I. Title of the Best Practice

II. Overview of the Best Practice

A. DESCRIPTION:
PERD is a federal interdepartmental R&D program focused on the economic and environmental impacts of the non-nuclear energy sector. PERD supports and complements a wide range of energy science and technology development initiatives undertaken by eleven federal departments and agencies in Canada. The Program supports the development of a range of environmentally and economically sustainable energy production and end-use technologies in partnership with industry.

PERD is based on a unique and extensive network of scientists, engineers and managers who identify and discuss energy issues, develop strategies, examine priorities, discuss technical progress, review proposals, perform R&D, collaborate internationally, etc.

PERD supports a portfolio of the following types of R&D:

• the continuing knowledge base to develop codes and standards, to resolve present technical problems and to provide technical advice for policy development. This is most important in the short to medium term.
• commercial development of technologies with the private sector which can be applied in the medium term. Some of these technologies could also be applied in the short term.
• longer term high risk applied research in conjunction with the private sector, universities and provinces to develop the next generation of technologies for the medium to longer term. Some of this research could also lead to applications in the short term.

1. ORGANIZATION:
The projects funded under PERD are presently organized into the following five Tasks:

• Task 1 Energy Efficiency
• Task 2 Energy and Climate Change
• Task 3 Transportation
• Task 4 Renewable Energy Sources
• Task 5 Hydrocarbons

The Program is being restructured from the broad Task areas into more focused Strategic Directions. The new structure will be in place in April 2000.

Task 1 - Energy Efficiency
In energy efficiency, PERD serves a very broad client base in virtually all sectors of the economy. Advice from various clientele is sought in a variety of fora including external advisory committees to participating departments, workshops and expert meetings. One of the programs of the Task supports technology development in all areas of energy efficiency with individual firms or consortia through repayable loans.

The R&D is presently focussed on:

• cross-sectoral technologies such as heat management, drying, combustion and electrotechnologies which are applicable in a wide range of industries
• energy efficient buildings (large commercial buildings, residences and community systems) with clean indoor environments
• primary production in resource industries (forestry, agrifood and fisheries)

Task 2 - Energy and Climate Change
In the energy and climate change area, OERD draws together representatives from many disciplines to address key issues facing Canada. Guidance is drawn from direct and indirect liaison with many national and international activities, including those of the Canadian Climate Program Board.

The R&D is presently focussed on:

• greenhouse gas cycles and storage, needed to understand the fate of energy-sector GHG emissions
• greenhouse gas abatement technologies in order to capture and dispose of GHGs after they are formed - capture can be from source or from the atmosphere
• climate change prediction and detection, to distinguish the anthropogenic signal from natural variation
• impacts of possible climate change on the Canadian energy sector

Task 3 - Transportation
In the transportation area, all major projects are overseen by steering committees having federal, provincial and industrial members. For example, the advice of the Canadian Gas Association, the Canadian Oxygenated Fuels Association and the Electric Vehicle Association of Canada is sought and considered in the planning of research activities dealing with automobile fuels.

The R&D is presently focussed on:

• fuels technology development for alternative transportation fuels ( natural gas, propane, alcohols, biofuels, electricity and hydrogen) to gain wider market introduction
• energy efficiency by transportation modes (land, marine, air and intermodal transportation)
• infrastructure (development of standards and technologies required for efficient, cost effective fuelling infrastructure for alternative fuels)
• health and environmental impact (health risks of using alternative transportation fuels and sources and toxicity of particulates from combustion emissions).

Task 4 - Renewable Energy Sources
With the exception of bioenergy, the renewable energy sector is mostly made up of small and medium-sized enterprises. PERD provides the forum for helping direct Canadian R&D efforts to improve, commercialize and utilize technologies through programs, consortia, standards development, demonstrations, and technology transfer.

The R&D is presently focussed on:

• energy from biomass, including municipal solid wastes - resources are vast in all regions of Canada and applications are diversified (heat and electricity generation, biofuels)
• hydroelectricity, mostly small-hydro - to reduce costs of equipment and address engineering, geotechnical and environmental issues faced by hydroelectric developments
• solar energy (active solar heating and photovoltaics) - to improve performance and reduce costs
• wind energy - to develop more efficient turbines
• hydrogen production from renewable energy sources (water electrolysis) - to increase performance and reduce costs

Task 5 - Hydrocarbons
In the hydrocarbon producing sectors, PERD serves a diverse client base in the oil sands and heavy oil, coal, natural gas, and conventional and frontier oil industries. Small and medium-sized enterprises (SMEs) in the energy industry are also important clients, particularly in the related services and environmental technologies sectors, and in specialist engineering disciplines.

