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Horizontal Initiatives




Name of Horizontal Initiative: Improving the Performance of the Regulatory System for Major Natural Resource Projects

Name of lead department(s): Natural Resources Canada

Lead department program activity: Safety, Security and Stewardship – Natural Resource and Landmass Knowledge and Systems

Start date of the Horizontal Initiative: October 1, 2007

End date of the Horizontal Initiative: March 31, 2012

Total federal funding allocation (start to end date): $150 million over 5 years

Description of the Horizontal Initiative (including funding agreement):

To respond to the recent growth in the number of major resource projects and move forward on commitments to create a more accountable, predictable and timely regulatory review process, the Government allocated $150 million over five years to establish the Major Projects Management Office (MPMO) within Natural Resources Canada (NRCan); and to increase the scientific and technical capacity of key regulatory departments and agencies to improve the efficiency and effectiveness of the regulatory system for major resource projects.

The MPMO has been created to provide a single point of entry into the federal regulatory system for all stakeholders and to provide overarching management of the federal regulatory process for major natural resource projects. New capacity funding provided through this initiative is ensuring that key regulatory departments and agencies are positioned to respond to the regulatory demands of new major resource projects and better meet any legal responsibilities for Aboriginal Crown consultation associated with their regulatory decisions.

The purpose of the initiative is to provide the oversight and capacity needed to address issues affecting the performance of the federal regulatory system. In short, it is laying the foundation for more predictable and accountable regulatory processes that will improve the competitiveness of Canada's resource industries while ensuring careful consideration of environmental standards and technical requirements.

Shared outcomes:

Among the more tangible improvements resulting from this initiative is the timeliness and predictability of the regulatory process. The process for environmental review and permitting of major resource projects is targeted to be reduced from upwards of four years to an average of about two years.

Other important outcomes from this proposal include:

  • A more accountable, predictable and timely regulatory review process that will facilitate investment and planning decisions and improve the competitiveness of Canada's resources industries;
  • High quality assessments of the environmental and social effects of resource development so that federal decisions in relation to projects safeguard the environment and promote sustainability; and,
  • The fulfillment of Aboriginal consultation responsibilities in a more consistent, adequate and meaningful manner.

Governance structures:

The Cabinet Directive on Improving the Performance of the Regulatory System for Major Resource Projects established a new governance framework for federal government departments and agencies to facilitate the effective, coordinated, and concurrent discharge of their statutory duties, functions and obligations related to the regulation of major resource projects. It encourages federal government departments to work together to identify areas where the consistency, efficiency and effectiveness of the federal regulatory system can be improved and to develop and implement system improvements. These activities are intended to improve the accountability, transparency, timeliness and predictability of the federal regulatory system for major natural resource projects.

The Minister of Natural Resources is the lead Minister for the Initiative. In collaboration with his counterparts in other regulatory departments, the Minister of Natural Resources will report biannually to Cabinet on progress made towards achieving the objectives of the initiative, and will report annually to Parliament and the public through NRCan's annual reporting requirements.

A Major Projects Deputy Ministers' Committee has been created to serve as the governance body for the implementation of the initiative. This Committee will provide direction for the resolution of project-specific issues and oversee the application of the Cabinet Directive. Membership on this committee includes the Deputy Minister of NRCan (Chair), the Deputy Minister of Fisheries and Oceans Canada, the Deputy Minister of the Environment, the Deputy Minister of Aboriginal Affairs and Northern Development, the Associate Deputy Minister of Transport, the President of the Canadian Environmental Assessment Agency, the President of the Canadian Nuclear Safety Commission, the Chair of the National Energy Board, the Deputy Minister of Justice, the Deputy Secretary of the Privy Council Office and the President of the Canadian Northern Economic Development Agency.

The MPMO has been established to provide overarching management of the federal regulatory system for major resource projects. It achieves this by working with the federal regulatory departments / agencies to identify areas where the consistency, efficiency and effectiveness of the federal regulatory process can be improved and to implement change. The MPMO also provides support to the Major Projects Deputy Ministers' Committee, through the provision of data, analysis and other information.

To ensure effective communication with federal regulatory departments on key issues and to facilitate collaboration and cooperation, interdepartmental working groups have been established at the ADM, DG and working levels.

