Supplementary Estimates (C), 2020-2021, Environment and Climate Change Canada: appearance before the Standing Committee (March 10, 2021)

Overview of ECCC’s 2020-2021 Supplementary Estimates C

Issue

The Supplementary Estimates C is the third and final opportunity for Environment and Climate Change Canada to make adjustments to its 2020-21 reference levels. Environment and Climate Change Canada is seeking to increase its reference levels in the amount of $70,748,935 through these Supplementary Estimates.

Points to register

Through the 2020-21 Supplementary Estimates (C), the Department is seeking to increase its reference levels in the amount of approximately $70.7 million, bringing the department’s total authorities to $2.1 billion. This update includes:
- $55.1 million for the conservation of the Central Group of Southern Mountain Caribou in British Columbia;
- $9.2 million for the Climate Action Incentive Fund;
- $2.4 million to Modernize the Enforcement of Environmental Laws and Regulations;
- $1.3 million for third party advances for capital related to the Hydrometric Monitoring Program;
- $0.7 million to safeguard the continuous operation of the Dr. Neil Trivett Global Atmosphere Watch Observatory in Alert, Nunavut;
- $1.7 million for contributions to employee benefit plans;
- $0.3 million for various transfers with other organizations (see below for supplementary information on transfers).

Voted vs statutory

Voted: Environment and Climate Change Canada’s voted spending authority sought in these Supplementary Estimates totals $68.7 million, including $11.5 million in operating expenditures, $2.1 million in capital expenditures and $55.1 million in grants and contributions expenditures. A net amount for transfers of $0.33 million is added to this funding, including a decrease of $0.02 million in operating expenditures, and an increase of $0.35 million in grants and contributions. The net voted requirements represent an increase of $69.0 million.
Statutory: The statutory amount of $1.7 million consists of the contributions to the employee benefit plans related to new salary funding received for the Climate Action Incentive Fund and to modernize the enforcement of environmental laws and regulations.

Voted grants and contributions

These Supplementary Estimates include an increase of $55.5 million in contributions listing.
- $55.1 million in support of the Canada Nature Fund. This increase is required to support collaborative recovery actions for the Southern Mountain Caribou;
- $0.4 million in support of Taking Action on Clean Growth and Climate Change. This increase is related to a transfer of $375K from the Department of Agriculture and Agri-Food to the Department of the Environment to support the greening growth in the agriculture and agri-food sector, offset by a transfer of $25K from the Department of the Environment to the Department of Fisheries and Oceans to support the Ocean Wise: National Climate Education proposal.

Background/description of items

Total estimates to date (Main Estimates plus Supplementary Estimates A, B and C)

Environment and Climate Change Canada’s total Current Authorities for 2020-21, including Main Estimates, Supplementary Estimates A, B and C and funding received through other standard technical adjustments total $2.1 billon.
The $2.1 billion broken out by Main Estimates and the Supplementary Estimates is as follows:
- Main Estimates total $1,983.0 million
- No funding was sought through Supplementary Estimates A
- Supplementary Estimates B total $5.2 million which is mainly related to new funding of $13.9 million to support various programs including Payments to support students and youth impacted by COVID-19 and the Canada Nature Fund. This is offset by a net amount of $8.7 million in transfers with other organizations to support various initiatives including a transfer to Natural Resources Canada to support the 50 Million Tree Program and transfers to the Department of Crown-Indigenous Relations and Northern Affairs and the Natural Sciences and Engineering Research Council to develop plastics science in support of the Canada-wide Strategy on Zero Plastic Waste.
- Supplementary Estimates C total $70.7 million, mostly related to new funding to support the conservation of the Central Group of Southern Mountain Caribou in British Columbia, the Climate Action Incentive Fund and to Modernize the Enforcement of Environmental Laws and Regulations (referred above and page proofs attached).
- Funding received through standard technical adjustments (2019-2020 carry-forward and compensation allocations relating to collective bargaining agreements) total $41.2 million.

Description of items in ECCC’s Supplementary Estimates C

Voted Appropriations ($68,749,393)

Funding for the conservation of the Central Group of Southern Mountain Caribou in British Columbia

$55,122,500

*Redacted*

The total cost for the Department is $75.4 million over four years including:

$46.5 million in new funding *Redacted*;
$28.9 million in existing ECCC funding:
- $27.3 million from Budget 2018 Nature Legacy funding;
- $1.6 million permanent A-Base funding.

The $55.1 million included in Supplementary Estimates C is fully requested in contribution funding comprised of:

$40.7 million in new funding *Redacted*;
$14.4 million of reprofiled funding from existing resources.

Contribution funding received through the 2020-21 Supplementary Estimates C would allow ECCC to lead the implementation of the Species at Risk Act (SARA) and supporting the Minister to meet his obligations under the Act associated with protection and recovery of species at risk. This proposal supports the recovery of a priority species at risk, Southern Mountain Caribou, including the protection of important habitats.

