2017–2018 Departmental Results Report

Raison d’être, mandate and role: who we are and what we do

Raison d’être

NRCan works to improve the quality of life of Canadians by ensuring that our natural resources are developed sustainably, providing a source of jobs, prosperity and opportunity, while preserving our environment and respecting our communities and Indigenous peoples.

Mandate and role

The Minister of Natural Resources has responsibilities in relation to 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, the Forestry Act, the Energy Efficiency Act and the Extractive Sector Transparency Measures Act. The Department also works in areas of shared responsibilities with provinces, which includes the environment, public safety, economic development, science and technology, and consultations with Indigenous peoples. To fulfil its responsibilities, the Department relies on a number of instruments (e.g. policy, regulation, statutory transfers, grants and contributions) and key activities (e.g. science and technology, partnerships and communications).

NRCan has offices and laboratories across the country. About one-third of our employees are located in the National Capital Region, with the remainder working in regional offices: Atlantic Canada, Quebec, Ontario, the Western and Pacific Regions and Northern Canada.

For more general information about the Department, see the “Supplementary information” section of this report. For more information on the Department’s mandate, see the NRCan website.

Operating context and key risks

Operating context

Canada’s wealth of natural resources, which include renewable and non-renewable energy, minerals and metals, and forests, are key to our economic prosperity and provide Canadians with good jobs and business opportunities. In 2017, Canada’s natural resource sectors accounted for approximately 17% of Canada’s nominal gross domestic product and directly or indirectly provided 1.8 million jobs.

NRCan works to advance the prosperity of Canada’s natural resource sectors while also achieving environmental results such as reduced greenhouse gas (GHG) emissions through sustainable practices. In fulfilling its mandate, the Department faced a number of domestic and global challenges in 2017–18.

First, the emergence of large and growing export markets for natural resources, such as China and India, is increasing the overall demand for natural resources and putting positive pressure on commodity prices. Together with demand from the United States, which continues to be generally strong, and specific measures on our softwood lumber exports, this upward trend in demand gives Canada opportunities for increasing our exports and driving further economic growth and job creation.

Secondly, as Canada's natural resource industries work to gain their share of the growing global market, they face an evolving competitive landscape marked by cyclical downturns in pricing, changing supply and demand patterns in the United States and beyond, and regulatory changes and new policy approaches to climate change and carbon pricing. In response, in 2017–18, NRCan worked with international partners to promote investment in Canada’s natural resource sectors and collaborated with Canadian industry to research, develop and test innovative approaches, diversify products and services, and leverage knowledge and clean technologies to ensure we stay competitive. In addition, the Department continued to work to ensure that the right structures are in place—including resource management systems, environmental and regulatory regimes, and accessible public geoscience—to support Canada’s competitive advantage in the natural resource sectors.

Thirdly, 2017–18 saw a continued increase in competition in natural resource markets worldwide, accompanied by a greater emphasis on sustainability and environmental stewardship among international governments. NRCan took steps to ensure Canada has sustainable, cleaner, and competitive natural resource sectors to drive towards a low carbon future. Through its scientific research and partnerships, the department continued to support innovation in the development of clean technologies.

Also in support of the transition to a low-carbon future, NRCan continued its efforts to minimize the carbon footprint of conventional energy sources by supporting initiatives to increase the supply of clean and renewable energy and by promoting energy efficiency. The Department engaged Canadians in a national dialogue called Generation Energy and helped establish the Generation Energy Council to make recommendations to accelerate Canada’s transition to a competitive, reliable, affordable, low-carbon energy future.

Lastly, climate change continued to affect the sustainability and competitiveness of our natural resource sectors (e.g., contributing to the increased threat of wildfires and destructive pests that can have devastating effects on Canada’s forest sector). Through its risk management programs, NRCan helped to manage climate-related and other threats and emergencies.

Key risks

NRCan monitors its risks on an ongoing basis to ensure that it can effectively deliver its mandate. The following table outlines the Department’s key external risks and mitigation strategies identified in the 2017–18 Departmental Plan. While these risks do not lend themselves to being fully addressed in the short term, as highlighted below, the Department made progress in responding to these risks.

Risks	Mitigating strategy	Link to the Department’s programs	Link to mandate letter commitments or to government-wide and Departmental priorities
Climate Change and Adaptation Mitigation
If energy and natural resource decisions do not support Canada’s transition to a low carbon economy and adoption of adequate adaptation measures, Canada’s climate change commitment to reduce GHG emissions by 30 % may not be met, the competiveness of our natural resource sectors may be undermined and communities may become increasingly vulnerable to the impacts of climate change.	In 2017–18, NRCan’s risk responses included: Continuing to invest in infrastructure to support the transition to a cleaner transportation system and make low-carbon vehicles more attractive to Canadians, by launching Phase II of the Electric Vehicle and Alternative Fuel Infrastructure Program. Phase II will provide $120 million over four years in support of the establishment of a national coast-to-coast network of EV charging stations, natural gas stations, and hydrogen stations in urban centers; demonstration projects that address barriers to the deployment of innovative and next-generation electric vehicle charging infrastructure; and the development of enabling codes and standards; The Smart Grid program, launched in January 2018, will provide funding for utility-led projects to reduce GHG emissions, better utilize existing electricity assets and foster innovation and clean jobs. Up to $100 million over four years is available for the demonstration and deployment of smart grid technologies. This new program expects to distribute funds in fall 2018; The Emerging Renewable Power program, launched in January 2018, will expand the portfolio of commercially viable renewable energy sources available to provinces and territories as they work to reduce GHG emissions from their electricity sectors. This program has $200 million over five years to fund utility-scale projects. This new program expects to distribute funds in fall 2018; The Clean Energy for Rural and Remote Communities program, launched in February 2018, will reduce the reliance of rural and remote communities on diesel fuel for heat and power by providing funding to clean energy projects in those communities. As Indigenous communities comprise the majority of the rural and remote communities that rely on diesel fuel as their primary or back-up source of electricity and heat, this initiative is aligned with the Government of Canada's commitment to a renewed relationship with Indigenous peoples. Developed in tandem with Crown-Indigenous Relations and Northern Affairs Canada's Northern Responsible Energy Approach for Community Heat and Electricity (REACHE) Program, this initiative will help deploy new renewable electricity and BioHeat systems, test new technologies and help build local capacity in communities. This program has $220 million over six years and includes a capacity-building component to help communities towards their energy goals. This program also liaises with other federal departments to strengthen collaboration on Pan-Canadian Framework (PCF) on Clean Growth and Climate Change goals. This new program expects to distribute funds in fall 2018; and Collaborating with provincial and territorial counterparts on the Canadian Energy Strategy and to advance work on the PCF. Specific collaborative actions are being pursued on energy efficiency, delivering clean energy to people, and technology and innovation. In addition, NRCan is working closely with Environment and Climate Change Canada (ECCC), Infrastructure Canada (INFC) and other government departments to assess and advance progress on initiatives related to the PCF.	1.1 Market Access and Diversification 2.1 Energy-Efficient Practices and Low-Carbon Energy Sources 2.2 Technology Innovation 3.1 Protection for Canadians and Natural Resources	Government Priorities: Environment and Climate Change Mandate Letter: Develop a Canadian energy strategy with provinces and territories Make strategic investments in the clean technology sector
Clean Technology and Innovation in the Natural Resource Sectors
Lack of innovation may reduce job creation and economic growth in Canada’s natural resource industries and clean technology sector	In 2017–18, NRCan managed this risk by: Funding programs to advance research and development and the deployment of clean technology in Canada’s natural resource sectors. This includes improving energy efficiency and reducing the environmental impacts of energy production and use. Budget 2017 committed $2.3 billion to support Canada’s clean technology sector, which is investing in clean technology and innovation to reduce emissions, and support clean growth; Launching the Clean Growth Program in November 2017 that provides $155 million to co-fund innovative clean technology projects (from R&D to commercial scale demonstration) with provinces and territories in the energy, mining and forestry sectors. Projects focus on addressing pressing environmental challenges and economic opportunities facing Canada’s natural resource operations, which will reduce environmental impacts, while enhancing competitiveness and creating jobs. This flagship program implements a new collaborative approach of doing business by leveraging investments in publicly funded research, research centres and P/T funding programs to better mobilize clean technologies; Continuing to play a leadership role as a member of the Mission Innovation Steering Committee by assuming the role of Chair in 2018 and participating in seven innovation challenges; Establishing partnerships with industry through the Clean Technology and Resources of the Future Economic Strategic Tables to support innovation in the natural resource sectors; and Continuing to work with the Minister of Finance to explore opportunities to enhance existing tax measures to generate more clean technology investments.	1.2 Innovation for New Products and Processes 2.1 Energy-Efficient Practices and Lower-Carbon Energy Sources 2.2 Technology Innovation	Government Priorities: Environment and Climate Change NRCan Mandate Letter: Make strategic investments in the clean technology sector Enhance Canada’s tax measures to generate and attract more clean technology investments
Energy Infrastructure
If the public and Indigenous peoples do not have confidence in Canada’s ability to expand its infrastructure in a safe and environmentally sound manner, then Canada’s ability to grow its economy, increase interconnectedness, and diversify markets may be limited.	In 2017–18, NRCan’s risk responses included: Concluding several important milestones in its comprehensive review of environmental and regulatory processes: Received the National Energy Board Modernization Expert Panel’s Report; Released—together with ECCC, the Department of Fisheries and Oceans Canada (DFO) and Transport Canada—a Discussion Paper on Environmental and Regulatory Reviews to inform legislative changes as part of the comprehensive review; and Introduced legislation that repeals and replaces the National Energy Board Act and Canadian Environmental Assessment Act, 2012 with a new Canadian Energy Regulator Act and Impact Assessment Act, and which also amends the Navigation Protection Act.	1.1 Market Access and Diversification 1.3 Investment in Natural Resource Sectors 2.2 Technology Innovation 2.3 Responsible Natural Resource Management 3.1 Protection for Canadians and Natural Resources	Government Priorities: Environment and Climate Change NRCan Mandate Letter: Develop a Canadian energy strategy with provinces and territories Modernize the National Energy Board Review Canada’s environmental assessment processes

