Financial overview – Estimates of Environment and Climate Change Canada: appearance before the Standing Committee
Overview
Q. Can you provide an overview of ECCC's 2020-2021 Main Estimates?
- Environment and Climate Change Canada is proud to account for its management of public funds, and ensures all relevant legislation, guidelines, regulations and policies are strictly followed.
- The Department's total planned spending for 2020-21 is $2.0 billion and includes $858.3 million in operating expenditures, $89.8 million in capital expenditures, $829.9 million in grants and contributions and $205.0 million in statutory authorities.
- ECCC is the lead federal department for a wide range of environmental issues, and we have strong expertise in areas like science, meteorology, spill management, enforcement and wildlife.
Highlights
- ECCC's planned spending of $2.0 billion represents an increase of $154.9 million or 8% over the 2019-20 Main Estimates. This planned spending increase is mostly due to new funds to support the Climate Action Incentive Fund, permanent salaries based on renewed collective agreements, the National Zero Plastic Waste Strategy and the Low Carbon Economy Fund.
Supplemental
- ECCC's programs focus on minimizing threats to Canadians and their environment from pollution; equipping Canadians to make informed decisions on weather, water and climate conditions; and conserving and restoring Canada's natural environment.
- The Department's programs reflect the interdependence between environmental sustainability and economic well-being.
- ECCC plans its budgetary submissions and spending in light of priorities as stipulated through legislation and parliamentary direction.
2020-21 Planned Spending in comparison to the 2019-20 Main Estimates
Exclusive of Budget 2020 items, the total planned spending for 2020-21 is $2.0B (net of revenues).
The breakdown of the 2020-21 Planned Spending by Vote is:
- the Operating Vote includes:
- $600.3M in salaries
- $258.0M in O&M
- Total: $858.3M*
- the Capital Vote includes:
- $2.8M in salaries
- $87.0M in capital
- Total: $89.8M*
- the Grants and Contributions Vote includes:
- $10.8M in grants
- $819.1M in contributions
- Total: $829.9M*
- statutory items include:
- $89.3K for the Minister of Environment and Climate Change salary and motor car allowance
- $95.7M for contributions to employee benefit plans
- $109.1M in statutory G&Cs to support the Climate Action Incentive Fund.
- The employee benefit plans are a statutory item that includes costs to the government for the employer's matching contributions and payments to the Public Service Superannuation Plan, the Canada and Quebec Pensions plans, Death Benefits and the employment insurance accounts.
- In the 2020-21 Annual Reference Level Update (ARLU), the employee benefit plans was calculated by Treasury Board Secretariat at a rate of 14.8% of salaries.
* Totals may differ due to rounding of figures.
- Approximately $1,983.0 million in total funding is anticipated through the Main Estimates ($1,778.0 million in voted appropriations and $205.0 million in statutory). This excludes funding anticipated through Budget 2020.
- With the funding received in Main Estimates, Environment and Climate Change Canada will provide national leadership to reduce Canadian greenhouse gas and short-lived climate pollutant emissions; engage indigenous people in clean growth and climate change; prevent pollution in ecosystems, water and air; conserve and protect Canada's wildlife and habitat, recover species at risk; and, provide weather and environmental information to make decisions on health and safety.
- Overall (voted and statutory), Environment and Climate Change Canada's total authorities for 2020-21 have a net increase of $154.9 million from the previous year's total Main Estimates.
- This increase in funding is primarily attributable to:
- an increase of $109.1 million to support the Climate Action Incentive Fund
- an increase of $18.9 million related to permanent salaries based on renewed collective agreements
- an increase of $17.3 million supporting the National Zero Waste Plastic Strategy
- an increase of $16.9 million supporting the Low Carbon Economy Fund
- an increase of $11.3 million for Protecting Canada's Nature, Parks and Wild Spaces
- an increase of $8.7 million supporting the Trans Mountain Expansion Project
- an increase of $6.1 million for Adapting Canada's Weather and Water Services to Climate Change
- Offset by:
- a decrease of $21.8 million for the Federal Contaminated Sites Action Plan
- a decrease of $9.4 million for Strong Artic and Northern Communities
- a decrease of $4.0 million for Implementing the Federal Carbon Pollution Pricing System
Annotated copy of 2020-2021 Main Estimates
Department of the Environment
Raison d’être
The Minister of Environment and Climate Change is responsible for this organization.
Environment and Climate Change Canada is the lead federal department for a wide range of environmental issues, including taking action on clean growth and climate change. The Department is also engaged in activities aimed at preventing and managing pollution, conserving nature, and predicting weather and environmental conditions. The Department addresses these issues through various actions including the implementation of the Pan-Canadian Framework on clean growth and climate change, engaging with our strategic partners including provinces, territories and Indigenous peoples, monitoring; science-based research, policy and regulatory development, and through the enforcement of environmental laws.
The Department’s program focus reflects the interdependence between environmental sustainability and economic well-being.
Additional information can be found in Environment and Climate Change Canada’s Departmental Plan.
Organizational Estimates
| - | 2018–19 Expenditures |
2019–20 Main Estimates |
2019–20 Estimates to date1 |
2020–21 Main Estimates1 |
|---|---|---|---|---|
| Budgetary | ||||
Voted
|
||||
1 Operating expenditures
|
819,039,469 | 837,298,834 | 856,843,947 | 858,313,855 |
5 Capital expenditures
|
81,320,972 | 82,322,680 | 82,322,680 | 89,793,534 |
10 Grants and contributions
|
402,863,651 | 787,558,681 | 791,462,951 | 829,881,990 |
– Items voted in prior Estimates
|
0 | 26,345,401 | 26,345,4012 | 0 |
Total Voted
|
1,303,224,092 | 1,733,525,596 | 1,756,974,979 | 1,777,989,379 |
Total Statutory
|
90,130,600 | 94,569,422 | 206,017,525 | 204,984,083 |
| Total Budgetary | 1,393,354,692 | 1,828,095,0183 | 1,962,992,504 | 1,982,973,4623 |
Notes
1 The total budgetary increase from 2019-20 Estimates to date to 2020-21 Main Estimates of $20.0M is mainly due to funding received for the permanent salaries based on renewed collective agreements, as well as an increase in funding for the National Zero Plastic Waste Strategy, the Low Carbon Economy Fund, and for Protecting Canada's Nature, Parks and Wild Spaces. This is offset by a decrease in funding for the Federal Contaminated Sites Action Plan.
