely recyclable HVAC filters and has generated interest from both Members and Industry.
• Developed innovative wood sound absorber panels that use the components of engineered wood flooring (EWF). The preliminary economic analysis indicates that the acoustic products made from EWF have the potential to compete with existing commercial products and offer the wood flooring industry an opportunity to diversify its product offering.
• Produced prototypes of semi-transparent thin films from cellulose filaments with improved barrier properties (oxygen and water vapor resistance as well as liquid water repellency) that are attracting increasing interest from both member companies and industrial partners for the scale-up (roll-to-roll production) of CF thin films that can be used “as it is” or laminated to polymer films in applications such as liquid packaging and electrical insulation.
• Identified extracts that show good activity against the pathogens involved in two of the most prominent diseases of canola (blackleg and sclerotinia stem rot). The current market for the fungicides used for canola diseases was estimated between $159 and $188 million in Canada.

Past achievements on TMP-Bio, a game-changing technology developed by FPInnovations that converts wood chips into sugar and lignin platform biochemical. These achievements have resulted in a nine-party consortium formed in November 2017, to build a pilot-scale plant for the TMP-Bio process in Thunder Bay, Ontario. TMP-Bio can potentially position the Canadian forest industry as a key player in the bioeconomy by enabling the production of everyday products using renewable bio-chemicals. Construction of the TMP-Bio pilot plant at Resolute Forest Products’ Thunder Bay kraft mill is complete, and commissioning started in Q4 of 2018-19.

Results achieved for EMO:

Canadian wood product exports to targeted offshore markets (China, Korea, Japan and the European Union 28 countries) exceeded performance targets in 2018 - reaching $3.7 billion. This is an increase of 19.9% from 2011 base year value of $3.1 billion.

2018-19 highlights:

• Supported the construction of 100 Canadian–style wood-frame town home in Tianjin, China, as part of the Sino-Canadian Low Carbon Eco-district project. The town homes achieved Super-E certification, a standard developed by Natural Resources Canada (NRCan). This initiative was the result of a Memorandum of Understanding between the Ministry of Housing and Urban Rural Development and NRCan’s Canadian Forest Service to cooperate on the development of eco-cities. As of fiscal 2018-19, EMO provided $840,699 towards the planning, design and construction of these wood-frame townhomes.
• A Canadian wood construction innovation, known as Midply shear wall, received approval by Japan’s Ministry of Land, Infrastructure, Transportation and Tourism (MLIT) for use in post and beam applications. This MLIT approval will open doors for Canadian wood products in Japan's largest segment of housing construction. Until now Midply, made from Canadian softwood dimension lumber and oriented strand board, was limited to Japan's 2x4 construction market of approximately 120,000 housing starts annually. The inclusion of post and beam represents a potential addition of about 400,000 housing starts annually.
• Softwood Lumber Action Plan funding provided by EMO, allowed BC Wood to work with the Korean Wood Builders Association to deliver a one-day seminar featuring two Canadian interior finishing experts. A first-of-its-kind, the seminar addressed a longstanding request to learn how to use and design with Canadian wood finishing materials.  Response exceeded expectations with over 170 Korean builders, architects, and designers in attendance.

Canadian wood products exports to emerging markets (India and 14 Middle Eastern countries) continue to show fluctuations. In 2018, exports reached $53.7 million, representing a decrease of 46% from the 2011 base year value of $99.3 million. However, these markets continue to show great potential for growth, and market presence is essential to access economic benefits in the medium to long-term.

• In India, for example, 36 training workshops attracted 1929 architects, interior designers, manufacturers and importers. In addition, the first Canadian wood importer and stockists meet and greet was attended by 29 domestic stockist, 22 importers and representatives from 8 lumber companies.

2018-19 North America highlights:

Between April 1, 2018 and March 31, 2019 Wood WORKS! technical advisors funded through the EMO NA program influenced 233 construction projects across Canada to use more structural wood products resulting in incremental wood sales of $154 million; and, delivered 46,500 hours of continuing education to Canadian builders, designers and specifiers for an average of 2.1 hours of education per person trained.

No audits in 2018-19

This program will be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

No evaluations in 2018-19

Evaluation of Expanding Market Opportunities / Forest Sector Competitiveness, planned for completion in October 2019.

Evaluation of the Forest Innovation Program, planned for completion in October 2019.

On November 1, 2018, EMO issued an annual call for proposals (CFP) by email and through its website to all applicants registered in the program’s online system. Each year the Call email includes the Handbook for Applicants and the Evaluation Process and Criteria.

Outside of the CFP period, EMO staff ramped up efforts to reach out to potential new provincial funding partners and new recipients to discuss opportunities for greater engagement. This included working with forest industry associations to bring in expert speakers to address members.

Lastly, throughout the fiscal year, Program Officers provide funding recipients with guidance on projects and related budgets.

The objective of the Investments in Forest Industry Transformation (IFIT) Program is to support transformations that will make the forest industry more economically viable and environmentally sustainable. The objective will be achieved by investing in innovative technologies that lead to a more diverse, higher-value product mix including bioenergy and renewable power, as well as biomaterials, biochemical and next generation building products.

The Program will fund innovative projects that are using transformative technologies at the pilot and commercial scales that direct wood fibre and by-products from wood processing into higher value usages which: 1) increase the total revenues available from a log; 2) diversify product lines for the forest industry, stabilizing economic performance; and 3) produce renewable energy and other products that are beneficial to the environment. By providing funding to Canadian forest firms for capital investments in bioenergy and bio-product industrial processes to advance these technologies towards full, commercial-scale implementation, this Program will broaden and build upon previous investments in forest sector transformation.

This transfer payment program does not have any repayable contributions.

