ARCHIVED - Natural Resources Canada

Name of Transfer Payment Program: Contributions in support of the Technology and Innovation Initiative

Start date: October 10, 2003

End date: March 31, 2009

Description: To contribute to the objectives of Canada's climate change agenda by reducing long-term greenhouse gas (GHG) emissions by means of longer-term advanced technologies and enhanced innovative capacity through research, development and demonstration.

Strategic Outcome: Canada is a world leader on environmental responsibility in the development and use of natural resources.

Results Achieved:
Demonstration Component: The Technology Early Action Measures (TEAM) program was the demonstration component of the Technology & Innovation Initiative. The timeframe of the program, per the T&I Initiative, was from October 2003 to March 31, 2008. However, in December 2007, TEAM received Treasury Board approval for its Terms and Conditions to be extended for one additional year, namely for the 2008-09 fiscal year, in order to allow for the proper implementation of projects started in 2007-08. TEAM demonstration projects are typically multi-year, ranging from 1-5 years. The Climate Change Review had frozen activities in 2005-06, and as a result much of the TEAM funding for 2003-08 had been reprofiled to the 2007-08 fiscal year. The extension of the T&C's for 1 extra year, in 2008-09, allowed the TEAM program to avoid lapsing of a significant amount of G&C funds and more optimally implement demonstration projects over this timeframe. As a result, TEAM received approval to transfer $4.8M allocated to 8 projects to the 2008-09 fiscal year. Out of these 8 projects, 2 were terminated prematurely because proponents were unable to obtain the necessary partner financing to complete the projects. TEAM was able to reallocate $1.5M freed up from these 2 projects, out of the $4.8M for 2008-09, to 5 existing projects that were progressing well. In 2008-09, TEAM lapsed $110k in G&C funds.

During 2008-09, the TEAM program disbursed $4.7M in contributions (G&Cs), providing funding to 13 demonstration projects. G&C contributions typically represent 90% or more of TEAM's annual budget, and are the primary means of funding clean technology demonstration projects. Since inception in 1998, TEAM has funded 140 clean energy demonstration projects, many of which are flagship NRCan projects. Total G&C disbursements to date are approximately $130M, and total project value exceeds $1.1B. The following are highlights of funding activities in 2008-09:

• TEAM project COM-097 Dockside Green (TEAM contribution $2.3M; total project cost $14M), which is a green real estate development of 26 residential and 7 commercial buildings with over 1200 residential suites, over a 15 acres site in downtown Victoria BC, completed construction of its biomass heating plant, funded by TEAM. This project sets an example and showcase to the world in how to implement sustainable, green, healthy real estate development. The project is only one of 9 projects in Canada to have received the LEED platinum certification and has received the highest LEED platinum rating of any project in the world. The project won an award from the American Institute of Architects as one of its Environmental Top Ten Green Projects for 2009. NRCan contributed at an early stage of the project (feasibility and engineering design), providing needed credibility, financial stability and momentum to the project. Via its GHG assessment process, NRCan helped the Dockside Green management team develop and quantify environmental benefits, in particular the benefits related to the integrated design and systems approach. NRCan focused its funding on the feasibility studies, business cases, and detailed engineering designs of the clean energy (biomass heat system, heat recovery) and water management systems, which are at the heart of the award winning real estate development design and the basis of the LEED platinum certification.
  
• TEAM project COM-103 with the Solar Building Research Network was completed (TEAM contribution $1M, total project cost $2.6M). This is the first demonstration of its kind in the world – a combined solar electric and thermal system was integrated into the operations and building envelope of a large commercial building, the John Molson School of Business, at Concordia University in Montreal. This project marks a significant advance in the state-of-the art in attempting to reduce the environmental footprint of buildings. Canadians have developed capacity to further advance the combined heat and power solar technology and to implement its application in real world applications. The project helped strengthen Canadian solar technology companies that participated in the project, including Conserval and Day4Energy. This world leading technology has been featured on the Discovery Channel and will be also promoted at International Energy Agency working groups. The system has an estimated solar efficiency (utilization) of 60%.
  