In 2017-18, NRCan monitored its risk environment, including the global and domestic context within which the Department operated, and implemented strategies to reduce the impact of risks on Canadians, the Department and stakeholders.

The Department worked to reduce the impact of climate change on Canadians, their communities and the environment. NRCan also fostered the development of innovative solutions to the most pressing environmental issues in support of the transition to a low-carbon economy. Lastly, the Department supported environmentally sound approaches to building and improving the secure infrastructure needed for transporting Canada’s energy resources to domestic and international markets, an essential element in maintaining public trust and confidence, including among Indigenous communities.

Results: what we achieved

Programs

Program 1.1: Market Access and Diversification

Description

Canada’s natural resource sectors face two key barriers to market access and diversification: 1) trade and policy barriers, and 2) lack of awareness of Canada’s natural resource products and public confidence. The objectives of this program are to break down those barriers and support the development and expansion of markets for Canadian natural resource products by making information available to Canadians, supporting negotiations to reduce trade barriers, and ensuring that regulations are up to date. This helps maintain natural resource sectors’ access to existing markets and increases their access to new market segments.

Results

In 2017–18, the Department delivered a range of policies and outreach activities to address barriers to market access and diversification, support the development and expansion of Canada’s natural resource products, and bolster public confidence in the natural resource sectors.

NRCan supported market access and diversification of Canada’s natural resource sectors by:

In 2017–18, the Department delivered a range of policy and outreach activities to make information available to Canadians, engage Canadians on the future of natural resources, bolster public confidence in Canada’s natural resource sectors, and improve relationships with, and outcomes for, Indigenous peoples. For example, NRCan:

Results achieved

Expected results	Performance indicators	Target	Date to achieve target	2017–18 Actual results	2016–17 Actual results	2015–16 Actual results
Natural resource sectors have increased access to existing markets	Natural resource sectors have access to markets as defined by exports of energy products, mineral and metal products and forest products	Meet or exceed baseline of ten-year average of Canada's share of United States and global imports	March 31, 2018	Results: Achieved In 2017-18, Canada’s share of U.S. Natural Resource Imports for 2017-18 was 25.2%, above the target of 23.7%, the 10-year baseline average from 2007-2016. The overall value of American natural resource imports from Canada in 2017 was $172.3 billion, below the 2008 value of $197.2 billion. In terms of global imports, Canada’s share amounted to 4.4%, in line with the 10-year baseline average of 4.4% from 2007-2016.Footnote 1	Results: Achieved In 2016–17, Canada's share of American natural resource imports was 23.8%, a minor variation against the 10-year baseline average 23.7%. There was a decline in the value of U.S. natural resource imports from Canada in 2016–17, largely a result of lower commodity prices. The overall value of American natural resource imports from Canada in 2016 was $110.5 billion, below the 2007 value of $151.8 billion.	Results: Achieved In 2015–16, Canada’s share of American natural resource imports was 25.1% (1.5% above the 10-year 2005–14 baseline average of 23.6%). The overall value of American natural resource imports from Canada in 2015 was $164.3 billion, above the 2006 figure of $95.2 billion.
Natural resource sectors have increased access to new market segments	Natural resource sectors have access to new market segments as defined by exports of energy products, mineral and metal products and forest products	Meet or exceed baseline of ten-year average of Canada’s share of China and India’s imports	March 31, 2018	Results: Achieved In 2017-18, Canada’s share of Chinese natural resource imports was 1.4% , close to the target of 1.7% (10-year baseline average from 2007- 2016).Footnote 2 The value of China’s imports from Canada was $11.4 billion, above the 2008 value of $7.2 billion. Canada’s share of India’s Imports rose to 1.2%, well above the target of 0.6%, the10-year baseline average from 2007-2016.The value of India’s imports from Canada was $4 billion in 2017-18.Footnote 3	Results: Achieved In 2016-17, Canada's share of Chinese natural resource imports was 1.6%, close to the 10-year baseline average of 1.7% (2007-16). The overall value of Chinese natural resource imports from Canada in 2016 was $7.7 billion, above the 2007 value of $6.0 billion.	Results: Achieved In 2015-16, Canada’s share of Chinese natural resources imports was 1.7%, stable against the 10-year (2005-14) baseline average. The overall value of Chinese natural resource imports from Canada in 2015 was $11.6 billion, nearly three times the 2006 figure of $4.3 billion.

Budgetary financial resources (dollars)

2017–18 Main Estimates	2017–18 Planned spending	2017–18 Total authorities available for use	2017–18 Actual spending (authorities used)	2017–18 Difference (actual minus planned)
60,190,597	60,190,597	82,822,778	69,193,650	9,003,053

The increase between Planned spending and Actual spending is mainly attributed to additional funding received during the year through Supplementary Estimates for the Softwood Lumber Action Plan and the Indigenous Advisory and Monitoring Committees for Energy Infrastructure projects, as well as wage increases due to collective bargaining.

Human resources (full-time equivalents)

2017–18 Planned	2017–18 Actual	2017–18 Difference (actual minus planned)
267	304	37

The increase between Planned FTEs and Actual FTEs is mainly attributed to the hiring related to funding received through Supplementary Estimates.

Information on NRCan’s lower-level programs is available in the GC InfoBase.

Program 1.2: Innovation for New Products and Processes

Description

Optimizing the use of Canada's natural resources and the processes by which they are developed would improve the productivity and competitiveness of natural resource sectors. The objective of this program is to maximize productivity and competitiveness by encouraging the adoption of new technologies and processes and the development of new products. These objectives are achieved by conducting and supporting research and development and by delivering frameworks and policies for, and demonstrations of, new applications, technologies, processes, and products.

Results

In 2017–18, NRCan advanced the development and implementation of new innovative technologies, processes and tools to enhance sustainability and promote economic growth. This was achieved in collaboration with provincial and territorial governments, Indigenous peoples, industry and other stakeholders.

