Evidence of meeting #97 for Environment and Sustainable Development in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was board.
A recording is available from Parliament.
Liberal
The Chair Liberal Deb Schulte
Thank you very much, everyone, for helping us through that process, and for the good questions. I'm going to suspend for a few seconds to change up our witnesses and move to the next subject matter. Thank you.
Liberal
The Chair Liberal Deb Schulte
Pursuant to Standing Order 81(5), we are proceeding with supplementary estimates (C) 2017-18, vote 1c under Canadian Environmental Assessment Agency, votes 1c and 10c under Department of the Environment, and vote 1c under Parks Canada Agency, referred to the committee on Monday, February 12.
We're packing all this good stuff in because we cancelled a meeting on Tuesday, and that has caused everything to get jammed into this one day because there's only so much time to get everything back to the House. I apologize to the committee for the compression of our work, but that was the result of not having a meeting on Tuesday.
Welcome, witnesses. There are quite a lot of you at the table there, so we're going to get started with your names. I'm going to introduce you.
From the Department of the Environment, we have Douglas McConnachie, director general and deputy chief financial officer of the financial management directorate, and Matt Jones, assistant deputy minister of the pan-Canadian framework implementation office. It's nice to see you again.
We also have John Moffet, acting associate assistant deputy minister of the environmental protection branch. You guys are getting to be regulars here. It's fantastic.
From the Parks Canada Agency, we have Rob Prosper, vice-president of protected area establishment and conservation, and Sylvain Michaud, chief financial officer. Welcome.
From the Canadian Environmental Assessment Agency, we have Alan Kerr, vice-president of corporate services and chief financial officer, and Heather Smith, vice-president of operations.
Welcome to all of you. Thank you for being here today to present to us. I know not all of you are speaking, so who would like to go first?
Go ahead, please, Alan.
Alan Kerr Vice-President, Corporate Services and Chief Financial Officer, Canadian Environmental Assessment Agency
Thank you, Madam Chair.
It's my pleasure to join you today to discuss the 2017-18 supplementary estimates (C) and the 2018-19 interim estimates for the Canadian Environmental Assessment Agency. I'm Alan Kerr, vice-president of corporate services and CFO, and I'm joined by my colleague Heather Smith, vice-president of operations.
I will begin with my presentation of the items that have been requested by the agency in the 2017-18 supplementary estimates (C), and close with a brief overview of our 2018-19 interim estimates.
The Canadian Environmental Assessment Agency provides evidence-based environmental assessments that protect the environment, foster economic growth, and serve the interest of Canadians. We support the Minister of Environment and Climate Change in carrying out her responsibilities by conducting environmental assessments for major projects, which are based on science, and which include feedback and expertise received from the public, indigenous groups, and other stakeholders.
In the 2017-18 fiscal year, the agency actively supported the minister in leading a national review of federal environmental assessment processes. In June 2017, the government released a discussion paper that outlined a series of changes that it was considering to strengthen Canada's environmental assessment and regulatory processes.
The government has engaged extensively on the discussion paper since its release, both online and through in-person meetings, including through the launch of an engagement website to solicit input on the proposed approach. During this consultation, the minister and the agency's staff collectively held over 100 meetings with indigenous groups, provinces and territories, industry, and non-governmental organizations. The result of these consultations was the tabling of legislation by the minister on February 8 of this year.
Supplementary estimates (C) provide the agency with $1 million in expenditure authority from Environment and Climate Change Canada to assist in managing the costs of these extensive consultations.
In 2018-19, in addition to supporting the minister during the parliamentary process as the proposed bill is considered, the agency will continue its important day-to-day work in conducting environmental assessments while also preparing for the potential passing of the bill into law.
To accomplish these critical mandates and deliver on the government's priorities, the agency seeks an interim supply of $15.1 million to meet the agency's financial obligations pending approval of the main estimates. Our team will fulfill our mandate of conducting high-quality environmental assessments that contribute to informed decision-making and support sustainable development. In all of our activities, we will continue to consider feedback and expertise received from the public, indigenous groups, and other stakeholders.
