Environment Committee on Nov. 20th, 2018

[The Chair, Mr. John Aldag (Cloverdale—Langley City, Lib.)]

Good afternoon, everyone. Welcome to our witnesses. We see many familiar faces. It's nice to have you back.

I apologize for the slight delay in getting started today. We did have votes and getting everybody over here takes a minute. We will go a full hour with the departmental group before us today. After that, we'll be going in camera and doing some committee business. We've eaten into that time, not into this session.

The purpose of today's meeting is to look at the supplementary estimates. We have the Canadian Environmental Assessment Agency with us, as well as the Department of the Environment. I believe we're going to have three brief presentations on the supplementary estimates. Let's get started with that.

Who would like to go first?

[Carol Najm, Assistant Deputy Minister, Corporate Services and Financial Branch, Department of the Environment]

Thank you, Mr. Chair.

Good afternoon, members.

I'm pleased to be here with you today to discuss the 2018-19 supplementary estimates (A) for Environment and Climate Change Canada.

With me are Matt Jones, the assistant deputy minister of the pan-Canadian framework implementation office; Sue Milburn-Hopwood, the assistant deputy minister of the Canadian Wildlife Service; Mark Cauchi, our director general for protected areas; and Mary Taylor, our director general, environmental protection operations.

Supplementary estimates (A) include $23 million in new spending that requires parliamentary approval and a reduction of $3.2 million in transfers, for a net total of $19.8 million. This represents a 1.2% increase over the authorities to date, bringing the proposed authorities to $1.65 billion.

Our estimates include new spending for six items: new impact assessment and regulatory processes; the indigenous guardians program; the federal carbon pollution pricing system; Canada's nature, parks and wild spaces; government advertising programs; and funding to address issues in pay administration. I will now provide a summary of each item.

In January 2018, the Government of Canada announced that it would invest $1 billion over five years to support the new impact assessment system. The new process will broaden impact assessments to consider health and socio-economic impacts in addition to environmental impacts, create a new early planning and engagement phase and strengthen partnerships with indigenous peoples.

The supplementary estimates (A) are seeking a total of $74.6 million in 2018-19 for this horizontal initiative, which includes $8.1 million for Environment and Climate Change Canada to provide scientific advice and expertise, collect data, implement open science and a data platform, and provide contributions to support community-based monitoring.

Budget 2017 announced $25 million over five years to support the indigenous guardians program. This initiative will give indigenous peoples greater responsibility and resources to manage their traditional lands and waterways, and facilitate partnerships with indigenous communities in monitoring ecological health, maintaining cultural sites and protecting sensitive areas and species. Environment and Climate Change Canada is requesting $5.3 million in these estimates to establish and administer the indigenous guardians program.

Moreover, Environment and Climate Change Canada is seeking $3.9 million in supplementary estimates (A) to support the development of a federal carbon pollution pricing system that would apply in provinces and territories upon request, and in provinces and territories that do not have a pricing system in place that meets the federal benchmark by the end of 2018.

Budget 2018 also announced $1.3 billion in spending over five years to support Canada's biodiversity by protecting species and spaces. The supplementary estimates (A) are seeking $17.5 million for this horizontal initiative, including $1.7 million for Environment and Climate Change Canada to renew and enhance the species at risk program, strengthen the management of the department's conservation areas and provide contributions to promote the conservation of biodiversity through the Canada nature fund.

Environment and Climate Change Canada is also seeking $1.4 million in funding for advertising programs to implement the nature legacy campaign.

The last spending item in these estimates is to address issues in pay administration. A total of $24.9 million is being sought by various departments and agencies, including approximately $800,000 for Environment and Climate Change Canada, to strengthen internal capacity to address human resources and pay administration issues.

As for internal transfers, a reallocation of resources will allow Environment and Climate Change Canada to realign its funding with emerging priorities.

These reallocations include a transfer of $550,000 from contributions to grants under the innovation solutions Canada program. This program supports the growth of innovative Canadian businesses by encouraging the government to act as the first customer. Environment and Climate Change Canada is increasing the funding for that program from $50,000 to $600,000 in 2018-19 using existing funds, and issued its first challenge in fall 2018 in support of the plastic reduction strategy.

These priorities also include a transfer of $600,000, from the operating funds in vote 1 to the grants and contributions in vote 10, to support the Canadian centre for climate services in providing enhanced climate information to Canadians. This reallocation of funds from the program's existing operating funds will provide the funding that is required for a modified approach to delivering the program. Whereas a government-built and operated web portal was originally envisioned, Environment and Climate Change Canada will now leverage the considerable expertise of the climate services community in Canada to deliver this commitment in a more cost-effective and robust way.

