Step 3: Impact Assessment

Sustainability

The mandate of the new Act ⁶ would be expanded to require the consideration of sustainability, respect the Government’s commitments with respect to the rights of Indigenous peoples and the application of the precautionary principle in impact assessment. As well, under the proposed new Act, the scope of assessment would be broadened to include environmental, economic, social, health and gender impacts. There would be a requirement to consider both the short-term and lasting positive and negative effects of a project. This would support a focus on sustainability ² where lasting benefits would be favored rather than simple trade-offs related to short-term gains.

Factors to be considered in Impact Assessments

The broadened scope of impact assessments, whether conducted by the Agency or review panel, would take into account the breadth of issues that are of concern to Canadians. A number of factors have been added or restored ²² to the impact assessment process to ensure a sustainability focus. These factors include:

• interactions between the impacts (e.g., environmental changes that may lead to adverse health and social impacts)
• need for the project
• other means of implementing the project including the use of best available technologies to carry out the project (e.g., choosing technologies that have lower greenhouse gas emissions)
• alternatives to the project that are technically and economically feasible and are directly related to the project
• extent to which the project contributes to sustainability
• extent to which the project affects the Government of Canada’s ability to meet its environmental obligations and commitments related to climate change (e.g., Paris Agreement on climate change)
• impact assessments would require consistent use of Gender-Based Analysis Plus (GBA+), looking at matters that are related to gender issues, impact on vulnerable groups, and overall effect of on communities (e.g., the influx of people in a temporary work camp)
• any relevant regional or strategic assessment initiated by the federal government or another jurisdiction

Indigenous Engagement and Partnership

The proposed new Act would also expand the range of potential impacts on Indigenous peoples ²² that are considered in assessments and require that assessments take into account Indigenous rights and culture. It would also be mandatory to consider Indigenous knowledge provided. Indigenous knowledge would be protected from unauthorized release and managed in accordance with Indigenous laws and protocols.

Tools and guidance would be developed collaboratively with Indigenous peoples to better support and systematically consider Indigenous knowledge alongside science and other evidence.

The Agency would be required to establish an Indigenous Advisory Committee ¹⁵⁸ to serve as a new mechanism for ongoing collaboration in the development of policy and guidance to support implementation of the legislation.

Science and Evidence

In order to enhance the rigour of impact assessments, decisions would be guided by science, evidence, community knowledge, and Indigenous knowledge. Science and evidence would be rigorously tested by federal scientists and made available for third party reviews, as needed.

The Agency would establish a Technical Advisory Committee ¹⁵⁷ on science and knowledge to advise the Agency on issues related to impact assessments, including regional and strategic assessments, such as research priorities and technical guidance documents.

Improved transparency measures would ensure that the science used in an impact assessment is open and accessible.

Public Participation

The proposed Impact Assessment Act would ensure that all Canadians can have a say and participate in impact assessments. The requirements for individuals to meet specific criteria to participate in assessments (i.e., the “standing test” or “interested party” requirements) would be removed.

The existing participant funding programs ⁷⁵ would be enhanced to support Indigenous and public participation for impact assessment. This includes expanding eligible activities and creating a more efficient funding process.

The Registry website ¹⁰⁴, which provides convenient public access to information, would be enhanced to enable greater access to information on impact assessment and regulatory processes. The enhanced Registry would also provide interactive approaches to improve the searching, usability and accessibility of information.

The Impact Assessment Act would also require the Minister to establish an advisory council ¹¹⁷ to advise on issues related to the implementation of impact assessments as well as regional and strategic assessments.

Governance

A single federal agency would now be responsible for conducting the impact assessments of designated projects. Previously, there were three government agencies – the Canadian Environmental Assessment Agency, the National Energy Board (NEB) and the Canadian Nuclear Safety Commission (CNSC) – that conducted environmental assessments and made decisions on designated projects.

The Canadian Environmental Assessment Agency would now become the Impact Assessment Agency of Canada ¹⁵⁵ (the Agency). It would be responsible for leading assessments and coordinating consultations with Indigenous peoples throughout the federal impact assessment process for all federally designated projects. This new structure would bring about greater process integrity and ensure consistency in how major projects are assessed and consultations are conducted, and would help to make the process more accessible to all Canadians, by providing a single-window point of contact for all types of assessments.

Agency Led Impact Assessments

The Agency would be responsible for assessing the sufficiency and accuracy of the proponent’s Impact Statement. Federal authorities would participate in this step of the impact assessment by providing expert advice ²³.

The Agency may require the proponent to provide clarification or further information ²⁶ to understand the potential impacts of the project. The Agency reviews the additional information submitted by the proponent for adequacy and accuracy. If any information gaps remain or clarifications are needed, the proponent provides additional information to the Agency. It is anticipated that effective early planning and engagement and effective work by proponents in completing the Impact Statement will reduce the number and complexity of information requests, resulting in a more effective and timely impact assessment process.