Performance Highlights:

( $ millions):

Federal Partners Federal Partner Program Activity Names of Programs for Federal Partners Total Allocation (from Start to End Date)* Planned Spending for
2010-11
Actual Spending for
2010–11
Expected Results for
2010-11
Results Achieved in
2010–11
Natural Resources Canada Natural Resource and Landmass Knowledge and Systems a. Major Projects Management Office $13,000,000 $4,500,000 $4,535,638

Lead the development and implementation of a whole-of-government strategy to modernize the regulatory review process for natural resource projects;

Ensure the environmental assessment and regulatory review processes for major resource projects are integrated and well coordinated through the development of Project Agreements;

Increase the transparency and accountability of the federal regulatory review process through increased oversight and regular monitoring, tracking and reporting on progress against commitments in Project Agreements;

Identify and implement process improvements to continue to improve the efficiency and effectiveness of the federal regulatory system for major resource projects.

Lead the development and implementation of a consistent, whole of government approach to Aboriginal consultation;

Work collaboratively with provincial governments to identify opportunities to improve integration of federal and provincial review processes; and,

Work with partners to strengthen northern regulatory regimes.

Following its third full year of operations, the MPMO is now overseeing the federal regulatory review process for more than 70 major natural resource projects representing over $120 billion in potential new capital investment in communities across Canada.

Continuing its work in ensuring effective and efficient project reviews, the MPMO has introduced a number of important improvements, including:

  • Development of multiple Project Agreements signed by Deputy Ministers which included new service standards and target timelines (e.g., 2-year average) for each major project review.
  • Publicly tracking and monitoring performance of federal reviews for projects under the MPMO initiative to ensure greater transparency and accountability.
  • In 2010-2011, departments met their collective target timeline by delivering more than 80% of project reviews on time.

NRCan/MPMO also chaired monthly meetings of the Major Projects Deputy Ministers' Committee and supporting ADM and DG Committees to ensure timely resolution of project related issues, and to advance new policies, procedures and analysis to further improve the performance of the federal regulatory system for major resource projects;

In addition, the MPMO continued to lead federal efforts to identify opportunities to fundamentally improve environmental assessment and regulatory permitting processes as well as related Aboriginal consultation activities.  For example, the Jobs and Economic Growth Act:

  • Introduced targeted changes to the Canadian Environmental Assessment Act that have improved the delivery of environmental assessments in Canada, allowing assessments to start sooner, reducing delays and duplication, and are resulting in better assessments overall.
  • Established Participant Funding Programs for the CNSC and the NEB to support more timely and meaningful engagement of all Canadians, including Aboriginal people, in the public hearing processes.

The whole-of-government approach to Aboriginal consultation under the MPMO Initiative continues to be strengthened and applied:

  • Progress has been made to strengthen Aboriginal consultation work-planning, information-sharing and evaluation within federal review processes to inform more effective and legally sound decision-making.
  • The MPMO launched a Government-wide electronic records management system that enables sharing of consultation records across federal organizations, and provides transparent access to consultation information to over 350 federal officials across Canada.

The MPMO worked in close collaboration with provincial governments to identify opportunities to improve the integration of federal and provincial regulatory processes and requirements.

The MPMO also continued to work in close collaboration with the Canadian Northern Economic Development Agency to support the successful creation and establishment of the Northern Projects Management Office.

Total NRCan $13,000,000 $4,500,000 $4,535,638    
Canadian Environmental Assessment Agency Environmental Assessment Support   $40,177,900 $8,355,750 $ 8,056,767

Support a whole-of-government approach to addressing strategic and project-specific environmental assessment issues, including supporting implementation of the major resource projects initiative;

Manage the federal environmental assessment process and lead the integration of federal Aboriginal-Crown consultation activities for the review of major resource projects;

Develop and deliver training and guidance in support of the initiative.

Worked in collaboration with other organizations involved in the MPMO Initiative to strengthen coordination of EAs federally (such as outreach activities to successfully implement the amendments to the Canadian Environmental Assessment Act), to integrate EA into the federal regulatory process more effectively and, in support of a ‘one-window’ approach, to integrate Aboriginal consultation in EA process for major resource projects.

