ARCHIVED - Natural Resources Canada

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 has 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.

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 in both operational and policy areas. New capacity funding provided through this initiative will ensure key regulatory departments and agencies are positioned to respond to the recent growth in the number of new major resource projects and will better enable departments to meet their legal responsibilities for Aboriginal Crown consultation associated with their regulatory decisions relative to major resource projects.

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

Shared outcome(s): Among the more tangible improvements resulting from this initiative will be the timeliness and predictability of the regulatory process. The 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
• Aboriginal consultation responsibilities will be fulfilled in a more consistent, adequate and meaningful manner.

Governance structure(s): The Cabinet Directive on Improving the Performance of the Regulatory System for Major Resource Projects has 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 Indian Affairs and Northern Development, the Deputy Minister of Transport, the Associate Deputy Minister of Industry, the Deputy Minister of Justice, the Deputy Secretary to the Cabinet (Operations) - Privy Council Office, the President of the Canadian Environmental Assessment Agency, the President of the Canadian Nuclear Safety Commission and the Chair of the National Energy Board. The MPMO has been established to provide overarching management of the federal regulatory system for major resource projects. It will achieve 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 work with these departments and agencies to implement change. The MPMO will also provide 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.

Planning Highlights: To achieve the expected results, NRCan and its federal partners plan to undertake the following key initiatives:

• Develop and implement a whole-of-government strategy to modernize the regulatory review process for natural resource projects by:
  • Enhancing coordination and collaboration on high-quality, timely and predictable environmental assessment within the regulatory approval process;
  • Improving the process and capacity of Aboriginal engagement and consultations with respect to major resource projects;
  • Identifying and implementing process improvements to continue to improve the efficiency and effectiveness of the federal regulatory system for major resource projects; and,
  • Working with partners to strengthen northern regulatory regimes.
• 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; and,
  • Participation in the federal interdepartmental governance mechanism for major projects i.e., Major Projects Deputy Ministers' Committee.
• In addition, NRCan will work to identify opportunities to improve integration of federal and provincial regulatory review processes.

Federal Partner: Natural Resources Canada
($ millions)

Federal Partner Program Activity (PA)	Names of Programs for Federal Partners	Total Allocation (from Start to End Date)	Planned Spending for 2010-11	Expected Results for 2010-11
Natural Resource and Landmass Knowledge and Systems	Major Projects Management Office	$13,000,000	$4,500,000	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; and 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 consultations; 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.
Total NRCan		$13,000,000	$4,500,000

Federal Partner: Canadian Environmental Assessment Agency
($ millions)

Federal Partner Program Activity (PA)	Names of Programs for Federal Partners	Total Allocation (from Start to End Date)	Planned Spending for 2010-11	Expected Results for 2010-11
Environmental Assessment Support		$40,177,900	$8,355,750	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 related Aboriginal consultation activities for major resource projects; and, Develop and deliver training and guidance in support of the initiative.
Environmental Assessment Development		$3,991,000	$878,000	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; and,
Internal Support		$10,831,100	$2,666,250	Core support services are provided to support program delivery.
Total CEAA		$55,000,000	$11,900,000

Federal Partner: Environment Canada
($ millions)

Federal Partner Program Activity (PA)	Names of Programs for Federal Partners	Total Allocation (from Start to End Date)	Planned Spending for 2010-11	Expected Results for 2010-11
Biodiversity is conserved and protected	Wildlife program	$2,352,116	$466,159	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.
Water is clean, safe and secure	Aquatic ecosystems are conserved and protected	$614,683	$123,841	The Sustainable Water Management Division of EC provides hydrologic, water quantity and hydraulic advice regarding EC's environmental assessments of MPMO projects; and, EC's responsibilities associated with the International River Improvements Act are supported by standard operating procedures and policies for licensing.
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	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.
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	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.
Relations with other governments and partners are effectively managed in support of environmental priorities	Inter-governmental and stakeholder relations	$596,818	$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.
Strategic management support enables the department to meet its objectives	Legal services	$650,739	$141,844	Timely legal advice and support on delivery of national EA program involvement in major resource projects is provided.
Internal Services	Core Support Services	$1,028,148	$214,757	Core support services are provided to support program delivery.
Total EC		$12,500,000	$2,500,000

Federal Partner: Fisheries and Oceans Canada
($ millions)

Federal Partner Program Activity (PA)	Names of Programs for Federal Partners	Total Allocation (from Start to End Date)	Planned Spending for 2010-11	Expected Results for 2010-11
Habitat Management	Habitat Management	$34,041,800	$6,808,360	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.
Legal Services	Legal Services	$958,200	$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.
Total DFO		$35,000,000	$7,000,000

Federal Partner: Indian and Northern Affairs Canada
($ millions)

Federal Partner Program Activity (PA)	Names of Programs for Federal Partners	Total Allocation (from Start to End Date)	Planned Spending for 2010-11	Expected Results for 2010-11
Northern Land and Resources	Northern Affairs Organization	$6,600,000	$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
Responsible Federal Stewardship	Lands and Economic Development- Environmental Management	$3,400,000	$680,000	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.
Total INAC		$10,000,000	$2,000,000

Federal Partner: Transport Canada
($ millions)

Federal Partner Program Activity (PA)	Names of Programs for Federal Partners	Total Allocation (from Start to End Date)	Planned Spending for 2010-11	Expected Results for 2010-11
Transportation Safety and Security	Navigable Waters Protection Program	$3,365,555	$819,251	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.
Transportation Policy Development and Infrastructure Programs	Aboriginal Consultation Unit	$1,813,090	$457,388	TC to develop procedures for and participate in consultation with Aboriginal groups.
Sustainable Transportation Development and the Environment	Environmental Programs	$5,413,592	$1,364,819	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.
Internal Services	Departmental Administration, Finance and Legal Services	$3,407,763	$858,542	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.
Total TC		$17,500,000	$3,500,000
Total		$143,000,000	$31,400,000

*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.

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

Contact information:
Mr. Philip Jennings
Assistant Deputy Minister
Major Projects Management Office
Natural Resources Canada
155 Queen Street, 2^nd Floor
Ottawa, ON K1A 0E4