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Minister's Message

As Minister responsible for the Canadian Environmental Assessment Agency, I am pleased to present the 2010-2011 Departmental Performance Report for the Agency. This report compares performance with the priorities set out at the beginning of the fiscal year in the Agency's Report on Plans and Priorities.

The past year was one of changing priorities for the Agency, driven largely by the amendments to the Canadian Environmental Assessment Act that came into force in July 2010, making the Agency responsible for conducting most comprehensive studies. This is a significant step in support of more integrated federal-provincial environmental assessment.

Looking forward, the Agency is well positioned to provide support to the upcoming legislative review of the Canadian Environmental Assessment Act and to develop proposals in response to its recommendations.

Meanwhile, I invite parliamentarians and other Canadians to read this 2010-2011 Departmental Performance Report to gain a better appreciation of the Canadian Environmental Assessment Agency's mandate and performance.

 

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Section I: Departmental Overview

In this section:

• Raison d’être
• Responsibilities
• Strategic Outcome and Program Activity Architecture
• Organizational Priorities
• Risk Analysis
• Summary of Performance
• Expenditure Profile
• Estimates by Vote

 

Raison d’être

Responsibilities

Environmental assessment ensures that federal government authorities identify and consider the potential environmental effects of policies, plans, programs, and projects before final decisions are made. It supports decisions that protect the environment, while fostering strong economic growth and a high quality of life for Canadians.

The Canadian Environmental Assessment Act (the Act) establishes the requirements for the EA of projects, and the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals sets out the EA requirements for those types of decisions. The Canadian Environmental Assessment Agency plays key roles in delivering and supporting assessments under the Act and providing guidance to assessments under the Cabinet Directive.

The Act sets out three main types of environmental assessment for proposed projects: screenings, comprehensive studies, and assessments by review panels. The Agency advises and assists the Minister of the Environment in establishing review panels and supports panels in their work. The Agency manages screenings for major resource projects and, after July 2010 amendments to the Act, conducts most comprehensive studies on behalf of the Government of Canada. For review panels, and for the comprehensive studies and screenings for which it is responsible, the Agency integrates the Government of Canada's Aboriginal consultation activities into the EA process to the greatest extent possible.

As the centre of expertise on environmental assessment within the federal government, the Agency provides advice and guidance across government to assist federal authorities in carrying out their EA responsibilities. The Agency leads interdepartmental efforts to improve the delivery of high-quality environmental assessments in a predictable and timely manner. The Agency works with federal authorities on the application of the Cabinet Directive on Implementing the Canadian Environmental Assessment Act and the Cabinet Directive on Improving the Performance of the Regulatory System for Major Resource Projects.

The Agency also leads the coordination of federal EA requirements with those of the provinces and territories and administers a participant funding program to facilitate public participation and Aboriginal consultation during comprehensive studies of major resource projects and assessments by review panels.

The Agency also has responsibilities for reviewing projects under the environmental and social protection regimes set out in sections 22 and 23 of the 1975 James Bay and Northern Quebec Agreement. The President of the Agency is designated by order-in-council as the federal administrator of these processes.

The Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals establishes a self-assessment process for conducting a strategic environmental assessment (SEA) of a policy, plan, or program proposal that may result in major environmental effects. An SEA is required when the proposal is being submitted to a minister or Cabinet for approval. The Agency supports the Minister of the Environment in promoting the application of the Cabinet Directive and provides training and guidance for federal authorities.

The Agency was established in 1994 and is headed by a president who reports directly to the Minister of the Environment. The Agency has its headquarters in Ottawa and regional offices in Halifax, Québec City, Toronto, Winnipeg, Edmonton, and Vancouver.

 

Strategic Outcome and Program Activity Architecture

The Agency's strategic outcome provides overarching direction for its activities.

The Agency strives to achieve this outcome through the efficient and effective delivery of key components of federal environmental assessments and by providing advice and support to federal organizations on the delivery of their EA responsibilities.

The chart illustrates the alignment of the Agency's program activities and strategic outcome with the Government of Canada's strong economic growth outcome area.

