Details of transfer payment programs

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, cumulative effects and economic opportunities.

This transfer payment program does not have any repayable contributions.

During 2020-21, Natural Resources Canada (NRCan) established 102 new Contribution Agreements (CAs) with Indigenous groups for the below initiatives:

• The Terrestrial Studies Initiative (TSI), 19 CAs during 2020-21, for a total of 56.
   
• The Terrestrial Cumulative Effects Initiative (TCEI) Capacity Funding, 39 CAs during 2020-21 for a total of 57.
   
• Aquatic Habitat Restoration Fund (AHRF) Capacity Funding, 40 CAs during 2020-21.
   
• Phase IV Participant Funding, 4 CAs during 2020-21 for a total of 12.

Through these CAs, Indigenous groups accessed 85% of allocated funds in 2020-21.

No evaluations in 2020-21.

Evaluation of Trans Mountain Expansion Phase IV Partnership Office planned for completion in December 2021.

NRCan worked horizontally with partner departments to engage eligible Indigenous Groups around the accommodation measures it delivers. Engagement takes place through email distribution lists, website information, bilateral meetings, and virtual engagement activities such as workshops.

NRCan engaged recipients regularly via email and phone to ensure compliance with the requirements of the contribution agreements and to support access to accommodation measure funding in a timely manner. NRCan frequently intakes feedback from Indigenous groups related to engagement and modifies its engagement strategies to meet emerging needs.

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

This transfer payment program does not have any repayable contributions.

Offshore royalties and transfers were included in the scope of the annual cycle of the Continuous Audit of Offshore Revenues and Transfers, completed in September 2020. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on selected processes. The Continuous Audit covering March 2019 to March 2020 found that all 16 of the key controls examined were effective.

Next cycle of Continuous Audit of Offshore Revenues and Transfers is planned for completion in September 2021.

The program will reduce reliance on diesel and fossil fuels in 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 may be repayable or non-repayable based on program stream.

In 2020-21, NRCan continued to advance the government’s commitment to reduce reliance on diesel and other fossil fuels for heat and power in Canada’s rural and remote communities by supporting community-led renewable energy projects. After two rounds of intake, 93 renewable electricity, bioheat and capacity building projects are being supported as of March 31, 2021. These projects will install 16.3 megawatts of renewable electricity and 7.85 megawatts (thermal equivalent) of bioheating capacity. In addition, 34 energy literacy projects have been launched to date.

New projects completed in 2020-21 include:

• Bingwi Neyaashi Anishinaabek First Nation in Northern Ontario replaced the community’s sawmill diesel heat source with a biomass system, and installed biomass-compatible heating system in three new housing units in preparation for a future biomass district heating network in the community. The program provided $1,051,000 towards this project, which demonstrates the economic development benefits and cost-effectiveness of biomass heating for a First Nation.
• A 2.2 MW solar array and a 1.5 MWh battery deployed in Fort Chipewyan, Alberta. The project is owned by Three Nations Energy, Limited Partnership, formed by three neighbouring Indigenous groups in Fort Chipewyan: the Athabasca Chipewyan First Nation, Mikisew Cree First Nation, and Fort Chipewyan Métis Local 125. The investment will create over 40 jobs during construction and complements an existing 400 KW installation, making it the largest off-grid solar project in Canada. The project’s combined solar and battery energy storage system will displace 650,000 litres of diesel fuel per year, reducing GHG emissions by 1,743 tonnes annually. The program provided $4.5 million towards this project.
• The program provided $2 million to Ontario Power Generation for the Gull Bay First Nation Diesel Offset Micro Grid Project, which is among the first hybrid renewable/diesel remote micro grids in Canada. The project included designing and installing a micro grid control system, 300kW of solar photovoltaic generation, and a 300kW/550kWh battery energy storage system and integrating this directly into the existing on-site diesel generators. The controller is programmed to dispatch the assets to achieve maximum renewable generation penetration on the grid while meeting community demand and maintaining the required power quality for the community. The project has achieved GHG reductions of 471 tonnes of CO2e per year and offsets approximately 170,000 litres of diesel per year. To date, the project has resulted in 200 hours of training in trades and over 5000 hours of employment for Indigenous peoples.

New project underway in 2020-21:

• $900,000 to install a combined heat and power bioheat system, including battery energy storage, in Kluskus, B.C. This off-grid renewable energy system will lead to GHG reductions of 390 tCO₂e or 40% of the annual emissions of the diesel generators being replaced, as well as creating five new full-time jobs for Lhoosk’uz Dene Nation members, from logging residual trees, fireproofing activities and wood chip supply.

This program was selected as part of the sample for the annual cycle of the Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes.

The Continuous Audit covering November 2018 to July 2019 found that all ten key financial and monitoring controls were in place for the administration of Grants and Contributions, and that they are working as intended.

No evaluations in 2020-21.

Evaluation of Clean Energy for Rural and Remote Communities Program planned for completion in June 2024.

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

The Clean Growth Program will provide $155M over five years to support clean technology research and development (R&D), and demonstration projects in Canada’s energy, mining, and forest sectors.

The program is designed to advance emerging clean technologies towards commercial readiness so that natural resource operations can better reduce their environmental impacts on air, land, and water, while enhancing competitiveness and creating jobs.

To support innovation by small and medium sized enterprises (SMEs), the CGP includes the novel Science and Technology Assistance for Cleantech (STAC) initiative, which provides SMEs funded under the CGP with access to scientific and technical resources at federal research centers to help them overcome a lack of technical expertise and research infrastructure.

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

During 2020-21, Natural Resources Canada (NRCan) focused efforts on signing the final Clean Growth Program (CGP) contribution agreements and helping proponents mitigate delays and risks related to COVID-19. NRCan provided support in the form of payout flexibility and budget re-profiling.

As of the end of 2020-21, all 43 CGP projects had begun. Sixteen projects are being co-funded with NRCan’s Trusted Partners: Emission Reduction Alberta, Alberta Innovates, the Ontario Center of Excellence, the British Columbia Innovation Council and the Natural Gas Innovation Fund.

During 2020-21, 98% of projects had at least one participant other than NRCan or the project proponent, well exceeding the program target of 30%. Across these 42 projects, every $1 of NRCan’s funding was leveraged by an average of $3.90 in contributor funds, well exceeding the leveraging target ratio of 1:1.

Eleven new projects were announced in 2020-21, including: $1.4 million to the University of Manitoba to support the inclusion of hydrokinetic resources in Community Energy Plans; $4.5 million to E2Metrix Inc. to demonstrate processes for treating mine wastewater; and $5 million to Elkem Metal Canada to demonstrate the use of forestry-based renewable energy (biocarbon briquettes) in steel manufacturing.

Three projects were successfully completed in 2020-21, while all others requested an extension into 2021-22 to complete their project activities:

• Eavor Technologies Inc. has demonstrated a full-scale prototype of a novel closed-loop geothermal system near Sylvan Lake, Alberta that builds a path towards commercialization of geothermal energy in Canada. The technology operates emissions-free and allows energy to be harvested from sites previously considered unsuitable for geothermal heat and power. ($2.5 million in CGP funding)
• Jetti Services Canada Inc. has developed a process for extracting copper from low-grade ore which delivers a significant improvement over any existing technology. ($492,500 in CGP funding)
• MEG Energy Corp. has piloted their enhanced Modified VAPour Extraction (eMVAPEX) technology, significantly reducing the amount of steam required to extract bitumen from oil sands and reducing the GHG emission intensity of the extracted bitumen. ($8 million in CGP funding)

Under the Science and Technology Assistance for Cleantech (STAC) initiative, the program also provided supports to clean energy innovators to collaborate with federal research experts. Fourteen CGP projects led by small to medium sized enterprises received funding for in-kind scientific and technical resources at federal research centres to help them overcome a lack of technical expertise and research infrastructure.

No evaluations in 2020-21.

Evaluation of Clean Growth Funding Program planned for completion in December 2021.

As planned during the design of the CGP, the program regularly communicated with its proponents through the new Integro funding portal and the CGP mailbox for all program-wide relevant information. Project-specific communication took place between the proponent and project advisor. The Clean Growth Collaboration Community is another one of the program’s online platforms for public-facing communication with proponents and others interested in the progress of the program. Public announcements and reminders were posted in the community to engage proponents and others in the clean tech community.

COVID-19 support and impact mitigation mechanisms were communicated with the proponents via email, and follow-on communication was provided with one-on-one phone calls between NRCan advisors and proponents.

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

The Clean Technology Challenges form part of the Government of Canada’s Impact Canada Initiative (ICI), designed to help departments accelerate the adoption of innovative funding approaches to deliver meaningful results to Canadians.

The Clean Technology program ($75M over 4 years) stream will address areas such as climate change, clean growth, and the application of new technologies to reduce negative environmental impacts. Five Clean Tech challenges were launched in 2018-19 and a sixth in July 2019.

For each Challenge, a mix of tools (e.g. contribution agreements, grants, micro-grants) will be used, based on technical, market and environmental circumstances, in order to achieve breakthroughs in clean technology and leverage as much innovation activity as possible from a given award level.

Contribution payments made under this program are non-repayable.

In 2020-21, NRCan continued to advance the six challenges launched since 2018-19. The program was extended by one year (until 2021-22) and additional project funding was delivered across the six challenges to help mitigate the impacts of the COVID-19 pandemic (e.g. unanticipated delays and costs).

Women in Cleantech Challenge ($6 million):

Women in Cleantech finalists have entered into numerous strategic partnerships, won multiple high-profile global competitions, and have collectively leveraged over $11 million dollars from a mix of investors, almost double the total value of the Challenge. Five of the six finalists have been advancing their technologies with the support of federal labs. The winner of the $1 million Grand Prize will be announced in 2021-22.

