The findings and associated lessons learned from this assessment are presented below. April 12, 2018. The expected results of this Policy was that administrative requirements on applicants and recipients, which are required to ensure effective control, transparency and accountability, are proportionate to the level of risks specific to the program, the materiality of funding, and to the risk profile of applicants and recipients. On average, 97% of the financial resources ($1.4 billion) under the Program were allocated directly to eligible recipients in the form of transfer payments, leaving approximately 3% of the annual budget ($41.7 million) to cover operating costs. However, in 2014-15, while production capacity levels for ethanol remained stable (reported at 1,818 million litres), those for biodiesel decreased by half (reported at 217 million litres) because of the high number of terminated contribution agreements. The TB Policy on Transfer Payments came into effect on October 1, 2008, 6 months after the Program`s official launch. In 2010, the Government of Canada announced it would provide up to C$79.75 million in funding over seven years to GreenField's corn ethanol facility in Varennes through the ecoENERGY for Biofuels program. Harnessing an online application portal and CRMS would increase ease of use and efficiency for both proponents and future program administration. The viability of the biofuels industry was therefore very dependent on feedstock costs. The Program utilized third-party assurance to corroborate the production volume incentive annually, which mitigated inherent program risk. The initiative provides operating incentives to producers of renewable alternatives to gasoline and diesel The scope of the assessment did not include the following: 28. There are 16 ethanol producing plants that have signed the contribution agreements under the program. In December 2016, the Government of Canada announced that it would work with stakeholders to develop a new Clean Fuel Standard, which would encourage the use of cleaner fuels in many sectors of the economy, including transportation, building, and industry. The ecoENERGY for Biofuels program supports the production of renewable alternatives to gasoline and diesel and encourages the development of a competitive domestic industry for renewable fuels. 22. In particular, the variable declining incentive rate was changed to a fixed declining incentive rate. While not an NRCan requirement, the ecoEBF Program administration explored the feasibility of deploying an online client relationship management system, in an effort to increase efficiencies within the proponent reporting process. EcoEnergy Innovation Initiative EcoETI ! The goal of this joint project was to produce a value-added assessment that limits the duplication of efforts required to conduct separate audit and evaluation projects. As a mitigation strategy, indirect measures were used to estimate the contribution of the program to the overall industry production and the longer-term viability of participating facilities. The Program collected various reports and information from the proponents on a regular basis for monitoring purposes, mainly through email communication. As one component of the Government of Canada’s Renewable Fuels Strategy, there is clear evidence that, at the time it was designed, the ecoEBF Program addressed a demonstrable need to assist Canadian biofuel companies in developing capacities to produce biofuels and improve the competitiveness of the Canadian biofuel industry. Christian Asselin                                                                 City-Farm Biofuel Ltd in Delta, B.C., negotiated an incentive agreement with the NRC under the ecoEnergy program. 43. Canada does not have any binding national or provincial targets concerning the share of renewable Program objectives were aligned with federal jurisdiction as described in the Department of Natural Resources Act and Section 21 of the Energy Efficiency Act (EEA). In the course of such corrections, attention should be paid to formally update performance frameworks (see paragraph 51). and biofuels, such as a . The term blend wall refers to short-term technical constraints . The assessment team noted that the Strategy was last updated in 2013, after which time there was no documented evidence of further updates. It made investment in production facilities more attractive by partially offsetting the risk associated with fluctuating feedstock and fuel prices. Beyond its 2012 production and capacity targets, the Program was expected to contribute to produce at least 2 billion litres of ethanol and 500 million litres of biodiesel annually by 2017, for a total of 2.5 billion litres of renewable fuel production. In accordance with Program parameters and subject to funding availability, the ecoENERGY for Biofuels Program entered into non-repayable Contribution Agreements with successful recipients meeting the Program's criteria. Further chemical refining of the dewatered fermentation broth may then take place depending on the final chemical or biofuel.Thus, this process can also serve as a water treatment facility, while producing valuable chemicals or biofuels. 2.3   Effective processes were in place for the monitoring and reporting of the contribution agreements, and results were reported to senior management. 