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Table 5: Horizontal Initiatives


Name of Horizontal Initiative: Improving the Performance of the Regulatory System for Major Natural Resource Projects

Name of Lead Department(s): Natural Resources Canada

Lead Department Program Activity: Internal Services – Public Policy Services – Major Projects Management Office

Start Date of the Horizontal Initiative: October 1, 2007

End Date of the Horizontal Initiative: March 31, 2012

Total Federal Funding Allocation (start to end date): $150 million over 5 years

Description of the Horizontal Initiative (including funding agreement):

To respond to the recent growth in the number of major resource projects and move forward on commitments to create a more accountable, predictable and timely regulatory review process, the Government has allocated $150 million over five years to establish the Major Projects Management Office (MPMO) within Natural Resources Canada (NRCan) and to increase the scientific and technical capacity of key regulatory departments and agencies.

The MPMO has been created to provide a single point of entry into the federal regulatory system for all stakeholders and to provide overarching management of the federal regulatory process for major natural resource projects. New capacity funding provided through this initiative will ensure key regulatory departments and agencies are positioned to respond to the recent growth in the number of new major resource projects and will better enable departments to meet their legal responsibilities for Aboriginal Crown consultation associated with their regulatory decisions relative to major resource projects.

This initiative will provide the oversight and capacity needed to address the issues affecting the performance of the federal regulatory system. In short, it will lay the foundation for a more predictable and accountable regulatory system that will improve the competitiveness of Canada's resource industries while ensuring careful consideration of environmental standards and technical requirements.

Shared Outcome(s):

Among the more tangible improvements resulting from this initiative will be the timeliness and predictability of the regulatory process. The environmental review and permitting of major resource projects is targeted to be reduced from upwards of four years to an average of about two years.

Other important outcomes from this proposal include:

  • a more accountable, predictable and timely regulatory review process that will facilitate investment and planning decisions and improve the competitiveness of Canada's resources industries;
  • high quality assessments of the environmental and social effects of resource development so that federal decisions in relation to projects safeguard the environment and promote sustainability; and
  • Aboriginal consultation responsibilities will be fulfilled in a more consistent, adequate and meaningful manner.

Governance Structure(s):

The Cabinet Directive on Improving the Performance of the Regulatory System for Major Resource Projects has established a new governance framework for federal government departments and agencies to facilitate the effective, coordinated, and concurrent discharge of their statutory duties, functions and obligations related to the regulation of major resource projects. It encourages federal government departments to work together to identify areas where the consistency, efficiency and effectiveness of the federal regulatory system can be improved and to develop and implement system improvements. These activities are intended to improve the accountability, transparency, timeliness and predictability of the federal regulatory system for major natural resource projects.

The Minister of Natural Resources is the lead Minister for the Initiative. In collaboration with her counterparts in other regulatory departments, the Minister of Natural Resources will report biannually to Cabinet on progress made towards achieving the objectives of the initiative, and will report annually to Parliament and the public through NRCan's annual reporting requirements.

A Major Projects Deputy Ministers' Committee has been created to serve as the governance body for the implementation of the initiative. This Committee will provide direction for the resolution of project-specific issues and oversee the application of the Cabinet Directive. Membership on this committee includes the Deputy Minister of NRCan (Chair), the Deputy Minister of Fisheries and Oceans Canada, the Deputy Minister of the Environment, the Deputy Minister of Indian Affairs and Northern Development, the Deputy Minister of Transport, the Deputy Minister of Justices, the Deputy Minister of Intergovernmental Affairs, Privy Council Office, the Associate Deputy Minister of Industry, the President of the Canadian Environmental Assessment Agency, the President of the Canadian Nuclear Safety Commission and the Chair of the National Energy Board.

The MPMO has been established to provide overarching management of the federal regulatory system for major resource projects. It will achieve this by working with the federal regulatory departments / agencies to identify areas where the consistency, efficiency and effectiveness of the federal regulatory process can be improved and work with these departments and agencies to implement change. The MPMO will also provide support to the Major Projects Deputy Ministers' Committee, through the provision of data, analysis and other information.

To ensure effective communication with federal regulatory departments on key issues and to facilitate collaboration and cooperation, interdepartmental working groups have been established at the ADM, DG and working levels.