A transfer of $2.5 million from contributions to grants in support of “Taking Action on Clean Growth and Climate Change” is also included. This new grant authority was recently approved by the Treasury Board. Environment and Climate Change Canada is now seeking to list an amount of $2.5 million for this new grant to be funded from existing reference levels. The climate action fund supports climate actions in communities across Canada. It seeks to increase awareness of and participation in climate action among Canadians, especially youth, students, indigenous peoples and organizations, and small and medium-sized businesses.

Included, as well, is a vote transfer of $5.5 million from our operating funds in vote 1, to the grants and contributions in vote 10, to support commitments related to the G7 ocean plastics charter and the Global Commission on Adaptation. The department has a number of mandated items and priorities that were conferred through budget 2018, for which there have been no incremental resources. As such, the department has proactively reallocated funds from within existing reference levels to ensure that these high-priority items can go forward. Environment and Climate Change Canada is seeking a transfer between votes in order to provide the department with the funds required in contributions, to allow the department to fulfill its commitments related to the G7 ocean plastics charter and the Global Commission on Adaptation.

As for transfers to other organizations included in our supplementary estimates (A), Environment and Climate Change Canada is transferring a total of $3.2 million to four organizations to support collaborative projects and research for various programs.

I hope the summary of our initiatives included in these estimates provides the committee with the insights it is seeking.

Thank you.

[The Chair]

Excellent. Thank you for those opening comments.

Now we'll move to the Canadian Environmental Assessment Agency. We have two presentations, so whoever would like to go first.

[Alan Kerr, Vice-President, Corporate Services, Canadian Environmental Assessment Agency]

Thank you, Mr. Chair and members of the standing committee. I'm Alan Kerr, vice-president, corporate services and chief financial officer, and I'm joined by my colleague Christine Loth-Bown, vice-president, external relations and strategic policy, to discuss the 2018-19 supplementary estimates (A) for the Canadian Environmental Assessment Agency.

The Canadian Environmental Assessment Agency provides evidence-based environmental assessments. The agency's team of highly qualified employees supports the Minister of Environment and Climate Change in carrying out her responsibilities by conducting environmental assessments for major projects in a manner that protects the environment, fosters economic growth and jobs, supports sustainable development and reflects expertise received from the public, indigenous groups and other stakeholders.

In 2017-18, the agency supported the minister in leading a national review of federal environmental assessment processes, and in February 2018 these efforts reached a milestone with the tabling in Parliament of Bill C-69 that proposes changes to the current Canadian Environmental Assessment Act of 2012.

In this regard, we are providing ongoing advice and support to the parliamentary process. Regulatory and policy work, including public consultations, also began following the February announcement. In conjunction with this support to Parliament, within the agency, we are preparing to implement the proposed new approach to impact assessment. Budget 2018 announced new funding for the agency of $258 million over the next five fiscal years, including $21 million of funding in fiscal year 2018-19; $19.1 million for program expenditures, which include $99,000 in funding for pay administration; and $1.9 million for statutory expenditures for employee benefit programs. This funding has been requested to implement key legislative, regulatory, program and policy measures to support the successful implementation of the new impact assessment process upon coming into force and transition from environmental assessment to impact assessment.

In June of 2018, the agency accessed $11 million of the $21 million with a financial authorities instrument submission to Treasury Board. This funding enabled the agency to advance the necessary policy and regulatory instruments, hire staff and secure additional workspace, to take on a more proactive role and seamlessly transition to the new impact assessment act.

The funding provided through supplementary estimates (A) will be divided into three main program areas, namely, impact assessment, partnering with indigenous peoples, and cumulative effects and open science and evidence. To support these programs the agency was allocated 100 new full-time equivalent employees for 2018-19, 65 of whom have been hired thus far and staffing actions are in place to recruit the balance.

Now I'd like to introduce my colleague Christine Loth-Bown to expand on these main areas.

Thank you, Mr. Chair.

[Christine Loth-Bown, Vice-President, Policy Development Sector, Canadian Environmental Assessment Agency]

Thank you, Mr. Chair, and members of the committee.

I'd like to give today some further detail on the initiatives and programs to which the funding that Alan has outlined will be allocated.

Under the proposed impact assessment act, Bill C-69, the agency will become the lead organization responsible for federal impact assessment of designated projects. This will include projects which are currently assessed by the National Energy Board and the Canadian Nuclear Safety Commission. The agency will be conducting assessments within strict legislated timelines.

Some of the significant responsibilities and enhanced programs proposed under the legislation include the following: the conduct of a new early planning phase for projects, improved co-operation with other jurisdictions, increased opportunities for public participation and transparency, and support for indigenous peoples and the public in an expanded role in monitoring impacts during the implementation and operation of approved projects.

I'd like to note that the agency is now pursuing discussions on co-operation agreements with interested provinces, and is considering piloting early planning for projects in the early stages of environmental assessment under the Canadian Environmental Assessment Act—the current legislation, CEAA, 2012.

