Appearance before the Standing Committee on Environment and Sustainable Development (November 2020): Supplementary Binder for the President

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• Participant Funding Program
• One-Liners and Quick Reference Sheet for the President
• Additional questions and answers regarding projects in Quebec

Participant Funding Program

The Participant Funding Program (PFP) is used to encourage effective and efficient public and Indigenous peoples participation, which includes timely support of participation, ensuring that diverse public and Indigenous peoples’ advice, concerns and values related to impacts are taken into consideration before, during and after project IAs or in regional and strategic assessments. This leads to better-informed decision-making through the active participation of the public and Indigenous groups with knowledge or expertise relevant to project impact assessments.

There are a range of eligible expenses for which funding is available. For example, groups can use funding to pay for Geographic Information Systems (GIS) expertise to map their territory or to hire biologists and other scientific experts to help them understand potential impacts of projects and in turn to provide critically important advice to the Agency about how those impacts could be reduced. Groups can also use funding to pay the salary of staff who themselves become knowledgeable about federal EA/IA, thereby helping the community as a whole have its needs met.

Some examples of activities funded include:

• The PFP provided additional funding this year of $1.6M to recipients for the Lake Manitoba and Lake St. Martin Outlet Channels Project to facilitate the continued participation of these groups in light of the extra costs and efforts required due to the COVID-19 context and the expedited environmental assessment process.
• So far, approximately $1.5M in funding has also provided to recipients to ensure a timely distribution of funding through the Agency’s participant funding during the planning phase for the following projects: Gazoduq, Deltaport Expansion, Fourth Berth Project, Suncor Base Mine Extension, Webequie and Marten Falls Road Projects, Wasamac Gold Mine, and Value Chain Solutions. This funding is to enable meaningful participation in the initial Project Description, draft Tailored Impact Statement Guidelines, information on potential issues, and questions about the Impact Assessment process.

Policy Dialogue Program

• The Policy Dialogue Program provided funding to Indigenous groups to provide input and collaborate on Indigenous policy topics related to IA. The Matawa First Nations Management was provided $34K to create a Cultural Impact Assessment report for their communities. This report lays out a collaborative, First Nation-Led Process for Resource Development and Environmental Protection and will inform the on-going development of new Agency guidance and practices in relation to cultural impacts.

Indigenous Capacity Support Program

• Indigenous Capacity Support Program provided $147K to the First Nations Major Projects Coalition (FNMPC) for the 2019-2020 fiscal year. These funds supported the creation of a technical guide together with a complementary 8-part videos series designed to enhance the capacity of Indigenous Nations to effectively engage in the new federal impact assessment (IA) process (see news release). These tools are intended to support Indigenous Nations’ active involvement as key players, rather than mere participants, in the new IA process. These first of their kind resources are available to all Indigenous communities across Canada.

Proactive Disclosures of Grants and Contributions Funding

Information on funding allocated to recipients and amounts of the grants and contributions is available to the public on the Government of Canada Proactive Disclosures website (https://search.open.canada.ca/en/gc/?sort=score). We also post funding allocations for all funding programs on the Registry (for PFP) and canada.ca for other funding programs.

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One-Liners and Quick Reference Sheet for the President

Main Estimates

1. The Agency’s 2020–2021 Main Estimates are $76.5 million. Could you elaborate on the composition of these Main Estimates?

• Yes, $51.7 million of the Agency’s authorities will be devoted to the conduct of assessments, with an additional $19 million allotted to Grants and Contributions to support public and Indigenous participation in assessments. The remainder (approx. $5.8 million) is from a statutory vote for the employee benefit program.

2. Why has the Agency’s authorities increased from 2019–2020?

• There has been a net increase over 2019-2020 levels of $2.3 million primarily due to an increase in grants and contributions ($4.4 million), and small reductions in both operating budget ($1.8 million) and the employee benefit program ($0.3 million).

3. Why does the new process of Impact Assessment require substantially more funds than the previous system?

• Put simply, a more comprehensive impact assessment process and the expansion of the Agency’s mandate and responsibilities as the single federal organization responsible for impact assessments and the Crown coordinator for consultations with Indigenous Peoples on designated projects and regional or strategic assessments.

4. What is the Agency funding through its $18.9 million grants and contribution program?

• The Agency’s Grants and Contributions program provides funding support to improve scientific information and Indigenous knowledge, enhance public participation, contribute to Indigenous reconciliation and build Indigenous capacity, and promote transparency, efficiency and timeliness.

