:
Thank you, Mr. Chair, and committee members.
I appreciate the opportunity to speak to you about the proposed amendments to the Canadian Environmental Assessment Act.
At the outset, I should say that my general reaction to the amendments proposed in Bill is that some are helpful and others are not. None of them addresses what I would consider to be significant shortcomings in the current federal environmental assessment process. I propose to do two things in my 10 minutes. I propose to briefly go through the amendments proposed and indicate my reaction to them, and in the remaining time to comment more generally about the current act and perhaps what further amendments may be considered.
Starting with section 7, I suggest that the proposed amendments to section 7 are appropriate. They are helpful, so I don't propose to comment further on them.
With respect to paragraph 14(5)(b), my reaction to that proposed amendment is that the subsection already restricts the ability of the minister to call for an environmental assessment of a project not on the designated project list. Just because the federal authority has already granted one approval does not mean that a federal environmental assessment may not still be warranted. The amendment, in my view, would seem to make this worse by broadening the range of decisions which, once made, would prevent the minister from exercising discretion to require an environmental assessment. I would suggest that amendment not be passed.
On subsection 53(4), the amendment is a positive change to the act and I would support it.
The proposed amendments to sections 63 and 64 are very similar amendments, so I will make one comment with respect to both. It would seem inappropriate to permit the environmental assessment to be terminated unless it is clear that the decision not to exercise a federal power, due to your function with respect to the project, would in fact prevent the project from being carried out. For this reason, the proposed amendment to section 63 should not be adopted. The original versions of sections 63 and 64 are stronger.
With respect to the proposed amendments to sections 66, 67, and 128, I view those as appropriate and have no further comments.
That leaves me with a few comments about the current state of the Canadian Environmental Assessment Act, 2012. My view is that this version of the act no longer provides a solid foundation for good decision-making on projects, which is along the lines of what was suggested by Justice La Forest as far back as 1992.
The CEAA, 2012 introduces unnecessary uncertainties about the application of the act. It encourages the application of the act late in the process. It turns the process into a regulatory process rather than a planning process. It focuses on a narrow range of issues that will not enable a federal decision-maker to make sound decisions about whether and under what circumstances proposed projects be permitted to proceed. The focus on large projects carries with it the risk of missing significant adverse impacts and cumulative impacts of smaller projects.
In the time remaining I would like to make three modest recommendations for improvements to the act.
Number one is that we do away with the discretion not to require an environmental assessment at the project registration stage. There is a lot of experience with this approach in provincial environmental assessments. It has not been positive. The effect of this approach is to push the proponent to complete its planning and design before the EA actually starts. Essentially, it turns an environmental assessment planning process into a duplication of the existing regulatory process. In this case, the way the act is currently structured, this discretion is not needed. The designated project list is already modest. There is power of substitution and equivalency in the act already.
My second recommendation is that the scope of environmental effects to be considered under the federal assessment be broadened to ensure that appropriate information is gathered for sound decision-making.
I recognize that for joint panel reviews this likely already happens, but in federal only assessments, by limiting the scope of the assessment to key areas of regulatory responsibility, such as fisheries, migratory birds, and impacts on aboriginal peoples, we are turning an environmental assessment process into a duplication of existing regulatory and other core federal responsibilities, and in the process are undermining the whole point of doing an environmental assessment.
The third recommendation I would make is that we proceed further on the positive steps taken in the act to recognize regional environmental assessment and to recognize, in the purpose section, the importance of cumulative effects. The future of environmental assessment is to get a handle on how to do better cumulative effects and to more appropriately use strategic environmental assessment and regional environmental assessments to assist with the difficulties we've all encountered at the project level. I would suggest that the act should set out a process for doing strategic environmental assessments and regional assessments, and it should set out clear circumstances for when those are required.
With respect to cumulative effects, my main recommendation is that we need to move beyond doing cumulative effects with existing and future projects. It should be based primarily on reasonable future development scenarios, and that piece should become central to environmental assessments, including project EAs, SEAs, and regional environmental assessments.
Thank you very much.
