1 Natural Resources Canada Prepared for the Environmental Assessment Expert Panel September 9, 2016
Outline Natural Resources Canada (NRCan) and Environmental Assessment (EA) 2 1. The Importance of Natural Resources Sectors for Canada 2. NRCan Mandate 3. NRCan roles and responsibilities related to environmental assessment 4. National Energy Board (NEB) Modernization Expert Panel
3 Natural Resources are important to Canada s economy.
4 The Minister of Natural Resources mandate reflects environmental assessment as a priority. Ensure that Canada s natural resource sector remains a source of jobs, prosperity, and opportunity within the context of a world that increasingly values sustainable practices and low carbon processes Help get Canada s natural resources to market, including by seeking public trust by addressing environmental, Indigenous Peoples and local concerns Priorities mandated by the Prime Minister, including: Work with Cabinet colleagues to review Canada s EA processes Modernize the National Energy Board
Ensuring effective environmental assessment processes are a focus for Federal, Provincial and Territorial Ministers of energy and mines. 5 2016 Energy and Mines Ministers Conference theme: Enhancing Public Confidence in Canada's Natural Resource Sectors Governments published a compendium of case studies demonstrating positive approaches to building confidence in energy and mineral development Ministers agreed to develop a joint action, which will reflect the importance of building and maintaining confidence along the full lifecycle of resource development projects
6 NRCan has multiple functions in environmental assessment: Science and Technology (S&T) Specialist and expert advice Supports planning, decisions, Indigenous consultation Policy e.g., interprovincial and international energy infrastructure, offshore resources, energy efficiency Regulatory Explosives Act Northern EA processes
7 For example, our S&T experts review a range of energy projects Energy $180.5 billion in GDP Oil and gas extraction and support activities ($122.8 billion) Petroleum refineries ($7.7 billion) Electric power generation, transmission and distribution ($36.3 billion) Natural gas distribution and pipeline transportation ($13.7 billion)
and provide S&T expertise in subjects such as oil behavior 8 Oil sands and heavy oil processes including bitumen extraction and processing, tailings treatment, water management, upgrading, air emissions, and reclamation; Process engineering; Oil spill recovery and response. Small-scale test of oil sands tailings treated using rim-ditching When Is This Important? When considering projects requiring knowledge of oil behaviour, oil production technologies and processes, and their environmental impacts. Dry, stackable treated oil sands tailings (using a centrifuge process) large-scale demonstration
9 and pipeline integrity. Expertise provided during pipeline EA reviews include many specific areas of materials science: - Fracture and Design - Welding/Cladding - Corrosion - Advanced Linepipe Steels/Fittings NRCan also provide expertise on soil-pipeline interactions and impacts of natural hazards on pipeline. Girth welding Toughness test When Is This Important? When reviewing pipeline projects to ensure that they are designed, constructed, operated, maintained and, at the end of service, abandoned in a safe and environmentally responsible manner. Pipeline coating compatibility tests
10 NRCan S&T has a broad scope in the reviews of the many proposed mines Minerals and Metals $60.3 billion in GDP (2015) Mining and quarrying ($25.4 billion) Support activities for mining ($2.6 billion) Mineral and metal products ($32.3 billion) Photo used with permission of Agnico Eagle Mines Limited s LaRonde mine
providing specialized expertise in mining and mineral environmental science... Research-based expertise on mine waste management, mineral processing and mine effluents including tailings management, acid rock drainage and metal leaching. 11 When Is This Important? When reviewing the proposed tailings and waste rock management and reclamation strategies of mine development projects.
12 and in explosives safety and security. When Is This Important? When reviewing mines, quarries and infrastructure projects, to ensure that proposed explosives manufacturing and storage facilities comply with regulations and are designed to protect the safety and security of workers and all Canadians.
