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WHEREAS the Government of Canada is committed to improving the federal environmental assessment (EA) and regulatory review processes for major resource projects to enable a more effective assessment and mitigation of potential environmental effects, while protecting the health and safety of Canadians and promoting innovation and competitiveness within the Canadian resource industry sectors;
AND WHEREAS the Government of Canada is committed to undertaking a process of early, effective and meaningful engagement and consultation with Canada’s Aboriginal peoples concerning contemplated Crown conduct with respect to, among other things, major resource projects that may adversely affect established or potential Aboriginal and treaty rights under s.35 of the Constitution Act 1982;
AND WHEREAS the Government of Canada has created the Major Projects Management Office (MPMO) for the purpose of overseeing and tracking the federal review and Aboriginal engagement and consultation for major resource projects;
AND WHEREAS Nalcor Energy (the Proponent) has submitted a Project Description in support of its proposal to develop two hydroelectric power generating facilities on the Lower Churchill River located in Labrador, generating a total capacity of 3074 megawatts (MW) (the Project);
AND WHEREAS Fisheries and Oceans Canada (DFO) and Transport Canada (TC) have regulatory and statutory duties in relation to the proposed project;
AND WHEREAS the Minister of the Environment (the Minister) has jointly appointed a Joint Review Panel (JRP) with the Ministers of Environment and Conservation and Intergovernmental Affairs of Newfoundland and Labrador (NL) to conduct an EA pursuant to the Canadian Environmental Assessment Act (the CEAA) and the NL Environmental Protection Act;
AND WHEREAS nothing in this Project Agreement (the Agreement) fetters the powers, statutory authorities and functions of federal departments/agencies and their respective Ministers;
AND WHEREAS the Departments of Environment and Conservation and Intergovernmental Affairs of NL and the Canadian Environmental Assessment Agency (CEA Agency) have agreed to coordinate the federal and provincial EAs to the extent possible;
NOW THEREFORE the signatories (the Parties) to this Agreement commit to work together to facilitate an effective, accountable, transparent, timely and predictable federal review in relation to the development proposal and to contribute to the discharging of any duty to consult with Aboriginal groups.
This Agreement describes the main activities of the federal review and outlines the key roles and responsibilities of the Parties. For further clarity, the Agreement shall be read together with the Annexes, which form part of this Agreement. The federal review includes EA, regulatory review(s) and Aboriginal engagement and consultation activities.
The development proposal consists of the construction and operation of two hydroelectric power generating facilities on the lower section of the Churchill River in Labrador. The facilities will be located at Gull Island and Muskrat Falls and will have a combined power generation capacity of approximately 3074 MW, and interconnecting transmission lines between Gull Island and Churchill Falls and between Muskrat Falls and Gull Island and to the existing Labrador grid. Gull Island and Muskrat Falls are located approximately 100 km and 30 km respectively to the southwest of the Town of Happy Valley-Goose Bay.
The Project for the purposes of the federal review may be different from the development proposal, as described in section 4.0.
Based on the information provided by the Proponent, the following federal departments and agencies have identified an interest in the Project, and will participate in the federal review as follows:
For further information regarding the roles and responsibilities of the Parties, please see applicable Annexes.
The Joint Review Panel Agreement (JRPA) and the Terms of References for the JRP issued by the Minister and the Ministers of Environment and Conservation and Intergovernmental Affairs of NL on January 8, 2009 established the JRP and its mandate. As currently proposed, the scope of the Project, outlined in the JRP’s Terms of Reference, is the same for the federal and provincial processes and includes the Gull Island facility (capacity of 2,250 MW), including a dam 99 m high by 1,315 m long with a reservoir 225 km long flooding an area of 85 km2, and the Muskrat Falls facility (capacity of 824 MW), including a dam at the north section 32 m high by 432 m long, and the south section of 29 m high by 325 m long with a reservoir 59 km long, flooding an additional area of 41 km2 .
The JRP has statutory responsibilities pursuant to the CEAA and administrative responsibilities pursuant to the NL Environmental Protection Act. The JRP is not a Party to the Agreement.
