Impact Assessment Agency of Canada: Appearance before the Standing Committee – March 27, 2023
Clean growth regulatory review
Q1. How is the Agency/the Impact Assessment Act contributing to the net-zero agenda?
The Government of Canada recognizes the important role that our natural resource and clean energy sectors can play in ensuring the prosperity of our country, while meeting our emissions reduction targets.
These include a reduction in emissions of 40% below 2005 levels by 2030, a net zero electricity grid by 2035, and overall net zero emissions by 2050.
An efficient and robust regulatory system is essential to advancing the projects that will help achieve the net-zero targets. The Impact Assessment Act is an important part of this system.
Canada’s impact assessment process considers the extent to which a designated project contributes to or hinders Canada’s environmental obligations and climate change commitments, and the extent to which a project contributes to sustainability.
More specifically, the Impact Assessment Act requires an estimate of greenhouse gas emissions that is consistent with the Strategic Assessment on Climate Change.
The sustainability assessment provides a holistic understanding of a project’s potential effects that outlines its contributions to the well-being of present and future generations.
For projects subject to the Impact Assessment Act with an expected lifetime beyond 2050, proponents will need to provide a credible plan that describes how the project will achieve net-zero emissions by 2050. The plan will complement and be informed by the GHG mitigation measures planned by the proponent.
If a decision is made that the project can proceed, the proponent must comply with any conditions in the Minister’s decision statement. These may include conditions related to GHG mitigation measures and follow-up program requirements, including requirements to report progress in implementing these GHG mitigation measures and in implementing the plan for reaching net-zero emissions by 2050 for projects with a lifetime beyond 2050.
Q2. Does the IAA hinder the development of clean growth projects?
We anticipate that many clean growth projects will not require a federal impact assessment as they will either be too small in size or represent project classes that do not fall under the Impact Assessment Act.
Instead of hindering new projects, the Impact Assessment Act increases regulatory certainty and clarity through building public confidence, strengthening Indigenous participation and providing greater certainty to investors through predictable legislated timelines and tools such as regional and strategic assessments.
We are continually looking for efficiencies in our processes, including tailoring and appropriately scoping assessments to the most important issues, and working with other jurisdictions to ensure one project, one assessment.
Q3. Will clean growth projects be fast-tracked?
The Government of Canada recognizes the important role that our natural resource and clean energy sectors play in ensuring the prosperity of our country. We also remain committed to meeting our emissions reduction targets.
These include a reduction in emissions of 40% below 2005 levels by 2030, a net zero electricity grid by 2035, and overall net zero emissions by 2050.
An efficient and robust regulatory system is essential to advancing these projects, and the Impact Assessment Act is an important part of this system.
The Act imposes stringent timelines from the start of the assessment to when a decision statement is issued. This provides certainty to proponents and other stakeholders, and thus supports investment and planning decisions.
As we continue to implement the Impact Assessment Act, we are focusing in on how we can improve the efficiency of assessment processes and support Canada’s clean growth transition.
For example, we are using regional and strategic assessments, early planning and engagement, tailored scoping of project requirements, and can integrate permitting requirements into the impact assessment process to save time post-assessment.
Q4. Will energy projects to support Canada’s allies be fast-tracked?
Canada is working with allies to advance common climate change objectives. We have mutual interests in accelerating the global energy transition and safeguarding international energy security.
Canada can be the reliable supplier of the clean energy a net-zero world needs, The Impact Assessment Act will be an important way to ensure this is done effectively and efficiently.
Q5. Will the IAA impede or delay investment in clean growth projects?
The Impact Assessment Act reflects international standards and best practices in that it considers both positive and adverse effects of projects on the environment, health, social and economic conditions, and applies Gender-based Analysis Plus to determine potential disproportionate effects on diverse population groups.
The Act’s robust approach supports holistic decision-making and improved project design that mitigates adverse effects and downstream risks. This can facilitate access to national and international financing.
Canada’s IAA sets out a robust and predictable process with defined phases and strictly managed legislative timelines that keep the process on track and predictable, and support timely decision-making.
Moreover, one of the goals of the IAA is “one project, one assessment”. To avoid duplicating efforts in reviewing proposed projects, the IAA offers the possibility for jurisdictions to collaborate in carrying out assessments.