Led the federal  environmental assessment process for major natural resource projects (with the exception of CNSC and NEB screening and comprehensive studies), and coordinated Aboriginal engagement and consultation activities with the EA of 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.
   
Initiated work on the implementation of an information management system (InfoZONE) for project related information that will assist in the centralization of the Crown records within the MPMO. Implementation is expected in year 2011-2012.  

Updated the training package on Aboriginal consultation and delivered the course to the federal community.

Delivered basic training to the federal community and other interested parties through courses, such as an introduction to the Act and Screenings under the Act.

Supported public participation and Aboriginal consultation during comprehensive studies of major resource projects through the administration of a Participant Funding Program.

Supported MPMO-led initiatives aimed at working with stakeholders to identify opportunity to improve the regulatory system. This included an Aboriginal consultation workshop, co-led by the Agency and the MPMO, aimed at ensuring greater cohesion and cooperation among federal partners in relation to Aboriginal consultation activities.

 

Environmental Assessment Development   $3,991,000 $878,000 $ 814,622

Support the implementation of this horizontal initiative focused on achieving improvements in the process, capacity, and associated Aboriginal consultations with respect to major resource projects;

Contribute to the ongoing development of policies, procedures and guidance materials for enhancing coordination and collaboration on high-quality, timely and predictable environmental assessment within the regulatory approval process;

Contribute to the development of policies and procedures in support of the integration of Aboriginal Crown consultations in the environmental assessment and regulatory approval process.

Developed, jointly with other organizations involved with the MPMO Initiative, procedural documents and templates to improve process clarity, promote early engagement between project proponents and regulators, and ensure a coordinated federal approach throughout the entire review process (e.g. standardized milestones for Project Agreements, improved dashboard for senior management project tracking).

Established, jointly with other organizations involved in the MPMO Initiative, policies and guidance materials for enhancing coordination and collaboration on high quality, timely, and predictable environmental assessment within the regulatory approval process, such as operational guidance on the scope of a project pursuant to the Supreme Court decision in MiningWatch and operational implementation of the Supreme Court decision in Vanadium for projects in the James Bay and Northern Quebec Agreement territory.

Ongoing development, jointly with other organizations involved in the MPMO Initiative, of new policies, processes, procedures and guidance materials on the integration of Aboriginal Crown consultations in the EA and regulatory approval process. This included a policy framework to guide the activities of the Agency as Crown consultation coordinator for major resource projects and the development and implementation of an integration model for EA and Aboriginal consultation with supporting guidance for Agency staff serving as the Crown consultation coordinator.

Internal Support   $10,831,100 $2,666,250 $ 2,566,634 Core support services are provided to support program delivery. New staff successfully integrated into the organization. Accommodation required was provided. Provided infrastructure support for Program Delivery.
Total CEAA $55,000,000 $11,900,000 $11,438,023    
Environment Canada Biodiversity is conserved and protected Wildlife program $2,352,116 $466,159 $401,426

The efficiency and effectiveness of Environment Canada’s Canadian Wildlife Service’s regulatory role in major resource projects is improved; and,

Guidance is developed to support Environment Canada’s Canadian Wildlife Service involvement in the EA process for major resource projects.

Improved the efficiency and effectiveness of the Canadian Wildlife Service's regulatory role in major resource projects.

Developed guidance to support Canadian Wildlife Service involvement in the EA process for major resource projects.

Drafted policies related to the issuance of permits under the Species at Risk Act, the Canada Wildlife Act and the Migratory Birds Convention Act.

Drafted guidance documents to facilitate the incorporation of wildlife considerations in federal environmental assessment processes for major resource projects.

Water is clean, safe and secure Aquatic ecosystems are conserved and protected $614,683 $123,841 $123,841

The Sustainable Water Management Division of EC provides hydrologic, water quantity and hydraulic advice regarding EC’s environmental assessments of MPMO projects;

EC’s responsibilities associated with the International River Improvements Act are supported by standard operating procedures and policies for licensing.

Supported EC's responsibilities associated with the International River Improvements Act (IRIA) by upholding standard operating procedures and policies for licensing.


Supported EC’s responsibilities in the EA process associated with the IRIA for major natural resource projects by providing guidance, processes and issues reviews; and providing comments on hydrology, water quantity and water management.