Over the past year, ten projects were implemented at facilities in Canada that represent first-in-kind innovations in advanced building products, new bio-chemicals, biomaterials and process improvements. These include projects such as:

• The first Cellulose Filaments commercial scale production plant by upgrading an existing facility;
• a demonstration process that allows the hemicellulose liquor produced at a pulp & paper mill to be transformed into a value-added biostimulant for agricultural applications as well as used as a source of renewable energy for mill operations;
• an investment  to increased drying capacity through technology that doesn’t involve adding a source of atmospheric emissions; and
• an automated cedar shingle plant implementation, increasing annual production and a better recovery of the raw material and a ratio of high grade shingle higher.

No audits in 2018-19..

This program will be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

No evaluations in 2018-19

Evaluation of the Forest Sector Innovation Programs, planned for completion in October 2019

The Minister of Natural Resources is responsible under section 214 of the Canada-Newfoundland and Labrador Atlantic Accord Implementation Act to make payments to the province of Newfoundland and Labrador equivalent to the revenue amounts received by Canada in relation to offshore oil and gas activities in the Canada-Newfoundland and Labrador offshore. The federal Newfoundland Offshore Petroleum Resource Revenue Fund Regulations prescribe the time and manner for making the transfer payments. The funds are drawn from the Consolidated Revenue Fund.

This transfer payment program does not have any repayable contributions.

Payments to the Fund were included in the scope of the 2018-19 Continuous Audit of Offshore Revenues and Transfers. As part of NRCan’s continuous audit framework, its Audit and Evaluation Branch conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. In 2018-19, the Continuous Audit found that 18 of 22 key financial and monitoring controls examined were effective, while four controls were partially effective.

Audit of Management of Federal-Provincial Offshore Agreements, planned for completion in 2020-2021

The Minister of Natural Resources is responsible under section 219 of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act to make payments to the province of Nova Scotia equivalent to the revenue amounts received by Canada in relation to offshore oil and gas activities in the Canada-Nova Scotia offshore. The federal Nova Scotia Offshore Revenue Account Regulations prescribe the time and manner for making the transfer payments. The funds are drawn from the Consolidated Revenue Fund.

This transfer payment program does not have any repayable contributions.

Payments to the Account were included in the scope of the 2018-19 Continuous Audit of Offshore Revenues and Transfers. As part of NRCan’s continuous audit framework, its Audit and Evaluation Branch conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. In 2018-19, the Continuous Audit found that 18 of 22 key financial and monitoring controls examined were effective, while four controls were partially effective.

Audit of Management of Federal-Provincial Offshore Agreements, planned for completion in 2020-2021

NRCan pays 50% of the operating costs of the Canada-Newfoundland and Labrador Offshore Petroleum Board. The province pays the other 50%. This is done pursuant to section 27 of the Canada-Newfoundland and Labrador Atlantic Accord Implementation Act. The funds are drawn from the Consolidated Revenue Fund. Cost recovery regulations put in place in 2016 allow the Board to cost recover up to 100% of eligible costs from industry, which are remitted to the Government of Canada and the province of Newfoundland and Labrador on a 50-50 basis.

This transfer payment program does not have any repayable contributions.

Payments to the Board were included in the scope of the 2018-19 Continuous Audit of Offshore Revenues and Transfers. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. In 2018-19, the Continuous Audit found that 18 of 22 key financial and monitoring controls examined were effective, while four controls were partially effective.

Audit of Management of Federal-Provincial Offshore Agreements, planned for completion in 2020-2021

Phase II of the Spruce Budworm Early Intervention Strategy (EIS) is a research program investigating a new pest management approach that could avoid an outbreak and the associated socio-economic impacts in Atlantic Canada, where forestry is one of the largest economic sectors.

Phase II includes a suite of integrated research activities and operational insecticide applications to validate the early intervention strategy’s scientific foundation, enhance its efficacy for any emerging outbreaks of spruce budworm (SBW), and protect the region’s forests.

Through the Forest Pest Risk Management Program, the initiative will implement and validate a novel forest pest management approach supported by science knowledge and tools to address a forest pest issue that could have significant negative impacts on Canadian forest values and resources. This approach will be available to forest managers across Canada for application to any impending outbreaks of spruce budworm in order to mitigate risks to forest resources or other related values.

This transfer payment program provides non-repayable contributions.

Year 1 of the Early Intervention Strategy for Spruce Budworm – Phase 2 research program is complete, with the launch of 10 SBW research projects and approximately $7M invested in spruce budworm research in Eastern Canada.

All of the targeted forest areas were treated successfully based on priority as determined by the Healthy Forest Partnership Steering Committee (220,000 ha were treated in New Brunswick (NB) in 2018). For the first time since 2014, SBW populations are down in New Brunswick. Population monitoring indicates a 90% projected decline in hotspots or treatment areas in NB from the previous year. As a result, the EIS program treatment area for 2019 is approximately 10,000 ha.

SBW populations remain below the outbreak threshold in 100% of EIS treated forest areas. There is minimal tree defoliation from SBW in NB, and as such there has been no impact on the region’s wood supply or economy.

Year 1 research results were shared through the Heathy Forest Partnership (HFP) and with the general public through meetings, presentations, publications, and online through the HFP website and social media.

No audits in 2018-19

Joint audit and evaluation of Spruce Budworm Early Intervention Strategy – Phase 2, planned for completion in 2021-22

This program will also be considered for potential selection in the samples for future Continuous Audit of Grants and Contributions. As part of Natural resources Canada’s (NRCan) continuous audit framework, NRCan’s Audit and Evaluation Branch (AEB) conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The areas for continuous auditing are selected based on AEB’s annual risk-based planning process.

No evaluations in 2018-19

Joint audit and evaluation of Spruce Budworm Early Intervention Strategy – Phase 2, planned for completion in 2021-22