Impact Assessment Act Implementation and Key Projects

5. What are the benefits of the IAA?

• Canada’s impact assessment system is designed to protect the environment, ensure sustainable projects can move forward safely, and instill public confidence in how the Government of Canada makes decisions about major projects while also fostering reconciliation with Canada’s Indigenous peoples, encouraging investment, and creating new jobs and economic opportunities for Canadians.

6. Have legislated timelines been met?

• Legislated time limits in relation to all projects subject to IAA have been met.

7. How many projects have entered the new system?

• IAAC has accepted eleven (11) initial project descriptions since the IAA came into force in August 2019.
• This is on track with the historical rate of submissions under the previous CEAA2012 regime, and speaks to the confidence that many industry stakeholders have in the new assessment system.

8. What is the status of projects that have entered the new system?

• Six (6) projects are in the Planning Phase, and five (5) projects have completed the Planning Phase.
  • Two (2) will be impact assessments by Agency (Webequie and Marten Falls Roads Projects);
  • One (1) was referred to an Integrated Review Panel (Gazoduq);
  • One (1) will be a substituted IA by British Columbia (Cedar LNG); and
  • One (1) for which no impact assessment was required (Prairie Lights Power).

9. How many assessments are continuing under the former Act (CEAA 2012)?

• There are currently more than fifty (50) projects under CEAA 2012 (forty-nine [49] EAs by agency, eight [8] substituted).

10. How are climate commitments (e.g. Paris Accord, Net Zero 2050) dealt with in the federal review process?

• The Impact Assessment Act requires the consideration of the extent to which a project hinders or contributes to Canada’s ability to meet its climate change commitments; while the Strategic Assessment on Climate Change lays out the specific information proponents are expected to provide, including a credible plan to reach net-zero by 2050.

11. How has the COVID-19 pandemic impacted project assessments?

• The Impact Assessment Agency of Canada (IAAC) has continued to advance impact and environmental assessments throughout the COVID-19 pandemic, but is taking into account that there may be potential consultation challenges for Indigenous groups and the public because of the pandemic.
• The Minister of Environment and Climate Change extended the timeline for the issuance of decision statements on three projects by ninety (90) days (Roberts Bank Terminal 2, Milton Logistics Hub, and Laurentia Deep-Water Wharf), as well as extended the timeline for the submission of the panel report for the Grassy Mountain Coal Project.

12. What is the status of the Roberts Bank Terminal 2 project assessment?

• In August an information request was issued to the Vancouver Fraser Port Authority for additional information on proposed mitigation measures related to the potential project and effects on fish and fish habitat, killer whales, and migratory birds.
• Once this information is received from the Port, the Government will have approximately three (3) months remaining on our legislated timeline to make a final decision on the Project.

13. What is the status of the Milton Logistics Hub project assessment?

• On Sept 21, 2020, the Government of Canada announced an extension of up to ninety (90) days to make a final decision on the Project. A final decision will be taken no later than December 22, 2020.

14. What is the status of the Laurentia project assessment?

• The Agency is currently finalizing its assessment report and draft conditions, which will be submitted for public comment in mid-November.

15. What is the status of the Contrecoeur project assessment?

• The Agency is currently finalizing its assessment report and draft conditions, which will be submitted for public comment in mid-November.

16. What is the status of the Énergie Saguenay project assessment?

• Once all the information required for the assessment is received, the Agency will complete its assessment report and draft conditions and will submit them for public comment.

17. What is the status of the Gazoduq natural gas pipeline project assessment?

• IAAC is working with Natural Resources Canada, the CER, the Canadian Nuclear Safety Commission (CNSC), and the Privy Council Office on the cross-appointment process for integrated assessments with lifecycle regulators, and establishing a roster of eligible candidates for cross-appointment by the Governor in Council (GIC) to the CER or CNSC.

Project Designations (including Vista Coal Underground Mine Project, Vista Coal Mine Phase II Expansion Project, and Castle Project)

18. How many projects has the Minister designated under the Impact Assessment Act?

• Since Coming into Force, the Minister has received twenty (20) designation requests and has designated two (2) projects to be assessed under the Impact Assessment Act (Coalspur Vista Mine and Castle Mountain Coal Mine). There is one request currently under consideration (Vivian Sand Facility and Extractions Projects).

