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Minister's Message

As Minister responsible for the Canadian Environmental Assessment Agency, I am pleased to present the 2009-2010 Departmental Performance Report for the Agency. This is a report of performance against priorities set out at the beginning of the fiscal year.

The Government of Canada recognizes that promoting economic opportunities and protecting the environment are complementary objectives. Environmental assessment is an important tool to ensure that proposed developments, as well as policy, plan and program proposals, proceed in a sustainable manner.

Over the past year, there has been significant progress toward making Canada's environmental assessment process as timely, predictable and effective as possible. A legislative review of the provisions and operation of the Canadian Environmental Assessment Act by a parliamentary committee taking place in 2010 will provide an opportunity to consider further improvements to federal environmental assessment.

I invite parliamentarians and Canadians to read the 2009-2010 Departmental Performance Report to gain a better appreciation of the Canadian Environmental Assessment Agency's mandate and performance.

 

 

 

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Section 1: Agency Overview

In this section:

• 1.1 Raison d’être
• 1.2 Responsibilities
• 1.3 Strategic Outcome and Program Activity Architecture
• 1.4 Summary of Performance
• 1.5 Contribution of Priorities to Strategic Outcome
• 1.6 Risk Analysis
• 1.7 Expenditure Profile
• 1.8 Voted and Statutory Items

1.1 Raison d’être

1.2 Responsibilities

Led by the President, who reports directly to the Minister of the Environment, the Canadian Environmental Assessment Agency (the Agency) delivers its mandate under the authority of the Canadian Environmental Assessment Act (the Act) and its accompanying regulations, and within the framework of the following instruments:

• the Canada-wide Accord on Environmental Harmonization, including the Sub-agreement on Environmental Assessment, and bilateral agreements with provincial governments that establish arrangements for cooperative environmental assessments; and
• international agreements containing environmental assessment provisions to which Canada is a party, principally the United Nations Economic Commission for Europe's Convention on Environmental Impact Assessment in a Transboundary Context.

The Agency works with federal authorities on the application of the Cabinet Directive on Implementing the Canadian Environmental Assessment Act (the Directive) and its Memorandum of Understanding. The Agency provides advice and guidance on the Directive's expectations, and leads interdepartmental efforts to advance the Directive's goal of delivering high-quality environmental assessments in a predictable, certain and timely manner.

The Agency is responsible for managing the federal environmental assessment process for most major resource projects, and for integrating the Government of Canada's Aboriginal engagement and consultation activities into the environmental assessment process for these projects, as mandated under the Cabinet Directive on Improving the Performance of the Regulatory System for Major Resource Projects and its Memorandum of Understanding.

To support efficient and effective consideration of the environmental effects of development proposals, the Agency coordinates federal environmental assessment requirements with those of the provinces and territories. Further, the Agency administers a participant funding program to facilitate public participation and Aboriginal consultation in designated environmental assessments.

Consistent with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals (the Cabinet Directive), the Agency also supports the Minister of the Environment in promoting the application of environmental assessment processes in strategic-level decision making by providing training and guidance to federal authorities.

As well, the President of the Agency has been designated by Order in Council as the federal administrator of the environmental and social protection regimes set out in sections 22 and 23 of the 1975 James Bay and Northern Quebec Agreement (JBNQA).

As of July 12, 2010, following the passage of the Jobs and Economic Growth Act, the Agency has assumed the functions of responsible authorities for comprehensive studies from the point when it receives information about a project for which a comprehensive study might be required until a comprehensive study report is submitted to the Minister of the Environment. This does not apply, however, for projects that are regulated by the Canadian Nuclear Safety Commission or the National Energy Board. Since the Agency had not yet taken on these new responsibilities during the reporting period, the Agency will be reporting on these new responsibilities in the 2010-2011 Departmental Performance Report.

1.3 Strategic Outcome and Program Activity Architecture

Strategic Outcome

In order to effectively pursue its mandate, the Agency aims to achieve the following strategic outcome:

Program Activity Architecture

The chart below illustrates the Agency's framework of program activities that contribute to its strategic outcome.