We will be happy to answer any questions the committee may have. Thank you, Madam Chair.
Liberal
The Chair Liberal Deb Schulte
Thank you.
We're going to hear from several of you and then we'll get into questions. We'll keep the questions until we've heard from all of you.
Thank you.
Who is up next? Monsieur Michaud.
Sylvain Michaud Chief Financial Officer, Parks Canada Agency
Madam Chair, thank you for this opportunity to meet with the committee to discuss the 2017-18 supplementary estimates (C) and the 2018-19 interim estimates for the Parks Canada Agency.
I will begin by addressing the Parks Canada Agency supplementary estimates C, which is Parks Canada's third and final opportunity to make adjustments to its 2017-18 main estimates.
The agency's submission amounts to an increase in appropriations of approximately $27.5 million, bringing the agency's total appropriations to $1.7 billion in 2017-18.
Parks Canada is seeing adjustments to its appropriations for the following three items. The first is $27 million relating to emergency responses to natural disasters and associated health and safety related costs due to extreme weather and weather-related events. In 2017 British Columbia and Alberta saw a series of record-breaking wildfires in terms of size, severity, duration and risks to people, infrastructure and economic activity. These fires resulted in Parks Canada having to engage its largest fire response season in history.
In addition to fires in western Canada, eastern Canada experienced several major flood events that required higher than normal emergency water control responses.
Second is approximately $700,000 to implement activities to pursue a national marine conservation area in the Canadian portion of the last ice area within Canadian Arctic waters and complete a visibility settlement and negotiations for an Inuit impact and benefit agreement.
The last ice area is a large region within the high Arctic of Canada and Greenland. This area is a region where the oldest Arctic multi-year ice is found, which is most likely to retain its summer sea ice into 2050 as the planet warms up due to climate change.
The third is a transfer of $405,000 from Parks Canada to Library and Archives Canada in return of a parcel of land in Gatineau, Quebec to serve as the future site of the agency's national collections facility.
Next, I would like to address the Parks Canada Agency's 2018-19 interim estimates, which are approximately $321 million. These estimates represent the agency's spending requirements for the first three months of the fiscal year and include a list of grants to allow the agency to make grant payments as of April 1, 2018.
I'd like to thank you, Madam Chair and the committee, for your time today.
We'll be happy to answer any questions.
Douglas McConnachie Director General and Deputy Chief Financial Officer, Financial Management Directorate, Department of the Environment
Thank you, Madam Chair, vice-chairs, honourable members.
Good morning.
It is my pleasure to join you today to discuss the 2017-18 supplementary estimates (C) and the 2018-19 interim estimates for Environment and Climate Change Canada, or ECCC.
My name is Doug McConnachie. I'm director general, financial management services and deputy chief financial officer.
I'm joined by my colleagues Matt Jones, assistant deputy minister of the Pan-Canadian framework implementation office, and John Moffet, acting associate assistant deputy minister of the environmental protection branch.
I'll begin with a presentation of the items that were requested by ECCC in the 2017-18 supplementary estimates C and close with a brief overview of our 2018-19 interim estimates.
Through the supplementary estimates C, ECCC is requesting parliamentary approval of a net increase in authorities of $195.8 million. This amount comprises $197.1 million in new spending, as well as $1.3 million in net transfers to other government departments.
This represents a 17.4% increase in our authorities to date, from $1.1 billion to $1.3 billion.
The supplementary estimates (C) include new spending for three items: the Low Carbon Economy Leadership Fund, the Green Municipal Fund, and funding for the Pacific Environment Centre.
The Low Carbon Economy Fund was announced in Budget 2017 with a total budget of $1.4 billion over a five-year period. ECCC is requesting $115 million of this total through these estimates and will request the remainder of this funding through future estimates.
