Grants and contributions for promoting the safe use, development, conservation and protection of the North's natural resources, and promoting scientific development, terms and conditions

Table of contents

  1. Introduction
  2. Legal and policy authority
  3. Purpose, program objectives and expected results
  4. Eligibility
  5. Type and nature of eligible expenditures
  6. Total Canadian government funding and stacking limits
  7. Method for determining the amount of funding
  8. Maximum amount payable
  9. Basis on which payments will be made
  10. Application requirements and assessment criteria
  11. Due diligence and reporting
  12. Official languages
  13. Intellectual property
  14. Repayable contributions
  15. Redistribution of contributions
  16. Other terms and conditions
  17. Effective date of terms and conditions

1. Introduction

The transfer payment program terms and conditions entitled "Grants and Contributions for promoting the safe use, development, conservation and protection of the North's natural resources" have been modified to include the scientific portion of "Contributions for promoting the political, social and scientific development of Canada's 3 territories" to this set of program terms and conditions, effective October 1, 2018.

The mandate of Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC) with respect to the development and use of natural resources in Canada's 3 Northern territories is very broad and involves the delivery of a number of programs and services including the management of land and water, as well as mineral, oil and gas resources in Nunavut and Northern offshore, the protection of the Northern environment, and taking a leadership role in global issues such as climate change and the long-range transport of pollutants into the Arctic. The experience and expertise of Northern Affairs staff has resulted in the Northern Affairs Organization (NAO) assuming an expanded delivery role for both the Northern and Indigenous components of the department's activities related to the Northern contaminants program, climate change, energy programs and the implementation of CIRNAC sustainable development initiatives.

Northerners, their governments, Indigenous peoples and Indigenous communities and organizations, and other Northern stakeholders, need to carry out activities that complement and build on departmental initiatives to promote the safe use, development, conservation and protection of the North's natural resources. This includes implementing Northern contaminated sites, climate change, sustainable development initiatives, and supporting scientific research, education and development in the North. These activities are not bound to one particular program, but rather span across a number of program areas including the Northern Contaminants Program, the clean-up of contaminated sites, climate change and clean energy programs, implementation activities pursuant to land claims agreements, environmental monitoring, land and water management, Northern petroleum and mineral resource management, the devolution of land and resource management responsibilities, intergovernmental processes to deal with a wide range of issues of common concern, science and technology and activities that support international cooperation on circumpolar issues, and research, knowledge development and educational initiatives that support the implementation of Canada's Arctic and Northern Policy Framework.

2. Legal and policy authority

Department of Crown-Indigenous Relations and Northern Affairs Act, 2019.

The Department of Crown-Indigenous Relations and Northern Affairs Act mandates the Minister of Northern Affairs to:

3. Purpose, program objectives and expected results

The overall expected outcome is the improvement in the quality of life of Northerners and Indigenous peoples and an increased capacity in the safe use, development, conservation and protection of Indigenous and Northern lands and resources, and to promote the North's scientific and knowledge development and related post-secondary educational opportunities and initiatives in order to enable Northerners and Indigenous peoples to assume increasing responsibility within the Canadian federation. In terms of specific results, the various investments under this authority are intended to lead to the following results and will be measured according to information gathered from performance measurement strategies:

Elements Objectives Expected results
Infrastructure

Focus on renovating or upgrading Northern research facilities, supporting science and technology to address issues relating to wear and tear, renewable energy, energy efficiency, climate change, health and safety, conservation of resources, environmental management, new and/or changing science and technology needs, and infrastructure requirements.

Provide funding support for the integration and operations and maintenance of the renewable energy technologies in Indigenous and Northern communities to increase community self-sufficiency and energy sustainability.

A fully functional and ready to use science building at Yukon College.

Facilities that respond to modern science and technology infrastructure requirements; develop, adapt, or apply science or technologies for the North in order to increase access to post-secondary educational opportunities and economic activity in the North, strengthen environmental stewardship, and enhance quality of life; and create employment during both the construction phase and subsequently in the operation of the improved or new infrastructure.

Projects funded in Indigenous and Northern communities that will result in reduced greenhouse gas emissions and diesel fuel usage.