[Program Activity Architecture]

1.4 Summary of Performance

2009-2010 Financial Resources ($ thousands)

Planned Spending	Total Authorities	Actual Spending
32,049	35,781	30,360

2009-2010 Human Resources (Full Time Equivalents (FTEs))

Planned	Actual	Difference
244	233	(11)

Strategic Outcome
Environmental considerations are taken into account in federal government decisions respecting policies, plans, programs and projects.

Performance Indicators	Targets	2009-2010 Performance
Percentage of policy, plan and program proposals for consideration by Cabinet that include strategic environmental considerations	90% of Memoranda to Cabinet include strategic environmental considerations by 2010-2011	Of the proposals reviewed by the Agency that were subject to the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, 68% reported the conduct of at least a preliminary scan of strategic environmental considerations, including 11% that reported the conduct of a detailed strategic environmental assessment (SEA). Under the Cabinet Directive, the Agency promotes the application of SEA to policy, plan and program proposals of the federal government by reviewing proposals and communicating with sponsoring departments in relation to fulfilling the requirements of the Directive. Departments are responsible for ensuring environmental considerations are properly integrated in their proposals and reporting requirements of the Cabinet Directive are met. To enhance federal performance in this area, the Agency developed and delivered a toolkit and workshop on Strategic Environmental Assessment. The Agency also engaged departments and agencies in a dialogue on how to improve the implementation of the Cabinet Directive. This work is being expanded upon and will be reported on in 2010-2011.
Percentage of environmental assessments (EAs) for which the Agency is Federal Environmental Assessment Coordinator (FEAC) or EA manager, and for which an EA work plan is developed and implemented by the Agency	For 100% of project-specific EAs for which the Agency is FEAC or EA manager, an EA work plan is developed and implemented	A work plan was developed and implemented by the Agency for environmental assessments for which the Agency was FEAC or EA manager 100% of the time.

($ thousands)

Program Activity	2008-2009 Actual Spending	2009-20101				Alignment to Government of Canada Outcomes
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
Environmental Assessment Development Program	6,605	3,887	3,887	4,801	4,238	Strong Economic Growth
Environmental Assessment Support Program	21,643	20,653	20,653	20,998	16,182
Internal Services	—	7,509	7,509	9,982	9,940
Total	28,248	32,049	32,049	35,781	30,360

Agency funding has increased significantly in recent years as a result of new time-limited initiatives. Among these was the initiative to improve Canada's regulatory framework for major projects, for which the Agency received funding. At the end of the 2009-2010 fiscal year, the Agency had normal operating lapses relating to ongoing activities as well as new initiatives. This was due in part to lower than anticipated litigation costs during the fiscal year. In addition, nearly $2 million of lapsed resources were planned (i.e. reprofiled) to address greater participant funding requirements in upcoming years resulting from a number of large EA projects that are getting underway.

 