The Sky’s the Limit Challenge ($14 million):

The four finalists announced in May 2019 are on track to complete their projects, each of which explore different technical and business approaches to produce sustainable aviation fuel in Canada with the lowest emissions at the lowest price. Each finalist receives up to $2.15 million in contributions. The winner of the $5 million Grand Prize will be announced in 2021-22.

Canada-UK Power Forward Challenge ($20 million):

The seven finalists announced in June 2019 (three in Canada and four in the UK) are all in the process of developing a pilot-scale demonstration of their innovative smart grid solutions for cleaner, more flexible power grids. They each receive up to $3.15 million in contributions to complete their demonstrations. Through these projects, finalists have been addressing common technical barriers and creating new commercial opportunities. The winner of the $1 million Grand Prize will be announced in 2021-22.

Crush It! Challenge ($10 million):

The six finalists announced in April 2019 have been developing prototype solutions to drive transformative energy efficiency improvements in the crushing and grinding of rocks in the mining industry. Each finalist receives up to $860,000 in contributions. The winner of the $5 million Grand Prize will be announced in 2021-22.

Indigenous Off-Diesel Initiative (IODI) ($20 million):

Fourteen contribution agreements worth up to $500,000 were signed in 2020-21 as IODI Energy Champions transitioned to Phase 2, community energy planning and engagement. One prize grant of $800,000 was given out to the first champion, who has moved into Phase 3, project implementation. Sharing of the initiative’s results is planned for 2022-23.

Charging the Future Challenge ($4.5 million):

The five finalists were announced in July 2020. Each finalist team has received two grants of $350,000 and $420,000 respectively to develop a testable prototype of their innovative battery technology and compete to advance Canada’s best battery technology from the lab to market. The winner of the $1 million Grand Prize will be announced in 2022-23.

No audits in 2020-21.

Joint Audit and Evaluation of Impact Canada Clean Technology Stream planned for completion in June 2021.

No evaluations in 2020-21.

Joint Audit and Evaluation of Impact Canada Clean Technology Stream planned for completion in June 2021.

The six challenges have continued to increase their reach and become further established in their respective areas, leveraging their collaborative partner(s) to engage with stakeholders and advance Challenge goals, hosting and delivering webinars and workshops for finalists, etc. The program adapted its plans to the circumstances of the COVID-19 pandemic, while maintaining its impact. For instance, some of the in-person engagement turned into virtual activities. Further engagement is planned for 2021-22 in the run-up to awarding Grand Prizes.

The Women in Cleantech Challenge finalists took part in a weeklong Canadian Tech Accelerator program organized by Global Affairs Canada. They were featured at MaRS Impact Week in Fall 2020 and participated in their second MaRS Mornings event in September 2020. The finalists participated in workshops focusing on investor pitch coaching, delegating as a leader, negotiation, and other key skills for entrepreneurs.

Power Forward’s collaborative partner, MaRS Discovery District, has continued to engage with Canada’s smart grid community. For instance, MaRS convened a group of stakeholders from across Canada, representing diverse system perspectives, to participate in a virtual workshop series (three sessions in Fall/Winter 2020-21). The workshops were designed to foster collaboration and extract new ideas to accelerate the adoption of smart grid technologies.  NRCan and the UK Department for Business, Energy & Industrial Strategy (BEIS) also hosted an online webinar for Power Forward finalists in January 2021 to provide better information and address questions on the Challenge’s final evaluation process. All Power Forward finalists and their partners attended the webinar.

Crush It!’s collaborative partner, the Centre for Excellence in Mining Innovation, launched the Canadian Mineral Processing Ecosystem Innovation Portal in March 2021 to support the community of innovators and end-users, and to help mobilize innovators to create a cleaner, more productive, and globally competitive Canadian mineral processing industry.

The Indigenous Off-Diesel Initiative (IODI) delivered thirteen webinars for 14 Energy Champions along with collaborative partners, Indigenous Clean Energy (ICE) and Pembina, to ensure consistent engagement and learning. A total of fourteen IODI Champions have successfully moved to Phase 2 of the program. IODI Energy Champions participated in the ICE E-Gathering (January 19-21, 2021) and other networking and training sessions.

The Charging the Future Challenge’s five collaborator organizations amplified the ministerial announcement of the finalists in order to enhance the visibility of those finalists and of the Challenge itself. Further engagement with these organizations is anticipated leading up to the announcement of the winner.

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.

During 2020-21, Natural Resources Canada (NRCan) 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.

$10.13 million in federal funding is available to be contributed in 2020-21 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 will be re-profiled to future years.

No evaluations in 2020-21.

No evaluations planned. Further evaluation work will be considered during the annual multi-year planning exercise, in accordance with program development and the Treasury Board Policy on Results.

NRCan reviewed Saskatchewan’s annual reports for the Project and met with Saskatchewan once during 2020-21 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. The activities related to Saskatchewan’s legal actions are not planned activities outlined in the Departmental Plan.

While restrictions due to COVID-19 response measures caused delays in some projects and forced others to shift on-line training and interaction with stakeholders, more than 20 projects funded by the Climate Change Adaptation Program delivered results in 2020-21.

These included:

• Two projects that produced new guidance for the mining and electricity sectors in Canada. These documents will support integration of climate change adaptation in plans and operations of companies in these sectors.
• Adapting to the Future Storm and Ice Regime in the Great Lakes, a project that undertook a comprehensive risk assessment for a section of Lake Erie shoreline and co-developed adaptation options that are currently being integrated in the environmental assessment process to select the preferred approach. The project findings are also being used by the Province of Ontario to update their technical guidance on coastal hazard mapping.
• Accelerated delivery of the Credit Valley Conservation Authority’s training on low impact development to manage storm-water and flooding. The project hosted 24 training events that were attended by 1,081 participants from across Ontario. In addition, the program created “how-to” YouTube videos to support implementation.

The Building Regional Adaptation Capacity and Expertise (BRACE) Program supported regional projects to build the skills and expertise of communities, industry, and practitioners to apply climate change considerations in their operations and practice. Investments in training and knowledge exchange activities through the BRACE program aim to increase the capacity of organizations, professionals, and communities to undertake climate change adaptation action.

In 2020-21, BRACE supported 15 projects including the development of the Climate Adaptation Competency Framework by Royal Roads University, detailing the competencies required by those working in adaptation or professionals having to incorporate climate change into their work.

No evaluations in 2020-21.

Evaluation of Climate Change Adaptation is planned for completion in December 2021.

The focus of consultation with recipients in 2020-21 was related to the impacts of COVID-19 response measures on the projects. Many projects were designed for in-person engagement of stakeholders and trainees. The program worked with recipients to amend project agreements to account for delays and changes in the approach to project delivery.

The program also maintained on-going engagement of its broader stakeholder community though the Adaptation Platform, particularly its plenary and working groups.

To encourage the production of 14.3 terrawatt hours of electricity from renewable energy sources such as wind, hydro, biomass, solar photovoltaics, and marine energy.

This transfer payment program has repayable contributions.

The program is not intended to subsidize projects that will generate undue profits or that may already be economical. For this reason, every contribution agreement will include a repayable contribution clause that will apply if the project receives, at some point within the 10-year payment period, substantially higher energy revenues for its production in excess of a standardized price.

Lower carbon transportation is both an essential component of longer-term decarbonisation of the economy as well as a short-term means for reducing emissions.

As outlined in the Pan Canadian Framework for Clean Growth and Climate Change, coordinated and targeted green infrastructure investments to support electrification and fuel switching in the light-and heavy-duty vehicle sectors are two pillars of the framework to lower emissions from the transportation sector. These investments are required to eliminate barriers that currently impede the adoption of clean transportation choices and to spur the wide-scale deployment of low-carbon vehicles, which will enable further greenhouse gas emission reductions across the transportation sector.

This investment will support:

• The establishment of a coast-to-coast network of fast-chargers for electric vehicles (EV), natural gas refuelling stations along key freight corridors, and hydrogen refuelling in metropolitan areas, where vehicles are most likely to be deployed. These investments address consumer and commercial fleets’ concerns regarding the low availability of recharging/refuelling infrastructure and investor concerns regarding the financial risk to investment. This will help to accelerate market deployment of electric and alternative fuel vehicles and fuels; and,
• The development of binational codes and standards for low-carbon vehicles and refuelling infrastructure, meeting commitments made through the Regulatory Cooperation Council.

The Electric Vehicle and Alternative Fuel Infrastructure Deployment program, along with investments made for the ZEV Infrastructure program, aims to address barriers to uptake of low-carbon vehicles in Canada. While this program focuses on a coast-to-coast network of zero-emission vehicle recharging and refuelling stations, the ZEV Infrastructure program will help meet growing charging demand by increasing the availability of localized charging opportunities where Canadians live, work and play.

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

No evaluations in 2020-21.

No evaluations planned. Further evaluation work will be considered during the annual multi-year planning exercise, in accordance with program development and the Treasury Board Policy on Results.

The program launched a Request for Proposal in March 2020. As a result there were 23 projects recommended for funding (14 contribution agreements signed and 9 under negotiation) covering projects in 9 jurisdictions.

There have been a total of 8 public announcements of funding.

Investments include largest EV networks in Canada such as Circuit Électrique (Hydro Québec) and Newfoundland and Labrador Hydro.

• Natural resources 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 next-generation and innovative electric vehicle (EV) charging as well as hydrogen (H2) refuelling infrastructure in Canada.

Key outcomes from the program are expected to address potential technical and non-technical barriers for the deployment of charging and refuelling infrastructure for EVs. 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 H2 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

To date, Phases 1 and 2 of the Electric Vehicle Infrastructure Demonstration (EVID) program have supported 29 demonstration projects aimed at providing innovative solutions that address technical and non-technical barriers for EV charging and hydrogen refuelling technologies. Eight projects have been successfully completed. Two new projects were approved in 2020-21 and three other applicants are currently engaged in due diligence discussions.