The construction of a science building at Yukon College will support knowledge development and Yukon College's transition to a University.

Projects can include pre-feasibility and feasibility studies of renewable energy projects and the design and construction of renewable energy and energy efficiency projects associated with community-built infrastructure.
Consultation

Facilitate and organize fora, meetings and workshops, collect and disseminate information and other activities that relate to the solicitation and exchange of information, ideas and points of view.

Expand the knowledge and understanding of natural resources, environmental issues, and the principles and practices of sustainable development and understanding of scientific issues and activities.

Improved local knowledge of issues and knowledge of agreements and their impacts.

Increased participation of Northern, Indigenous organizations in consultation processes, including: exchange of information among stakeholders; understanding of issues and development of positions by stakeholders; consultative mechanisms; organizational ability to advocate for positions; plans, agreements and accords; and sustainable development.
Core activities Support ongoing activities or administrative functions of organizations that monitor and protect the environment and increase capacity to engage in sustainable development and activities that promote scientific development in the North and Indigenous communities.

Increased participation of Northern organizations and community-based groups or organizations in consultative and negotiation processes.

Increased capacity of groups and organizations to assume increased responsibilities and participate in sustainable development.
Research

Expand Northerners' opportunities for knowledge development and improve understanding of resource development and environmental issues and activities, as well as Northern and Indigenous scientific development issues and activities.

Promote on-going federal interests in the environment including scientific research and circumpolar co-operation.

Facilitate innovative approaches to sustainable development and any activity that may have cultural dimensions (for example, research might involve traditional knowledge).

 Improved educational infrastructure and data and information base; improved knowledge of Northern and Indigenous development issues, including broad issues such as climate changes and contaminants in the Arctic food chain; and greater understanding and decision-making capacity.
Management

Planning and mitigation measures necessary for governments, communities, groups, organizations or associations to ensure the safe use, development, conservation, and protection of the natural resources, communities infrastructure, and environment.

Increase capacity to access tools, educational opportunities and information and to develop approaches that will help recipients respond to broader Northern scientific, social and political issues such as the effects of climate change.

 Increased technical knowledge base and Northern and Indigenous technical expertise; ability to safeguard the environment and adapt to environmental change by using appropriate mitigating and adaptation measures, practices and techniques; and improved solutions for development challenges.
Remediation Planning and cleanup of contaminated sites in order to safeguard the health and safety of flora and fauna. Increased understanding of remediation processes and practices; project management skills; participation of Northerners and Indigenous people in skilled positions; and group and organization ability to conduct clean-up of contaminated sites.
Capacity building

Increase expert knowledge, understanding and skills related to roles and responsibilities; skills to engage in the scientific environment through capacity building; expert knowledge brought to bear on analysis of proposals and development of positions; and assist Northerners and Indigenous groups to develop environmental institutions.

Increase access to post-secondary education in the Canadian North and Arctic, including scientific expertise and knowledge development.

Improved individual and collective community skills; employer access to Northern and Indigenous labor force; and understanding of Northern resource development and environmental management issues and options.

Increased organizational management skills and knowledge of roles and responsibilities; participation of Northerners and Indigenous people in sustainable development activities; group and organization ability to develop options and determine positions and act upon opportunities; management skills and governance capability of governments and organizations; and employment and income in Northern and Indigenous communities.

Greater access to post-secondary education in the Canadian North and Arctic.

In the 2018-19 transitional Departmental Results Framework, this authority is listed under:

The expected results are measured by key performance indicators, outlined in departmental plans, including the number of contaminated sites remediated, percentage of decrease in concentration of contaminants in the North, the percentage of projects approved within regulated timelines (including decisions on environmental assessments), closing the gaps in availability of post-secondary education infrastructure, with a focus on science, and the launch of the Canadian High Arctic Research Station including the science and technology program and completion of construction of the facility.

Time-limited authority was provided for the construction of a science building at Yukon College, as it transitions to Yukon University. The following elements of the terms and conditions were amended to allow for this specific time-limited initiative and cannot be used in the context of other projects/initiatives:

4. Eligibility

4.1 Eligible recipients

In the following table core activities include ongoing support or administrative functions which enable eligible recipients to operationalize and carry out ongoing types of activities.

