Waste, and Environmental Stewardship: Appearance before the Standing Committee – March 27, 2023
Environmental Damages Fund
Q1. What is the Environmental Damages Fund?
The Environmental Damages Fund (EDF) is a specified purpose account administered by Environment and Climate Change Canada (ECCC) to direct funds received from fines, court orders and voluntary payments to priority projects that will benefit Canada’s natural environment.
The purpose of any contribution to the EDF is to restore the environment and conserve wildlife and habitats in a scientifically sound, cost-effective and technically feasible way.
Monies paid to the EDF are invested in projects that focus on four priorities: environmental restoration, environmental quality improvement, research and development, and education and awareness.
14 Acts automatically direct fines to the EDF, including the Canadian Environmental Protection Act, 1999 (CEPA), Migratory Bird Convention Act (MBCA), Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act (WAPPRIITA), Canada Wildlife Act (CWA), and the Fisheries Act (FA); 5 federal statutes include discretionary clauses directing fines/penalties to the EDF (e.g. Canadian Energy Regulator Act).
Q2. Who is eligible to apply for funding from the Environmental Damages Fund?
Eligible applicants are not-for profit organizations which includes:
Non-governmental organizations (i.e. environmental community groups)
Universities and academic institutions
Indigenous organizations; and,
Provincial, territorial and municipal governments
Q3. How much funding was made available under the Climate Action and Awareness Fund?
In September 2020, ECCC announced the Climate Action and Awareness Fund (CAAF), its funding parameters, and that the Fund would invest up to $206 million over five years to support projects that contribute to net-zero GHG emissions by 2050. The Government of Canada’s Environmental Damages Fund is the main source of funding for the Climate Action and Awareness Fund, which was created from the historic $196.5 million fine paid by Volkswagen for circumventing Canada’s environmental protection rules.
The Climate Action and Awareness Fund will invest a total of $206 million in projects under four tranches: to build youth awareness, engagement and action; support community-based climate action; advance climate science and technology; and support academia and think tank organizations.
Q4. How much funding has been allocated to projects under the four tranches of the Climate Action and Awareness Fund?
In fall 2020 and spring 2022, under the tranche to support community-based climate action, $58 million was allocated to 67 projects that will support and encourage climate action at the community scale across Canada.
In spring 2021, under the tranche to support youth climate awareness and engagement, $37.8 million was allocated to ten (10) projects that will inform and engage youth in science-based activities and learning opportunities to foster a connection with their natural environment and encourage real action to fight climate change.
In winter 2022, under the tranche to advance science and technology to fight climate change, $58 million was allocated to 24 projects that will strengthen Canada’s science knowledge and be used to identify, accelerate, and evaluate actions leading to net-zero greenhouse gas emissions.
In spring 2022, under the tranche to support climate research at Canadian think tanks and academic institutions, $9.9 million to 16 projects that support climate research and analysis for achieving net-zero greenhouse gas emissions.
Q5. How much money was allocated in 2022 to projects that would benefit Canada’s natural environment?
In 2022-2023, the Environmental Damages Fund allocated over $3.9 million toward 19 projects across Canada that will support restoration of damage to the natural environment and wildlife conservation.
Q6. What kind of projects does the EDF fund?
The EDF funds a variety of projects under its four key priorities of restoration, environmental quality improvement, research and development, and education and awareness. Examples of potential projects include:
Re-establishing potential spawning and rearing habitat for Brook Trout and Atlantic Salmon.
Stabilizing stream banks and plant trees along a river’s edge to restore disturbed habitat.
Improving riparian zones to restore streams that were compromised by terrestrial activities.
Restoring streams for overall water quality improvement and better habitat for aquatic species improving wildlife habitat.
Reducing the quantity of toxins entering waterways.
Investigating the impacts of offshore oil and gas activities on seabirds.
Gathering baseline data on a marine species for the purpose of damage assessment in the event of habitat contamination.
Constructing and installing an artificial reef to study how artificial aquatic habitat can be colonized following habitat disturbances.
Training local groups and volunteers in restoration activities to protect the environment.
Raising public awareness of environmental regulations to improve compliance.