In the forest sector, NRCan supported economic growth through innovation by:

• Facilitating the Canadian Council of Forest Ministers in ratifying a Forest Bioeconomy Framework for Canada in September 2017. The Framework’s objective is to promote economic growth through the development of sustainably managed forest-based resources into innovative value-added products and services;
• Supporting economic development for Indigenous peoples by funding 30 projects under the Indigenous Forestry Initiative (IFI)as part of Canada’s Softwood Lumber Action Plan (SLAP). In 2017–18, the SLAP provided an additional $10 million to the IFI to support forest-based economic development and clean growth technology across Canada. This funding supported economic development projects of 35 Indigenous communities and regional organizations in the areas of environmental stewardship, forest resource management and use, and participation in the forest bioeconomy;
• Selecting proposals for the Investments in Forest Industry Transformation Program that will help recipients develop innovative technologies in forest product facilities across Canada, thus increasing the forest product sector’s economic and environmental sustainability and competitiveness. The program received $55 million in 2017;
• Supporting research, development and technology transfer activities in Canada’s forest sector to advance Government of Canada priorities in forest sector innovation and growth, NRCan funded 17 projects, valued at $1.2 million, under the Forest Innovation Program (FIP);
• Providing research funding to FPInnovations, through the FIP to enable the building of a large-scale Thermal mechanical pulp (TMP)-Bio Plant on the site of a Resolute Forest Products mill in Thunder Bay, Ontario. TMP-Bio is a game-changing technology that converts wood chips traditionally used in newsprint production into sugar and lignin and has the potential to position the Canadian forest industry as a key player in the bioeconomy;
• Co-leading a biomass harvesting research project, focusing on the effects of biomass harvesting in partial harvest systems on stand-level productivity and biodiversity with the Ontario Ministry of Natural Resources and Forestry and the Canadian Wood Fibre Centre; and
• Collaborating on the NSERC Collaborative Research and Development project, AWARE, that uses Enhanced Forest Inventory to improve forest sector productivity and the sustainable management of forest values such as timber, water, and habitat. AWARE involves seven industrial partners, five provincial government partners, and researchers and graduate students from nine Canadian universities.

In the mining sector, NRCan participated in initiatives that increased productivity, improved efficiency and protected the environment by:

• Demonstrating five technologies to increase productivity, including synthetic hoist cables, a performance evaluation of new mining equipment (MinRail), a plasma torch for mine use for rock breaking without explosives, sensors for soft rock deformation, and the beginning of field-testing of a new rock bolt sensor for monitoring bolt rock integrity; and
• Developing new, patent-pending technologies to decrease capital and operating costs, and environmental impacts, including two processes to produce ferrochrome from chromite ore and a purification process for rare earth element recovery.

In the area of geospatial data, NRCan encouraged the adoption of innovative technologies by:

• Delivering a new geospatial tool that allowed future RADARSAT Constellation Mission (RCM) users to stimulate the entire spectrum of data provided by the three-satellite configuration. This tool has permitted government, industry, and academia to have access to greater coverage of Canada’s landscape to facilitate maritime surveillance, disaster management and ecosystem monitoring;
• Advancing Spatial Data Infrastructure (SDI) by enabling agreements on technology standards, institutional arrangements, and policies that will assist in the discovery and use of geospatial information. This includes developing and releasing national guidelines on the acquisition of airborne LiDAR imagery, used by government and industry to measure landscapes, forests and human-built infrastructure down to the centimetre-scale;
• Completing projects related to Smart Cities and Sensor Web – the Internet of Things through the GeoConnections contribution agreements program.
• Developing a Strategic Framework on Geospatial Information and Services for disasters, which was adopted by the United Nations Global Geospatial Information Management Committee of Experts.

Results achieved

Expected results	Performance indicators		Target	Date to achieve target	2017-18 Actual results	2016–17 Actual results	2015–16 Actual results
Natural resource sectors increase production of new products and processes	Number of new products and processes resulting from NRCan information		2 per year	March 31, 2018	Results: Achieved Nine new products were developed based on NRCan information: North America’s largest contiguous coppice willow plantation was established to manage the City of Calgary’s biosolids waste stream; An economic assessment of the Western Red Cedar industry in BC was conducted; Decision support tools derived from the Enhanced Forestry Inventory were applied to improve digital soil mapping; FastTRAC delivered genomic selection for specific breeding programs and operating environments; Testing of a synthetic hoist cable to enable economical ore hoisting from deep mines; New mining equipment (MinRail) was evaluated to enable access to resources in shallow-angle ore deposits; A plasma torch for rock breaking in mines without explosives is underway; Development of a new instrument to measure borehole closure is underway to monitor the behaviour of rock in soft and hard rock mines; and Field testing of a new rock bolt sensor is underway.	Results: Achieved Two new products were developed based on NRCan information: One new Canadian Standards Association (CSA) standard on cellulose nanomaterials was developed to improve the quality of the end product. One new regulatory standard for the International Movement of Wood was developed to help prevent the movement of pests.	Results: Achieved Two new products were developed based on NRCan information: A database of Canada’s biomass feedstock characteristics and associated modeling tools, to which entrepreneurs and industry now have access; and, An evidence-based process for forest managers to mitigate the effects of root rots on high-value timber.
-	R&D expenditures in natural resource sectors, specifically total intramural R&D expenditures in energy, mining and forest sectors		Meet or exceed a rolling ten-year baseline average of Canada's total intramural R&D expenditures in energy, mining and forestry sectors.	March 31, 2018	Results: Not Achieved In 2017, business enterprise R&D expense intentions for the energy, mining and forest sectors were $1.3 billion, below the 2008 figure of $2.4 billion. These natural resource sector intentions accounted for 7.7% of total industry R&D spending, lower than the 10-year baseline average of 13.1%. R&D spending levels are affected, in part, by commodity prices. Recent R&D expenditure declines are largely concentrated in the petroleum sector, but were also observed in the forestry and mining sectors.	Results: Not AvailableFootnote 4 In 2016, business enterprise R&D expense intentions for the energy, mining and forest sectors were $1.7 billion, below the 2007 figure of $2.1 billion. These natural resource sector intentions accounted for 9.7% of total industry R&D spending, which is lower than the 10-year baseline average of 12.6%.	Results: Achieved In 2015, business enterprise R&D expense intentions for the energy, mining and forest sectors were $2.1 billion, slightly below the 2006 figure of $2.3 billion. However, these natural resource sector intentions accounted for 13.3% of total industry R&D spending, slightly above the 10-year baseline average of 12.0%.
Methodologies, policies, strategies, plans and standards are collaboratively used by governments and private sector organizations in the development of new innovative and value-added geospatial applications		Number of formally adopted methodologies, policies, strategies, plans and standards generated from collaborative activities and participation	Increase in the number of methodologies, polices, strategies, plans and standards generated from collaborative activities and participation in 2016-17 and compared to the 2015-16 baseline year	March 31, 2018	Results: Achieved Six new tools were developed: Strategic Framework on Geospatial Information and Services for Disasters; Two international geospatial standards; Recommended guidelines for establishment of future Open Smart Cities; The creation of Internet of Things (IoT) based smart cities sensor networks for Canadian cities and Arctic communities; and National guidelines on the acquisition of airborne LiDAR imagery.	Results: Achieved Three new tools were developed. This number will be used as the baseline for future reporting years.	Results: Not available Performance indicator did not exist in 2015-16

Budgetary financial resources (dollars)

2017–18 Main Estimates	2017–18 Planned spending	2017–18 Total authorities available for use	2017–18 Actual spending (authorities used)	2017–18 Difference (actual minus planned)
109,154,844	109,154,844	119,804,678	118,506,415	9,351,571

The increase between Planned spending and Actual spending is mainly attributed to additional funding received during the year through Supplementary Estimates for the Softwood Lumber Action Plan as well as wage increases due to collective bargaining.

Human resources (full-time equivalents)

2017–18 Planned	2017–18 Actual	2017–18 Difference (actual minus planned)
289	334	45

The increase between Planned FTEs and Actual FTEs is mainly attributed to the hiring related to funding received through Supplementary Estimates.

Information on NRCan’s lower-level programs is available in the GC InfoBase.

Program 1.3: Investment in Natural Resource Sectors

Description

Investing in the development of natural resources is costly and risky due to inherent uncertainties in the potential economic viability of natural resource projects. Many factors must be considered when deciding whether to develop a natural resource project. In some cases, limited information may make it difficult for investors and/or companies to assess potential opportunities. The objective of this Program is to encourage investment in the natural resource sectors by increasing industry's knowledge of opportunities, regulations and obligations. This ensures that a more accurate assessment of the expected benefits of an investment can be made and subsequently compared to its costs and risks, thereby allowing for a more comprehensive investment decision. This objective is achieved by providing funding and information on the factors that determine the potential economic viability of natural resource projects.