• TEAM project IND-146 Enhanced Joint Implementation of Vapour Extraction (JIVE) was completed (TEAM contribution $1M; total project cost $11.6M). The project significantly advanced knowledge of and demonstrated completely novel enhanced oil recovery techniques for use in the extraction of heavy oil, which have considerable lower environmental impact versus conventional heavy oil extraction techniques. This project, which is co-funded with SDTC, has now evolved and developed into a new Carbon Capture & Storage project funded by ecoENERGY Technology Initiative, as part of its $140M call for proposals for CCS projects. The new $3-4M ecoETI CCS project is with Husky Energy and is called Targeted R&DR&D Activities in CCS for Heavy Oil EOR. NRCan provided its funding at a critical stage of the project, after the SDTC-funded project had started and some problems in implementing the JIVE project had been identified. NRCan targeted its funding to the development of physical and mathematical models, which when used iteratively with data from field operations, could be used to progressively improve the EOR techniques under development. According to the PTRC, the models funded by TEAM are amongst the key elements which have led to the project's success.
  
• TEAM project IND-155 Direct-Fired boiler gasification demonstration Project (with Nexterra Energy; TEAM contribution $1.7M; total project cost $7.4M) completed detailed engineering design and obtained funding. The project is a first in the pulp and paper industry. Nexterra's turnkey gasification system will convert locally sourced wood residue into clean burning "syngas" that will be fired directly into a boiler in place of natural gas. The Kruger installation will produce 40,000 lbs/hour of process steam and displace approximately 445,000 gigajoules (GJs) of natural gas annually. This is equivalent to the amount of natural gas used to heat 3,500 homes in Canada for a year. Displacing this amount of natural gas with syngas made from wood fuel will lower the mill's energy costs by millions of dollars a year, making the mill less reliant on fossil fuels. It will also reduce greenhouse gas emissions from the plant by more than 22,000 tonnes per year, the equivalent of removing nearly 5,500 cars off Canadian roads. Nexterra's direct fired gasification system is a platform technology that can be used in many industrial applications. Replicating Nexterra's technology at industrial sites in B.C. could result in an estimated 200,000 tonnes of greenhouse gas emission reductions in British Columbia annually by 2020. For this project, NRCan provided support at a critical time, especially given the difficulties experienced by the pulp and paper industry over the past 3 years, as well as the current economic crisis. NRCan stayed with the project even as the project partner and site location changed. NRCan's support, at the highest risk point of the project, was used to leverage additional funding that was needed for the project, from FPInnovations, the new BC ICE program, and Ethanol BC.
  
• In 2008-09, TEAM continued to play a role in developing and providing internationally accepted standards (ISO) and tools, relating to the measurement and reporting of Greenhouse Gas emission reductions achieved in clean energy demonstration projects. In addition, TEAM continued its work in implementing qualitative assessments for air quality impacts from demonstration projects. TEAM also submitted a verification protocol to provide a method to audit GHG results; continued to work internationally to draft a guidance documentation for ISO standard 14065 on the accreditation of validation and verification bodies; and implemented an MOU with the Standards Council of Canada for creating a national system for the accreditation of verification bodies and a professional certification scheme for GHG validators, verifiers, and consultants.

Comment(s) on Variance(s): lapsed at fiscal year end, as could not be reallocated to other projects

Audit completed or planned: Evaluation of TEAM, as a component of the Climate Change Action Fund http://www2cm.nrcan.gc.ca/nrcan/index_e.aspx?DetailID=392; TEAM was also one of the programs evaluated in the Examination of Federal Energy & Environmental S&T Investment (completed in 2006/07). TEAM has been actively working with NRCan's Strategic Knowledge and Evidence Branch on the new evaluations of Transportation & Built Environment that are in the planning stages for 2008-09.

Name of Transfer Payment Program: ecoENERGY for Biofuels

Start date: April 1, 2008

End date: March 31, 2017

Description: The ecoENERGY for Biofuels program supports the production of renewable alternatives to gasoline and diesel and encourages the development of a competitive domestic industry for renewable fuels. The program provides an operating incentive to facilities that produce renewable alternatives to gasoline and diesel in Canada.

ecoENERGY for Biofuels will invest up to $1.5 billion over nine years in support of biofuel production in Canada. Recipients will be entitled to receive incentives for up to seven consecutive years.