Available funding varies according to the number of court awards and voluntary contributions directed to the EDF. In its sentencing decision, the court may recommend the recipient, location, and scope of a project to be funded by the fine. This information is considered in the assessment of the fine and in the development of the Fund Use Requirement.
Q9. What are some examples of fines paid to the EDF?
The EDF receives a variety of fines under different environmental Acts. Examples of incidents that resulted in fines being directed to the EDF include:
Fisheries Act:
Depositing or permitting the deposit of a deleterious substance in water frequented by fish, or in any place where the substance may enter any such water.
Example: On June 16, 2022, Nova Scotia Power Incorporated was sentenced in the Provincial Court of Nova Scotia and ordered to pay $175,000 after pleading guilty to one charge under the Fisheries Act. The charge relates to an oil spill into Tufts Cove (a part of the Halifax Harbour) that occurred on August 2, 2018. The fine will be directed to the Government of Canada’s Environmental Damages Fund.
Canadian Environmental Protection Act, 1999:
Violating PCB Regulations.
Example: On October 21, 2022, 9187‑3125 Québec Inc. (operating as Action-Éco Environnement) was fined $15,000 by the Court of Québec at the Shawinigan courthouse after pleading guilty to one count of violating the PCB Regulations. The fine will be directed to the Environmental Damages Fund. The court also prohibited the company from performing any act or activity involving chlorobiphenyls (PCBs) or products containing them for the next five years.
Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act:
Importing a Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) protected species without a permit.
Example: On December 23, 2022, Ocean Seafood Company met the conditions of an alternative measures agreement, which was reached after the company was charged with an offence under the Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act (WAPPRIITA). As part of the agreement, the company has made a contribution of $30,000 to the Government of Canada’s Environmental Damages Fund.
Migratory Bird Convention Act, 1994:
Illegal hunting or possession of migratory birds.
Example: On September 29, 2021, two hunters from Rencontre East, Newfoundland and Labrador, were each sentenced to pay $5,000 after pleading guilty to one charge each under the Migratory Birds Convention Act, 1994 in the Grand Falls-Windsor Provincial Court, Newfoundland and Labrador. The total fines will be directed to the Government of Canada’s Environmental Damages Fund.
Q10. What are some examples of projects that have been funded and recently closed that have resulted in positive environmental outcomes?
Under the EDF project priority for restoration, the project entitled “Invasive alien plant (IAP) control and restoration of the Provancher Society’s exceptional territories” led by Société Provancher, received $35,000 to restore and protect habitats on the sites managed by Société Provancher through the control of invasive species, especially common reeds and Japanese knotweed. The project funding originated from penalties imposed under the Canadian Environmental Protection Act, 1999. The project outcomes include 157 hectares preserved and monitored for invasive alien plants, 35 hectares restored, three plans and reports were developed and disseminated to provide recommendations for the control of invasive alien plants, and 95 people were educated and trained on invasive and alien species detection. The two-year project closed in 2021.
Under the priorities of restoration and environmental quality improvement, the project entitled “Bull Kelp Monitoring and Enhancement Plot Project”, led by Mount Arrowsmith Biosphere Region Research Institute, received $73,570 awarded under the Fisheries Act for the restoration and conservation of fish and fish habitat, following a private companies’ release of harmful substances into coastal waters. The project established a series of bull kelp restoration and enhancement plots along the Salish Sea, which had lost much of its native bull kelp forests. And created aquatic habitat and improved biodiversity and water quality, and contributed to scientific research on planting techniques, bull kelp growth, and their function in the aquatic ecosystem. The year long project closed in 2019.
Under the priorities of restoration and research and development, the project entitled “Restoration of Peatland Ecosystems Impacted by Linear Disturbances within Subwatersheds of the North Saskatchewan River Watershed, Alberta, Canada”, led by University of Waterloo, received $200,000 under the Canadian Environmental Protections Act following a hydrochloric acid spill in the North Saskatchewan River Watershed to projects that aimed to conserve, restore and protect the impacted environment. This research project piloted peatland restoration and management by testing and developing novel restoration techniques. Also, the project resulted in restored and biodiverse peatlands at the test site, and a series of studies and techniques that have advanced Canada’s ability to preserve and protect peatlands, which sequester carbon and water. The three-year project closed in 2021.