Good afternoon. My name is Brenda Kenny, and it's a pleasure to appear before you to share some of the views of the Canadian Energy Pipeline Association.
Joining me is my colleague Elizabeth Swanson, who is chair of CEPA's work group on regulatory affairs. Importantly, she brings her perspective as a lawyer who has worked in the practice of environmental assessment for many years.
Before she provides her legal perspectives, I'd like to share a few general comments from CEPA's point of view with respect to Bill and the clauses being reviewed.
In delivering budget 2012 acknowledged that the natural resource and energy sector is “driving economic growth across the country. They are creating good jobs, not only directly but also indirectly, in manufacturing, clerical work, skilled trades, and financial services.” said, “Canada’s resource industries offer huge potential to create even more jobs and growth, now and over the next generation.”
Accordingly, the responsible resource development provisions of Bill put in place the enabling conditions to realize these opportunities, and we believe Bill is a further positive step in this direction.
CEPA is a very strong supporter of the objectives behind regulatory reform, namely improving the efficiency of, and most importantly, the environmental outcomes, from environmental assessment and regulatory review of major infrastructure projects.
We do not believe that environmental protection has been watered down or impaired in any way by these changes. Rather, for the pipeline industry, the processes enabled through CEAA, 2012 and amendments to the NEB Act allow government and stakeholders to improve outcomes by focusing assessments on key environmental concerns, using best practices and avoiding significant adverse environmental effects by being able to allocate resources more efficiently and effectively. Together these changes have strengthened, focused, and clarified the purposes of Canada's environmental legislation and set the scene for enhanced environmental outcomes going forward.
Bill makes a number of important contributions toward these objectives and clarifies the interpretation of the new provisions and the transition arrangements to the current regulatory system, all of which will provide greater certainty.
I'd like to invite my colleague Elizabeth Swanson to provide her perspectives.
I've had the opportunity through my 26 years of practising law to participate in both the emergence of modern project environmental assessment right back to the EARP guidelines order through the early days of the first CEAA, then through the development of regulations under that first CEAA, through the amendments in 2009 until now with CEAA, 2012.
I've sat on both sides of the table. I have looked at this from an academic point of view partly. I worked for the first 10 years of my career with the environmental community through the environmental assessment caucus understanding what their vision, their concern, and their approach to environmental assessment was. For the last 14 years I have advised and worked with pipeline companies. I'm in-house counsel for TransCanada PipeLines and I actually do environmental assessment in project contexts.
When I bring that full breadth of experience to the table, in my view CEAA, 2012 strikes the right balance now of where we are in terms of the generation and evolvement of environmental assessment. It is in my view again, the right approach to focus federal assessment where it ought to be. The federal government is not the only level of government doing environmental assessment of projects. In my view, CEAA, 2012 is a modern, focused, and credible piece of environmental legislation.
I want to quickly address something that Professor Doelle said. I'm not sure if I understood you correctly, but if you were saying that somehow CEAA, 2012 turns project environmental assessment into a regulatory process, I don't agree. I know what it feels like and how much work goes into doing project environmental assessment. I don't see it all of a sudden becoming regulatory in nature. Perhaps you and I are thinking different things, but I'll make that point.
With respect to unnecessary uncertainties, I don't agree. I think CEAA, 2012 is clearer. It's early days so perhaps there's time yet to be confused, but I think it is a much more direct and much more easily understood approach.
Those are my comments. I'll turn it back to Brenda.
I'll be directing my questions to Professor Doelle.
I would preface them by saying that apart from the provision just drawn to our attention closing the loophole in section 128, subsection 53(4), making sure that a broader range of conditions can be attached, is by no means a housekeeping amendment and will certainly add to the force of the Canadian Environmental Assessment Act. I think it's probably very welcome.
Professor Doelle, there is some sense in which a series of these amendments changing the word “would” to “could” can be presented as mere housekeeping or technical, but if I understand you correctly, these can have quite dramatic consequences. I heard you say that in two instances this is either neutral or pro-environment to move from the word “would” to “could”, but in at least three instances it's regressive.