The R&D is presently focussed on:

• environmental and efficiency aspects of extraction and separation, and upgrading technologies for oil sands
• integrity of pipelines to address safety and environmental aspects and fulfill federal regulatory responsibilities
• environmental and safety aspects of frontier (primarily East Coast) oil and gas
• a small effort is devoted to environmental aspects of coal, and to environmental aspects of conventional oil and gas operations in the Western Sedimentary Basin

2. HOW ACCESSED:
Funding is provided through the participating federal R&D departments and agencies. These departments fund a variety of energy R&D projects and programs with the private sector (companies, consortia and alliances), universities, provincial governments, research organizations, or internally in their own research laboratories.

Each Task has an interdepartmental committee which designs, reviews and assesses the portfolio of R&D activities in its respective Task area. These committees can have members from a variety of sectors including: industry, academia, and provincial and federal governments. These committees recommend to the Office of Energy Research and Development a list of projects or programs to meet their available funding. Once a project has been approved, participating departments are responsible for achieving the deliverables for each project.

About 60 percent of PERD resources (over $36 million) is contracted out to a variety of industries, utilities, provincial research organizations and universities across Canada. The remaining research funds are allocated to internal programs in participating departments.

3. MECHANISM OF SUPPORT:
Funding for approved projects is provided under Memoranda of Understanding (MOU) signed between NRCan and all participating PERD departments. These MOUs establish a framework for collaboration between NRCan and participating departments. They outline the scope of activities supported by PERD, the role and responsibilities of the parties, the mechanism to transfer funds from NRCan to other departments, reporting requirements, publications and intellectual property.

In turn projects with the private sector are supported through contracts, grants and repayable loans.

4. INTERNATIONAL ACCESSIBILITY:
PERD has fostered strong linkages to international energy R&D activities through: a Memorandum of Understanding with the Department of Energy, U.S.A., the collaborative R&D Program of the International Energy Agency, an S&T Agreement with the European Union and the Energy Working Group of the Asia-Pacific Economic Community.

B. Reason for Inclusion
PERD was included for several reasons: its focus on environmentally and economically sustainable technology development, its complementary support for R&D with other partners, its inclusion of all sectors of the economy, the networks it has engendered and its international linkages with domestic activities.

R&D activities supported by PERD influence the range of technologies available to consumers and producers of energy, and increase the diversity and flexibility of energy supply systems.

III. Categorizing the Best Practice

1. Classification(s) (Indicate main classification(s) only.)
( X ) Regulatory Approach (Policy approaches - regulations, incentives, etc)
( X ) Practical Action (Action undertaken independently by a social actor)
( X ) Social Network Mechanism (Cooperative structure)

2. Social Actor(s) Involved (Indicate main social actor(s) only)
( X ) Citizens
( X ) Central government
( ) Local government
( X ) Business

3. Sector(s) (indicate main sector(s) only.)
( X ) Energy
( X ) Household
( X ) Transportation
( X ) Industrial Enterprises
( X ) Other (Non-Industrial) Business
( X ) Agriculture / Land Use / Forestry
( ) Other

4. Target Greenhouse Gas(es)
( X ) CO2
( X ) CH4
( X ) N2O
( X ) HFC
( X ) PFC
( X ) SF6
( ) Other (Please specfy.)

IV. List of Attachments

V. Please indicate a person to contact for more information about this Best Practice.

Contact Person:	Graham R. Campbell
Title:	Director
Organization:	Office of Energy Research and Development
	Natural Resources Canada
Email:	grcampbel@nrcan.gc.ca
Tel:	(613) 995-8860
Fax:	(613) 995-6146
Address:	Natural Resources Canada 580 Booth Street Ottawa, Ontario Canada K1A 0E4

Notes: Please visit the website at nrcan.gc.ca/es/new/perd.htm for more information.