Under the new act, the agency will fulfill the role of Crown consultation coordinator for all designated projects, and the agency will ensure effective collaboration and meaningful consultation with indigenous peoples. These goals will be achieved through the provision of increased participant funding, as well as the launch of a new capacity support program that will improve the preparedness of indigenous groups and their technical expertise related to impact assessment.

In turn, this increased capacity is expected to result in improved participation in federal assessments, ensuring that indigenous knowledge, laws and culture are considered in impact assessment and influence assessment processes. These efforts will support the government's reconciliation commitments and build deeper collaboration with indigenous peoples.

The final area for which the agency is receiving funding will allow the agency to make important contributions to the government's deliberative approach to cumulative effects. The agency will lead the conduct of three regional assessments over five years, which will support the management of cumulative effects and provide important information for future project assessments.

The agency is using the funding that was approved earlier this year to support the work on the first of the three regional assessments, which will explore the potential impacts of offshore oil and gas exploration. This initiative has been launched jointly with the Government of Newfoundland.

Thank you to the members of the committee for the opportunity to speak today. I look forward to taking any questions you may have.

[The Chair]

Thank you for your comments.

By way of information for our officials here today, you'll also note that the Parks Canada Agency received funding. They were unable to send anybody from the organization to see us today.

For committee members, be advised that we will be giving Parks Canada one hour of our undivided attention next Tuesday. They will have lots of love and attention on their own next Tuesday, after we do an hour of testimony on the study we're undertaking.

I don't want you to feel that anybody is getting off easy here. We appreciate all of you for being here and joining us today.

With that, we're going to go to the tag team of Mr. Fisher and Ms. Dzerowicz for the first round of questions, for six minutes.

[Julie Dzerowicz, Davenport, Lib.]

Thank you, Mr. Chair.

Thank you to all of you for coming here and for your excellent presentations.

In general, I don't have any issues. I have a number of small questions, and it's just a matter of me better understanding where the money is going to be spent.

My first question is around the supplemental estimates. It includes $23 million in new spending that requires parliamentary approval, and a reduction of $3.2 million in transfers. What's the reduction in transfers? Where is that being reduced?

[Carol Najm]

That's money that we had in our reference level that we are asking to be moved to other departments that work in collaboration with us—

[Julie Dzerowicz]

Okay.

[Carol Najm]

—such as DFO, NSERC, NRCan and our Global Affairs.

[Julie Dzerowicz]

We just took from areas where we don't need it and redirected it to where we do need it.

[Carol Najm]

For the areas where we work in collaboration....

[Julie Dzerowicz]

Okay.

We've put some additional dollars into the impact assessment and regulatory process. It seems like we are broadening the assessment to consider health and socio-economic impacts. Could you explain that a little bit to me just very quickly?

[Christine Loth-Bown]

Currently, under CEAA, 2012, an assessment looks at just the environmental effects of a project. Under the proposed impact assessment act, we will be looking at environmental, as well as social, health and economic impacts. As a result of that, the agency needs to increase its staffing and expertise in the health and social areas.

Carol noted that budget 2018 gave a broader budgetary allotment to a number of federal departments. Health Canada has also received funding as part of budget 2018 to support the evaluation of health impacts.

[Julie Dzerowicz]

When we look at health and socio-economic impacts, are we looking at the air quality, people breathing in things? Can you give me some examples of what that would be, just quickly?

[Christine Loth-Bown]

We are currently developing policy and technical guidance, but yes, it would look at what water quality issues there are, what air issues there are, what noise issues there are and how a particular project's impacts may affect individuals' health. That will be included as part of the assessment.

[Julie Dzerowicz]

Thank you.

There are additional dollars to support the development of the federal carbon pollution pricing system, which would apply to those that do not have a pricing system in place. I'm assuming that these dollars are for, currently, the four provinces for which we have announced the price on pollution: Ontario, Saskatchewan, Manitoba and New Brunswick. Is that correct?

[Mary Taylor, Director General, Environmental Protection Operations, Department of the Environment]

Yes, I believe that's correct.

[Julie Dzerowicz]

When we say that it's to support the pricing system, is it just the administration of it? What is the support? How do we define that?

If you don't know, it's okay.

[Mary Taylor]

I'll have to take that back.

[Julie Dzerowicz]

Okay. Thank you.

In 30 seconds, it looks as if we're allocating money for the plastic reduction strategy, which I'm very happy about. I think we've allocated.... How much is it? Is it $550,000? What is it specifically for?

Then I'll transfer it over to Mr. Fisher.

[Carol Najm]

Specifically with the innovative solutions Canada program, we have a project to reduce plastic waste.

[Julie Dzerowicz]

Yes.

[Carol Najm]

Currently, recycling does not include all types of plastic, so in using this innovative solutions approach we are looking to launch a project to reduce plastics from food waste—food wrappings and so on. Currently, a lot of recycling programs do not accept all kinds of plastics, so innovative solutions will look to solutions that address food processing.

[Julie Dzerowicz]

Perfect.