Impact assessment reference case
Q1. The Alberta Court of Appeal found the Impact Assessment Act unconstitutional. Why is the Impact Assessment Agency of Canada still applying it?
We are confident that the legislation respects jurisdictional authorities under the Constitution.
The Impact Assessment Act (the Act) was designed to reflect the needs and values of Indigenous peoples, the public and investors. It reflects a commitment to transparency, predictability and sustainability. More importantly, it requires decisions to be made in the public interest.
The May 2021 Alberta Court of Appeal opinion was advisory in nature and therefore is non-binding.
The Impact Assessment Act and regulations remain in place, and the Impact Assessment Agency of Canada continues to be committed to working with provinces, Indigenous peoples, and other stakeholders on effective implementation.
The Supreme Court of Canada will hear Canada’s appeal of the Alberta Court’s opinion on March 21 and 22, 2023.
The Supreme Court of Canada’s opinion is anticipated in fall 2023.
Q2. Did the government consult with provinces or others while developing the Impact Assessment Act and regulations?
The Impact Assessment Act came into force on August 28, 2019, and repealed the Canadian Environmental Assessment Act, 2012. The Impact Assessment Act delivered on an important promise we made to Canadians to reform the assessment process.
The Government of Canada worked extensively with legal experts, as well as provincial and territorial governments, Indigenous peoples, stakeholders, and the public to develop the Impact Assessment Act. The Government’s goal was to ensure collaborative environmental assessment practices that respect jurisdictional authorities.
Q3. Why did the government choose to appeal the Alberta Court of Appeal’s decision?
The Impact Assessment Act is designed to protect the components of the environment, and the health, social, and economic conditions that are within federal jurisdiction.
This Impact Assessment Act put in place better rules for major projects that restore trust, protect the environment, advance reconciliation, and ensure good projects can move forward in a timely way so we can grow our economy and create good jobs for Canadians.
The Government of Canada is confident that the Impact Assessment Act and its regulations are constitutional.
Key projects
Q1. What is the status of the Roberts Bank Terminal 2 Project?
The independent Review Panel submitted its Report on the Roberts Bank Terminal 2 Project on March 27, 2020.
On January 23, 2023, the Minister of Environment and Climate Change determined that the information provided by the Proponent to outstanding information requests satisfies the August 2020 Information Request, and the federal timeline for the issuance of a decision statement resumed.
The Minister of Environment and Climate Change must issue a decision statement by April 23, 2023.
Q2. What is the status of the GCT Deltaport Expansion – Berth Four Project?
The Agency is coordinating with British Columbia’s Environmental Assessment Office to align federal and provincial assessment processes to the greatest extent possible, pursuant to the Impact Assessment Cooperation Agreement between Canada and British Columbia.
The draft Terms of Reference and draft cooperation agreement are available for comment by Indigenous groups, the proponent and the public from February 28 to March 30, 2023.
Q3. What is the status of the Tilbury Marine Jetty Project?
On October 7, 2022, British Columbia’s Environmental Assessment Office provided its final Assessment Report of the Tilbury Marine Jetty Project to the Impact Assessment Agency of Canada (the Agency), completing the substituted portion of the environmental assessment process. It also referred the project to provincial Ministers on October 11, 2022, for provincial decision-making.
The Minister of Environment and Climate Change will consider the final Assessment Report, as well as comments received from the public and Indigenous groups, and advice from the Agency in making his decision on whether the Project is likely to result in significant adverse environmental effects.
The Government of Canada is committed to coordinating the timing of its decisions on projects with the Government of British Columbia, to the extent possible.
Q4. What is the status of the Cedar LNG Project?
On November 16, 2022, British Columbia’s Environmental Assessment Office provided its final Assessment Report of the Cedar LNG Project to decision-makers.
The Minister of Environment and Climate Change will consider the final Assessment Report, as well as comments received from the public and Indigenous groups, and advice from the Agency in making his decision on whether the Project is in the public interest.
The Government of Canada is committed to coordinating the timing of its decisions on projects with the Government of British Columbia, to the extent possible.
Q5. What is the status of the Woodfibre LNG?