A project is an activity or series of activities over a defined period. A project produces defined outputs and realizes specific outcomes in support of a public policy objective. Projects may include development of specific physical undertakings as well as other activities including research, program delivery, capacity building, workshops, meeting facilitation, and other activities to improve social outcomes.

Recipients Core activities* Projects*
Individuals Yes Yes
Organizations
  • Associations
  • Education/research institutions
  • Not-for-profit institutions
  • Other organizations
 Yes Yes
Other levels of government Yes Yes
Other non-federal entities
  • Public
  • Private
 Yes Yes
Indigenous communities or their organizations such as boards, committees, agencies, band operated enterprises or other entities designated by the chief and council, tribal councils or hamlet. These include bands/settlements (land, reserves, trusts); First Nations/Innu/Inuit governments referred to in a self-government or land claims agreement, district councils/chief councils, tribal councils, and regional or national level Indigenous organizations. Yes Yes
Any entity that has receive a transfer payment or authorised to received a transfer payment under a transfer payment program that is specifically targeted to Indigenous people or has a component specifically targeted to Indigenous people Yes Yes

* Grants or contributions may be provided to Indigenous communities or their organizations such as boards, committees, agencies, band operated enterprises or other entities designated by the chief and council, tribal councils or hamlet or any entity that has received a transfer payment, or has been authorised to receive a transfer payment, under a transfer payment program that is specifically targeted to Indigenous people or has an element specifically targeted to Indigenous people, for the targeted set of activities in relation to climate change programming and the implementation of CIRNAC's sustainable development initiatives. Eligible recipients include bands/settlements (land, reserves, trusts); First Nations/Innu/Inuit governments referred to in a self-government or land claims agreement, district councils/chief councils, tribal councils, and regional or national level Indigenous organizations.

All eligible recipients must have the legal capacity to enter into a contribution agreement.

4.2 Eligible initiatives and projects

Scientific and knowledge development component: Eligible initiatives and projects are those that increase participation and knowledge of Indigenous peoples, Northern individuals and organizations and other individuals and organizations, including through improved infrastructure supporting access to educational opportunities in the North.

Northern contaminated sites program: Eligible initiatives and projects are all activities related to the assessment, remediation or management of contaminated sites.

Climate change program: Eligible initiatives and projects are those that:

  • assess and identify risks and opportunities to Indigenous and Northern communities related to the impacts of climate change
  • support the development and implementation of climate change action plans focusing on economic, social, cultural, environmental, and security issues
  • support the development of tools to increase the capacity of Indigenous and Northern communities to address the impacts of a changing climate

Clean energy program: This eligible program has two components: (1) Eligible initiatives, projects and activities are those that lead to the reduction of greenhouse gas (GHG) emissions arising from electricity and heat generation in Indigenous and northern communities through the development and implementation of energy efficiency and renewable energy projects, inclusive of all project development stages; and (2) hydroelectricity project feasibility and planning. Eligible initiatives include related core activities and capacity building initiatives.

Northern Participant Funding Program: Eligible initiatives are all activities relating to the provision of knowledge and/or information to impact assessment and regulatory processes conducted by co-management boards in areas administered by land claim agreements and which are also ineligible for other federal participant funding programs.

5. Type and nature of eligible expenditures

Expenditures, which are, in the opinion of the department, reasonable, consistent with program or funding guidelines and departmental policies, and necessary for the recipient to carry out an approved core activity or project/activity that will lead to expected results for infrastructure, consultation, core activities, research, management, remediation or capacity building.

Core Activity: Include ongoing support or administrative functions which enable eligible recipients to operationalize and carry out ongoing types of activities.

Project: An activity or series of activities that has a beginning and an end. A project is required to produce defined outputs and realize specific outcomes in support of a public policy objective, within a clear schedule and resource plan. Projects may include development of specific physical undertakings as well as other activities including research, program delivery, capacity building, workshops, meeting facilitation, and other activities to improve social outcomes.

Operations and maintenance for the Clean Energy Program, is limited to a maximum of five years after commissioning; up to a maximum of 5% of total capital cost per project per annum and activities.