1.5 Contribution of Priorities to Strategic Outcome

Operational Priorities	Type	Status
Build a framework for more integrated environmental assessment;	Ongoing	Mostly met This priority is most closely linked to the EA Development Program activity. A framework that facilitates more integrated EA will lead to more effective consideration of environmental effects in federal decision making. To this end, important progress was made through activities in support of the Government's Economic Action Plan, and the major resource projects initiative. In response to the Supreme Court of Canada's ruling in the Red Chris Mine case (MiningWatch Canada v. Canada (Fisheries and Oceans)), the Agency developed operational policy statements, and updated training and guidance materials to assist federal organizations in implementing the ruling. The Agency continued to work with provinces and territories through the Canadian Council of Ministers of the Environment to explore options for enhanced environmental assessment cooperation. As well, the Agency continued to support initiatives to advance the practice of strategic environmental assessment. The Agency developed important amendments to the Act to improve the efficiency and timeliness of the EA process. These amendments were introduced in March 2010 as part of the Jobs and Economic Growth Act (JEGA). (The amendments came into effect after the reporting period when the JEGA received Royal Assent on July 12, 2010.)
Play an active leadership role in federal environmental assessment	Ongoing	Mostly met This priority is most closely linked to the EA Support Program activity. The Agency provides leadership in EAs by fulfilling these roles: coordinating EAs involving other jurisdictions; managing the EA process and coordinating Aboriginal consultation for most major resource projects; supporting the review panel process; and providing funding for public participation in EAs. In 2009-2010, the Agency coordinated 247 federal environmental assessments across Canada. It managed 23 EAs of major resource projects, contributed to the coordination of 25 James Bay and Northern Quebec Agreement projects, and provided administrative support to ten review panels. The Agency's Participant Funding Program provided $0.3 million to 30 recipients to facilitate public participation; and the Aboriginal Funding Envelope provided $1.2 million to 24 recipients to enable Aboriginal consultation.
Build capacity and organization to deliver on existing and new responsibilities	Ongoing	Mostly met This priority is most closely linked to the EA Support Program activity. The Agency reorganized roles and responsibilities, and recruited and trained new staff during the reporting period to address new EA responsibilities (major project management, Aboriginal consultation and comprehensive studies) stated in the 2007 Cabinet Directive on Improving the Performance of the Regulatory System for Major Resource Projects. Ongoing training of staff continued to enhance the Agency's ability to deliver on existing and new requirements.

1.6 Risk Analysis

Agency Operating Environment and Challenges

Protecting the environment, while continuing to build a strong economy and improving quality of life for Canadians, is an important challenge. Environmental assessment (EA) responds to this challenge by ensuring environmental effects are considered before decisions are taken to allow policies, plans, programs or projects to proceed. The Government recognizes that prosperity cannot be sustained without a healthy environment. The federal environmental assessment process, at both the strategic and project level, is a key tool for ensuring that while Canada strives to maintain a healthy economy, it also protects the Canadian environment.

Under the Canadian Environmental Assessment Act (the Act), responsible authorities (federal departments, agencies, and parent Crown corporations) must undertake an environmental assessment before they carry out a project; provide financial assistance to enable a project to be carried out; sell, lease or otherwise transfer control or administration of land to enable a project to be undertaken; or issue certain authorizations to enable a project to go forward. During the reporting period, over 6,000 environmental assessments were initiated under the Act. Since 1995, the year the Act came into effect, approximately 90,000 environmental assessments have been initiated.

Projects subject to environmental assessment under the Act, and policies, plans and programs subject to strategic environmental assessment (SEA) under the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, often raise important issues associated with socio-economic development, environmental protection, Aboriginal concerns, and federal-provincial/territorial cooperation. The Agency continued to lead the government's efforts to explore means of improving the contribution of strategic environmental assessment and strengthening its relationship to project-level assessments and regulatory decision making.

Federal environmental assessment continued to adapt to emerging trends, such as changing economic and environmental conditions, new technologies, developments in jurisprudence, and evolving public expectations.

The following provides an overview of the Agency's operating environment, and associated considerations and challenges during the reporting period.

Shared Responsibility for Environmental Management

Under the Canadian Constitution, environmental management is an area of shared responsibility between the federal and provincial governments. Many projects are subject to federal and provincial/territorial environmental assessment requirements. In addition to this, an increasing number of Aboriginal land claims and self-government agreements contain EA processes.

Ultimately, the desired outcome of cooperating with provincial authorities is a single, consistently applied environmental assessment process, enabling each order of government to make its decisions in relation to projects in a certain, predictable and timely fashion, while safeguarding the environment. This is frequently referred to as a one project-one assessment approach, an approach endorsed by the Canadian Council of Ministers of the Environment (CCME).

The CCME Sub-agreement on Environmental Assessment, signed in 1998, establishes a framework to provide the public, proponents and governments with greater consistency, predictability, and timely and efficient use of resources where two or more jurisdictions are required by law to assess the same project. In October 2009, all federal, provincial and territorial governments reaffirmed, through the CCME, their commitment to reducing federal-provincial duplication in environmental assessment, while ensuring high environmental standards are met. The CCME endorsed a report that recommends jurisdictions consider a range of environmental assessment tools and models in their legislation, including the following cooperation mechanisms: coordination, delegation, joint review panels, and substitution.