Supported expert involvement with respect to hydrology, water quantity, hydraulics and water management in the regulatory review of major resource projects.

Amendments to the IRIA regulations were developed, reviewed and published through the formal process. 

Canadians adopt approaches that ensure the sustainable use and management of natural capital and working landscapes Environmental assessment and ecological monitoring $4,533,659 $868,975 $807,058

Environment Canada’s participation in the Major Projects Deputy Ministers’ Committee and associated governance structure is supported;

Departmental EA processes are streamlined to ensure efficiency and effectiveness of the MPMO regulatory process for major resource projects;

Regional offices are supported in the delivery of streamlining priorities for major resource projects; and,

Environment Canada’s participation in the regulatory streamlining initiative for major resource projects is well coordinated. 

MPMO’s governance structure was supported through participation in the Major Projects Deputy Ministers’ Committee and associated committees and working groups.


Departmental EA processes were streamlined to ensure efficiency and effectiveness of the MPMO regulatory process for major resource projects.


Regional offices were supported in the delivery of streamlining priorities for major resource projects via National Program liaison activities and coordination.


Coordinated Environment Canada's participation in the MPMO Initiative to meet established timelines and deliverables. Streamlined departmental EA processes, met established timelines and incorporated lessons learned from previous EA experience through workshops, post-project evaluations and contributions to operational policy statements.

Contributed to the interdepartmental impact analysis of Supreme Court decisions and supported related guidance on compliance.

Developed guidance, tools and training to support enhanced engagement in MPMO-track regulatory processes for major resource projects.

Worked with MPMO on the development of a Crown record management system.Followed established information monitoring and tracking procedures, systems, and databases for all MPMO projects.

Reviewed Terms of Reference and coordinated the provision of regional expertise for major resource projects.

Provided advice on policy / process and procedures to ensure quality control / consistency on input into environmental assessments of major resource projects.

Pursued national consistency and integration with respect to major resource project EA activities by working with other regions; headquarters; CEAA and the Major Project Management Office.

Supported RAs in engaging Aboriginal groups on major resource projects.  Provided strengthened and consistent capacity for Aboriginal consultation and engagement for major projects EA activities when requested by RAs.

Provided strategic advice and direction for EA with respect to Aboriginal issues, concerns and consultation pressures.  Ensured consistent consideration of issues in project reviews.

Documented risk-based decisions on Aboriginal consultation and strategic decisions made based on consultation needs.


Participated in regional networks to deal with existing and emerging marine and disposal at sea issues.

Risks to Canadians, their health and their environment posed by toxic and other harmful substances are reduced Risk management/ Risk mitigation and implementation $2,723,837 $562,122 $448,983

EC provides input into the federal EA process for major resource projects through the provision of expertise;

Environment Canada’s regulatory decisions related to Ocean Disposal permitting are timely; and,

Environment Canada’s involvement in the regulatory process for major natural resource projects is supported by guidance.

EC provided expert advice on major projects regarding disposal at sea, energy-related projects, mining projects and Metal Mining Effluent Regulations (MMER) for tailings impoundment areas.

Expert groups played a central and coordinating role on EA technical matters and projects.

Enhanced departmental technical expertise and processes to contribute to EAs. 

Provided guidance to support Environment Canada's involvement in the regulatory process for major resource projects.

Ensured timely regulatory decisions related to Ocean Disposal permitting.

Supported EC’s involvement in the regulatory process for major resource projects via triage systems and Regulatory Impact Analysis development work for regulatory amendments for the MMER.

Relations with other governments and partners are effectively managed in support of environmental priorities Inter-governmental and stakeholder relations $596,818 $122,302 $122,302

Regular, timely, and strategic advice is provided on consultation and engaging Aboriginal groups throughout the regulatory process for major resource projects; and,

Environment Canada’s participation on the Crown Oversight Committee and associated working groups on Aboriginal consultation is supported.

Regular, timely, strategic advice and training was provided on consultation and engaging Aboriginal groups throughout the regulatory process for major resource projects.


Supported Environment Canada's participation on the Crown Oversight Committee and associated working groups on Aboriginal consultation.