51. The government has also provided $500 million to Sustainable Development Technology Canada for the creation of the NextGen Biofuels Fund. Graph 1. Such a tool could streamline proponent reporting and thereby reduce reporting burden for proponents. The criteria guided the assessment fieldwork and formed the basis for the overall conclusion. The regulations were expected to require close to 3 billion litres of renewable fuel by 2012. The approach and methodology followed the Institute of Internal Auditors' International Standards for the Professional Practice of Internal Auditing; the Government of Canada’s Policy on Internal Audit; and the  Standard on Evaluation which establishes the requirements on the Mandatory Procedures for Evaluation  in accordance with the Government of Canada’s Policy on Results. Found inside – Page 349ecoEnergy for Biofuels payments essentially replaced the previous excise tax exemptions offered by the federal government of Canada, which expired in 2008. Furthermore, the ecoEnergy for Biofuels program provides something of an ... 76. Canada’s Renewable Fuels Strategy has four key elements including: 18. As reported through key informant interviews, these changes were generally seen by Program proponents as an improvement because they were less burdensome and more appropriate to the proponents’ circumstances. Found inside – Page 91Supporting the expansion of Canadian production of renewable fuels: The CAD 1.5 billion ecoENERGY for Biofuels Program provides production incentives to Canadian biofuel producers. The programme aims to support 2 billion litres of ... Internal auditors and evaluators conducted the project with independence and objectivity as defined by their respective professional standards and requirements. 83. The reporting requirements of high-value G&Cs programs can be quite complex and challenging for proponents throughout the life-cycle of a long-term program. The current federal incentive rate for ethanol production in dollars per liter is 0.03, and for renewable diesel/biodiesel production is 0.04. These changes were examined within a 2011 internal audit and a 2012 evaluation. These client focussed online solutions have been recognized by the Department as a best practice. These changes were examined within a 2011 internal audit and 2012 evaluation. Sub-Objective 4: To assess whether the Program close-out is performed effectively. The government on Wednesday announced it will invest up to $31.14 million over six years in Lethbridge, Alta.-based Kyoto Fuels Corp. to produce biodiesel from converted vegetable oil, cooking oil and/or animal fat. Such factors were mentioned in literature and by proponents during interviews and were regularly discussed with them through Program quarterly conference calls. To formulate a lessons learned summary that could support decision making for the design and implementation of future programs. Allesun is a company in Canada and a professional manufacturer and wholesaler since 2004 in solar cell and modules,PV stand alone systems and pocket power,solar lighting system field. The examined enterprises’ degree of vulnerability to these variables varied according to several internal and external factors, but at one time or another, all four were unable to make a profit from their incented biofuel production. 37. In February 2013, the renewable fuels industry was informed that the Program would not be redesigned, that unused funds would not be used to enter into new agreements; and that the Program would remain closed to additional entrants. 2014-15 ethanol 1,739, biodiesel 128. Diesel fuel and heating oil will. 75. On December 23, 2017, ECCC published a Notice to interested parties on the Clean Fuel Standard regulatory framework, in which it indicates that the volumetric requirements of the federal Renewable Fuels Regulations would be maintained in the short term, but that in the longer term the Clean Fuel Standard would replace the Renewable Fuels Regulations. This evaluation of the ecoENERGY for Aboriginal and Northern Communities Program (hereafter referred to as ecoENERGY) was conducted in accordance with the Treasury Board's Policy on Evaluation and in time for consideration of program renewal in 2014-15. The second most frequent reason for termination (in 5 cases) was the proponent’s voluntary withdrawal from the program. 56. The ecoEnergy program, which is budgeted for up to $1.5 billion over nine years, is taking applications from new and existing biofuel producers until the end of this month. 29. 74. The assessment found some variability in the frequency of recipient audits conducted, however, not sufficient frequency to reflect the inherent variability of individual proponent risk. Among the 26 plants composing the Canadian biofuel industry and producing ethanol, biodiesel, biocrude or methanol, 21 had claimed incentives from the ecoEBF Program at one time or another during the period covered by the Program. Found inside – Page 274in wind, solar, and biomass have come from provincial commitments and programs. ... ecoENERGY for Biofuels The Harper government announced in 2007 a 9-year incentive scheme to increase biofuel production in Canada. While some targets were only partially met, findings indicate that the Program has contributed to an increase of domestic production and the development of a competitive domestic renewable fuels industry. Found inside – Page 20In July, the Canadian Government announced a new biofuel support policy, the “ecoENERGY for Biofuels” program, and allocated $1.5 billion over 9 years to encourage the development of ethanol and bio-diesel industries. 