Responsible Resource Development April 17, 2012

Context Government focussed on responsible development of Canada’s natural resources to create jobs and growth Over next 10 years, over 500 resource projects worth more than $500 billion could come on stream Major projects subject to long delays and complex, duplicative regulatory system Effective review process needed to deliver economic benefits while maintaining high environmental standards Global opportunity to capitalize on resource development in period of global economic uncertainty Dynamic emerging Asian markets must replace declining traditional markets

System-wide challenges require a comprehensive solution Legislation, regulation and policy governing major project reviews must operate as a cohesive system Challenges are well known: – Lack of timeliness, predictability and process certainty – Inconsistent approaches to Aboriginal consultation – Diffuse accountability – Duplication of federal and provincial processes – Insufficient follow-up and enforcement Comprehensive approach required to address system-wide challenges

Why Changing the System Makes Sense: Small projects Small, routine projects that pose little or no risk to the environment get caught up in regulatory net Examples: – Installing a stand-by generator – Replacing a culvert – Paving a parking lot

Why Changing the System Makes Sense: Major Projects Delays in assessing Major projects cost jobs and growth Examples: – Enbridge pipeline: 2 year federal delay after National Energy Board approval – Potash export terminal: 10 month federal delay in starting the review

Actions building toward a clear goal Economic Action Plan 2012 allocates $165 million over two years to support responsible resource development, including strengthening tanker safety, pipeline safety and Aboriginal consultations Goal is federal-provincial cooperation…moving towards ‘one project, one review’ process within a clearly defined period Major Projects Management Office (2007 ) Accelerating Infrastructur e (2009) Responsible Resource Development (Budget 2012) Action Plan to Improve Northern Regulatory Regimes (2010) Budget Implementation Act (2010) Next Step One project, one review process Major Projects Management Office (2007 ) Accelerating Infrastructur e (2009) Budget Implementation Act (2010) Major Projects Management Office (2007 ) Accelerating Infrastructur e (2009) Action Plan to Improve Northern Regulatory Regimes (2010) Budget Implementation Act (2010) Major Projects Management Office (2007 ) Accelerating Infrastructur e (2009) One project, one review process Action Plan to Improve Northern Regulatory Regimes (2010) Budget Implementation Act (2010) Major Projects Management Office (2007 ) Accelerating Infrastructur e (2009) Next Step One project, one review process Action Plan to Improve Northern Regulatory Regimes (2010) Budget Implementation Act (2010) Major Projects Management Office (2007 ) Accelerating Infrastructur e (2009)

Objectives of the Plan for Responsible Resource Development More predictable and timely reviews Reduce duplication for project reviews Strengthen environmental protection Enhance consultations with Aboriginal groups

Make Reviews More Predictable and Timely  Consolidate responsibility for EAs with CEAA, NEB and CNSC  Fixed beginning-to-end timelines  Panel Reviews: 24 months  NEB Reviews: 18 months  Standard EAs: 12 months  Legally-binding timelines for permitting processes  Clearly defined information requirements  Enhance authorities to ensure timelines are met  Clarify accountability for decision-making on major pipeline projects

Reduce Duplication for Project Reviews Substitution or equivalency with provincial processes as long as they meet the requirements of the Canadian Environmental Assessment Act Enable equivalency of Fisheries Act regulations with provincial laws or regulations that meet or exceed federal standards Make it possible for a province or the NEB or CNSC to issue authorizations under the Fisheries Act No longer require joint review panels for projects regulated by the NEB and the CNSC

Strengthen Environmental Protection Focus EAs on major projects Strengthen enforcement and compliance provisions Authorize financial penalties New funding to strengthen pipeline and marine safety Expand use of Regional EAs

Enhancing Consultations with Aboriginal Peoples Better integrate Aboriginal consultations into the review process Provide funding to support consultations with Aboriginal peoples Designate a lead Crown consultation coordinator for each project Establish consultation agreements and protocols with provinces/territories and Aboriginal groups Continue to ensure the Crown fulfills its legal obligations

Further details on the Plan for Responsible Resource Development available at: