Supplementary Information Tables

Up-Front Multi-Year Funding

Sustainable Development Technology Canada

Start Date

March 2001 for the Sustainable Development Technology Fund (SD Tech Fund^TM) and April 2007 for the Next-Generation Biofuels Fund (NextGen Biofuels Fund^TM or NGBF)

End Date

June 2015 for the SD Tech Fund^TM and September 2027 for the NGBF (Please note that, on June 7, 2012, Treasury Board approved Funding Agreement Four for the SD Tech Fund^TM, which extends the end date to December 2017)

Total Funding

$1.05 billion ($550 million for SD Tech Fund^TM and $500 million for NGBF) shared equally between Environment Canada (EC) and Natural Resources Canada (NRCan). EC's share is one half of $1.05 billion, specifically $525 million. (Please note that on June 7, 2012, Treasury Board approved Funding Agreement Four for the SD Tech Fund^TM, which provides the SD Tech Fund^TM with an additional $40 million. This increases the total grant to SDTC to $1.09 billion, of which $590 million is for the SD Tech Fund^TM)

Description

SDTC is a not-for-profit foundation created by the Government of Canada, with a series of federal grants that now total to $1.09 billion, as of June 2012. As sponsoring departments for the federal government, EC and NRCan provide federal oversight for SDTC to ensure that it complies with the two funding agreements and the founding legislation. NRCan is the federal SDTC lead.

SDTC manages two separate funds: the SD Tech Fund^TM (consisting of $590 milion in up-front funding, as of June 2012) to provide financial support to projects that have the potential to advance sustainable development, including technologies to address climate change, clean air and water and soil quality issues; and the NGBF ($500 million) to provide financial support towards the establishment of facilities producing next-generation renewable fuels at large demonstration-scale. SDTC-funded projects are active in all major Canadian economic sectors, including energy exploration and production, power generation, energy utilization, transportation, agriculture, forestry and wood products and waste management.

Strategic Outcome(s)

Threats to Canadians and their environment from pollution are minimized.

Summary of Results Achieved by the Recipient

1. SD Tech Fund^TM: In 2011*, under the SD Tech Fund^TM, SDTC approved 25 projects for funding, with SDTC providing $65 million. Disbursements increased from $58 million in 2010 to $82 million in 2011 and, as more projects are completed, disbursements are projected to continue increasing to $90 million - 115 million in 2012 and $85 to 110 million in 2013. In 2011, 22 projects were completed.

   Since its inception, the SD Tech Fund^TM has awarded grants totalling $560 million for 228 projects with a total project value of $2.0 billion and the potential for 7 to 17 megatonnes (Mt) of CO₂ emission reductions annually by 2015. As of December 2011, $313 million had been disbursed. A total of 63 projects have been completed since the Foundation's inception.

   As required by legislation, SDTC submitted the annual report documents on time to EC and NRCan and posted these on the SDTC website, making them available to the public.

2. NGBF: Except for a contribution of $130,000 for front-end development costs to the Enerkem project, no major allocations from the NGBF were made in 2011. NGBF has received four applications for funding and two indications of interest, which would take up the entire fund. Some 24 high-potential candidates are aligned with promising technology rollouts, while more than 100 companies are being tracked.
   
   During an update in April 2012, SDTC reported that it intends to commit the entire NGBF fund by the end of 2013 and to disburse the project funds entirely by the end of 2016.

* Unless specified otherwise, SDTC yearly results and data refer to calendar year as per the SDTC annual reports.

Comments on Variance(s)

All funds to the SD Tech Fund^TM were paid out in prior years. All of the above financial data pertains to the NGBF only and represents EC's share. The $25 million that was appropriated by Parliament for NGBF in 2011–2012 was reprofiled forward to 2013–14. In addition to this $25 million, $37.5 million for NGBF was previously reprofiled from 2010–2011 to 2012–2013.

No payments were made to SDTC in 2011–2012. The NGBF had an opening balance of $63.7 million, as of December 31, 2010. Accordingly, SDTC had on hand the funds that it had estimated as its requirement for the period January 1, 2011, to March 31, 2012. Actual spending by SDTC was significantly less than its estimates in cash flow statements because the anticipated payments to projects have been delayed by the proponents (see also transfer payment programs for SDTC).

Significant Evaluation Findings by the Recipient during the Reporting Year and Future Plan

There were no evaluations in fiscal year 2011–2012. According to the terms of the SD Tech Fund^TM funding agreement, the next evaluation by the recipient is due in 2015. According to the terms of the NGBF funding agreement, three interim evaluations will be performed by an independent third party selected by the Foundation (November 30, 2012, November 30, 2017 and November 30, 2022); a final evaluation is due by September 30, 2027. SDTC's preparations for the November 30, 2012 NGBF evaluation are underway. The federal government may choose to evaluate the Foundation at any time to determine whether it is meeting its objectives.