Federal environmental assessment legislation is based on the principle of self-assessment, which means that several federal authorities may have environmental assessment responsibilities in relation to the same project. As a result, coordinating the federal requirements is a challenge which calls for strong leadership and management.

Competing Interests

The projects subject to environmental assessment are often complex, giving rise to competing interests. As such, the Agency strives to consider the issues and address the underlying interests, while maintaining productive relationships and delivering high-quality assessments that meet the expectations of Canadians in a timely and predictable manner.

To address this challenge, the Agency continued to coordinate and facilitate meaningful opportunities for all potentially affected parties to participate in the environmental assessment process. This included the provision of funding to Aboriginal groups and the public to support their participation in the review of large-scale projects.

Integrating Consultation with Aboriginal Groups into Environmental Assessment Processes

The Government of Canada has established the Aboriginal Consultation and Accommodation: Interim Guidelines for Federal Officials to Fulfill the Legal Duty to Consult. Linking the federal Crown's Aboriginal consultation activities with the federal environmental assessment process enhances early engagement and relationship-building with Aboriginal groups, which assist the federal government in fulfilling its consultation obligations. The Agency continued to carry out its responsibility for integrating Aboriginal-Crown consultation into the environmental assessments of the major resource projects that it manages, including review panel processes and comprehensive studies.

The Agency developed a step-by-step Aboriginal consultation process based on the Aboriginal Consultation and Accommodation: Interim Guidelines for Federal Officials to Fulfill the Legal Duty to Consult. This process provides a consistent, understandable approach to consultation that will support more effective communication with Aboriginal groups and improved collaboration with provincial governments.

Improving Federal Policy Development

Strategic environmental assessment (SEA) is a developing area with considerable potential for improving decisions to contribute to sustainable development. The Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals sets out the Government's expectations of federal departments and agencies for SEA. The Agency continued to advocate for the application of SEA, delivered training, developed guidance, and provided advice and support to departments and agencies as needed. The results of an Agency-led evaluation of the Cabinet Directive will be used to further strengthen the application of SEA in Canada.

Litigation

Litigation in relation to the application of the Canadian Environmental Assessment Act raises issues and challenges for the efficient, consistent and timely delivery of federal environmental assessment. Decisions rendered by the Courts can have significant implications for federal environmental assessment.

Litigation during the reporting period included two cases before the Supreme Court of Canada related to the federal environmental assessment of mining projects: the Red Chris Mine Project in British Columbia and the Lac Doré Vanadium Mine Project in Quebec.

The Supreme Court ruled on the Red Chris Mine case (MiningWatch Canada v. Canada) in January 2010. The decision provided clarity regarding the type of assessment that must be conducted under the Act and how to establish the scope of the project to be assessed. The Court also supported federal-provincial cooperation to reduce duplication in environmental assessment processes.

The Vanadium Mine case (Grand Chief Dr. Ted Moses et al. v. Canada) was still before the Supreme Court of Canada during the reporting period. However, the Court subsequently released its decision in May 2010. The decision confirmed that the Canadian Environmental Assessment Act does apply in the territory governed by the James Bay and Northern Quebec Agreement, and must be applied in a manner that fully respects the Crown's duty to consult the Cree on matters affecting their treaty rights.

International Community

International partnerships give Canada the opportunity to share environmental assessment expertise, and at the same time, access the research being undertaken in other countries. Keeping in step with the environmental initiatives of international organizations and other countries also contributes to Canada's competitiveness. In this regard, the Agency continued to develop relationships and maintain productive dialogue with other jurisdictions, such as Australia and the United States. In addition, as a party to the United Nations Economic Commission for Europe's Convention on Environmental Impact Assessment in a Transboundary Context, Canada is required to meet its obligations under the Convention. During the reporting period, no projects in Canada were subject to this Convention.