Eligible expenditures may include the following costs:

Costs Core activities Projects
Salaries, benefits and wages (and Northern benefits where they apply) for employees and casual workers and honoraria (provided to those sitting on boards and committees and are not in a salaried position) Yes Yes
Staff training, training/workshops Yes Yes
Professional services/fees such as legal, engineering, project management, accounting, audit and evaluation Yes Yes
Facility rental (including equipment rentals, conference and meeting rooms, accommodation, space rentals, rental of office and meeting space) Yes Yes
Equipment and facilities necessary for implementation of projects Yes Yes
Data collection, analysis and reporting Yes Yes
Contract costs for administrative services Yes Yes
Travel, including meals and accommodations Yes Yes
Transportation - Yes
Daily living allowance - Yes
Research, site testing - Yes
Community information initiatives - Yes
Construction costs - Yes
Operations and maintenance (including insurance, snow clearance, fault repairs, equipment replacement, day-to-day monitoring of equipment, tracking performance and results) Yes Yes

6. Total Canadian government funding and stacking limits

Where possible and appropriate, the costs of an eligible activity will be shared with the recipient and/or government and/or the private sector. However, where the sharing of costs is not feasible, total government funding (federal, provincial/territorial and municipal funding for the same eligible expenditures) must not exceed 100% of eligible expenditures.

Recipients are required to declare any and all prospective sources of funding for the program or project, inclusive of all federal, provincial, territorial or municipal governments (total government assistance) and other sources that are expected to be received.

In the event that actual total government assistance to a recipient exceeds the stacking limit, CIRNAC will adjust its level of funding (and/or seek reimbursement, if necessary) so that the stacking limit is not exceeded.

7. Method for determining the amount of funding

Climate change programs, northern participant funding program and for the scientific and knowledge development component: Funding for this component issued as a contribution. The amount of contribution funding is determined based on proposals submitted and validated based on the critical review of the amount requested. The approval process will leverage the experience and specialized knowledge of the reviewers. Assessments will be conducted on the proposals and budgets in order to recommend the amount of funding based on eligible expenditures that are well justified and reasonable for the scope of proposed activities.

Clean energy program: Funding for this program can be issued as a grant or a contribution. The method for determining the amount of grant or contribution funding is based on a proposal submitted and validated through a review process. The proposal will be assessed by expert reviewers against program objectives/priorities and the funding amount will be based on eligible expenditures that are reasonable for the scope of proposed activities. The maximum amount payable in core funding shall not exceed $5 million per recipient annually.

Northern contaminated sites program: Funding for this program is released as a contribution. The amount of contribution funding is determined based on past costs or proposals submitted and validated based on critical review of the amount requested.

8. Maximum amount payable

Climate change programs, the Northern contaminated sites programs and the safe use, development, conservation and protection of the North's natural resources component: The maximum amount payable to any recipient annually will not exceed $20,000,000 per project, except in the case of core funding where the maximum amount shall not exceed $5,000,000, and in the case of remediation activities the maximum amount shall not exceed $10,000,000, except for the Faro Mine Remediation Project, where the maximum amount shall not exceed $100,000,000.

Clean Energy Program: The maximum amount payable for a grant under the reduction of GHG’s component of this program shall not exceed $1,000,000 per recipient annually. The maximum amount payable for a grant under Planning and Feasibility for Hydroelectricity and Grid-Interconnection component of the Clean Energy Program is $10,000,000 per recipient annually. The maximum contribution amount payable shall not exceed $20,000,000 per recipient annually.

Scientific and knowledge development component: The maximum amount payable to any eligible recipient will be $3,000,000 annually, except in the case of infrastructure activities related to education and scientific knowledge development where the maximum amount shall not exceed $20,000,000 annually per project, and in the case of payments to territorial governments with respect to advanced payments against agreed to devolution costs, where amounts payable annually will align with levels negotiated between Canada and the respective territory.

Northern Participant Funding Program: The maximum amount payable to any eligible recipient will not exceed $150,000 annually per project.

9. Basis on which payments will be made

Contribution funding

Contributions are normally paid on the basis of achievement of performance objectives or as reimbursement of expenditures incurred. However, advance payments may also be made based on a cash flow forecast from the recipient in accordance with the Cash Management section of Treasury Board's Directive on Transfer Payments. Advance payments include eligible expenditures directly related to the project, may be retroactive to the date of the approval letter.