Strategic Outcome: Canada is a world-leader on environmental responsibility in the development and use of natural resources.

Results Achieved: In fiscal year 2008-2009, the program received 46 applications and signed 22 contribution agreements representing a total commitment of $938 million and a volume of 1.63 billion litres of biofuels.

Comment(s) on Variance(s):

Audit completed or planned:

Name of Transfer Payment Program: ecoENERGY for Renewable Heat Program

Start date: April 1, 2007

End date: March 31, 2011

Description: The program supports non-emitting renewable thermal energy technologies for space heating and cooling, and water heating though a mix of deployment contributions and industry capacity development activities.

Strategic Outcome: Canada is a world leader on environmental responsibility in the development and use of natural resources.

Results Achieved: As at March 16, 2009, 466 contribution agreements were signed for deployment of solar thermal systems in institutional, commercial and industrial sector. In addition, program signed 11 contribution agreements with collaborators to implement residential pilot projects for deployment of solar hot water units in homes.

Comment(s) on Variance(s): Installations under the Residential Pilot Program encountered regulatory barriers so funds were reprofiled to later years.

Audit completed or planned: Recipient audits on 12 Commercial Deployment Initiative projects underway.

Name of Transfer Payment Program: ecoENERGY for Renewable Power Program

Start date: April 1, 2007

End date: March 31, 2011

Description: The ecoENERGY for Renewable Power program offers a production incentive of 1 cent per kilowatt hour for ten years to eligible producers of electricity from low impact renewable power sources such as wind, low impact hydro, biomass, geothermal, photovoltaics and ocean energy.

Strategic Outcome: Canada is a world leader on environmental responsibility in the development and use of natural resources.

Results Achieved: In fiscal year 2008-2009 40 new contribution agreements were signed for about 1790 megawatts of capacity and contribution of approximately $597 million over ten years.

Comment(s) on Variance(s): The ecoENERGY Renewable Power Program had anticipated more projects built during 2008-2009. Some projects experienced commissioning delays, and others were cancelled due to difficulties in obtaining financing.

Audit completed or planned: During fiscal year 2008-2009, two financial audits of recipients were completed under the program.

Name of Transfer Payment Program: ecoENERGY Retrofit – Homes

Start date: April 1, 2007

End date: March 31, 2011

Description:

Announced as part of the suite of ecoENERGY initiatives, under the ecoENERGY Retrofit Program, ecoENERGY Retrofit Homes provides home and property owners with grants up to $5,000 per unit to offset the cost of making energy efficiency improvements. Small mixed-use buildings are also eligible as long as they meet the size requirements and 50% or more of the floor space is used as permanent residences. Property owners can qualify for federal grants by improving the energy efficiency of their homes, and reducing their home's impact on the environment.

The Government of Canada provides grants to owners of low-rise properties who complete energy efficiency retrofits based on the energy advisors' recommendations. Owners of rental properties may also qualify for a grant. The grant amount is based on carrying out energy efficiency retrofits such as increasing attic insulation or replacing a gas furnace with a qualified ENERGY STAR^® model. Only homes that have undergone a residential energy efficiency evaluation by an NRCan-licensed advisor are eligible for grants.

As part of the Government of Canada's Economic Action Plan, the ecoENERGY Retrofit – Homes program has been expanded to help 200,000 more homeowners cover the cost of making energy-efficiency retrofits to their homes. The time-limited expansion includes grant-level increases of 25 percent and a $300-million increase in funding over two years.

Strategic Outcome: Canada is a world-leader on environmental responsibility in the development and use of natural resources.

Results Achieved: Grants to 94,000 homeowners have been made to support energy efficiency upgrades that will reduce their annual energy consumption. Grants averaged $1,112 per household. All regions of Canada, except one province and one territory, have matching programs that provide homeowners with seamless access to both orders of government support for home retrofits.