The CEA Agency and NL Department of Environment and Conservation will continue to coordinate their respective review processes, to ensure that joint steps are undertaken wherever that can appropriately be done. To date, this approach has included: developing a common set of Environmental Impact Statement (EIS) Guidelines provided to the Proponent by the Minister of the Environment and the NL Minister of Environment and Conservation on July 15, 2008; directing the development of a single EIS to be submitted by the Proponent to the JRP; and, holding joint public comment periods on the EIS Guidelines and the JRPA and Terms of Reference. Annex I shows a Gantt chart of the federal review process. Annex II shows the key milestones and service standards for the EA as well as Aboriginal engagement and consultation.
Through the federal EA process, RAs will confirm any regulatory decisions required in relation to the Project. If no regulatory decisions are required for a department or agency, it will end its participation in the EA as an RA, but may, upon request from the JRP or an RA, continue to participate as an expert FA should it be in possession of specialist or expert information or knowledge with respect to the Project. Similarly, expert FAs will continue to review information provided by the Proponent, as it becomes available and as the project evolves and changes, in order to confirm whether a regulatory approval may be required based on this updated and/or new information. In this case, an expert FA may become an RA and continue its participation in the EA on that basis.
The Parties are committed to a “Whole of Government” approach to Aboriginal engagement and consultation in the context of major resource projects to ensure that Aboriginal groups are sufficiently consulted, and where appropriate accommodated, when the Government of Canada contemplates actions that may adversely affect established or potential Aboriginal and treaty rights. To the extent possible, and with the CEA Agency responsible for coordination, the Parties will work together toward a coordinated approach for Aboriginal engagement and consultation that is integrated with the federal review.
The Agency, in collaboration with DFO, TC, and the NL Department of Environment and Conservation, agreed on an approach for consultation with the Aboriginal groups involved in the process. This approach will enable coordinated and productive Aboriginal consultation activities.
The proposed Aboriginal engagement and consultation roles and responsibilities are identified in Annex III.
The target timelines for the federal review are detailed in the Gantt chart in Annex I, and are as follows:
The above timelines have been established on the basis of a number of assumptions, such as activities of participants to the review that are not signatories to this Agreement. Should events unfold in a manner that is different from what has been assumed, the timelines will necessarily be different.
The MPMO Tracker will provide for transparent and publicly accessible monitoring of the progress of the federal review.
The RAs will work with FAs, and the Proponent, to ensure that mitigation measures related to their areas of responsibility that were identified through the EA, and any conditions attached to regulatory approvals, are effectively implemented.
For those mitigation strategies within federal jurisdiction that were identified through the EA but that are not related to the RAs regulatory responsibilities, the FAs will provide assistance to ensure the mitigation and follow-up strategies related to areas within their mandate are adhered to and effectively implemented by the Proponent.
Tracking Progress
The milestones, timelines and service standards set out in this Agreement, subject to any amendments, will provide the basis against which the MPMO will monitor the progress of the federal review and report on this progress in the MPMO Tracker.
The following are examples of situations where the MPMO may pause the timelines of the federal review:
Issues Resolution
The Parties will use their best efforts to resolve any differences of opinion in the interpretation or application of this Agreement in an effective and timely manner.
Issues relating to the federal review for the Project will be resolved through direct discussions and collaboration between the involved Parties, supported by the MPMO.
Should issues remain outstanding, they will be referred to the appropriate senior level committee established through the MPMO Initiative.
Post-Project Evaluation
The Parties will participate in an informal evaluation of the effectiveness of the federal review in relation to the Project within 90 days of the completion of the regulatory review. The level of effort and format of the evaluation will be appropriate to the scale of the issues encountered.
Amendments
The Parties may recommend to the MPMO whether a change to the federal review or to the Project warrants an amendment to the Agreement. Where there is agreement that an amendment is warranted, and where such amendment is considered significant, the MPMO, on behalf of the Parties, will provide the proposed amendment to the Major Projects Deputy Ministers for consideration.
Unless otherwise determined by the MPMO in collaboration with the Parties, amendment of the Agreement shall not cause the federal review to stop with respect to any Agreement-related activities that might be ongoing at the time when the need for amendment is identified.