[Program Activity Architecture]

Organizational Priorities

Priority: Build a Framework for More Integrated Environmental Assessment	Type*: Ongoing	Strategic Outcome(s) and/or Program Activity(ies): Environmental Assessment Development Program
Mostly met Amendments to the Canadian Environmental Assessment Act that came into force July 12, 2010 made the Agency responsible for the conduct of most comprehensive studies. These amendments present a significant accomplishment in support of more integrated environmental assessment. As a result of these changes, the Agency is now responsible for conducting timely, high-quality comprehensive study environmental assessments and for coordinating federal requirements with provincial and territorial EA processes. To complement the amendments, proposed regulations to establish time lines for the conduct of comprehensive studies by the Agency were made available for consultation in the Canada Gazette, Part I (enacted June 23, 2011). The Agency engaged federal partners in understanding the amended approach to comprehensive studies through regional and headquarters interdepartmental discussions, and engaged the provinces and territories in similar discussions through regional environmental assessment committees. The Agency also provided information and responded to inquiries from Aboriginal groups and stakeholders. Other activities in support of integrated environmental assessment include the renewal of the Canada-Quebec Agreement on Environmental Assessment Cooperation, advice to Aboriginal Affairs and Northern Development Canada to ensure that EA regimes pursuant to comprehensive land claims and self-government agreements are consistent with the requirements of the Act, and consultation on proposals to improve alignment of the environmental assessment requirements for commercial ski areas in national parks with Parks Canada's applicable management processes and policies.

* Type is defined as follows: Previously committed to—committed to in the first or second fiscal year before the subject year of the report; Ongoing—committed to at least three fiscal years before the subject year of the report; and New—newly committed to in the reporting year of the DPR.

Priority: Play an Active Leadership Role in Federal Environmental Assessment	Type*: Ongoing	Strategic Outcome(s) and/or Program Activity(ies): Environmental Assessment Support Program
Mostly met The Agency led federal environmental assessment by fulfilling the following key roles: conducting comprehensive studies; managing multi-jurisdictional screenings of major resource projects; managing review panels or co-managing joint review panels; integrating Aboriginal consultation into the environmental assessment process for review panels and the comprehensive studies and other major resource project EAs it leads; providing funding to support public participation and Aboriginal consultation in EAs; and coordinating federal participation in multi-jurisdictional screenings of non-major resource projects. July 2010 amendments to the Canadian Environmental Assessment Act gave the Agency specific authorities with respect to most comprehensive studies, enabling it to play a strong and active leadership role in delivering high-quality environmental assessments in a timely manner. The Agency coordinated 207 federal environmental assessments across Canada. It managed 26 EAs of major resource projects (including 14 comprehensive studies), conducted 13 non-major resource project comprehensive studies, contributed to the coordination of 14 James Bay and Northern Quebec Agreement projects, and provided support to 12 projects subject to an EA by a review panel. The Agency's Participant Funding Program awarded $300,000 to 35 recipients to facilitate public participation in the EAs of 15 projects and $1.9 million to 67 recipients to enable Aboriginal consultation and participation in the EAs of 13 projects. Based on its experience in integrating Aboriginal consultation into the EA process, the Agency contributed to strengthening interdepartmental governance and communication on consistent and effective Aboriginal consultation across the federal government. The Agency supported the Privy Council Office's update of the Guidelines for Implementing the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals. It also led an interdepartmental community of practice, providing guidance and advice to federal departments and agencies on developing and updating their SEA processes and tools.

* Type is defined as follows: Previously committed to—committed to in the first or second fiscal year before the subject year of the report; Ongoing—committed to at least three fiscal years before the subject year of the report; and New—newly committed to in the reporting year of the DPR.

Priority: Build Capacity and Organization to Deliver on Existing and New Responsibilities	Type*: Ongoing	Strategic Outcome(s) and/or Program Activity(ies): Environmental Assessment Development Program / Environmental Assessment Support Program
Mostly met The Agency focused on building internal capacity for the effective delivery of its new role in the conduct of comprehensive studies. To this end, the Agency developed processes, guidance, training, and regulatory instruments to support the effective delivery of its EA responsibilities. The Agency also implemented organizational changes to support regional delivery of the comprehensive study process. The Agency manages the integration of Aboriginal consultation into the EAs it leads on behalf of the federal government. The Agency further refined its model for integrating Aboriginal consultation into the EA process and keeping detailed records of such consultations. This included training of employees in regional offices across the country on the delivery of the approach when conducting comprehensive studies and adapting the model for use in review panels.