Where advance payments are necessary, they are limited to immediate cash requirements of the recipient. Monthly, quarterly or annual progress payments may be based on expenditure claims and a final payment of any sums due following receipt of the final claims and a final payment of any sums due following receipt of the final claim and activities report and, if considered necessary by the department, following completion of a financial audit. Multi-year contribution agreement(s) may be determined based on the recommendation of the reviewers.

Hold backs will be applied in a manner consistent with Treasury Board's Directive on Transfer Payments and will take into account the management of risks and prudent cash management practices.

Fixed or flexible contribution funding approaches will be used for Indigenous recipients where appropriate, in accordance with Appendix K of the Directive on Transfer Payments.

Grant funding

CIRNAC will enter into a grant agreement with each recipient ranging in duration from annual to five years. The grant agreement will contain the following terms and conditions:

  1. Program/funding objectives;
  2. Eligible expenditures;
  3. Basis and timing of payments: CIRNAC reviews the expenditure plans and, if it is accepted, subsequently establishes the payment schedule. Grants are paid as advance payments and are made based on a cash flow requirements from the recipient in accordance with the cash management section of Treasury Board’s Directive on Transfer Payments. Any grant in excess of $250,000 will be paid in instalments, unless the full amount is required in a single payment to meet the objectives of the grant, in accordance with Section 6.4.2 of the Directive on Transfer Payments. Advance payments may include eligible expenditures directly related to the project incurred and retroactive to the date of the approval letter;
  4. Accountability requirement: The recipient shall maintain accounts and financial and non-financial records for the obligations in the agreement. The Recipient shall not disburse funds received pursuant to this Agreement or any part thereof for any purpose other than those contained in the agreement.

10. Application requirements and assessment criteria

Meeting the following criteria does not guarantee funding.

10.1 Application requirements

Contribution funding

All programs administered under this set of terms and conditions are proposal-based. At a minimum, applicant proposals must:

  • establish eligibility (as outlined in Section 4.0)
  • establish relationship of proposed projects, initiatives, activities to program objectives and priorities as outlined in these terms and conditions and published program guidelines
  • include a detailed implementation plan which comprises a description and costing of activities and/or project initiatives as well as concrete deliverables/milestones
  • provide details on all sources of financial support (for example, from all federal government departments and organizations, other levels of government, the private sector, the applicant and other sources)
  • provide a payment schedule including basis and timing of payment
  • outline an evaluation plan and/or criteria for the measurement of success

Where applicable, in order for projects to receive funding, the eligible recipient will provide the department with program specific annual reports and financial statements which include the necessary information, as specified by the department in the duly signed agreement, sufficient to verify adherence to the program terms and conditions and demonstrate results for the most recently completed fiscal year. The purpose of the reports is twofold:

  • to aid in determining the applicant's ability to successfully complete the project; and
  • to review, where applicable, the degree to which, past funding by the recipient was spent in achieving its project objectives.

Grant funding

All programs administered under this set of terms and conditions are proposal-based. At a minimum, applicant proposals must:

  • establish eligibility (as outlined in Section 4.0)
  • establish relationship of proposed projects, initiatives, activities to program objectives and priorities as outlined in these terms and conditions and published program guidelines
  • include a implementation plan which comprises a description and costing of activities and/or project initiatives as well as concrete deliverables/milestones
  • provide a payment schedule including basis and timing of payment

10.2 Assessment criteria

Geographic distribution may be considered in the selection process (where applicable). At a minimum, proposals will be assessed on the following criteria:

  • capability: The experience and capacity of the recipient (and identified project leader, where applicable) to manage the implementation of activities within their proposal successfully and complete the project/initiative in a timely manner
  • consultation and commitment: The extent to which the proposal has the support of relevant organizations and/or community(ies)
  • implementation activities: The extent to which the proposal aligns with eligible activities and meets program objectives. The assessment process will consider timelines, cost-effectiveness and the degree to which activities will result in expected outcomes
  • project management: How the initiative/project will be managed, including project governance, management of project scope, human resources, risk management, deliverables, and project monitoring, control and reporting
  • project costs: A demonstration of a realistic assessment of estimated total costs and a justification of the level of funding required
  • cooperation and partnerships: with other governments, employers, community-based organizations and interested organizations to encourage strategic partnerships, minimize overlap and duplication and operate in synergy with other related social and political devolution programs

