Details on transfer payment programs over $5 million

• Electricity Resources
• Energy Innovation and Clean Technology
• Forest Sector Competitiveness

The program will reduce reliance on diesel and fossil fuels in Indigenous, rural, and remote communities by deploying and demonstrating renewable energy projects, encouraging energy efficiency and building skills and capacity.

Contribution payments made under this program are non-repayable.

The Clean Energy for Rural and Remote Communities (CERRC) program has 159 contribution agreements and grants signed: 46 under the Bioheat stream, 17 for Deployment, 37 for Demonstration, and 59 for Capacity Building. 60 projects have been completed.

Projects included the St. Mary's River Energy Project, supported by $4.3 million in funding from CERRC, which was successfully completed in early 2023. The project refurbished an existing 240 kW hydro system with new generating components and a modern control system and installed a 250 kW solar photovoltaic plant and 500kW lithium-ion battery storage integrated into the existing diesel grid at Mary’s Harbour, NL. The project has demonstrated improved technical readiness of an integrated diesel microgrid including hydro, solar and battery components and is expected to reduce diesel consumption by 30 percent.

No evaluation in 2022-23.

Evaluation of the Clean Energy for Rural and Remote Communities Program is planned for completion by March 2024.

To meet our climate objectives, the Clean Fuels Fund provides the private sector with cost-shared, conditionally repayable contributions to support the build out of new or retrofit or expand existing, clean fuel production facilities in Canada.

The Clean Fuels Fund has also established a dedicated funding stream for Indigenous-led clean fuel production projects.

Non-repayable contributions are also available for feasibility studies, basic engineering studies and detailed front-end engineering studies for new facilities, facility expansions or facility conversions.

To ensure clean fuel producers have access to a consistent supply of biomass feedstocks, conditionally repayable support is also available for the establishment of biomass supply chains to improve logistics for the collection, supply, and distribution of biomass materials (e.g., forest residues, municipal solid waste, and agriculture crop residues) as a feedstock in clean fuel production facilities.

Non-repayable contributions are also available to address gaps and misalignment in codes, standards and regulations related to the production, distribution and end-use of clean fuels. This support ensures that, as new technologies evolve and enter the market, they can do so reliably, efficiently and effectively production, distribution, and use of clean fuels while ensuring they are compatible across jurisdictions.

The program held a call for project proposals for clean fuel production projects that was heavily over subscribed. Proposals have been evaluated, and 66 projects (34 studies, 32 facilities) have been selected with a total NRCan contribution of $1.03 billion. Contribution agreements for those projects are now being finalized and signed.

The program also launched an open call for project proposals for Indigenous-led production projects, which continues to accept applications.

The program is currently conducting technical merit assessments on the biomass supply chains component of the program, with funding decisions expected by fall 2023.

The program has supported the publication of 26 codes and standards the covering the Clean Fuels value chain from production to end use. These codes comprised hydrogen, natural gas, electric vehicles, and bioenergy applications. In addition, 12 research projects to support future development of codes and standards have been initiated.

No evaluation in 2022-23.

Evaluation of Clean Fuels Fund is planned for completion by March 2027.

The Program took a comprehensive approach to engaging potential applicants.

Before the production and Indigenous production components of the program officially launched, information sessions were held to finalize elements of program design, and to signal that calls for proposals would be forthcoming.

Information sessions were held prior to program launch, as well as twice during the call for proposals, to address questions from the potential applicants for both the general and Indigenous production components of the program.

A stakeholder workshop to help inform program design was held for the biomass supply chains component of the program and information sessions were held prior to and following the launch.

A comprehensive social media campaign was also undertaken, to raise awareness at each stage of the process.

Successful recipients were also engaged during the negotiation of the contribution agreements. 

Ongoing engagement of stakeholders from governments, industry associations, regulatory authorities and end-user of hydrogen has been achieved through the NRCan and Standards Council of Canada co-led working group. Over the past year, 7 working group and 30 task force meetings have been held while a member consultation report was published. A Canadian codes and standards roadmap is scheduled for publication in the 2023-24 fiscal year.

The Critical Minerals Research & Development and Demonstration Program is seeking to advance the commercial readiness of emerging processing technologies that will support the development of critical minerals value chains in Canada. Contributions are targeted to support early-stage federal R&D into batteries and magnets, as well as pre-commercialization pilot demonstration projects that advance critical mineral processing and refining expertise.

The Critical Minerals Research, Development and Demonstration Program received 51 letters of Interest from its call for proposals. Of the 51 projects, fourteen (14) were asked to submit a Full Project Proposal and of these, six were recommended and accepted to receive funding under the Program in November 2022.

The recipients were very responsive and provided requested information to enable the signature of contribution agreements early in 2023.

These projects aim to validate the feasibility, viability, and replicability of processing technologies by conducting pilot demonstrations. The outcomes will see the production of critical minerals using novel processes, and reduced energy or carbon intensity or other environmental performance improvements, and improved capital and/or operating costs of critical mineral production. Overall, these projects will make a significant impact on Canada with their innovative technologies.

The installation of sensors in key-targeted areas will provide a basic earthquake early warning infrastructure and will permit monitoring of federal-critical infrastructure.

Funding will be made through Grants & Contributions to provinces, territories and municipalities in areas of high seismic hazard in order to strengthen the robustness of the national earthquake early warning system.

Contribution payments are non-repayable.

No evaluation in 2022-23.

A Joint Audit and Evaluation of Disaster Risk Reduction is planned for completion by June 2025.

• Natural resource sectors are innovative
• Clean technologies and energy efficiencies enhance economic performance
• Canada’s natural resources are sustainable

The Electric Vehicle Infrastructure Demonstration (EVID) Program supports the demonstration of innovative solutions to technical challenges and other barriers for the deployment of electric vehicle charging infrastructure and hydrogen refuelling infrastructure in numerous applications, including in the urban environment, for fleets, and for public transit.

Key outcomes from the program are expected to address potential technical and non-technical barriers for the deployment of charging and refuelling infrastructure for zero emissions vehicles (ZEVs). Outcomes for the EVID Program include:

• Reduced cost and improved performance (e.g. speed), operational safety, and interoperability of charging stations in Canadian climatic conditions;
• Improved performance, operational safety and reliability of hydrogen refuelling systems for medium- and heavy-duty vehicles in Canadian climatic conditions;
• Increased knowledge of non-technical barriers and innovative approaches, leading to improved business cases.

Contribution payments made under this program are non-repayable.

The $76M Electric Vehicle Infrastructure Demonstration (EVID) Program continued to support the demonstration of next-generation and innovative electric vehicle charging and hydrogen refuelling infrastructure in Canada. The EVID program has supported 30 projects to date.

Projects supported a number of applications, including:

• novel charging technologies and business models for multi-unit residential buildings and workplaces;
• bi-directional charging with energy storage;
• heavy-duty truck charging and hydrogen infrastructure;
• transit electrification; and
• battery repurposing.

Program funds were leveraged by contributor funds at a minimum ratio of 1.5:1 (contributors: NRCan), achieving the program’s target of 1:1.

Examples of projects announced in 2022-23 include:

• $922,000 to the Ontario Charging Network: The project is expected to benefit EV owners by enabling a simple, seamless charging experience at home and at public charging stations that requires no upfront cost for home charger installation, saves on electricity bills through demand management, and provides access to an extensive network of public charging options.
• $290,000 to SWTCH Energy Inc.: This project seeks to accelerate EV adoption by demonstrating a cost-effective EV charger load management system that uses open standards, thereby enabling load management across a variety of EV charger vendors. The system minimizes the need for electrical infrastructure upgrades and is ideally suited for high-density parking sites such as in multi-unit residential buildings, workplaces, and public destination settings.

This Program will help expand the portfolio of renewable energy technologies available to reduce emissions in Canada’s electricity sector and provide job opportunities along the entire length of their supply chains.

The Emerging Renewable Power Program funding is conditionally repayable should the project yield a return on investment above and beyond the total project costs less the federal contribution.

NRCan invested in the demonstration and deployment of clean energy infrastructure through several programs: Smart Grids, Energy Efficient Buildings, Emerging Renewable Power, and Clean Energy for Rural and Remote Communities

The six projects funded through the Emerging Renewable Power Program support three emerging renewable technologies: geothermal, in-stream tidal and bifacial solar. As such, the program is helping expand the portfolio of commercially viable renewable energy sources in Canada. The projects being supported are located across multiple jurisdictions, supporting the development of new regulatory processes and pathways.