The Agency continued to support the work of the International Association for Impact Assessment (IAIA). For example, at the IAIA 2010 conference, the Agency, along with officials from Australia and the United States hosted an international panel entitled "Experiences and Lessons Learned in a Multi-jurisdictional Context - Canada, the United States and Australia". This panel offered a comparative review of three distinct environmental impact assessment regimes, in order to share lessons learned and best practices in applying environmental assessment to complex multi-jurisdictional projects.

The Agency also supported the work of the Secrétariat international francophone pour l'évaluation environnementale (SIFÉE). The Agency actively participated in the work of the scientific committee, which helped to enable SIFÉE's annual meeting. The Agency also participated in SIFÉE's strategic orientation session in preparation for the upcoming annual meeting.

2010 Legislative Review of the Canadian Environmental Assessment Act

The 2003 Act to amend the Canadian Environmental Assessment Act required that a review by a parliamentary committee of the provisions and operation of the Canadian Environmental Assessment Act (the Act) begin by June 2010. The committee is required to submit a report on the review to Parliament, including a statement of any recommended changes to the Act, within one year or within such further time as may be authorized by Parliament. The committee's report will be followed by a government response, which could include proposals for new legislation.

During the reporting period, the Agency began undertaking the work necessary to prepare for and participate in the review. Subsequent to the reporting period, in June 2010 the House of Commons referred the conduct of the review to its Standing Committee on Environment and Sustainable Development.

1.7 Expenditure Profile

[Expenditure Profile - Spending Trend]

For the 2009-2010 fiscal year, the Agency spent $30.4 million to achieve the expected results of its program activities and to contribute to its strategic outcome.

For the 2006-2007 to 2009-2010 periods, total spending includes all parliamentary appropriation and revenue sources. It also includes carry forward adjustments. For the 2010-2011 to 2012-2013 periods, the total spending corresponds to planned spending and revenues. Supplementary funding and carry forward adjustments are unknown at this point and are, therefore, not reflected.

As a result of the Budget 2007 initiative to improve Canada's regulatory framework for major resource projects, the Agency has increased its spending trend. The Agency was also granted funding for review panel support, as well as to address Aboriginal consultation for environmental assessment programs, which sunset in 2009-2010 and 2010-2011 respectively. Funding for Aboriginal consultation has since been renewed for 2010-2011 and 2011-2012.

Canada's Economic Action Plan

Supporting sustainable development requires protecting the environment, while securing a strong economy and prosperity for Canadians. Environmental assessment under the Act responds to this challenge by ensuring that the potential environmental effects of development proposals are carefully considered in the federal decision-making process. The number of environmental assessments required pursuant to the Act is in large part a function of the strength of the Canadian economy. Both resource sector and infrastructure projects remain important as Canada's economic recovery continues.

During the 2008-2009 fiscal year, the Government of Canada introduced the two-year Economic Action Plan to stimulate the economy through significant funding of public infrastructure projects. The Agency supported this initiative by developing regulatory amendments designed to provide certainty regarding the environmental assessment requirements for these federally-funded public infrastructure projects.

During the 2009-2010 fiscal year, the Agency continued to support Canada's Economic Action Plan through the development of legislative amendments to improve the efficiency, timeliness and certainty of the federal environmental assessment process. The amendments to the Act were introduced in March 2010 as part of the Jobs and Economic Growth Act, and came into effect subsequent to the reporting period when the latter received Royal Assent on July 12, 2010.

1.8 Voted and Statutory Items

($ thousands)

Vote # or Statutory Item (S)	Truncated Vote or Statutory Wording	2007-2008 Actual Spending	2008-2009 Actual Spending	2009-2010 Main Estimates	2009-2010 Actual Spending
15	Program expenditures	16,548	25,392	29,199	26,949
(S)	Contributions to employee benefit plans	1,729	2,855	2,850	3,411
(S)	Refunds of amounts credited to revenues in previous years		1
Total		18,277	28,248	32,049	30,360

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