The former Minister of Environment and Climate Change issued a Decision Statement under the Canadian Environmental Assessment Act, 2012 for this Project on March 18, 2016. The Decision Statement contains legally-binding conditions that the proponent must comply with for the life of the Project.
On June 7, 2022, the proponent requested an amendment to certain conditions to address feasibility issues related to marine mammals and water quality.
In response to this request, the Agency has proposed to separate requirements for seals and sea lions from other marine mammals and to clarify the requirements relating to water quality. A public comment period was held between November 17, 2022, and January 30, 2023, on the proposed changes to the conditions.
The Agency will analyse the comments received and will finalize its recommendation for potential amendments to the decision statement to the Minister of Environment and Climate Change. There are no legislated timelines associated with decision statements amendments.
Q6. What is the status of the regional assessment in the Ring of Fire Area?
The Agency, First Nations and Ontario are working together as partners to plan the path forward for a co-led Regional Assessment.
Q7. What is the status of the regional assessment of Offshore Wind Development in Newfoundland and Labrador and Nova Scotia?
On April 5, 2022, the Minister of Environment and Climate Change Canada announced that a Regional Assessment of Offshore Wind Development in Newfoundland and Labrador (NL) and Nova Scotia (NS) would be carried out under the IAA.
The Regional Assessments of offshore wind development activities in NL and in NS will inform and contribute to the forthcoming planning and licensing processes for offshore wind developments in these areas, as well as the effectiveness and efficiency of future project-specific federal impact assessments and decisions under the Impact Assessment Act.
The Agency, Natural Resources Canada, the Governments of NL and NS, and the Canada-NS and Canada-NL Offshore Petroleum Boards have worked together to consider the comments received during the fall 2022 comment period and through the extensive Indigenous and public engagement program, and to revise the Terms of Reference and Agreements accordingly.
The current proposed schedule for both Regional Assessments would see the Agreements and Terms of Reference finalized and both Committees appointed and announced in March 2023. The Regional Assessments would then be conducted over an 18-month period.
Q8. Which projects have been subject to designation requests under the Impact Assessment Act?
The Physical Activities Regulations, also referred to as the “Project List”, identify the types of projects that must enter the impact assessment process and captures major projects with the greatest potential for adverse effects in areas of federal jurisdiction.
If a project not identified in the regulations has the potential to cause adverse environmental effects in areas of federal jurisdiction, the Minister of Environment and Climate Change has the authority to designate it to enter the impact assessment process.
Under the Impact Assessment Act, the Minister of Environment and Climate Change must respond within 90 days, with reasons, to a request for designation.
Since the coming into force of the Impact Assessment Act in August 2019, there have been 52 ministerial responses to designation requests, and five projects were designated, namely the Fording River Extension, Highway 413, Tent Mountain Coal Mine Expansion, Coalspur Vista Coal Underground Mine, and Vista Coal Mine Phase II Expansion projects.
Under a similar provision of the Canadian Environmental Assessment Act, 2012, 33 responses to designation request were provided, and four projects were designated, namely the Victor Diamond Mine Extension, Laurentia, Sundog Renewable Generating Station, and Pelican Renewable Generating Station projects.
Designation Requests Currently Under Review by the Agency
The Impact Assessment Agency of Canada is currently reviewing requests to designate the Clearwater Peat Harvesting Project in Alberta and the Baldwin East Aerodrome Project in Ontario to inform the Minister of Environment and Climate Change’s response to the requests. The Minister must respond to these requests by March 30 and May 9, respectively.
In May and June 2021, the Minister of Environment and Climate Change received requests to designate the Highway Tunnel Project between Quebec and Lévis under the Impact Assessment Act. The Impact Assessment Agency of Canada deemed the requests incomplete as it requires additional information to assess the potential effects of the project and on the other legal mechanisms that could be used to address them. The Ministère des Transports du Québec is expected to produce a project description, which will trigger the provincial assessment process and provide the information needed in order for the requestors to finalize and submit their designation requests. Within 90 days following receipt of a complete request, the Minister of Environment and Climate Change will issue a response with reasons as to whether the project warrants designation and, if applicable, issue an order designating the project.