Two tidal projects supported by the program have faced significant regulatory barriers with the authorizations needed for deployment under the Fisheries Act and the Species at Risk Act. One of those projects will no longer continue.

• Lower Carbon Transportation
• Energy Innovation and Clean Technology

The $750 million Emissions Reduction Fund (ERF) supports capital investments and research to reduce GHG emissions, with a focus on methane, from onshore and offshore oil and gas operations in Canada.

The ERF provides funding primarily in the form of repayable contributions.

• Onshore deployment program ($675 million): uses a mix of repayable and non-repayable contributions.
• Offshore deployment program ($42 million): repayable contributions.
• Offshore RD&D program ($33 million): non-repayable contributions.

Onshore deployment program ($675 million)

The Onshore deployment program is pulling forward high-impact, cost-effective projects that will eliminate methane emissions from intentional venting and flaring from existing and already scheduled oil and gas production. To date, the program has funded 85 projects across Alberta, Saskatchewan, British Columbia, and Manitoba representing an estimated $180 million in ERF funding.

Projects funded to date are anticipated to achieve methane emission reductions of approximately 4Mt of CO2e in the first twelve months following project completion, which is equivalent to removing about 1 million passenger vehicles from our roads for one year.

The Onshore Program’s eligible expenditure period closed on March 31, 2023. All onshore funded projects must be completed by March 31, 2024.

Offshore deployment program ($42 million)

The program continued to support three projects from Newfoundland and Labrador’s offshore service and supply sector. Two are targeting offshore GHG emissions reductions while the other aims to improve the environmental performance of oil spill-related activities.

Offshore RD&D program ($33 million)

In 2022-23, all 18 projects funded under the Offshore RD&D program were successfully completed and the program was closed out by Energy Research & Innovation Newfoundland & Labrador (ERI-NL). The average number of partners signed per agreement was 3, exceeding the target of at least 1. Proponents shared their early findings and lessons through producing more than 45 reports, presentations, datasets, or other knowledge products and have filed for seven patents or IP.

No audit in 2022-23.

Audit of Management of Science and Research Facilities – is planned for completion by September 2026.

No evaluation in 2022-23.

No evaluation is planned for this program, as it is not ongoing, and therefore section 42.1 of the FAA does not apply. The need for evaluation is low as the CESD audited the program in November 2021.

Onshore deployment program ($675 million) and Offshore deployment program ($42 million)

NRCan engaged directly with applicants via calls, emails and video conferences to address program specific questions. Staff also regularly engaged with successful applicants to negotiate and administer contribution agreements.

Offshore RD&D program ($33 million)

Energy Research & Innovation Newfoundland & Labrador (ERI-NL) continued engaging with the 18 ultimate recipients by monitoring project progress and reimbursing eligible claims as needed. They successfully supported the projects to completion and obtained final project reporting and close-out requirements. ERI-NL also hosted an ERF Offshore RD&D program closing event in St. John’s, NL on October 12, 2022, where ultimate recipients were invited to present project outcomes and discuss developments in the sector. 

• Clean technologies and energy efficiencies enhance economic performance
• Natural resource sectors are innovative
• Canada’s natural resources are sustainable

• Energy Efficiency
• Energy Innovation and Clean Technology

The objectives of the program are to:

• increase the energy efficiency of consumer and commercial products.
• enhance commercial, institutional and residential building sector performance.
• encourage the implementation of cleaner and more energy efficient technologies and practices in the industrial sector.
• support low carbon options for the on-road transportation sector.
• accelerate the development of cost-effective energy efficient technologies, design and construction.

Contribution payments made under this program are non-repayable.

Energy Efficiency Program

• Launched the Green Industrial Facilities and Manufacturing Program in February 2023 which provides financial assistance to support industrial energy efficiency initiatives undertaken by entities that align with Government of Canada objectives and provides direct-to-industry support to help implement energy efficiency and energy management solutions within their respective facilities.
• Advanced the draft Canada Green Buildings Strategy, through extensive stakeholder engagement, aiming to develop foundations towards achieving net-zero in commitments in the buildings sector by 2050. The strategy aims to find ways to mobilize national action to transform markets, to advance research, development, and demonstration for emerging deep decarbonization and electrification technologies, to grow the workforce, and to enable informed actions.
• Launched the Code Acceleration Fund to help jurisdictions adopt the higher performance levels of model energy codes. Worked to support stakeholder capacity building and code adoption harmonization.
• Launched the Deep Retrofit Accelerator Initiative to build capacity for, and address barriers to deep retrofit project development and implementation; to facilitate development of deep retrofits in Canada, by supporting organizations (retrofit accelerators) that help building owners in deep retrofits in commercial, institutional, and buildings; and to drive market transformation in a given region or market segment. The first intake of applications from across Canada was finalized by March 2023, with the exception of Indigenous focused applications.
• Administered the Energy Efficiency Act and regulations to enable use of energy efficiency standards and labelling in homes, commercial and institutional buildings, and industry.
• Certified 12 Industrial facilities through the ENERGY STAR for Industry program, recognizing them as top energy efficient performers.
• Launched newer tools to help commercial and institutional buildings implement ISO 50001 Energy Management Systems.
• Provided a framework and tools for the assessment of home energy use (new and existing housing), by stakeholders across Canada (i.e., homeowners, industry, governments, utilities), while supporting delivery through a network of Energy Advisors under the EnerGuide Rating System.
• Undertook public opinion research of ENERGY STAR for products to improve market penetration and brand recognition by using behavioral science to impact consumer purchasing habits.
• Certified new homes, supported programs across Canada, awarded builders, and worked to align building codes for voluntary labelling under ENERGY STAR for New Homes and R-2000.
• Increased use of ENERGY STAR enabling tools (Portfolio Manager, certification for buildings, multifamily high-rise pilot program), that help building owners, managers, energy specialists and consumers to learn about energy consumption of buildings.  Ontario's requirement for public sector buildings (hospitals, universities, municipalities, etc.) is a notable stakeholder update.

Energy Efficient Buildings Research, Development and Demonstration (RD&D) Program\

NRCan is investing $42.3 million to fund projects that will accelerate the development and adoption of net-zero-energy-ready codes and cleaner technologies to promote highly energy-efficient building design and construction practices, provide cost-effective building solutions, and validate their applications with real-world demonstrations. As of 2022-23, the program has supported 20 high-efficiency demonstration projects. Projects have been successful in leveraging investments, with an average of $2.20 contributor funding every $1 of NRCan funding. In 2022-2023, eight projects were announced, including:

• $526,785 to RSI Projects Inc. for six Front End Engineering Design studies of deep energy panelized retrofits for six municipally owned buildings, including engaging with municipalities in three provinces, provincial governments, industry stakeholders and others to share findings and help overcome barriers to retrofits.
• $5 million to the City of Toronto for a Challenge to identify and support eight building retrofits that can achieve at least a 50% reduction in annual energy consumption.
• $1.8 million to the Toronto Community Housing Corporation to transform a poorly performing 80-year-old mid-rise multi-unit residential building into a high-performance building with enhanced indoor environmental quality, establishing an innovative and replicable model.

No evaluation in 2022-23

Interdepartmental Evaluation of Green Municipal Fund is planned for completion in December 2023. 

Energy Efficiency Program

NRCan hosted workshops and webinars; undertook targeted outreach and engagement, including engagement sessions and award recognition nominations; and, knowledge and capacity-building activities such as case studies.

The Office of Energy Efficiency supported policy, program, and service experimentation to drive energy efficiency across all sectors and to encourage energy efficient behaviours to Canadians.

Energy Efficient Buildings RD&D Program

The program continued its engagement with industry, associations, provinces and territories, and research and policy groups to help inform the program. In 2022-23, the program pursued meaningful engagement with The Atmospheric Fund, the Recover Initiative, and the Pembina Institute. The program also strengthened its engagement with the Canada Mortgage and Housing Corporation, the Canadian Home Builders Association, and other key policy organizations such as Efficiency Canada.

Moreover, the program’s Local Energy Efficiency Partnerships (LEEP) initiative aims to foster the construction industry’s capacity and confidence in net-zero-energy ready (NZER) technologies and the adoption of the new tiered building code. In 2022-23, the LEEP team delivered its first provincial roll-out of LEEP for Renovations in British Columbia; started development of LEEP for commercial focusing on new multiunit residential buildings; enabled a few of Canada’s largest builders to utilize the Cost Benefit Analysis Tool (CBAT) and the Material Carbon Emissions Estimator (MCE2) Tool in planning the low-carbon communities they will be developing over the next 10 years; and worked closely with five colleges across Canada to pilot new curriculum related to NZE wall systems, HVAC design, cost optimization and carbon accounting. 

