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Minister's Message

I am pleased to present the Canadian Environmental Assessment Agency's 2008-2009 Departmental Performance Report. This report outlines the Agency's progress in ensuring environmental considerations are taken into account in federal government decisions respecting, policies, plans, programs and projects.

The Agency continued to focus on three key priorities first established in 2006-2007: building a framework for more integrated environmental assessment, playing an active leadership role in federal environmental assessment, and building the capacity and organization to deliver on existing and new responsibilities.

Through collaboration with its federal partners in the implementation of the Canadian Environmental Assessment Act and by embracing innovative ways to address new and existing challenges, the Agency has continued to lead efforts to ensure Canada has a progressive and robust federal environmental assessment regime.

I am pleased, therefore, to submit the Agency's 2008-2009 Departmental Performance Report.

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Section 1: Agency Overview

In this section:

• Raison d’être
• Responsibilities
• Strategic Outcome and Program Activity Architecture
• Summary of Performance
• Contribution of Priorities to Strategic Outcome
• Risk Analysis
• Expenditure Profile
• Voted and Statutory Items

 

1.1 Raison d’être

The Canadian Environmental Assessment Agency (the Agency) provides leadership and serves as the centre of expertise for federal environmental assessment. The Agency works to provide Canadians with high-quality environmental assessments that contribute to informed decision making in support of sustainable development.

1.2 Responsibilities

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

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

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

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

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

The President of the Agency has been designated by Order in Council as the federal administrator of the environmental and social protection regimes set out in Chapters 22 and 23 of the 1975 James Bay and Northern Quebec Agreement.

1.3 Strategic Outcome and Program Activity Architecture

Strategic Outcome

In order to effectively pursue its mandate, the Agency aims to achieve the following strategic outcome: Environmental considerations are taken into account in federal government decisions respecting policies, plans, programs and projects.

Program Activity Architecture

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

 

Program Activity Architecture: Long Description

1.4 Summary of Performance

2008-2009 Financial Resources ($000s)

Planned Spending	Total Authorities	Actual Spending
34,456	36,080	28,248

 

2008-2009 Human Resources (FTEs)

Planned	Actual	Difference
248	181	67

 

Performance Summary

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

Performance Indicators	Targets	2008-2009 Performance
Percentage of policy, plan and program proposals for consideration by Cabinet (which are subject to the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals) that include strategic environmental considerations.	90% of policy, plan and program proposals for consideration by Cabinet (that are subject to the Cabinet Directive and are reviewed by the Agency) include strategic environmental considerations.	Of the proposals reviewed by the Agency that were subject to the Cabinet Directive, 91% reported the conduct of at least a preliminary scan of strategic environmental considerations.
Percentage of environmental assessments (EAs), for which the Agency is the Federal Environmental Assessment Coordinator (FEAC) or the EA manager, for which an EA work plan is developed and implemented by the Agency.	For 100% of EAs for which the Agency is FEAC or EA manager, an EA work plan is developed and implemented.	Of 78 EAs for which the Agency was FEAC or EA manager, 66 (84.6%) had EA work plans which were developed and implemented.

($000s)

Program Activity	2007-2008 Actual Spending	2008-2009				Alignment to Government of Canada Outcomes
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
Environmental Assessment Development Program	4,252	5,956	5,956	6,518	6,605	Strong Economic Growth
Environmental Assessment Support Program	14,025	28,500	28,500	29,562	21,643	Strong Economic Growth
Total	18,277	34,456	34,456	36,080	28,248

A significant increase in spending occurred from 2007-2008 to 2008-2009. This is mainly the result of new authorities related to a Budget 2007 announcement aimed at improving Canada's regulatory framework for major resource projects. However, actual spending for 2008-2009 was less than available authorities, as new funding was approved late in 2007-2008 which also had an impact on 2008-2009 planned longer-term activities, such as staffing and accommodations.

 

1.5 Contribution of Priorities to Strategic Outcome

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

Operational Priorities	Type1	Status	Linkages to Strategic Outcome(s)
Build a Framework for More Integrated Environmental Assessment.	Previously committed to	Mostly met	This priority is most closely linked to the EA Development Program Activity. A framework that facilitates more integrated EA will lead to more effective consideration of environmental effects in federal decision making. To this end, important progress was made through activities in support of the Government's major resource projects initiative, and regulatory initiatives in support of the Economic Action Plan. The Agency continued to work with provinces and territories through the Canadian Council of Ministers of the Environment to explore options for enhanced environmental assessment cooperation. As well, the Agency continued to support initiatives to advance the practice of strategic environmental assessment. The Agency initiated work to prepare for the review of the Act scheduled for 2010, which will provide an opportunity for more fundamental improvements to the legislation.
Play an Active Leadership Role in Federal Environmental Assessment.	Previously committed to	Mostly met	This priority is most closely linked to the EA Support Program Activity. Agency leadership in the field of EA promotes and facilitates consideration of environmental effects in federal decision making. Accordingly, the Agency assumed new responsibilities for managing the EA of major resource projects and integrating Aboriginal consultation into the EA process. The Agency continues to carry out its ongoing responsibilities with respect to roles of the FEAC and administration of the Participant Funding Program (PFP).
Build the Capacity and Organization to Deliver on Existing and New Responsibilities.	Previously committed to	Mostly met	This priority is linked to both the EA Development Program Activity and the EA Support Program Activity. With greater capacity and a restructured organization, the Agency can better administer federal EA as a key tool for ensuring consideration of environmental effects in federal decision making. To achieve this, the Agency has implemented a new organizational structure, and recruited and trained new staff to take on its expanded responsibilities. Challenges associated with a limited pool of qualified environmental assessment practitioners have prevented the Agency from achieving its full staffing level; strategies are in place to staff the remaining positions.