2 The decrease in Items voted in prior Estimates of $26.3M is related to the Budget Implementation Votes included in 2019-20 Main Estimates.
3 The total budgetary increase from 2019-20 Main Estimates to 2020-21 Main Estimates of $154.9M is mostly due to new funds to support the Climate Action Incentive Fund, permanent salaries based on renewed collective agreements, the National Zero Plastic Waste Strategy, the Low Carbon Economy Fund, for Protecting Canada's Nature, Parks and Wild Spaces, and for the Trans Mountain Expansion Project. This is offset by a decrease in funding for the Federal Contaminated Sites Action Plan.
2020–21 Main Estimates by Purpose (dollars)
| - | Operating | Capital | Transfer Payments | Revenues and other reductions1 |
Total |
|---|---|---|---|---|---|
| Taking Action on Clean Growth and Climate Change | 86,627,507 | 6,170,712 | 752,495,289 | 0 | 845,293,508 |
| Preventing and Managing Pollution | 321,655,388 | 22,595,453 | 37,209,355 | (21,042,723) | 360,417,473 |
| Conserving Nature | 174,958,738 | 5,085,553 | 142,177,934 | (2,965,012) | 319,257,213 |
| Predicting Weather and Environmental Conditions | 245,689,074 | 55,904,816 | 7,146,913 | (53,258,061) | 255,482,742 |
| Internal Services | 205,986,822 | 37,000 | 0 | (3,501,296) | 202,522,526 |
| Total | 1,034,917,529 | 89,793,534 | 939,029,491 | (80,767,092) | 1,982,973,462 |
Notes
1 The revenues and other reductions represent vote-netted revenues, which include:
- Preventing and Managing Pollution
- Revenues are mainly related to the Joint Canada-Alberta Implementation Plan for Oil Sands and the permit system to control the disposal of non-hazardous substances into the sea and to protect the marine environment.
- Conserving Nature
- Revenues are mainly related to the Migratory Bird Hunting Permits.
- Predicting Weather and Environmental Conditions
- Revenues are mainly related to Hydrometric Agreements for water quantity monitoring services, for aviation weather services provided to NAV Canada, for weather services in support of military operations for the Department of National Defense and for ice and marine monitoring forecasts and services to the Canadian Coast Guard.
- Internal Services
- Internal Services receive a portion of the revenues collected as they support services upon which revenues are received.
Listing of the 2020–21 Transfer Payments (dollars)
| - | 2018–19 Expenditures |
2019–20 Main Estimates |
2020–21 Main Estimates |
|---|---|---|---|
| Grants | |||
| Grants in support of Taking Action on Clean Growth and Climate Change | 1,818,203 | 3,000,000 | 3,000,000 |
| Grant under the Innovative Solutions Canada program | 600,000 | 50,000 | 2,987,7001 |
| Grant for the Implementation of the Montreal Protocol on Substances that Deplete the Ozone Layer | 2,674,630 | 2,800,000 | 2,800,000 |
| Grants in support of the Low Carbon Economy Fund | 0 | 43,750,000 | 2,000,0002 |
| Grants in support of Weather and Environmental Services for Canadians | 25,000 | 44,000 | 44,000 |
| Total Statutory | 0 | 0 | 35,946,3333 |
| Contributions | |||
| Contributions in support of the Low Carbon Economy Fund | 232,755,371 | 554,668,574 | 605,153,5462 |
| Contributions in support of the Canada Nature Fund | 25,717,254 | 101,909,177 | 109,175,597 |
| Contributions in support of Preventing and Managing Pollution | 11,959,428 | 19,494,259 | 32,491,1414 |
| Contributions in support of Conserving Nature | 18,413,989 | 29,358,460 | 29,545,797 |
| Contributions in support of Taking Action on Clean Growth and Climate Change | 15,344,393 | 17,443,265 | 27,235,7655 |
| Assessed contribution to the Commission for Environmental Cooperation (CEC) | 4,363,559 | 3,460,777 | 3,460,777 |
| Contributions in support of the Youth Employment and Skills Strategy | 14,122,500 | 3,069,000 | 3,069,000 |
| Contributions in support of the Impact Assessment and Regulatory System | 800,000 | 2,560,400 | 3,060,400 |
| Contributions in support of Predicting Weather and Environmental Conditions | 480,200 | 3,027,628 | 2,935,128 |
| Assessed contribution to the World Meteorological Organization (WMO) | 2,464,922 | 2,167,785 | 2,167,785 |
| Assessed contribution to the Convention on Wetlands of International Importance (Ramsar Convention) | 200,000 | 206,140 | 206,140 |
| Assessed contribution to the Minamata Convention on Mercury | 171,469 | 200,000 | 200,000 |
| Assessed contribution to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) | 235,025 | 190,000 | 190,000 |
| Assessed contribution to the Organisation for Economic Co-operation and Development (OECD) | 111,753 | 121,214 | 121,214 |
| Assessed contribution to the International Network for Bamboo and Rattan (INBAR) | 35,899 | 38,000 | 38,000 |
| Total Statutory | 0 | 0 | 73,201,1683 |
Listing of Statutory Authorities (dollars)
| Budgetary | 2018–19 Expenditures |
2019–20 Estimates to date |
2020–21 Main Estimates |
|---|---|---|---|
| Climate Action Support Payments (Climate Action Incentive Fund) (Budget Implementation Act, 2019, No. 1 - S.C. 2019, c. 29) | 0 | 109,147,502 | 109,147,5013 |
| Contributions to employee benefit plans | 88,915,538 | 96,782,323 | 95,747,282 |
| Minister of Environment and Climate Change – Salary and motor car allowance (Salaries Act and Parliament of Canada Act) | 86,000 | 87,700 | 89,300 |
Notes
1 Increase in grants is due to a transfer from existing contributions to grants to meet program requirements, as well as new funding for the National Zero Plastic Waste Strategy.
