Regulators' Capacity Fund

Centre for Regulatory Innovation: The Regulators’ Capacity Fund

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Overview

The Regulators’ Capacity Fund (RCF) responds to calls from Canada’s business community, which has been vocal in its desire for regulators to give increased weight to economic and competitiveness considerations in the development and enforcement of regulations. From 2020-2022, the RCF supported 26 projects with over $8.9 million in funding.

A September 2022 off-cycle funding decision renewed the fund, providing $6.2M over three years (2022-2025) to further support regulators. The renewed fund has expanded to include projects that support post-pandemic resiliency/recovery efforts. A list of RCF supported projects can be found in the CRI Supported Project tab. A list of current projects that were funded in the first round of the RCF 2022-2025 can be found at the bottom of this page.

To help regulators improve their capacity to incorporate economic, competitiveness, and resilience considerations in the design and implementation of regulations, the aims of the renewed Regulators’ Capacity Fund are to:

enhance the capacity of regulators to accurately assess economic impacts of regulatory proposals, including impacts on competitiveness at sector and aggregate levels;

enhance the capacity of regulators to design and administer regulations in a manner that accounts for economic and competitiveness impacts, within the context of their overall objectives; and,
enhance the capacity of regulators to incorporate learnings from the ongoing pandemic response and adapt to rapidly-evolving regulatory landscapes to facilitate a system that is better equipped to mitigate future risks and respond to unanticipated developments, especially those related to climate change and public health.

The RCF supports departments and agencies in undertaking projects or initiatives, ranging in scope, that contribute to the enhancement of regulatory capacity. This involves supporting initiatives that would help regulators carry out their functions in a way that is conducive to economic growth. These initiatives would ultimately contribute to enhanced regulatory competitiveness in or beyond their respective sectors.

The Regulators’ Capacity Fund is overseen by the Centre for Regulatory Innovation, within the Treasury Board of Canada Secretariat’s Regulatory Affairs Sector. As part of the Government’s broader regulatory modernization agenda, the Centre promotes a federal regulatory framework that supports innovation and competitiveness.

Key Dates for Current Call for Proposals

February 28, 2023 – Application process open
April 18, 2023 – Deadline to submit proposals for 2023-2024 projects
Early spring 2023 – Assessment of proposals
Late spring/early summer 2023 – Funding disbursed to successful applicants

March 31, 2025 – Funding sunsets; projects must be completed

Key Documents

Available Funding

Total funding available per fiscal year for the Regulators’ Capacity Fund is outlined below.

Fiscal Year	Total RCF funding available
2022-2023	$1.2 M
2023-2024	$3 M
2024-2025	$2 M

There is no minimum or maximum amount for a funding request under the Regulators’ Capacity Fund; however, the amount requested must be justified with the scope of the project.

Eligibility

To be eligible for funding, proposed projects must clearly demonstrate how their funding request meets the criteria as outlined in the RCF Guide. Departments are highly encouraged to reach out to the Centre for Regulatory Innovation to discuss their proposed idea to determine its eligibility before they begin their application for funding under the RCF.

Applications to the RCF can be submitted by federal regulators such as departments, agencies, and organizations to receive funding in fiscal years 2023-24 and/or 2024-25. There is no minimum duration for a project under the RCF; however final completion of the project can be no later than March 31, 2025.

Click here to see a list of previous RCF projects and their case studies.

Applying for funding

In order to apply for the Regulators’ Capacity Fund, applicants must complete the proposal template which provides an overview and outline of the proposed project and applicant capacity to undertake the work. Further information on how to complete the proposal can be found in the RCF Guide.

Projects selected to receive funding under the Regulators’ Capacity Fund fall primarily under one of two groups based on how they support regulatory capacity for competitiveness:

Analysis-based (i.e. initiatives to enhance understanding of what needs to be done to improve the regime’s competitiveness, and to equip regulators with the relevant skills and information); and,
Solutions-based (i.e. initiatives to implement solutions that would develop capacity to administer regulations in a more cost-effective manner, which in turn, enhances the regime’s competitiveness).

All proposals must be submitted via email to the Centre for Regulatory Innovation. Receipt of proposals will be acknowledged via email. Please ensure that your email address is included in your proposal application. The CRI may be in touch with applicants during this process to discuss their submission.

Applicants are encouraged to apply as early as possible so that the CRI can provide feedback. At least one round of feedback is suggested. The deadline for submitting final proposals is April 18, 2023. If there is still sufficient funding for future years, the CRI will launch additional call(s) to solicit proposals.

Submitted proposals will be assessed to determine best fit with the overall objectives of the Regulators’ Capacity Fund. Successful applications will be determined based on the results of a competitive review process and budgetary considerations, as determined by the Assessment Committee (composed of TBS representatives). Successful proposals will be notified that they have been selected to receive funding under the Regulators’ Capacity Fund and will begin the process to draft a Memorandum of Understanding in order to obtain funds and initiate their project. Applicants that were not selected for funding will be notified.

