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Minister’s Message

As Minister responsible for the Canadian Environmental Assessment Agency, I am pleased to present the 2012-13 Report on Plans and Priorities for the Agency.

The Canadian Environmental Assessment Agency plays a key role in ensuring responsible resource development while effectively protecting the environment. It does this by providing timely, accurate and comprehensive information on the environmental effects of projects and how those effects can be mitigated to reduce the overall footprint of projects under federal jurisdiction. It also provides analysis and advice on how federal environmental assessment can contribute to responsible resource development, a key to long-term jobs and growth in Canada.

The Government of Canada recognizes its responsibility to ensure that Canada's abundant natural resources are developed in an environmentally sustainable manner for the benefit of all Canadians. It plans new legislation in 2012 to improve and streamline the review process for major economic projects. The new Canadian Environmental Assessment Act will provide fixed timelines that will increase certainty and predictability for business. The new Act will also strengthen environmental protection and focus on high-risk projects. It will be the foundation enabling consideration of the environmental effects of proposed projects, before decisions are made.

I invite parliamentarians and Canadians to read the 2012-13 Report on Plans and Priorities to learn more about the Canadian Environmental Assessment Agency's priorities and its role in supporting informed decisions.



The Honourable Peter Kent, P.C., M.P.
Minister of the Environment and
Minister responsible for the Canadian Environmental Assessment Agency






Section I: Agency Overview

Raison d’être

Environmental assessment contributes to informed decision making in support of sustainable development.

The Canadian Environmental Assessment Agency delivers high-quality environmental assessments and serves as the centre of expertise on environmental assessment within the federal government.

Responsibilities

Environmental assessment (EA) 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 environmental assessment requirements for those types of decisions. The Canadian Environmental Assessment Agency (the Agency) plays key roles in delivering and supporting assessments under the Act and providing guidance to assessments under the Cabinet Directive.

The Agency plays a key role in carrying out environmental assessments of major projects under the current Act. This role is proposed to continue under the new Act. Currently, the Agency conducts most comprehensive studies on behalf of the Government of Canada. The Agency advises and assists the Minister of the Environment in establishing review panels and supports panels in their work. The Agency also integrates the Government of Canada's Aboriginal consultation activities into the environmental assessment process to the greatest extent possible, for review panels and EAs for which it is responsible.

As the centre of expertise on EA within the federal government, the Agency provides advice and guidance across government to assist federal authorities in carrying out their environmental assessment responsibilities. 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 environmental assessment requirements with those of the provinces and territories. The Agency administers a participant funding program that supports individuals, non-profit organizations, and Aboriginal groups interested in participating in federal environmental assessment.

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.

With the introduction of new legislation in 2012, the Agency will focus its efforts on implementing the changes brought forward by the Government. It will have a more significant role in delivering federal EA and associated Aboriginal consultations to support responsible resource development.

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. An SEA is required when the proposal is being submitted to a minister or Cabinet for approval and may result in important environmental effects. 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

The Agency aims to achieve the following strategic outcome:

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

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

Program Activity Architecture

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

Canadian Environmental Assessment Agency's Program Activity Architecture

[text version]

Organizational Priorities


Priority Type1 Strategic Outcome(s) and/or Program Activity(ies)
Deliver high-quality environmental assessments of major projects Ongoing Environmental Assessment Development Program
Environmental Assessment Delivery Program
Description

Why is this a priority?

  • High-quality EAs provide a thorough consideration of the environmental effects of a project and measures to mitigate identified adverse effects, are informed by the participation of the public and consultation with Aboriginal groups, are completed in a timely manner, and provide the information necessary to enable decision making.
  • Consistent with its responsibilities under the Act for review panels and comprehensive studies, and for screenings of major resource projects as set out in the Cabinet Directive on Improving the Performance of the Regulatory System for Major Resource Projects, the Agency will focus its efforts on delivering high-quality EAs of major projects. This focus reflects the importance of these projects and their potential to significantly affect the environment.

Plans for meeting the priority

  • In delivering this priority, the Agency will place emphasis on cooperating with provinces; integrating Aboriginal consultation activities into the process to the greatest extent possible; engaging the public in meaningful ways; continually applying lessons learned from the implementation of the Establishing Timelines for Comprehensive Studies Regulations; developing operational policies, procedures, and service standards to guide the delivery of high-quality EAs; providing training, guidance, and effective management to support Agency staff in delivering high-quality EAs; and building the Agency staff capacity to fulfill its full range of responsibilities.