• Natural resource sectors are innovative
• Clean technologies and energy efficiencies enhance economic performance
• Canada’s natural resources are sustainable

The Energy Innovation Program (EIP) advances clean energy technologies that will help Canada meet its climate change targets while supporting the transition to a low-carbon economy. It funds research, development and demonstration projects and other related scientific activities. In the near term, the EIP will help to de-risk and improve cost and performance of existing technologies to help to meet Canada’s 2030 climate goals, while accelerating the readiness of pre-commercial technologies and enable energy system transformations required for Canada to achieve its 2050 net-zero goals.

The EIP runs targeted calls and other strategic collaboration and investment programs. Clean energy innovation funded by the EIP is supporting decarbonization of Canada’s most energy-intensive sectors: industry, transportation, and communities. Budget 2021 announced new funding under the EIP to focus on carbon capture, utilization, and storage (CCUS). Further, Budget 2022 committed to renewing and consolidating the Clean Growth Program and the Impact Canada Cleantech Initiative under the EIP.

Contributions under this program are non-repayable since the activities and benefits from the contributions are pre-commercial.

In 2022-23, the EIP supported 49 external research, development, and demonstration (RD&D) projects and related scientific activities such as modeling studies aimed at reducing greenhouse gas (GHG) emissions while increasing competitiveness, affordability, and reliability in Canada’s energy sector. The projects fostered innovations in the key areas of decarbonizing industry, communities, and transportation.

Projects funded through EIP were successful in encouraging investments, leveraging an average of $2.50 in contributor funds for every $1 of NRCan’s funding, well exceeding the leveraging target ratio of 1:1 Given that results from Research, Development and Demonstration (RD&D) projects often do not accrue after until projects are completed, EIP projects^{Footnote 1} report on results for at least five years post-project funding. EIP projects have made advances in technology and research, with proponents filing for 49 patents or other intellectual property; influencing 56 codes and standards, which can often effect large-scale change; and producing 136 scientific publications, technical reports, datasets, models, tools, and other knowledge products. Additionally, EIP projects supported 1191 direct and indirect jobs years per year and are on track for meeting 2030 GHG reduction targets, achieving 2.6 Mt of direct GHG reductions in 2022-23.

As part of an additional $132 million in funding from Budget 2021 for CCUS under the EIP, NRCan launched a $81.5 million funding call for CCUS RD&D projects to reduce the cost and increase the performance of innovative early-stage CCUS technologies and signed up to $50 million in funding agreements for CCUS Front-End Engineering Design (FEED) projects. The CCUS RD&D call has opened two of three focus areas to date:

• Capture: Opened for expressions of interest (EOIs) in July 2022. The call was approximately five times oversubscribed. Selected projects are now undergoing internal governance and will be notified in Summer 2023.
• Storage and Transportation: Opened for EOIs in Spring 2023. The program was 17 times over subscribed. Proposals are currently being evaluated, with a selection to be invited to submit full project proposals in Summer 2023.
• A call for Carbon Utilization is being considered for Fall 2023.

NRCan also selected 25 projects to receive up to $53 million in funding to target RD&D in industrial fuel switching, clean fuels production, and hydrogen codes and standards, which will accelerate the development of emission reducing technologies and create pathways for the use of cleaner fuels in hard-to-abate segments of industry.

NRCan communicated with external EIP proponents to support the ongoing success of their projects via calls, emails and other forms of engagement. Program-wide updates and requests are sent via the EIP’s mailbox, as well as through the Energy Innovation Newsletter, which ensures clear and consistent messaging for all proponents. The program has also encouraged the use of the Clean Growth Collaboration Community for various federal support updates and news. Following the recent conclusion of the Clean Growth Program evaluation, the program has updated this platform to optimize use.

In 2022-2023, the EIP launched two new Requests for Information (RFIs) to further gather information on stakeholders’ needs, issues, and perspectives on regulations for grid modernization and infrastructure for sustainable transportation systems. The RFIs received 60 and 28 responses respectively from a range of stakeholders including form industry, academia, private companies, not-for-profits, utilities and regulators. The results of both RFIs are currently under analysis, but are anticipated to help guide market, policy and regulatory related decision making. NRCan also supported and co-organized a number of CCUS workshops in Newfoundland, Ontario and Quebec that advanced the engagement in these provinces in the areas of CCUS technology, policy and regulatory development, especially in the offshore industry.

The purpose of the Expanding Market Opportunities (EMO) program is to support the competitiveness of the Canadian forest sector by maintaining and growing international wood product markets, expanding wood use domestically in non-traditional construction, and promoting the strong environmental credentials of Canadian forest products.

This transfer payment program provides non-repayable contributions.

The program signed contribution agreements with 15 organizations, delivering over 162 projects in established and emerging international forest product markets to promote, educate, inform or facilitate the use of Canadian forest products or wood construction systems.

The program continued to partner with industry and provinces to maintain international in-market offices and staff to promote the performance and environmental credentials of Canadian wood products, as well as grow opportunities for Canadian wood product producers, in China, Japan, South Korea, Vietnam, India and Europe.

In 2022-23, EMO supported:

• Market access activities to support for wood-related codes and standards updates; technology transfer and training for wood construction and manufacturing sectors; technical research and testing; technical seminars, meetings and missions; development of training materials and technical literature; market research; demonstration projects; and monitoring phytosanitary and market access issues.
• Maintenance of overseas export offices in Asia to support export development, market evaluation, impact assessments, and in market-missions.
• Market Development work which included Marketing activities, tradeshows, technical seminars, wood-use promotion, and an export readiness training program to coach its members on international export capacity.

Domestic activities included the provision of training, technology transfer and advice, technical information products, market research, and promotional work to advance the use of wood in commercial, industrial, institutional, and high-rise construction in Canada.

No evaluation in 2022-23.

Evaluation of Forest Sector Competitiveness Program (DRF inventory program) is planned for completion by December 2024.

On November 8, 2021, EMO issued its annual call for proposals for the 2022-23 fiscal year announced by distribution list email and through the NRCan EMO website.  A similar number of proposals were submitted through its online funding management system than the previous 2 fiscal years.

Engagement remained high during fiscal year 2022-23 despite Covid-19 continued to impact the delivery of work plans. Program officers continued to support recipients to pivot to adopt alternative methods to deliver their programming. And recipients continued to submit their interim reporting on time and the quality did not diminish throughout the year.

Finally, EMO co-funded the Wood Best Practices Forum series again in 2022-23 with BC Forestry Innovation Investment, a Provincial Crown Corporation.  Each session discussed different topics for wood manufacturers and offered a chance for recipients to offer best practices to their peers.  Sessions were well attended by Association representatives.

The purpose of the program is to:

• Enhance whole-of-society collaboration and governance to strengthen resilience.
• Enhance disaster response capacity and coordination and foster the development of new capabilities to:
  • Increase capacity to prepare for and respond to wildfires

NRCan provides funding to support:

• Stream 1 – Equipment Fund: Strengthening capacities and capabilities in fire management across Canada by improving prevention, mitigation, preparedness and response.
• Stream 2 – Training Fund: Increasing, by 1,000, the number of and access to trained firefighters and specialized fire management personnel, particularly in Indigenous communities that are at highest risk to wildland fires.

There are no repayable contributions under this program.

Stream 1 - Equipment Fund:

The program committed over $8.3 million in funding across 6 province and territories. These investments were used to procure new wildfire equipment or to repair, refurbish, refit existing equipment. A portion of this equipment is made available to other jurisdictions through national exchange agreements.

Stream 2 – Training Fund:

The program committed over $2.1 million in funding through five, two-year contribution agreements, signed with Indigenous organizations. These investments will contribute to the training or enhance the training of up to 220 wildland firefighters and 125 fire guardians/stewards.

No evaluation in 2022-23.

Joint Audit and Evaluation of Disaster Risk Reduction is planned for completion by June 2025.