Results

In 2017–18, NRCan facilitated investment in the energy, forestry, and mining sectors by continuing to support regulatory reform aimed at addressing impact assessment of major development projects in a manner that protects our environment, respects Indigenous rights, and rebuilds public trust—all while ensuring good projects go ahead and our energy resources get to markets responsibly.

On June 20, 2016, the Government of Canada launched a comprehensive review of environmental and regulatory processes, including a review of the Canadian Environmental Assessment Act, the National Energy Board Act, the Fisheries Act, and the Navigation Protection Act, that culminated in the tabling of legislation in February of 2018. NRCan worked closely with other government departments to prepare new and amended environmental and regulatory legislation, which progressed to the Standing Committee on Environment and Sustainable Development by the end of the 2017–18 fiscal year. Key milestones in 2017–18 for NRCan included:

Results achieved

Expected results	Performance indicators	Target	Date to achieve target	2017–18 Actual results	2016–17 Actual results	2015–16 Actual results
Natural resource sectors have increased investment	Growth of energy sector capital expenditures (average of past 5 years) compared to growth in overall capital expenditures in Canada (average of past 5 years)	The past 5-year average growth rate of energy sector capital expenditures is equal to or greater than the past 5-year average growth rate in total capital expenditures in Canada	March 31, 2018	Results: Not Achieved In 2017, energy sector capital expenditures were $75 billion. Over the past five years (2012–2017), energy sector capital expenditure declined by an average annual rate of 3.4%. This is below the average annual growth rate of -1.0% in the Canadian economy as a whole. This decline continues to reflect the oil price collapse of 2015, which had a significant impact on the industry, and need for infrastructure.	Results: Not Achieved In 2016, energy sector capital expenditures were $74 billion. Over the past five years (2011–16), energy sector capital expenditure declined by an average annual rate of 1.6%. This is below the average annual growth rate of 0.3% in the Canadian economy as a whole and is likely due, in part, to lower commodity prices which have led natural resource producers in Canada and globally to lower investment.	Results: Achieved In 2015, energy sector capital expenditures were $89.5 billion. Over the past five years (2010–15), energy sector capital expenditures grew by an average annual rate of 5.7%. This is above the average annual growth rate of 3% in the Canadian economy as a whole.
-	Growth of forest sector capital expenditures (average of past 5 years) compared to growth in overall capital expenditures in Canada (average of past 5 years)	The past 5-year average growth rate of forest sector capital expenditures is equal to or greater than the past 5-year average growth rate in total capital expenditures in Canada	March 31, 2018	Results: Achieved In 2017, forest sector capital expenditures were $2 billion. Over the past five years (2012–2017), forest sector capital expenditure increased by an average annual rate of 9.4%. This is above the average annual growth rate of -1.0% in the Canadian economy as a whole.	Results: Not Achieved In 2016, forest sector capital expenditures were $13 billion. Over the past five years (2011–16), forest sector capital expenditure declined by an average annual rate of 5.2%.This is below the average annual growth rate of 0.3%in the Canadian economy as a whole and is likely due, in part, to lower commodity prices which have led natural resource producers in Canada and globally to lower investment.	Results: Achieved In 2015, forest sector capital expenditures were $2.7 billion. Over the past five years (2010–15), forest sector capital expenditures grew by an average annual rate of 14.8%. This is above the average annual growth rate of 3% in the Canadian economy as a whole.
-	Growth of minerals and metals sector capital expenditures (average of past 5 years) compared to growth in overall capital expenditures in Canada (average of past 5 years)	The past 5-year average growth rate of minerals and metals sector capital expenditures is equal to or greater than the past 5-year average growth rate in total capital expenditures in Canada	March 31, 2018	Results: Not Achieved In 2017, minerals and metals sector capital expenditures were $12 billion. Over the past five years (2012–2017), minerals and metals sector capital expenditure declined by an average annual rate of 12%. This is below the average annual growth rate of -1.0% in the Canadian economy as a whole. Investment in minerals and metals is impacted by, in part, commodity prices.	Results: Achieved In 2016, minerals and metals sector capital expenditures were $13 billion. Over the past five years (2011–16), minerals and metals sector capital expenditure grew by an average annual rate of 6.7%.This is above the average annual growth rate of 0.3% in the Canadian economy as a whole.	Results: Achieved In 2015, minerals and metals sector capital expenditures were $14.9 billion. Over the past five years (2010-15), minerals and metals capital expenditures grew by an average annual rate of 3.5%. This is above the average annual growth rate of 3% in the Canadian economy as a whole.

Budgetary financial resources (dollars)

2017–18 Main Estimates	2017–18 Planned spending	2017–18 Total authorities available for use	2017–18 Actual spending (authorities used)	2017–18 Difference (actual minus planned)
73,163,653	73,163,653	79,038,507	79,038,129	5,874,476

The increase between Planned spending and Actual spending is mainly attributed to wage increases due to collective bargaining. The increase is also explained by a realignment of real property expenditures related to special purpose buildings and the Federal Infrastructure Initiative to the appropriate program, in line with TBS guidelines.

Information on NRCan’s lower-level programs is available in the GC InfoBase.

Program 1.4: Statutory Programs – Atlantic Offshore

Description

Through this Program, NRCan monitors and facilitates payment disbursal agreements and transfer payments under the Atlantic Offshore Accord Acts. The Program includes the following: Canada-Newfoundland and Labrador Offshore Petroleum Board; Payments to the Newfoundland Offshore Petroleum Resource Revenue Fund; Payments to the Nova Scotia Offshore Revenue Account; Nova Scotia Crown Share Adjustment Payment; and Canada-Nova Scotia Offshore Petroleum Board.

Results

NRCan met its target on the timeliness and accuracy of offshore payments in 2017–18 and 100% of payments were made on time.

The Canada–Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada–Nova Scotia Offshore Petroleum Accord Implementation Act provide that the benefits of revenues from the Canada–Newfoundland and Labrador and the Canada–Nova Scotia offshore areas flow to the provinces as if the resources were on land.

NRCan collects royalties, interests and penalties arising from production in the Canada–Newfoundland and Labrador offshore area and the Canada–Nova Scotia offshore area and transfers equivalent sums as well as corporate income taxes and other required payments to the two provincial governments pursuant to the Canada-Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Accord Implementation Act.

NRCan also administers the federal contributions to the operating budgets of the Canada–Newfoundland and Labrador Offshore Petroleum Board and the Canada–Nova Scotia Offshore Petroleum Board.

The Department anticipated and prepared the necessary materials for payments to be processed within the prescribed time period to both Nova Scotia and Newfoundland and Labrador as required under the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation Act.

Results achieved

Expected results	Performance indicators	Target	Date to achieve target	2017–18 Actual results	2016–17 Actual results	2015–16 Actual results
Statutory requirements relating to offshore petroleum payments in Nova Scotia and Newfoundland and Labrador are managed in a timely manner	Percentage of offshore payments processed in a timely manner	100%	Ongoing	Results: Achieved NRCan anticipated and pro-actively prepared the necessary materials for 100% of payments to be processed in a timely manner	Results: Achieved NRCan anticipated and pro-actively prepared the necessary materials for 100% of payments to be processed in a timely manner	Results: Achieved NRCan anticipated and pro-actively prepared the necessary materials for 100% of payments to be processed in a timely manner
Statutory requirements relating to offshore petroleum payments in Nova Scotia and Newfoundland and Labrador are managed in an accurate manner	Percentage of offshore payments processed in an accurate manner	100%	Ongoing	Results: Achieved NRCan anticipated and pro-actively prepared the necessary materials for 100% of payments to be processed in an accurate manner	Results: Achieved NRCan anticipated and pro-actively prepared the necessary materials for 100% of payments to be processed in an accurate manner	Results: Achieved NRCan anticipated and pro-actively prepared the necessary materials for 100% of payments to be processed in an accurate manner

Budgetary financial resources (dollars)

2017–18 Main Estimates	2017–18 Planned spending	2017–18 Total authorities available for use	2017–18 Actual spending (authorities used)	2017–18 Difference (actual minus planned)
408,998,253	408,998,253	524,634,823	524,634,823	115,636,570

The increase between Planned spending and Actual spending is attributed to a reassessment of royalties paid from prior years resulting in a one-time payment. This was offset by reduced statutory payments under the Atlantic Offshore Accord Acts for royalties related to 2017-18, mainly as a result of lower production and pricing from what was planned.

