2002/03 Annual Service Plan Report Environmental Assessment Office

Year-at-a-Glance Highlights

Overview

In fiscal 2002/2003 major changes were made to the environmental assessment review process. British Columbia's Environmental Assessment Act (R.S.B.C. 1996, c.119) which had been in effect since June, 1995 was replaced with a new Environmental Assessment Act (S.B.C. 2002, c. 43). There were a number of strengths to the original environmental assessment process; it was thorough, balanced, integrated, open and participatory. However, over the years, a number of limitations were found with the legislation, in particular, the process was highly prescriptive and standardized rather than flexible to deal with the challenges of individual project reviews.

Environmental Assessment Reform and Transition

In response to the government's commitment to more flexible, efficient and timely reviews of proposed major projects to help revitalize the economy, the Environmental Assessment Office undertook a major reform of the environmental assessment process resulting in the new legislation. On December 30, 2002, the new Environmental Assessment Act (S.B.C. 2002, c. 43) (the Act) was proclaimed. The primary objective of the new legislation is to provide greater flexibility to customize review procedures on a project-by-project basis. The increased flexibility is intended to contribute to the government's strategic priorities for an improved investment climate while preserving high environmental standards. Additional objectives of the legislative reform are clearer process management accountabilities, increased procedural choice, greater certainty and credibility for proponents, reduced agency workloads and government program delivery costs, and improved federal/provincial harmonization.

Accompanying the new legislation were new and updated regulations, including the: Reviewable Project Regulation (BC Reg. 370/2002); Concurrent Approval Regulation (BC Reg. 371/2002); Transition Regulation (BC Reg. 374/2002); Prescribed Time Limits Regulation (BC Reg. 372/2002), and the new Public Consultation Policy Regulation (BC Reg. 373/2002) that provides assurances for consultation within every project review.

To facilitate implementation of the new legislation and transition to the new process, the Environmental Assessment Office:

• Developed Transition Orders so that all projects under review could be continued under the new process;
• Published a "Guide to the British Columbia Environmental Assessment Review Process," a comprehensive overview of the new Act and regulations, including guidelines for public and First Nations consultation. The Guide and a summary brochure describing the review process are available on the Environmental Assessment Office website at: http://www.eao.gov.bc.ca;
• Implemented a new organizational plan and structure for the Environmental Assessment Office that met budgetary targets, decreased the number of Environmental Assessment Directors and created new Project Assessment Manager and Project Assessment Officer positions;
• Restructured the previous Project Registry into a Project Information Centre that provides electronic access to extensive project review documentation; and
• Completed an interim extension to the Canada-British Columbia Agreement on Environmental Assessment Cooperation.

Projects

During the 2002/03 fiscal year, the Environmental Assessment Office completed environmental assessments of six major project proposals, which subsequently obtained certification. Of the six projects, all were certified under the former Act except for the Forrest Kerr Hydroelectric Project which was certified under the new Act.

Silverberry Secure Landfill Project

(Canadian Crude Separators Inc.)

In March 2002, Canadian Crude Separators Inc. applied for approval to build and operate the Silverberry Secure Landfill approximately 50 kilometres north of Fort St. John to store special wastes from the oil and gas industry. This $32 million secure landfill facility, which would be the first facility of its kind in British Columbia, was approved on July 10, 2002. Construction of the secure landfill was initiated later in 2002.

Burnaby Lake Rejuvenation Project

(City of Burnaby)

In May 2002, the City of Burnaby submitted an application for federal and provincial approval to rejuvenate Burnaby Lake through a dredging program involving the removal of up to approximately 400,000 cubic meters of sediment over an area of about 36 hectares. The full-scale dredging program would cost $29 million and result in 86 person years of employment. The dredging program will improve environmental conditions by removing sediments that have high levels of contamination from point and non-point sources. The program will also reduce some noxious weeds currently growing in the lake. By deepening the water, conditions at the mouths of creeks will be improved for fish and the resulting open water will allow the re-establishment of a standard rowing course. Project approval certification was granted in September 2002.

Stewart Bulk Terminals Wharf Expansion Project

(Stewart Bulk Terminals Ltd.)

On July 2, 2002, Stewart Bulk Terminals Ltd. submitted an application to undertake a $6 million expansion of its bulk storage and loading marine terminal operating capacity near the town of Stewart by constructing a new wharf and facilities to service barges and cargo at all stages of the tide. Project approval certification was granted in October 2002. The company has designed the project to avoid harm to key salmon habitat and will develop operating procedures to protect against accidents and malfunctions. Project construction has not yet begun.

Basal Aquifer Dewatering Project

(Highland Valley Copper Corporation)

On February 19, 2002, Highland Valley Copper Corporation submitted an application for the Basal Aquifer Dewatering Project. The proponent proposes to increase extraction of groundwater surrounding the mine's existing Valley Pit and to discharge this water to nearby Witches Brook to enable the extension of the life of the mine. The project received certification in August 2002. It was determined that any potential environmental impacts could be adequately mitigated by measures to govern the discharge of water to meet the needs of downstream aquatic resources and mine operations. A multi stakeholder monitoring committee will oversee a proponent monitoring program to ensure the environment is protected. Extending mine life by 3.5 years prolongs the social and economic benefits of the existing mine, such as $450 million in annual company expenditures in B.C. and 950 existing jobs which represent $82 million in annual employee wages and benefits.