Significant Audit Findings by the Recipient during the Reporting Year and Future Plan

A standard financial audit was completed as required for the financial data in the SDTC Annual Report. A value-for-money (performance) audit for the SD Tech Fund^TM was completed by the government in fiscal year 2009–2010 and the final report was issued in July 2011.The report was generally positive but identified two issues that were subsequently resolved through the new Funding Agreement Four approved by the Treasury Board Secretariat on June 7, 2012.

Link to Recipient's Site

Sustainable Development Technology Canada

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The Green Municipal Fund

Start Date

February 2000

End Date

In perpetuity

Total Funding

$550 million shared equally between Environment Canada (EC) and Natural Resources Canada (NRCan). EC's share is one half, specifically $275 million.

Description

The Green Municipal Fund (GMF) is a $550-million revolving fund, administered by the Federation of Canadian Municipalities (FCM),that supports grants, loans and loan guarantees to encourage investment in environmental municipal projects. The Government of Canada endowed the FCM with a total of $550 million for this initiative through a series of budget decisions from 2000 to 2005.

The GMF was established to have a positive impact on the health and the quality of life of Canadians by reducing greenhouse gas emissions; improving local air, water and soil quality; and promoting renewable energy by supporting environmental studies and projects within the municipal sector. Eligible projects may fall into one or more of the following categories: energy, water, waste, sustainable transportation, brownfields or integrated community projects. Of the total, $150 million is to be used exclusively to support brownfield remediation and redevelopment.

The amount of GMF financing available to municipalities is directly related to the environmental benefits and/or innovation of the projects undertaken, with grant-loan combinations of up to 80% of eligible costs available for capital projects with exceptional environmental benefits.

The FCM has created two advisory bodies: the GMF Council and the Peer Review Committee, as stipulated in the GMF Funding Agreement between the FCM and the Government of Canada. The Council's role is to assist the FCM Board of Directors, the decision-making body for the GMF, in approving projects proposed by municipalities. The 15-member GMF Council includes five federal members: two from Environment Canada, two from Natural Resources Canada and one from Transport Canada. All federal members are appointed by the FCM Board of Directors based on recommendations from the Minister of the Environment. Environment Canada peer reviewers provide the GMF and federal council members with expert environmental science and clean technology advice. They also review and analyze funding proposals and help evaluate the environmental outcomes of funded projects.

Strategic Outcome(s)

Threats to Canadians and their environment from pollution are minimized.

Summary of Results Achieved by the Recipient

The 2011–2012 GMF Annual Report is not yet available. It is expected to be available later in 2012 on the FCM website.

Based on the 2010–2011 GMF Annual Report, since the inception of the GMF in 2000, the FCM has committed to disbursing $550 million to support 875 green initiatives across Canada. These GMF-supported initiatives have the potential to leverage over $3 billion in economic activity in more than 430 communities. Of the 875 initiatives funded to date, 150 have been capital projects, of which 40 have been completed and have reported environmental results. Together, these 40 capital projects have reduced annual greenhouse gas (GHG) emissions by approximately 175,000 tonnes (t) per year, reduced air pollutant emissions by over 313,000 kilograms (kg) per year, diverted from landfill over 215,000 tonnes (t) of waste per year, made over 67 hectares (ha) of previously unusable land available for use, improved the quality of over 122,000 cubic metres (m³) of soil, treated over 36 million cubic metres (m³) of water per year, and reduced water consumption by over 147,000 cubic metres (m³) annually.

In the absence of the 2011–2012 GMF Annual Report, the GMF's most recent Annual Statement of Plans and Objectives (ASPO) 2011–2012 provides the expected results for fiscal year 2011–2012, which include the following:

Grants for Sustainable Community Plans, Feasibility Studies and Field Tests

As of March 31, 2009, the FCM must aim to commit $6 to $8 million in grants for sustainable community plans, feasibility studies and field tests. In fulfillment of this requirement, FCM was to make a minimum total of $6 million available for feasibility studies, field tests and sustainable community plans in 2011–2012.

Loans and Grants for Capital Projects

The FCM offers a combination of grants and low-interest loans in support of capital projects. Grants are only offered in combination with loans. Under the Funding Agreement, the FCM must aim to commit $50 to $70 million per year in loans. Up to March 31, 2009, the FCM was to commit $7 to $10 million per year in grants to capital projects, and $5 to $6 million thereafter.