11. Due diligence and reporting

Contribution funding

CIRNAC has internal control procedures, systems and human resources to ensure due diligence is properly exercised when verifying eligibility for program funding under this authority, assessing the recipient's capacity to manage or develop and deliver programs and services, verifying financial management capability, authorizing spending authority and approving payment requisitions, and for managing and administering the program. This responsibility is shared by CIRNAC headquarters and regional offices.

A general assessment is also conducted for all recipients regardless of the nature of their funding agreements to assess their risk level in managing funding received from the department. The results of this general assessment may impact a recipient's ability to access certain funding approaches as well as reporting frequency.

Contribution recipients, where applicable, in order for projects to receive continued funding, the eligible recipient will provide the department with program specific annual reports and financial statements which include the necessary information, as specified by the department in the duly signed agreement, sufficient to verify adherence to the program terms and conditions and demonstrate results for the most recently completed fiscal year.

Grant funding

No specific reporting is required for grant, other than the recipient shall maintain accounts and financial and non-financial records pertaining to the agreement and retain these accounts and records, including all original supporting documentation, for a period of (7) years from the end of the fiscal year covered by the agreement.

12. Official languages

In cases where the program supports activities that may have an impact on members of either official language community, a description, where appropriate, of how the transfer payment program will respect the obligations of the Government of Canada as set out in Part VII of the Official Languages Act.

13. Intellectual property

The recipient shall fulfill any requirements relating to intellectual property set out in the schedules to the funding agreement.

14. Repayable contributions

Provisions for repayable contributions do not apply. Any contributions made to private firms under these programs are not intended to generate profits or to increase the value of a business and are therefore non-repayable.

Repayment of contributions is not required where the recipient is an Indigenous community, Indigenous controlled business or Indigenous recipient whose articles of incorporation do not permit dividends to be paid or distributed to shareholders or there is no intent to distribute dividends.

15. Redistribution of contributions

The recipient may delegate authority or contribution funding to an agency or a third party authorized to act on behalf of the recipient. Where the recipient transfers funding to an agency or third party to provide, in whole or in part, programs, services or activities for which funding is provided the terms will be evidenced by a written agreement between the recipient and the agency or third party that sets out the obligations and accountabilities of the agency or third party, including maintenance of records, reporting and right of access for purposes of audit or evaluation.

Where a recipient delegates authority or further distributes contribution funding to an agency or a third party (such as an authority, board, committee, or other entity authorized to act on behalf of the recipient), the recipient shall remain liable to the department for the performance of its obligations under the funding agreement. Neither the objectives of the programs and services nor the expectations of transparent, fair, and equitable services shall be compromised by any delegation or redistribution of contribution funding.

Recipients have full independence in the selection of such third parties and will not be acting as an agent of the government in making distributions.

16. Other terms and conditions

Definitions

The following definitions are pertinent to this authority:

North means Canada's 3 territories and offshore areas North of the 60th parallel. In the case of consultation, research and capacity building activities, the geography of the North will include the land and ocean based territory that lies North of the southern limit of discontinuous permafrost from Northern British Columbia to Northern Labrador, and could include the eight Arctic nations. In the case of work being undertaken in international fora, funding will be restricted to Canadian-based activities. In the case of climate change and clean energy programs, the North is defined as Yukon, Northwest Territories, Nunavut, Nunavik region, Nunatsiavut region and any other northern area which, in the opinion of the department, requires similar program or policy support as the previously listed areas.

Indigenous communities means First Nation, Métis and Inuit communities. These include bands/settlements (land, reserves, trusts): First Nations/Innu/Inuit governments referred to in a self-government or land claims agreement, district councils/chief councils, tribal councils, and regional or national level Indigenous organizations.

17. Effective date of terms and conditions

These terms and conditions will come into effect on December 15, 2021.

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