Financial overview: Appearance before the Standing Committee – March 19, 2024

2024-2025 Supplementary Estimates (C) – Environment and Climate Change Canada

• Overview
• Supplementary Estimates C

Overview

Issue

• The Supplementary Estimates C is the third and final opportunity for ECCC to make adjustments to its 2023-24 reference levels.
• ECCC is seeking to increase its reference levels in the amount of $30.6 million through these Supplementary Estimates.

Points to register

• This brings the department’s total authorities to $2.9 billion in 2023-24. This update includes:
  • $16.3 million to implement a strengthened Freshwater Action Plan and to establish the Canada Water Agency (Budget 2022 & 2023);
  • $3.0 million to negotiate and implement Indigenous rights-based agreements (Budget 2023);
  • $2.7 million to protect and promote the health of Canada’s priority at-risk whale populations;
  • $5.8 million in transfers with other organizations; and
  • $2.8 million for the contributions to employees benefit plans related to new salary funding received.

Voted vs statutory

• Voted: ECCC’s voted spending authority sought in these Supplementary Estimates totals $27.8 million.
• Statutory: The statutory amount of $2.8 million consists of contributions to the employee benefit plans related to the salary funding received.

Voted grants and contributions

• These Supplementary Estimates include an increase of $2.0 million in contributions listing:
  • $1.9 million in support of Preventing and Managing Pollution;
    • $1.0 million for the Trans Mountain Project - Terrestrial Cumulative Effects Initiative
    • $0.8 million to implement a strengthened Freshwater Action Plan and to establish the Canada Water Agency; and
    • $0.1 million to protect and promote the health of Canada’s priority at-risk whale populations.
  • $0.1 million in support of the Canada Nature Fund to negotiate and implement Indigenous rights-based agreements.
• These Supplementary Estimates include an increase of $5.0 million in grants listing:
  • $5.0 million in support of Canada’s International Climate Finance Program for the Africa Adaptation Initiative Food Security Accelerator initiative.
• Total G&Cs authorities amount to $1,411.1 million (including Statutory) including new authorities in Supplementary Estimates C. Of this amount, $218.7 million (or 15.5%) is currently forecasted to be provided directly to Indigenous recipients. $486.3 million (or 34.5%) is currently forecasted to be provided directly to Provinces/Territories including:
  • $376.7 million (or 77.5%) through the LCEF Leadership/Challenge streams;
  • $103.0 million (21.2%) through the Canada Nature Fund; and,
  • $6.6 million (or 1.3%) for various other programs.

Description of items

(A) Voted appropriations – total increase of $22,014,419:

1. Funding to implement a strengthened Freshwater Action Plan and to establish the Canada Water Agency: 16,309,432
   • [*Redacted*] This funding will enable Environment and Climate Change Canada to implement a strengthened Freshwater Action Plan (FWAP), including a historic investment to address freshwater challenges and support clean-up efforts in the Great Lakes, Lake Winnipeg, Lake of the Woods, the St. Lawrence River, the Fraser River, the Wolastoq/Saint John River, the Mackenzie River, and Lake Simcoe.
   • [*Redacted*] also provides funds to establish a stand-alone Canada Water Agency (CWA); and, following the establishment of a CWA, advance the modernization of the Canada Water Act to reflect Canada’s freshwater reality, including climate change and Indigenous rights.
   • Budget 2022 and 2023 provided ECCC $681.9 million of the $712.4 million in new funding over 10 years, beginning in 2023-24 and $18.9 million of the $21.0 million of ongoing in new funding. The balance is provided to SSC and PSPC for core information technology services and accommodations premiums respectively. [*Redacted*]
2. Funding to negotiate and implement Indigenous rights-based agreements: $3,004,999
   • [*Redacted*] This funding will allow ECCC to implement the Musqueam Recognition Agreement with Musqueam Indian Band (Musqueam), and the Burrard Inlet Environmental Science and Stewardship Agreement with Tsleil-Waututh Nation (TWN) in order to provide increased participation and policy support at Treaty and reconciliation negotiations across Canada.
   • Budget 2023 provided ECCC $27.6 million of the $29.8 million in new funding over 10 years, beginning in 2023-24 and $2.0 million ongoing, beginning in 2033-34. The balance is provided to SSC and PSPC for core information technology services and accommodations premiums respectively. [*Redacted*]
3. Funding to protect and promote the health of Canada’s priority at-risk whale populations: $2,699,988
   • [*Redacted*] ECCC will continue to monitor sources of contaminants in environmental compartments (freshwater, sediment, air, and wastewater) in areas frequented by priority at-risk whale populations and their prey.
   • Budget 2023 provided ECCC $9.2 million of the $151.9 million in new funding over 3 years, beginning in 2023-24, with the balance provided to other participating departments. [*Redacted*]