The COVID-19 pandemic significantly impacted many projects due to limited access to sites, illness in the workforce, as well as supply chain disruptions. Based on delays incurred by proponents and applicants, the EVID program sought and obtained a reprofile of its funds and an extension to the program funding to 2024. Despite this, for projects active in 2020-21, Natural Resources Canada (NRCan) funds were leveraged by contributor funds at a ratio of 1:1 (contributors: NRCan), achieving the program’s target.

Projects have supported a number of applications including: load management and novel business models at multi-unit residential buildings and workplaces; curbside charging; charging infrastructure for autonomous vehicles; bi-directional charging with energy storage; fast-charging in the North; development of infrastructure standards for electric bus overhead charging; and repurposing used batteries for fast-charging.

Examples of projects include the following new announcements in 2020-21:

• $1.7 million to research, develop, adapt and update codes and standards for electric and alternative fuel vehicles and infrastructure. The requirements for Canadian and U.S. Codes and Standards will be aligned where possible, primarily through the publication of binational standards that can be referenced in both countries.
• $1.1 million to demonstrate and assess the benefits of EV integration into the Nova Scotia electrical grid, including economic viability, benefits to the grid, and effects on EV user experience, using a utility-managed centralized control system.
• $1.0 million to address barriers to EV adoption by demonstrating a blockchain-based EV charging management platform that will significantly reduce the cost of EV charging transactions and enhance grid efficiency.

No evaluations in 2020-21.

Evaluation of Electric Vehicles Infrastructure Demonstration Program planned for completion in March 2022.

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.

Under the Green Infrastructure (GI) stream of the Investing in Canada Plan, which supports the Pan Canadian Framework on Clean Growth and Climate Change, Natural Resources Canada (NRCan) is investing in the demonstration and deployment of clean energy infrastructure through several programs: Smart Grids, Energy Efficient Buildings, Emerging Renewable Power, 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. In December 2020, the Emerging Renewable Power Program had its first project commissioned, a 23 MW bifacial solar project in Alberta. In March 2021, a third geothermal project was announced – a 100 % owned Indigenous led 6 MW project in BC which provides jobs to oils and gas workers and promotes collaboration and Indigenous leadership while reducing GHGs from local electricity generation.

The Emerging Renewable Power Program announced two projects this year. $28.5 million was announced to Sustainable Marine in Nova Scotia for Canada’s first tidal energy array in November of 2020. In March of 2021 the Minister announced $40.5 million for the Clarke Lake Geothermal Development Project

No evaluations in 2020-21.

Evaluation of Smart Grids and Emerging Renewables planned for completion in September 2023.

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

• Energy Efficiency
• Energy Innovation

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.

Contribution payments made under this program are non-repayable

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

Natural Resources Canada (NRCan) is investing $48.3 million to fund projects that will accelerate the development and adoption of net-zero-energy-ready codes and technologies to promote highly energy-efficient building design and construction practices, provide cost-effective building solutions, and validate their applications with real-world demonstrations. Twelve projects have been supported to date. A third call for proposals was launched in November 2020, focusing on deep retrofits and support to provincial, territorial, and municipal-led initiatives that will accelerate development and adoption of local building codes; sixteen proposals were received under this call.

In 2020-21, the program announced $2.4 million in funding to the Canadian Home Builders’ Association to validate the use of panelized/modular construction and integrated mechanical system technologies, design and practices on Net Zero Energy Ready and Net Zero Energy Multi-Unit Residential Buildings by conducting up to six demonstration projects (over 100 residential units) across four provinces (Alberta, British Columbia, Ontario and Saskatchewan), covering all major Canadian climate zones.

Other Projects or activities funded under the Energy Efficiency Program:

• Administering and ensuring compliance with energy efficiency standards for products under Canada’s Energy Efficiency Regulations, undertaking studies to advance new regulations, and working with stakeholders and provinces and territories to socialize the Market Transformation Roadmap and plan next steps to support transition to energy efficient, low-carbon space and water heating technologies.
• Supporting improvement in industrial energy performance and recognized verifiable energy achievements through the ENERGY STAR for Industry program in Canada.
• Supporting capital investment projects to improve energy-use and encourage the transition to lower carbon fuels in Canadian automotive manufacturing plants.
• Supporting implementation of energy management solutions, such as the ISO 50001 Energy Management System Standard in industrial facilities and in the commercial and institutional buildings sector, including Indigenous communities and government buildings.
• Collaborating with the US Environmental Protection Agency to continue Integrating Canadian content into the ENERGY STAR Portfolio Manager benchmarking tool, and support ENERGY STAR certification in industrial facilities and commercial and institutional buildings.
• Developing building energy codes for new and existing buildings; and
• Co-funding of provincial/territorial demonstration programs, providing necessary evidence on the cost effectiveness of adopting more stringent building codes; as well as targeted industry calls to drive innovation and enable the construction of highly energy efficient buildings across Canada.

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 scope of calls for proposals. In 2020-21, the program focused its engagement on provinces that were underrepresented in the first two rounds of funding, including Nova Scotia, New Brunswick and Newfoundland and Labrador. The program also strengthened its engagement with other key policy organizations such as Efficiency Canada.

The program also continued to support the Local Energy Efficiency Partnerships (LEEP) initiative, which aims to foster the construction industry’s capacity and confidence in net-zero-energy ready (NZER) technologies. Results in 2020 included the following:

• 22 LEEP workshops and forums delivered both in person across Canada in four provinces (British Columbia, New Brunswick, Newfoundland and Labrador and Nova Scotia) and virtually through national workshops.
• Almost 900 home building industry leaders attended LEEP events (equates to approximately $700K of participant time), providing over 80 hours of content including 66 technical presentations.
• LEEP field trial of British Columbia’s Step Code level 4 and 5 housing, the first such coordinated provincial trial in Canada.
• Development and trial, with positive results, of a cost-benefit tool for NZER housing, a Draft Planning and Decision Guide for Solar PV Systems, and four Guides to Net Zero Energy Ready Wall Systems.
• New agreement with BC Housing signed to deliver three needs assessment workshops on retrofit housing in the fall of 2020, leading to a series of eight LEEP for Renovation forums in the winter of 2021 and into 2022.
• Agreement with the Canadian Gas Association signed to deliver an app for the LEEP “Master Planning and Decision Tool for Natural Gas Mechanical Systems”, as well as the delivery of 16 LEEP workshops on mechanical system design and sizing to be delivered through the supply chain network in 2021.

Other Projects or activities funded under the Energy Efficiency Program:

NRCan participated in a number of initiatives to engage with stakeholders including industry, associations, provinces and territories, as well as research and policy groups. This includes:

• Extensive engagement with industry, associations, provinces and territories, and research and policy groups to help inform the scope of calls for proposals.
• Requests for project proposals were solicited from a broad range of eligible recipients including industry, academia and consortia via open, advertised proposal calls; non-advertised direct requests.
• Hosted workshops and webinars, as well as knowledge and capacity-building activities to engage recipients.

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

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

The EIP includes, among other initiatives, the following recent calls:

• Breakthrough Energy Solutions Canada (BESC), launched in 2019 – a joint initiative of NRCan; Breakthrough Energy, led by Bill Gates and influential global investors; and the Business Development Bank of Canada. BESC will provide up to $40 million to help Canadian firms develop and commercialize clean energy technologies with potential for significant greenhouse gas emissions reductions (0.5GT/year globally).
• The Canadian Emissions Reduction Innovation Network (CERIN), a collaboration between NRCan and Alberta Innovates to support the innovation needed to bring clean tech to market in order to help the oil and gas industry meet emission regulations in a cost-effective way, notably by funding technology testing infrastructure at key research and industry facilities in Alberta and nationally.

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

In 2020-21, the EIP supported 34 external research, development and demonstration (RD&D) projects aimed at reducing GHG emissions while increasing competitiveness, affordability and reliability in Canada’s energy sector. The projects fostered innovations in key areas such as renewable energy; smart grids; energy-efficient buildings; carbon capture, utilization and storage; and the cleaner production of oil and gas. This included 10 projects funded under BESC and two projects funded under CERIN.

Across these 34 projects, the average number of contributors other than Natural Resources Canada (NRCan) and the project proponent was 2.9 per project, well exceeding the target of at least 1. In addition, every $1 of NRCan’s funding was leveraged by an average of $1.50 in contributor funds, well exceeding the leveraging target ratio of 1:1.

Two new EIP projects were announced in 2020-21, both under the CERIN initiative (co-delivered with Alberta Innovates), including $2.0 million to develop pathways to generate biojet from a range of lipid feedstocks, including waste materials from the restaurant and rendering industries.

In addition, ten EIP projects were successfully completed in 2020-21. For example:

• Sifton’s Helio project has built Canada’s first mixed-use net-zero energy high-rise, as part of the new net-zero West5 community development. The building was designed to be a repeatable example. Its 114 units are now fully occupied, it is operating at near net-zero energy and it is generating 65% less GHGs than a comparable traditional building. ($3.9 million in EIP funding)
• The University of British Columbia’s Autonomous Discovery Accelerator (Ada) for Materials Innovation is a state-of-the-art, artificially intelligent robotic platform for clean energy materials discovery and development. The Ada team has successfully designed and built six Ada platforms capable of specialized workflows, demonstrating that these self-driving labs can be built and adapted to perform a wide variety of laboratory tasks and work with a variety of materials, including those used in solar cells and CO₂ utilization technologies. ($8.0 million in EIP funding)

No evaluations in 2020-21.

Evaluation of Energy Innovation Program and Program of Energy Research and Development planned for completion in March 2023.

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 $39.8M over four 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 wood buildings, timber bridges, and low-rise non-residential wood buildings;
• Replication of demonstrated innovative non-traditional wood-based buildings and timber bridges; and,
• 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.

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.