2 Decrease in grants is due to a transfer from existing grants to contributions in order to meet the Low Carbon Economy Fund program requirements. Increase for the contributions is mainly due to the reallocation of funds between years.
3 Total Statutory is related to the Climate Action Incentive Fund payments announced in Budget 2019. The statutory funding totalling $109.1M will be used to return a portion of the fuel charge revenues to Saskatchewan, Manitoba, Ontario, and New Brunswick by providing funding support to small and medium-sized enterprises, municipalities, universities, colleges, schools, hospitals, Indigenous communities and not-for-profit organizations to reduce energy usage, achieve cost savings while reducing greenhouse gas emissions. This authority was obtained through the Budget Implementation Act, 2019, No.1 in order to allow the implementation of the program in early 2019-20.
4 The increase in contributions is due to new funding for the National Zero Plastic Waste Strategy and Trans Mountain Expansion Project.
5 The increase in contributions is due to new funding for Clean Growth and Climate Change Mitigation and to a reallocation of existing funds to support the Pan Canadian Framework Expert Panel.
Annotated copy of 2019-2020 Supplementary Estimates B
Environment and Climate Chanage Canada
Organization Summary (dollars)
| - | Authorities to date | These Supplementary Estimates - Transfers2 | These Supplementary Estimates - Adjustments1 | Proposed Authorities to date |
|---|---|---|---|---|
| Budgetary | ||||
| Voted | ||||
| 1b Operating expenditures | 877,210,150 | 2,969,851C | 16,575,262A | 896,755,263 |
| 5 Capital expenditures | 109,541,298 | 0 | 0 | 109,541,298 |
| 10b Grants and contributions | 787,708,681 | (466,230)D | 4,370,500B | 791,612,951 |
| 15 Canadaʼs Marine Safety Response | 467,882 | 0 | 0 | 467,882 |
| 20 Ensuring Better Disaster Management Preparation and Response | 198,215 | 0 | 0 | 198,215 |
| 25 Implementing a Federal Carbon Offset System | 508,309 | 0 | 0 | 508,309 |
| 30 Strong Arctic and Northern Communities | 0 | 0 | 0 | 0 |
| Total Voted | 1,775,634,535 | 2,503,621 | 20,945,762 | 1,799,083,918 |
| Total Statutory | 95,381,753 | 0 | 111,448,103E | 206,829,856 |
| Total Budgetary Expenditures | 1,871,016,288 | 2,503,621 | 132,393,865 | 2,005,913,774 |
Note: Additional details by organization are available on the Treasury Board Secretariat website.
Explanation of Requirements (dollars)
| - | Vote No. | Amount ($) |
|---|---|---|
| Budgetary | ||
| Voted Appropriations | ||
| Funding to administer the Climate Action Incentive Fund | Vote 1b | 9,464,152A |
| Funding to strengthen environmental protections and address concerns raised by Indigenous groups regarding the Trans Mountain Expansion Project (horizontal item) | Vote 1b | 2,252,849A |
| Vote 10b | 3,670,500B | |
| Total | 5,923,349 | |
| Funding to reduce plastic pollution (horizontal item) | Vote 1b | 4,027,046A |
| Vote 10b | 700,000B | |
| Total | 4,727,046 | |
| Funding for the Genomics Research and Development Initiative (horizontal item) | Vote 1b | 769,100A |
| Reinvestment of royalties from intellectual property | Vote 1b | 62,115A |
| Total Voted Appropriations | 20,945,762 | |
| Total Statutory Appropriations | 111,448,103 | |
| Transfers | ||
| Transfers from Other Organizations3 | ||
| From the Department of Employment and Social Development to various organizations for the Youth Employment and Skills Strategy | Vote 1b | 292,660C |
| Vote 10b | 11,060,000D | |
| Total | 11,352,660 | |
| From Impact Assessment Agency of Canada to the Department of the Environment for operating pressures | Vote 1b | 2,000,000C |
| From the Department of Fisheries and Oceans to various organizations to respond to Indigenous concerns on the overall health of the Salish Sea | Vote 1b | 454,760C |
| From the National Research Council of Canada to various organizations for genomics research and development | Vote 1b | 313,000C |
| From the Department of Agriculture and Agri-Food to the Department of the Environment to support greening growth in the agriculture and agri-food sector | Vote 10b | 250,000D |
| From Parks Canada Agency to the Department of the Environment for the Assembly of First Nations Elders Council | Vote 10b | 40,000D |
| From the Department of Fisheries and Oceans to the Department of the Environment for the Aboriginal Fund for Species at Risk | Vote 10b | 27,500D |
| Internal Transfers4 | ||
| Internal reallocation of resources from contributions ($1,062,300) to grants in support of the Innovative Solutions Canada program | Vote 10b | 0D |
| Internal reallocation of resources to support plastics challenges and the Global Commission on Adaptation | Vote 1b | (1,349,059)C |
| Vote 10b | 1,349,059D | |
| Total | 0 | |
| Internal reallocation of resources from contributions to operating for the Low Carbon Economy Fund | Vote 1b | 2,509,999C |
| Vote 10b | (2,509,999)D | |
| Total | 0 | |
| Transfers to Other Organizations5 | ||
| From the Economic Development Agency of Canada for the Regions of Quebec and the Department of the Environment to the Department of Foreign Affairs, Trade and Development for a grant that supports the Secretariat of the United Nations Convention on Biological Diversity | Vote 10b | (23,040)D |
| From various organizations to the Department of Foreign Affairs, Trade and Development for the North American Platform Program Partnership | Vote 1b | (160,000)C |
| From the Department of the Environment to the Department of Fisheries and Oceans for projects under the Canada-United States Great Lakes Water Quality Agreement | Vote 1b | (1,091,509)C |
| From the Department of the Environment to the Department of Natural Resources for the 50 Million Tree Program under the Low Carbon Economy Fund | Vote 10b | (4,911,000)D |
| From the Department of the Environment to the Department of Natural Resources for a contribution to the City of Brampton, Ontario for an electric bus demonstration and integration trial | Vote 10b | (5,748,750)D |
| Total Transfers | 2,503,621 | |
| Total Budgetary | 134,897,486 | |
Notes
1 The Adjustments totalling $132.4M includes: A and B There is an increase of $16.6M in Vote 1 Operating funds and $4.4M in Vote 10 G&Cs related to new Voted appropriations to administer the Climate Action Incentive Fund, to support the Trans Mountain Expansion Project, to reduce plastic pollution, to support the genomics research and development initiative and for the reinvestment of royalties from the intellectual property. E In addition, there is $111.4M in statutory funding: $109.1M to support the Climate Action Incentive Fund payments and $2.3M related to the Employee Benefit Plans.