The Parties hereto have signed the Project Agreement, in counterpart, on the dates indicated below.
| Original Signed by Cassie Doyle Deputy Minister Natural Resources Canada |
August 21, 2009 Date |
| Original Signed by Peter Sylvester President Canadian Environmental Assessment Agency |
July 21, 2009 Date |
| Original Signed by Claire Dansereau Deputy Minister Fisheries and Oceans Canada |
July 23, 2009 Date |
| Original Signed by Yaprak Baltacioğlu Deputy Minister Transport Canada |
July 16, 2009 Date |
| Original Signed by Ian Shugart Deputy Minister Environment Canada |
August 8, 2009 Date |
| Original Signed by Michael Wernick Deputy Minister Indian and Northern Affairs Canada |
July 20, 2009 Date |
Annex I - Gantt Chart: Target Timelines for the Federal Review of the Project
Annex III - Aboriginal Engagement and Consultation Approach and Roles and Responsibilities
Annex V - Transport Canada: Roles, Responsibilities, Key Milestones and Service Standards
Annex VI - Other Departments and Agencies: Roles and Responsibilities
Gantt Chart: Target Timelines for the Federal Review of the Project
Many milestones were completed between February 2007 and December 2008 before this project was brought into the MPMO initiative.
| Description/Activity | Lead | Support As Needed | Service Standard, or Completion Date |
|---|---|---|---|
| Establish JRP | Minister of the Environment, Ministers of Environment and Conservation and Intergovernmental Affairs, NL | CEA Agency, Province | January 8, 2009 |
| Issue Final JRPA and Terms of Reference | Minister of the Environment, Ministers of Environment and Conservation and Intergovernmental Affairs, NL | CEA Agency, Province | January 8, 2009 |
| Appoint JRP Members | Minister of the Environment, Ministers of Environment and Conservation and Intergovernmental | CEA Agency, Province | January 8, 2009 |
| Submit EIS to JRP | Proponent | March 6, 2009 | |
| Public Comment Period and Government Review of EIS | JRP | RAs expert FAs, CEA Agency, Province | March 9 to May 22, 2009 |
| Start of Aboriginal Community Engagement on EIS | Agency | RAs, expert FAs, INAC | Process and schedule to be determined in consultation with Aboriginal communities |
| Submit technical information to support applications for TC and DFO authorizations | Proponent | TBD by the Proponent but no later than close of public comment period on EIS | |
| Consider Public Comments and Determine Adequacy of Information | JRP | CEA Agency | 30 days after close of public comment period |
| Respond to Public Comments and Requests from the JRP | Proponent | No later than 60 days following submission of information requests by the JRP | |
| Public Comment Period on Additional Information from Proponent, if Required | JRP | RAs, expert FAs, Province | 30 days after additional information from the Proponent |
| Consider Public Comments and Determine Adequacy of Information | JRP | CEA Agency | 30 days after Public Comment Period |
| Post Notice of Public Hearing on the CEAR | JRP | CEA Agency | Minimum of 45 days prior to start of hearing and after additional information from the Proponent |
| Hold Public Hearing | JRP | CEA Agency | At least 45 days after the Notice of Public Hearing is posted on CEARIS |
| Submit JRP Report to the Minister, Ministers of Environment and Conservation and Intergovernmental Affairs of NL | JRP | Within 90 days of the close of hearing | |
| Begin consultation of Aboriginal Groups on JRP Report | CEA Agency, Province | Within 45 days following submission of the JRP report to the governments | |
| Government Response to JRP Report | DFO | RAs, expert FAs, CEA Agency | Within 10 weeks of submission of JRP Report to RAs |
| Governor in Council approval of Government Response | Privy Council Office | Treasury Board | Determined by Cabinet |
| Post Course of Action Decisions pursuant to the CEAA on the CEAR | RAs | Agency | Within 1 week of the Governor in Council decision |
The Government of Canada consults with Aboriginal people for reasons of good governance, sound policy development and decision-making as well as for legal reasons. Canada has statutory, contractual and common law obligations to consult with Aboriginal groups. The common law duty to consult with Aboriginal groups applies when the Crown contemplates actions that may adversely affect established or potential Aboriginal and treaty rights. These rights are recognized and affirmed in section 35 of the Constitution Act, 1982.