The purpose of the Forest Innovation Program (FIP) is to enable transformation in the Canadian forest industry. More specifically, the FIP will help drive forest sector transformation, sparking enterprises in their move beyond a dependence on commodity products toward value-added, high-value and specialty products – sustainably extracting the maximum value from the fibre resource. To achieve this, the FIP will facilitate and promote a value-chain approach that addresses innovation from the seed to the end markets and products in which the right fibre is matched to the right product.

This transfer payment program does not have any repayable contributions.

In 2022-23, the FIP program funded FPInnovations to support over 20 projects that are currently running or are in development. FIP funded Transformative Technologies Program Research for collaborative industry-focused pre-competitive research and development and technology transfer and Initiatives to accelerate a few highly promising projects. All FIP-funded projects were reviewed and endorsed through long-standing advisory and approval processes to ensure all forest-based research and development and deployment programs are aligned to address key opportunities and threats facing Canada’s forest sector.

Transformative Technology Collaborative Research examples include:

• To promote sustainable pulp and paper mills, research on lime kiln decarbonization is being conducted, as the lime kiln is the most fossil-based, carbon-intensive process unit in a kraft mill. Cost benefit analysis for other options, based on a survey of 19 Canadian mills, and the selection of the most suitable demonstration plant, were achieved.
• Lab-scale experiments were conducted to reduce the hydrolysis time of both softwood and hardwood biomass, as a potential by-product of pulp and paper mills through the biorefinery process.
• In forestry operations, remote sensing for precision forest inventory field data collection using tree stem image, tree stem LiDAR, and mobile terrestrial research was completed with university and NRCan research partners.

A Transformative Technology Initiative example is:

• Conducted more pilot testing in BC and AB, and augmented and optimized the use of lignin in a bitumen mix to develop a more environmentally sustainable concrete using wood biomass.

To enhance the work on fibre optimization, NRCan’s Canadian Wood Fibre Centre continued to advance internal innovative research, coupled with technology transfer initiatives, in the areas of fibre characterization, precision forestry, genomics, adaptive forest management practices, changing climate impacts on growth and yield, and value chain optimization (digitalization). Research examples include:

• Developing spatial modeling of wood fibre attributes with terrestrial lidar scanners to better match the right fibre to the right end use; and,
• Innovative tree breeding to enable foresters to grow stock with increased growth potential, disease resistance, or desirable wood qualities.

The Canadian Wood Fibre Centre’s Fibre Solutions contribution program invested $1 million as planned on research in areas such as enhanced forest inventory, data analysis and integration, and social acceptability of research applications.

No evaluation in 2022-23.

Evaluation of Forest Sector Competitiveness Program is planned to be approved by December 2024.

Officials met with the principal named recipient, FPInnovations, on a regular basis, to monitor progress on workplan. Any other potential funding recipients are engaged directly by program officials.

The only open call for proposals through FIP is via the Canadian Wood Fibre Centre, where there were no differences in recipient activities related to the departmental plan.

NRCan’s Green Construction through Wood (GCWood) Program is aimed at supporting the use of wood in non-traditional construction projects, such as tall buildings, low-rise non-residential buildings and bridges. The GCWood Program launch follows the Government’s Budget 2017 announcement of $55 million over five years, starting in April 2018, to undertake this initiative.

The GCWood Program supports Canada’s transition to a more wood-inclusive construction industry by funding projects that encourage:

• Greater adoption and commercialization of wood-based products in the construction of innovative tall buildings, bridges, and low-rise non-residential buildings;
• Replication of demonstrated innovative non-traditional wood-based buildings and timber bridges;
• Research that addresses the gap in technical information needed to facilitate revisions to the 2020 and 2025 National Building Code of Canada (NBCC) to allow tall wood buildings beyond the current 6 storey limit; and,
• Development and provision of training/education programs, life-cycle assessment and other tools for students, and design and construction professionals interested in building with wood and wood products.

The Program provides non-repayable contributions of up to 100% of a project’s eligible incremental costs for the demonstration of innovative engineered wood products and systems. The funding is intended to offset the cost of being the “first mover” of wood-intensive projects, and to fund the development of knowledge and tools to support the success of future projects.

GCWood supported 27 projects in 2022-23: 13 demonstration projects and 14 R&D projects. As an example, GCWood provided funding to Vancouver School Board to rebuild two elementary schools in Vancouver using mass timber to meet seismic requirements in BC. Completed in 2023, the projects are highly replicable given the type of mass timber structural system especially in schools and other education and institutional buildings. Exposed mass timber and its biophilic benefits in addition to its aesthetics make it even more popular by school boards.

GCWood provided continued support to the code change process in Canada by funding key R&D activities at the National Research Council (NRC) to address research gaps identified by the Standing Committees of the Canadian Commission on Building and Fire Codes (CCBFC).  These activities helped support the inclusion of encapsulated mass timber buildings up to 12-storeys in height in the 2020 National Building Code of Canada (NBCC) which was published on March 28, 2022.  GCWood also helped lay the groundwork for transitioning the building code to become more performance based in the future editions of the NBCC and the announcement of funding in Budget 2022 to NRC to see these efforts undertaken.

GCWood continued to support efforts to advance wood education at engineering and architectural schools across Canada by funding the development of key educational resources and tools required to support wood design education, such as: curricula, handbooks, technical guides, and course materials. In 2022-23, saw the funding of three manuals that will be published this fiscal year.

The program also continued to update the State of Mass Timber Interactive Map which looked at the history of mass timber in Canada and the current state of mass timber construction and manufacturing capacity.  The Interactive SMTC Map is updated regularly and now contains information on over 785 mass timber buildings and 19 manufacturing facilities. This tool has been well received by industry, governments, and other stakeholders, domestically and abroad.

Evaluation of the Green Construction through Wood (GCWood) Program was approved in December 2022.

The evaluation of the GCWood program indicates its relevance and alignment with industry needs for research, technology transfer, and education in mass timber and hybrid construction designs. The program was delivered efficiently, with a sound governance structure and balanced coverage across various components. However, resource constraints, including insufficient staff, affected initial commitments, and the COVID-19 pandemic caused delays. The program is on track to achieve its immediate outcomes, but expanding engagement to a wider audience and addressing external factors are necessary. The program has contributed to code revisions, but replication of demonstration projects and ambitious outcomes require further attention. Evaluation highlights inconsistencies in data recording and a need to revisit the program's performance framework, considering GBA Plus considerations in the future.

A total of three recommendations were made.

Program applicants are supported through the establishment of a dedicated program website, which includes access to program guides, eligibility requirements, project announcements, and program administration details.

GCWood issued a public Call for Expressions of Interest for each aspect of the demonstration component which was promoted through the NRCan website and social media, as well as through partner organizations across the country. The program likewise takes unsolicited proposals from industry for education and design tool projects.

Selected program recipients are further engaged through regular contact with program administrators to monitor project progress and report against set objectives.

In 2022-23, the 2 Billion Trees program supported the planting of an additional 27.9 million trees. This brings the total trees planted since the program’s start in 2021 to over 110 million, including over 54 million planted under Environment and Climate Change Canada’s Low Carbon Economy Fund in 2021. Tree planting in 2022-23 represented 197 species, at more than 1100 sites across 10 provinces. Tree planting projects funded through 2BT ranged from restoration of habitat for species at risk, enhancement of biodiversity, creation of forest ecosystems on fire-damaged land, increased carbon capture, capacity building, and the creation of parks and greenspaces in and around cities. In 2022-23, 41% of all supported projects were urban, and 22% were Indigenous led.

2BT’s third call for proposals launched in December 2022. This ongoing call for proposals focuses on long-term agreements with eligible applicants, including Indigenous governments and organizations, municipalities and for- and non-profit organizations. As of March 31, 2023, the program had already received 46 project applications. The program has also signed 7 Agreements in Principle with provinces and territories, leveraging a shared commitment with provincial and territorial governments to deliver social and environmental benefits for Canadians through tree-planting.

External audit by the Commissioner of the Environment and Sustainable Development (CESD), “Forests and Climate Change” was completed in April 2023.

CESD found that Natural Resources Canada, working with Environment and Climate Change Canada, did not adequately design and implement the 2 Billion Trees Program. Given the early trends and issues establishing partnerships, it is unlikely that the program will meet its objectives unless significant changes are made.

CESD also found that Natural Resources Canada, working with Environment and Climate Change Canada, did not provide a full and transparent picture of how Canada’s forests remove carbon from the atmosphere or contribute carbon to it. Natural Resources Canada developed a system to estimate greenhouse gas emissions and removals in Canada’s forests, and the departments’ reporting answered to international obligations. However, there were several opportunities to make the estimates and the resulting reporting more consistent, easier to understand, and more accessible and useful to decision-makers and the public.