Federal Partner Program Activity (PA) Names of Programs for Federal Partners Total Allocation (from Start to End Date)[1] Planned Spending for
2008-09
Actual Spending for
2008-09
Expected Results for
2008-09
Results Achieved in
2008-09
Natural Resources Canada
Internal Services Major Projects Management Office $18,500,000 $5,500,000 $3,797,559

Lead the development and implementation of a consistent, whole of government approach to Aboriginal consultations;

Ensure the environmental assessment and regulatory review processes for major resource projects are integrated and well coordinated through the development of Project Agreements;

Increase the transparency and accountability of the federal regulatory review process through increased oversight and regular monitoring, tracking and reporting on progress against commitments in Project Agreements; and,

Identify and implement process improvements to continue to improve the efficiency and effectiveness of the federal regulatory system for major resource projects.

Following its first full year of operations, the MPMO is providing overarching management of the federal regulatory review process for 41 major natural resource projects;

Service standards have been established with target time lines for each major project review, reflected in interdepartmental project agreements provided to project proponents, and made available to the public;

Performance of federal reviews for projects under the MPMO initiative is being publicly tracked and monitored to ensure greater transparency and accountability;

The initial building blocks, including improved governance, have been put in place for a whole-of-government approach to Aboriginal consultations for major resource projects;

Strong project management systems and governance mechanisms have been put in place to improve integration of federal decision-making and to improve the predictability and accountability of the federal regulatory review process;

Chaired monthly meetings of the Major Projects Deputy Ministers' Committee and supporting ADM and DG Committees to ensure timely resolution of project related issues and to advance new policies, procedures and analysis to further improve the performance of the federal regulatory system for major resource projects;

Held regular meetings with stakeholders (Industry associations, project proponents, Environmental groups and Aboriginal groups) to ensure that the implementation of the MPMO approach was meeting its stated objectives and the needs of stakeholders;

Led interdepartmental analysis and research to identify and implement further improvements to the regulatory review process;

As co-chair of the federal / provincial Regulatory Performance Improvement Working Group, worked closely with provincial energy and mining ministries to identify opportunities to improve integration of federal and provincial regulatory review processes; and,

New guidelines were developed to improve process clarity, promote early engagement between project proponents and regulators, and ensure a coordinated federal approach throughout the entire review process.

Total NRCan $18,500,000 $5,500,000 $3,797,559    
Canadian Environmental Assessment Agency
Environmental Assessment Support   $31,823,000 $7,955,750  

Support a whole-of-government approach to addressing strategic and project-specific environmental assessment (EA) issues, including supporting implementation of the MPMO initiative;

Manage the federal environmental assessment process and related Aboriginal consultation activities for most major resource projects; and,

Develop and deliver training and guidance in support of the initiative.

Worked in collaboration with other organizations involved in the MPMO initiative to strengthen coordination of EAs federally (such as the coordination of review panels), to integrate EA into the federal regulatory process more effectively and, in support of a "one-window" approach, to integrate Aboriginal consultation in EA process for major resource projects;

Led the federal environmental assessment process for major natural resource projects (with the exception of CNSC and NEB screening and comprehensive studies), and coordinated aboriginal engagement and consultation activities with the EA of these projects as mandated under the Cabinet Directive on Improving the Performance of the Regulatory System for Major Resource Projects and its Memorandum of Understanding;

Development of a tracking and reporting tool to improve the pre-EA and EA phases of the regulatory process is well under way and will be completed in 2009-2010;

Delivery of internal training and guidance in support of matters relevant to the MPMO initiative to Agency staff (existing and new) in NCR and in 6 regional offices; and,

Adaptation of training package for other organizations involved in the MPMO initiative is under way, for delivery in 2009/10 on a cost recovery basis.

Environmental Assessment Development   $3,512,000 $878,000  

Support the implementation of this horizontal initiative focused on achieving improvements in the process, capacity, and associated Aboriginal consultations with respect to major resource projects;

Contribute to the ongoing development of policies, procedures and guidance materials for enhancing coordination and collaboration on high-quality, timely and predictable environmental assessment within the regulatory approval process; and,

Contribute to the development of policies and procedures in support of the integration of Aboriginal Crown consultations in the environmental assessment and regulatory approval process.

