Departmental Performance Report (2012-2013) - Supplementary Tables

Up-Front Multi-Year Funding

• Clayoquot Biosphere Trust
• The Green Municipal Fund (GMF)
• Nature Conservancy of Canada
• Sustainable Development Technology Canada (SDTC)

Clayoquot Biosphere Trust

Name of recipient: 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 Region Community. The CBT will use the income from the endowment fund to support local research, education and training in the Biosphere Reserve Region.

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

Summary of results achieved by the recipient:

• Implemented Youth Voices, a multimedia camp program designed specifically for high school students and focused on Biosphere-related topics such as stewardship and philanthropy.
• Continued the ongoing implementation of a Board-led, multi-year strategy and fundraising campaign to support the establishment of a permanent Biosphere centre. Implemented a $60,000 call for projects.
• Published Vital Signs, a community health snapshot that identifies successes and challenges for the Clayoquot Sound UNESCO Biosphere Reserve Region. The report was published in October 2012 and is accessible at http://clayoquotbiosphere.org/web/vital-signs/.
• Maintained the CBT/Genus Scholarship Program.
• Implemented a fund development plan to build endowments and secure donations for CBT priorities.

Comments on variances: Not applicable

Significant evaluation findings by the recipient during the reporting year and future plan: Not applicable

Significant audit findings by the recipient during the reporting year and future plan: Not applicable

Link to recipient’s site: www.clayoquotbiosphere.org

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The Green Municipal Fund (GMF)

Name of recipient: The Green Municipal Fund (GMF)

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). The GMF supports grants, loans and loan guarantees to encourage investment in environmental municipal projects. The Government of Canada (GoC) 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 enhance the quality of life of Canadians by improving air, water and soil quality and protecting the climate. Eligible projects may fall into one or more of the following categories: brownfields, energy, transportation, waste, water in the form of sustainable neighbourhoodaction plans, community brownfield action plans, GHG reduction plans, feasibility studies, field tests and capital projects. At least 30% of the value of the Fund Assets^Footnote 1 are dedicated exclusively to supporting brownfield remediation and redevelopment.

The amount of GMF financing available for municipal projects is directly related to the environmental benefits or innovativeness of the project, while taking into account economic and social considerations. Grants are available to cover up to 50% of eligible costs for plans, studies and field tests. A loan for up to 80% of the total and a grant for up to 20% of the loan are available in combination to cover eligible costs for capital projects where environmental, economic and social benefits are deemed exceptional.

As stipulated in the GMF Funding Agreement between the FCM and the GoC, the FCM has created two advisory bodies: the GMF Council and the Peer Review Committee. The GMF 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: 2 from EC, 2 from NRCan and 1 from Infrastructure Canada. All federal members are appointed by the FCM Board of Directors based on recommendations from the Minister of the Environment or the Minister of Natural Resources.

EC peer reviewers provide the GMF and federal Council Members with expert environmental science and technology advice and they evaluate funding proposals.

Strategic outcome: Threats to Canadians and their environment from pollution are minimized.

Summary of results achieved by the recipient: The 2012–2013 GMF Annual Report is not yet available. It is expected to be available in July or August 2013 on the FCM website.

According to the 2011–2012 GMF Annual Report, since the inception of the GMF in 2000, the FCM has committed to disbursing $613 million to support 934 green initiatives across Canada. These GMF-supported initiatives have the potential to create over 32,000 jobs and generate over $3.7 billion in gross domestic product (GDP). Of the 934 initiatives funded to date, 162 have been capital projects; of these capital projects, 70 have been completed and have reported environmental results. Together, these 70 capital projects have reduced annual greenhouse gas (GHG) emissions by approximately 340,000 t per year, reduced air pollutant emissions by almost 450,000 kg per year, diverted over 135,000 t of waste from landfill per year, made over 67 ha of previously unusable land available for use, improved the quality of over 33,000 m³ of soil, treated over 136 million m³ of water per year, and reduced water consumption by over 290,000 m³ annually.

In the absence of the 2012–2013 GMF Annual Report, the GMF’s most recent annual statement of plans and objectives (ASPO), being the 2012–2013 ASPO, provides the expected results for fiscal year 2012–2013.

Grants for sustainable community plans, feasibility studies and field tests

As of March 31, 2009, the FCM has been required to aim to commit $6 to $8 million per year in grants for sustainable community plans, feasibility studies and field tests per year. In fulfillment of this requirement, FCM is aiming to approve $6 million for plans, feasibility studies and field tests in 2012–2013.

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, FCM is required to aim to commit $50 to $70 million per year in loans. As of March 31, 2009, the FCM has been required to aim to commit $5 to $6 million per year in grants to capital projects. In fulfillment of this requirement, FCM is aiming to approve $45 million in loans and $5 million in grants for capital projects in energy, transportation, waste and/or water sectors.