Information on NRCan’s lower-level programs is available in the GC InfoBase.

Program 2.1: Energy-Efficient Practices and Low-Carbon Energy Sources

Description

Canada’s energy markets are defined by the decisions of energy consumers and producers. However, there are multiple barriers to the adoption of energy-efficient practices and implementation of low-carbon energy sources, including a lack of awareness of available options and their benefits, insufficient capacity for adoption (e.g. regulatory frameworks, codes and standards), and financial risk. The objective of this Program is to address these barriers by encouraging and enabling energy consumers and producers to adopt cleaner and more energy-efficient technologies, products, services and practices. These objectives are achieved through education and outreach activities, targeted incentives, and regulatory interventions that keep pace with technological changes.

Results

In 2017–18, NRCan invested in cleaner transportation, improved energy efficiency and strengthened strategic partnerships to advance the longer-term decarbonization of the Canadian economy.

To support the transition to a clean transportation system and to make low-carbon vehicles more attractive to Canadians, NRCan:

NRCan worked with provincial and territorial governments and industry stakeholders to improve the efficiency of energy-using equipment used in buildings and homes, specifically by:

Endorsing, at the August 2017 Energy and Mines Ministers’ Conference:

Results achieved

Expected results	Performance indicators	Target	Date to achieve target	2017–18 Actual results	2016–17 Actual results	2015–16 Actual results
Energy consumers and producers adopt environmentally responsible products and practices related to energy use and production	Canada's total annual energy savings due to efficiency (difference between energy use without energy efficiency improvements and energy use with energy efficiency improvements; the units are petajoules (PJ))	Positive five-year trend in PJ saved	Ongoing	Results: Achieved From 1990 to 2015, energy efficiency in Canada improved 26.5%, which saved 1,766.1 PJ or $38.2 billion in energy and avoided 94.8 Mt of GHG emissions in 2015. Over the same period, total final energy demand in Canada increased 30%. It would have increased 55% without energy efficiency improvements. More details on energy savings and emission reduction from energy efficiency improvements can be found in the report of Energy Efficiency Trends in Canada 1990-2015.	Results: Not AvailableFootnote 4 From 1990 to 2014, energy efficiency in Canada improved 25%, which saved 1,669.3 PJ or $38.5 billion in energy and avoided 90.5 Mt of GHG emissions in 2014. Over the same period, total final energy demand in Canada increased 31%. It would have increased 55% without energy efficiency improvements. More details on energy savings and emission reduction from energy efficiency improvements can be found in the report of Energy Efficiency Trends in Canada 1990-2014.	Results: Achieved From 2008 to 2013, energy efficiency savings in Canada showed a favorable trend. While total energy used by final consumers increased by 28% between 1990 and 2013, the increase without energy efficiency improvements would have been 51%. From 1990 to 2013, energy efficiency in Canada improved 24%, a significant increase in energy savings which reduced energy use by 1,613.2 PJ, saved Canadians $37.6 billion and decreased GHG emissions by 85.4Mt in 2013.
-	Renewable electricity generation capacity in megawatts (MW) across Canada	Favourable 5-year trend in MW, as per 2007 baseline of 6,753 MW of installed capacity (excluding large hydro)	Now and ongoing	Results: On Track Renewable electricity generation capacity increased from 19,996.5 MW in 2015 to 21,400 MW in 2016 (including small hydro).	Results: On Track Renewable electricity generation capacity increased from 17,435.5 MWFootnote 6 in 2014 to 19,996.5 MW in 2015 (including small hydro).	Results: On Track Renewable electricity generation capacity increased from 14,301 MW in 2013 to 17,236 MW in 2014 (including small hydro).

Budgetary financial resources (dollars)

2017–18 Main Estimates	2017–18 Planned spending	2017–18 Total authorities available for use	2017–18 Actual spending (authorities used)	2017–18 Difference (actual minus planned)
183,461,546	183,461,546	248,370,347	237,241,683	53,780,137

The increase between Planned spending and Actual spending is mainly attributed to additional funding received during the year through Supplementary Estimates for the Green Municipal Fund as well as wage increases due to collective bargaining, offset by reduced spending for the ecoENERGY for Renewable Power Incentive Program due to lower levels of production.

Information on NRCan’s lower-level programs is available in the GC InfoBase.

Program 2.2: Technology Innovation

Description

Science and Technology is key to overcoming challenges confronted by natural resource sectors in pursuing responsible development. Through this Program, NRCan encourages academia, industry and the public sector to research, develop and demonstrate innovative solutions. This objective is achieved through the generation and dissemination of scientific knowledge, and the development and demonstration of new technologies.

Results

NRCan continues to support Canada’s natural resource sectors to become stronger, more sustainable and more economically competitive. This includes supporting new clean technology and energy research, development, and deployment approaches while emphasizing partnerships and collaboration with stakeholders to strengthen programs and research.

In 2017–18, NRCan made progress on the implementation of its Budget 2016 Clean Energy Innovation initiatives by:

Results achieved

Expected results	Performance indicators	Target	Date to achieve target	2017–18 Actual results	2016–17 Actual results	2015–16 Actual results
Stakeholders invest in S&T to address environmental challenges	Dollar value of stakeholder investments in S&T to address environmental challenges	5% increase over the average of the previous 5 year period	March 31, 2018	Results: Not Achieved 1% average growth over the previous five-year period. (data reference period 2011–2015) The reduced rate of growth in investor spending reflects, in part, stakeholders’ various priorities. This mirrors the rate of growth in other areas of investment by these stakeholders	Results: Achieved The target was achieved with an 8% average growth over the previous five-year period.	Results: Achieved The target was achieved with an 11% average growth over the previous five-year period.

Budgetary financial resources (dollars)

2017–18 Main Estimates	2017–18 Planned spending	2017–18 Total authorities available for use	2017–18 Actual spending (authorities used)	2017–18 Difference (Actual spending minus Planned spending)
219,965,182	219,965,182	244,479,484	227,759,555	7,794,373

The increase between Planned spending and Actual spending is mainly attributed to additional funding received during the year through Supplementary Estimates for the Youth Employment Strategy, the Oceans Protection Plan, Advancing Clean Technology and the Impact Canada initiative, as well as wage increases due to collective bargaining, offset by a reprofile for the Electric Vehicle Infrastructure Demonstration program.

Human resources (full-time equivalents)

2017–18 Planned full-time equivalents	2017–18 Actual full-time equivalents	2017–18 Difference (Actual full-time equivalents minus Planned full-time equivalents)
646	719	73

The increase between Planned FTEs and Actual FTEs is mainly attributed to the hiring related to funding received through Supplementary Estimates.

Information on NRCan’s lower-level programs is available in the GC InfoBase.

Program 2.3: Responsible Natural Resource Management

Description

Greater knowledge of environmental risks and environmentally responsible practices help prevent and reduce the environmental impacts of past, present and future natural resource development. The objectives of this Program are to enable government departments, regulatory bodies and industry to assess these impacts and develop, monitor and maintain resources or clean up wastes responsibly. These objectives are achieved through the provision of assessments and knowledge rooted in sound science, and through waste management efforts that are undertaken in collaboration with provinces, federal agencies and municipalities.

Results

In 2017–18, to help analyze earth observation data that improve the understanding, monitoring, and mitigation of the cumulative effects of climate change and natural resources development, NRCan developed new tools and data such as:

• The Centre of Expertise in Geomatics to concentrate activities, partnerships and projects in location-based information management;
• An advanced satellite data processing environment that permits the rapid extraction of trends and maps of land cover, vegetation and water. Combined with artificial intelligence techniques, this system was used to produce the official map of North American land cover in record time;
• The application of satellite remote sensing technology, which the Department pioneered, for monitoring the cumulative impacts of climate change and resource development on caribou in Canada’s Arctic;
• New unmanned aerial vehicle (UAV)-based mapping methods and applications, which include new methods for mapping snow depths adjacent to the new Inuvik–Tuktoyaktuk Highway. The results of these methods provide a framework for conducting low-cost, on-demand surveys for a variety of Arctic vegetation types, disturbances, and infrastructures;
• A spatially explicit forest Generic Carbon Budget Model that will use earth observation and other data and allow detailed estimates of how forest management is affecting carbon stocks and greenhouse gas emissions and removals; and
• Annual records of harvesting history and forest fires over a 30 year period by using historical archives of Landsat imagery that could be used for assessing historical trends of land cover change, while also supporting the capacity to model future trends.