Seven recommendations were made, four of which were addressed to NRCan, two were addressed to ECCC, and one addressed to both departments.

No evaluation in 2022-23.

Horizontal Evaluation of Natural Climate Solutions Fund (including 2 Billion Trees) is planned for completion by March 2025.

Building off of broad and extensive engagement in 2021, in 2022-23, the 2 Billion Trees (2BT) program conducted more targeted engagement with stakeholders to better understand unique challenges, opportunities and assess needs.

Informed by early engagement with Indigenous partners in 2020 and 2021, the program committed to co-developing the Indigenous Funding Stream. In 2022-23 the program engaged with regional and national Indigenous governments and organization to ensure funding delivery reflects diverse Indigenous cultures and priorities, while also contributing to Indigenous leadership on climate change. Indigenous governments and organizations were unanimous in their desire to see funding delivered using a distinctions-based approach. 2BT will deliver the Indigenous Stream Funding via allocations to First Nations, Metis, Inuit and Unaffiliated/Cross-Distinctions, a first for NRCan.

The program also undertook targeted engagement with nurseries across Canada to assess their readiness for the upcoming demand that will be created by the program. In December 2022, the program launched an ongoing call for proposals so stakeholders can apply to the program as they are ready. This has included a proactive strategy to conduct bi-monthly webinars to provide consistent and coherent messaging to stakeholders and inform next phases of the 2BT program.

In 2022-23, the program attended and presented at several virtual and in-person events to clearly communicate the objectives of the program and upcoming opportunities for stakeholders.

The program has continued collaboration with the CFS’s Knowledge Mobilization group to ensure that recipients and collaborators have the knowledge and tools they need to plant trees. The 2BT website has been updated to share a story map of projects, more details on the goals and importance of planting two billion trees, and progress to date with Canadians. 

To advance the decommissioning of legacy uranium mine and mill tailings in the Province of Saskatchewan according to current regulatory standards.

To provide financial contributions to the Government of Saskatchewan for it to undertake decommissioning activities at the Gunnar uranium mine site. **

This program does not contain any repayable contributions.

Cost effective and timely action was taken to address the current environmental condition associated with the Cold War Legacy Uranium Mine and Mill Sites.

During 2022-23, Natural Resources Canada reviewed Saskatchewan’s annual reports for the project and had one meeting with Saskatchewan to discuss progress on the project, both of which are required activities under the 2006 Memorandum of Agreement (MOA). No other results were achieved.

$11.17 million in federal funding was available to be contributed in 2022-23 for the remediation and monitoring phases of the Project, subject to minor amendments being made to the 2006 MOA. Saskatchewan has not yet agreed to the amendments or accessed these funds, and they have been re-profiled to future years.

No evaluation in 2022-23.

No evaluation is currently planned for this program given its low materiality. The program will continue to be considered in NRCan’s annual departmental evaluation planning exercise.

Yearly meetings between NRCan and Saskatchewan Ministry of the Economy officials to discuss progress on the project.

NRCan reviewed Saskatchewan’s annual reports for the Project and met with Saskatchewan once during 2022-23 to discuss progress on the Project, as required under the 2006 MOA.

Canada filed an Amended Statement of Defence in August 2020 in response to Saskatchewan’s March 2020 Amended Statement of Claim. NRCan officials met with Saskatchewan officials for court-required mediation in September 2020. No further progress on the legal dispute was made in 2022-2023. The activities related to Saskatchewan’s legal actions are not planned activities outlined in the Departmental Plan.

Helping Canadians make their homes more energy efficient reduces energy demand and supports Canadian environmental objectives while making homes more comfortable and more affordable to maintain, as well as creating good, middle-class jobs in their communities.

The program will provide grants of up to $5,000 to help homeowners undertake energy-efficient improvements to their homes supported by EnerGuide evaluations, which qualify for reimbursement of up to an additional $600.

This transfer payment program does not have any repayable contributions.

In 2022-23, the Canada Greener Homes Initiative (CGHI) continued spurring interest and activity in the retrofit economy, by helping homeowners undertake energy efficient improvements to their homes, by building awareness of benefits of energy evaluations, high performance construction and clean equipment, as well as skills training opportunities.

In 2022-23, the program received 134,285 applications, issued 56,920 grants to homeowners, and funded $215.9M grants and contributions. As well, 248 new Energy Advisors were added, and agreements were made with training organizations to support training of additional advisors across Canada. Co-delivery options with Provinces and Territories have also been increased, on boarding full co-delivery with Ontario/Enbridge and Nova Scotia.

The Oil to Heat Pump Affordability Program was launched in February 2023, to support homeowners to swap heating oil with electric heat pumps. It focuses on low-to-median income households to switch from oil heating to highly energy efficient heat pumps.

No evaluation in 2022-23.

Joint Audit and Evaluation of Greener Homes Initiative is planned for completion by March 2026.

Continued consulting with stakeholders of the program, including provincial and territorial governments, national Indigenous organizations, industry associations, and stakeholders representing diverse groups of Canadians to ensure that stakeholders are supportive of the program design and its complementarity with existing provincial programming.

Engaged with Provinces and Territories resulting in increased co-delivery options, Program is in full co-delivery with Ontario/Enbridge and Nova Scotia. Process enhancements are ongoing with Quebec/ Renoclimat.

Extensive outreach undertaken with First Nation, Inuit, Metis governments and national and Indigenous organizations and housing corporations resulted in 36 applications by March 2023. Engagement continues on partners' readiness options.

To make funding 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;
• 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
• Address environmental concerns related to the broader pipeline corridor over the full lifecycle of the project.

This transfer payment program has non-repayable contributions.

In 2022-23, the Indigenous Advisory and Monitoring Committees (IAMCs) for the Trans Mountain Expansion (TMX) and Line 3 Replacement projects delivered approximately $8,007,625 in funding through 21 contribution agreements.

The IAMC for TMX provided approximately $7.75 million in contribution funding in 2022-23 through a single agreement under the direction of the Indigenous Caucus to:

• support Indigenous participation on the IAMC-TMX;
• progress toward greater Indigenous self-determination and an enhanced role for Indigenous peoples as decision makers in project oversight;
• provide capacity funding to Indigenous communities through the Capacity Building Funding Program and Continuous Funding Program in the areas of stewardship, protection and meaningful participation;
• support Indigenous monitoring;
• address Indigenous inclusion in emergency prevention, preparedness and response;
• reduce harm and mitigate impacts of work camps;
• maximize knowledge-gathering and promote information sharing, including Indigenous knowledge and protocols;
• support employment, training and business opportunities;
• support the Indigenous Caucus to provide advice to the Canada Energy Regulator; and,
• deliver the IAMC-TMX Indigenous Monitoring Program, which to date has trained 66 Indigenous monitors who have spent 129 days out in-the field participating in 52 regulatory activities.
  

The IAMC for Line 3 provided approximately $257,625** in contribution funding in 2022-23 to:

• support Indigenous participation on the IAMC-L3 including through line wide gathering, committee and subcommittee meetings, and external conferences relating to natural resource projects;
• implement the IAMC-L3 Indigenous Monitoring Program, including 5 inspections with the Canada Energy Regulator and one emergency management exercise;
• conduct monitoring training initiatives and support Emergency Management capacity development;
• Engage various government departments and officials following up on the advice to government that the committee provided in December 2019; and
• Develop various training including an extensive regulatory training program with numerous e-learning modules available through the L3-IAMC website.

** Expenditures were lower than anticipated in fiscal year 2022-2023 because projects were given the flexibility to spend until December 31, 2022.

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

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

The purpose of the program is to increase Indigenous participation in economic development opportunities in order to contribute to a more environmentally and commercially sustainable natural resource sector.

The objective of the program is to increase the capacity of Indigenous communities to engage in and benefit from economic development arising from opportunities in the natural resource sectors, as well as to increase the investment and collaboration between Indigenous peoples and other natural resource development stakeholders, including governments, industry, and non-governmental organizations.

Through the Indigenous Forestry Initiative, the program supports several Government of Canada priorities, including advancing reconciliation and enhancing economic outcomes in Indigenous communities.

