This week, the federal government announced the "Responsible Resource Development" plan as part of its Economic Action Plan 2012. The plan is intended to create a more predictable and timely federal environmental assessment ("EA") process as well as reduce duplication among federal agencies and between the federal and provincial EA regimes. The federal government has advanced an ambitious slate of changes that will devolve significant powers to the provinces and restrict various aspects of the current federal EA process. As well, the federal government pledges that its changes will strengthen environmental protection and enhance Aboriginal consultation.

Key aspects of the proposed plan include:

Predictable and Timely Environmental Review

  • Impose a 45-day time frame to establish any federal EA requirement
  • "One project, one review": substitute federal EA with equivalent provincial process
  • Establish two streams of federal EA: major and standard (eliminating federal reviews of less significant projects)
  • Limit federal authorities responsible for EA processes to Canadian Environmental Assessment Agency, National Energy Board, Canadian Nuclear Safety Commission
  • Establish binding timelines for federal government EA reviews: 12 months for standard reviews, 18 months for National Energy Board reviews and 24 months for panel reviews
  • Greater use of regional environmental assessment, particularly with respect to cumulative effects
  • Allow provincial jurisdiction with respect to fisheries and delegate permitting authority under the federal Fisheries Act

Strengthening Environmental Protection

  • Introduce enforceable EA decisions with penalties for failure to comply
  • Impose administrative monetary penalties for violations under Canadian Environmental Assessment Act, National Energy Board Act
  • Impose enforceable standards under federal Fisheries Act and Species at Risk Act permits

Enhancing Aboriginal Consultation

  • Better integrate Aboriginal consultations into federal EA and permitting processes
  • Designate a single federal agency to coordinate Aboriginal consultation

Legislation is to be proposed shortly to implement this vast array of changes and is expected to significantly transform the Canadian Environmental Assessment Act and the federal environmental permitting process. Reducing EA and permitting duplication and delays and clarifying Aboriginal consultation processes are welcome changes for proponents and investors. We will provide further updates on the new legislation.

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