The Government of Canada will take a “Whole of Government” approach to Aboriginal consultation in the context of major resource projects to ensure that Aboriginal groups are sufficiently consulted, and where appropriate accommodated, when it contemplates actions that may adversely affect established or potential Aboriginal and treaty rights. This approach is mandated by both the Cabinet Directive and its subsequent MOU for Improving the Performance of the Regulatory System for Major Resource Projects (June, 2007). The Directive states that federal Parties will work together towards a coordinated approach for Aboriginal consultation that is integrated with the EA and regulatory review.
Ten Aboriginal groups have been identified for engagement. This list may change over time based on information received during the course of the federal review and the feedback from Aboriginal groups, as may the level of engagement and consultation activities undertaken by the Crown. The CEA Agency, in conjunction with RAs and the Province, have determined the appropriate level of engagement and consultation for identified groups and have provided those groups with a copy of a Protocol for consultation, describing consultation opportunities for Aboriginal groups during the EA process.
The “Whole of Government” approach for Aboriginal engagement and consultation activities will be implemented throughout the entire federal review. Best efforts will be made to ensure that the timeframe for consultation activities coincides with key milestones and processes. However, it is important to acknowledge that timeframes for consultation activities may diverge from pre-established federal review timeframes, based on the consultation requirements. Should modifications to timeframes be required due to consultation obligations, revisions will be discussed by all Parties, including the Province as they participated in the development of the approach for consultation.
Where accommodation is required, the Crown, coordinated by the CEA Agency, will monitor and determine whether mitigation measures identified reasonably address concerns regarding potential adverse impacts on established or potential Aboriginal and treaty rights. The Crown may also examine the role of third parties in addressing adverse impacts on established or potential Aboriginal and treaty rights. The Crown will work with Aboriginal groups and attempt to identify options or solutions that balance the interests of those Aboriginal groups with other societal interests.
The CEA Agency will act as the Crown Consultation Coordinator (CCC) for the federal review in relation to the Project to satisfy the Crown’s obligations. The role of the CCC is described below. Key Aboriginal engagement and consultation milestones are included in Annex II.
Roles and responsibilities of each participating federal entity for the review of the Project are:
The CEA Agency will
The Major Projects Management Office will:
Responsible Authorities will:
Federal Authorities and Expert Departments will:
The Department of Justice (DOJ) and INAC will:
EA
Regulatory
Note: The following milestones represent the key activities associated with the regulatory process for the Project and are not intended to reflect the entire work plan schedule associated with the Project. Furthermore, these milestones may need to be adjusted as additional information is made available.
| MILESTONE | ACTIVITIES/DESCRIPTION | LEAD | SERVICE STANDARD |
|---|---|---|---|
| Receipt from proponent of application for Section 32 and/or Subsection 35(2) Fisheries Act authorization | DFO receives application from the Proponent for authorization of impacts to fish and fish habitat under section 32 and/or subsection 35(2) of the Fisheries Act complete with adequate plans, maps, reports and data to support the review. This may include a fish habitat compensation plan to support the Fisheries Act review. The application should be received before the close of public comment period on EIS |
Proponent | Before the close of public comment period on EIS |
| DFO response to the proponent regarding impacts to fish and fish habitat and the Fish Habitat Compensation Plan | DFO reviews the application package (including the habitat compensation plan and associated financial security, if applicable) for adequacy to support the Fisheries Act review. DFO requests further information, if required, to proceed with review of the application (and the EIS, if reviews are concurrent). | DFO | Concurrent with review of the EIS if application is received during the EIS review |
| DFO response to proponent regarding Fish Habitat Compensation Plan | If appropriate, DFO notifies Proponent that the Fish Habitat Compensation Plan is acceptable (subject to the conclusions and recommendations of the JRP and Governor in Council-approved response to the JRP Report, and the discharge of any legal Aboriginal consultation obligations). | DFO | Within 13 weeks of the final EA course of action decision |
| Receipt of additional information from the proponent | DFO receives additional information from proponent | Proponent | TBD by the Proponent |
| Decision regarding Issuance of Section 32 and Subsection 35(2) Fisheries Act authorization | If appropriate, DFO issues Fisheries Act authorization to Proponent for impacts to fish and fish habitat | DFO | DFO issues an authorization contingent on EA Course of Action Decision under the CEAA. The Course of Action decision must be consistent with the response to the JRP Report approved by the Governor in Council under the CEAA. DFO issues the authorization 90 calendar days after receipt of an acceptable Fish Habitat Compensation Plan (including financial security) and the discharge of any legal Aboriginal consultation obligations associated with the authorization(s). Issuance of the authorizations will also consider the Proponent’s timing needs for the authorization in that, should the authorization not be required until much later than the timeline above, DFO will issue it when it is appropriate. |
EA
Regulatory
Note: The following milestones represent the key activities associated with the regulatory process for the Project and are not intended to reflect the entire work plan schedule associated with the Project. Furthermore, these milestones may need to be adjusted as additional information is made available.