NRCan contributed to sustainable land-use decision-making and groundwater management through work in environmental and groundwater geoscience such as:

• The Groundwater Geoscience Program that achieved its target of five citations from public and private sector organizations that incorporated NRCan’s groundwater geoscience information and tools into their products; and
• The Geological Survey of Canada’s geoscientific technical contribution in 53 development projects, under the Environmental Studies and Assessment (ESA) Program, pursuant to the Canadian Environmental Assessment Act, that helped to ensure that the projects’ adverse environmental impacts were minimized and proper mitigation measures were in place. In 2017–18, over 95% of the requests for geoscience expertise were met on time and the Environmental Geoscience Program had over five citations from public and/or private sector organizations.

Results achieved

Expected results	Performance indicators	Target	Date to achieve target	2017-18 Actual Results	2016–17 Actual results	2015–16 Actual results
Public and private sectors establish practices to mitigate the environmental impacts to natural resources	Number of public and private sector new or updated policies, regulations or other decision-making tools completed annually	3 per year	March 31, 2018	Results: Achieved Five public and private sector new or updated policies, regulations or other decision-making tools: The Generic Carbon Budget Model (GCBM) was updated, including a Peatland Module. The GCBM is a spatially explicit version of the Carbon Budget Model of the Canadian Forest Sector An approach to mosaicking Landsat imagery was developed that has produced historical records of forest harvest and burns over 30 years; Basic forest inventory data was provided using satellite remote sensing that has not existed in the past; A decision making tool for caribou habitat restoration strategies was developed for Cold Lake, Alberta area. The applicability of the Bowtie Risk Assessment Tool was demonstrated, in the previously untested context of sustainable forest management, through a proof-of-concept pilot in cumulative effects management.	Results: Achieved Four public and private sector new or updated policies, regulations or other decision-making tools: NRCan’s Canadian Forest Service continued to update its version of the Carbon Budget Model of the Canadian Forest Sector (CBM-CFS3), improved guidance for using the model, and provided it to stakeholders. It also held two training workshops. A synthesis of scientific information and research results from the Ecosystem Management Emulating Natural Disturbance (EMEND) experiment formed the basis for 2 symposia. New insights about ecosystem-based forestry management were shared with researchers, including concrete examples of ecosystem attributes that responded positively or recovered more quickly at higher retention levels, resulting in a better understanding of the benefits of retention harvesting. NRCan’s Groundwater Geoscience program has signed an MOU with the BC Ministry of the Environment to provide scientific support in the implementation of their new Water Sustainability Act. NRCan’s Environmental Geoscience Program’s work on background seismicity is mentioned in the Strategic Environmental Assessment of Quebec hydrocarbon, report specifically on Île d’Anticosti (May 2016). In addition, scientists from the Environmental Geoscience Program (EGP) continue providing expertise and sharing knowledge to help the Government of the Northwest Territories (NWT) identify health related issues due to arsenic in the environment after new data was acquired on arsenic in soils, water and sediments in the Yellowknife area, including meeting with the Chief Medical Officer of Health for the NWT to get a better understand of the EGP findings.	Results: Achieved Four public and private sector new or updated policies, regulations or other decision-making tools: NRCan’s Canadian Forest Service updated its operational-scale version of Carbon Budget Model of the Canadian Forest Sector (CBM-CFS3) and provided it to stakeholders. A synthesis of 15 years of scientific information from the Ecosystem Management Emulating Natural Disturbance (EMEND) experiment is nearing completion. EMEND’s research focuses on the effectiveness of ecosystem-based management in the western boreal. Lessons learned from this research are being applied to improve management practices on the surrounding operational landscape, and to inform development of Alberta’s provincial forest policies, especially concerning ecosystem health, productivity, and biodiversity. The EMEND science management model is recognized nationally and internationally as a best practice for implementing integrated science in an adaptive management framework to improve natural resource management. NRCan and provincial partners contributed to hold the first groundwater knowledge transfer workshop in Montérégie East, Quebec, which is providing decision-making tools to groundwater decision-makers. NRCan’s Environmental Geoscience Program’s work on background seismicity is mentioned in the Strategic Environmental Assessment of Quebec hydrocarbon report which is one of the province’s decision-making tools in relation to its global energy policy. In addition, scientists from the Environmental Geoscience Program are providing expertise and sharing knowledge to help the Government of the Northwest Territories identify health related issues due to arsenic in the environment after new data was acquired on arsenic in soils, water and sediments in the Yellowknife area.

Budgetary financial resources (dollars)

2017–18 Main Estimates	2017–18 Planned spending	2017–18 Total authorities available for use	2017–18 Actual spending (authorities used)	2017–18 Difference (actual minus planned)
27,437,623	27,437,623	32,241,225	32,240,247	4,802,624

The increase between Planned spending and Actual spending is mainly attributed to wage increases due to collective bargaining. The increase is also explained by a realignment of real property expenditures related to special purpose buildings and the Federal Infrastructure Initiative to the appropriate program, in line with TBS guidelines.

Human resources (full-time equivalents)

2017–18 Planned	2017–18 Actual	2017–18 Difference (actual minus planned)
186	209	23

Information on NRCan’s lower-level programs is available in the GC InfoBase.

Program 3.1: Protection for Canadians and Natural Resources

Description

Natural resource development and changes in the environment pose risks to human, natural resource and infrastructure health. The objective of this Program is to enable other government departments, communities and the private sector to manage these risks and to ensure the appropriate capacity is in place. NRCan achieves this objective by providing regulation, knowledge, tools and services and by fulfilling legislated responsibilities.

Results

In 2017–18, NRCan advanced several initiatives to help enable key stakeholders to manage risks against potential hazards posed by natural resource development and changes in the environment. NRCan focused efforts on building capacity for hazard prevention and protection of natural resources. Specifically, NRCan:

• Engaged stakeholders to establish multiple regional integrated assessments across forest ecoregions to determine vulnerabilities to climate change and explore adaptation options with Canada’s forest sector;
• Developed new tools to obtain information on wildfires in real-time from a variety of sensors during the fire season. For example, NRCan released the Consolidated Fire Detection and Monitoring System (CFDMS), which provides fire managers in Canada continuous satellite monitoring for large fires. NRCan now also offers high-resolution remote sensing-based tactical mapping through the Torchlight system, which enables fire managers to maintain precise situational awareness in contentious wildfires such as those in British Columbia’s interior in 2017;
• Completed its scientific contribution to the first phase of the early intervention strategy against Spruce Budworm in Atlantic Canada, including the Budworm Tracker Citizen Science Program. Positive research results show that early intervention can keep Spruce Budworm populations low and substantially minimize forest loss. These results led to the Government of Canada investing $74 million toward phase 2 of in Budget 2018;
• Provided scientific support for early detection and response to new incidences of Emerald Ash Borer infestation to municipal staff in Quebec City and Winnipeg, where the borer has recently been detected, in addition to ongoing collaboration with stakeholders in previously infected areas of Ontario and Quebec; and
• Conducted research on the Mountain Pine Beetle in newly invaded ecosystems to inform: (1) a collaboration between provincial governments and academia to update the risk assessment of the beetle’s spread in the boreal and eastern pine forests; and (2) the Forest Pest Working Group, under the Canadian Council of Forest Ministers, in the development of a strategic approach to slow the spread of the Mountain Pine beetle across Canada.