(B) Transfers with other government departments: $5,753,534

1. Transfer from the Department of Foreign Affairs, Trade and Development to the Department of the Environment to support the Africa Adaptation Initiative Food Security Accelerator: $5,000,000
   • This transfer is for the implementation of the Africa Adaptation Initiative (AAI) Food Security Accelerator in support of Canada’s international climate finance commitment.
   • The AAI Food Security Accelerator will build on Canada’s efforts to tackle food security by investing in a portfolio of African Investment Funds dedicated to growing innovative business models in food systems.
2. Transfer from the Department of Natural Resources to the Department of Environment for the Trans Mountain Project - Terrestrial Cumulative Effects Initiative: $1,000,000
   • This transfer is to support ECCC in entering into project funding agreements with eligible Indigenous groups to support collaborative development of a participation in the Terrestrial Cumulative Effects Initiative (TCEI). ECCC will administer funding received under this MOU via contribution agreements to eligible TCEI Indigenous groups. As part of this, ECCC will continue to facilitate intake of proposals, review proposals, negotiate and approve funding agreements.
3. Transfer from the Department of Fisheries and Oceans to the Department of the Environment for the Canada Centre for Inland Waters: $918,534
   • This transfer is to support the relationship between ECCC and DFO regarding access and use of a portion of the Canada Centre for Inland Waters (CCIW) by DFO. DFO and ECCC will share capital costs as approved in ECCC’s Capital Investment Plan. DFO will be responsible for capital costs specific to the Marine Infrastructure supporting DFO marine operations.
4. Transfer from various organizations to the Treasury Board Secretariat for the Transfer Payments Innovation Agenda: -$15,000
   • This transfer will allow the Office of the Comptroller General’s (OCG) Policy on Transfer Payments Innovation Agenda to support a more enabling leadership role for TBS across the federal family, beyond the core Policy oversight and renewal function, to support enterprise-wide harmonization and alignment. The Agenda will be led by OCG-Financial Management Services, in partnership with the transfer payment community.
5. Transfer from the Department of the Environment to the National Museum of Science and Technology for climate literacy: -$1,150,000
   • This transfer is to collaborate on a climate literacy exhibition project that targets families with young children from 4-12 years old. The theme of the exhibition is "Our Journey to Net Zero - Home", focusing on climate actions we can take in our homes, as well as energy choices and sources.

(C) Other adjustments : $2,790,072

1. Statutory contributions to employee benefit plans: $2,790,072
   • This statutory funding is related to salaries paid to ECCC employees. It is calculated at 27% of voted salary costs in these Supplementary Estimates.
2. An internal reallocation of resources from Operating to Capital to support Species at Risk Data Management Tracking System (net impact $0)
   • Improvements to information management are required to facilitate better coordination/cooperation for the full SARA program implementation. A key part of this effort is to make the data and information process transparent and readily available to everyone using it. The project will rationalize key legacy systems into the new SAR-Data Management and Tracking System (SAR-DMTS) which will store, track, and report information related to species under the SARA program and the various legislative requirements under the Act.
   • The objective is to promote the standardization, consolidation, and centralization of ECCC’s SAR information including the various documents and reports that are required under the Act. This will allow multiple internal and external applications supporting the SARA activities to be interoperable and to ultimately enable these systems to link together to allow exchange and/or analysis of relevant information. It will also allow ECCC to store, track and report information that is critical to managing the SARA program, reducing or mitigating legal risk (associated with failure to respond to obligations under the Act), and enabling better engagement with stakeholders.
   • The Department is seeking to increase Capital authorities via a transfer of $3.2 million in existing Operating authorities.

Supplementary Estimates C – 2023-2024: Department of the Environment

• Items for inclusion in the Proposed Schedule 1 to the Appropriation Bill
• Statutory Forecasts
• Expenditures by Purpose
• Budgetary Expenditures by Standard Object
• Horizontal Items
• Frozen Allotments in Voted Authorities

2023-2024 Supplementary Estimates C – Parks Canada Agency

• Overview
• Supplementary Estimates C

Overview

Context

• The Supplementary Estimates (C) was the last opportunity for Parks Canada to adjust its 2023-24 reference levels.
• Parks Canada increased its reference levels in the amount of $37,978,525 through these Supplementary Estimates.

