City of Delta COUNCIL REPORT Regular Meeting F.10 To: Mayor and Council From: Corporate Services Department Date: July 15, 2020 Roberts Bank Terminal 2 Project Federal Review Panel Report The following report has been reviewed and endorsed by the City Manager. ■ RECOMMENDATIONS: A. THAT a letter be sent to The Right Honourable Justin Trudeau, Prime Minister of Canada, and The Honourable Jonathan Wilkinson, Minister of Environment & Climate Change Canada, requesting that the Roberts Bank Terminal 2 (RBT2) project not be approved, based on the Federal Review Panel Report which: i. concludes that the project would "result in numerous adverse residual and cumulative effects" on the Roberts Bank ecosystem, on Southern Resident Killer Whales, on fish and aquatic species, on birds, on human health, on First Nations cultural heritage and use of lands and resources, and on agricultural land in Delta, and many of those effects are deemed to be significant; ii. concludes that many of the mitigation measures proposed by the Vancouver Fraser Port Authority (VFPA) wouid not be as effective as predicted; iii. makes recommendations that are focused on further studies, monitoring, reporting, offsetting and other measures most of which do not directly prevent or mitigate the adverse effects of the project; iv. does not address the proposed Deltaport Fourth Berth as a potential alternative to RBT2; and v. does not address Environment and Climate Change Canada's concerns that some adverse effects will be "immediate, continuous, and cannot be mitigated" and that impacts on biofilm could have species-wide impacts on migratory birds. B. THAT the federal and provincial governments be urged to use this opportunity to demonstrate leadership on climate change and biodiversity by: i. undertaking regional environmental assessments for the Fraser River estuary and Salish Sea; and ii. using that information to develop a long-term environmental management plan for the Fraser River Delta and Salish Sea to guide future conservation efforts and sustainable development in the region, consistent with recommendations 68, 69 and 70 in the Review Panel report. Page 2 of 7 RBT2 Federal Review Panel Report July 15, 2020 C. THAT copies of this report and letters be sent to The Honourable John Horgan, Premier of British Columbia, Carla Qualtrough, MP, Ravi Kahlon, MLA, and Ian Paton, MLA. D. THAT copies of this report and letters be sent to the Climate Action and Community Livability Advisory Committee and the Mayor's Youth Council for information. ■ PURPOSE: The purpose of this report is to present the key findings and recommendations of the Federal Review Panel with respect to the RBT2 project, and assess the extent to which Delta's issues and concerns have been addressed. ■ BACKGROUND: On March 30, 2020, following a 5-year environmental assessment process, the Federal Review Panel submitted its report to the Minister of Environment and Climate Change (the Minister). The 600-page report sets out the conclusions and recommendations of the Federal Review Panel. The full report is posted on the Impact Assessment Agency of Canada's registry at: https://iaac-aeic.gc.ca/050/documents/p80054/134506E.pdf Due to the COVID-19 pandemic, the Minister approved a 90-day timeline extension, giving the Minister until November 23, 2020 to make a decision on the project. This means that the BC Environmental Assessment Office, which is participating in a harmonized environmental assessment process with the federal government, has until December 22, 2020 to report to the BC government, with a decision due within 45 days after that. ■ DISCUSSION: The conclusions of the Federal Review Panel are condensed into a three page summary document (Attachment 'A') and further summarized in the table below. Given the wide scope and depth of information on RBT2, this council report focusses on the Panel's responses to the key issues raised by Delta throughout the environmental assessment process. Federal Review Panel Findings FAVOURABLE: • The construction and operation of RBT2 do not pose major technical challenges. • RBT2 would support competitiveness for Canadian markets facing challenges in the marine shipping supply chain. • Delta, Metro Vancouver, British Columbia and Canada, as well as some Indigenous groups, would benefit from employment, business opportunities and economic development resulting from RBT2. Page 3 of 7 RBT2 Federal Review Panel Report July 15, 2020 UNFAVOURABLE: • The Panel concludes that RBT2 would result in numerous adverse residual and cumulative effects. • The proposed offsetting plan for aquatic species, totaling 29 hectares, would be insufficient to compensate for the habitat loss of 177 hectares of Roberts Bank. • There would be significant adverse and cumulative effects on wetlands and wetland functions at Roberts Bank. • The Panel concludes that RBT2 would not have an adverse effect on biofilm productivity and diatom composition; however, the Panel cannot conclude with any certainty about effects on polyunsaturated fatty acid production in biofilm and is unable to conclude that RBT2 