NRCan continued to advance efforts on climate change adaptation across natural resources sectors and regions by:

• Co-hosting the meeting of Canada’s Climate Change Adaptation Platform Plenary with the National Roundtable Disaster Risk Reduction;
• Supporting the development of several “State of Play” reports under Canada’s Climate Change Adaptation Platform, which summarize developments in climate change adaptation and identify activities needed to advance adaptation action. These informed the call for proposals for co-funded projects under the Climate Change Adaptation Program, launched in August 2017. 32 cost-shared projects were approved at a value of $7.8 million;
• Through the Climate Change Geoscience Program, NRCan advanced the state of geoscience knowledge and outreach related to climate change adaptation with 59 knowledge products, 32 publications and reports, and 27 presentations;
• Advanced the development of Canada in a Changing Climate, the next national assessment that looks at how Canada’s climate is changing, its impact, and how Canada is reducing risk through adaptation. A key milestone was the first joint meeting of the Advisory Committee and Coordinating Lead Authors that was held in Halifax in conjunction with the 2017 meeting of the Climate Change Adaptation Platform Plenary.
• As a result of the meeting, guidance will be prepared on the inclusion of Indigenous knowledge in the report, to be prepared by a sub-group under the leadership of experts from the Assembly of First Nations and Inuit Tapiriit Kanatami. In addition, a public engagement website was launched in September 2017, which allows visitors to contribute and learn more about the assessment process and team; and
• Launched the Building Regional Adaptation Capacity and Expertise (BRACE) Program to support regions in developing the expertise and capacity they need to take action to adapt to climate change.

To build Canada’s capacity for hazard prevention, NRCan:

• Provided funding to strengthen security controls on explosives precursor chemicals, with emphasis on increased inspections, increased S&T on home-made explosives, strengthened regulatory measures, and the expansion of the list of precursor chemicals to include additional chemicals of concern;
• Upgraded 50 station under the renewed National Earthquake Monitoring Initiative, bringing the total network upgraded to 58%;
• Completed the Geomagnetic Calibration Facility’s move from Ottawa to Acadia Research Forest, New Brunswick. With the signature of a new 50-year agreement with the United States Geological Survey, this new facility now forms the core of a North American Geomagnetic Calibration Facility;
• Completed a regional assessment of earthquake risk in British Columbia, which provides estimates of potential economic losses from earthquake events; and
• Completed a Reference Manual for a simulator of Geomagnetically Induced Currents (GIC), which will help power system operators understand the potential impacts of geomagnetic storm events on a power grid.

NRCan took steps to protect our oceans, by:

• Conducting research with the Department of Fisheries and Oceans (DFO), through the Oceans Protection Plan, into the behaviour and fate of oil spills. In 2017–18, NRCan collaborated with toxicologists to conduct spill tank tests which is helping spill responders to make decisions for response methods and cleanup; and
• Providing valuable mapping data to support Canada’s Oil Tanker Moratorium Act, which will regulate vessels that transport crude oil or persistent oil to or from ports or marine installations located along British Columbia’s north coast.

NRCan strengthened the safety of natural resources workers by taking steps to amend the Offshore Marine Installation and Structures Occupational Health and Safety Transitional Regulations.

Results achieved

Expected results	Performance indicators	Target	Date to achieve target	2017–18 Actual results	2016–17 Actual results	2015–16 Actual results
Governments, communities and the private sector manage risks or opportunities to natural resources, infrastructure, and human health	Number of risk assessments (climate change, geohazards, other), policies, regulations, plans, standards (codes) or guidelines developed using NRCan information or services	5 per year	March 31, 2018	Results: Not Achieved In 2017-18 NRCan completed a regional assessment of earthquake risk in British Columbia and a space weather manual. In addition, NRCan disseminated the results of 21 recently completed climate change adaptation projects to new audiences to support future risk assessment and planning activities. In 2018-19 NRCan is undertaking a study to document the impact of its adaptation projects and activities according to the program’s monitoring and evaluation framework.	Results: Achieved A substantial upgrade of the seismic hazard model for Canada was completed and incorporated into the National Building Code of Canada 2015, released in June 2016. NRCan worked with Public Safety Canada to release a forward-looking guidance document on risk assessment needs in Canada. In addition, a guidance document on critical infrastructure and flood mapping was completed. NRCan is actively involved with the North American Electric Reliability Corporation (NERC) on developing new guidelines for electric power utilities to manage geomagnetic disturbances.	Results: Achieved NRCan expertise was used to develop three new risk assessments on climate change adaptation, including a risk assessment for the oil and gas sector of Northeastern British Columbia, and a risk and opportunity assessment of climate change on British Columbia electricity demand. NRCan geohazard knowledge products contributed to five standards and guidelines developed by public and private sector organizations. NRCAN also developed seismic hazard models that were used to inform the National Research Council Canada’s 2015-2020 update of National Building Code of Canada.
	Number of active collaborations with the public and private sector that manage risks or opportunities to human population, natural resources and infrastructure health	3 collaboration agreementsFootnote 8	March 31, 2018	Results: Achieved NRCan entered a new collaborative research and development agreement with Acadia University, Forest Protection Limited, Dalhousie University, University of New Brunswick, Agrifor Biotechnical Services Limited, and Sylvar Technologies for the development and commercialization of naturally-derived semiochemicals for insect pest management. The Canadian Forest Service (CFS) collaborates with certain northern municipalities. The collaboration includes the development of a survey of residential homeowners to better understand barriers that exist for homeowner uptake of measures pertaining to living with, and managing, wildfires. CFS continues to collaborate with a Canadian provincial/territorial jurisdiction to determine how the variability in burn severity may affect changes in forest cover and impacts on woodland caribou. The collaboration includes studies on the effects of the burn severity on re-burns, fire refugia, vegetation shifts among others.	Results: Achieved NRCan initiated three new collaborative research agreements with the Canadian Food Inspection Agency to enhance surveillance techniques for damaging invasive alien species in order to mitigate risks of introduction and spread in Canada. Signed four new ‘Regional Adaptation Collaborative’ agreements to increase the dissemination of program results and to help engage new groups in managing adaptation risks in British Columbia, the Prairie provinces, Ontario, and Quebec	Results: Achieved Maintained existing networks through delivery of Canada’s Adaptation Platform, including a new initiative with Chartered Professional Accountants to inform their membership to address climate change adaptation in their work. New collaboration agreements were established with provinces, territories and other federal departments to enhance forest disturbance management across Canada. For example, a collaborative project with the Northwest Territories provided aerial survey training to forest health specialists. A collaborative agreement was also established with Ontario to develop tools for the early detection and management of emerald ash borer, a pest threatening ash trees in urban areas of southern Ontario and Quebec. The Ontario Centre for Climate Adaptation Research, Ouranos, and NRCan collaborated on a national conference (Adaptation Canada 2016) to showcase results of the federal adaptation programming, the first collaboration of its kind in 10 years.

Budgetary financial resources (dollars)

2017–18 Main Estimates	2017–18 Planned spending	2017–18 Total authorities available for use	2017–18 Actual spending (authorities used)	2016–17 Difference (actual minus planned)
70,418,079	70,418,079	77,949,305	73,038,008	2,619,929

The increase between Planned spending and Actual spending is mainly attributed to additional funding received during the year through Supplementary Estimates for Enhancing Explosives Safety and Security, as well as wage increases due to collective bargaining.

Human resources (full-time equivalents)

2017–18 Planned	2017–18 Actual	2017–18 Difference (actual minus planned)
414	459	45

The increase between Planned FTEs and Actual FTEs is mainly attributed to the hiring related to funding received through Supplementary Estimates.

Information on NRCan’s lower-level programs is available in the GC InfoBase.

Program 3.2: Landmass Information

Description

Public, academic and private sectors as well as Canadians rely on up-to-date, comprehensive and accessible landmass information to make sound socio-economic and environmental decisions. This program provides open access to Canada’s fundamental geomatics framework and information system, including accurate three-dimensional positioning, high-resolution satellite imagery and other remote sensing products, legal (boundary) surveys, mapping and other analysis applications. In addition, it delivers logistics support in the North and regulatory oversight for a robust property system framework on Canada Lands.

Results

In 2017–18, NRCan provided up-to-date, comprehensive, and accessible landmass information to facilitate sound socio-economic and environmental decision-making. Specifically, NRCan:

• Delivering the Canada Lands Survey System, which provides the statutory framework, standards, information systems, and the land survey ground infrastructure that legally identifies and protects the boundaries of property rights and enables land transactions;
• Delivering on survey obligations, as per legislation and agreements under the First Nations Land Management Program. This work contributes to meeting land-related reconciliation initiatives, helps ensure boundary certainty for First Nations, and supports Indigenous communities seeking sectoral self-government; and
• Digitizing more than 100,000 documents to implement digitally signed survey documents, in collaboration with industry and other stakeholders, making them available to other federal departments and some First Nations that are now using electronic approval portals. NRCan continues to actively support First Nations in their efforts to take ownership of their lands by providing their communities with improved services and tools.