Forrest Kerr Hydroelectric Project

(Coast Mountain Hydro Corporation)

In June 2002, Coast Mountain Hydro Corporation submitted an application for federal and provincial approval to construct and operate the Forrest Kerr Hydroelectric Project. This $193 million project includes a new 100 megawatt power plant at the confluence of the Forrest Kerr Creek and the Iskut River, located approximately 100 kilometers northwest of the town of Stewart, as well as a 188 km. DC transmission line with converter stations, from the plant site to Meziadin Junction. The Project was certified in March 2003 with conditions that ensure sufficient water flow to avoid adverse fish impacts. The project will generate approximately 130 person-years of employment during the 2-3 year construction period as well as 4 full-time and 4 part-time operating jobs. A comprehensive Environmental Management Plan will guide project construction and operation.

Tulsequah Chief Mine Project

(Redfern Resources Ltd)

The Tulsequah Chief Mine Project, located in northwestern British Columbia, was approved in March 1998 following a three and a half year environmental assessment review. The Taku River Tlingit First Nation had concerns about the approval and sought a judicial review, which resulted in the project approval certificate being quashed by the British Columbia Supreme Court.

On January 31, 2002, the British Columbia Court of Appeal ruled that the proposal for the Tulsequah Chief Mine project should be remitted directly to the Ministers for decision. On December 12, 2002 the Minister of Sustainable Resource Management and the Minister of Energy and Mines approved the project following extensive First Nations consultation which included meetings with ministers and the Taku River Tlingit First Nation. The ministers have concluded that all key environmental issues with the project have been resolved through process or are resolvable by means of an ongoing adaptive management process.

Amended Certificates and Projects Under Review

In addition to those reviews completed during the 2002/03 fiscal year, 27 projects were in various stages of the environmental assessment process (Appendix 2). Also, 4 existing project approval certificates were amended (Appendix 1).

Intergovernmental

Federal-Provincial Harmonization

In October 2002, the governments of Canada and British Columbia approved an interim extension to the 1997 agreement on environmental assessment cooperation. The interim extension will remain in force until a long-term agreement can be negotiated that reflects the amendments proposed for the Canadian Environmental Assessment Act in Bill C-9 which is expected to come into force later this year. The 1997 agreement was successful in ensuring that the environmental effects of proposed projects are carefully considered in joint reviews while respecting the decision making responsibilities of both levels of government. Amendments included in the extension improve and update the 1997 agreement by:

• Providing greater flexibility in establishing a basis for a common environmental assessment report;
• Establishing a dispute resolution mechanism; and
• Making provision for project specific work plans to avoid duplication, overlap, and improve timeliness of reviews

In preliminary discussions with the Canadian Environmental Assessment Agency, staff have begun to craft a new long term agreement. Issues raised during the interim agreement consultations will be carefully revisited. The public will have an opportunity to comment on a new agreement before it is signed.

British Columbia — Washington State

The Environmental Assessment Office signed a memorandum of understanding with the Washington Department of Ecology regarding cooperation on environmental assessment in June 2001. The purpose of the protocol is to ensure that each jurisdiction provides notice of and information about projects that are within 100 km. of the international border and therefore could have effects on the neighbouring jurisdiction.

The Environmental Assessment Office invited the Department of Ecology to participate in the review of the Vancouver Island Generation Project near Nanaimo and the Inland Pacific Connector Project, a proposed pipeline that would extend from Oliver to Huntingdon, B.C. In addition, Washington State agencies continued to actively participate in the Cascade Heritage Power Plant Park Project on the Kettle River, two kilometers south of Christina Lake in the Regional District of Kootenay Boundary.

The Environmental Assessment Office has received notice about projects with which the Department of Ecology has direct involvement in Washington State, but to date British Columbia has determined it has no interest in these projects because they have low potential for impacts in B.C. The notice and information provisions do not extend to projects covered by the Washington State Energy Facility Site Evaluation Council.

Electronic Project Information Centre

An initiative critical for the success of the reformed environmental assessment process is the use of new technology for electronic service delivery. The electronic Project Information Centre (ePIC, also called the e-Registry) is the primary means for web-based access to environmental assessment information, including terms of reference for project applications, project applications, public notices, orders, public and government comments, assessment reports, ministers' certification decisions and other documents. The ePIC is essential for efficient and effective environmental assessment and for ensuring open government and accountable decision-making.

The ePIC was implemented in January 2003. The Environmental Assessment Office will monitor the effectiveness of the ePIC and develop system updates and enhancements as necessary. In early 2003, considerable progress was made towards the development of a review participant contact management module, as well as an internet mapping application to allow users to search for projects geographically. The Environmental Assessment Office will continue to rely on the Chief Information Office and the Ministry of Sustainable Resource Management for leadership in the area of standards for electronic service delivery, records management, and the protection of information and privacy.

Certification Compliance

The Environmental Assessment Act does not require the Environmental Assessment Office to monitor proponent compliance with certification conditions. Certification conditions are usually associated with statutory permitting and other programming interests of one or more line agencies and the Environmental Assessment Office relies on the line agencies to track compliance with certificate conditions. In fiscal year 2001/02, the Environmental Assessment Office examined the effectiveness of this approach by initiating a certification compliance review for three previously certified projects.

Further work was undertaken for the certificate compliance review of the Kemess South mine project during 2002/03, and by March 31, 2003, an advanced draft of the final report had been prepared. It is anticipated that the report will be finalized during the summer of 2003.