For impact assessments led by the Agency, the Agency is responsible for preparing the Impact Assessment Report ²⁵. The draft Impact Assessment Report must be posted on the Agency’s website for public comment.

The Impact Assessment Report ²⁸ must describe the potential positive and negative impacts of the project and the severity of those impacts. The report must also include how the Agency took into account Indigenous knowledge in determining the effects that are likely to be caused by the carrying out of a designated project as well as include a summary of comments received by the public.

Timelines for Impact Assessment by the Agency

The time limit for an impact assessment conducted by the Agency is up to 300 days ²⁸ from the time that the Agency posts a notice that it is satisfied that the proponent has provided all of the information that was requested and ends when the final report is submitted to the Minister and posted on the website.

Prior to the commencement of the impact assessment the Minister may set a longer or shorter time limit than 300 days to cooperate with another jurisdiction or to take into account project specific circumstances. This decision and the reasons would be posted on the website.

Assessments where there is a Life-Cycle Regulator

For impact assessments of designated projects regulated by the proposed new Canadian Energy Regulator or the Canadian Nuclear Safety Commission, the impact assessment would integrate the regulatory review requirements to the greatest extent possible.

If the Agency concludes that an impact assessment is required for a designated project that is regulated under the Nuclear Safety and Control Act or the proposed Canadian Energy Regulator Act, then the Minister must refer the assessment to a review panel ⁴³. The assessment would meet requirements under the Impact Assessment Act and the respective regulatory Act (i.e., the proposed Canadian Energy Regulator Act and Nuclear Safety and Control Act). The Agency would lead in providing support to the review panel, with assistance from life-cycle regulators, using the procedures established under the Impact Assessment Act and its regulations, and ensuring the impact assessment and regulatory expertise required are available to the review panel. Life-cycle regulators would participate in engagement activities for all stages of the impact assessment process.

The integrated review would result in one report with two sections: an impact assessment report and regulator recommendations. The decision as to whether the project’s adverse effects in federal jurisdiction are in the public interest would rest with Cabinet. The life-cycle regulator would continue to be responsible for monitoring project compliance with conditions throughout the project’s life-cycle.

Review Panel Led Impact Assessments

In addition to projects where there is a life-cycle regulator, the Minister may also refer other impact assessments to a review panel ³⁶. When an impact assessment is conducted by a review panel, the review panel is responsible for holding hearings and preparing the Impact Assessment Report ⁵¹. The Review Panel’s Impact Assessment Report must describe the potential impacts of the project, how Indigenous knowledge was taken into account, include a summary of comments received from the public, and the review panel’s recommendations ⁵¹.

Timelines for Impact Assessment by Review Panel

For impact assessments conducted by a review panel, the time limit would be up to 600 days ³⁷ from the day on which the panel members were appointed for the review panel to submit the final report to the Minister.

Before the referral to review panel, the Minister may set a longer or shorter time limit for the assessment to account for project specific circumstances or to cooperate with a jurisdiction.

For integrated panel reviews with lifecycle regulators, the timeline would be 300 days. Under certain circumstances, the Minister could set the review to a maximum of 600 days. The timeline would be determined at the end of the early planning phase on a project-by-project basis, taking into account the complexity of the project, the potential effects, public concerns, and opportunities for cooperation with other jurisdictions.

Delegation

The proposed Impact Assessment Act would allow the Agency to delegate ²⁹ an assessment, in whole or in part, to another jurisdiction. For example, another jurisdiction could take on preparation of part of an assessment report based on the results of both jurisdictions’ analyses. Delegation could also facilitate cooperation with another jurisdiction that lacks the capacity to assess all aspects of a project, but has interest and expertise in specific areas related to the project. Delegation is a tool to improve the efficiency and effectiveness of the assessment process, while maintaining the ability for each jurisdiction to retain their respective decision-making authorities.

Federal Lands

The Impact Assessment Act would include additional measures to provide greater transparency with respect to notification of proposed projects on federal lands and outside Canada as well as decisions related to those projects.

To ensure that non-designated projects on federal lands ⁸² are adequately assessed, new requirements and transparency measures are proposed. New transparency requirements would include the requirement to publish both a notice of a proposed project and a decision on the significance of effects on the Agency website. Additionally, federal lands assessments would include a 30 day public comment period and be required to consider a set of mandatory factors (e.g., adverse impacts on the rights of Indigenous peoples, Indigenous knowledge, community knowledge, comments received from the public, mitigation measures etc.).

In addition, as part of the public consultations on what type of projects would be required to undergo an impact assessment under the proposed Impact Assessment Act, projects on federal lands, including reserve lands, will be examined to ensure that appropriate projects are included for impact assessments.