Consultations

19. How have Indigenous and public consultations been impacted by the Pandemic?

• Meaningful engagement with Indigenous partners and with the public continues even where face-to-face meetings are not possible during the COVID-19 pandemic.

Newfoundland Offshore Regulations

20. What is the status of the judicial review by environmental organizations challenging the Regional Assessment and associated Ministerial Regulation, and how will it affect future exploratory drilling projects in the eastern portion of the Canada-Newfoundland Offshore Area?

• A judicial review of the Regional Assessment and the Regulation was initiated in May 2020. The overall schedule for the remaining stages of this judicial review and the timing of an associated decision are currently being determined by the court.

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Additional Questions and Answers

For President and Vice-Presidents. Not provided to the Minister.

1. What is the status of the Laurentia project assessment?

Answer

• The Quebec Port Authority is proposing to extend the line of the existing wharf eastward by 610 metres in order to operate a deep-water terminal dedicated to containerized general cargo. The value of the project is approximately $775 million.
• On September 4, 2020, the Agency confirmed to the proponent that it had received all the necessary information to carry out the impact assessment.
• The Agency is currently completing its draft assessment report and potential conditions, which will be submitted to the public for comment around mid-November.
• Based on the comments received, the Agency will prepare the final assessment report, which will be submitted to the Minister during the winter for decision.
• If the Minister decides that the project could cause significant adverse effects, the decision on its authorization will be referred to the Governor in Council.

2. What is the status of the Contrecoeur project assessment?

Answer

• The Montréal Port Authority is proposing the expansion of a container port terminal with a maximum annual capacity of 1.15 million containers on its property in Contrecoeur, located about 40 kilometres downstream from Montréal. The value of the project is estimated between $750 million and $950 million.
• On August 31, 2020, the Agency confirmed to the proponent that it had received all the necessary information to carry out the impact assessment.
• The Agency is currently completing its draft assessment report and potential conditions, which will be submitted to the public for comment around mid-November.
• Based on the comments received, the Agency will prepare the final assessment report, which will be submitted to the Minister during the winter for decision.
• If the Minister decides that the project could cause significant adverse effects, the decision on its authorization will be referred to the Governor in Council.

3. What is the status of the Énergie Saguenay project assessment?

Answer

• GNL Québec Inc. proposes the construction and operation of a liquefied natural gas (LNG) liquefaction and export terminal located in La Baie borough of Ville de Saguenay, Quebec. The site of the project is located near the Grande-Anse marine terminal (Port of Saguenay). The value of the project is estimated at approximately $775 million.
• On August 28, 2020, the Agency sent the proponent a second request for information.
• Once it has received all of the information necessary for its assessment, the Agency will complete the drafting of its assessment report and the potential conditions, and then will submit them to the public for comment.
• Based on the comments received, the Agency will prepare the final assessment report, which will be submitted to the Minister for decision.
• The Énergie Saguenay project undergoes a separate provincial assessment, but the teams in charge of the federal and provincial processes share information on a regular basis to facilitate the progress of the assessments.

4. What is the status of the Gazoduq natural gas pipeline project assessment?

Answer

• Gazoduq Inc. is proposing the construction and operation of a natural gas pipeline approximately 780 kilometers long between northeastern Ontario and Saguenay, Quebec (the Project). Estimated cost of the project is approximately $4.5B.
• The Project is being assessed under the Impact Assessment Act (IAA). Since the Project includes components that are regulated under the Canadian Energy Regulator Act, the impact assessment was referred to a review panel. The Project will be the first integrated assessment by a review panel with the Canada Energy Regulator (CER) under the IAA. Canada has also entered into an Agreement with Quebec to establish distinct, yet cooperative, processes for provincial and federal reviews of the Project to create an efficient, single-window process for the proponent, Indigenous groups and members of the public.
• IAAC is working with Natural Resources Canada, the CER, the Canadian Nuclear Safety Commission (CNSC), and the Privy Council Office on the cross-appointment process for integrated assessments with lifecycle regulators, and establishing a roster of eligible candidates for cross-appointment by the Governor in Council (GIC) to the CER or CNSC.
• Following the completion of the selection process, two individuals will be identified who are suitable to serve as members of the Integrated Review Panel for the Gazoduq Project. The third member will be selected from the CER Roster. The formal appointment of the members would not happen until after GIC process is completed.