The GCWood program had great success in 2020-21, seeing a number of demonstration projects get well underway, and the remaining shortlisted projects signed. 16 demonstration projects have funding agreements in place, providing over $33 million in support for industry toward over $1.3B in construction activity. Five demonstration projects were publicly announced in 2020-21.

GCWood provided support to the code change process in Canada by funding key Research and Development (R&D) activities at the National Research Council (NRC) to address research gaps identified by the Task Groups and Working Groups of the Canadian Commission on Building and Fire Codes (CCBFC). These activities helped support the inclusion of mass timber buildings up to 12-stories in height in the upcoming 2020 National Building Code of Canada (NBCC) as well as laid the groundwork for the inclusion of performance-based codes in the 2025 NBCC.

GCWood supported 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.

To showcase innovative Canadian engineered wood products and wood design, and engineering and construction techniques arising from these projects, several investments through the Green Construction through Wood program were publically announced, including investing:

• $4 million to the Canadian Nuclear Laboratories toward the construction of a series of mass timber buildings. This project is a first of its kind in Canada, introducing innovative wood designs and technologies, both structurally and aesthetically, for a nuclear campus;
• $1.5 million in support for the Vancouver School Board to build two elementary schools using innovative mass timber systems which will be some of the first schools to meet the province’s new seismic upgrade requirements; and
• $800,000 for KF Aerospace to build a first of its kind mass timber hangar that will also house an aviation museum and a conference centre. The 2-storey building will use an innovative floor and tall wall systems to accommodate the large spacing between columns.

No evaluations in 2020-21.

Evaluation of Green Construction through Wood is planned for completion in December 2022.

Program applicants were supported through the establishment of a dedicated program website – nrcan.gc.ca/gcwood, which includes access to program guides, eligibility requirements, project announcements, and program administration details. The program also had a dedicated in-box to respond to inquiries (nrcan.gcwood-cvbois.rncan@canada.ca).

GCWood issued a public Call for Expressions of Interest for each aspect of the demonstration component (tall wood, low-rise non-residential, and bridges) which is promoted through the Natural Resources Canada 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 were further engaged through regular contact with program administrators to monitor project progress and report against set objectives.

To make funding available to Indigenous groups potentially impacted by the Trans Mountain Expansion Pipeline Project (TMX) and the Line 3 Replacement Project (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 other environmental concerns related to the broader pipeline corridor over the full lifecycle of development.

This transfer payment program has non-repayable contributions.

In 2020-21, the Indigenous Advisory and Monitoring Committees (IAMCs) for the Trans Mountain Expansion (TMX) and Line 3 Replacement projects delivered approximately $13.5M in funding through 149 contribution agreements.

The IAMC for TMX provided approximately $9.8M in contribution funding in 2020-21 to:

• support Indigenous participation on the IAMC;
• provide capacity funding to Indigenous communities in the priority areas of stewardship, protection and meaningful participation;
• enhance community-based capacity for emergency response capabilities, using an all hazards approach
• support the Indigenous Caucus to provide advice to the Canada Energy Regulator; and,
• deliver the IAMC-TMX Indigenous Monitoring Program, that to date has trained 40 Indigenous monitors who have spent 64 days out in-the field participating in 59 regulatory activities.

The IAMC for Line 3 provided approximately $1.1M in contribution funding in 2020-21 to:

• support Indigenous participation on the IAMC;
• implement the IAMC Indigenous Monitoring Program, 2 inspections and 2 Emergency Table Top Exercises, with a focus on transitioning from construction to operations phase of the Project and further developing programs including training and capacity building with Canada Energy Regulator and Enbridge; and,
• engage expertise to conduct monitoring training initiatives and support Emergency Management capacity development, and to set out Wise Practices gained by the Nations throughout the Project to date.

No evaluations in 2020-21.

Horizontal evaluation of Indigenous Advisory and Monitoring Committees planned for completion in December 2021 (NRCan lead).

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

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

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

The Program will fund innovative projects that are using transformative technologies at the pilot and commercial scales that direct wood fibre and by-products from wood processing into higher value usages which:

• Increase the total revenues available from a log;
• Diversify product lines for the forest industry, stabilizing economic performance; and,
• Produce renewable energy and other products that are beneficial to the environment.

By providing funding to Canadian forest firms for capital investments in bioenergy and bio-product industrial processes to advance these technologies towards full, commercial-scale implementation, this Program will broaden and build upon previous investments in forest sector transformation.

This transfer payment program does not have any repayable contributions.

In fiscal year 2020-21, the program invested $20.6M in 19 projects to support the competitiveness of Canada’s forest sector.

Examples of IFIT projects announced in 2020-21 include the following:

• GreenNano Technologies Inc. received $1.2M to scale up production of a new lightweight wood-fibre–based composite material to create automotive parts using an innovative process combining wood pulp with polymers, which creates a special strong and lightweight thermoplastic with more uniform and improved properties compared to other products. This project demonstrates IFIT’s support in helping advance the adoption and implementation of innovative technologies and processes to produce new forest products.
• Pulp Moulded Products with support from Kruger Inc. received $300,000 to create a prototype low-cost, non-surgical, disposable mask for civilians and industrial workers. The masks are made of harvested wood fibre creating an affordable and environmentally friendly product for consumers. The mask production and supply chain are also 100 percent Canadian.

No evaluations in 2020-21.

Evaluation of Forest Sector Competitiveness program planned for completion in March 2025.

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.

Offshore royalties and transfers were included in the scope of the annual cycle of the Continuous Audit of Offshore Revenues and Transfers, completed in September 2020. As part of Natural Resources Canada’s (NRCan) continuous audit framework, the Audit and Evaluation Branch conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The Continuous Audit covering March 2019 to March 2020 found that all 16 of the key controls examined were effective.

Next cycle of Continuous Audit of Offshore Revenues and Transfers is planned for completion in September 2021.

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

• Energy Innovation Program
• Electricity Resources

The Smart Grid program will invest $100M over four years (2018-19 to 2021-22)^{Footnote 1} to support the deployment of commercial technology to build integrated systems and the demonstration of promising near-commercial technologies for innovative smart grid systems 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: Repayable, if the demonstration leads to a profit within five years following the end of the project. The requirements for reporting profits are detailed in the contribution agreement, along with the process for repayment.
• Deployment: 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.

Through the $100 million Green Infrastructure: Smart Grid Program, Natural Resources Canada (NRCan) is promoting 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. While the program was originally slated to end in fiscal year 2021-22, program funds were reprofiled to extend timelines for certain projects into fiscal year 2022-23 in order to compensate for impacts of COVID-19, e.g. supply chain disruptions, reduced work crews due to social distancing, difficulties accessing worksites due to lockdowns, and withdrawal of some partner funding.

While the program is funding 22 projects, 28 contribution agreements have been signed (projects that have a demonstration and deployment component are considered hybrids and require two contribution agreements). Twenty-one projects have now been announced. As of March 31, 2021, the program had committed $45.9 million to ten deployment projects, $11.2 million to six demonstrations and $29.7 million ($14.5 million for deployment, 15.3 million for demonstration) to six hybrid projects. For demonstration projects active in 2020-21, NRCan funds were leveraged by contributor funds at a ratio of 1.8:1 (contributors: NRCan), surpassing the program’s target of 1:1. For deployment projects, the leveraging ratio was 3.7:1, surpassing the target of 3:1.

Five new projects were announced in 2020-21, including:

• London Hydro’s West 5 project: This hybrid project received $5.1 million in funding to enable the development of the West 5 Net-Zero Energy (NZE) community and microgrid in London, Ontario, creating a showcase for sustainable community designs which incur minimal negative impacts on the environment and providing an example of Canadian leadership in the field of integrated smart energy system technologies. 
• The FortisAlberta Waterton Energy Storage Project: This deployment project received $495,000 in NRCan funding to support the installation of a Battery Energy Storage System and solar renewable generation with advanced distribution control systems. This project will help to address reliability issues faced by rural customers and establish an Alberta-based benchmark to address distribution deficiencies using non-wire alternatives.

This program was selected as part of the sample for the annual cycle of the Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes.

The Continuous Audit covering November 2018 to July 2019 found that all ten key financial and monitoring controls were in place for the administration of G&C, and that they are working as intended.

No evaluations in 2020-21.

Evaluation of Smart Grid Program and Emerging Renewables Program planned for completion in September 2023

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

The Phase II 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 in order to mitigate risks to forest resources or other related values.

The Program is based on a 60:40 federal to provincial and industry cost-sharing requirement. There are no repayable contributions.

Performance indicator: Percentage of forest areas eligible for treatment where spruce budworm population remains below outbreak threshold

2020-21 results:

• 100% of eligible forest areas in New Brunswick were successfully treated (32,056 ha)
• 90% of eligible forest areas in Newfoundland and Labrador were successfully treated (54,036 ha); the remaining 10% was not treated due to logistical issues, including weather.
• Spruce budworm populations remain below outbreak levels throughout Atlantic Canada

Expected results: Access to scientific knowledge, surveillance solutions, and response solutions pertaining to spruce budworm outbreaks and the Early Intervention Strategy

Performance indicator: Number of advisory committees and boards involving the sharing of knowledge and information on forest pests and related risks to governments, industry, and non-governmental organizations

2020-21 results:

Knowledge was shared with the Healthy Forest Partnership research consortium and general public through the Healthy Forest Partnership webpage, 11 scientific journal articles, 9 stakeholder presentations, and 14 media articles.

No audits in 2020-21.

Joint Audit and Evaluation of Spruce Budworm Early Intervention Strategy – Phase 2 planned for completion in December 2021.

No evaluations in 2020-21.

Joint Audit and Evaluation of Spruce Budworm Early Intervention Strategy – Phase 2 planned for completion in December 2021.

In support of Canada’s commitment for greater electrification of transportation, this program addresses key barriers (e.g. access to chargers and range anxiety) by supporting the deployment of the necessary infrastructure. These investments were made to support Canada’s zero emission vehicle sales targets.