* Type is defined as follows: Previously committed to—committed to in the first or second fiscal year before the subject year of the report; Ongoing—committed to at least three fiscal years before the subject year of the report; and New—newly committed to in the reporting year of the DPR.

Risk Analysis

Agency Operating Environment and Challenges

Protecting the environment, while supporting strong economic growth and improving the quality of life of Canadians, is an important challenge. Environmental assessment assists in addressing this challenge by ensuring that environmental effects are considered before decisions are made to allow policies, plans, programs, or projects to proceed.

Under the Canadian Environmental Assessment Act, responsible authorities (federal departments, agencies, and parent Crown corporations) must undertake an EA before carrying out a project; providing financial assistance to enable a project to be carried out; selling, leasing, or otherwise disposing of federal land to enable a project to be undertaken; or issuing certain authorizations to enable a project to go forward.

Projects subject to an EA under the Act—and policies, plans, and programs subject to an 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 and treaty rights, and federal–provincial/territorial cooperation. Environmental assessment must continually adapt to factors, such as changing economic and environmental conditions, new technologies, interpretations of statutory and common law, and evolving public expectations.

The following sections provide an overview of the Agency's operating environment and associated considerations and challenges.

Shared Responsibility for Environmental Management

Under the Canadian Constitution, environmental management is an area of shared responsibility between the federal and provincial/territorial governments. When the federal government and the government of a province or territory both require an environmental assessment, the Agency works with the other jurisdiction to design and deliver a single, effective, and efficient environmental assessment process. Bilateral agreements and project-specific arrangements define the roles and responsibilities in implementing the process in a manner that satisfies the requirements of both parties.

Supporting the Canadian Economy

An effective, timely, and predictable regulatory system which includes high-quality environmental assessments is a key contributor to a strong Canadian economy. The Agency continues to be an active partner in improving the performance of the regulatory system by implementing innovative ways to ensure that environmental considerations are taken into account in federal decision making and that federal EAs provide clear benefits to Canadians. The integration of the environmental effects of projects into planning and decision-making processes in a manner that promotes sustainable development will remain the focus of these efforts.

Amendments to the Canadian Environmental Assessment Act

Through amendments to the Canadian Environmental Assessment Act that came into force July 12, 2010, the Agency became responsible for the conduct of most comprehensive study EAs from the time a project becomes known until the Agency delivers its report to the Minister of the Environment. This shift in accountability from coordinating to delivering comprehensive studies represented a significant change in the Agency's operating environment.

Meaningful Participation of the Public

Projects subject to environmental assessment and their effects on the environment are complex, often giving rise to competing views on whether a project should proceed. Providing meaningful opportunities for Canadians to participate is central to the delivery of high-quality environmental assessments.

Aboriginal Consultation

The federal Crown has a duty to consult and—where appropriate—accommodate Aboriginal groups when it contemplates conduct that may adversely affect potential or established Aboriginal or treaty rights. As a result of the 2007 Cabinet Directive on Improving the Regulatory System for Major Resource Projects, it was decided that for major resource projects the environmental assessment process would be relied upon, to the extent possible, to fulfil the legal duty to consult. The Agency integrates Aboriginal consultations into the environmental assessments that it leads, consistent with the whole-of-government approach set out by the federal government in the above-mentioned Cabinet Directive. Aboriginal consultation presents opportunities to integrate traditional knowledge and diverse perspectives on the nature and exercise of Aboriginal or treaty rights into project assessment. Some associated challenges include reaching affected Aboriginal groups in locations that are often remote, or when a project intersects with the interests of multiple groups and may require diverse approaches to Aboriginal consultation.

Regulatory Improvement Initiative for Major Resource Projects

By conducting or managing the EAs and associated Aboriginal consultation for major resource projects, the Agency makes a major contribution to meeting the objectives of the Cabinet Directive on Improving the Performance of the Regulatory System for Major Resource Projects (October 2007) to provide a more efficient and effective regulatory system that will support an innovative and prosperous economy, protect the health and safety of Canadians, and conserve the environment.

Litigation

Litigation regarding the interpretation of the Act and the Crown's duty to consult Aboriginal groups may result in a need to take the necessary time to adjust practices to conform to court decisions. Rulings of the Supreme Court of Canada on the scope of the project to be considered in a federal EA and whether the Canadian Environmental Assessment Act applies to projects located on the territory subject to section 22 of the James Bay and Northern Quebec Agreement led to significant adjustments to federal EA practices.