Worked with MPMO on the development of a Crown record management system.A departmental Policy on Public Participation and Aboriginal Consultation was developed and released.

Provided advice, support and training on public participation and aboriginal consultations relating to major natural resource projects.

Strategic management support enables the department to meet its objectives Legal services $650,739 $141,844 $192,100 Timely legal advice and support on delivery of national EA program involvement in major resource projects is provided.  Provided timely legal advice and support to deliver national EA program involvement in major resource projects, interpretation of court challenges and key policy considerations.
Internal Services Core Support Services $1,028,148 $214,757 $227,117 Core support services are provided to support program delivery. Core support services were provided to support program delivery.
Total EC $12,500,000 $2,500,000 $2,322,827    
Fisheries and Oceans Canada Habitat Management Habitat Management $34,041,800 $6,808,360 $6,437,564

Participation in the governance mechanism, e.g., Major projects Deputy Ministers’ Committee and supporting governance structures;

Provision of support to various initiatives led by MPMO in relation to the areas of regulatory activities, environmental assessment and Aboriginal consultation; and,

Provision of DFO technical capacity in the areas of the Fisheries Act, Species at Risk Act (SARA), Canadian Environmental Assessment Act (CEAA) and Aboriginal consultation activities relative to DFO’s regulatory decisions associated with major resource projects identified under this initiative.

Continued participation in the governance mechanisms at the senior management level, e.g., Major Projects Deputy Ministers' Committee, as well as other levels of working groups, discussions, etc. in the areas of regulatory activities, environmental assessment and Aboriginal consultation.

Provision of support to various initiatives led by MPMO in relation to areas of regulatory activities under the Fisheries Act and associated environmental assessment and Aboriginal consultation activities.

Continued provision of input to analyses of legislative, regulatory and policy issues associated with those areas relating to DFO mandates and responsibilities, as well as input to potential solutions.Provision of input in relation to DFO mandates and responsibilities for discussions with provincial governments to identify means of coordination and cooperation to determine areas for improved efficiencies and effectiveness.

Continued to provide technical capacity for advice to proponents, regulatory partners and external stakeholders in support of regulatory reviews and related activities for major resource projects under the Fisheries Act, and the associated environmental assessment and Aboriginal consultation processes.

Legal Services Legal Services $958,200 $191,640 $191,640 Provision of Legal Services to DFO and legal support to MPMO legal working group to operationalize initiatives put forward by MPMO as they relate to the Fisheries Act, CEAA, SARA and Aboriginal consultation issues associated with resource projects addressed under the initiative.

Provided legal advice and legal risk analysis associated with the review of EA reports and preparation of the RAs' course of action decision.

Provided legal advice and support of DFO's input to MPMO to operationalize the initiatives.

Total DFO $35,000,000 $7,000,000 $6,629,204    
Aboriginal Affairs and Northern Development Canada Northern Land and Resources Northern Affairs Organization $6,600,000 $1,320,000 $1,320,000

Timely and effective interventions in board hearings in North;

EA, regulatory, permitting and monitoring exercises carried out in a more timely and effective manner;

Increased capacity for Northern boards to carry out environmental assessment and regulatory responsibilities in a timely and effective manner;

Section 35 Aboriginal consultation carried out effectively and efficiently; and,

Northern partners participate in processes to strengthen northern EA and regulatory regimes.

Led AANDC participation and technical input into environmental assessments, and contributed to Crown consultation assessment and planning.

Initiated and/or continued specific projects including: saline contaminants in permafrost, drilling-mud sump research, and a delineation of lead/zinc near the abandoned Pine Point mine.

Conducted land and water use inspections of the South Mackenzie District Boards, used resources to undertake an external review of the environmental assessment process, developed a strategic and business plan, operating guides and regulatory procedures documents. 

Funding supported an FTE at the Mackenzie Valley Land and Water Board to enable it to better meet its Aboriginal consultation responsibilities. Funding provided was used towards participation in six different land and water Working Groups, to update and re-design websites, as well as, to establish an electronic Public Registry for regulatory applications and approval processes.

Seven consultation files were concluded.

Draft of Crown Consultation and Accommodation template completed; Consultation Map completed.