Developed jointly with other organizations involved in the MPMO initiative procedural documents and templates to improve process clarity, promote early engagement between project proponents and regulators, and ensure a coordinated federal approach throughout the entire review process;

Established jointly with other organizations involved in the MPMO initiative policies, procedures and guidance materials for enhancing coordination and collaboration on high-quality, timely and predictable environmental assessment within the regulatory approval process, such as procedural guidance on comprehensive studies and multijurisdictional screenings, now in final review and approval; and,

Ongoing development, jointly with other organizations involved in the MPMO initiative of new policies, processes, procedures and guidance materials on the integration of Aboriginal Crown consultations in the environmental assessment and regulatory approval process.

Internal Support   $8,665,000 $2,166,250  

Core support services to support program delivery

Key national staffing processes completed; and,

New staff successfully integrated into the organization.

Total CEAA $44,000,000 $11,000,000      
Environment Canada
Biodiversity is conserved and protected Wildlife program $2,352,117 $463,919  

The efficiency and effectiveness of Canadian Wildlife Services' (CWS) regulatory role in major resource projects are improved; and,

Policies and guidance support CWS' involvement in the EA process for major resource projects.

The efficiency of CWS' permitting responsibilities for major resource projects is improved through the initial work on developing a national permitting system; and

CWS' involvement in the EA process for major natural resource projects is supported by processes, policies, and guidance.

Water is clean, safe and secure Aquatic ecosystems are conserved and protected $614,683 $123,281  

EC's responsibilities associated with the International River Improvements Act are supported by standard operating procedures and policies for permitting.

EC's responsibilities in the EA process associated with the International River Improvements Act for major natural resource projects are supported by guidance, processes, and issues reviews.

Canadians adopt approaches that ensure the sustainable use and management of natural capital and working landscapes Environmental assessment and ecological monitoring $4,533,659 $869,655  

Interdepartmental participation in establishing and implementing the MPMO initiative is supported;

Departmental EA processes are streamlined and the efficiency and effectiveness of the process in support of the MPMO initiative are increased;

Streamlining priorities are validated and supported within the department;

Regional offices are supported in the delivery of streamlining priorities for major resource projects; and,

A departmental governance structure is established to coordinate EC's involvement in the MPMO initiative.

MPMO's governance structure and implementation are supported through participation in the Major Projects Deputy Ministers' Committee and associated committees and working groups;

Identified and validated streamlining priorities through a completed comprehensive analysis and modeling of departmental EA processes and departmental workshops;

Regional offices are supported in the delivery of streamlining priorities through the development of a common understanding of expectations and responsibilities with respect to MPMO and EC's responsibilities associated with the MPMO initiative;

Established an internal governance structure to manage and coordinate the implementation of the MPMO initiative; and

EC supported the accountability, transparency, timeliness and predictability of the regulatory review process through participating in the development and implementation of project agreements.

Risks to Canadians, their health and their environment posed by toxic and other harmful substances are reduced Risk management/ Risk mitigation and implementation $2,723,834 $561,561  

Decisions on major resource projects are reached in a timely fashion while maintaining or enhancing protection of the environment;

EC's involvement in the EA process for major natural resource projects is supported by guidance; and,

EC provides input into the federal EA process through the provision of expertise.

Decisions on major resource projects are supported by review of regulatory processes for amendments of the Metal Mining Effluents Regulations for tailings impoundment areas and Ocean Disposal permitting;

Timely EA decisions are supported by the development of replacement class screenings for Ocean Disposal permits; and,

EC's involvement in the EA process for major natural resource projects is supported by the development of guidance documents and review of current practices.

Relations with other governments and partners are effectively managed in support of environmental priorities Inter-governmental and stakeholder relations $596,818 $121,742  

Regular, timely and strategic advice is provided on consulting and engaging Aboriginal groups throughout the regulatory process for natural resource projects; and,

EC contributes to and participates in the development of an interdepartmental approach to Aboriginal consultation.

Provided timely advice and support to regional offices on Aboriginal consultation, including regional training sessions; and,

EC supported the interdepartmental approach to Aboriginal consultation through its active involvement in developing a whole of government approach to addressing Aboriginal consultation for major resource projects.

Internal Services Core Support Services $1,429,648 $359,842  

Timely legal advice and support on delivery of national EA program involvement in major resource projects is provided; and,

Core support services are provided to support program delivery.

Supported delivery of national EA program by providing timely legal advice and support; and,

Core support services are provided to support program delivery.