Under the 2005 Funding Agreement, the FCM committed to lending or guaranteeing loans totalling $150 million for brownfield projects by March 31, 2012, and at least 30% of the value of the Fund Assets^Footnote 2 thereafter. In fulfillment of these requirements, the GMF is aiming to approve a total of $40 million for brownfield capital projects in 2012–2013. 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 outlined in the 2012–2013 ASPO included the following:

• Capacity building: Encourage Canadian municipalities to use the knowledge, networks and tools provided by the GMF to develop their internal capacity to achieve their sustainability goals.
• Leveraging partnerships and brokering: Extend the reach of GMF funding and knowledge to achieve greater overall impact.
• Performance measurement: Establish a rigorous and standardized performance measurement system.
• Risk management: Anticipate and manage risks and drivers for the FCM so that the Federation can use GMF resources effectively and strive for continuous improvement.
• Marketing and communications: Establish the GMF as the preeminent catalyst, collaborator and conduit for municipalities and their partners undertaking environmental initiatives.
• Integrated projects: Explore the feasibility and impacts of funding integrated initiatives through a dedicated GMF funding sector.

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 both Ministers, 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 the year 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 value-for-money or performance 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 be conducted every five years from the date of the first review. The next independent performance audit will take place starting in the year 2014.

Link to recipient’s site: www.fcm.ca/home/programs/green-municipal-fund.htm

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Nature Conservancy of Canada

Name of recipient: 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 (NCC) works to ensure the long-term protection of biodiversity by working with private landowners and land 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 any of 4 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 ha of private land for conservation.

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

Summary of results achieved by the recipient: As of the end of March 2013, the Conservancy had drawn the entire $225 million under the federal allocation of the Natural Areas Conservation Program funding available. As of the end of the 5th year of the Natural Areas Conservation Program, the Conservancy and its partners had raised more than $186 million in matching funds and pledges from private and other public sources, and had received donations of conservation lands and easements valued at more than $154 million from private landowners, for a total of over $340 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 356,000 ha of land, through more than 1,017 land transactions. These lands are found in every province and provide habitat for at least 148 species at risk.

Comments on variances: 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, $33.7 million in 2011–2012 and $24.0 million in 2012–2013.

Significant evaluation findings by the recipient during the reporting year and future plan: The fifth annual progress report spanning April 1, 2007, to June 30, 2012, was received from the Conservancy on March 11, 2013, and was deemed to be satisfactory. As per the requirements of the grant, a program evaluation, covering the dates of 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 the 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, 2012, was conducted by Ernst & Young to inform the fifth annual progress report on the program, spanning July 1, 2011, to June 30, 2012. 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, 2012, 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, 2012 and for the year ended June 30, 2012...”. The Conservancy is expecting to expend the remaining funds from the original $225 million federal allocation by October 31, 2013.

Link to recipient’s site: www.natureconservancy.ca

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Sustainable Development Technology Canada (SDTC)

Name of recipient: Sustainable Development Technology Canada (SDTC)

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: December 2017 for the SD Tech Fund^TM and September 2027 for the NGBF

Total funding: $1.09 billion ($590 million for the SD Tech Fund^TM and $500 million for the NGBF) shared equally between Environment Canada (EC) and Natural Resources Canada (NRCan). EC’s share is one half of $1.09 billion, specifically $545 million. (Please note that on June 7, 2012, the Treasury Board Secretariat approved the Funding Agreement Four for the SD Tech Fund^TM, which provides the SD Tech Fund^TM with an additional $40 million, raising the SD Tech Fund^TM from $550 million to $590 million)

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 sponsoring departments for the federal government, EC and NRCan provide federal oversight of SDTC to ensure that it complies with the funding agreements and founding legislation. NRCan is the federal SDTC lead.

SDTC manages two separate funds:

• the SD Tech Fund^TM ($590 million consisting of $550 million in up-front funding and an additional $40 million in multi-year funding) 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: Threats to Canadians and their environment from pollution are minimized.

Summary of results achieved by the recipient:

SD Tech Fund^TM:

• In 2012^Footnote 3, under the SD Tech Fund^TM, SDTC provided $78 million in funding to 24 projects with a total eligible cost of $290 million, including $224 million in leveraged investment. Disbursements to projects in 2012 were $68 million; it is anticipated that disbursements to projects will increase in the upcoming years with more and more projects approaching completion.
• Since its inception, the SD Tech Fund^TM has awarded grants of $592 million for 245 projects with a total project value of $2.1 billion and the potential for 7 to 17 megatonnes of CO₂ emission reductions annually by 2015. As of December 2012, $381 million have been disbursed. A total of 84 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.

NGBF:

• SDTC’s NGBF is currently supporting 3 projects under contract with $2.45 million approved to date. An amount of $114,000 was disbursed for projects in 2012.

* All amounts in this table represent the amounts transferred to SDTC by EC. An equivalent amount was transferred by NRCan.

Comments on variances:

The amount of $62.5 million of 2012–2013 planned spending was not reprofiled to future years because progress in the commercialization of next-generation biofuels projects has been slower than expected worldwide.

The NGBF consists of $200 million in statutory funding and $300 million of appropriated amounts. There are appropriations for the NGBF in the current year and in future years; therefore, please also see “Details of Transfer Payment Programs (TPP) for the NGBF”.

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.

No payments were made to SDTC in 2012–2013. SDTC had on hand the funds that it had estimated as its requirement for the period January 1, 2012 to December 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.

Significant evaluation findings by the recipient during the reporting year and future plan:

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. The first of the three interim evaluations was officially completed by Robinson Research and was submitted to EC and NRCan on November 30, 2012. The interim evaluation concluded that SDTC has established a rigorous due-diligence process and is engaging with existing and potential industry clients.

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, or 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 Funding Agreement Four approved by the Treasury Board Secretariat on June 7, 2012.

Link to recipient’s site: www.sdtc.ca