would or would not have a residual adverse effect on Western Sandpipers. • Barn Owls would be subject to significant cumulative effects. • There would be significant adverse and cumulative effects on Dungeness crab and juvenile Chinook salmon. • RBT2 would cause significant adverse and cumulative effects on Southern Resident Killer Whales (SRKW). • RBT2 would result in significant adverse and cumulative effects on the cultural heritage and current use of lands and resources for traditional purposes by TFN and Musqueam Indian Band. • There would be effects on the quality of life of local populations, including health and quality of experience during commercial and recreational activities. • RBT2 would result in residual adverse effects on daytime and nighttime visual resources. • There would be a significant cumulative effect on the commercial crab fishery. • The construction and operation of the project would contribute to additional greenhouse gas emissions in the Metro Vancouver area, even after the application of mitigation measures. This contribution would result in a significant adverse cumulative effect. • RBT2 would result in a significant adverse effect and a cumulative effect on human health based on predicted exposures to nitrogen dioxide and other respiratory irritants. • RBT2 would result in a significant adverse cumulative health effect due to noise. • Elements of stress and annoyance due to light, noise and dust are already present in the local area and RBT2 has the potential to exacerbate these conditions. • RBT2 would likely cause a significant adverse effect and a significant cumulative effect on agricultural land use due to the loss of a small area of land contained in the Agricultural Land Reserve. • Ship wake wave height in shallower parts of the marine shipping area would constitute a safety hazard to small recreational and fishing boats. • RBT2 would result in a significant adverse cumulative effect on outdoor recreation. • If a worst-case spill were to occur in the marine shipping area, it could result in potentially significant adverse residual effects for vulnerable species such as SRKW, marine birds, commercial and recreational activities and Indigenous groups. With the Panel's conclusion that RBT2 will cause significant adverse and cumulative effects on the environment and on the quality of life in the local community, the federal government has Page 4 of 7 RBT2 Federal Review Panel Report July 15, 2020 the option to reject the project outright, or approve the project subject to terms and conditions that are intended to prevent or mitigate the adverse effects. It is acknowledged that some of the adverse effects cannot be mitigated (for example, on SRKW); therefore, it will be a decision of cabinet to determine whether the benefits to the nation derived from allowing the project to go ahead outweigh the adverse effects on the species, ecosystem and/or community. Panel Recommendations The Panel has listed 71 recommendations for actions to be undertaken if RBT2 is approved. VFPA has also provided a list of mitigation measures and other commitments; however, the Panel questions the effectiveness of those proposed measures: ''The Panel is of the view that, in many instances, the mitigation measures proposed by the Proponent would not be as effective as the Proponent predicted. The Panel recognizes that adaptive management would be essential if mitigation fails." (page 473) Adaptive management is a "learning by doing" approach that relies on ecological monitoring to test assumptions and identify adverse trends early on so that steps can be taken to respond to and manage those trends. Staff note, however, that if some of the adverse environmental effects are "immediate, continuous, and cannot be reversed", as Environment and Climate Change Canada scientists fear, then adaptive management will be too late and ineffective. Community Impacts Delta's concerns with respect to community impacts are detailed in its submission to the Review Panel (Attachment 'C'). The Panel finds that community impacts from port related noise, light and air quality are all expected to worsen as a result of RBT2. Experience with existing port operations indicates that many of these community impacts are extremely challenging to mitigate for a variety of reasons. The impacts from road and rail traffic have not been assessed as part of this process but we know that, with truck traffic expected to more than double from the current 4,500 truck trips per day to 9,600 daily, and train movements projected to increase from 17 to 29 a day, impacts will be significant for the Delta community. The air quality impacts from this projected increase in traffic have also not been assessed. Other Key Issues for Delta George Massey Tunnel - on the issue of congestion at the tunnel, the Panel notes that, if RBT2 is allowed to proceed, "the province, the City of Delta and Tsawwassen First Nation will need to collaboratively address local traffic issues" (page 341), and that the proposed improvements to the Highway 99 crossing should be expedited if RBT2 is approved.