Madam Chair, I would like to focus my comments on environmental assessment and the work of the Canadian Environmental Assessment Agency. This, of course, is a key part of the environment portfolio and a very important part of what the federal government does. The funding being considered as part of the main estimates is necessary for the continued application of the Canadian Environmental Assessment Act, and preparation for the implementation of the proposals in Bill C-38 should that legislation receive royal assent.
Environmental assessment sits at a crucial intersection between the environment and the economy. Environmental assessment is a way to ensure responsible resource development. It allows the Government of Canada to assess and mitigate the environmental impacts of projects that represent billions of dollars of potential investment for Canada.
While founded upon the best of intentions, the current federal process is overly complex and dated. Accountability is spread across government, and there have been inconsistent application and delays as a result. This situation actually harms the economy. Project proponents face unnecessary costs. Investment decisions are put off. Jobs for Canadians are put on hold. The argument can be made that this actually harms the environment, too.
Limited government resources are consumed by unnecessary process steps and the need to assess small projects that pose minimal risk to the environment. There are also few enforcement provisions. The current law is based on concepts and approaches from the late 1980s. It is time to build on our record and move forward. It is time to modernize federal environmental assessment.
A responsible resource development plan sets out a path to modernization that relies on four pillars: one, making reviews more predictable and timely; two, reducing duplication; three, strengthening environmental protection; and four, enhancing consultation with aboriginal peoples. The new Canadian environmental assessment act supports all four pillars through responsible and certain timelines, better integration of federal and provincial responsibilities to avoid duplication, fair and consistent enforcement measures to ensure the environment is protected, and an explicit requirement to ensure that changes to the environment that affect aboriginal peoples are assessed and mitigated.
Environmental assessment is receiving much attention, inside and outside the House, as part of the debate on Bill C-38, the jobs, growth and long-term prosperity act. Let me take this opportunity to set the record straight on some of the myths that have unfortunately dominated this debate.
The first myth is that the Canadian Environmental Assessment Agency budget has been cut by over 40%. Perhaps members have heard that. The opposite is true. At a time of fiscal restraint, the agency's capacity has been protected. Its budget is in fact increasing by 5% as a result of budget 2012. Additional funds are being provided for consultations with aboriginal peoples. Fundamentally, the provision of funding to the agency will ensure that it continues to provide Canadians with high quality environmental assessments.
The second myth permeating this debate is that environmental assessment is somehow being gutted by Bill C-38. A brief comparison between the current law and the bill is in order to explain this point. As I just noted, the government is providing additional funding to the Canadian Environmental Assessment Agency because we expect it to do more, not less.
For an environmental assessment to be required under the current act, there has to be a federal decision associated with the project. No decision means no environmental assessment, even though there might be serious effects on matters within federal jurisdiction. The bill proposes to address this gap. An environmental assessment may be required when there are adverse effects within federal jurisdiction and the project is on the project list or specifically designated by the minister. A federal decision about the project is not a prerequisite.
When there is a federal decision associated with the project undergoing an environmental assessment, the environmental effects of that decision will be assessed. This is a requirement today. This is a requirement in the updated act.
The current law requires follow-up programs for major projects. These follow-up programs verify if mitigation measures are protecting the environment. Unfortunately, application of this requirement has been fragmented across government. Follow-up information is not being put to the best use possible.
The bill proposes to fix this problem. Follow-up programs would be mandatory after all environmental assessments. The results would flow to one of three responsible authorities: the Canadian Environmental Assessment Agency, the Canadian Nuclear Safety Commission and the National Energy Board. These bodies would use this information to help manage unanticipated environmental effects and improve the practice of environmental assessment.
A final area of comparison relates to enforcement. The current law has no enforcement provisions. This is a very significant shortcoming. As parliamentarians we expect bills to be enforced when they become law. Bill C-38 proposes to make this the case for environmental assessment through several measures.
The act would prohibit a proponent from proceeding with a project identified in regulations unless it underwent an environmental assessment or the agency decided that one is not required. At the end of an environmental assessment, proponents would have to comply with the conditions set out in a decision statement. Federal inspectors for the first time would have the authority to examine whether conditions in an environmental assessment decision statement were met. Finally, there are proposed penalties for violations that range from $100,000 to $400,000.
Bill C-38 proposes to close gaps in what projects can be subjected to a federal environmental assessment. It would strengthen how follow-up information is managed and used. New enforcement powers would be provided. All of this adds up to a strengthening of environmental assessment in a significant way.
Now I would like to turn to the third myth. Some are saying that the government has not consulted nor heard from Canadians on how to improve environmental assessment. There has been a wealth of input from various sources under both this government and the previous government. Let me run through some of the highlights.
In 2003, the Standing Committee on Environment and Sustainable Development issued a report entitled “Beyond Bill C-9”. Among other things, the standing committee recommended creating a system of environmental assessment permits. Bill C-38 proposes to do so through the enforceable environmental assessment decision statement.
The standing committee also recommended that the agency look into the use of regional environmental assessments as a means to deal with cumulative effects of multiple projects and activities. This examination of the potential of regional studies was done in cooperation with provinces and territories through a task group of the Canadian Council of Ministers of the Environment in 2008-09. The result can be seen in proposed provisions for regional studies.
In 2004, the government appointed the external advisory committee on smart regulation. Environmental assessment was the issue that generated the most complaints from stakeholders during this study of the broader federal regulatory system.
The smart regulation committee recommended the creation of a single federal agency for environmental assessment, better integration of federal-provincial assessments, timelines and more emphasis on follow-up programs. Proposals consistent with the spirit of these recommendations are all found in Bill C-38.
In 2009, the Canadian Council of Ministers of the Environment also issued a discussion paper and held consultations on the issue of one project, one review. The outcome is reflected in the bill's proposal for substitution and equivalency.
These new tools allow provincial environmental assessments to substitute for, or be recognized as equivalent to, a federal review as long as the substance of requirements of the act are met.
The Standing Committee on Environment and Sustainable Development members, many of whom are in the House tonight, reviewed the Canadian Environmental Assessment Act this past year. The majority of the committee's recommendations have found their way into the bill, including the use of a project list to avoid requiring assessments of small projects, such as a blueberry washing facility.
This project list approach includes a safety net authority for the Minister of the Environment to require the environmental assessment of a project not identified in the regulations. This power could be used in unique circumstances where a relatively routine type of project is of concern because of its proposed location, for example, in a sensitive environmental setting.
Two standing committee reports, a public consultation by federal and provincial governments and a blue ribbon committee have all contributed to the development of this important bill.
We have listened to what is being said about environmental assessment over the past decade. We are moving forward to protect the environment while promoting jobs, growth and long-term prosperity for all Canadians.