| MILESTONE | ACTIVITIES/DESCRIPTION | LEAD | SERVICE STANDARD |
|---|---|---|---|
| TC liaises with Project Proponent regarding potential works in regards to impacts on navigability | Liaise with Proponent regarding proposed works that could potentially impact navigation and on potential alternatives and mitigation strategies to ensure that navigability is maintained. | TC | Ongoing |
| Submission of NWPA application for each proposed work | Provide TC with application for each proposed work and request for NWPA approval(s) complete with dimensioned plans, maps, reports, studies and data as outlined on the NWPA website, in conjunction with the EIS. | Proponent | Dependent upon the Proponent but submission should be no later than the close of the public comment period on the EIS |
| Determination and comment on NWPA application(s) | Review application package and information/plans for adequacy to support NWPA review. Requests further information if required to proceed with application |
TC | 8 weeks after application submission |
| Navigation Impact Assessment Process - On-site Inspection(s) | Complete on-site Navigation Impact Assessment of the project, site and waterway(s), subject to weather and time of year. | TC | An initial 2 month inspection process, then ongoing until completion of public comment process |
| Notice to the Proponent to Advertise pursuant to NWPA Section 9(3) | Provide Proponent with advertisement package pursuant to NWPA Section 9(3). | TC | Within 3 weeks of completed initial on-site inspection and following the assessment of navigational issues arising from any changes to the project due to EA issues |
| Deposit and Advertise | Deposit “Final Plans” and other relevant information with Land Title Office or the government agent and advertises in one or more local papers and the Canada Gazette. Provide proof of deposit and advertising to TC. |
Proponent | Advertisement process is to occur for a minimum of 30 +1 calendar days |
| Address public and Aboriginal comments regarding the Project's potential impact on navigation | Should TC receive concerns from the public and/or Aboriginal groups regarding navigation, the Proponent and TC will work together to resolve concerns. Additional requirements might be deemed necessary by TC in regards to potential impacts on navigation posed by proposed works. TC will facilitate public comment process if required |
Proponent | TBD by proponent |
| Resubmission of NWPA application(s) (if required) |
Resubmission of NWPA application(s) by proponent if substantial changes to proposed work(s) are required. | Proponent | TBD by proponent |
| Final Application Review Process | Perform a final review (subject to the JRP’s conclusions and recommendations) of all information on file, including technical information and public comments. | TC | 4 weeks |
| Issue approval under NWPA (if appropriate) | If appropriate, issue approvals under NWPA. | TC | Within 90 calendar days following EA Course of Action decision if NWPA application(s) submitted by the close of the public comment period on the EIS. |
| PARTY | ROLES / RESPONSIBILITIES |
|---|---|
| CEA Agency: JRP Secretariat |
|
| CEA Agency Federal Participation Coordination |
|
| CEA Agency Crown Consultation Coordinator |
|
| INAC HC |
|
| EC, NRCan |
|
| MPMO |
|