2 The Transfers totalling $2.5M includes: C There is an increase of $3.0M in Vote 1 Operating funds related to transfers and D a reduction of $0.5M in Vote 10 G&Cs. The Transfers includes various transfers from other organizations, internal transfers and transfers to other organizations.
3 The Transfers from Other Organizations include: $11.4 from Employment and Social Development Canada for the renewed Youth Employment and Skills Strategy; $2M from the Impact Assessment Agency within my portfolio for operating pressures; and other smaller transfers to support various projects and initiatives.
4 Internal Transfers include: An internal reallocation of existing funds within the G&Cs Vote to support the Innovation Solutions Canada; an internal reallocation of $1.3M in existing funds from Operating to G&Cs to support plastic challenges and the Global Commission on Adaptation; and an internal reallocation of existing funds of $2.5M from G&Cs to Operating to meet the Low Carbon Economy Fund program requirements.
5 Transfers to Other Organizations include: $5.8M to Natural Resources Canada for a contribution to the City of Brampton for an Electric Bus Demonstration and Integration Trial; $4.9M to Natural Resources Canada for the 50 Million Tree Program under the Low Carbon Economy Fund; $1.1M to the Department of Fisheries and Oceans for projects under the Canada-United States Great Lakes Water Quality Agreement; and other smaller transfers to support various initiatives.
Listing of Transfer Payments (dollars)
| Estimates to date | These Supplementary Estimates | Revised Estimates | |
|---|---|---|---|
| Grants | |||
| Grant under the Innovative Solutions Canada program | 50,000 | 1,412,300A | 1,462,300 |
| Contributions | |||
| Contributions in support of the Youth Employment and Skills Strategy | 3,069,000 | 11,060,000B | 14,129,000 |
| Contributions in support of Preventing and Managing Pollution | 19,494,259 | 4,369,559C | 23,863,818 |
| Contributions in support of Taking Action on Clean Growth and Climate Change | 17,443,265 | 1,290,000D | 18,733,265 |
Listing of Statutory Authorities - Budgetary (dollars)
| Budgetary | Authorities to date | These Supplementary Estimates | Proposed Authorities |
|---|---|---|---|
| Climate Action Support Payments (Climate Action Incentive Fund) (Budget Implementation Act, 2019, No. 1 - S.C. 2019, c. 29) | 0 | 109,147,502E | 109,147,502 |
| Contributions to employee benefit plans | 95,294,053 | 2,300,601 | 97,594,654 |
Notes
A The increase of $1.4M is related to an internal reallocation of funds from Contributions to Grants of $1.1M as well as an increase in new funding of $0.3M to reduce plastic pollution.
B The increase of $11.1M is related to a transfer of funds from Employment and Social Development for the renewed Youth Employment and Skills Strategy.
C The increase of $4.4M is related to an increase in new funding of $3.7M to strengthen environmental protections and address concerns raised by Indigenous groups regarding the Trans Mountain Expansion Project; increase funding of $0.4M to reduce plastic pollution; and internal reallocation of $0.3M to support plastics challenges and the Global Commission on Adaptation.
D The increase is due to an internal reallocation of funds of $1M to support plastics challenges and the Global Commission on Adaptation; transfer of $0.3M from Agriculture to support greening growth in the agriculture and agri-food sector; and a transfer of $0.1M from Parks Canada for Assembly of First Nations Elders Council.
E $109.1M is related to the payments in support of the Climate Action Incentive Fund announced in Budget 2019.
2019-20 Supplementary Estimates (B)
- Environment and Climate Change Canada is proud to account for its management of public funds, and to ensure that all relevant legislation, guidelines, regulations and policies are strictly followed.
- These Supplementary Estimates (B) allow us to update our budget allocations and adjust our Main Estimates to deliver on Programs that are important to Canadians.
- The department’s submission amounts to a net increase of $134.9 million, bringing the department’s total authorities to $2.0 billion. This update includes:
- Funding of $9.5 million to administer the Climate Action Incentive Fund (Budget 2019);
- Funding of $5.9 million to strengthen environmental protection and address concerns raised by Indigenous groups regarding the Trans Mountain Expansion Project;
- Funding of $4.7 million to reduce plastic pollution;
- Funding of $0.8 million to fund the Genomics Research and Development Initiative;
- Increase in statutory funding of $111.4 million including an amount of $109.1 million for the Climate Action Support Payments (Budget 2019) and $2.3 million related to the increase in employee benefit plans for the initiatives included in these Supplementary Estimates (B); and
- Funding of $0.1 million for the reinvestment of royalties from intellectual property.