At a departmental level, the program directly supports the Minister of Natural Resources’ mandated commitments to support forest sector competitiveness, advance reconciliation with Indigenous peoples, and the Department’s Program Activity 1.2 – Innovation for new products and processes and Sub-Program 1.2.2 – Forest sector innovation.

This program provides non-repayable contributions.

The Indigenous Forestry Initiative (IFI) held a call for proposal in 2021-22, which resulted in a record 136 proposals received representing total funding requested of $73 million – greatly exceeding available program funding.

Over the 2022-23 fiscal year, the Indigenous Forestry Initiative negotiated and signed contribution agreements. A total of 36 new Indigenous-led projects were funded over the last fiscal year and 11 ongoing projects continued to receive funding, for a total of $7.5 million in program funding committed/allocated.

In addition, IFI has worked in collaboration with the Indigenous Natural Resources Partnerships program in Nòkwewashk to support the implementation of 16 additional Indigenous forestry projects representing a total of over $4.5 million in funding from 2022-23 to 2024-25.

There are no discrepancies between expected results outlined in in the 2021-22 Departmental Plan and results for the last full reporting year (2021-22):

Planning of New Businesses - 2
Expanding Businesses - 1
New Businesses - 1
Count of Capital Projects - 2
Count of Training Projects - 1
Joint Ventures (Indigenous Organizations Partnering with Non-Indigenous Organizations - 0

• Regional Liaison Officers in five Canadian Forestry Service regions engage directly with Indigenous communities and interested applicants, to raise awareness of the program and other NRCan programs, and to support Indigenous-led projects and partnerships planning. Over the 2022-23 fiscal year, they participated in 60 engagement activities with Indigenous communities and recipients.
• In September 2022, NRCan held a meet and greet with key Indigenous forestry partners, including existing and former IFI recipients. The meeting served as an introduction between the new NRCan staff and Indigenous participants and gave an opportunity to discuss challenges in the Indigenous Forest sector, and relationships with federal and provincial governments.

The Indigenous Natural Resource Partnerships (INRP) program supports the federal government’s commitment to advance reconciliation with Indigenous peoples by increasing the economic participation of Indigenous communities and organizations in the development of natural resource projects that support the transition to a clean energy future.

This transfer payment program does not include any repayable contributions.

The Program supported and increased the economic participation of Indigenous communities and organizations in the development of natural resource projects. From its inception in 2019 the INRP has supported 65 Indigenous economic development projects.

Since the program relaunched in November 2022, NRCan has established 17 agreements with Indigenous communities for projects in critical minerals literacy, capacity building to secure investment opportunities in natural resource projects, and Indigenous-led forestry programs, across jurisdictions and distinctions – thereby creating a more ‘equal playing field’ for Indigenous communities to have a voice on economic activities that impact their communities.

A Joint Audit and Evaluation of Advancing Reconciliation is in progress and planned for completion by May 2024.

Evaluation of Indigenous Natural Resource Partnerships is planned for completion by March 2027.

• The INRP is delivered in concert with the Indigenous Partnership Office (IPO). The IPO is the Indigenous engagement backbone of the program, with a resolute on-the-ground, and place-based Indigenous partnership approach; centred on understanding, addressing, and advancing economic development priorities of Indigenous communities and organizations.
• The engagement team of the IPO expanded in late March 2023 to strengthen the Nókwewashk’s Indigenous engagement capacity and its ability to build deeper relationships in the provinces and territories.
• Also serving as an information hub for Indigenous engagement planning and advice across NRCan, since April 2023, the team has assisted six sectors, 10 departmental initiatives, and participants in three interdepartmental working groups.
• INRP program delivery staff in 2022-2023 have held 77 meetings with Indigenous organizations to support proposal concepts and development have had almost 100 direct contacts with applicants and funding recipients. 

The Investments in Forest Industry Transformation (IFIT) Program offers non-repayable contributions towards capital projects, feasibility studies, and outreach activities undertaken by Canadian forest industry firms to implement first-in-kind technologies, products, and processes. IFIT contributions help to de-risk innovation and enable the forest sector to adopt a more diverse product mix including bioenergy, biomaterials, biochemicals, and next generation building products.

The Program funds innovative projects at the pilot and commercial scales that direct wood fibre and by-products from wood processing into higher value usages which:

• Increase the total revenues available from wood fibre;
• Diversify product lines for the forest industry, improving economic performance and job growth; and,
• Produce renewable energy and other bioproducts that are beneficial to the environment and the emerging bioeconomy.

By providing funding to Canadian forest firms to advance these technologies towards full, commercial-scale implementation, IFIT will broaden and build upon previous investments in forest sector transformation. This transfer payment program does not have any repayable contributions.

In fiscal year 2022-23, the program invested $84.2 million in 45 projects to support the competitiveness of Canada’s forest sector, as well as its transformation as a key contributor to Canada’s bioeconomy. These projects also provide green, well-paying jobs to communities across Canada.

Examples include:

• $3.6 million to International Paper Company in Alberta for the implementation, in collaboration with Via Separations Inc., of a first-of-its-kind filtration technology aimed at reducing the energy intensity and carbon emissions associated with the kraft pulping process in pulp mills. 
• $10 million to Kruger Packaging to modernize its Place Turcot Containerboard Mill in Montréal. Once completed in 2025, the Place Turcot facility will be the first in North America to manufacture 100% recycled saturating kraft board, a product that is used to make high-pressure laminates for furniture, countertops and decorative paneling.

No evaluation in 2022-23.

Evaluation of Forest Sector Competitiveness Program is planned for completion by December 2024.

The Contribution Program is designed to support the Government of Alberta in the management of mountain pine beetle (MPB) in order to protect forest resources and communities from the negative socio-economic and environmental impacts of the current MPB infestation in Alberta.

The contribution agreement will be directed towards two activity streams: A) MPB management operations, and B) MPB research that supports the efforts of the Government of Alberta to mitigate risks and impacts of the MPB infestation.

The objectives of the Program are to:

• Limit the spread of MPB and mitigate negative consequences of the beetle in Alberta; and,
• Generate knowledge and innovative management techniques through research on MPB.

This program provides non-repayable contributions.

Effective control of MPB populations in Alberta’s forests

Performance indicator: An increased percentage of surveyed sites with decreasing or static MPB populations.

2022-23 results: 100% of infested sites surveyed in the MPB management area had static or decreasing populations, a further reduction from 89% in 2021-22.

Protection of Alberta’s pine forests at risk from MPB infestation

Performance indicator: Percentage change in the number of infested trees detected in Alberta.

2022-23 results: From 2021 to 2022, there was a 67% decrease in the number of infested trees detected during aerial surveys in Alberta.

Forest sector has access to enhanced scientific knowledge pertaining to MPB infestations and related risks

Performance indicator: Number of publications on MPB and related risks

2022-23 results: There were 3 peer‐reviewed publications on MPB in the 2022‐23 fiscal year. Research projects were delayed in the first year of the Program due to a late signing of the contribution agreement. MPB-related publications are therefore expected to increase in future years.

No evaluation in 2022-23.

Evaluation of Pest Risk Management Program is planned for completion by June 2027.

Statutory: Payments to the Newfoundland Offshore Petroleum Resource Revenue Fund

(Canada-Newfoundland and Labrador Atlantic Accord Implementation Act)

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.

100% of the payments to Newfoundland and Labrador were processed on time and in accordance with the applicable regulations.

The amount of money transferred to Newfoundland and Labrador is largely based on royalties from offshore oil production and is subject to change. Royalty amounts vary year-to-year as a result of fluctuations in the crude oil prices, exchange rates, changes in production levels, the timing of sales and Corporate Income Tax (CIT) collected.

Payments during this fiscal year also included some forfeitures of exploration licences and administrative monetary penalties issued by the Canada-Newfoundland and Labrador Offshore Petroleum Board.

The last cycle of the Continuous Audit of Offshore Revenues and Transfers was completed in October 2021.

As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch conducts audits and reports annually on select processes. The Continuous Audit covering March 2020 to March 2021 found that 14 of 15 key controls tested were effective, while one was partially effective.

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.

100% of the payments to Nova Scotia were processed on time and in accordance with the applicable regulations.

Offshore gas production ended in the Canada-Nova Scotia offshore in 2018. The amount of money transferred to Nova Scotia is subject to change based on provincial royalty audits, forfeitures, and re-assessments.

• Encourage and accelerate innovation in the natural resources sectors;
• Assist in the protection of our natural resources, encourage and develop new and more efficient techniques and technology for sustainable development of our natural resources;
• Provide for a better understanding and knowledge of our natural resources.