International Considerations

International dialogue provides opportunities for Canada to share its environmental assessment experience and expertise and to learn from the EA practices of international organizations and other countries. Benefits include being able to incorporate best practices from elsewhere and to be aware of the effects of other environmental assessment regimes on Canada's competitiveness. The Agency will continue to develop relationships and maintain dialogue with the United States and other jurisdictions with comparable EA regimes. In addition, the Agency will continue to monitor Canada's obligations as a party to the United Nations Economic Commission for Europe's Convention on Environmental Impact Assessment in a Transboundary Context.

Parliamentary Review of the Act

The 2003 Act to amend the Canadian Environmental Assessment Act requires a legislative review by the Standing Committee on Environment and Sustainable Development of the provisions and operation of the Act. The Committee's report will be followed by a government response. The Agency is well-positioned to provide support to the committee process and to analyze and respond to any recommendations.

 

Summary of Performance

2010–2011 Financial Resources ($ thousands)*

Planned Spending	Total Authorities	Actual Spending
28,960	32,461	29,034

* Financial Resources should equal the Total line for Program Activities and Internal Services.

Note: At the end of the 2010–2011 fiscal year, the Agency's lapse of operating funds was due mainly to delays in the environmental assessment process as a result of changes to the design and timing of projects by proponents (and therefore outside the control of the Agency) and the delay of the initiation of the parliamentary review of the Canadian Environmental Assessment Act.

2010–2011 Human Resources (Full-Time Equivalents (FTEs))

Planned	Actual	Difference
235	235	0

Strategic Outcome

Performance Indicators	Targets	2010-2011 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	Not met Of the proposals reviewed by the Agency, 45% included a statement indicating the completion of a preliminary scan or a strategic environmental assessment, as per the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals. This result shows that many proposals do not explicitly state that they have included strategic environmental considerations. This may reflect an overall lack of awareness or a misinterpretation by departments and agencies of the requirements of the Cabinet Directive. It is clear that further guidance is needed to clarify and raise awareness around these requirements.
Percentage of EAs where the Agency is the federal environmental assessment coordinator (FEAC) or EA manager for which an EA work plan is developed and implemented by the Agency	An EA work plan is developed and implemented for 100% of project-specific EAs for which the Agency is FEAC or EA manager	Met all A work plan was developed and implemented by the Agency for 100% of the environmental assessments for which the Agency was FEAC or EA manager.

 

($ thousands) Program Activity	2009–2010 Actual Spending	2010–2011*				Alignment to Government of Canada Outcome
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
Environmental Assessment Development Program	4,238	4,153	4,153	4,482	3,765	Strong Economic Growth
Environmental Assessment Support Program	16,182	17,107	17,107	17,922	15,263	Strong Economic Growth
Total	20,420	21,260	21,260	22,404	19,028

 

($ thousands) Program Activity	2009–2010 Actual Spending	2010–2011*
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
Internal Services	9,940	7,700	7,700	10,058	10,006

* Beginning with the 2009–2010 estimates cycle, the resources for Program Activity Internal Services are displayed separately from other program activities. They are no longer distributed among the remaining program activities, as was the case in previous main estimates. This has affected the comparability of spending and FTE information by program activity between fiscal years.

 

Expenditure Profile

[Departmental Spending Trend]

For the 2010–2011 fiscal year, the Agency spent $29.0 million to achieve the expected results of its program activities and contribute to its strategic outcome.

For the 2007–2008 to 2010–2011 periods, total spending includes all parliamentary appropriations and revenue sources. It also includes carry-forward adjustments.

For the 2011–2012 to 2013–2014 periods, the total spending corresponds to planned spending and revenues. Supplementary funding and carry-forward adjustments are unknown at this point and, therefore, are 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. The Agency was also granted funding for review panel support and Aboriginal consultations conducted as part of an environmental assessment. Both sources of funding are scheduled to end in 2011–2012.

 

Estimates by Vote

For information on our organizational votes and/or statutory expenditures, please see the 2010–11 Public Accounts of Canada (Volume II) publication. An electronic version is available at the Public Works and Government Services Canada website.

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