Supplementary Estimates B - voted appropriations (description of items)
Funding to administer the Climate Action Incentive Fund ($9,464,152)
In order to establish the Climate Action Incentive Fund (CAIF), the Treasury Board Secretariat approved $229.9 million to ECCC for 2019-20. As announced in Budget 2019, the grants and contributions portion of the CAIF is Statutory funding to support efforts to reduce energy usage that will lead to cost savings and reductions in greenhouse gas emissions.
Operation funding received through the 2019-20 Final Supplementary Estimates allow ECCC to administer the Climate Action Incentive Fund, including signing all contribution agreements and processing payments, and managing day-to-day operations of the program. The statutory funding consist of $218.3 million that will be evenly split between 2019-20 and 2020-21, which will be used to return a portion of the fuel charge revenues to Saskatchewan, Manitoba, Ontario, and New Brunswick by providing funding support to small and medium-sized enterprises, municipalities, universities, colleges, schools, hospitals, Indigenous communities and not-for-profit organizations to reduce energy usage, achieve cost savings while reducing greenhouse gas emissions.
Funding to strengthen environmental protection and address concerns raised by Indigenous groups regarding the Trans Mountain Expansion Project and for Post-Decision Implementation ($5,923,349)
NRCan, DFO, Transport Canada (TC) and ECCC collectively sought funding for $598.0 million over 6 years and $3.1 million ongoing, beginning in 2019-20. Funding will be used to implement accommodation measures to address outstanding concerns of Indigenous groups raised through the Government of Canada’s Phase III consultations on the Trans Mountain Expansion Project (TMX) and execute a post-decision implementation strategy for TMX, while also supporting the Government’s broader Reconciliation agenda. The measures address Indigenous groups’ concerns including potential Project-related impacts and potential cumulative effects related to the Project, other developments in the region, climate change, and other natural processes (e.g. wildfires).
As part of this submission, ECCC sought a total of $53.7 million starting in 2019- 20, including $23.3 million in Operating funds and $29.4 million in Contributions. Operating funding received through the 2019-20 Final Supplementary Estimates allow ECCC to support the implementation of accommodation measures and responses to the National Energy Board’s Recommendations for the Trans Mountain Expansion Project and for Post-Decision Implementation within the Department of the Environment. The contributions funding will allow ECCC to provide funding for the Terrestrial Cumulative Effects Initiative which will be administered under ECCC’s terms and conditions for Grants and Contributions in support of Preventing and Managing Pollution.
Funding to reduce plastic pollution (horizontal item) ($4,727,046)
Environment and Climate Change Canada (ECCC), Fisheries and Oceans Canada (DFO), Public Services and Procurement Canada (PSPC) and Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC) collectively sought funding for $59.1 million over 3 years, beginning in 2019-20, to deliver on Federal Leadership Towards Zero Plastic Waste in Canada. Implementation of the initiative will allow the Government to initiate the capacity and delivery mechanisms to facilitate horizontal policy coordination, foundational work, and the delivery of targeted programs, which represent the start of federal contributions to the domestic strategy for zero plastic waste, and lay the foundation for a broader circular economy.
As part of this submission, ECCC received funding of $36.2 million over 3 years, beginning in 2019-20, to implement the Federal Leadership Towards Zero Plastic Waste. ECCC also received the authority to increase the grant entitled “Grant under the Innovative Solutions Canada program” by $350 thousand in 2019-20; $1.3 million in 2020-21; and, $1.0 million in 2021-22 to implement the “Federal Leadership Towards Zero Plastic Waste in Canada” initiative.
Operating funding received through the 2019-20 Final Supplementary Estimates allow ECCC to lead the implementation of the horizontal initiative that would initiate action and develop measures towards addressing gaps in six key areas or pillars, setting the foundation for a transition to zero plastic waste in the longer term. The contributions funding will be used to develop industry initiatives and voluntary agreements to reduce plastic waste. It will also be used to support academic researchers in conducting research projects and will support community prevention and clean-up activities. The grants funding will be used to support Canadian Plastic Innovation Challenges by funding Canadian SMEs to deliver proof-of-concept and prototype projects to address challenges in plastic waste and promote a circular plastics economy.
Funding for the Genomics Research and Development (R&D) Initiative (horizontal initiative) ($769,100)
Eight departments collectively sought funding for $19.9 million ongoing, beginning in 2019-20, to renew funding which will allow science-based federal departments and agencies to maintain core genomics R&D capacity to continue delivering genomics-based solutions to issues that are important to Canadians.
As part of this submission, ECCC sought funding of $0.8 million ongoing, beginning in 2019-20 to maintain core genomics research activities.
Funding received through the 2019-20 Final Supplementary Estimates allow ECCC to support the continued implementation of the Strategic Technology Applications of Genomics in the Environment (STAGE) program.
Reinvestment of royalties from intellectual property
ECCC conducts basic scientific research in a number of fields related to its mandate. Efforts to improve our weather prediction software, our devices for sampling air and water, our methods for extracting pollutants from waste streams, and our training materials related to environmental initiatives such as Green House Gas Verification have generated useful discoveries of commercial interest. The Department licenses such discoveries to private sector entities so that they can be exploited to their full potential thereby benefiting all Canadians.
The Department is authorized to receive, through the Final Supplementary Estimates, an annual amount equal to all revenues arising from the licensing of Crown-owned intellectual property which were remitted to the Consolidated Revenue Fund in the previous fiscal year.
The funding sought of $62K reflects royalties remitted to the Consolidated Revenue Fund (CRF) in 2018-19 and that will be redistributed to the Program that generated these funds so that they may pay any applicable Inventor Awards and support their ongoing research efforts.