Contributions will not be repayable as they will be for projects whose primary aim is fundamental research, research and development, demonstration and other pre-commercial activities.

Since the Research terms and conditions provide a mechanism to further program objectives, the results were considered in the context of evaluations of the programs using this vehicle.

Actual results (outcomes) achieved are:

• 69% of users have reported that the Research Terms and Conditions were accessible.
• 85% of users have reported that this mechanism met their needs.

No evaluation in 2022-23.

No evaluation is currently planned for this program given its low materiality. The program will continue to be considered in NRCan’s annual departmental evaluation planning exercise, in accordance with section 42.1 of the FAA and the TB Policy on Results.

• Natural resource sectors are innovative
• Clean technologies and energy efficiencies enhance economic performance
• Canada’s natural resources are sustainable

• Energy Innovation and Clean Technology
• Electricity Resources

The Smart Grid program invested $100M over five years (2018-19 to 2022-23) to promote the modernization of grid infrastructure by funding the demonstration of promising, near-commercial smart grid technologies and the deployment of smart grid integrated systems across Canada in order 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 security of the systems.

This transfer payment program is repayable as follows:

• Demonstration stream: Contributions under this Program are non-repayable since the activities and benefits from the contributions are pre-commercial.
• Deployment stream: Repayable, if the deployment leads to a profit within five years following the project commissioning. The requirements for reporting profits are detailed in the contribution agreement, along with the process for repayment.

NRCan completed delivery of the $100 million Smart Grid Program, which promoted the modernization of grid infrastructure by funding the demonstration of promising, near-commercial smart grid technologies and the deployment of smart grid integrated systems across Canada, and secured renewal of funding based on the program’s successes. For demonstration projects active in 2022-23, NRCan funds were leveraged by contributor funds at a ratio of 3.21:1 (contributors: NRCan), surpassing the program’s target of 1:1. For deployment projects, the leveraging ratio was 3.4:1, surpassing the target of 3:1.

During the program, 22 projects were successfully funded and completed, including:

• $5 million to the Independent Electricity System Operator of Ontario to demonstrate using distributed energy resources (such as batteries) at participating commercial and industrial facilities to support the York Region’s electrical grid, as an alternative to building new electrical infrastructure. The project won Electricity Canada’s Centre for Excellence 2023 Award, which showcases the best Canadian electricity ingenuity, inspiration and aspiration.
• $2 million to ENMAX Power Corp. to demonstrate mechanisms for integrating electricity generated by customer-owned solar panels into Calgary’s grid (which up until this point was operated in a way which prohibited customers from injecting power back to the grid) and to share findings with other municipalities faced with similar barriers across North America.
• $6.1 million to Nova Scotia Power and $6.2 million to the NB Power Corporation to develop, deploy and pilot solutions to integrate distributed energy resources, such as rooftop and community-scale solar installations and battery storage, into the grid and to engage with communities on energy consumption and energy asset ownership.

The Smart Renewables and Electrification Pathways Program (SREPs) provides direct financial support to projects that support the transition towards electrification through the deployment of renewable energy projects capable of providing grid services and transformation of the Canadian electricity grid. The program is also decreasing barriers to participation for those under-represented in the energy sector through its Equity, Diversity and Inclusion (EDI) requirements. SREPs offers a Capacity Building Stream to support the equitable transition to a cleaner electrical grid, helping communities and organizations acquire the knowledge and tools needed to develop renewable energy and grid modernization projects.

SREPs funding is conditionally repayable for recipients who are for-profit and where a project generates profits within the first five years of operation.

The $1.56 billion in SREPs funds announced in Budgets 2021 and 2022 is fully allocated. SREPs was recapitalized in Budget 2023.

SREPs has no targets or expected results before 2024-25.

As of March 31, 2023, the Program had approved 121 deployment and capacity building projects across nine provinces and one territory, including six national capacity-building projects, over half of all projects have meaningful Indigenous ownership. These projects will add over 2700 MW of new renewable energy generation capacity to the grid, leading to annual GHG emission reductions of 3.2 Mt/year. Projects supported by SREPs have created ~34,000 job years, and 100% of applicants have included an Equity, Diversity, and Inclusion Plan. Altogether, the total cost of these projects is $6.4 billion.

No evaluation in 2022-23.

Evaluation of Smart Renewables and Electrification Pathways is planned for completion by March 2026.

During program design, Departmental officials invited industry organizations, governments, academia, Indigenous organizations, and other potential proponents including private developers, electricity system operators, and utilities to information sessions on the program. Following program launch, the Department contacted these groups to notify them, and contacted provincial government representatives, both at the working and management level to solicit general feedback.

Program advisors regularly meet with provincial/territorial representatives in targeted provinces to ensure linkages between federal and provincial support for SREPs projects.

Indigenous representatives and non-government subject matter experts are involved in the evaluation process for capacity building stream proposals.

Phase III of the Early Intervention Strategy (EIS) for Spruce Budworm (SBW) is a research program investigating a new pest management approach in response to the ongoing significant economic and ecological risks of a spruce budworm (SBW) outbreak to Atlantic Canada’s forest sector and forest health.

The Phase III program includes a suite of integrated research activities and operational insecticide applications to validate the EIS’s scientific foundation, enhance its efficacy for any emerging outbreaks of SBW, and protect the region’s forests.

Through the Forest Pest Risk Management Program, the initiative will contribute to the Departmental Result “Canadians have access to cutting-edge research to inform decisions on the management of natural resources” by implementing and validating a novel forest pest management approach supported by science knowledge and tools to address forest pest issues 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 impeding outbreaks of SBW to mitigate risks to forest resources or other related values.

The Program is based on a 50:50 federal to provincial and industry cost-sharing requirement. There are no repayable contributions.

As a result of the renewal of the Early Intervention Strategy for Spruce Budworm program, over 165,000 hectares of forest were treated in New Brunswick and Newfoundland and Labrador in 2022 to continue protecting jobs in the forest sector, supporting the economy, and preserving forests at risk. Nova Scotia and Prince Edward Island did not conduct EIS treatment programs in 2022-23.

In addition, a large suite of research was initiated by Natural Resources Canada in Atlantic Canada, Ontario, and Quebec to improve the knowledge and tools to address current and future SBW outbreaks. NRCan also launched a call for proposals for the EIS Small Scale Research program which supports external research projects beginning in 2023-24.

To date, only low levels of SBW damage have been observed throughout New Brunswick and in treated areas in Newfoundland and Labrador, with no impact on wood supply or the economy.

Expected Results: EIS treatments keep SBW populations below outbreak threshold

Performance Indicator: Percentage of forest areas selected for treatment where spruce budworm populations remain below outbreak threshold.

In NB, 87% of forests within the 2022-23 EIS treatment areas remain below outbreak threshold.

In NL, 43% of forests within the 2022-23 EIS treatment areas remain below outbreak threshold.

Expected Results: Protection from defoliation of Atlantic Canada’s forests at risk of a SBW outbreak.

Performance Indicator: Level (%) of defoliation from spruce budworm observed in treated areas of Atlantic Canada at risk of a spruce budworm outbreak

In NB, 98% of the 2022-23 EIS treatment area has zero to light defoliation (≤ 30%); 2% of the area has moderate to severe defoliation (<30%).

In NL, 79% of the 2022-23 EIS treatment area has zero to light defoliation (≤ 30%); 21% of the area has moderate to severe defoliation (<30%).

Expected Result: Increased availability and access to scientific knowledge and advice pertaining to forest pests, in particular SBW, and related risks.

Performance Indicator: Number of publications pertaining to spruce budworm and related risks from NRCan or supported by NRCan contribution funding.

In 2022-23, there were 19 publications pertaining to spruce budworm and related risks from NRCan or supported by NRCan contribution funding.

Performance Indicator: Number of presentations on EIS scientific projects made to stakeholders, including advisory committees, advisory boards and conferences involving the sharing of knowledge and information on forest pests and related risks, in particular SBW, to governments, industry, and non-governmental organizations.

In 2022-23, there were 34 presentations delivered on EIS scientific projects.

Performance Indicator: Decision makers integrate scientific knowledge and information in risk management decisions pertaining to spruce budworm early intervention strategy

This data will be gathered in 2023-24.

Joint Evaluation and Audit of the Spruce Budworm Early Intervention Strategy – Phase II in July 2022.