13 NRCan also provides expertise that is useful across a range of projects - both natural resource and infrastructure Hydrogeology: is the study of the laws governing the movement of subterranean water, the mechanical, chemical, and thermal interaction of this water with the porous solid, and the transport of energy and chemical constituents by the flow. NRCan s expertise is typically focused on the regional groundwater flow and its relation to the regional geology. When Is This Important? When reviewing projects with a potential to cause hydrogeological changes such as: metal mines and oil sands extraction, as well as dams and other non-mining projects. including our expertise in groundwater
14 in geohazards Geological hazards include landslides and slope instabilities, earthquakes, tsunamis When Is This Important? When reviewing projects that need to consider the identification of seismic hazards e.g., earthquakes, earthquake-induced liquefaction, and earthquake-generated tsunamis. Particularly, those projects located in high hazard areas. When Is This Important? Projects for which landslides pose a significant threat to humans (loss of life), infrastructure (e.g., destruction of roads, pipelines) and natural resources (e.g., mines).
15 of potential project interactions with wildfires or forest pathogens Existing Forest Fires Existing Forest Fires and and Insect Outbreaks Insect Outbreaks Affecting Affecting Canadian Forests Canadian Forests When Is This Important? When reviewing projects with a potential to cause impacts to forests.
16 with permafrost and related effects of climate change. Permafrost is soil or rock that remains frozen from one year to the next, and is an important component of the northern Canadian landscape. Permafrost, and the ice it contains, influences northern ecosystems and hydrological systems and presents challenges to northern development. When Is This Important? For projects in permafrost environments, knowledge of current permafrost conditions and sensitivity to warming is essential for informed decisions regarding resource development (e.g., mines and pipelines).
17 and, on our coasts, expertise in marine geoscience. Marine geoscience: is the study of the geology, processes and geological hazards as it relates to the dynamics of the ocean floor and the coastal zones NRCan s expertise includes coastal geomorphology, submarine landslides, and sediment transport processes When Is This Important? When reviewing projects with a potential to cause geomorphological changes such as ports and marine terminal facilities.
18 NRCan also completes Strategic Environmental Assessments. A systematic and comprehensive process for evaluating the environmental effects of a proposed policy, plan, program, or other strategic-level initiative. By Cabinet Directive, SEA is required when a proposal is submitted to a Minister or Cabinet for approval and when the proposal may result in important environmental effects, either positive or negative When a Detailed Strategic Environmental Assessment is completed, NRCan posts a public statement of environmental effects Public Statements Listing (https://www.nrcan.gc.ca/assessment/public-statements/) Divestiture of the Dominion Coal Blocks (As announced in August 2013) Responsible Resource Development and related legislative, regulatory and policy improvements to modernize the regulatory system for project reviews (As announced in April 2012) Renewal of funding for the Clean Air Agenda (As announced in 2011) Clean Energy Fund (As announced in May 2009)
19 Following Environmental Assessments, NRCan can have a continued regulatory role. The Explosives Act requires anyone importing, manufacturing or storing explosives, subject to exceptions, to have a permit, licence, or certificate issued by NRCan. Prior to issuing a licence for a bulk explosives manufacturing/storage facility, NRCan consults with Indigenous Peoples if the construction and operation of the explosives factory has the potential to cause adverse impacts on Aboriginal rights and title. Under the former CEAA, the licence was a Law List trigger. NRCan has obligations as a Responsible Authority, together with up to three other departments, for proposed mine developments that started the EA process (comprehensive studies) before the coming into force of CEAA 2012. For projects where NRCan is a Responsible Authority, the department is responsible for course of action decisions and ensuring the development and implementation of follow-up programs,
20 National Energy Board Modernization
21 National Energy Board Modernization The mandate letter of the Minister of Natural Resources (NRCan) directs him to modernize the National Energy Board (NEB) Process announced in June as one of the components of the Government of Canada s review of environmental and regulatory processes NEB modernization will address issues beyond EA review process The Minister will establish an Expert Panel to conduct a review of the NEB s structure, role and mandate and engage across Canada to seek views of Canadians Panel will be supported by a Secretariat housed within NRCan A timely opportunity to ensure the NEB remains modern, efficient and able to effectively serve the needs of Canadians into the future