The funding profile for this initiative is front-end loaded due to $63.6 million in Grants & Contributions spending in 2020-21:

$46 million Land purchases to Province of B.C. ($24 million in new funds + $22 million from Nature Legacy);
$10 million to a Community Support Trust to mitigate impacts to workers and communities (BC is responsible for appointing a trustee);
$5 million Habitat restoration
$2.6 million in First Nations recovery measures.

Supporting Climate Action Incentive Fund Operations in 2020-21

$9,180,037

*Redacted* The $10.7 million total requested for 2020-21 includes $9.2 million listed in Supplementary Estimates (C) as a Voted authority plus an additional $1.5 million for the related Employee Benefit Plan as a statutory authority.

As per the Government’s 2018 commitment to return carbon pollution pricing proceeds to jurisdictions of origin, ECCC has been delivering a portion of fuel charge proceeds that are not already returned through Climate Action Incentive payments through the Climate Action Incentive Fund (CAIF) to targeted recipients in the involuntary backstop jurisdictions of Saskatchewan, Manitoba, Ontario and New Brunswick.

As part of program administration, Environment and Climate Change Canada staff reviewed over 700 applications for the Climate Action Incentive Fund funding and continues to manage around signed 425 funding agreements for projects undertaken by small and medium-sized businesses in addition to four broader agreements to support hundreds of projects in schools in Saskatchewan, Manitoba, Ontario and New Brunswick.

Fuel charge proceeds returns are a statutory authority and subject to specifications from the Minister of Finance. Fuel charge proceeds can be returned through the Climate Action Incentive Fund for eligible expenditures incurred by program recipients until March 31, 2021.

Funding to Modernize the Enforcement of Environmental Laws and Regulations

$2,396,856

ECCC sought $50.9 million over five years beginning in 2020-2021 and $10.1 million per year ongoing to modernize its enforcement functions and to better support the Chief Review Officer who is responsible to address complaints. ECCC will receive $2,396,856 in Supps C this year.

Of this amount, $46 million, $9.2 million/year ongoing, will be used to lay the foundation for a risk-based, data driven approach to enforcement of its laws and regulations. The new resources will help in addressing audit recommendations outlined in four audits conducted on enforcement functions by the Commissioner of Environmental and Sustainable Development over the past eleven years. The audit recommendations called for improvements to better prioritize enforcement activities based on environmental and human health risks. The new funding will enable the department to conduct analysis of its entire mandate to identify the greatest risks, conduct field tests and refine its analysis, while ensuring officers are trained and equipped to carry out this work safely and effectively.

Funding for Capital Revenues relating to the Hydrometric Monitoring Program

$1,300,000

ECCC is seeking an increase in the frozen allotment entitled “Third Party Advances - Hydrometric Capital” in the amount of $1.3 million in 2020-21 and ongoing for the Hydrometric Monitoring Program. This increase will allow for the procurement of capital items needed to maintain proper lifecycle management of assets on hydrometric monitoring sites of shared responsibility, in advance of payment by provincial and territorial partners. Capital spending advances will be offset by deposits made by provinces and territories to the Consolidated Revenue Fund by fiscal year end. Each year, a corresponding amount will be released from the frozen allotment, with no fiscal impact.

Funding to safeguard the continuous operation of the Dr. Neil Trivett Global Atmosphere Watch Observatory in Alert, Nunavut

$750,000

*Redacted* The Observatory is the northernmost research facility of its kind in the world and is a globally important long-term measurement site for greenhouse gases, short-lived climate pollutants, atmospheric mercury, persistent organic pollutants, and ozone.

These investments will ensure Environment and Climate Change Canada’s long-term research and monitoring presence at the Alert site in order to provide critical climate change and air quality data, which is key to understanding the impact of climate change on Arctic ecosystems.

Statutory Appropriations

Funding for contributions to the employee benefit plans

$1,665,792

The increase in funding is associated with the personnel funding sought to support Climate Action Incentive Fund and to Modernize the Enforcement of Environmental Laws and Regulations mentioned above. The contributions to the employee benefit plans are under a statutory authority.

Transfers from other government departments

Transfer from the Department of Agriculture and Agri-Food to the Department of the Environment to support the Greening Growth in the Agriculture and Agri-Food Sector

$375,000

As per the MOU, ECCC will receive $0.4 million from AAFC to amend its current Economics and Environmental Policy Research Network agreement for covering the cost of incremental analytical work, to be performed by Smart Prosperity Institute and the University of Ottawa within the scope of the agreement. Whereas AAFC has an interest in having ECCC undertake these activities for the following reasons:

The activity falls within ECCC’s work plan and mandate
The activity will contribute to a better understanding of how the agriculture sector can contribute further to attain the commitments of climate change mitigation under the Paris Accord and the Pan-Canadian Framework on Clean Growth and Climate Change

As part of the 2020-21 Supplementary Estimates (C), a transfer of $0.4 million from AAFC to ECCC’s Vote 10 – Grants & Contributions Vote is being sought to support AAFC with the greening growth in the agriculture and agri-food sector.