The low carbon economy leadership fund is a key component of the pan-Canadian framework that will help provinces and territories deliver on leadership commitments to reduce greenhouse gas emissions. The fund will deliver clean sustained growth, support innovation, and reduce energy bills, helping Canadians save money and contribute to fighting climate change. The low carbon economy leadership fund also supports implementation of the pan-Canadian climate plan by investing in projects that will generate clean growth and reduce carbon pollution. These investments support Canada's Paris Agreement commitment and align with the 2030 national climate target.
Additional funding of $125 million for the Green Municipal Fund, which is administered by the Federation of Canadian Municipalities, was announced in Budget 2016. ECCC is requesting $62.5 million through these estimates, with the remaining half to be requested by Natural Resources Canada.
The green municipal fund provides loans and grants that have a positive impact on the health and quality of life of Canadians by reducing greenhouse gas emissions; improving local air, water, and soil quality; and promoting renewable energy by supporting environmental studies in projects within the municipal sector. The green municipal fund supports the investing in Canada plan, a long-term ambitious plan of transformational investments in infrastructure that will help us to build strong communities, create jobs, and grow the economy.
ECCC has requested $19.6 million through these estimates to increase baseline funding for the Pacific Environmental Centre. ECCC's lease for this site requires the parties to conduct an independent review of rental costs every five years. In June 2017, the ECCC received an arbitration decision that increased the annual rent by $7.2 million, retroactive to the beginning of the five-year review period in 2013-14.
Finally, ECCC has requested four transfers of authorities to other government departments through these estimates. These transfers are: $1 million to the Canadian Environmental Assessment Agency to assist with temporary operating pressures; $0.2 million to Correctional Service Canada to help address contaminated sites under their jurisdiction; $0.2 million to Global Affairs Canada to support whole of government initiatives internationally; and $0.1 million for Fisheries and Oceans Canada to be applied under the Aboriginal Fund for Species at Risk.
I will now provide a very brief overview of the 2018-19 interim estimates. The tabling of interim estimates is a new process that has been designed to provide more coherent information to Parliament and to better align the federal budget and the estimates.
In past years, the main estimates were tabled by March 1, followed by an interim supply bill that was typically based on 25% of the main estimates. The interim supply bill ensured that the government had sufficient funding to commence the fiscal year.
The 2018-19 main estimates will be tabled on April 16, after the federal budget has been presented. This will allow parliamentarians and Canadians to more clearly see the alignment of the federal budget and estimates as compared to previous years.
With this change, through the 2018-19 interim estimates, ECCC is requesting funding for the first three months of the fiscal year and the authority to make commitments up to the amount of planned spending.
The ECCC is requesting funding of $357.4 million to the 2018-19 interim estimates, which represents one-quarter of its anticipated planned spending for the fiscal year. This amount comprises $188.2 million in operating expenditures, $19 million in capital expenditures, and $150 million in grants and contributions. The most significant increase in year-over-year funding is related to the anticipated planned spending for the low carbon economy fund of approximately $500 million.
I hope that this summary of initiatives in the 2017-18 supplementary estimates (C) and the 2018-19 interim estimates provides the committee with additional clarity on ECCC's request.
Thank you very much.
Liberal
The Chair Liberal Deb Schulte
Thank you very much for the quick summary. We'll move right into questions and we'll start with Mr. Bossio.
Liberal
Mike Bossio Liberal Hastings—Lennox and Addington, ON
I'm going to share my time with Mr. Aldag and he's going to start.
Liberal
John Aldag Liberal Cloverdale—Langley City, BC
I'm in a bit of a parks headspace right now after my first hour here, so I have a couple of quick questions for Parks Canada.
On the $27-plus million for natural disasters, it was mentioned in the opening comments that this arose from a lot of the issues in western Canada this year. Is that money that has been spent, or are there still expenditures arising? How confident are you that the $27.3 million and change will cover off the expenses arising from the natural disasters? That's the first one, if you could give a brief comment.