I'm wondering if you could elaborate on sections 14, 63, and 64 where you've indicated in your comments that you think there should not be an amendment to change the word “would” to “could”. Subsection 14(2) of the act gives the minister power to designate as requiring an environmental assessment an activity that does not fall within the regulations' list of designated projects. Proposed paragraph 14(5)(b) affects some changes in that. Sections 63 and 64 deal with termination of environmental assessments.
Could I ask you to explain why you would not want us to change the word “would” to “could”?
To begin with, I would say that I tend to agree with the testimony of Helen Cutts, when she said that these changes were by and large intended to bring parity to the English and the French versions.
When I look at it, certainly, the difference between “would” and “could” has an effect opposite to what Professor Doelle said. “Would” is more certain and directive, if you compare it with “could”; I think it enables action and the exercise of discretion, whereas there is less certainty that something is going to happen. When I look at a change from “would” to “could”, I see it as having the effect, if there is any effect at all other than bringing parity to the English and French versions, of in fact making the act broader.
With respect to a project list approach, if I put the development of environmental assessment into a context, asking where we have been, what we have done, and where we are now in terms of a deliverer and a decision-maker, having regard to environmental effects, the project list makes a lot of sense to me. It introduces a whole lot of certainty. Rather than having us look at what is an “activity” or a “physical work” and whether it is on the inclusion list or on the exclusion list, this approach is much more efficient, direct, and certain. To that extent, I'm a proponent of the project list.
I also note that the list can be expanded, can be amended, and can be added to, I'm sure, if circumstances arise that make it apparent that it should be.
:
If you do a joint assessment, there is every opportunity for a comprehensive assessment, and essentially the assessment process will carry on as it has. But when you're looking at a federal-only panel or a federal-only standard environmental assessment, you are looking essentially at the impact on fish, the impact on migratory birds, and the impact on aboriginal communities. By the way, no one has been able to figure out quite yet how you do that last part. It will be very interesting to see how that is done in isolation or without doing a comprehensive assessment.
Those are the things you look at, and everything else is left to the provinces in the expectation that the provinces will do it. I can tell you that in Nova Scotia, the ratio of federal to provincial assessments, historically, has been about 10:1. The federal government does about 10 times as may assessments as the province does. The hope that for every assessment the federal government doesn't do any more, or does by focusing only on those three areas is a false hope.
No, for anything other than a joint review panel, I don't think there will be a basis for sound decision-making, because if you want to make good decisions about projects, you need to know more than whether there are significant impacts on fish, on migratory birds, and on aboriginal communities. You want to know what the overall impacts are. You also want to know what the benefits are and what the uncertainties are so you can make a decision, at the end of the day, about whether this is a good project, and as a result of that, about whether the environmental impacts are warranted.
We know that projects can't go ahead without having an environmental impact. What we want to know, as a result of the environmental assessment process, is whether, overall, this is a good project and whether the environmental impacts are warranted in light of all the effects and all the benefits and all the uncertainties.
:
Thank you, Chair. Good afternoon, colleagues.
As you have heard, with me today is my deputy minister, Bob Hamilton; the CEO of Parks Canada, Alan Latourelle; and Ms. Elaine Feldman, the president of the Canadian Environmental Assessment Agency. In the back row ready for the call should we get into deep financial and accounting matters is Ms. Carol Najm, Environment Canada's chief financial officer.
Mr. Chair, I'd like to start off by expressing my sincere appreciation to the committee for the invitation to appear here today to discuss the supplementary estimates (B) tabled in the House earlier this month.
[Translation]
I will begin with a brief statement. After that, I would be pleased to answer any questions the members may have for me.
[English]
Since I last appeared before this committee on the main estimates, Environment Canada has continued to maintain its focus on the effective and efficient delivery of its mandate. I'm pleased to note the department is making steady progress initiating meaningful actions to protect Canada's environment, to protect Canadians, and the economy.
As a regulatory department our strength lies in our ability to successfully create, implement, monitor, and enforce effective federal regulations and legislation. On this front I am proud to say Environment Canada is a world-class regulator leading the way by integrating science into good regulatory decision-making and strengthening and deepening its monitoring networks where it matters most.