Total EC $12,500,000 $2,500,000      
Transport Canada
Transportation Safety and Security   $3,365,555 $1,627,704 $506,632

TC to participate in the various governance mechanisms established for the MPMO initiative;

TC (headquarters and regional staff) to participate in working groups to assist with the creation and approval of key documents, processes and tracking systems required to operationalize the MPMO initiative; and,

TC to improve its capacity to complete technical reviews required under the Navigable Waters Protection Program (NWPP).

TC participated in various governance mechanisms established for the MPMO initiative or that are aiding the MPMO initiative including the Director General, Assistant Deputy Minister and Deputy Minister Committees and the Environmental Assessment Project Committee (EAPC);

TC (headquarters and regional staff) participated in interdepartmental working groups to assist with the creation and approval of key documents, processes and tracking systems required to operationalize the MPMO initiative;

TC maintained a headquarters MPMO committee in order to ensure new MPMO processes are applied internally in as efficient a manner as possible and that advice to the Associate Deputy Minister is provided in a timely and coordinated manner; and,

Positions have been created in the NWPP in order to improve TC's capacity to complete technical reviews required under the Navigable Waters Protection Act for major resource projects.

Transportation Policy Development and Infrastructure Programs   $1,813,090 $440,760 $0

Note: Actual spending transferred from this Program Activity Area to the Sustainable Transportation Development and the Environment program.

 
Sustainable Transportation Development and the Environment   $5,413,592 $2,632,667 $1,617,642

TC to participate in the various governance mechanisms established for the Major Projects Management Office initiative;

TC (headquarters and regional staff) to participate in the creation and approval of key documents and processes required to operationalize the MPMO initiative;

TC to work on departmental processes to ensure new MPMO processes are applied in an efficient manner internally; and,

TC to improve its capacity to complete technical reviews of environmental assessments across the country.

TC participated in various governance mechanisms established for the MPMO initiative or that are aiding the MPMO initiative including the Director General, Assistant Deputy Minister and Deputy Minister Committees and the Environmental Assessment Project Committee (EAPC);

TC (headquarters and regional staff) participated in working groups to assist with the creation and approval of key documents, processes and tracking systems required to operationalize the MPMO initiative;

TC maintained a headquarters MPMO committee in order to ensure new MPMO processes are applied internally in as efficient a manner as possible and that advice to be provided to the Associate Deputy Minister is provided in a timely and coordinated manner;

TC HQ held monthly teleconferences with regional staff to ensure smooth implementation of the initiative;

Funding received was used in order to increase capacity for technical review of environmental assessments (EAs) and other key aspects of carrying out EAs for major resource projects; and,

Involvement in Interdepartmental Working Group on Aboriginal Consultation that developed a whole of government approach to improve the Aboriginal consultation process for major resource projects.

Internal Services   $3,407,763 $1,330,869 $359,882

TC to hire lawyers to increase capacity to deal with legal issues associated with the regulatory review process for major resource projects across the country.

TC has engaged their legal services staff for review of various MPMO documents; and,

Funding received will be used to hire lawyers to increase capacity to deal with legal issues associated with the regulatory process in 2009/2010.

Total TC $17,500,000 $6,032,000 $2,484,156    
Fisheries and Oceans Canada
Habitat Management Habitat Management Program $34,041,800 $6,808,360  

Continued participation in the governance mechanism, i.e., Major Projects Deputy Ministers' Committee and other supporting governance structures;

Continued provision of DFO support to operationalize the initiative and working processes through participation on working groups;

Continued staffing of new positions;

Develop departmental guidance and procedures to operationalize the procedures prepared by MPMO and interdepartmental working groups; and,

Provide input to Project Agreements based upon DFO's role and responsibilities.

Participated in the governance mechanism, i.e., Major Projects Deputy Ministers' Committee and other supporting governance structures;

Input to MPMO undertakings to operationalize the initiative;

Input to MPMO analyses of legislative/regulatory issues and development of Strategic Framework.

Staffed most new positions. Staffed national Aboriginal Consultation Advisor;

Undertook the following to operationalize the initiative:

  • prepared DFO process maps to illustrate how MPMO procedures may be integrated into internal processes and identified process improvement, where needed;

  • evaluated existing decision authority protocols for regulatory and EA processes to identify appropriate adjustments to ensure timely decision making processes;

  • clarified Lines of Communication to illustrate the points of communication between DFO and other key parties involved in the initiative;

  • drafted DFO guide to the Project Agreement Phase based upon MPMO procedures to provide clarity to staff on the development of the Project Agreements;

  • developed internal communications on initiative and shared these with departmental staff, including an article in the DFO "Oceans" newsletter; and,

Participated in the development of numerous Project Agreements.