1.7. Expected outcome . With this objective in mind, Departments should actively seek out solutions to streamline application and funding processes for all G&Cs programs. * April 1 of a year to March 31 of the following year. Found inside – Page 71... sets requirements for fuel producers and importers Credit program for establishment of projects for heat, ... for the production of biofuels (per liter of biofuel produced) – tax incentive EcoEnergy Innovation Initiative: boost ... Found inside – Page 164These measures include : • $ 1.5 billion for the ecoENERGY for Biofuels program to provide operating assistance to renewable fuel producing facilities . • $ 500 million for the NextGen Biofuels Fund to encourage the construction of ... The ecoEBF Program officially launched on April 1, 2008, and was completed on March 31, 2017. The digital mosaic of Canada that appears on the cover of this publication is produced by Natural Resources Canada (Canada Centre for Remote Sensing) and is a composite of individual satellite images. Individual provinces also The following service standard applies in the case where the invoice received is acceptable to the Minister in that it is complete as per the terms of the contribution agreement, no component of the invoice is in dispute and where all conditions to issuing payment have been met, per the contribution agreement (e.g., Canadian Environmental Assessment Agency requirements). 10. The ecoEnergy for Biofuels program supports the production of renewable alternatives to gasoline and diesel and encourages the development of a competitive domestic industry for renewable fuels. 48. Announced in 2007, the initiative will make investment in production facilities more attractive by partially offsetting the risks associated with fluctuating feedstock and fuel prices. 86. Also, producers that benefit from an integrated business model, whereby the parent company is a guaranteed purchaser of the biofuel given its obligation to blend renewable fuels under federal and provincial mandates, “may be able to withstand prolonged periods of low or negative profits from their ethanol operations, given that their parent companies view this as a compliance option that may be preferable to purchasing from third parties”. Found insideHowever, by 2013, enthusiasm for subsidizing biofuels appeared to be waning, as the government announced that it wouldno longer consider applications for its “ecoEnergy for Biofuels” subsidy program. The government's significant ... 53. Found inside – Page 745Another program in support of the Renewable Fuels Strategy is Un autre programme à l'appui de la Stratégie sur les carburants the ecoENERGY for Biofuels Initiative ( ecoENERGY ) " man- renouvelables est le programme écoÉNERGIE pour les ... 8. 61. The program provides an operating incentive for facilities that produce renewable alternatives to gasoline and diesel. Future G&C programs would benefit from considering these challenges when designing and managing their programs. X axis financial year, Y axis millions of litres. (Earlier post.) Due to the nature of its activities, the ecoEBF Program adopted a production incentive model whereby proponents were provided an incentive for the portion of total sales, in litres, of renewable alternatives to gasoline and/or diesel that was produced in Canada, accepted under the Program, and sold by the proponent during the reporting period. The development of a Program Risk Management Strategy (PMRS) was contracted out. The TB Policy on Transfer Payments stipulates that recipient auditing should reflect the risk profile of the recipients. 95. 96. 1. However, due to market challenges, several producers were unable to meet their contractual terms and their agreements were terminated before their scheduled end dates. Found insideEthanol manufacturers have been enjoying a CAN$0.10/L incentive rate since April 2008, thanks to the ecoENERGY for Biofuels Program. Starting from January 2011, however, the incentive rate started to decline by CAN$0.01 per year until ... NRCan determined the number of litres for which a recipient could claim under the Program, according to Program parameters. 38. 25. Unfortunately, these projects do not have access to the ecoENERGY incentive for biofuels . The assessment was planned and conducted by a joint team, with representatives from both groups. Unfortunately there is $473 million remaining in the program's $1.5 billion budget, so there will be . PERD-BEST Program of Energy Research and Development, Bio-based Energy Systems and Technologies PPGTP ! 87. ecoENERGY for Biofuels program over nine years and recognizes that the increased use of biofuels contributes to reducing Canada's greenhouse gas emissions as well as creating clean energy jobs for today and in the future. In the absence of such information and of a formal lever requiring proponents to continue reporting after their contribution agreement ended, the Program provided industry-wide data from multiple sources, i.e. There is widespread consensus among key informants that the Program addressed a demonstrable need for financial support of Canadian biofuel companies to develop their capacities to produce biofuels and improve the viability of the Canadian biofuel industry. The Canadian Federal program called ecoENERGY for biofuels that started in 2008 with incentives of CAD 0.10 per litre for ethanol and CAD 0.26 per litre for biodiesel is gradually phased out with payments reduced to CAD 0.03 and CAD 0.04 respectively for ethanol and biodiesel. Furthermore, according to Program files, a total of 38 contribution agreements were signed with proponents (17 agreements with ethanol producers and 21 with biodiesel producers), thereby exceeding the Program’s target of 20 agreements. Payment of an operating incentive was made only to recipients who had signed a Contribution Agreement with Natural Resources Canada (NRCan) and had completed an environmental assessment to the satisfaction of a federal authority. A federal biofuels incentive fund has followed through on its contribution agreement to support a Hamilton plant making biodiesel from plant oils and animal fats.