Points to register

• Approximately $38.0 million in total funding was received through the 2023-24 Supplementary Estimates (C), which was composed of:
  • A voted spending authority amount of $37.3 million which consisted of
    • An increase of $37.3 million in Operating expenditures, grants and contributions (Vote 1);
  • A statutory amount of $0.7 million which consisted of:
    • An increase of $0.7 million for the Employee Benefit Plan (EBP).
• Items included in these Estimates were (excluded statutory such as EBP):
  • $37.2 million for wildfire response requirements;
  • $88.0 thousands to protect and promote the health of Canada’s priority at-risk whale populations; and
  • $10.0 thousands transfer to the Treasury Board Secretariat for the financial community developmental programs and initiatives.

Background/description of items

Parks Canada’s 2023-24 Supplementary Estimates (C) total $38.0 million as per table below:

Description of items

1. [*Redacted*]
   1. [*Redacted*]
      1. This initiative seeks funds to cover extraordinary costs in 2023-24 to respond to the unprecedented number, intensity and duration of wildfires threatening the Agency’s lands, assets and settlements and related critical infrastructure.
   2. [*Redacted*]
      1. Fisheries and Oceans Canada, Transport Canada, Environment and Climate Change Canada and Parks Canada are seeking $151.9 million over three years. Of this amount, Parks Canada is seeking $6.8 million over three years to continue activities focused on protecting the Southern Resident killer whale (SRKW), their prey and ecosystems. This funding will be used to improve oversight and enforcement of regulations in Parks Canada managed protected areas and to continue conservation actions for SRKW critical habitat in and around Gulf Islands and Pacific Rim National Park Reserves.
2. Transfers to and from other departments – Total decrease of $10,000
   3. Transfer from Parks Canada to the Treasury Board Secretariat for the financial community developmental programs and initiatives: - $10,000
      1. Large Departments and Agencies (LDAs) will contribute to fund the renewal and delivery of the development programs for the financial management community. A LDA is defined as an organization having more than $300 million in annual spending and/or more than 500 FTEs. Central Agencies are also included in the LDA These development programs are delivered by the Office of the Comptroller General of Canada as the lead for the financial management community.

Supplementary Estimates C – 2023-2024: Parks Canada Agency

• Items for inclusion in the Proposed Schedule 1 to the Appropriation Bill
• Statutory Forecasts
• Expenditures by Purpose
• Budgetary Expenditures by Standard Object
• Horizontal Items
• Frozen Allotments in Voted Authorities

2023-2024 Supplementary Estimates C – Impact Assessment Agency

• Overview
• Supplementary Estimates C

Overview

Issue

The Supplementary Estimates C is the third and final opportunity for the Impact Assessment Agency of Canada (the Agency) to make adjustments to its 2023–2024 reference levels. The Agency is seeking to decrease its voted authorities by $105,000 through 2023–2024 Supplementary Estimates C.

Points to register

• Through the 2023–2024 Supplementary Estimates C, the Agency sought to decrease its reference levels in the amount of $105,000, bringing the Agency’s authorities to $106.0 million. This update includes:
  • $105,000 (decreasing $5,000 from Vote 1: Operating expenditures and decreasing $100,000 from Vote 5: Grants and contributions) from the Agency to the Natural Sciences and Engineering Research Council (NSERC) for research in the field of impact assessment.

Voted vs statutory

• Voted: The Agency’s voted spending authority sought in these Supplementary Estimates totals $105,000, includes a net decrease of $5,000 in Vote 1: Operating expenditures and a net decrease of $100,000 in Vote 5: Grants and contributions expenditures.
• Statutory: There is no change to the Agency’s statutory amount.

Voted grants and contributions

• These Supplementary Estimates C include a decrease of $100,000 in grant expenditures.

Background/description of items

• See 2023–2024 Supplementary Estimates attached page.

Transfers

• From the Agency to NSERC for research in the field of impact assessment.
  • A transfer of $105,000 to NSERC for supplemental funding for research in the field of impact assessment. This is the final year of the three-year agreement, wherein the Agency agrees to support up to a maximum of $205,000 annually. The Agency provides funding to recipients of NSERC scholarships who are undertaking research related to the field of Impact Assessment. The funding is supplemental, as it can be provided to successful, existing NSERC award holders at the post-graduate (i.e., masters or doctoral students) and/or postdoctoral (i.e., award holders with a doctorate) levels. This aims to support the new Impact Assessment system by providing research and evidence related to the field of Impact Assessment, forge partnerships, and disseminate knowledge.

Supplementary Estimates C – 2023-2024: Impact Assessment Agency of Canada