In the 2005 funding agreement, the FCM committed to lending or guaranteeing loans totalling $150 million for brownfield projects by March 31, 2012. In fulfillment of these requirements, a minimum total of $ 85 million was to be available for brownfield projects in 2011-2012.

A minimum total of $5 million was to be available in grants for capital projects. This amount must be allocated in proportion to the funding levels targeted for loans. Under the provisions of the Funding Agreement, brownfield projects are not eligible for grants.

Performance Measures

To measure and demonstrate the qualitative, quantitative, short-term and long-term success of the GMF, the planned activities for outlined in the ASPO for 2011–2012 included the following:

• Streamlining operations: Establish the prospect, application, contract and disbursement process so that it is defined by an indicator, a standard timeline and performance reporting, and facilitates access and participation for both rural and urban municipalities and across regions.

• Determining and understanding the needs of the GMF target audience: Focus activities and develop products so that they are aligned with client needs.

• Measuring outcomes: Measure and demonstrate the qualitative, quantitative, short-term and long-term success of the GMF.

• Leveraging for greater impact: Collaborate with stakeholders (e.g. other funding agencies, NGOs, governments, service providers) for mutual benefit and greater overall impact reflected in projects, plans and studies approved for funding by the FCM.

• Building capacity: Deliver knowledge, training and networking activities that leverage the GMF to accelerate the implementation, communication and replication of sustainability initiatives in Canadian municipalities.

• Focused marketing: Design and implement highly targeted, customer-based messaging and sales activities that speak to the direct needs of our priority markets.

• Integrating communications: Ensure that targeted/core priority messages are infused, supported and integrated into all GMF points of touch, both internally and externally.

• Funding brownfield projects: Continue to provide best efforts to achieve $150 million in funding by 2012.

Comments on Variances

All funds to the GMF were paid out in prior years.

Significant Evaluation Findings by the Recipient During the Reporting Year and Future Plan

Section 11.05 of the Funding Agreement stipulates that the FCM agrees to obtain and make public and forward to each minister, for tabling in Parliament, an independent review using recognized evaluation standards on the following timelines: an initial review within six months following March 31, 2009; and subsequent reviews every five years from the date of the first review. The next independent review will take place starting in 2014.

Significant Audit Findings by the Recipient during the Reporting Year and Future Plan

Section 11.07 of the Funding Agreement stipulates that the FCM agrees to have carried out an independent performance (value-for-money) audit to ensure the economy, efficiency and effectiveness with which funds have been used. An initial review must be carried out within six months following March 31, 2009, and subsequent reviews every five years from the date of the first review. The next independent performance audit will take place starting in 2014.

Link to Recipient's Site

Federation of Canadian Municipalities - Green Municipal Fund.

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Nature Conservancy of Canada

Start Date

March 2007

End Date

In perpetuity (until the total funding is expended)

Total Funding

$225 million

Description

The Nature Conservancy of Canada works to ensure the long-term protection of biodiversity by working with private landowners and managers to secure ecologically significant lands that have been identified as priorities for conservation action. To that effect, the Conservancy acquires and preserves land through one of four methods: land purchase, land donations, conservation easements or relinquishment of rights. It also ensures support for the ongoing management and restoration of the habitat it secures. The goal of the program is to secure 200,000 hectares (ha) of private land for conservation.

Strategic Outcome(s)

Canada's natural capital is restored, conserved and enhanced

Summary of Results Achieved by the Recipient

As of the end of March 2012, the Conservancy had drawn $200.9 million under the federal allocation (equivalent to 89% of the total Natural Areas Conservation Program funding available). As of the end of the fourth year, the Conservancy and its partners had raised more than $141 million in matching funds and pledges from private and other public sources, and received donations of conservation lands and easements valued at $150 million from private landowners, for a total of over $291 million. The Conservancy and its partners have already reached the goal to match the federal investment of $225 million over the life of the program. The Conservancy and its partners have now secured more than 330,000 hectares (ha) of land, through more than 907 land transactions. These lands are found in every province and provide habitat for at least 126 species at risk.

Comments on Variance(s)

This conditional grant was fully accounted for in the 2006–2007 fiscal year. Payments made under the grant are based on the Conservancy's fiscal year, which commences on July 1. Instalments under the grant were $70.2 million in 2007–2008, $46.1 million in 2008–2009, $29.3 million in 2009–2010, $21.7 million in 2010–2011 and $33.7 million in 2011–2012.

Significant Evaluation Findings by the Recipient during the Reporting Year and Future Plan

The fourth annual progress report spanning April 1, 2007, to June 30, 2011, was received from the Conservancy on February 16, 2012, and was deemed to be satisfactory. As per the requirements of the grant, a program evaluation, covering the dates from initiation until March, 2012, was submitted on June 20, 2012. The objectives of the evaluation were to measure the overall performance of the Conservancy in achieving the outcomes identified in the Agreement; and to assess the economy, efficiency and effectiveness with which funds have been used. The evaluation found that the program has been successful and several recommendations were directed to the Conservancy for future program implementation in the event that the program is renewed.