Federal investments in the Electric Vehicle and Alternative Fuel Infrastructure Deployment initiative are supporting the establishment of a coast-to-coast network of fast-chargers (Level 3) along the national highway systems, natural gas refuelling stations along key freight corridors and hydrogen refuelling stations in major metropolitan areas. Building upon this, the ZEV Infrastructure program’s main focus is to target market segments not previously addressed through federal investments giving Canadians access to EV charging infrastructure where they live, work and play.

The ZEV Infrastructure Program supports the deployment of new zero-emission vehicle recharging (e.g. Level 2) and refuelling stations in public places, on-street, multi-unit residential buildings, workplace, as well as strategic infrastructure projects for mass transit, urban delivery, and fleet applications.

The initiative uses repayable contributions (with the Government of Canada providing up to 50% of total project costs) to decrease the risk of investing in EV and alternative fuel infrastructure. These projects will be monitored for ability to repay over 10 years, following project completion.

No evaluations in 2020-21.

Evaluation of Lower Carbon Transportation (including Zero Emissions Vehicle Infrastructure) planned for completion in March 2025.

The $750 million Emissions Reduction (ERF) Fund 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.

The ERF is delivering near-term results to support Canada’s climate commitments while improving the emission intensity and competitiveness of the oil and gas sector.

The ERF is a new program that was launched in fall 2020, with approved projects still in early stages of implementation.

Onshore deployment program ($675 million)

The onshore program is supporting projects that will reduce emissions incremental to what will be achieved through methane regulations. The first application intake period (closed November 30, 2020) brought forward 40 projects being funded across Western Canada with projected emission reductions of 3.1 Mt CO2e; over 97% of these reductions are incremental to methane regulations for those sources. The program will achieve reductions at a very low cost per tonne; 99.5% of emissions captured from intake 1 projects range between $0-$20 per tonne over a 10-year amortization period. The program is currently negotiating agreements from the second application intake period and results will be made available upon completion. A third intake period opened on August 6, 2021, and will close on January 7, 2022.

The onshore program is also achieving outcomes that support broader policy objectives, beyond methane emission reductions. These include:

• supporting methane and VOC regulations;
• reducing lifecycle GHG intensity of LNG and future hydrogen production, which are both heavily dependent on natural gas as a feedstock;
• supporting improvements to emission inventories and baseline emission factors for increased accuracy of emission reporting; and
• demonstrating ESG and helping to differentiate Canada’s energy products to attract investment and enhance competitiveness.

ERF funding sunsets on March 31, 2023.

Offshore deployment program ($42 million)

The offshore deployment program has received several proposals to date, with initial project selections anticipated in fall 2021. The program will accept new applications on an on-going basis until all program funding is allocated or the March 31, 2023 program end date is reached.

Offshore research, development and demonstration (RD&D) program ($33 million)

A successful due diligence assessment of the initial recipient, Petroleum Research Newfoundland and Labrador (PRNL), was completed on the proposed workplan for administering the RD&D stream. Subsequently, an initial initial-ultimate recipient contribution agreement was signed with PRNL, which included $25.3 million for ultimate recipient projects. PRNL issued a Call for Proposals from December 15, 2020 to January 29, 2021, and received 65 proposal submissions, which represented a program oversubscription of over $40 million. PRNL’s Technical Advisory Committees completed an independent review of the proposals submitted and selected 16 projects for funding.

No evaluations in 2020-21.

Evaluation of Emissions Reduction Fund planned for completion in March 2026.

Onshore deployment program

NRCan consulted with the provincial governments of British Columbia, Alberta, Saskatchewan and Manitoba, and Environment and Climate Change Canada to inform the onshore program design, and ensure it aligns with and complements provincial and federal methane reduction efforts. NRCan staff held a kick-off webinar in October 2020 when the program was launched, which was attended by over 300 industry and other stakeholders.

NRCan leveraged an extensive network within the oil and gas sector, including industry associations (Explorers and Producers Association of Canada (EPAC), Canadian Association of Petroleum Producers (CAPP), Canadian Society for Unconventional Resources (CSUR)) to improve program awareness and uptake, through a series of webinars and meetings. A third application intake period was launched on August 6, 2021.

NRCan maintained an ongoing dialogue with the provinces, industry associations and oil and gas companies to garner feedback on programming, and staff engaged directly with individual applicants and funding recipients via calls and video conferences to address program specific questions and to negotiate contribution agreements with successful applicants. NRCan staff also discussed directly with unsuccessful applicants the reasons for which their proposed projects were out of scope, and where applicable, invited them to reapply to future program intakes.

Offshore deployment program

NRCan engaged in discussions with Newfoundland and Labrador’s provincial government and an extensive network of industry contacts before launching the offshore deployment program. The program team also delivered a web presentation to the largest offshore oil and gas industry association in Canada in an effort to reach a wider audience of potential applicants. Interested parties were encouraged to email the program for clarification on eligibility requirements and to obtain additional information. Program staff and applicants communicated regularly via email, video chat and phone calls to support the project review process, including technical and financial due diligence.

Offshore RD&D component

PRNL engaged in discussions with their network of industry contacts before launching the RD&D Call for Proposals to establish a baseline for existing innovation opportunities in the offshore oil and gas industry. They engaged with applicants during the Call through email and hosted a webinar on program eligibility guidelines. After the technical review, further engagement with recipients included the distribution of letters of award, notifying unsuccessful applicants, and the negotiation of ultimate recipient contribution agreements.

The objective of this program is to deliver $12 million over two years to support Indigenous participation in energy infrastructure projects in British Columbia and Alberta.

This Transfer Payment Program does not include any repayable contributions.

No evaluations in 2020-21.

To be determined. Further evaluation work will be considered during the annual multi-year planning exercise, in accordance with program development and the TB Policy on Results.

An engagement strategy for the announcement, developed in consultation with Natural Resources Canada’s Communications, was successfully implemented. Engagement included a news release with a link to the program website and applicant guide, and other social media activities.

Following feedback from Indigenous communities and organizations (e.g. re: capacity constraints regarding proposal development), the program continued to work with Indigenous applicants to better understand proposal activities, outputs and outcomes, and provide opportunities for applicants to strengthen their proposal subject to funding availability. INRP also scheduled check-ins with recipients to ensure they are receiving the support they need to meet reporting requirements.

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 170 projects in established and emerging international wood markets to promote, educate, inform or facilitate the use of Canadian wood products or wood construction systems.

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

As just one example of success, EMO funding was pivotal in helping Canada Wood China advance wood infill walls for China’s construction industry. After years of research in collaboration with Chinese pre-cast concrete manufacturer Matechstone (MTS), a new hybrid wall was introduced in 2019 called the Prefabricated Energy-saving Cladding (PEC) system. The PEC system is a concrete-wood wall hybrid now successfully employed in two demonstration buildings. The PEC system and its variations will provide opportunities to promote and commercialize the technology on a larger-scale in the future. This system showcases how Canadian wood construction technologies such as wood infill wall can be transferred to China’s construction industry.

Within Canada, technical advisors funded through the program influenced the use of wood in 247 non-traditional and mid-rise construction projects between April 1, 2020 and March 31, 2021, resulting in incremental wood sales of $199.5 million in 13.3 million square feet of construction

No evaluations in 2020-21.

Evaluation of Forest Sector Competitiveness program (including Expanding Market Opportunities) planned for completion in March 2025.

On November 2, 2020, EMO issued its annual call for proposals (CFP) for fiscal year 2021-22 by email and through its website.

EMO launched a new online funding management system (FMS) for proposal submissions and reporting in fiscal year 2019-20. Funding recipients and stakeholders were consulted during the redesign of the FMS and offered a series of training sessions to learn how to use the new system to submit funding proposals and reports. Feedback on the new system was solicited in 2020-21 to incorporate into future updates.

Each year, program officers provided recipients with guidance on projects and related budgets. Engagement increased during 2020-21. As measures to restrict the spread of COVID-19 began to impact the delivery of work plans, program officers supported recipients to adopt to alternative methods to deliver their programming.

The purpose of the 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 2020-21, the program invested $25.98M in FPInnovations to support 20 research projects that support the forest sector’s innovation agenda.

Also in 2020-21, FIP’s Transformative Technologies Program achieved the following results:

• 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;
• 57 science-based articles and technical reports were produced and shared with industry members ensuring increased awareness of forest-based research; and,
• FPInnovations successfully developed a biodegradable facemask from forest-based fibres ready to be manufactured in Canada and ready for public use. Discussions are underway with Canadian manufacturers of facemasks and cellulose filtration media regarding a pathway to commercialization.

In 2020-21, after a Call for Proposals, the FIP-funded Canadian Wood Fibre Centre Contribution Program funded thirteen projects across Canada. All these projects are relevant to Natural Resources Canada’s (NRCan) role in the bioeconomy by de-risking wood fibre supply. Examples of those projects are :

• Community-Scale Bioheat in Nova Scotia: Public Perceptions, Socio-Economic and Environmental Impacts, and Woodland Management Opportunities (Federation of Nova Scotia Woodland Owners)
• Digital Timberlands 2020: Digitalizing the upstream portion of the forest products value chain in New Brunswick (Northern Hardwoods Research Institute Inc.)
• British Columbia (BC) Forest Biomass Supply Information System (BC Ministry of Forests, Lands, Natural Resources Operations and Rural Development).

No evaluations in 2020-21.

Evaluation of Forest Sector Competitiveness program (including Forest Sector Innovation) planned for completion in March 2025.

Since 1997, NRCan has contributed to the Youth Employment and Skills Strategy (YESS) through the Science and Technology Internship Program (STIP), which supports the integration of youth between the ages of 15-30 into the natural resources sectors, including Energy, Forestry, Mining and Earth Sciences.

Using a third party delivery model, the program provides funding for youth placements through non-repayable contribution agreements. The third-party delivery organizations take responsibility for delivering the funding to employers.