Comment(s) on Variance(s): The accelerated success of the ecoENERGY Retrofit – Homes program resulted in eligible claims exceeding authority provisions by $10.7 million. Subsequent year authorities will be adjusted downward by the $10.7 million variance to offset the 2008-2009 over expenditure.

Audit completed or planned: An audit of the ecoENERGY Retrofit – Homes program will take place in 2009/10.

Name of Transfer Payment Program: ecoENERGY Technology Initiative

Start date: April 1, 2007

End date: March 31, 2011

Description: The ecoENERGY Technology Initiative is a $230-million investment in science and technology by the Government of Canada to accelerate the development and market readiness of technology solutions in clean energy. This initiative is directed towards increasing clean energy supplies, reducing energy waste, and reducing pollution from conventional energy.

Strategic Outcome: Canada is a world leader on environmental responsibility in the development and use of natural resources.

Results Achieved: Completion of call for proposals process, followed by proposal assessment and due diligence for large scale projects in carbon capture and storage (CCS) completed. Eight projects selected (in BC, Alberta and Saskatchewan), and negotiations for contribution agreements begun, with projects to start in 2009-10.

Significant progress in broad range of R&D projects in the areas of low emission industrial processes, energy efficient built environment, clean transportation systems, distributed power.

Comment(s) on Variance(s):

Audit completed or planned: The Initiative will be evaluated according to NRCan's evaluation plan.

Recipient audits will be undertaken as required under the RBAF for the initiative.

Name of Transfer Payment Program: Federal Response to the Mountain Pine Beetle Infestation in BC

Start date: 2006-2007

End date: 2009-2010

Description: The Program is designed to slow the eastward spread of the Mountain Pine Beetle (MPB), recover economic value from beetle-killed trees, and to reduce the threat to public safety in communities and the impacts to forest resources in areas affected by the infestation.

Strategic Outcome: Natural resource sectors are internationally competitive, economically productive, and contribute to the social well-being of Canadians.

Results Achieved:
In 2006-07, the Government of Canada announced the $200-million Federal Response to the Mountain Pine Beetle Infestation program. NRCan administers $100M, Transport Canada $56M and Western Economic Diversification $44M. Under this Program, NRCan has worked closely with BC and AB officials to deliver a comprehensive, integrated strategy in response to the beetle infestation. Additional information about this program can be found by visiting http://mpb.cfs.nrcan.gc.ca.

Slowing the Spread
One objective of the federal MPB program is to slow the eastward spread of the beetle outbreak. NRCan worked with scientists from BC and AB to complete a comprehensive assessment of the pine beetle threat to the boreal and eastern pine ecosystems. This assessment contributed to setting spatial priorities for federal funding in beetle detection and control. In 2008-09, over 1.3 million hectares of pine forests were scheduled to be surveyed for active beetle infestation; over 28 thousand beetle-infested trees were planned to be felled and burned; and 1 thousand hectares are identified for prescribed burning to destroy resident beetle populations. Beetle control was undertaken on forestlands in the mountain national parks and the Dominion Coal Blocks in south-eastern BC in areas identified to complement the control activity on provincial forestlands

Recovering Economic Value
NRCan, working with BC agencies, continued delivery of the primary surveys on mineral and energy potential in the Bowser and Nechako Basins of the beetle zone in BC. Working with national sector research institutes and universities, the program enabled the completion of timely studies on:

• the potential impacts of post-beetle timber management on future forests;
  
• how to integrate post-beetle timber into established milling procedures and markets; and
  
• the potential for bio-energy and alternative uses for the massive volume of beetle-killed timber.

Protecting Communities and Forest Resources
NRCan has also focused on mitigating post-beetle impacts on community safety and forest resource sustainability. The MPB impacts community safety through increased forest fire fuel loads and dead hazardous trees.

During 2008-09, the Program funded the removal of hazardous beetle-killed trees from school yards and assisted 12 communities in removing these trees from municipal lands; assisted 22 communities and districts in reducing post-beetle fire fuel loads; and assisted 64 First Nations with reducing fire fuel loads to their villages on Reserve lands. The Program requires and funds the completion of a professional forest fuel management plan as a precondition to any support for removing forest fuel loads. The fuel abatement activity is based on the national FireSmart program prescriptions.