The second one is that I was a bit surprised with the $405,000 transfer for land acquisition. I know there have been some decisions to not transfer the collections from Halifax, and now recently Quebec. I assume we're going ahead with the new collections facility.
I suppose the land needs to be purchased, but is Parks Canada still going with the full-size facility that was envisioned after the DRAP cuts in 2012? What's happening there? As I said, I was surprised that this was still moving on, in light of some recent decisions.
Chief Financial Officer, Parks Canada Agency
In terms of the expenses for the fire, we're still on track to basically spend every single dollar that we will receive. We're just in the process of getting the final invoices from some of our partners, but so far, we've looked at all of these estimates of the expenditures coming in, and we'll be exactly bang on in terms of the money that we're asking for versus the total expenditures.
In terms of the collection consolidation project, we're still moving ahead with this one. Currently our collections are located in six different facilities across the country, so yes, a decision has been made that we're still going to consolidate those artifacts over time. It's going to take some time, but we are still moving ahead. This is really to ensure the protection and the conservation of these artifacts. We have to make sure that we have the proper environmental conditions and security measures in place to really protect and conserve those artifacts.
Liberal
Mike Bossio Liberal Hastings—Lennox and Addington, ON
Thank you, all, for being here today and for your presentations.
There are a number of different funds that you have brought up that I am very excited about. One of my communities, Amherstview, benefited from the green municipal fund in a constructed wetland, so I am over the top excited about the budget announcement of $1.3 billion into protecting Canada's nature parks and wild spaces.
Is this going to enable Environment to continue funding those types of projects in order to continue to expand our protected spaces?
Sue Milburn-Hopwood Assistant Deputy Minister, Canadian Wildlife Service, Department of the Environment
Yes, there was exciting news in the budget related to investments in conservation activities, so there will be details of all of this. It is not yet all worked out, but there will definitely be opportunities for investment in private lands, in public lands for protected areas, and other ecosystem services to protect areas and also to protect species in the areas.
Liberal
Mike Bossio Liberal Hastings—Lennox and Addington, ON
Outstanding. Thank you so much. I appreciate that.
Another area that I find really exciting is the $150 million into the low carbon economy leadership fund. I have a company in my riding that wants to turn an old abandoned mine, the Marmoraton Steel Mine, into a 450-megawatt battery, so a massive carbon sink would result from this. Is this the type of project you envision this fund is really geared towards?
Matt Jones Assistant Deputy Minister, Pan-Canadian Framework Implementation Office , Department of the Environment
The low carbon economy fund is designed to leverage the monies of provinces and potentially companies and other participants, municipalities and others. The leadership fund is set up in a way where we're taking proposals from the provinces and sifting through those, so which proposals are brought forward is largely driven by the provinces within the parameters that we have set.
Because there are different funds, like the green municipal fund, green infrastructure, and clean technology funds, we've set up the low carbon economy fund to focus on a fairly niche area, mostly the built environment, which means existing buildings, energy efficiency, industrial emissions, forestry, and agriculture. There is an opportunity for some movement around there depending on the projects and what is brought forward.
Typically, for funds of that nature, when we receive them, if they don't fit the low carbon economy fund, we have an interdepartmental process to see where they would fit in terms of other funds that exist within the federal family.
Liberal
The Chair Liberal Deb Schulte
Thank you so much.
Some of you know what I'm doing up here, but this means you have one minute to go until the time is out. That means you're out of time and just wrap up whatever you're saying.
We're out of time, so we'll move on to Mr. Sopuck.
Conservative
Robert Sopuck Conservative Dauphin—Swan River—Neepawa, MB
Thank you.
My first question is to Mr. Kerr, who talked about the environmental assessment process.
You are aware that all modern industrial projects—pipelines, natural resources projects, and so on—are built with the highest environmental standards built in, right? There is no company that builds a substandard project these days, correct?
Vice-President, Corporate Services and Chief Financial Officer, Canadian Environmental Assessment Agency
I would off that I just don't have the technical expertise to offer the committee to make that assertion.