The program has evolved over time to support the various government priorities as it relates to skills & employment, equity, diversity & inclusion, investing in the green economy and the economic response to COVID-19. 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 fields.

• In 2020-21, STIP invested over $15M and created 683 internships and training opportunities for youth ages 15 to 30 in the natural resources sectors.
• Investments ensured continuity of essential services in the natural resource sectors during the Covid-19 pandemic and supported Canada’s economic recovery. It also enhanced the employability of youth during the Covid-19 pandemic.
• Internships and training opportunities took place in all provinces and territories.
• Results for 2020-21 are:
  • 77% of youth found full-time employment post-internship.
  • 3% of youth are returning to school.
  • STIP had 61% participation by employment equity groups, including women, visible minorities, Indigenous youth and youth with disabilities.
  • Based on engagement with Indigenous youth, in 2019-20, STIP implemented program changes and removed barriers to employment, including, the removal of the post-secondary requirement, allowed training as an eligible expenditure, and increased the maximum wage subsidy amount to account for higher cost of living in northern communities. As a result, STIP has seen a significant increase in participation by Indigenous and northern youth from 6% in 2018-19 to 22% in 2020-21.
  • 52% of STIP hiring organizations were Small and Medium-sized Enterprises.
  • 84% of STIP placements were related to Clean Technology.

No evaluations in 2020-21.

Horizontal evaluation of Youth Employment and Skills Strategy, led by Employment and Social Development Canada (ESDC), planned for completion in March 2025.

Initial Recipients (Delivery organizations)

• Call for proposals December 2020-February 2021
• Monthly check-ins with delivery organization to assess progress.

Ultimate Recipients (Hiring organizations)

• Targeted e-mails
• Updated Website
• Engaged with employers during workshop on Inclusive and Diverse workplaces organized by Leading Change Canada in Fall 2020.
• 2 video testimonials

Youths

• Engaged with youth during several workshops and presentations organized by Leading Change Canada in Fall 2020.
• 2 Video testimonials
• Post-internship survey completed by each intern to gauge the skills acquisition and intern experiences during the training and internship.

Helping Canadians make their homes more energy efficient in order to support 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 up to 700,000 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.

Developed a web portal in house, and launched the national-scale program in May 2021.

Implemented focused energy advisor training/ recruitment to meet expected demand of the Canada Greener Homes Grant initiative.

No evaluations in 2020-21.

Evaluation of the Home Energy Retrofit Initiative planned for completion in September 2026.

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 and re-assessments.

Offshore royalties and transfers were included in the scope of the annual cycle of the Continuous Audit of Offshore Revenues and Transfers, completed in September 2020. As part of Natural Resources Canada’s (NRCan) continuous audit framework, the Audit and Evaluation Branch conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes. The Continuous Audit covering March 2019 to March 2020 found that all 16 of the key controls examined were effective.

Next cycle of Continuous Audit of Offshore Revenues and Transfers is planned for completion in September 2021.

Eligible initial recipients are provincial/territorial governments and their agencies. Eligible ultimate recipients are forest sector small and medium-sized enterprises (SMEs) that have less than 500 employees.

NRCan reached out to provinces and territories starting in summer 2020 and repeatedly thereafter to announce the initiative and set the stage for rapid development of agreements and funding processes.

The success of the FSSMF was made possible by close working relationships with participating provinces who were committed to distributing this emergency funding and invested significant resources toward its timely delivery. Provinces provided feedback as part of their narrative reporting, indicating strong satisfaction with the program and positive impacts on stakeholders.

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 support 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

2020-21 results:

• 43% of infested sites surveyed in the MPB management area indicated static or decreasing populations. This will represent the baseline for upcoming years.

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

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

2020-21 results:

• From 2019 to 2020, there was a 40% decrease in the number of infested trees detected aerially 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

2020-21 results:

• No research projects were initiated in 2020-21. However, a call for proposals was launched in March 2021. MPB-related publications are expected to increase in future years.

No evaluations in 2020-21.

Evaluation of Pest Risk Management planned for completion in December 2023.

NRCan pays 50% of the operating costs of the Canada-Nova Scotia Offshore Petroleum Board. The province pays the other 50%. This is done pursuant to section 28 of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act. The funds are drawn from the Consolidated Revenue Fund. Cost recovery regulations put in place in 2016 allow the Board to cost recover up to 100% of eligible costs from industry, which are remitted to the Government of Canada and the province of Nova Scotia on a 50-50 basis.

This transfer payment program does not have any repayable contributions

NRCan’s share of the Board’s operating budget was made in four quarterly payments throughout the course of the fiscal year.

Offshore royalties and transfers were included in the scope of the annual cycle of the Continuous Audit of Offshore Revenues and Transfers, completed in September 2020. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on selected processes. The Continuous Audit covering March 2019 to March 2020 found that all 16 of the key controls examined were effective.

Next cycle of Continuous Audit of Offshore Revenues and Transfers is planned for completion in September 2021

In respect of each fiscal year and pursuant to the Accord Acts, the Board is required to submit a budget request to Governments for approval by the Minister of NRCan and his provincial counterpart. NRCan officials engaged with the Board to understand the budgetary request and also consulted with the province.

The purpose and objectives of this transfer payment program (TPP) are to:

• Increase research and demonstration (R&D) activities (e.g., research papers, technology testing, experimental studies) that contribute to more secure and resilient domestic and cross-border energy infrastructure
• Improve the collective knowledge on cyber threats to domestic and cross-border energy infrastructure, including mitigation strategies

This TPP has non-repayable contributions.

Seven projects have been funded and are addressing a number of gaps in Industrial Control System cyber security in the energy sector including:

• Supply chain risk management, including integrity assessment, counterfeit detection and conformance of Industrial Internet of Things devices;
• Identifying, evaluating, managing, and mitigating cyber risks;
• Access to timely information on cyber threats and vulnerabilities; and
• Monitoring and detecting cyber incident response.

During 2020-21, one project was completed with project findings being distributed to government and industry stakeholders, while six projects are still ongoing with results expected between 2021-23.

No audits in 2020-21.

Joint Audit and Evaluation of Energy Sector Cyber Security planned for completion in March 2023.

To increase awareness about the program, projects funded and expected outcomes, program officers have:

• Made presentations at various fora;
• Led a social media campaign; and
• Engaged key federal, provincial, territorial stakeholders, industry representatives, and academia.

Successful applicants have moved forward with contribution agreements and projects were initiated in 2019-20 and 2020-21.

NRCan has facilitated discussion and collaboration with government and industry partners to support planning for projects. The Department continues to liaise with project proponents to support their work, highlight leadership and disseminate results.

The Department liaised with other federal departments supporting R&D programs (e.g., Public Safety Canada, Defense Research and Development Canada) in order to help proponents maximize their funding opportunities and continue supporting energy sector cyber security and resilience.

Each project has unique performance indicators and contribution agreements requiring periodic progress reports, annual reporting and a final report. These are required when proponents submit claims for payment and describe how activities have contributed to achievement of project and program objectives, benefits and key performance indicators.

Opportunities to engage project proponents in domestic and international initiatives will be identified, particularly as project deliverables are finalized. NRCan will also engage project proponents on an ongoing basis to identify issues and mitigate risks as they arise.

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.

Approaches to several potential recipients including provinces, First Nations, and academic institutions were made in 2020–21.

Formal initiation of the program was delayed to 2021–22 due to a connected legal issue, now resolved in NRCan’s favour. A request has been made to reprofile the 2020–21 funds.

Program material has been completed and approved.

No evaluations in 2020–21.

Evaluation of Geoscience to Keep Canada Safe planned for completion in May 2021.

The objective of this program is to generate new knowledge through research and development to enable Canadian forest operators and wood product manufacturers to maintain and improve market access, and reduce energy consumption and improve on environmental performance.

The program will also bring new and existing knowledge to bear on issues of domestic and international codes and standards relating to wood products, their manufacture and use.

This program will be delivered through non-repayable contribution agreements.

In 2020–21, the program invested $2.3M in projects that directly contributed to a more productive, cost effective and efficient Canadian forest sector.
The following results were achieved:

• FPInnovations scientists chaired or participated in over 130 committees, sub-committees and task groups responsible for drafting critical pieces of regulatory documents being considered in the development of national and international l codes and standards.
• Evaluated and developed road construction techniques for decision-support tools for use by Industry and governments (QC,ON, SK, AB) to ensure reliable and efficient access to fibre.
• Developed a guidance document on the use of geosynthetics on forest roads.
• Supported the development of a dashboard system warning of rollover conditions and map-based recording

No audits in 2020-21.

No evaluations in 2020-21.

Evaluation of Forest Sector Competitiveness program planned for completion in March 2025.

GeoConnections is an ongoing program with the mandate and responsibility to lead the evolution of the Canadian Geospatial Data Infrastructure (CGDI) with standards-based technologies and operational policies for data sharing and integration to address key economic, social and environmental priorities.

Through regular Calls for Proposals, GeoConnections is co-funding the development of innovative adoption and further development of the CGDI with eligible recipients by using Non-Repayable Contributions.

The mandate of the GeoConnections program is that Canada has an effective geographic foundation. CGDI enables the sharing and use of geospatial information about Canada's lands, peoples and natural resources to support economic, social and environmental priorities.

To this end, GeoConnections funded four  recipients during  2020-21 following a competitive Announcement of Opportunity to increase Canadian corporations’ and individuals’ capacity to derive intelligence on demand, including Data as a Service (DaaS).

In a DaaS environment, the physical location of data can be anywhere in the world. DaaS supports a greater diversity of software applications, as any provider can develop applications to use DaaS feeds. DaaS has made  data available for multiple users and uses. DaaS supports open knowledge and data sharing, allowing greater access to standardized data to support planning and policy development.