1 Type is defined as follows: previously committed to—committed to in the first or second fiscal year prior to the subject year of the report; ongoing—committed to at least three fiscal years prior to the subject year of the report; and new—newly committed to in the reporting year of the RPP or DPR.



Priority Type Strategic Outcome(s) and/or Program Activity(ies)
Build effective relationships with Aboriginal people Ongoing Environmental Assessment Development Program
Environmental Assessment Delivery Program
Description

Why is this a priority?

  • The Agency integrates consideration of impacts to established or potential Aboriginal and treaty rights, as well as current use of lands and resources by Aboriginal persons, into the environmental assessment process. It also participates in the negotiation and implementation of the environmental assessment components of land claim agreements and self-government arrangements. Building relationships with Aboriginal people that encourage and facilitate their active participation in these activities is essential for the successful delivery of the Agency's priorities, including high-quality EAs.

Plans for meeting the priority

  • To build effective relationships with Aboriginal people, the Agency will focus on actively engaging in discussions with Aboriginal groups potentially affected by the projects for which it is conducting an environmental assessment; pursuing outreach activities to provide information on the conduct of federal EAs and associated consultation activities to encourage Aboriginal groups to participate; effectively and efficiently making funds available through its participant funding program to assist Aboriginal groups participating in the environmental assessment process and associated Aboriginal consultation activities; integrating information on Aboriginal use of lands and resources, and on established or potential Aboriginal and treaty rights, into EAs; and providing training, guidance, and management support to staff undertaking Aboriginal consultation.


Priority Type Strategic Outcome(s) and/or Program Activity(ies)
Play a lead role in shaping the future of federal environmental assessment Ongoing Environmental Assessment Development Program
Environmental Assessment Delivery Program
Description

Why is this a priority?

  • The Agency recognizes that to remain effective and support sound decisions, the environmental assessment system must be responsive to Canada's evolving economic, technological, social and physical environment. To this end, the Agency continually strives to identify how federal EA can better inform and support decision making.

Plans for meeting the priority

  • In 2012, the Government committed to introducing new legislation to modernize the regulatory system. The Agency will focus its efforts on the planning and delivery of changes to the EA process resulting from that legislation.
  • The Agency will work with its federal partners, provinces and territories, Aboriginal groups, stakeholders, and other countries to understand emerging issues and trends in EA; define policy direction; develop cooperative environmental assessment arrangements; provide guidance on federal EA; develop guidance to strengthen SEA; and pursue legislative, regulatory and policy improvements.
  • The House of Commons Standing Committee on Environment and Sustainable Development has completed a review of the Act and has presented its recommendations to Parliament. The Agency will support the Minister of the Environment in reviewing and responding to the Committee's report.

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 providing financial assistance for a project, making decisions as a land manager, issuing authorizations to enable a project to go forward, or serving as proponent of a project.

Projects subject to an EA under the Act, as well as 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 EAs, 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 EAs, 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. It continues to implement innovative ways to ensure that environmental considerations are taken into account in federal decision making and that federal EAs provide clear benefits to Canadians. In 2012, the Government committed to introducing new legislation to modernize the regulatory system. The Agency will focus its efforts on the planning and implementation of changes to the EA process resulting from that legislation.

Amendments to the Canadian Environmental Assessment Act and Associated Regulations

The Government is committed to introducing new legislation to make the review process for major projects more predictable and timely, to reduce duplication and overlap and to strengthen environmental protection. Planning for these changes at the Agency is currently underway.

The proposed legislative changes follow a legislative review by parliamentary committee of the provisions and operation of the current Act. The House of Commons Standing Committee on Environment and Sustainable Development completed its review in 2012.

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. This was an important shift from its previous coordinating function. The Agency must also comply with the Establishing Timelines for Comprehensive Studies Regulations, effective June 23, 2011.

Meaningful Participation of the Public

Projects subject to an EA and their effects on the environment are complex, often giving rise to competing views on whether and how a project should proceed. Providing meaningful opportunities for Canadians to participate is central to the delivery of high-quality EAs. The public's views are incorporated into EAs and considered in making decisions.

Aboriginal Consultation

The federal Crown has a duty to consult and, where appropriate, accommodate Aboriginal groups when it contemplates conduct that may adversely affect established or potential Aboriginal or treaty rights. As a result of the 2007 Cabinet Directive on Improving the Performance of 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 fulfill the legal duty to consult. The Agency integrates Aboriginal consultation into the EAs 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.