Responsible Federal Stewardship Lands and Economic Development – Environmental Management $3,400,000 $680,000 $420,000

Timely review and feedback on work plans, draft project agreements and final project agreements for major projects at regional and HQ levels;

Partners participate in processes to strengthen northern regulatory regimes; and,

Greater participation of First Nations and Inuit in major project review and licensing process.

Provided timely review and feedback on work plans, draft project agreements and final project agreements for major projects at regional and HQ levels;

Contributed to the timely and effective regulatory review of the Enbridge Northern Gateway Project;

Contributed to the greater participation of First Nations in major project reviews by contributing to the Aboriginal Funding Envelope associated with the Enbridge Northern Gateway Project.

Total AANDC $10,000,000 $2,000,000 $1,740,000    
Transport Canada Transportation Safety and Security   $3,365,555 $819,251 $ 1,918,372

To participate in the various governance mechanisms for the MPMO;

TC (headquarters and regional staff) to participate in working groups to assist with the creation and approval of key documents, processes and tracking systems required to operationalize the MPMO office; and,

TC to participate in projects in the MPMO process.

TC participated in various governance mechanisms established for the MPMO initiative, or that are aiding the MPMO initiative, including the Director General, Assistant Deputy Minister, and Deputy Minister Committees.

TC (headquarters and regional staff) participated in interdepartmental working groups to assist with the creation and approval of key documents, processes, and tracking systems required to operationalize the MPMO initiative; and,

TC maintained a headquarters MPMO committee in order to ensure that new MPMO processes are applied internally in as efficient a manner as possible and that advice to the Associate Deputy Minister is provided in a timely and coordinated manner.

Transportation Policy Development and Infrastructure Programs   $1,813,090 $457,388 Note: Due to changes in the Programs Activity Area (PAA) architecture, actual spending for this activity was transferred to other activity areas TC to develop procedures for and participate in consultation with Aboriginal groups. TC’s Aboriginal Consultation Unit assisted in implementing Aboriginal consultation for MPMO projects.  TC has also developed Aboriginal Consultation and Accommodation Guidelines, tools and training materials.  Finally, TC liaises with the MPMO and other government departments in implementing a whole-of-government approach for Aboriginal Consultation.
Sustainable Transportation Development and the Environment   $5,413,592 $1,364,819 $589,332

To participate in the various governance mechanisms for the MPMO;
TC (headquarters and regional staff) to participate in working groups to assist with the creation and approval of key documents, processes and tracking systems required to operationalize the MPMO office;


TC to work on departmental processes to ensure MPMO processes are applied in an efficient manner internally; and,


TC to participate in projects in the MPMO process.

TC participated in various governance mechanisms established for the MPMO initiative, or that are aiding the MPMO initiative including the Director General, Assistant Deputy Minister, and Deputy Minister Committees;

TC (headquarters and regional staff) participated in working groups to assist with the creation and approval of key documents, processes and tracking systems required to operationalize the MPMO initiative;

TC maintained a headquarters MPMO committee in order to ensure new MPMO processes are applied internally in as efficient a manner as possible, and that advice to be provided to the Associate Deputy Minister is provided in a timely and coordinated manner;

TC HQ held monthly teleconferences with regional staff to ensure consistent and effective implementation of the initiative; and,Funding received was used in order to increase capacity for technical review of EAs and other key aspects of carrying out EAs for major resource projects.

Internal Services   $3,407,763 $858,542 $770,611 TC to hire lawyers to increase capacity to deal with legal issues associated with the regulatory process across the country; and,
To support corporate involvement.
TC has engaged their legal services staff for review of various MPMO documents; and,
Legal services staff applied a portfolio approach to deal with legal issues associated with the regulatory process across the country.
Total TC $17,500,000 $3,500,000 $3,278,315    
Total $143,000,000 $31,400,000 $29,944,007    

*Totals do not equal the total allocation under the initiative (i.e.; $150 million over five years) due to changes that have occurred in departmental Program Activity Architectures since the beginning of the initiative.

Comments on Variances: N/A

Results to be achieved by non-federal partners (if applicable): N/A

Contact information:

Mr. Jay Khosla
Assistant Deputy Minister
Major Projects Management Office
Natural Resources Canada
155 Queen St
Ottawa, ON K1A 0E4