Funded projects also addressed issues around data findability, discoverability, and interoperability in DaaS environments. Communities need up-to-date Green House Gas (GHG) inventories to improve energy efficiency and take effective climate action. GeoConnections funded project has made GHG inventories available free of charge to Canadians, as well as to businesses and governments.  Projects have also leveraged geospatial analysis, systems dynamics and machine learning methods to user scale and results are available for review and application by governments, industry and academia.

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.

The Indigenous Forestry Initiative (IFI) contributes directly to the Department’s Program Activity 1.2 – Innovation for new products and processes and Sub-Program 1.2.2 – Forest sector innovation. Moreover, the IFI is aligned with the Government of Canada’s commitment to a renewed nation-to-nation relationship with Indigenous Peoples.

In 2020–21, NRCan launched the first of two planned calls for proposals, to commit $13M over 3 years (2020-2023) in contributions to support Indigenous-led forest-based economic development. To date, $6.8M has been committed to 52 new and on-going Indigenous forestry and manufacturing initiatives.

Since its launch in 2017, the IFI has supported over 145 projects with over 120 Indigenous communities, which has led to the creation of over 435 jobs and 29 new or expanded forest sector businesses.

In 2020–21, the IFI engaged with the National Aboriginal Forestry Association following their March 2020 meeting with the Minister of Natural Resources Canada (NRCan) on the impacts of COVID-19 on Indigenous groups in the forest sector.

As a response to concerns expressed, NRCan delayed the 2020 IFI call for proposals to Summer 2020, and committed to a second call in 2021, to accommodate Indigenous groups impacted by the pandemic.

In addition to typical New Releases and Social Media plans to announce the IFI 2020 call for proposals, NRCan staff also hosted information webinars about the program.

The IFI featured regionally-deployed Indigenous Forestry Liaison Officers to 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.

• Access to new and priority markets for Canada’s natural resources is enhanced
• Natural resource sectors are innovative

• Cumulative Effects
• Energy Safety and Security, and Petroleum Resources

Natural Resources Canada (NRCan) engages with Indigenous groups in dialogues on issues related to its mandate. The contributions are intended to facilitate Indigenous participation in dialogues.

During these dialogues, Indigenous groups may raise issues relevant to natural resources, which will be tracked and assessed as the dialogue proceeds to determine whether they have been adequately addressed.

In the coming year, the focus will be on supporting research on woodland caribou as it is considered threatened under the Species At Risk Act, and on the modernization of Canada’s energy regulator.

Natural Resources Canada (NRCan) has provided funding to five First Nations across the country, to support research on woodland caribou, which is listed as  threatened under the Species At Risk Act. This funding helps develop and implement community-driven approaches to conservation built on Indigenous Knowledge.

Indigenous groups are engaged with the Crown or its representative in dialogues related to NRCan’s mandate. Given these agreements are multi-year, expected results related to the  protection of species at risk at NRCan include:

• Maps developed based on Indigenous Knowledge, to define caribou-preferred habitat;
• Caribou habitat restoration efforts linked to effectiveness monitoring will help inform restoration decisions;
• Following monitoring of results, draft restoration plan will be developed for each Saskatchewan region; and,
• Development of a community-led land-use plan.

Between 2016-17 and 2020–21, the National Energy Board (NEB) Modernization’s Participant Funding Program (PFP) provided multi-year funding to 142 Indigenous groups to participate in the Environmental Assessment and Regulatory Review related to the review of the National Energy Board Act. This funding supported Indigenous participation in various stages of Bill C-69 development and implementation.  In 2020–21, NRCan initiated final payments on legacy contribution agreements and anticipates closing-out this phase of the PFP in 2021–22.

This program was selected as part of the sample for the annual cycle of the Continuous Audit of Grants and Contributions. As part of NRCan’s continuous audit framework, the Audit and Evaluation Branch conducts periodic assurance-based continuous auditing to proactively identify potential systemic control deficiencies and report annually on select processes.

The Continuous Audit covering November 2018 to July 2019 found that all ten key financial and monitoring controls were in place for the administration of grants and contributions, and that they are working as intended.

No evaluations in 2020–21.

No evaluations planned. Further evaluation work will be considered during the annual multi-year planning exercise, in accordance with program development and the Treasury Board Policy on Results.

Annual check-ins with participants. Annual progress and financial reports have been or will be submitted for 2020–21 (all remaining reports are expected to be completed by August). There are also initiatives to share outcomes from  participants with the research community.

There was no engagement of applicants or recipients under the NEB Modernization’s PFP.  As no new contribution agreements were issued under this phase of the program since 2017-18, the Department focused on issuing final payments and closing accounts.  Future engagement opportunities will be identified and launched through a new phase of the program, when the Department is ready to proceed with meaningful engagement on legislation or regulations under development that support the efficient and effective implementation of the Canadian Energy Regulator Act.

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

• Clean Energy Technology Policy Research and Engagement
• Forest Sector Competitiveness

• Support the scale up of Canadian small businesses through early-stage, pre-commercial Research and Development.
• Develop a domestic market for early-stage, pre-commercial innovations
• Facilitate the subsequent testing and validation of prototypes, as well as prepare a pathway to commercialization and purchase of novel new products by government and non-government customers.
• Fund the development and commercialization of new technology to address specific problems identified by the funding department.
• Foster greater industry-research collaboration through the release of challenges for solutions that address key Government of Canada priorities

This Program does not include repayable contributions.

• Bioplastics Phase 2: Two phase 2 projects secured and on-going (project end dates of March 31, 2022)
• Biofoams Phase 1 and 2: Three phase 1 projects secured, with two projects completed and Phase 2 applications submitted. Both proof of concepts were successful. The third project will be completed by June 30, 2021 and will submit a Phase 2 application.

No audits in 2020–21.

No evaluations in 2020–21.

No evaluations planned. Further evaluation work will be considered during the annual multi-year planning exercise, in accordance with program development and the Treasury Board Policy on Results.

The $10M (over 5 years) challenge will invest in the rapid development of new oil spill recovery tools, technologies, and approaches in the Canadian environment. The ultimate outcome of this initiative is to incent the development and facilitate deployment of new cutting-edge solutions to ensure that innovative approaches to oil spill recovery are available to support effective and rapid oil spill response tailored to Canadian conditions and needs.

The Program’s objective is to support the rapid development and deployment of oil spill recovery technologies through prize-based technology development challenge(s), that:

• Include significant stakeholder engagement framing the challenge(s) and ensure challenge design supports innovation requirements; and
• Improve pace and paths to commercialization of new oil spill recovery technologies targeting Canada’s unique oil products and geographic/environmental conditions.

Grants and contribution payments made under this program are non-repayable.

No audit in 2020–21.

Joint Audit and Evaluation of Oil Spill Recovery Technology Program planned for completion in March 2025.

No evaluations in 2020–21.

Joint Audit and Evaluation of Oil Spill Recovery Technology Program planned for completion in March 2025.

• 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; and,
• 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 provides a mechanism to further program objectives, the funding disbursed through the Contributions in Support of Research was considered in the context of evaluations of the programs to which the funded projects align.

Actual results (outcomes) achieved are:

• 87% of users have reported that the Research Terms and Conditions were accessible;
• 100% of users have reported that this mechanism met their needs.

No evaluations in 2020-21.

No evaluations planned. Further evaluation work will be considered during the annual multi-year planning exercise, in accordance with program development and the Treasury Board Policy on Results.

The purpose of the program is to:

• Provide federal science leadership for the collaborative implementation of the Canadian Wildland Fire Strategy, enabling research related to national wildfire risk assessment and analysis to provide information that is grounded in science, which makes strengthened decision-making possible.
• Enhance whole-of-society collaboration and governance to strengthen resilience.
• Increase focus on whole-of-society disaster prevention and mitigation activities to:
  • increase the resiliency of Canadian communities to the risks and impacts of natural disasters.
  • undertake and implement risk reduction analyses and actions.
  • ensure that wildfire response agencies are integrated with each other in order to implement an effective wildland fire response program.
  • increase the wildfire knowledge of agencies, communities and individuals in order to create a culture of wildfire safety and to empower the public to understand risk

There are no repayable contributions under this program.

Program objectives were met, with a total of 17 agreements active in 2020–21, including multi-year and single-year agreements. A total of 38 reports and products of various kinds were produced, including 22 science reports and tools, and 16 information, outreach and coordination products.

Contributions supported technical assessments for all 12 provinces and territories (not Nunavut) for compatibility assessment and business requirements for the development of the Canadian Wildland Fire Information Framework. Four agreements were with Indigenous organizations.

Agreements with the Canadian Interagency Forest Fire Centre, Partners-in-Protection (Firesmart Canada), the First Nations Evacuation Partnership (University of Alberta), and Bluesky Canada (Smoke modelling - University of British Columbia) were maintained as per commitments under the Emergency Management Strategy program.

In 2020–21, recipients and prospective applicants were engaged on an ongoing basis through various existing multi-stakeholder forums such as the:

• Canadian Council of Forest Ministers Wildland Fire Management Working Group
• Canadian Interagency Forest Fire Centre Board of Directors and technical working groups
• Canadian Partnership for Wildland Fire Science

Preparations for the next Wildland Fire Canada Conference scheduled for October 2021 are underway. Indigenous engagement was conducted through the Canadian Forest Service (CFS) Indigenous engagement officers, supported by CFS regional liaison officers, and Indigenous elders-in-residence. Recipients of multi-year agreements were engaged through regular reporting activities, and new prospective applicants were engaged via targeted outreach through regional science networks.

The Government of Canada will ensure that Indigenous peoples are meaningfully consulted and, where appropriate, impacts on their rights and interests are mitigated and/or accommodated.

This funding will allow NRCan to conduct Crown-Indigenous consultations with Indigenous groups on natural resource projects that require a decision by the Governor in Council.

Non-repayable contributions (neither TMX Accommodations, nor Interim Principles).