Transfers from other Departments
Transfer from the Department of Employment and Social Development to various organisations for the Youth Employment and Skills Strategy ($11,352,660)
Employment and Social Development Canada (ESDC) and the ten partner departments, agencies, and Crown Corporations sought funding to amend the horizontal Youth Employment Strategy Terms and Conditions to reflect the modernization of the Youth Employment Strategy. Among the ten partner departments, ESDC has committed to transfer total funding of $11.4 million in 2019-20 to ECCC in order to align with a modernized Youth Employment and Skills Strategy.
ECCC’s Youth Employment and Skills Strategy program will expand its reach to include youth facing barriers to find and keep a job related to the green economy. More specifically, the program will target under-represented youth in specific areas (e.g., women in STEM, youth in remote communities, persons with disabilities) and explore reaching youth early to encourage interest in science by expanding eligibility criteria for youth (e.g., lowering the age criterion by removing post- secondary education requirement).
A transfer of $11.4 million from ESDC to ECCC is being sought in the 2019-20 Final Supplementary Estimates 2019-20 to support the modernized Youth Employment and Skills Strategy.
Transfer from Impact Assessment Agency of Canada to the Department of the Environment for operating pressures ($2,000,000)
In order to help reduce ECCC’s financial operating pressures for 2019-20, Impact Assessment Agency of Canada (IAAC) is in agreement to transfer $2M in operating funds to ECCC through the final 2019-20 Supplementary Estimtes.
ECCC is the lead department for a wide range of environmental issues, which continue to be a top priority of this government. In this context, ECCC is facing emerging priorities and financial pressures, which contributes to a very tight financial situation for 2019-20. ECCC has currently funded over $16.1M in Operating pressures for 2019-20 and is currently facing an additional $7.4M in non discetionary operating pressures to fund for 2019-20. These pressures are:
- $2.3M related to the Public Prosecution Services Canada (PPSC) costs. Public Prosecution Services Canada (PPSC) services are essential to ECCC and there is no alternative to these services. Enforcement Officers (EOs) have the responsibility to determine which tool to use to seek compliance and remedy. In certain cases, prosecution is the appropriate response to non- compliance because of its specific and general deterance effect. EOs consult with prosecutors from PPSC on an ongoing basis for advice during the course of investigations on issues such as obtaining production orders, obtaining and executing search warrants, interviewing and taking statements from witnesses and suspects and disclosure rules. For 2019-20, ECCC is facing a non-discretionnary pressure of $2.3M to pay PPSC for these services.
- $3.3M related to increased costs for Litigation Services from Justice Canada. The bulk of these increased costs are directly attributable to increased in billing hours because of numerous court challenges and litigation relating to the Greenhouse Gas Pollution Pricing Act and a new Federal Court action challenging the government’s actions regarding climate change. ECCC is bearing these costs alone in 2019-20 but is seeking to share costs with Finance Canada in 2020-21.
- $1.8M related to the HR Pay Modernization and Pheonix related issues. Since the implementation of Phoenix in February 2016, ECCC has dealt with increased requests from the PSPC Pay Centre and ECCC employees to assist them in obtaining the compensation services that they require. In light of the Government of Canada’s efforts to support the stabilization of the Phoenix Pay System and, under the direction of the ECCC Deputy Minister, ECCC established in spring of 2018 a dedicated Pay Liaison Directorate. Also, since June 2018, ECCC is being served by a pod; the new PSPC service delivery model. Although considerable engagement and efforts have been made by ECCC and PSPC to resolve pay issues, the overall queue of pay cases has only slightly decreased to date. The $1.8M is in addition to $2.2M already funded in pressures for 2019-20. The increase costs are non-discretionnary as the are meant to support employees and to respond to their critical pay issues.
Note that in recent years, such as in the Supplementary Estimates 2017-18, ECCC transferred $1M in operating funds to the Canadian Environmental Assessment Agency (CEAA) to help ease operating pressures. Central agencies were supportive of the approach to temporarily reallocate authorities from within the Minister of Environment’s Portfolio to address temporary pressures.
Furthermore, in the Supplementary Estimates 2016-17, ECCC transferred $1M in operating funds to CEAA for the Participant Funding Program. At that time, CEAA had identified a funding pressure after receiving and reviewing the requests from the Participant Funding Program against the Program’s initial funding allocation. This transfer was to address unforeseen budgetary pressures related to the CEAA’s Participant Funding Program. At the time, central agencies had requested that ECCC explore options to temporarily reallocate authorities from within the Minister of Environment’s Portfolio to address this pressure.
Transfer from the Department of Fisheries and Oceans to the Department of the Environment to respond to Indigenous concerns regarding overall health of the Salish Sea ($454,760)
For ECCC to support DFO in the implementation of a regional cumulative effects management plan. ECCC’s involvement will focus on research and monitoring of air and water quality which will leverage data and research networks of existing ECCC and Government of Canada initiatives and programs. The plan includes the development and enhancement of environmental baseline information related to air and water quality to determine the overall health of the Salish Sea, which will aid in understanding how the effects of development projects can accumulate and negatively affect the environment.
As part of the 2019-20 Final Supplementary Estimates, a transfer of $455K from DFO to ECCC’s Vote 1 – Operating Vote is being sought to support DFO with specific cumulative impacts activities.
Transfer from the National Research Council of Canada to the Department of the Environment for collaborative genomics research and development ($313,000)
In February 2019, Treasury Board approved the renewal of the Genomics Research & Development Initiative (GRDI) on an ongoing basis, with funding to be sourced from the fiscal framework. The GRDI is administrated by the National Research Council of Canada (NRC), which manage the funding envelope for collaborative activities.
On March 29, 2016, the GRDI ADM Coordinating Committee has formally approved a five-year Project Management Plan (2016-2021) of the shared priority EcoBiomics project. In accordance to the budgetary cost estimates detailed in the Project Management Plan, NRC has committed to transfer $313K in 2019-20 and $411K in 2020-21 to ECCC. The funds are planned to be transferred through the 2019-20 Final Supplementary Estimates and the 2020-21 Annual Reference Level Update.
