1.1 Background and Scope

Environment Canada frequently works with other federal departments, other levels of government, non-governmental organizations, the private sector, universities and individual Canadians to advance the Department's objectives. These relationships typically involve the sharing or exchange of resources that enhance the Department's capacity to fulfill its mission and respond to the needs of other organizations. Environment Canada derives revenue from some of these relationships through the recovery of costs, user fees and the licensing of intellectual property. In other cases, Environment Canada derives a benefit equivalent to revenue in the sense that external arrangements enable the Department to deliver some programs at reduced cost and/or greater impact. These latter activities may achieve these benefits through collaborative arrangements that allow cost-sharing, pooling of resources and/or access to specialized expertise and facilities.

For purposes of this policy, the term "revenue and collaborative arrangements" will be used to describe the range of activities defined below:

• User charging: Charging a fee to, or recovering costs from, those specific users who receive a direct benefit from a departmental service or product, which is beyond that received by the general public.

• Collaborative arrangements: Entering into a relationship with an organization or organizations having common objectives to share in or reduce program delivery costs and/or increase program effectiveness. This policy focuses on those relationships where Environment Canada is making a tangible commitment of departmental resources.

• Intellectual property licensing: Licensing external parties who will pay royalties to exploit intellectual property (e.g. environmental technologies, software, etc.) developed by, or on behalf of Environment Canada.

This policy addresses a departmental need for principles, terminology, authorities and guidelines for managing the unique opportunities and risks associated with revenue and collaborative arrangements. In particular, this document identifies overarching principles for establishing proper "business" relationships with outside organizations and the specific financial and administrative requirements that ensure the propriety of these activities, their value to Canadians, accountability of the parties and financial control. Additional sources of guidance and contacts are cited in Appendix A.

1.2 Why are These Activities Important?

Experience has shown that there are significant benefits associated with revenue and collaborative arrangements.

Extending Departmental Capacity and Impact

At Environment Canada our work is principally for the public good and resourced primarily through tax dollars. At times, Environment Canada can enhance its capacity to fulfill its public role by collaborating (e.g., sharing costs, pooling resources) with other organizations who may share one or more of the Department's objectives. In other instances, Environment Canada may extend its capacity to provide services beyond the public good by recovering from users the costs of providing specialized services. This may be particularly beneficial to these users when the Department has the expertise to provide a service not readily available in the private sector.

Fostering Capacity in Other Organizations

In part, Environment Canada collaborates in order to build both the scientific and technical capacities of other organizations working towards environmental goals.

Building Consensus

In addition to providing the Department with access to resources or expertise, collaborative arrangements should support consensus-building among other organizations, including other government agencies, communities and non-profit organizations. Collaboration should promote a culture of environmental responsibility, and help link knowledge to those who have the means to realize environmental objectives.

Supporting Canadian Industry

Canada's overall competitiveness in the global economy is enhanced by allowing Canadian industry access to the expertise of the federal government. The scientific and technological capacity of Environment Canada can be used to develop specialized products and services that support industry. For example, specialized meteorological and hydrological products and services can positively influence the profitability of weather-sensitive industries.

Transferring Environmental Technology

Generating much of Environment Canada's core research and knowledge requires long-term effort. Sometimes this effort results in the development of technology which can be successfully exploited by the private sector to solve environmental problems. At times, it may be appropriate to look to these firms to compensate the Department for its research and development investment through the payment of license fees and royalties.

Matching Services to Client Needs

Revenue and collaborative arrangements provide Environment Canada with a means for engaging clients/partners regarding the services they require. This can lead to the elimination of under-valued services and improvements in the delivery of those services most valued by our clients/partners.

1.3 Policy Rationale

Various internal reviews have identified the need to bring clarity and consistency to the ways in which Environment Canada conducts revenue and collaborative arrangements. Staff need guiding principles, clear criteria for decision-making, and flexible tools to conduct these activities in ways that respect Treasury Board and departmental policies, direction and authorities.

A number of discrete policies exist to guide departmental activities, but there is a need to update and harmonize this guidance if the Department is to assess and manage its efforts in a consistent manner. Without an overarching policy, revenue initiatives and collaborations may become somewhat arbitrary and uneven across the Department. Opportunities to realize the benefits of revenue and collaborative arrangements may be lost. Finally, lack of attention to a principled and controlled approach to working arrangements with other organizations creates risks related to inappropriate activity and financial liability.

In addition to the need for overarching policy principles, guidance is also required on the specific authorities and accountabilities associated with entering into revenue and collaborative arrangements.

This policy serves as a foundation for addressing departmental needs for improved financial and administrative accountability for revenue and collaborative arrangements. It establishes a common set of principles that frame departmental expectations concerning appropriate "business-like" behaviour when working with external organizations and individuals. It provides a rationale and standard set of definitions for the various mechanisms used for revenue initiatives and collaborations, and the authorities that allow them to be carried out. Finally, it clarifies roles and responsibilities for implementing revenue and collaborative arrangements.

This policy will establish the basis for improved monitoring of the application of revenue and collaborative arrangements throughout the Department. Such monitoring will enhance the transparency of various arrangements being established and provide assurance that proper control is being exercised over any financial and administrative risks.

1.4 Objectives

The primary objectives of this policy are to ensure transparency, fairness, and consistency in Environment Canada's revenue and collaborative arrangements, improve accountability, and allow better management of the related risks. The policy is not intended to change the level of these activities within the Department. Rather, it clarifies for the Department's managers what is expected of them when considering and entering into arrangements by providing:

• an overarching set of principles for establishing proper "business" relationships with outside organizations;
• a standard set of definitions and descriptions of these activities;
• a rationale for explaining to clients when and why the Department enters into these activities;
• an outline of the specific, relevant financial and administrative requirements; and
• an overview of the relevant authorities and accountabilities.

The policy draws on, and is supported by, a number of departmental and central agency policies and documents (see Appendix A). Additionally, a companion "toolkit" document will provide managers with step-by-step guidance on assessing opportunities, determining costs, and setting prices.