NRCan also assisted regional and local economic diversification efforts in tourism by funding the removal of more than 28,000 beetle-killed trees at 128 recreation sites and 11 hiking trails. In addition, 56 archaeological impact assessments were completed.

Comment(s) on Variance(s): The variance between the total authorities and the actual spending is due to reprofiling per 2009-10 ARLU.

Audit completed or planned:
http://www.nrcan.gc.ca/dmo/aeb/aeb-rpts-2007-EV0702-e.htm
NRCan's Strategic Knowledge and Evidence Branch has the beetle program scheduled for evaluation in 09/10.

Recipient audit scheduled for 09/10. NRCan Audit completing audit of compliance of G&C spending with TB T&C's in 09/10.

Name of Transfer Payment Program: Forest Industry Long-Term Competitiveness Strategy – Expanding Market Opportunities

Start date: 2006-2007

End date: 2009-2010

Description: There are three initiatives in this program: the Canada Wood Export Program, the North American Wood First Initiative, and the Value to Wood Program. These initiatives aim to increase market opportunities for Canadian wood product producers through market development, branding, and technology development and transfer activities.

Canada Wood Export Program – The Canada Wood Export Program is a national market development program, supporting wood products associations in their efforts to expand offshore export opportunities for Canadian wood products in traditional and emerging markets. More information can be found at http://cfs.nrcan.gc.ca/subsite/canada-wood/home.

North American Wood First Initiative – North American Wood First will work in collaboration with wood products associations in North America, technical institutes, universities, provinces and American states, and support projects to increase the use of wood products in North American non-residential construction (schools, shopping centres, hospitals, etc.).

Value to Wood Program – The Value to Wood Program is a national research and technology transfer program with the purpose of enhancing the productivity and competitiveness of the value-added wood products industry. Additional information can be found at http://www.valuetowood.ca/html/english/index.php.

Strategic Outcome: Natural resource sectors are internationally competitive, economically productive, and contribute to the social well-being of Canadians.

Results Achieved:

Canada Wood Export Program
The Canada Wood Program has continued to develop offshore markets with offices in Shanghai, Beijing, Tokyo, Brussels, London and Seoul. The program has raised the profile of Canadian wood products in the above markets and influenced the development of residential construction codes and standards to accommodate wood use. In Japan, seismic testing of a full scale three-storey traditional post-and-beam house was completed. Shanghai approved the Canadian wood truss re-roofing system, while Korean standards were updated to allow the use of all species of Canadian structural lumber. Canadian wood products and expertise were also used in the reconstruction of public buildings in China devastated by earthquakes in May 2008. The program has also helped increase wood exports (particularly in China and Korea, where Canadian wood exports have increased by 612% and 177% respectively since 2001) and stimulated the establishment of foreign marketing agents for a number of major Canadian wood producers. As well, Canada Wood has provided the framework for Canada's forest sector to take a unified national approach to offshore market development.

North American Wood First Initiative
During 2008/09, the Wood First Program has generated approximately $40 million in new wood sales in North America. Through partners in Quebec, the program influenced the establishment of a 6-storey, 60,000 square foot wood-frame building, the tallest of its kind in Canada. In the United States, the Program has succeeded in convincing builders/clients/authorities to use wood in over 90 non-residential projects in California, the SE US and the mid west as well as reversing a long-standing ban on wood use in Arkansas schools.

Value to Wood Program
The Value to Wood Program, a national research and technology transfer program, funded 26 research projects to support the competitiveness of the value-added wood sector. Industry Advisors funded through the program provided technical assessments involving productivity improvements and cost reductions to over 300 value-added wood firms. These activities supported the competitiveness and productivity of the Canadian wood-manufacturing sector.

Comment(s) on Variance(s): The variance between the total authorities and the actual spending is due to reprofiling per 2009-10 ARLU.

