STATUTORY REVIEW OF THE CANADIAN ENVIRONMENTAL ASSESSMENT ACT: PROTECTING THE ENVIRONMENT, MANAGING OUR RESOURCES Report of the Standing Committee on Environment and Sustainable Development Mark Warawa, M.P. Chair MARCH 2012 41st PARLIAMENT, 1st SESSION Published under the authority of the Speaker of the House of Commons SPEAKER’S PERMISSION Reproduction of the proceedings of the House of Commons and its Committees, in whole or in part and in any medium, is hereby permitted provided that the reproduction is accurate and is not presented as official. This permission does not extend to reproduction, distribution or use for commercial purpose of financial gain. Reproduction or use outside this permission or without authorization may be treated as copyright infringement in accordance with the Copyright Act. Authorization may be obtained on written application to the Office of the Speaker of the House of Commons. 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Additional copies may be obtained from: Publishing and Depository Services Public Works and Government Services Canada Ottawa, Ontario K1A 0S5 Telephone: 613-941-5995 or 1-800-635-7943 Fax: 613-954-5779 or 1-800-565-7757 [email protected] http://publications.gc.ca Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca STATUTORY REVIEW OF THE CANADIAN ENVIRONMENTAL ASSESSMENT ACT: PROTECTING THE ENVIRONMENT, MANAGING OUR RESOURCES Report of the Standing Committee on Environment and Sustainable Development Mark Warawa, M.P. Chair MARCH 2012 41st PARLIAMENT, 1st SESSION STANDING COMMITTEE ON ENVIRONMENT AND SUSTAINABLE DEVELOPMENT CHAIR Mark Warawa VICE-CHAIRS Megan Anissa Leslie Kirsty Duncan MEMBERS Stella Ambler Michelle Rempel François Choquette Robert Sopuck Laurin Liu Lawrence Toet James Lunney Stephen Woodworth François Pilon OTHER MEMBERS OF PARLIAMENT WHO PARTICIPATED Dan Albas Randy Hoback Denis Blanchette Bruce Hyer Hon. Denis Coderre Hon. Lawrence MacAulay Joe Daniel Joyce Murray Bob Dechert Manon Perreault Earl Dreeshen Blake Richards Mylène Freeman Bev Shipley Cheryl Gallant Lise St-Denis Bryan Hayes Rodney Weston iii CLERK OF THE COMMITTEE Marie-France Renaud LIBRARY OF PARLIAMENT Parliamentary Information and Research Service Penny Becklumb, Analyst Tim Williams, Analyst iv THE STANDING COMMITTEE ON ENVIRONMENT AND SUSTAINABLE DEVELOPMENT has the honour to present its FIRST REPORT Pursuant to the Order of Reference of Wednesday, October 19, 2011, the Committee has proceeded to the statutory review of the Canadian Environmental Assessment Act and has agreed to report the following: v TABLE OF CONTENTS INTRODUCTION ............................................................................................................. 1 IMPROVING EFFICIENCY ............................................................................................. 3 A. Improve Timeliness ............................................................................................... 3 1. Single Federal Agency to Address Federal Coordination ................................. 4 2. Remove Unnecessary Steps ............................................................................ 6 3. Legislated Timelines for Federal Environmental Assessments......................... 7 4. Early Triggering of Federal Environmental Assessments ................................. 8 5. Strategic Environmental Assessment to Facilitate Project Assessments ....... 10 B. Decrease Duplication and Target Significant Projects ......................................... 10 1. Coordination with Provincial Regimes ............................................................ 11 2. Target Projects of Environmental Significance ............................................... 13 3. Class Screenings and Use of Previously Conducted Environmental Assessments ............................................................................................. 16 C. Aboriginal Consultation ....................................................................................... 17 1. Fulfilling the Duty Effectively ........................................................................... 18 2. Fulfilling the Duty Efficiently ............................................................................ 19 D. Enhance Public Participation ............................................................................... 20 IMPROVING OUTCOMES: FILLING THE GAPS ......................................................... 21 A. Ensure Early Application of the Act ..................................................................... 21 B. Positive Environmental Aspects of Projects ........................................................ 21 C. Economic Impacts of Projects ............................................................................. 22 D. Learn from Past Assessments to Improve Future Assessments ......................... 22 1. Follow-up Programs ....................................................................................... 22 2. Enforcement ................................................................................................... 24 CONCLUSION .............................................................................................................. 27 LIST OF RECOMMENDATIONS .................................................................................. 29 APPENDIX A: LIST OF WITNESSES ........................................................................... 33 APPENDIX B: LIST OF BRIEFS ................................................................................... 37 REQUEST FOR GOVERNMENT RESPONSE ............................................................. 41 DISSENTING OPINION BY THE NEW DEMOCRATIC PARTY OF CANADA ............. 43 vii DISSENTING OPINION BY THE LIBERAL PARTY OF CANADA ................................ 49 viii INTRODUCTION Canadians have a rich environmental heritage that they are justifiably proud of; there is a broad sentiment toward ensuring that development does not irresponsibly degrade that natural heritage for future generations. This report summarizes the observations of the House of Commons Standing Committee on Environment and Sustainable Development during the statutory seven-year review of the Canadian Environmental Assessment Act (CEAA). While the Committee heard a variety of points of view regarding the provisions and operations of the CEAA, there were a number of areas of convergence. A key area of agreement is that affirmed in the preamble of the CEAA, which states: [...] environmental assessment provides an effective means of integrating environmental factors into planning and decision-making processes in a manner that promotes sustainable development. The key to the Committee’s deliberations was to answer whether these goals of environmental assessment (EA) are being realized by the federal process. While there was a range of views presented, many intervenors expressed a need for significant change. Participants pointed out that much has changed in Canada regarding EA since the CEAA came into force in 1995. In particular, provinces have put into place their own assessment regimes. As EA has evolved in Canada, the CEAA has remained relatively static, resulting in an outdated Act and an inefficient process that does not always improve outcomes. This can, in fact, stand in the way of sustainable development. Significant changes are required to enable the CEAA to meet the promise of EA as outlined in the preamble to the Act. Specifically, the federal EA process should be more efficient, and it should lead to improved environmental outcomes and sustainable development. 1 IMPROVING EFFICIENCY The overwhelming majority of industry stakeholders the Committee heard from, and many other witnesses, raised issues with the inefficiency of the federal EA process. They said the process is slow, duplicative and complicated. The following are the Committee’s observations and recommendations aimed at improving efficiency while ensuring improved environmental outcomes. A. Improve Timeliness Time is of the utmost importance to proponents. As one witness succinctly put it: ... [A]ny time there's a significant delay, you're adding economic risk, which will heighten the cost of capital, and that has an immediate impact, which can be fairly significant, to say the least.1 Clearly time is money, but it may also affect whether or not a project proceeds, the result of a finite investment window for some projects. Proponents need certainty that an EA process will be done in a reasonable and, if possible, defined period of time. The time currently taken for a federal assessment to be organized