During 2020-21, Natural Resources Canada (NRCan) established 51 new Contribution Agreements (CAs) with Indigenous groups as part of this program, in addition to 22 CAs established in 2019-20.

In 2020-21, NRCan delivered participant funding to Indigenous groups in support of Phase III Crown-Indigenous consultations for the three NGTL System expansion projects NGTL 2021, NGTL North Corridor and NGTL Edson, in order to support meaningful consultations with Indigenous groups potentially impacted by the Projects.

Further, as identified in the NGTL 2021 GIC project decision in October 2020, NRCan extended the Terrestrial Cumulative Effects Initiative (TCEI) to Indigenous groups on the NGTL 2021 Crown list.  Seven of the 51 new CAs established in 2020-21 under this program are for this accommodation measure aimed at monitoring the cumulative impacts on the environment.

This transfer payment program covers two Natural Resources Canada (NRCan) geoscience programs, the Targeted Geoscience Initiative (TGI) and Geo-Mapping for Energy and Minerals (GEM-GeoNorth).

The objective of the collaborative federal TGI geoscience program is to provide the Canadian mineral industry with the next generation of geoscience knowledge, innovative techniques and predictive models, which will result in more effective targeting of buried mineral deposits.

The objective of the GEM-GeoNorth Program is to help unlock the full mineral potential of Canada’s North and promote responsible land development in the region by mapping its geology. GEM-GeoNorth works with partners across Canada to develop new geoscience knowledge, tools and educational opportunities focusing on mineral potential, climate-resiliency, and sustainable land-use.

Both TGI and GEM-GeoNorth will provide grants to eligible recipients to conduct science that aligns with program outcomes, or to develop capacity-building opportunities for geoscience professionals; in the case of GEM-GeoNorth, part of this funding will be earmarked for Northern educational institutions. GEM-GeoNorth will also disburse grants to Northern and Indigenous organizations to develop opportunities and tools that enable access and use of geoscience knowledge by Indigenous peoples.

Most transfer payments made under this transfer payment program will be grants, but contributions may be allocated if NRCan deems it necessary to monitor progress and results, receive an accounting of the use of funds from the Recipient, and have the right to carry out a recipient audit or to request some other type of certification or audit assurance from the Recipient.

Grants and contributions will be non-repayable.

Because Geoscience program transfer payment funding was only made available in January 2021, TGI and GEM-GeoNorth did not have sufficient time to establish the necessary agreement framework that would utilize the $330,000, FY 2020-21 budget.  However, in early calendar 2021, TGI received an unsolicited proposal from the Prospectors and Developers Association of Canada [PDAC], seeking support for the fledgling Frank Arnott-Next Generation Explorers Award [NGEA].  Following management review of the proposal it was agreed to provide the proponent with $15K of grant funding that would assist them to develop greater collaboration linkages and multi-disciplinary group alliances between university academic institutions and the Canadian mineral exploration industry, in order to address the growing challenges associated with the need to explore under cover (and/or) deeper for mineral resources.

In January 2021, TGI initiated a call for proposals to its grant program for studies to be conducted during 2021-23 under the program’s updated transfer payment terms and conditions. Fifty-five submissions were received in February 2021. This work will be complementary to TGI research, enhancing understanding of the formation of key critical and economically important mineral deposits across Canada, as well as methods to improve effectiveness in exploring for them.

In June/July 2021, GEM-GeoNorth will initiate a call for proposals and proposals will be received and reviewed. These will be funded from the 2021-22 G&C budget.

During fiscal year 2020-21, the program consulted and held information sessions with various key stakeholder groups including the: National Geological Surveys Committee [Provincial/Territorial Geological Surveys]; TGI Industry Advisory Group (mineral industry, including industry associations; and, the Canadian Council of Chairs of Earth Science Departments [academia]. Program information was also provided on appropriate program web pages and TGI also advertised its initial call for single/multi-year grant proposals on the PDAC WEB platform.

By February 22, 2021 closing date, TGI had received 55 proposals, all of which were focused on enhancing the understanding of the formation of key critical and economically important mineral deposits across Canada, and developing methods to improve exploration effectiveness.

Meanwhile, during the latter part of fiscal year 2020-21, GEM-GeoNorth continued to ensure that the program was being co-developed with the Provinces and Territories, as well as Northern and Indigenous government and organizations, and anticipates launching the initial call for single/multi-year grant proposals during the second Quarter of fiscal year 2021-22.

CERCC:

In 2020-21,Natural Resources Canada (NRCan) continued to advance the government’s commitment to reduce reliance on diesel and other fossil fuels for heat and power in Canada’s rural and remote communities by supporting community-led renewable energy projects.

One such project is the Community Sustainability Initiative done with the Sagatay Cogeneration Limited Partnership in the Ojibwe First Nation community of Whitesand in northwestern Ontario. 

NRCan provided the partnership with $500,000 for the development of all engineering drawings and plans for Whitesand Pellet Mill’s biomass cogeneration system. With this funding, Sagatay Cogeneration prepared detailed engineering design documents such as mechanical, structural, civil and electrical engineering design construction drawings, and performed procurement and tendering activities.  With these plans and drawings serving as important first steps for the project, the Satagay Cogeneration Partnership may now also be able to access more funding dollars through other programs, such as the Smart Renewables and Electrification Pathways Program (SREPs), which provides up to $964 million over four years for smart renewable energy and electrical grid modernization projects.

While the engineering and design work will not immediately create employment, the construction work, for which this project lays the groundwork, is estimated to create 100 temporary construction jobs and 72 permanent harvesting jobs. Furthermore, the project would enable revenue from the operations to flow into education, housing, infrastructure and other critical community needs, and would address long-standing obstacles relating to systemic high unemployment, and dependence on social assistance.

The biomass cogeneration system for the Whitesand Pellet Mill is also expected to reduce 1.2 million litres of diesel a year.

EMP:

In 2020-21, the department continued delivering the Energy Manager Program to help Canadian organizations identify and adopt energy efficiency practices. Financial support targets small and medium-sized enterprises, municipalities, universities, schools and hospitals, to hire energy managers and conduct energy and fleet assessments. Over 25 projects are in progress, enabling organizations to increase energy efficiency, save on operating costs, and reduce greenhouse gas emissions.

CERRC:

The program consulted with recipients and applicants through regular email correspondence, as well as bilateral calls and conference calls. The program also engaged with applicants and recipients at conferences and related training events.

EMP:

NRCan ran a two-month long request for proposals from August 1, 2019 to September 30, 2019. Due to the Covid-19 pandemic and public health guideline restrictions, seven project proponents required an extension to complete indoor energy assessments

NRCan worked with partners, stakeholders, and industry associations to promote the program. A project proposal template along with guidance material was provided to solicit core project information, as well as supplemental information that enabled informed funding decisions.

To ensure adequate access to skilled professionals to guide the energy projects, relevant organizations were engaged to increase the supply of qualified energy managers and to promote knowledge sharing and excellence among energy managers, including with Indigenous communities.

Outreach and Engagement:

Since the Outreach & Engagement authority is a mechanism to further program objectives, the funding disbursed through the Outreach and Engagement activities was considered in the context of evaluations of the programs to which the funded projects align.

Actual results (outcomes) achieved are that:

1. 100% of users reported that they were able to access the Outreach and Engagement Terms and Conditions;
2. 100% of users reported that terms and conditions allowed them to fund projects, which they would not have otherwise.

Energy Efficiency Program:

Grants under this funding authority allowed for projects, which contributed towards the delivery on Canada’s commitments as co-chair of various Initiatives, under the Clean Energy Ministerial, by supporting the ongoing analysis, capacity building and other activities undertaken by the IEA in their role of operating agent of such Initiatives.

These grants also enabled research on user-centred energy systems, facilitated international discussions, and supported Canada’s participation in the International Energy Agency’s 4E Implementing Agreement and in the Consortium for Energy Efficiency 2020 Efficiency Programs.

Energy Innovation Program:

Funding is contributing towards the Centre for Energy Advancement through Technological Innovation’s (CEATI) Strategic Options for Integrating Emerging Technologies and Distributed Energy Interest Group (SOIG) to document case studies and utility program design practices for electrification for space heating and water heating in residential and commercial applications. Electrifying residential and commercial end uses such as space heating and water heating can decrease GHG emissions and, in some cases, simultaneously reduce costs for end users.

Study results will benefit Canadians and various stakeholders from knowledge of a broader range of feasible options. As of 2020-21, the project steering committee had agreed upon a workplan and detailed structure for the study. Research and analysis will be completed by 2021-22

Outreach and Engagement:

Initiatives to engage applicants and recipients for such grants has relied directly from those in place within the programs, which make use of this funding mechanism to further program objectives. A variety of engagement strategies employed in 2020-21 included solicitation by way of call for proposals, active communication with proponents, and monitoring progress by program officials throughout the life of the project to name a few. Some of these grants are also the result of Canada’s commitment to accelerate the development of natural resources via knowledge dissemination of best practices thus aiding Canada to keep its competitive edge, promote the sustainable use of our natural resources and remain a leader in the use of clean, efficient technologies while preserving and protecting its natural resources.

Via engagement with Energy Council of Canada: Various engagement activities (roundtables, discussion sessions, etc.) were hosted throughout the year further new outreach opportunities were established, and work under the North American and International Outreach Initiative was advanced. Together these activities aided in solidifying Canada’s position as a preferred investment destination and partner in natural resources trade.

Via engagement with International Energy Forum (IEF): Various engagement activities were hosted including the 5th IEA-IEF-OPEC Symposium on Gas and Coal Market outlooks, the 7th IEF-IGU Ministerial Gas Forum, and IEF Executive Board meetings. The IEF conducted ongoing activities related to the comparative analysis of IEA, OPEC, and EIA data forecasts on oil markets and various fuel sources. Together these engagement activities and expert analysis support Canada’s capacity to remain a preferred investment destination and partner in natural resource trade.