NRCan also advanced its objectives through the Polar Continental Shelf Program and the United Nations Convention on the Law of the Sea (UNCLOS) Program by supporting scientific research in the Arctic and contributing to Canadian’s sovereignty. In 2017–18, NRCan:

• Supported 115 projects requesting field equipment for federal government work across Canada and 160 projects requiring Arctic logistics support. These included science and operational activities led by more than 15 federal and territorial government departments and agencies and 25 universities;
• Continued its participation in the UNCLOS Program, which carried out 100% of its required scientific and technical data and analysis for Canada’s Arctic Ocean submission to the United Nations Commission on the Limits of the Continental Shelf (UNCLCS). The scientific data and samples collected for the submission will show Canadian entitlement to vast offshore lands beyond 200 nautical miles, increase knowledge about the geological history of the Arctic Ocean and fundamentally change our understanding of its evolution. The Program is on track to file a full and complete scientifically justified submission delineating the outer limits of Canada’s extended continental shelf to the UN’s CLCS no later than 2019. A timeline for the review of Canada’s submissions has yet to be determined by the CLCS. Eventual recognition of these outer limits will be Canada’s last international boundary and give Canada sovereign rights to the living and non-living natural resources on the seafloor and in the subsoil.

Results achieved

Expected results	Performance indicators	Target	Date to achieve target	2017-18 Actual Results	2016–17 Actual results	2015–16 Actual results
Stakeholders discover and access geospatial assets to inform decision-making, reporting, operations and research	Satisfaction with discoverability and access to geospatial assets	Improvement over previous reporting period on satisfaction with overall discovery and access	March 31, 2021Footnote 9	Results: On Track Development of a tool to track access to geospatial assets is on track for launch in April 2019. Baseline for this tool is in test mode. Biennial reporting of stakeholder satisfaction will begin in 2019-2020.	Results: On Track Assessment tool development began in March 2017. On track to establish baseline in 2017-18.	Results: Not available Performance indicator did not exist in 2015-16
Public, private sector and academia use accurate, Government of Canada geo-information for decision-making	Evidence identifying that Canada Lands Survey System activities are meeting stakeholder needs	8	March 31, 2018	Results: Achieved Evidence collected for 2017–18 indicated that stakeholder needs were met. An information exchange session took place with the Canadian Land Surveyors working in the Province of Quebec. There was a clear indication that all surveyors were extremely satisfied by the services and support offered by NRCan. Extensive engagement with Canada Lands Surveyors and other users of the Survey System at the National Surveyors Conference in Victoria revealed high levels of satisfaction with the services provided by the Branch. In addition, all praised the quality and precision of the data, allowing them to find and access quickly the survey monuments. Under the First Nations Lands Management Framework Agreement, eight First Nations adopted their own Land Code, allowing them to manage their reserve land, resources and environment according to their own values and priorities while also enabling improved economic development.	Results: On track Evidence collected for 2016-17 indicated that stakeholder needs were met. The new Yukon Land Titles Act officially recognizes the Surveyor General as the Survey Authority. This has resulted in increased business integration with improved service delivery. A study on cadastral datasets in the North showed their widespread usage within the three territorial governments and found the data to be reliable and current. The study recommended improved communications about Canada Lands Survey System services in the North. An industry-focused cost study demonstrated the Canada Lands Survey System to be comparable with survey systems on private or provincial lands. The study recommended more education for surveyors and lands administrators on the process and tools available to further reduce costs.	Results: On Track Evidence collected for 2015-16 indicates that stakeholder needs were met and benefits from modernization of the Canada Lands Survey System were realized by stakeholders. Stakeholders identified areas for improvement including increased alignment with the Yukon Land Titles System.
Polar Continental Shelf Program (PCSP) clients receive cost-effective logistics support needed to conduct field work safely in Canada’s Arctic and Subarctic regions	Level of client satisfaction with mix, quality and cost of support received	85% of clients are either satisfied or very satisfied	March 31, 2018	Results: On track 88% of projects were supported in the 2017 field season. The PCSP supported 115 field equipment requests for work across Canada and 160 projects requiring Arctic logistics support. The client satisfaction survey is planned for 2018–19.	Results: Not available The client satisfaction survey is administered every three years. No survey was conducted in 2016-17. The next survey is planned for 2018-19.	Results: 90% Through a client satisfaction questionnaire administered in 2015-16, 90% of respondents indicated they were either satisfied or very satisfied with the mix and quality of logistics support provided by the PCSP.
Governments and other program stakeholders can access a suite of up-to-date, comprehensive geospatial assets	Percentage of landmass foundational data collections with renewed coverage	15% of all data collections are updated or newly produced	March 31, 2018	Results: Achieved Six data layers of 23 (26%) were updated in 2017–2018, including data on geographic place names, elevation, roads, railway, hydrographic (water: lakes, rivers), and the energy infrastructure within the North American Cooperation on Energy Information (NACEI) project.	Not available: Performance indicator did not exist in 2016-17	Not available: Performance indicator did not exist in 2015-16

Budgetary financial resources (dollars)

2017–18 Main Estimates	2017–18 Planned spending	2017–18 Total authorities available for use	2017–18 Actual spending (authorities used)	2017–18 Difference (actual minus planned)
49,150,177	49,150,177	69,887,609	61,573,503	12,423,326

The increase between Planned spending and Actual spending is mainly attributed to additional funding received during the year through Supplementary Estimates to continue the negotiation and implementation of comprehensive land claims, treaty-related and self-government agreements, and transfers from other government departments, as well as wage increases due to collective bargaining. The increase is also explained by a realignment of real property expenditures related to special purpose buildings and the Federal Infrastructure Initiative to the appropriate program, in line with TBS guidelines.

Human resources (full-time equivalents)

2017–18 Planned	2017–18 Actual	2017–18 Difference (actual minus planned)
386	353	(33)

The decrease between Planned FTEs and Actual FTEs is mainly attributed to staff departures and delays in planned staffing.

Information on NRCan’s lower-level programs is available in the GC InfoBase.

Internal Services

Description

Internal Services are those groups of related activities and resources that the federal government considers to be services in support of programs and/or required to meet the corporate obligations of an organization. Internal Services refers to the activities and resources of the 10 distinct service categories that support Program delivery in the organization, regardless of the Internal Services delivery model in a department. The 10 service categories are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; and Acquisition Services.

Results

In 2017–18, the internal services supported Natural Resources Canada’s transition to the new Departmental Results Framework by rolling out the necessary changes to financial, information management (IM) and information technology (IT) systems, as well as continued it efforts to support the Department in advancing the Minister’s mandate letter commitments and Government of Canada priorities in the following areas:

Open Government and Public Engagement

As part of its Open Government agenda, NRCan continued its transition to a digital–first model for communications and engagement in 2017–18 by designing and developing several key communications and outreach products and implementing major digital engagement initiatives, nationwide, such as the Generation Energy and Canadian Minerals and Metals Plan. These initiatives allow the Department to reach more Canadians and engage with them on issues that matter most.

NRCan continued to work with federal partners to support the dissemination of scientific information through the Federal Science Library (FSL), which was accessed by over 22,000 Canadians last year. To continue to contribute to this important tool, NRCan submitted the second annual update of its dataset inventory, bringing the Department’s total datasets published to date to 69,000.

Results and Delivery

NRCan saw the completion of its Departmental Results Framework (DRF), which was approved in 2017–18, and it’s supporting financial and IM and IT systems. The DRF sets the Department’s core responsibilities, expected results and related performance information and will be the basis upon which NRCan will report to Canadians on its performance moving forward. In this regard, the department advanced its work on a data strategy to support its reporting against the DRF.

NRCan continues to implement the Ministers six mandate letter commitments (MLC) and inform the Government of Canada’s Mandate Letter Tracker: Delivering results for Canadians, which was launched in November 2017. This year NRCan, in collaboration with other departments, supported the completion of the MLC “Develop a North American clean energy and environment agreement.” The other five MLC are on track for completion.