Audit completed or planned:

Name of Transfer Payment Program: Forest Industry Long-Term Competitiveness Strategy – Promoting Forest Innovation and Investment

Start date: 2006-2007

End date: 2009-2010

Description: There are three initiatives in this program: the consolidation of Canada's three forest research institutes, the creation of the Canadian Wood Fibre Centre, and investment in forest innovation. These measures will enhance economic opportunities for Canada's forest sector as a result of increased investment in forest innovation.

Institute Consolidation: FPInnovations – The consolidation of Canada's three forest research institutes (Forintek, FERIC and Paprican) along with NRCan's Canadian Wood Fibre Centre will provide greater efficiency, synergies and strength in innovation and R&D, and will facilitate speaking with a stronger common voice on forest sector issues. Referred to as FPInnovations, this merger will create the world's largest forest research institute. Additional information on FPInnovations can be found at http://www.fpinnovations.ca/.

Canadian Wood Fibre Centre – The Canadian Wood Fibre Centre (CWFC) is an NRCan initiative in collaboration with FPinnovations to increase the economic return from Canada's forest resources. Researchers within the CWFC will work in collaboration with researchers from FPInnovations, or wherever the expertise exists to increase the value of Canadian wood fibre. More information on CWFC can be found at http://cfs.nrcan.gc.ca/subsite/cwfc.

Investments in Forest Sector Innovation – The purpose of this initiative is to direct and harness the expertise of the newly consolidated FPInnovations – in close conjunction with provinces, industry, and academia – to implement new forest innovation investments in transformative technologies relevant to all segments of the forest sector.

Strategic Outcome: Natural resource sectors are internationally competitive, economically productive, and contribute to the social well-being of Canadians.

Results Achieved:

Institute Consolidation: FPInnovations

• Human resource administrative capabilities have been aligned and integrated so as to provide the required expertise to meet project needs and to support administration of human resources (e.g. hiring policies, retention strategies, staff development).
• Financial, project management, and procurement systems have been aligned and integrated to support management decision-making, as well as to provide appropriate and prudent support for operational transactions and basic accounting.
• Legal and practical steps required in creating a new corporate entity and absorbing three existing entities have been completed. This includes all aspects from registration of legal names, logos, and other trademarks, to marketing and communications, transfer of properties and assets, and the very challenging issues of harmonizing pay scales and benefit packages, job descriptions, and pension funds.
• Director and executive level management have been restructured to create a single, enterprise-wide management team. Governance and advisory bodies have been restructured to support a single Board of Directors that represents the interest of the entire forest sector.

Canadian Wood Fibre Centre

• Knowledge has been generated to enhance the capacity to identify standing timber with desirable fibre attributes and to efficiently produce wood fibre with desirable attributes by developing innovative silvicultural methods, genetics and genomics techniques, and methods to forecast wood volume and quality responses at the tree and stand levels.
• A knowledge exchange capacity of 30 Industrial Technology Advisors (Forintek Division); 9 Extension specialists (Feric Division); 7 Knowledge Transfer Specialists (CWFC) was created to ensure that the research results generated by the program were implemented to generate new and improved products and processes.

Transformative Technology Program

• Research led to changes in the BC building code permitting 6 storey wood frame construction creating opportunities to use wood in novel applications.
• A laboratory process to utilize nano crystalline cellulose (NCC) – a derivative from tree fibre – was developed to be used as an input in advanced lightweight high strength composite materials for potential use in the automotive and aerospace industries.
• Demonstration that the lignin and hemi-cellulose components of wood can be converted into value-added products (e.g. the use of lignin as a substitute for black carbon in tires).
• Successful laboratory trials in utilizing forest biomass to develop new bioproducts and energy conservation processes.
• Production of new grades of margin-added fine paper utilizing Canadian thermo-mechanical pulp (TMP).

Comment(s) on Variance(s): The variance between total authorities and the actual spending is due to reprofiling per 2009-10 ARLU.

Audit completed or planned:

Name of Transfer Payment Program: Grant to the University of Calgary for the Institute for Sustainable Energy, Environment and Economy (ISEEE)

Start date: March 25, 2008

End date: March 31, 2012

Description: Funding for ISEEE's Carbon Capture and Storage Research Group. Strategic research that will help to address outstanding issues blocking industry from making investment in carbon capture and storage.