Regulatory Improvement Initiative for Major Resource Projects

In 2007, the Government implemented the Cabinet Directive on Improving the Performance of the Regulatory System for Major Resource Projects. The Cabinet Directive sets out the Government's expectations with respect to how the regulatory system for major projects, of which environmental assessment is central, is to perform. The Agency plays a key role in the delivery of the regulatory system for major projects. In addition, the Government has committed to continuing to improve the effectiveness and efficiency of the regulatory system in order to support an innovative and prosperous economy, protect the health and safety of Canadians, and protect 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. For example, a 2010 ruling of the Supreme Court of Canada on the scope of the project to be considered in a federal EA led to significant adjustments to federal environmental assessment practices.

International Considerations

International dialogue provides opportunities for Canada to share its environmental assessment experience and expertise and learn from the environmental assessment 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. In addition, the Agency will continue to develop relationships and maintain dialogue with other jurisdictions with comparable environmental assessment regimes. To this end, the Agency continues to engage in informal meetings with the United States Environmental Protection Agency and has begun an ongoing dialogue with its counterparts in the Australian government.

Delivering Responsibilities Efficiently and Effectively

The Agency received funding in 2007 for two key initiatives: to improve Canada's regulatory framework for major resource projects and to integrate Aboriginal consultation into EAs. The Agency has made considerable progress in establishing procedures and guidance to deliver timely and effective comprehensive study EAs and coordinate Aboriginal consultation associated with the EAs it manages. The Agency will focus in the coming years on implementing and drawing on lessons learned from these approaches.

Planning Summary

The financial resources table below provides a summary of the total planned spending for the Agency for the next three fiscal years.

Financial Resources ($ thousands)


2012-13 2013-14 2014-15
29,625 29,656 29,511

The human resources table below provides a summary of the total planned human resources for the Agency for the next three fiscal years.


Human Resources (Full-Time Equivalents—FTEs)


2012-13 2013-14 2014-15
241 241 240


Strategic Outcome:
Environmental considerations are taken into account in federal government decisions respecting policies, plans, programs, and projects.
Performance Indicators Targets
  • Percentage of policy, plan and program proposals for consideration by Cabinet that include strategic environmental considerations.
  • Percentage of EAs where the Agency is the environmental assessment manager or performs the duties of the responsible authority for which an environmental assessment work plan is developed and implemented by the Agency that will lead to the delivery of a high-quality EA.
  • Ninety percent of the Memoranda to Cabinet that require an SEA include strategic environmental considerations.
  • An environmental assessment work plan that will lead to the delivery of a high-quality EA is developed and implemented for 100% of project-specific EAs where the Agency is the environmental assessment manager or performs the duties of the responsible authority.
Planning Summary Table
($ thousands)
Program Activity Forecast
Spending
2011-12
Planned Spending Alignment to Government of Canada Outcomes
2012-13 2013-14 2014-15
Environmental Assessment Development Program 4,222 4,313 4,322 4,184 Strong Economic Growth
Environmental Assessment Delivery Program 18,348 17,737 17,758 17,758 Strong Economic Growth
Total Planned Spending 22,050 22,080 21,942  


Planning Summary Table
($ thousands)
Program Activity Forecast
Spending
2011-12
Planned Spending
2012-13 2013-14 2014-15
Internal Services 7,563 7,575 7,576 7,569
Total Planned Spending 7,575 7,576 7,569

Expenditure Profile

Departmental Spending Trend

Expenditure Profile - Spending Trend

[text version]

For the 2012-13 fiscal year, the Agency plans to spend its $30 million authority to achieve the expected results of its program activities and contribute to its strategic outcome.

For the 2008-09 to 2011-12 periods, total spending includes all parliamentary appropriation and revenue sources. It also includes carry forward adjustments. For the 2012-13 to 2013-14 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 in the expenditure profile.

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 up to 2011-12. The Agency also received funding to integrate Aboriginal consultation into the EAs it manages. Both funding initiatives are scheduled to sunset by 2011-12. For 2012-13 and beyond, the Agency is reflecting its expenditure profile based on planned appropriations for Aboriginal consultations for environmental assessment processes and for improved performance of the regulatory system for major resource projects.

Estimates by Vote

For information on our organizational appropriations, please see the 2012-13 Main Estimates publication.