22 National Energy Board Modernization Key issues to be addressed Governance, including composition and expertise of the board, roles and responsibilities, mechanisms for policy direction Mandate, including defining the public interest, energy information and analysis, and potential expansion to the NEB s mandate to other aspects of energy regulation Decision-making roles of NEB, Minister and Cabinet regarding projects, licensing and compensation disputes Legislative tools for lifecycle regulation, including for oversight, public engagement, safety and emergency preparedness and land acquisition Indigenous engagement, including participation in all aspects of the energy infrastructure development lifecycle and the balance of Indigenous peoples interests and other interests in decision-making Public participation, including to support greater stakeholder and public participation in NEB activities
23 National Energy Board Modernization The NEB modernization panel (the Panel) will engage with Indigenous peoples, Canadians and other stakeholders and provide a final report to the Minister of Natural Resources by January 31, 2017 The Panel s report and its findings will help to inform potential new policy and/or legislative changes to modernize the NEB The Panel s activities will be guided by a set of Terms of Reference, which will reflect public comments received between June 20 and July 20, 2016 As with other reviews, funding is available to support participation of Indigenous peoples in the process The NRCan Secretariat is coordinating efforts with the other components of the review
24 Thank you
25 Annex NRCan Science and Technology
26 Science and Technology Earth Sciences NRCan s Earth Sciences Sector provides public geoscientific and geospatial expertise, knowledge and technology to support environmental, social and economic objectives of the federal government. Earth Sciences scientific and technical expertise spans areas including: geology environmental geoscience groundwater permafrost remote sensing satellite imagery geodetic surveys space weather topographic, height and other themebased data references authoritative geospatial standards legal surveys and boundary information cadastral surveys on Canada s landmass and waters
27 Science and Technology Innovation and Energy Technology CanmetENERGY-Devon (one of three Innovation and Energy Technology sector laboratories) conducts research and development projects in issues arising from fossil fuel production, in particular, the development of oil sands and unconventional fossil fuels. CanmetENERGY-Devon R&D is focused in four areas including: Hydrocarbon Extraction for example, study and testing of non-aqueous extraction technologies to eliminate tailings ponds and reduce water use during bitumen production; Upgrading with the current focus on partial upgrading to improve oil quality and reduce the need for diluent during bitumen transportation to market; Environmental Impacts to understand the impacts of hydrocarbon recovery operations and develop advanced technologies for mitigating those impacts including reducing air emissions and recreating stable land and aquatic ecosystems after oil sand mining has ended; Oil Spill Response to develop knowledge to be able to predict fate and behaviour of crude oil if spilled in water environments and climatic conditions found across Canada.
28 Science and Technology Forestry The Canadian Forest Service provides science and policy expertise and advice on national forest sector issues including: environmental leadership in Canada s forest sector a visionary approach to sustainable forest management planning and policies a science and research-based understanding of the forests NRCan s expertise in forestry for environmental assessments is typically focused on: forest soils; pests and pathogens; forest ecology and biodiversity; forest management; and wildfires
29 Science and Technology Mining, Minerals and Explosives CanmetMINING undertakes mining and mineral environmental science, which includes the study of geological materials as they relate to mining activities and their impact on the environment. Expertise includes mine waste management, mineral processing and geochemistry related to the issues of acid rock drainage and leaching. metal The Canadian Explosives Research Laboratory (CERL) conducts research to protect Canadians by improving the safety and security of explosives during manufacture, transportation and use, and by reducing the harmful effects of explosions. CERL research includes blast effects on vulnerable energy infrastructure and product testing to improve the safe use of energetic materials such as pyrotechnics.
30 Science and Technology Materials Science and Technology CanmetMATERIALS is a national laboratory within the Minerals and Metals Sector of NRCan, managing a unique facility for materials research Mandate to conduct and deliver materials science and technology for the use of minerals and metals to stakeholders and Canadian receptors in the clean energy supply, energy end-use (predominately transportation), pipelines integrity and safety and defense and emerging materials sectors. Pipelines Program Develops new materials and technologies Provides unbiased and scientifically credible information on pipeline integrity Improves or develops new codes and standards Facilitates innovation and competitiveness CanmetMATERIALS, Hamilton Facility