1. STRATEGIC ENVIRONMENTAL ASSESSMENT OCTOBER 22, 2012

2. OVERVIEW Strategic Environmental Assessment (Strategic EA): Introduction Cabinet Directive on Strategic EA Strategic EAs under Cabinet Directive Strategic EA: Farm Income Protection Act Legislating Strategic EA

3. STRATEGIC ENVIRONMENTAL ASSESSMENT: DEFINITIONS “The systematic and comprehensive process of evaluating the environmental effects of a policy, plan or program and its alternatives” Cabinet Directive p. 13 “Seeks to incorporate environmental considerations into the development of public policies and strategic decisions” Cabinet Directive p. 2

4. STRATEGIC ENVIRONMENTAL ASSESSMENT: DEFINITIONS “The evaluation of likely environmental, including health effects, which comprises determination of the scope of an environmental report and its preparation, carrying-out of public participation and consultations, and taking into account of the environmental report and results of public participation and consultations in a plan or programme” Strategic EA Protocol Art. 2 Trend toward including economic and social, as well as environmental, considerations

5. STRATEGIC ENVIRONMENTAL ASSESSMENT Strategic EAs can include assessment of: An industry sector, region, policy, plan, program (oil sands in northern Alberta) First proposed project to introduce new technology in region (tidal energy) International agreements (free trade) Identified environmental/sustainable development challenge (energy policy) Respond to policy gap in project EA

6. STRATEGIC EA PRINCIPLES Integrated Sustainability-led Focused Accountable Participative Iterative Identify future outcomes Consider alternatives

7. STRATEGIC EA LEGAL, POLICY FRAMEWORKS Strategic EA Protocol Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals (federal) Farm Income Protection Act CEAA 2012 ss. 73, 74 Regional Studies Provinces lack SEA laws/policies (note Ontario Environmental Bill of rights) European Union 2001 SEA Directive

8. STRATEGIC EA PROTOCOL Protocol to Espoo Convention Adopted 2003, entered into force 2010 Canada not signatory Requires Parties to evaluate environmental consequences of official draft plans and programs Provides for public participation in government decision-making in numerous development sectors

9. STRATEGIC EA PROTOCOL Public has the right to know about plans and programs, comment, have comments taken into account, be told of final decision and why it was taken Parties requested to inform each other about plans/programs having significant transboundary environmental effects If such effects, developing Party has notification obligation and affected public has comment rights

10. CABINET DIRECTIVE ON STRATEGIC EA Strategic EA originally included in 1984 EARP Guidelines Order Cabinet Directive issued in 1990 to complement CEAA project EA Amended 1999, 2004 Not legally binding but issuance by Privy Council Office carries weight

11. CABINET DIRECTIVE ON STRATEGIC EA “Strong commitment to sustainable development” Ministers expect a strategic EA whenever a proposal: –“may result in important environmental effects” –“is submitted to an individual Minister or Cabinet for approval” What does “expect” mean? “Important” vs. “Significant”?

12. CABINET DIRECTIVE ON STRATEGIC EA Ministers also expect strategic EA to consider: –Scope and nature of likely environmental effects –Need for mitigation –Likely importance of environmental effects Strategic EA to contribute to development of policies, programs, plans on “an equal basis with economic and social analysis”

13. CABINET DIRECTIVE ON STRATEGIC EA “Level of effort” to be “commensurate with level of anticipated environmental effects” Environmental analysis to be integrated into each option Use “existing mechanisms” to involve public, “as appropriate” Prepare “public statement of environmental effects” when “detailed assessment” conducted

14. CABINET DIRECTIVE GUIDELINES Benefits of applying Cabinet Directive: Optimize positive, minimize or mitigate negative effects Consider potential cumulative effects Implement Federal Sustainable Development Strategy Save time and money (liability for clean- ups, other unforeseen concerns) Streamline project-level assessment Promote accountability

15. CABINET DIRECTIVE PROCESS Determine applicability Conduct preliminary scan Analyze environmental effects, including public and stakeholder concerns Document and report

16. STRATEGIC EA FARM INCOME PROTECTION ACT 1991 S.4.(2) “Any program established under FIPA should encourage long-term environmental and economic stability” S.5.(2) An agreement with respect to any program shall,... (b) require an environmental assessment of the program to be conducted within two years... of the agreement and every five years thereafter,”

17. STRATEGIC EA FARM INCOME PROTECTION ACT 1991 Strategic EAs conduced for following programs: –Gross Revenue Insurance Program –Federal-Provincial Crop Insurance Program –Net Income Stabilization Account –Western Grain Transportation Act Amendments –Branch Rail Line Abandonment in Western Canada

18. STRATEGIC EA FARM INCOME PROTECTION ACT 1991 Key difference with Cabinet Directive Strategic EAs conducted after introduction of program Benefits –Cabinet confidentiality not an issue –Better data on environmental effects –Full reports public accessible Key insight: most policies, programs, plans are iterative, annual or cyclical

19. CABINET DIRECTIVE EFFECTIVENESS “Cabinet Directive does little more than communicate a general expectation to identify and consider environmental consequences of major decisions at the federal level on par with social and economic factors” Doelle p. 195

20. 2004 AUDIT ENVIRONMENT COMMISSIONER Level of commitment to and compliance with Cabinet Directive was low Few strategic EAs conducted Completeness varied Tracking was inadequate Insufficient commitment by management No central responsibility for compliance and quality control

21. 2004 AUDIT ENVIRONMENT COMMISSIONER Limited integration of results into decision-making Few Strategic EAs made available to public Even fewer involved the public in Strategic EA process

22. PUBLIC STATEMENTS UNDER CABINET DIRECTIVE CEA Agency website includes hundreds of public statements produced by 7 federal departments (e.g., CIDA, Environment, Finance, Parks Canada) since 2004 At least some Public Statements indicate public has been consulted Data and analysis remain confidential Marmot Basin Public Statement

23. STRATEGIC EA OF BUDGETS Green Budget Coalition recommended that selected fiscal measures in 2003 federal budget undergo Strategic EA Avoid Cabinet and budget confidentiality issues by undertaking SEAs after budget released Met with Clerk of Privy Council (Alex Himmelfarb), who was enthusiastic

24. STRATEGIC EA OF BUDGETS Recent budgets include modest public statements of environmental effects for specific budget provisions Budget 2011 –Extension of 15% Mineral Exploration Tax Credit for flow-through shares investors –Expansion of accelerated capital cost allowance Class 43.2 to include equipment that generates electricity using waste heat –Extending qualifying environmental trust rules to pipelines

25. OTHER STRATEGIC EAS Tidal Energy in Bay of Fundy Free Trade Agreements (e.g., NAFTA) Nuclear Fuel Waste Management and Disposal Concept Panel Review

26. LEGISLATING STRATEGIC EA House of Commons Environment Committee June 2003 report Recommended that Privy Council Office develop legislation establishing a legal framework for Strategic EA Government response was to refer Strategic EA issue to CEAA Regulatory Advisory Committee Report completed but never tabled (RAC in limbo)