All right.
Thank you very much for giving us an opportunity to talk to you about the work of the Canadian Environmental Assessment Agency, and in particular the work we do on the oil sands.
We've prepared a presentation that shouldn't take too long. It was distributed to you. I'll do the first part en français and the rest of it in English. Later my colleagues and I would be pleased to answer your questions.
The presentation that we prepared for you is essentially going to cover three subjects. To start with, I will be talking to you about the general meaning of the term “environmental assessment,” including the federal environmental assessment process and the role of the Canadian Environmental Assessment Agency. Then I will be talking to you about our cooperation agreement with the Government of Alberta and, finally, our experience to date with environmental assessments and oil sands projects.
I should begin by telling you that the Agency is involved in the major projects. Each year in Canada, various federal departments perform 6,000 environmental assessments, and the Agency is very closely involved in the biggest ones.
The purpose of an environmental assessment, as you know, is to determine a project’s potential negative effects on the environment. That allows us, before the work begins, to decide how to mitigate or avoid those negative effects. In the case of a mining project, for example, simply relocating a road to avoid crossing wetlands can have very positive effects on the environment.
At the federal level, the environmental assessment allows the public to have a say. This is an important component. It gives interested Canadians the opportunity to say what they think about a project and to inform the Agency and federal ministers of the effects it may have.
A good environmental assessment allows us to avoid major environmental damage. At the Agency, we often use the following example: if there had been a good environmental assessment process at the turn of the last century, that is, in 1900, we would not have to spend $400 million or $500 million today to clean up the Sydney tar ponds in Cape Breton.
The Canadian Environmental Assessment Act was adopted by Parliament in 1992. It came into force in 1995, and was amended in 2003. The biggest amendment that year was to confirm the Canadian Environmental Assessment Agency’s role as the coordinator of environmental assessments.
It is important to note that the Canadian Environmental Assessment Act is very similar to the American act adopted in 1970. The basic principles are the same. The environmental assessment process and the roles of the various federal organizations are similar.
The Act applies to project proposals requiring a federal decision. A federal environmental assessment must be performed in the four following cases: first, when the federal government is the promoter, when it is building a structure, for example; next, if it is funding all or part of the project, municipal infrastructures, for example; then, if the project is being carried out on crown lands, in other words, if the promoter is using lands that belong to the federal government; and, finally, in all cases where a permit issued by a federal body is required, such as when the use of explosives requires a permit from Natural Resources Canada.
The responsibility for environmental assessments, as I said earlier, lies with the federal department involved. In the case of the oil sands, the decisions that serve as the trigger often involve the Fisheries Act. That is the case when the Department of Fisheries and Oceans feels that the project could have a negative impact on fish habitats. On other occasions, is the Department of Transport that sets off the environmental assessment because it must issue a permit to use a waterway under the Navigable Waters Protection Act.
There are three types of environmental assessment. First, there is what is known as screening. This involves small projects, known as ordinary projects, and represents 95% or 96% of all federal environmental assessments.
The second category is known as a comprehensive study. These are much bigger and more complex projects. Projects of this type are included in a list in the Canadian Environmental Assessment Act.
Finally, the third category involves very large projects that are likely to have a major environmental impact or that are controversial and about which there is a great deal of concern. In those case, the Minister of the Environment, most of the time on the agency’s recommendation, appoints a panel to review these projects.
Slides 5 and 6 list some of the agency's responsibilities and duties relevant to oil sands environmental assessments but also relevant to all projects.
A lot of effort at the agency goes into supporting independent review panels, which are appointed by the Minister of the Environment. Those are for the big projects, and sometimes the controversial ones.
For projects assessed through a screening or a comprehensive study, the role of the agency is as a coordinator. When you have more than one federal authority or department involved, we're responsible for making sure they're well coordinated and are working well together. That's basically what we do.
As indicated on slide 6, we have a participant fund, and that's a characteristic of the federal process that you don't find in most, I would say, of the provinces or in other jurisdictions. Our participant fund supports individuals and non-profit organizations that are interested in a project and want to testify or make a contribution. It helps ensure that our review panels get community, aboriginal, and expert knowledge about the possible effects of a proposed project.
In the case of the Muskeg River mine expansion project, which I'm sure you're familiar with, we have allocated $100,000 in participant funding for three organizations. First, there's $23,000 for the Athabasca Chipewyan First Nation industrial relations corporation; $41,000 for the Mikisew Cree First Nation; and finally, a little bit more than $34,000 for the Oil Sands Environmental Coalition.
The agency also negotiates agreements with provinces and territories to prevent duplication and hopefully achieve our goal of “one project, one assessment”. This is relevant to the way we work with Alberta in the case of the oil sands, and I'll give a few more examples later.
Turning to slide 7, the Canada-Alberta Environmental Assessment Cooperation Agreement was first signed in 1993, but it was amended and revised and renewed in 1999 and in 2005.
The fundamental principle behind those agreements, and the one with Alberta in particular, is that we want a single cooperative assessment that will meet the requirements of both the federal and the provincial legislation. There's no point, if we can avoid it, in subjecting a project or a proponent to two different, separate, independent processes. We're trying to do it together.
For example, under this agreement, we set integrated information requirements for the proponent and we can establish joint review panels where both governments appoint panel members. In the case of Alberta, the Minister of the Environment at the federal level appoints members, who are in turn appointed by the provincial cabinet, and vice versa. Each jurisdiction then takes the results of that cooperative environmental assessment to make its own decision about the project.
On slide 8, in the case of Alberta, what we typically do is work with the Alberta Energy and Utilities Board, which holds hearings. The Minister of the Environment appoints a representative to be on the Alberta Energy and Utilities Board, who in turn is appointed by the provincial cabinet, and vice versa.
The hearings are conducted by this joint panel. But then there's the participant funding, which is a characteristic of the federal process, that kicks in. So we allocate some funding, which again is managed by the joint panel.
Again, the joint process determines what kinds of mitigation measures are necessary for that project to go ahead, and then both governments make their respective decisions on going ahead or not going ahead. Actually, I shouldn't say going ahead or not going ahead with a project. The answer is never not to go ahead with a project; it is to list a series of mitigation measures. On a few occasions, the mitigation measures are so demanding that the project will not proceed, but we have only very few examples of that, I would say.
Cumulative effect is a challenging part of what we have to do. We're assessing project by project, and yet it is a requirement of the federal legislation to take into account cumulative effect. Joint panels have in their terms of reference and mandate the necessity to deal with cumulative effects. The difficulty with cumulative effects is that there is no cookie-cutter approach. There is no textbook approach to assessing all that, but it is being done to some extent, and to a great extent in some cases.
On slide number 9, finally, at the federal level, an environmental assessment informs the decision that departments need to take. So with a good environmental assessment, Transport Canada will then decide, yes, you can go ahead with that project but you have to do such and such a modification so that it doesn't interfere with navigation on that body of water. Fisheries and oceans will make a decision on the project, but also include some mitigation measures so that it doesn't have a negative impact on fish habitat.
When the project is at the panel level, the Ministry of the Environment receives a report from the panel, and then the various departments involved have a look at this report and prepare a proposed response for cabinet, for the government, and that's done jointly.
Projects assessed through a comprehensive study or review panel also require a follow-up program. So it's one thing to do the environmental assessment, but as the project is being done or completed, you have to follow up. We have to do a couple of things. One of them is first of all to verify that our predictions about the impact on the environment or the result of the mitigation measures is really what is taking place. The second part is to determine the effectiveness of mitigation measures and see if we have to modify what we do. It's the concept of adaptive management. After the fact, as we monitor, we may go back to the proponent and say, given what's happening, you may have to modify this, that, or the other thing.
On slide 10, I give you a list of the major oil sands projects that have undergone a federal assessment. I'm talking about the big ones here. Some oil sands projects also have been assessed through screenings, the lowest level of environmental assessment. A couple of examples are True North's Fort Hills and Suncor's Voyageur, which were two projects assessed mainly by Fisheries and Oceans at the screening level.
On page 11, I've tried to give you some idea of the outcomes--what kinds of conditions we impose on a proponent. When we put that slide together, I said to my colleagues, first of all, some of you will have to explain to me some of the terminology here. If I had a problem, I decided I would at least explain to you, respectfully, what some of the words mean.
On the benthic zone, I'm referring to the Jackpine project, where we talk about the benthic macroinvertebrates and monitoring that. The benthic zone is the lowest level of a body of water, and it's inhabited by organisms that tolerate cool temperatures and low oxygen levels, called benthos or benthic organisms. A macroinvertebrate includes snails, worms, crustaceans, and leeches. The presence of pollution-sensitive macroinvertebrates indicates that the body of water is healthy. In other words, if those creatures that are sensitive to pollution live there, it means that the water is okay. On the other hand, if you have excessive presence of pollutant-tolerant macroinvertebrates, then that means that the water is probably very polluted because they're the only ones that can live there. So that's the type of monitoring program that we've asked to have done on the Jackpine project.
On the next one, Horizon, we refer to fish-tainting compounds. By-products of oil sands extractions that enter into water bodies typically alter the taste and odour of fish, making them not very attractive. So the minute you find that, then you know you've had an impact.
Those were a few examples, and there are many others, but I thought I would do that.
The last slide, number 12, is entitled, “The way ahead”. There are a number of things happening that we need to pay attention to at the agency, and our colleagues at the more active departments on environmental assessments are paying attention to them.
First, Natural Resources Canada is forecasting $60 billion of oil sands projects between now and 2013. This is a lot of work for us and for key departments, and we're going to have to find a way to face that volume of work.
Two, there's the Government of Alberta's multi-stakeholder oil sands consultation that was launched, and we're participating in it. It's a higher-level regional environmental assessment, if you wish. The Government of Alberta is trying to assess what's going to be the impact of all the development in northern Alberta. We have a couple of representatives on that committee. We were invited by the provincial government, and we're very active on it.
A third issue, which is increasingly complex, is the approach for consulting aboriginals. There are various court decisions that say that we have to consult aboriginals very early in projects. As a federal family, we need to develop a coordinated approach and the policies that go with it. If we don't work diligently, this could be a showstopper.
Finally, you probably know that our legislation, the Canadian Environmental Assessment Act, is due for an automatic review in 2010. I would like to think that the committee that is going to be managing this review will be interested in the experience we've had, particularly with oil sands.
I'll stop here, and I will be pleased to answer your questions later with my colleagues. Thank you very much. Merci beaucoup.