Transfer from the Department of Agriculture and Agri-Food to the Department of the Environment to support Greening Growth in the Agriculture and Agri-Food Sector ($250,000)
ECCC is agreeing to undertake the Greening Growth in the Agriculture and Agri- Food project on behalf of Agriculture and Agri-Food Canada (AAFC) to provide ECCC with the necessary funds to amend its current Economics and Environmental Policy Research Network (EEPRN) agreement for covering the cost of incremental analytical work, to be performed by Smart Prosperity Institute (SPI) and The University of Ottawa (UO).
A transfer of $250K from AAFC’s Vote 1 - Operating funds to ECCC’s Vote 10 - Grants and Contributions is requested as part of the 2019-20 Final Supplementary Estimates to carry out the research. The research will explore how non-regulatory policy instruments such as nudges and other behavioural economics instruments could be developed and used in the Canadian context to better enable the Agriculture and Agri-Food sector to help meet Canada’s climate commitments under the Paris Accord and the Pan-Canadian Framework on Clean Growth and Climate Change.
Transfer from Parks Canada Agency to the Department of the Environment for the Assembly of First Nations the Elders Council ($40,000)
A project proposal of $640K in funding to support the Assembly of First Nations Elders Council in developing a draft Indigenous Knowledge Systems policy was approved by the Department and will facilitate:
- Sustained Departmental engagement with the Elders Council on a variety of cross-cutting issues within the Environment portfolio;
- Enhanced regional representation on the Elders Council; and
- Development of a draft Indigenous Knowledge Systems policy.
The Canadian Environmental Assessment Agency (CEAA) contributed $100K in 2018-19 to the Contribution Agreement, and Parks Canada (PC) contributed a further $100K ($60K in 2018-19, $40K in 2019-20). The remaining funds is sourced from ECCC’s Grants and Contributions (G&C) Vote.
The funding in 2018-19 was transferred in the 2018-19 Supplementary Estimates (B) and the remaining $40K in funding to be tansfered for 2019-20 from PC to ECCC is being sought in the 2019-20 Final Supplementary Estimates.
Transfer from the Department of Fisheries and Oceans to the Aboriginal Fund for Species at Risk ($27,500)
The Aboriginal Fund for Species at Risk (AFSAR) program was designed to help facilitate Aboriginal participation in Species at Risk Act (SARA) implementation. The program was established in 2004 with ECCC originally administering all agreements. Since 2007-08 DFO administers AFSAR agreements with Aboriginal recipients targeting aquatic species.
For 2019-20, $2,386,050 is available for AFSAR Species at Risk Stream projects. Of this amount, $998,925 is already committed through 24 previously approved multi-year projects. One of these existing projects is a shared project. DFO has confirmed that they will transfer $27,500 to ECCC as per the terms of the existing Interdepartmental Letter of Agreement to cover the aquatic portion of the existing shared project.
Internal Transfers
Internal reallocation of resources to support Plastics Challenges and the Global Commission on Adaptation
Given the number and high value of the Grants and Contributions pressures presented in 2019-20, ECCC is seeking to do a Vote transfer of $1.3 million from Vote 1 to Vote 10 under contributions to give flexibility in the Vote 10 to absorb these emerging pressures.
Internal reallocation of resources from contributions to operating for the Low Carbon Economy Fund
Budget 2016 provided total new funding of $2 billion over two years, beginning in 2017-18, for the Low Carbon Economy Funds (LCEF). Budget 2017 revised the funding profile to span over five years. Following TB approval, the Minister officially announced the LCEF on June 15, 2017.
Subsequently, following requests to reprofile funding, as well as resources being reallocated to other areas, the current Program profile is as follows: $7.8 million in 2017-18, $463.7 million in 2018-19, $594.4 million in 2019-20, $451.0 million in 2020-21, $307.9 million in 2021-22, $10.0 million in 2022-23, and $10.0 million in 2023-24. Ontario was notionally allocated $420 million through the Leadership Fund.
In mid-2018, following the election of a new provincial government, Ontario unilaterally cancelled all previously approved programming included in the funding agreement. In response to the cancellation, ECCC adopted a revised approach to use approximately $244 million of the $420 million Ontario Leadership Fund allocation to deliver programming directly to Ontarians.
A total reallocation of $5.42 million over 2 years from ECCC Vote 10 – Grants and contributions to Vote 1 – Operating expenditures was approved by Treasury Board in order to support the delivery of the Ontario portion of the Low Carbon Economy Leadership Fund and fund program administrative costs.
As part of the 2019-20 Final Supplementary Estimates, the Department is seeking to transfer an amount of $2.5 million from its existing Contributions in support of the Low Carbon Economy Fund to Operating Vote 1 – Operating Expenditures.
Transfers to other organizations
Transfer from the Department of the Environment to the Department of Foreign Affairs, Trade and Development for Canada’s Annual Host-Country Grant to the Secretariat of the United Nations Convention on Biological Diversity ($23,040)
Montreal is host to the Secretariat of the United Nations Convention on Biological Diversity (SCBD), with annual grants provided by the Government of Canada and Quebec. The grant supports the work of the Secretariat for allowing greater participation to Canadian scientists and universities, which provides economic benefits to Montreal, Quebec and Canada. The first terms and conditions covered the rental costs tied to the duration of the SCBD’s lease for the period of 2014-15 to September 30, 2019.
After an extensive negotiation with the Executive Secretary of the SCBD, Global Affairs Canada (GAC) officials have arrived at a new agreement that is acceptable to the SCBD and the current landlord. Since the current grant arrangement expired on September 30, 2019, GAC has agreed to the new arrangement from 2019-20 to 2029-30 and has proposed to pay for this commitment by maintaining the current cost-sharing formula amongst federal departments and agencies. For ECCC this represents 6.25% of the total cost, or approximately $95K per year. This is an increase of approximately $20K per year.