Transfers to other government departments

Transfer from the Department of Environment to the Department of Fisheries and Oceans to support the Ocean Wise: National Climate Education proposal

$41,250

As per the MOU, ECCC will transfer $41,250 to the Department of Fisheries and Oceans in 2020-21. The amount of the transfer sought in the 2020-21 Supplementary Estimates (C) from ECCC’s is taken from Vote 10 – Contributions ($25,000) and Vote 1 – Operating ($16,250). ECCC has committed a portion of unallocated resources to support the Department of Fisheries and Oceans with the outcomes National Climate Change Dialogue and the bilingual Climate Change Education Kit.

Supplementary Estimates (C), 2020-2021, Department of the Environment

Organization Summary (dollars)
Budgetary
	Authorities to date	Transfers	Adjustments	Proposed Authorities to date
Note: Additional details by organization are available on the Treasury Board Secretariat website.
Voted
1c Operating expenditures	887,665,939	(16,250)^A	11,460,893^C	899,110,582
5c Capital expenditures	102,743,261	0	2,166,000^D	104,909,261
10c Grants and contributions	822,541,705	350,000^B	55,122,500^E	878,014,205
Total Voted	1,812,950,905	333,750	68,749,393	1,882,034,048
Total Statutory	216,439,591	0	1,665,792^F	218,105,383
Total Budgetary Expenditures	2,029,390,496	333,750*	70,415,185*	2,100,139,431

*Total Supplementary Estimates C: $333,750 + $70,415,185 = $70,748,935

Explanation of Requirements (dollars)
Budgetary
	Vote no.	Amount ($)
Voted Appropriations
Funding for the conservation of the Central Group of Southern Mountain Caribou in British Columbia	Vote 10c^E	55,122,500
Funding for the Climate Action Incentive Fund	Vote 1c^C	9,180,037
Funding to modernize the enforcement of environmental laws and regulations	Vote 1c^C	2,280,856
	Vote 5c^D	116,000
Total		2,396,856
Funding for third party advances for capital related to the Hydrometric Monitoring Program	Vote 5c^D	1,300,000
Funding to safeguard the continuous operation of the Dr. Neil Trivett Global Atmosphere Watch Observatory in Alert, Nunavut	Vote 5c^D	750,000
Total Voted Appropriations		68,749,393
Total Statutory Appropriations		1,665,792^F
Transfers
Transfers from Other Organizations
From the Department of Agriculture and Agri-Food to the Department of the Environment to support the greening growth in the agriculture and agri-food sector	Vote 10c^B	375,000
Transfers to Other Organizations
From the Department of the Environment to the Department of Fisheries and Oceans to support the Ocean Wise: National Climate Education proposal	Vote 1c^A	(16,250)
	Vote 10c^B	(25,000)
Total		(41,250)
Total Transfers		333,750
Total Budgetary		70,748,935

Notes

A

Includes a decrease of $16.3K related to a transfer from the Department of Environment to the Department of Fisheries and Oceans to support the Ocean Wise: National Climate Education proposal.

B

Includes an increase of $0.4M related to a transfer from the Department of Agriculture and Agri-Food to the Department of the Environment to support the Greening Growth in the Agriculture and Agri-Food Sector; and
A decrease of $25.0K related to a transfer from the Department of Environment to the Department of Fisheries and Oceans to support the Ocean Wise: National Climate Education proposal.

C

Includes an increase of $9.2M for the Climate Action Incentive Fund; and
$2.3M for the Modernize the Enforcement of Environmental Laws and Regulations.

D

Includes an increase of $1.3M for the Capital revenues relating to the Hydrometric Monitoring Program;
$0.7M to safeguard the continuous operation of the Dr. Neil Trivett Global Atmosphere Watch Observatory in Alert, Nunavut; and
$0.1M to Modernize the Enforcement of Environmental Laws and Regulations.

E

Includes an increase of $55.1M for the conservation of the Central Group of Southern Mountain Caribou in British Columbia (under Canada Nature Fund).

F

Includes $1.7M increase in Employee Benefit Plans.

Listing of Transfer Payments (dollars)
Contributions
	Estimates to date	These Supplementary Estimates	Revised Estimates
Contributions in support of the Canada Nature Fund	110,448,312	55,122,500^A	165,570,812
Contributions in support of Taking Action on Clean Growth and Climate Change	27,235,765	350,000^B	27,585,765