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.

 

1.6 Risk Analysis

Agency Operating Environment and Challenges

Protecting the environment, while continuing to build a strong economy and improving quality of life for Canadians, is an important challenge. Environmental assessment responds to this challenge by ensuring environmental effects are considered before decisions are taken to allow policies, plans, programs or projects to proceed.

Under the Act, responsible authorities (federal departments, agencies, and parent Crown corporations) must undertake an environmental assessment before they carry out a project; provide financial assistance to enable a project to be carried out; sell, lease or otherwise transfer control or administration of land to enable a project to be undertaken; or issue certain authorizations to enable a project to go forward. During the reporting period, nearly 5,500 environmental assessments were initiated under the Act. Since 1995, the year the Act came into effect, approximately 85,000 environmental assessments have been initiated.

Projects subject to environmental assessment under the Act, and policies, plans and programs subject to strategic environmental assessment (SEA) under the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, often raise important issues associated with socio-economic development, environmental protection, Aboriginal concerns and federal-provincial/territorial cooperation. Environmental assessment must continually adapt to emerging trends, such as changing economic and environmental conditions, new technologies, developments in jurisprudence, and evolving public expectations.

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

Shared Responsibility for Environmental Management

Under the Canadian Constitution, environmental management is an area of shared responsibility between the federal and provincial governments. To minimize duplication and delays in the conduct of environmental assessments, the Agency worked with provinces and territories to bring about greater cooperation and promote the consistent and predictable application of environmental assessment across Canada. These objectives were realized through the implementation of bilateral agreements and project-specific arrangements that seek to meet the environmental assessment requirements of both parties through a single environmental assessment.

Competing Interests

Projects subject to environmental assessment often raise sensitive issues related to environmental protection, economic development, community and public expectations, Aboriginal concerns and federal-provincial relations. The projects being assessed are often complex, giving rise to competing interests. In this context, maintaining productive relationships and delivering high-quality assessments that meet the expectations of Canadians in a timely and predictable manner is an ongoing challenge.

Strength of the Canadian Economy—Supporting the Economic Action Plan

The number of environmental assessments required pursuant to the Act is in large part a function of the strength of our economy. The contraction of the Canadian economy that began during the reporting period had an impact on the number of major resource projects subject to review under the Act. In response to the economic downturn, the Government of Canada sought to stimulate the economy through significant funding of public infrastructure projects. To support the Government's Economic Action Plan, a key priority became enabling a more timely approval process for federally-funded public infrastructure projects, focusing on those projects with a potential to cause significant adverse environmental effects.

Major Resource Projects Initiative

The Government of Canada followed through on its commitment to improve the efficiency and effectiveness of the federal regulatory system as it applies to major resource projects. The Agency underwent an important restructuring and capacity-building process in order to deliver on its new responsibilities under the Cabinet Directive on Improving the Performance of the Regulatory System for Major Resource Projects (October 2007) and the associated Memorandum of Understanding. The Agency took on a greater leadership role in the delivery of environmental assessments for most major resource projects, and worked closely with the Major Projects Management Office (MPMO) and other federal departments and agencies to improve the performance of the federal regulatory system for major resource projects.

Aboriginal Consultation

The Supreme Court of Canada has established that the Crown, both federal and provincial, has the duty to consult, and where appropriate accommodate, Aboriginal groups where it contemplates conduct that may adversely impact potential or established Aboriginal or treaty rights. Through the Memorandum of Understanding to the Cabinet Directive on Improving the Performance of the Regulatory System for Major Resource Projects, the Agency assumed responsibility for integrating Aboriginal-Crown consultations into the environmental assessments of major resource projects that it coordinates, as well as for review panel processes.

Improving Federal Policy Development

Governments around the world are beginning to recognize the potential of SEA to support integrated decision making and to advance sustainable decision making. In Canada, the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals sets out the Government's expectations of federal departments and agencies for SEA. The Agency continued to advocate for the application of SEA, deliver training, develop guidance, and provide advice and support to departments and agencies as needed.

International Community

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

 

1.7 Expenditure Profile

Expenditure Profile: Long Description

For the 2008-2009 fiscal year, the Agency spent $28.2M to achieve the expected results of its program activities and contribute to its strategic outcome.

For the 2005-2006 to 2008-2009 periods, total spending includes all Parliamentary appropriation and revenue sources. It also includes carry forward adjustments. For the 2009-2010 to 2011-2012 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 resources projects, the Agency has increased its spending trend. The Agency was also granted funding for review panel support as well as to address the Aboriginal consultations for environmental assessment programs, which are scheduled to sunset by 2009-2010 and 2010-2011 respectively.

 

1.8 Voted and Statutory Items

($000s)

Vote # or Statutory Item (S)	Truncated Vote or Statutory Wording	2006-2007 Actual Spending	2007-2008 Actual Spending	2008-2009 Main Estimates	2008-2009 Actual Spending
15	Program expenditures	16,462	16,548	31,514	25,392
(S)	Contributions to employee benefit plans	1,910	1,729	2,942	2,855
(S)	Refunds of amounts credited to revenues in previous years				1
Total		18,372	18,277	34,456	28,248

The increase in spending for 2008-2009 is mainly a result of the Budget 2007 announcement establishing an initiative to improve Canada's regulatory framework for major resource projects, as well as funding for Aboriginal consultations in environmental assessment processes, review panel support, and evaluation of the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals.

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