A transfer of $23K in Vote 10 - Contributions from ECCC to GAC is included in the 2019-20 Final Supplementary Estimates. This amount represent the increased amount required from ECCC for 2019-20 as per the new agreement. ECCC had already provided GAC with $54K for 2019-20.
Transfer from the Department of the Environment to the Department of Foreign Affairs, Trade and Development in support of the North American Platform Program (NAPP) Partnership ($160,000)
Beginning April 1, 2019, and until March 31, 2022, ECCC joined the North American Platform Program (NAPP) Partnership to further strengthen a whole-of- government approach to pursuing Government of Canada priorities in the U.S. and Mexico. The Participants and all other Federal Government partners that chose to take part in the NAPP met in early 2019 to negotiate a Governance Framework agreement to apply on April 1, 2019.
ECCC committed to spend $350K per fiscal year to support NAPP objectives. Of this amount, ECCC committed to transfer $160K per year to Global Affairs Canada.
The funds are planned to be transferred through Supplementary Estimates for 2019-20; through the Annual Reference Level Update for 2020-21 and 2021-22.
Transfer from the Department of the Environment to the Department of Fisheries and Oceans to continue the environmental restoration of key aquatic areas of concern identified under the Canada-United States Great Lakes Water Quality Agreement ($1,091,509)
The partnership between the DFO is part of a multi-department strategy to bring forward the next phase of the Great Lakes Action Plan. This transfer from ECCC to DFO in the 2019-20 Final Supplementary Estimates would be used to improve the ecological integrity of the Great Lakes ecosystem by continuing the environmental restoration of key aquatic areas of concern such as Hamilton Harbour and the Bay of Quinte. DFO would be conducting habitat research and assess fish population in support of the rehabilitation of the areas of concern.
Transfer from the Department of the Environment to the Department of Natural Resources through the Low Carbon Economy Fund for the 50 Million Tree Program ($4,911,000)
ECCC and NRCan have a history of collaborating in the delivery of programs, and share responsibility for delivering on each other’s mandate. ECCC will commit a portion of unallocated Ontario Leadership Fund resources of the Low Carbon Economy Fund to support NRCan to enter a funding agreement with Forests Ontario to deliver the 50 Million Tree Program project. This project consist of purchasing approximately 3 million existing seedlings and planting of new seedlings as well as developing a long-term, self-sustaining, large-scale tree planting program that will result in positive impacts such as an increase in forest cover and ensuring healthy forests.
As per the signed MOU, ECCC will transfer up to $4.9 million to NRCan in 2019-20, ECCC is also committed to transferring a total of up to $15.0 million between 2019-20 and 2022-23 for the same program to NRCan. A new MOU will be created to include fiscal years 2020-21, 2021-22, and 2022-23, subject to the renewal of NRCan’s Forest Innovation Program terms and conditions, which expires on March 31, 2020. The amount of the transfer sought in the 2019-20 Final Supplementary Estimates 2019-20 is $4.9 million from ECCC’s Vote 10 - Contributions to NRCan.
Transfer from the Department of the Environment to the Department of Natural Resources to support the financing of a contribution agreement with the Corporation of the City of Brampton for an Electric Bus Demonstration and Integration Trial ($5,748,750)
ECCC and NRCan have a history of collaboration in the delivery of programs and experience in funding projects that generate clean growth, reduce GHG emissions, and support Canada’s transition towards a low-carbon economy. ECCC has committed a portion of unallocated Ontario Leadership Fund resources from the Low Carbon Economy Fund to provide funding to NRCan to support the delivery of the Brampton Transit Electric Bus Demonstration and Integration Trial. ECCC has committed to transfer $5.7 million in 2019-20 and $1.9 million in 2020-21 to NRCan. The funds are planned to be transferred through the 2019-20 Final Supplementary Estimates and the 2020-21 Annual Reference Level Update.
The purpose of this project is to support alternative GHG emissions reduction programming that contributes to Canada’s clean growth and climate change plan (Pan-Canadian Framework on Clean Growth and Climate Change). The expected outcome from this project is to purchase 8 electric buses and 4 charging stations to be owned and operated by the Proponent as well as demonstrations of the high- powered overhead electric bus charging system to ensure that varying makes and models of buses operate on routes with a mixture of overhead chargers.
A transfer of $5.7 million in Vote 10 - Contributions from ECCC to NRCan is being sought in the 2019-20 Final Supplementary Estimates 2019-20.
Funding for contributions to the employee benefit plans ($2,300,601)
The increase in funding is associated with the personnel funding sought for the five initiatives mentioned above and the Youth Employment and Skills Strategy transfer below. The contributions to the employee benefit plans are a statutory authority. Increases to grants funded from existing reference levels (increase of $1.1 million to grants from existing reference levels)
Grant under the Innovative Solutions Canada program
The Innovative Solutions Canada program under Innovation, Science and Economic Development Canada supports the growth of innovative Canadian businesses by encouraging the government to act as first customer. The Department has obtained the authority to provide grants of up to $150K and engage in sole source contracts with proponents. The Department has been assigned a notional target of $1.6 million in joint grants and contributions and contracting activity by 2020-21.
The Department is seeking to increase the Grant under the Innovation Solutions Canada program by $1.1 million in the 2019-20 Final Supplementary Estimates. The increase in grants would be funded within existing contributions funding.
This increase of $1.1 million is in addition to the authority provided by Treasury Board in the Funding to implement the Federal Leadership Towards Zero Plastic Waste in Canada TB submission approved in July 2019 (presented under item #1), which approved a grant listing of $350K for the Grant under the the Innovative Solutions Canada program in 2019-20. As there was $50K initially listed in the 2019-20 Main Estimates for this grant, the total grant listing would be $1.5 million in 2019-20.
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