Contaminated sites
Q1. What is the Federal Contaminated Sites Action Plan (FCSA)?
The Federal Contaminated Sites Action Plan (FCSAP) is the Government’s core program for managing federal contaminated sites. It was established in 2005.
The program was renewed from 2020-2035 and provided $1.16B in funding from 2020-21 to 2024-25.
This program reduces risks to Canadians and the environment. It also supports other government priorities such as skills development, training and employment of Canadians, including in Indigenous communities and in northern and rural areas.
19 federal departments, agencies and Crown corporations receive funding under the Federal Contaminated Sites Action Plan.
Q2. How is the Government addressing contaminated sites affecting Indigenous Peoples?
Through the Federal Contaminated Sites Action Plan (FCSAP) the government is addressing federal contaminated sites affecting Indigenous peoples, including sites on reserve lands and in the North.
When the Government renewed the FCSAP in 2019 it expanded program parameters to accelerate the clean-up of federal sites located on Indigenous reserves and in the North.
The renewed program supports reconciliation by:
Reducing on-reserve contamination and associated liability
Increasing engagement and participation of Indigenous peoples regionally and locally in prioritizing and planning remediation projects
Providing greater opportunities for Indigenous workers and businesses in service-delivery contracts with the federal government.
The Prime Minister’s Mandate Letter to ECCC is challenging the government to do even more to identify and prioritize the clean-up of contaminated sites in areas where Indigenous, racialized and low-income Canadians live. Options are being explored to determine how best to address contaminated sites affecting these groups of Canadians.
Q3. What is the role of Environment and Climate Change Canada with respect to contaminated sites?
ECCC has 3 roles; it:
provides government-wide leadership and guidance for federal contaminated sites and, along with Treasury Board Secretariat, serves as the Secretariat for the horizontal Federal Contaminated Sites Action Plan;
provides expert technical support and advice to federal custodians; and
assesses and remediates contaminated sites under its responsibility.
Q4. How are contaminated sites managed in the North?
The Federal Contaminated Sites Action Plan provides funding to federal organizations that have contaminated sites in the North.
Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC) provides overall leadership for contaminated sites in the North.
CIRNAC’s Northern Abandoned Mine Reclamation Program, approved in 2019, addresses the 8 largest and highest-risk abandoned mines in the Yukon and the Northwest Territories, which include the Faro and Giant Mines.
Q5. What role does Environment and Climate Change Canada play in the restoration of the G&R Recycling site?
The Federal Government is working closely with Kanesatake to find a path forward to remediate the site.
Indigenous Services Canada is leading these efforts, with support from Environment and Climate Change Canada.
Elk Valley
Q1. What is the government doing to address pollution from coal mines in the Elk Valley?
The Government of Canada is committed to preventing and managing pollution from industrial sectors.
On March 26, 2021, following an investigation by Environment and Climate Change Canada, Teck Coal Limited was ordered to pay a total of $60 million in fines and monetary court orders after a guilty plea was entered on two counts of unlawfully depositing a deleterious substance into waters frequented by fish, contrary to S.36 (3) of the Fisheries Act. Two million dollars of the fine was paid to the Receiver General, and $58 million was directed to the Environmental Damages Fund, which will be used for priority projects that benefit fish and fish habitat in the Elk Valley and Kootenay Region. In addition to the penalty, the company must also comply with a Fisheries Act Direction, which requires the development of various measures to prevent further pollution. This sentence is the highest ever imposed by a court for pollution in violation of the Fisheries Act.
The Government of Canada is developing the Coal Mining Effluent Regulations (CMER) under the Fisheries Act. In January 2022, ECCC published a discussion document on a proposed approach for the CMER to solicit feedback. ECCC is currently reviewing feedback and holding engagement sessions with Indigenous communities and other interested parties.
The CMER will manage threats to fish and fish habitat from coal mining effluent by setting national effluent quality standards.
Q2. What is the relationship between the possible regulations and the Ktunaxa Nation Council’s request for an International Joint Commission reference?