Strategic Outcome: Canada is a world leader on environmental responsibility in the development and use of natural resources.

Results Achieved: As of March 15, 2009, ISEEE has allocated over $400,000 in funding to projects, helping to leverage an additional $1.5 million in funding from industry and other governments. Several projects are underway, with results from a few short-term projects already being reported.

Comment(s) on Variance(s):

Audit completed or planned:

Name of Transfer Payment Program: In support of the efficiency and alternative energy programs

Start date: April 1, 1997

End date: March 31, 2009

Description: This program provides contribution funding for a variety of energy efficiency and alternative energy initiatives.

Strategic Outcome: Environmental Responsibility – Canada is a world leader on environmental responsibility in the development and use of natural resources.

Results Achieved: Key performance information is provided in the DPR in Section II under the Clean Energy program activity. As well, more detailed reporting is provided in the 2008-2009 Report to Parliament under the Energy Efficiency Act, which will be tabled in Parliament in late 2009.

Comment(s) on Variance(s): Treasury Board sets no maximum authority for this program and because it is resourced from A- and B-based departmental funding, there is the possibility to increase spending when greater than anticipated interest and/or opportunities arise, as was the case this year.

Audit completed or planned:

Name of Transfer Payment Program: Newfoundland and Labrador Fiscal Equalization Offset Payments

Start date: 2002

End date: Statutory

Description: To make payments to the province to compensate for part of the reduction in fiscal equalization entitlements that would result from offshore revenues being included in the equalization program.

Strategic Outcome: Natural resource sectors are internationally competitive, economically productive, and contribute to the social well-being of Canadians.

Results Achieved: Payments were made to the province in accordance with the provisions of the Act.

Comment(s) on Variance(s):

Audit completed or planned:

Name of Transfer Payment Program: Payments to the Newfoundland and Labrador Offshore Petroleum Resource Revenue Fund

Start date: 1987

End date: Statutory

Description: To make payments to the province equivalent to amounts received by Canada in relation to offshore activities in accordance with provisions of the Canada Newfoundland Atlantic Accord Implementation Act

Strategic Outcome: Natural resource sectors are internationally competitive, economically productive and contribute to the social well-being of Canadians.

Results Achieved: Payments were made to the province in accordance with the provisions of the Act.

Comment(s) on Variance(s):

Audit completed or planned:

Name of Transfer Payment Program: Payments to the Nova Scotia Offshore Revenue Account

Start date: 1993

End date: Statutory

Description: To make payments to the province equivalent to amounts received by Canada in relation to offshore activities in accordance with provisions of the Canada Nova Scotia Offshore Petroleum Resource Accord Implementation Act.

Strategic Outcome: Natural resource sectors are internationally competitive, economically productive and contribute to the social well-being of Canadians.

Results Achieved: Payments were made to the province in accordance with the provisions of the Act.

Comment(s) on Variance(s):

Audit completed or planned:

Name of Transfer Payment Program: Wind Power Production Incentive Program

Start date: April 1, 2002

End date: March 31, 2007

Description: The WPPI Program was set up to help establish wind energy as a full-fledged competitor in the electricity market by providing – over a period of ten years – a financial incentive of about 1 cent per each kilowatt-hour produced from the installation of 1,000 MW of new wind power capacity in Canada by 2007. The Government of Canada is to provide – over a 10-year period – an incentive averaging 1 cent per each kilowatt-hour produced from a qualifying wind energy project.

Strategic Outcome: Canada is a world leader on environmental responsibility in the development and use of natural resources.

Results Achieved: At year end, 22 wind farms were in operation representing 924 megawatts of new wind energy capacity in Canada and about $315 million in contribution funding over 14 years.

Comment(s) on Variance(s): Wind farms supported under the program had lower than expected production numbers resulting in reduced obligations/lower payments to producers under the provisions of agreements.

Audit completed or planned: During 2008-2009, three audits of recipients were completed under the program.