Environmental liabilities and asset retirement obligations

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Environmental liabilities are based on the government’s best estimate of the amount required to remediate the site to current minimum environmental standards. Asset retirement obligations are the government’s estimated costs related to obligations associated with the retirement of tangible capital assets. These costs are normally capitalized and amortized over the asset’s estimated useful life. The liability reflects the present value of estimated future cash flows required to retire the asset.

Table 5.7
Environmental liabilities and asset retirement obligations
(in dollars)
  2020 2019
Remediation liabilities for contaminated sites
Agriculture and Agri-Food
Department of Agriculture and Agri-Food 9,284,096 5,978,858
Canadian Heritage
Canadian Broadcasting Corporation 273,000 352,000
National Capital Commission 63,901,000 65,354,000
Subtotal 64,174,000 65,706,000
Crown-Indigenous Relations and Northern Affairs
Department of Indian Affairs and Northern Development – 3,772,146,710
Department of Crown-Indigenous Relations and Northern Affairs 4,361,394,318 –
Subtotal 4,361,394,318 3,772,146,710
Environment and Climate Change
Department of the Environment 206,021,558 213,611,159
Parks Canada Agency 96,177,742 76,892,665
Subtotal 302,199,300 290,503,824
Fisheries, Oceans and the Canadian Coast Guard
Department of Fisheries and Oceans 268,022,078 226,345,681
Global Affairs
Department of Foreign Affairs, Trade and Development 16,253 15,934
Indigenous Services
Department of Indigenous Services 379,387,007 38,534
Infrastructure and Communities
The Jacques Cartier and Champlain Bridges Inc. 34,396,000 26,592,000
Windsor-Detroit Bridge Authority 9,088,000 19,523,000
Subtotal 43,484,000 46,115,000
Innovation, Science and Economic Development
National Research Council of Canada 2,358,615 3,458,402
National Defence
Department of National Defence 541,307,536 526,425,304
Natural Resources
Department of Natural Resources 1,866,717 1,800,845
Atomic Energy of Canada Limited 877,196,000 1,054,978,000
Subtotal 879,062,717 1,056,778,845
Public Safety and Emergency Preparedness
Canada Border Services Agency 1,770,812 1,317,794
Correctional Service of Canada 2,649,382 3,211,004
Royal Canadian Mounted Police 11,260,019 11,088,614
Subtotal 15,680,213 15,617,412
Public Services and Procurement
Department of Public Works and Government Services 253,480,574 239,334,375
Transport
Department of Transport 250,208,263 228,297,858
VIA Rail Canada Inc. 5,090,000 1,312,000
Subtotal 255,298,263 229,609,858
Gross remediation liability for contaminated sites 7,375,148,970 6,478,074,737
Less expected recoveries—Department of Crown-Indigenous Relations and Northern Affairs 25,655,597 23,161,964
Net remediation liability of contaminated sites 7,349,493,373 6,454,912,773
Other environmental liabilities
National Defence
Department of National Defence (unexploded explosive ordnance affected sites) 110,313,796 115,201,168
Asset retirement obligations
Natural Resources
Atomic Energy of Canada Limited (nuclear facility decommissioning) 7,184,910,000 6,613,955,000
Others 1,032,124 8,261,336
Total asset retirement obligations 7,185,942,124 6,622,216,336
Total environmental liabilities and asset retirement obligations 14,645,749,293 13,192,330,277

Changes in liability for remediation of contaminated sites

Table 5.8
Changes in liability for remediation of contaminated sites
(in dollars)
  2020 2019
Opening balance 6,478,074,737 5,710,488,358
Less: Expenditures reducing opening liabilities 585,673,239 583,549,885
Add:
Changes in estimated remediation costs 1,428,328,494 1,127,718,946
New liability for sites not previously recorded 54,418,978 223,417,318
Closing balance (gross) 7,375,148,970 6,478,074,737
Expected recoveries 25,655,597 23,161,964
Closing balance (net) 7,349,493,373 6,454,912,773

In addition to expenditures reducing liabilities previously recorded, the government spent another $14,889,737 ($36,910,534 in 2019) remediation costs on its contaminated sites when these costs became known in the year.

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