Legal Services Legal Services $958,200 $191,640  

Provide legal advice and support of DFO's continued participation in the governance mechanism, i.e., Major Projects Deputy Ministers' Committee and other supporting governance structures;

Provide legal advice and support of DFO's continued provision of support to operationalize the initiative and working processes through participation on working groups;

Provide legal advice and support of the development of DFO guidance and procedures to operationalize the procedures prepared by MPMO and interdepartmental working groups;

Provide legal advice and support to DFO's provision of input to Project Agreements based upon DFO's role and responsibilities; and

Support of the MPMO initiative through participation on the Legal Services Working Group.

Provided legal advice and support of DFO's participation in the governance mechanism, i.e., Major Projects Deputy Ministers' Committee and other supporting governance structures;

Provided legal advice and support of DFO's input to MPMO to operationalize the initiative;

Provided legal advice and support of DFO's input to MPMO analyses of legislative/regulatory issues and development of Strategic Framework;

Provided legal advice and support of various DFO work products including departmental guidance and procedures;

Provided legal advice and support to DFO departmental officials through monthly MPMO meetings;

Provided legal advice and support in of DFO's participation in the development of numerous Project Agreements; and

Weekly participation in the MPMO Legal Services Working Group and some half-day meetings.

Total DFO $35,000,000 $7,000,000      
Indian and Northern Affairs Canada
Northern Land and Resources Northern Affairs Organization $6,600,000 $1,320,000 $1,248,000

Facilitating environmental assessments and regulatory authorization processes;

Addressing Aboriginal and community consultation and capacity concerns;

Establishing and working with independent monitoring authorities;

Recommending mitigations to minimize environmental impacts;

Coordinating the department's participation in regulatory public hearings;

To assist NWT land and water, environmental assessment and screening boards in improving, reviewing and/or developing operational or procedural processes required to undertake the review of major projects, excluding the MGP, or for specific activities related to individual unplanned major projects not included in core Board funding; and,

Successfully support INAC in its operational s.35 Crown Consultation activities.

INAC participation in Selwyn Resources, Taltson Hydroelectric Expansion Project, Uravan Minerals and Bayswater Uranium environmental assessments, scoping hearings, technical meetings, community and public hearings, and site visits;

INAC participation in the Cantung water licence renewal technical meetings, community, public hearings and site visits;

Response to EA information requests, comment on EA Terms of Reference and Work Plans for the above projects;

Completed Crown Consultation Analyses for the above EAs and regulatory projects, conducted and reported on any required consultation;

Ministerial responses to the Reports of Environmental Assessment, including coordination with other Responsible Ministers including coordination with other Responsible Ministers; and,

Board Relations Secretariat provided funding on a proposal driven basis, to several boards with the objective to provide increased board capacity for regulatory improvement.

Responsible Federal Stewardship Lands and Economic Development- Environmental Management $3,400,000 $680,000 $62,000

Ensure the department has the capacity to meet its environmental obligations in relation to major resource projects; and

Increase First Nations and Inuit communities' capacity to participate in the regulatory review process for major resource projects.

Participated in the review of service standards, performance measures and guidelines development;

Reviewed Project Agreements (draft and final);

Provided the initial building blocks, including hiring of one FTE and initiating the hiring process for three additional FTE positions (2 in the western regions (BC and AB) and 1 HQ); and,

Provided the initial building blocks, including developing a program management regime (Departmental capacity and First Nations and Inuit communities capacity dollars) and supporting the development of the new internal MPMO review process.

Total INAC $10,000,000 $2,000,000 $1,310,000    
Total All Departments          

Comments on Variances:

[1] For many departments, the total funding allocated through this initiative does not correspond to total funding allocated to specific program activities identified above due to changes in the Program Activity Architecture of these departments.

Contact information:

Mr. Philip Jennings
Assistant Deputy Minister
Major Projects Management Office
Natural Resources Canada
155 Queen Street, 2nd Floor
Ottawa, ON  K1P 6L1
Telephone: 613 944-6171
Email: pjenning@nrcan.gc.ca