The department is continuing to engage expert scientists by using the best available research and relying on effective collaborations with its partners at home and abroad.
Environment Canada is protecting endangered species and our nation's rich biodiversity through strong leadership and effective partnerships.
Since 2006, thanks in significant part to the department's efforts, Canada's protected areas have grown by fully 53%. Almost 10% of Canada's land mass is now protected, an area greater than that of the province of British Columbia.
On climate change, the department is heavily engaged in implementing our sector-by-sector regulatory approach and in working with the provinces and territories to reduce emissions. We have combined efforts to reduce electricity emissions through a range of measures designed to shift away from high-emission sources of electricity and to reduce demand through energy efficiency.
We've already put into place light duty vehicle regulations for the model years 2011 to 2016, and we're working with the United States to extend those regulations to model years 2017 and beyond. We proposed on-road heavy duty vehicle greenhouse gas emissions regulations for the years 2014 and later. We also introduced regulations to implement new standards to reduce air pollution and greenhouse gas emissions in the marine sector. In September we announced final regulations for reducing greenhouse gas emissions from coal-fired electricity generation.
These regulations will apply stringent performance standards to new coal-fired electricity generation units and units that have reached the end of their useful life. Greenhouse gas emissions from the electricity sector are now projected to decline by a third between 2005 levels and 2020 despite significant increases in economic activity and electricity production over this period.
Collectively, colleagues, our efforts have already brought Canada about halfway to achieving our greenhouse gas reduction target by reducing emissions by 17% from 2005 levels by 2020. The department is continuing to push forward. We're now turning our focus to the oil and gas sector.
When it comes to water quality, the department tackled one of the largest single sources of water pollution by introducing this past summer the first national standards for waste water treatment. It also supported the enhancement and renewal of the Great Lakes water quality agreement with the United States to address such issues as aquatic invasive species, habitat degradation, and the effects of climate change. It launched the Great Lakes nutrient initiative to address toxic and nuisance algae.
[Translation]
Environment Canada is continuing its work with Ontario to develop a renewed Canada-Ontario Agreement Respecting the Great Lakes Basin Ecosystem.
Under the St. Lawrence Action Plan, Environment Canada is also focused on monitoring the St. Lawrence to improve biodiversity conservation, water quality and sustainability.
[English]
The department also progressed on its collaborative work with the provinces, with environmental non-governmental organizations, and with industry to improve air quality, when provincial and territorial ministers of the environment endorsed the air quality management system just a few weeks ago.
There is more, but in the interests of time, Mr. Chair, I'd like to turn to the supplementary estimates (B) before us today.
As you will note, Environment Canada's submission in the supplementary estimates (B) includes 12 items, a number of them further to budget 2012, which due to timing could not be included in the main estimates. I'd like to highlight them.
The major items include a proposed $17 million increase to support such initiatives as the Species at Risk Act, the Lake Winnipeg basin initiative, the Major Projects Management Office, and the health of the oceans initiative.
This amount includes $11.8 million for ongoing improvements to the species at risk program and $2.1 million to support watershed, land stewardship, and freshwater science initiatives under the renewed Lake Winnipeg basin initiative program. There's a request for $2 million to renew funding for the Major Projects Management Office to ensure timely and quality reviews of more than 70 high-profile major resource projects and to support implementation of the responsible resource development initiative. As well, there is a $1.2 million request to enable the health of the oceans partners and the Government of Canada to respond to an ongoing need to protect the health of Canada's oceans.
It also includes just under $13 million in savings that the department has identified for the budget 2012 deficit reduction action plan.
When considered together, this submission works out to a departmental request for about $5 million in additional funding.
As for Parks Canada, which also falls under my purview, supplementary estimates (B) include three transfers to and from other federal departments, which amount to a reduction of about $12,000. The agency would like to invest $3.7 million in the species at risk program and $800,000 to advance the establishment of two marine conservation areas through the health of the oceans initiative.
[Translation]
Mr. Chair, this highlights some of the activities these estimates will financially support in the department's work to provide Canadians with a clean, safe and sustainable environment.
I would like to thank you, Mr. Chair, members of the committee, for your time today. I would be happy to answer your questions.
:
You're quite right. I referred indirectly to the fact that the items in the supplementary estimates (B) here today were in large part not available to be placed in the main estimates.
The supplementary estimates serve two purposes. They seek to revise spending levels that Parliament will be asked to approve. They also provide all members of Parliament information on changes to estimated expenditures to be made under the authority of the statutes already passed by Parliament.
The supplementary estimates, as most of you know, are tabled three times a year: the first in May, the second in late October, and the final one in late February. Each of these supplementary estimates documents, labelled (A), (B), and (C), can be published in any given year.
They reflect the government's planning priorities and resource allocation priorities and the fine-tuning of those priorities. In combination with the subsequent results achieved in departmental reports, this material helps Parliament hold the government to account for the allocation and management of public funds.
:
Minister and other folks, welcome. It's always good to get an overview of things and to look at the estimates as we go. I think everyone around this table understands that this is the parliamentary process, that budgets proceed in this fashion, and that as the details get filled in, we hear from you. I appreciate that.
I want to ask about a matter that's somewhat important to me and to other Canadians. It comes out of the supplementary estimates (B) in relation to funding of areas that might involve the oil sands in the west.
We know that the oil sands are a strategic natural resource for Canada, that they are a key driver of economic development, and that the Government of Canada works with the Government of Alberta to make sure that they are developed in an environmentally responsible way.
In particular, this committee, in the previous Parliament, spent quite a number of months studying the oil sands and being concerned about them. Subsequent to that, your ministry went through an excellent science-based consultation with experts in the field regarding the monitoring of the oil sands and came up with a plan, which was announced in February of this year, jointly with Alberta, I think.
I wonder whether you could give us an update about what it has achieved so far, what you have seen in it, and how it may relate to the estimates.
:
Absolutely. I think there's no better point of accent than the report that was released at the annual SETAC conference in the United States last year, at which they talked about the detection of monitored contaminants far further afield from the oil sands than earlier expected. This is the latest chapter in a good news story of our government's having in 2010 accepted the advice of scientists across academia, scientists in the west, who said that monitoring at the time was insufficient and needed to be improved.
We took that advice. A monitoring program was designed, and it was peer reviewed by scientists and is now being implemented. We began in the spring melt this year. Again, it is being funded, with a nod to my colleague who is interested in bottom-line numbers and costs, at $50 million a year for the first three years of implementation, paid for by the industry and administered jointly by the Government of Canada, Environment Canada, and the Government of Alberta.
As I say, we're in the first year of implementation, but in the next three years, as the complete, comprehensive monitoring of water, air, biodiversity, land, aerial dispersal, and downwind impacts on lakes that are sensitive to acid contaminants is done, we will provide even greater evidence, which will allow us to work with the industry to ensure that contaminants are reduced while at the same time responsibly developing a great natural resource.
:
Certainly. Waste water management is probably the greatest challenge we have with respect to clean water in Canada today. About 75% of our communities have effective primary or secondary waste water management, but fully 25%, 850 communities, large and small, first nations and otherwise, still have inadequate waste water management and treatment.
In consultation with the provinces and the territories, in July we announced that Canada's first national waste water management regulations will be brought in. They will focus on three priority areas. The highest priority, the greatest degree of pollution, will be treated with a target date of 2020. The next intermediate level will be done by 2030, and the lowest level of correction required will have a date of 2030.
This will probably lead to a subsequent question on infrastructure support for the cost. Environment Canada estimates a cost of significantly under $10 billion to bring the full country into compliance. I've spoken with the president of the Federation of Canadian Municipalities, mayors across the country, east and west, and others. They estimate something beyond $20 billion. We are talking. We are working together. Our government has already invested more than $2 billion directly in waste water management. Of course, the annual gas tax refund of $2 billion is available to all municipalities, large and small, to apply against that waste water management.
If that infrastructure money were to be applied fully to waste water management over the next five years, and one knows that it has to be spread a little bit more broadly, one would think the country would be very close to being in full compliance from coast to coast to coast.