The engagement found that:

• There is a continued need for the SBW EIS-II program to protect forests in Atlantic Canada from SBW outbreaks.
• The SBW EIS-II is well aligned with governmental priorities and supports efforts aimed at mitigating the economic consequences of defoliation
• The SBW EIS-II has achieved one of its short-term outcomes by maintaining SBW populations below outbreak levels in Atlantic Canada through its targeted insecticide application operations
• The program has demonstrated progress towards achieving its intermediate and long-term outcomes. However, achievement of these outcomes requires longer time horizons and as such whether the long-term outcomes are ultimately achieved will depend on whether the program is able to continue its activities.
• There are effective governance structures in place that provide adequate program oversight. The HFP Steering Committee is responsible for overseeing the progress of the SBW EIS-II while making recommendations to NRCan managers and funding collaborators. There is adequate and diverse representation of key stakeholders on each committee, which supports sound decision-making for the program.

A total of three recommendations were made.

Next Evaluation of Pest Risk Management Program (DRF Program) is planned for completion by June 2027.

The Strategic Interties Predevelopment Program (SIPP) is intended to advance interprovincial electricity transmission infrastructure projects including the Atlantic Loop and the Prairie link. Funding is provided to help proponents complete project predevelopment work including for example: engineering assessments, community engagement, and environmental and regulatory studies.

Contributions made under SIPP are non-repayable.

As of 2022-2023, there have been three contribution agreements signed to fund for example: engineering assessments, community engagement, and environmental and regulatory studies.

Beyond the completion of select studies and related knowledge creation for utilities, SIPP has no targets or expected results before 2024-25, given the long-term nature of its program objectives (i.e., physical construction of strategic interties).

No evaluation in 2022-23.

Evaluation of Electricity Predevelopment is planned for completion by June 2026.

After receiving an application, NRCan remained in contact with and engaged the applicant as appropriate to guide them through the application process. NRCan did not conduct additional engagements related to SIPP beyond that considered standard for a program of this scope. NRCan engaged in targeted outreach to some proponents following program launch.

During program design, Departmental officials invited industry organizations, governments, academia, Indigenous organizations, and other potential proponents including private developers, electricity system operators, and utilities to information sessions on the program. Following program launch, the Department contacted these groups to notify them, and contacted provincial government representatives, both at the working and management level to solicit general feedback.

The objective of this program is to support active and meaningful Indigenous involvement in issues related to the Trans Mountain Expansion project to address potential project-related impacts and cumulative effects.

This Transfer Payment Program does not include any repayable contributions.

In 2022-23, NRCan implemented Accommodation Measures for the Trans Mountain Expansion project, 32 new Contribution Agreements (CAs) were established with Indigenous groups for the following initiatives:

• Terrestrial Studies Initiative (TSI): 4 new CAs were established, raising the total to 76. By the end of 2022-23, 38 TSI communities submitted final reports, received final payments, and successfully closed their CAs. TSI Funding was accessed by 59% of the potential 129 communities.
• Terrestrial Cumulative Effects Initiative (TCEI) Capacity Funding: 14 new CAs were established, raising the total to 86. By the end of 2022-23, 41 TCEI communities had submitted final reports, received final payments, and successfully closed their CAs. TCEI Capacity Funding was accessed by 67% of the potential 129 communities.
• Aquatic Habitat Restoration Fund (AHRF) Capacity Funding: 12 new CAs were established, raising the total to 101. By the end of 2022-23, 43 AHRF communities had submitted final reports, received final payments, and successfully closed their CAs. AHRF Capacity Funding was accessed by 78% of the potential 129 communities.
• Phase IV Participant Funding: 2 new CAs were established during 2022-23, raising the total to 16. By the end of 2022-23, 12 Phase IV communities submitted final reports, received final payments, and successfully closed their CAs.

Under these Contribution Agreements, nearly 90% of the eligible Indigenous groups, out of a total of 129, have successfully accessed over 84% of the available funding through one or more of the initiatives under the Accommodation Measures for the Trans Mountain Expansion project funds.

In light of COVID-19 and other pressures including natural disasters, the eligible expenditure period for these initiatives was extended from March 31, 2021 to December 31, 2022, and for those who required a second extension from December 31, 2022 to March 31, 2023 was offered, to provide Indigenous groups with sufficient time to complete their projects. The process of closing the remaining contribution agreements under these initiatives is ongoing.

No evaluation in 2022-23.

Joint Evaluation of Trans-Mountain Pipeline Expansion - Terrestrial Cumulative Effects Initiative is planned for completion by December 2024.

NRCan engaged recipients regularly via email and phone to ensure compliance with the requirements of the contribution agreements and to support access to funding in a timely manner.

Engagements for delivery of this funding is also supported by NRCan staff responsible for leading consultations related to the Projects.

Since 1997, NRCan has contributed to the Youth Employment and Skills Strategy (YESS) through the Science and Technology Internship Program (STIP – Green Jobs), which supports youth between the ages of 15 and 30 to develop the skills and gain the practical experience they need to join the natural resources sector workforce, including Energy, Forestry, Mining and Earth Sciences sectors.

Using a further distribution of funds model, the Program supports youth placements through non-repayable contribution agreements. The initial recipient organizations take responsibility for delivering the funding to employers.

The Science and Technology Internship Program has evolved over time to support the various government priorities as it relates to skills and employment, equity, diversity, inclusion, and accessibility, and investing in the green economy. This program also supports the Minister’s commitment to assist in the development and promotion of Canadian scientific and technological capabilities, and to address labour shortages in STEM (science, technology, engineering, math) fields.

In 2022-23, NRCan’s Science & Technology Internship Program-Green Jobs (STIP) invested $12.6 million and created 594 green jobs and training opportunities for youth ages 15 to 30 in the natural resource sectors, exceeding the target of 480. Internships and training opportunities took place in all provinces and territories.

Preliminary results for 2022-23, based on data received at time of reporting are:

• 74% of youth employed/self-employed
• 12% of youth who returned to school
• 79% participation by employment equity seeking groups (i.e., women, Indigenous Peoples, visible minorities, and persons living with disabilities)
• 34% participation of Indigenous youth
• 28% participation of youth who live in northern, rural, and remote communities
• 8% participation of youth living with disabilities
• 78% of placements in clean tech sector
• Over 51% of hiring organizations were small and medium-sized enterprises

No evaluation in 2022-23.

Horizontal Evaluation of Youth Employment and Skills Strategy, led by ESDC, is planned for completion by March 2025.

Initial Recipients (Delivery organizations):

• Call for Proposals November 2022-January 2023
• Regular check-ins with delivery organizations

Ultimate Recipients (Hiring organizations):

• Website updates
• Video testimonials
• Targeted emails

Youth:

• Video testimonials
• Post-placement survey completed by each youth to gauge the skills acquisition and overall experiences.

In support of Canada’s commitment for greater electrification of transportation, the program’s main focus is to continue to support the deployment of charging infrastructure where Canadians live, work and play (e.g. including but not limited to public places, on-street, at workplaces, and in multi-unit residential buildings), including a focus on underserved areas.

The program pays up to 50% of total project costs incurred during the Eligible Expenditure Period, up to predetermined maximum amounts per type of EV chargers. The maximum funding for Indigenous businesses and communities is up to 75% of total project costs incurred during the Eligible Expenditure Period up to predetermined maximum amounts per type of EV chargers. The Program has conditionally repayable CAs that are both repayable and non-repayable, depending on the project type, size, and proponent.

With support from Canada Infrastructure Bank initiatives, the program will help the Government of Canada in meeting its incremental target of adding 50,000 chargers to Canada’s network.

No evaluation in 2022-23.

Evaluation of Zero Emissions Vehicle Infrastructure is planned for completion by March 2024.

The project selection criteria for this initiative is informed by ongoing consultations with provinces and territories, as well as experience gained through the delivery of other EV and alternative fuel infrastructure programming.

The program engaged potential applicants through a comprehensive communications plan, including social media, and email – levering an existing network of over 1000 stakeholders who have participated in past RFPs, as well as those involved in clean technology and transportation, and industry associations who have expressed interest.

A dedicated information sessions focused on growing interest and capacity in Indigenous businesses and communities.

All provincial/territorial (P/T) governments are engaged bilaterally to better understand their own programming plans. PT governments are also consulted on each project selected for funding in their jurisdiction.

The Program also works closely with the Federation of Canadian Municipalities to engage municipal governments.