The Government of Canada is dedicated to ensuring Canada’s freshwaters including boundary and transboundary waters, are treated as precious resources that deserve protection and careful stewardship.
We know that concerns have been raised by the Ktunaxa Nation, on both sides of the Canada-U.S. border, and by U.S. federal and state officials regarding transboundary water pollution from coal mines in the Elk Valley. Along with interest in the proposed regulations, these parties have also requested a joint Canada-U.S. reference to the International Joint Commission (IJC).
The Government of Canada has committed to working with the Ktunaxa Nation and BC to explore all options to best address these issues, and will continue to engage with the U.S. government.
ECCC is developing Coal Mining Effluent Regulations (CMER) under the federal Fisheries Act. The Regulations would manage threats posed by harmful substances from coal mining effluent in order to protect the aquatic environment.
Once finalized, the proposed CMER would limit the release of deleterious substances from coal mines in Canada, including in the Elk Valley, and require data collection. Concerns leading to calls for an IJC reference are broader in scope than what CMER proposes to address, and officials are in discussions with partners regarding those concerns.
ECCC is engaging with the Ktunaxa Nation Council (KNC) on key provisions of the regulatory proposal for the Elk Valley, and will continue collaborative work to address water quality issues in the region.
Horne Smelter
Q1. What is the government doing to address pollution from the Horne Smelter?
Environment and Climate Change Canada is assessing the situation and remains confident that the Horne Smelter and the Government of Quebec, in collaboration with the citizens of the City and the region of Rouyn-Noranda, will find an adequate solution to respond to the current worrying situation.
Part of the Foundry’s inputs depend on import permits issued under the federal Cross-border Movement of Hazardous Waste and Hazardous Recyclable Material Regulations. The department must be of the opinion that the materials will be managed in a manner that will protect the environment and human health before issuing a permit.
In the event that no adequate solution is identified, the Department will determine whether additional federal measures should be taken.
Q2. What is the Government doing in response to elevated levels of arsenic in Rouyn-Noranda?
Addressing air pollution is a shared responsibility between federal, provincial and territorial governments.
The province of Quebec is currently reviewing the emissions certificate for the Horne Smelter in Rouyn-Noranda. As part of this process, the regional health authority requested Health Canada advice, which was provided in early November 2022 and concluded that past and present ambient concentrations of arsenic and cadmium pose an unacceptable risk of lung cancer and could also have non-cancer health effects. This is consistent with analysis by Quebec’s provincial public health experts.
Health Canada and Environment and Climate Change Canada will continue to support the province of Quebec and regional health authorities with respect to this issue. The federal government is also taking action, including environmental performance agreements with the base metals smelting and refining sector and an assessment of the overall impact of arsenic from all industrial sectors on the environment and human health. The need for additional measures is being assessed.
Potential oil sands mining effluent regulations
Q1. Why is the government developing regulations to allow oil sands mines to release effluent to the Athabasca River?
Oil sands mines generate process water and tailings that are stored in tailings ponds. These tailings ponds are continually growing, increasing risks of seepage, structural failure, impacts to wildlife, and challenges for reclamation.
The Government of Canada is exploring options to manage the accumulation of oil sands process-affected water from oil sands operations in the existing tailings ponds. One of the options under consideration is the development of regulations to allow releases of treated effluent to the Athabasca River and its tributaries.
If regulations were to be developed, they would impose strict protective standards based on the best available scientific information and Indigenous knowledge.
ECCC is also exploring alternatives to the release of treated effluent to ensure that all options are considered before a decision is made on the path forward.
Q2. Are Indigenous communities being consulted on the regulations?
Environment and Climate Change Canada has launched a Crown-Indigenous Working Group with nine First Nations and Métis communities in the oil sands region.
Through this group, Environment and Climate Change Canada and Indigenous communities are working together to assess alternatives to effluent release and, if regulations are needed, to ensure the potential Oil Sands Mining Effluent Regulations are protective of the environment and minimize potential impacts to Indigenous rights.
Environment and Climate Change Canada is also engaging with Indigenous groups bilaterally to discuss potential impacts to Treaty and Aboriginal rights.