Contact us

For additional information about this funding opportunity, including any assistance required to complete the application process, please contact the Centre for Regulatory Innovation

Current Projects

(Click here to see a list of completed RCF projects and the associated case studies)

The following are projects that were supported by the RCF.

Projects selected to receive funding under the Regulators’ Capacity Fund
Department/ Agency	Project Title	Project Description
Agriculture and Agri-Food Canada (AAFC)	A plan to address Canada-specific data gaps on residue left over from drone-based pesticide application	AAFC will lead a study to compare pesticide residue levels on crops applied using drones to traditional equipment that are approved for pesticide application. The results of the study will help determine the regulatory equivalency of drone-based applications to ground based and airplane-based applications to inform future regulatory decision-making.
Environment and Climate Change Canada (ECCC)	Improving and Streamlining Electronic reporting of Greenhouse Gas (GHG) (ECCC and Provincial Partners)	The Canadian Council of Ministers of the Environment agreed to work to minimize duplication and reduce the reporting burden for industry and governments. ECCC, with 6 other provinces, designed three interconnected reporting applications to collect this information in 2011. ECCC is aiming to reduce reporting burden on industries and enhance user experience by consolidating the three GHG reporting applications into one, implementing a user-centric design, features and up-to-date technology.
Health Canada (HC)	Access Consortium - Multinational Real-time collaboration for Health Regulators	As part of the Access Consortium Project, 5 countries - Australia, Canada, Singapore, Switzerland and United Kingdom review drug applications independently, and share files to collaborate. As regulators are repeating others’ work and due to differences in cloud policies of every country, this is done in a nonsynchronous way at this time. HC is aiming to further develop a proof-of-concept prototype that will allow all five international partners to collaborate and share information in a secure manner real-time.
Health Canada (HC)	Food and Drug Industry Data Tools	Health Canada is aiming to facilitate the preparation of additionally robust and defensible cost-benefit analysis. The project seeks to maximize its insights into material impacts on subsectors of HC’s industrial stakeholders by fully leveraging StatsCan’s Business Registry and developing a data collection tool (survey) to fill gaps in information that are identified as still outstanding.
Health Canada (HC)	Willingness to Pay framework	HC proposes to develop a framework by which to obtain the costs of collection of Canadian’s willingness to pay for the benefits of regulations to obtain additional valuable data for cost-benefit analysis. In preparing complex regulations it is often easier to collect and monetize the costs to regulated parties than the benefits to the public.
Impact Assessment Agency of Canada (IAAC)	Capacity building for the Impact Assessment Agency of Canada through practical experience in identifying the costs and benefits of regulations, including the Cost Recovery Regulations	IAAC proposes to utilize an experienced senior analyst to conduct an effective cost benefit analysis as part of the development of Cost Recovery Regulations. The resource would involve and train ~ three IAAC staff from the Legislative and Regulatory Affairs Division while the CBA is being conducted. This will allow agency staff to learn how to conduct CBAs for future regulatory initiatives as well as those currently underway.
Natural Resources Canada (NRCan)	Streamlining the economic analysis requirements of the Canadian impact assessment process	NRCan and the Impact Assessment Agency of Canada (IAAC) propose to lead an interdepartmental working group to develop guidance for project proponents regarding requirements and coordinate Government of Canada (GoC) review of the economic analysis under the Impact Assessment Act (IAA) and Information and Management of Time Limits Regulations.
Natural Resources Canada (NRCan)	Mining activity tool to help permits for mining projects	NRCan proposes to investigate the use of Rules as Code (RaC) to develop guidance material to help the mining industry navigate the permitting process. This guidance material needs to be developed in an automated way, be always up to date, consistent, accurate, and maintained with minimal effort.
Transport Canada (TC)	Expanding operational capabilities of Canadian air operators in winter weather conditions	This project proposed by TC aims to identify and leverage best practices from other jurisdictions such as the US and Europe to improve aviation requirements where the operational capabilities of Canadian air operators could be safely expanded in winter conditions to increase international alignment and competitiveness. This includes improving TC’s regulatory guidance through an informed and data-driven policy.
Transport Canada (TC)	Building a Canadian Framework for Vehicle Cyber Security Requirements to Support Alignment with International Regulations	TC is aiming to develop a vehicle cyber security certification framework to support industry in demonstrating compliance with vehicle technical requirements that is aligned internationally. Compared to Europe and Asia, the US and Canada have a self-certification model and deeply integrated of supply chains. As TC does not have dedicated vehicle cyber security authorities, a framework will help with future regulatory decision-making process.
Transport Canada (TC)	Road Safety and Vehicle Regulations	TC is proposing a pilot study to demonstrate and validate a new approach using virtual test platforms required for motor vehicle safety oversight. As Automated Driving Systems vehicles are evolving from traditional mechanical systems to software centric platforms, novel approaches to safety oversight are required. Starting with the digitalization of real-world driving environments, computer simulation test tools for automated vehicles will be examined to verify the accuracy of manufacturer’s test results for regulatory decision-making purposes.