Thank you to the minister and officials for coming.
I have some concerns. I hear about strengthening and deepening monitoring networks, when there were cuts of 700 announced at Environment Canada, and more recently, 200. When it comes to Canada's protected areas, we always want to hear about them. You talked about 10% of land being protected, and that's a good thing. On the other side, less than 1% of our marine areas are meaningfully conserved.
On water quality, the nutrient program is important. On World Water Day, there was an announcement about protecting the Great Lakes. It was 0.7% of what was needed to protect them.
I'm going to start with climate change. Canada was a founding member of the new Climate and Clean Air Coalition to Reduce Short-lived Climate Pollutants.
Why is there the willingness to address the short term versus the long term?
:
No, that's not it at all.
[English]
First of all, if I could just remind you, Environment Canada is a very broad and complicated department. It includes the chemical management plan, Parks Canada, species at risk responsibilities, air and water diversity responsibilities, as well as biodiversity. We also have responsibility for the Canadian Environmental Assessment Act with regard to industrial projects. Environment Canada is very much a science-based department. We have responsibility for the Meteorological Service of Canada, the national weather service. We have responsibilities, as you know, for climate change, mitigation on one hand and reduction of greenhouse gases, but also adaptation to those changes, which are already taking place and will continue to take place, we expect.
There are a great many sublevels of scientific focus within Environment Canada with, I can tell you, wonderful people who are eager to fulfill their individual mandates and to ensure that Environment Canada maintains its international reputation as a world-class regulator. Much of what we do involves regulation. Much of the science done is to allow the establishment of standards and the maintenance and defence of those standards through regulation.
I am going to move quickly because I'm going to try to pass the last moment or so over to my colleague, Ms. Ambler, who has a question as well.
I want to roll two questions together, but first I have a comment. I did hear in response to a question earlier about SARA that there is a question about deficiencies in science. I presume we want to make sure that responses are based on sound evidence, to make sure that we actually get results from our interventions.
I noted with some interest that there was an article in the news this past week about the international census of marine life 2010. The headlines were that two-thirds of ocean species remain unidentified, even after a decade of science, according to the article in Current Biology. Obviously we want to make sure that our responses are appropriate.
I noticed that you have $1.2 million in supplementary (B)s to enable the health of the oceans partners to respond to the ongoing need to protect the health of Canada's oceans. Question one is related to where you see that $1.2 million going.
The second question has to do with the item in the supplementary (B)s for the habitat stewardship contribution program of some $4 million through transfer. This program helps Canadians protect species at risk and their habitats through enhancing existing conservation activities and encouraging new ones. It leverages funding. Through the program I think we have leveraged about 1,000 projects for $62 million up to a total investment of $215 million with partners.
I wonder if you would explain to us this habitat stewardship contribution program and if that is part of the comment that says there will be $11.8 million for ongoing improvements to the species at risk program to support watershed, land stewardship and freshwater science. I presume that $4 million is part of that investment.
:
With regard to the species at risk funding, you're quite right. That $4 million is set aside for habitat stewardship. The rest is for other departments applying Species at Risk Act, SARA, obligations. Again, Parks Canada has a piece of that, and Fisheries and Oceans has as well.
Essentially, the habitat stewardship program has been highly effective over the years in maintaining habitat not only for species at risk but for all wildlife. Again, we have advanced that through a variety of conservation organizations, such as the Nature Conservancy of Canada and Ducks Unlimited, and with individual landowners, and with better practices with provincial and territorial governments. The interest there is to ensure that we preserve across Canada the great abundance of biodiversity that this country has.
In one of those areas, beyond formal national parks, and it is a mandate from the Prime Minister, we're also looking to continue to work to protect each of the 39 distinct locations, habitats, in Canada, as well as to develop—what's the total number of national marine protected areas? I think it's 29—
Mr. Alan Latourelle: It's 29, yes.
Hon. Peter Kent: We're still at the beginning. We're at five right now, either committed formally or in the works, but again, it's a process that can't take place overnight.