Significant Audit Findings by the Recipient during the Reporting Year and Future Plan

A financial audit, dated June 30, 2011, was conducted by Ernst & Young to inform the fourth annual progress report on the program, spanning July 1, 2010, to June 30, 2011. The auditor's report indicated that "...the financial statements present fairly, in all material respects, the financial position of the Fund as at June 30, 2011, and the revenue and expenses in the NCC and Other Qualified Organizations (except Ducks Unlimited Canada) columns in the statement of operations and changes in unrestricted net assets for the period from March 30, 2007 to June 30, 2011 and for the year ended June 30, 2011."

Link to Recipient's Website

Nature Conservancy Canada

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Canadian Foundation for Climate and Atmospheric Sciences

Start Date

February 2000

End Date

March 31, 2012

Total Funding

$110 million. A one-time $60 million grant to be disbursed over six years was received in 2001, and a second grant of $50 million to be disbursed by the end of March 2011 was received in 2004. The Minister of the Environment approved a one-year no-cost extension to CFCAS's mandate, which allowed the Foundation to operate until March 31, 2012.

Description

The Canadian Foundation for Climate and Atmospheric Sciences (CFCAS) was the main funding body for university-based research on climate, atmospheric and related oceanic work in Canada. It was established in 2000 as an autonomous foundation, and in 2001 attained charitable status. In 2009, its mandate was extended from March 2011 to March 2012.

Its purpose was to invest strategically in excellent university-based research on climate and atmospheric sciences to

• provide relevant scientific information to support federal policy making
• generate better knowledge regarding climate change and its impacts on the natural environment
• provide results to help Canada respond to its international environmental commitments
• ensure a supply of skilled human resources to meet future environmental challenges

Strategic Outcome(s)

Canadians are equipped to make informed decisions on changing weather, water and climate conditions.

Summary of Results Achieved by the Recipient

Granting Activities (from CFCAS 2011-2012 Annual Report)

In April 2011, CFCAS awarded additional supplements to the Global Ocean-Atmosphere Prediction and Predictability (GOAPP) and Canadian Network for the Detection of Atmospheric Change (CANDAC) networks to allow them to retain essential personnel or network support functions. A further supplement was awarded to the GOAPP in June 2011. The supplements totalled $38,320.

In March 2012, CFCAS awarded $965,000 in grants to consortia whose work builds on that of previous CFCAS-funded networks and projects. Ten research grants and two outreach grants were awarded. The Foundation's grant fund is now exhausted.

Comments on Variance(s)

n/a

Significant Evaluation Findings by the Recipient during the Reporting Year and Future Plan

n/a

Significant Audit Findings by the Recipient during the Reporting Year and Future Plan

The 2011–2012 auditor's report stated that, in the auditor's opinion, the financial statements present fairly, in all material respects, the financial position of the CFCAS as at March 31, 2012 and the results of its operations and its cash flows for the year ended in accordance with Canadian generally accepted accounting principles. The auditor reported no difficulties during the audit.

Link to Recipient's Site

Canadian Foundation for Climate and Atmospheric Sciences

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Clayoquot Biosphere Trust

Start Date

February 2000

End Date

In perpetuity

Total Funding

$12 million

Description

Creation of an endowment fund for the Clayoquot Biosphere Trust (CBT), the cornerstone of the Clayoquot Sound UNESCO Biosphere Reserve. The CBT will use the income from the endowment fund to support local research, education and training in the Biosphere Reserve region.

Strategic Outcome(s)

Canada's natural environment is conserved and restored for present and future generations.

Summary of Results Achieved by the Recipient

During 2011–2012, the CBT achieved the following results:

• Built a regional network of food access and food security partners;

• Develop school board approved Sustainability Studies Grade 11-12 curriculum to be delivered in local high schools;

• Implemented a Board-led, multi-year fund development plan to support the work of the CBT as a community foundation;

• Granted more than $155,000 to support research, education and community programs through a range of funding streams;

• Developed the framework for a sustainability snapshot that brings together social, environmental, economic, and cultural data to be released in October 2012;

• Increased marketing and promotion of the Biosphere Reserve to raise its profile and secure additional individual and corporate donations for CBT priorities;

• Engaged more than 60 volunteers from throughout the Clayoquot Sound region on projects and committees; and

• Conducted a thorough bylaw review updating the governing documents to provide concise definitions and direction for board and staff.