Environmental Assessment Office — Continued

Strategic Context

The steady growth of the provincial economy, increased demand for energy and for energy self-sufficiency, and high commodity prices account for the unprecedented volume of project activity in 2005/06. The Environmental Assessment Office effectively manages environmental assessment in cooperation with other provincial agencies to promote regulatory efficiency and deliver a fair and balanced assessment process competitive with other jurisdictions.

British Columbia Economy

British Columbia's real GDP grew by a solid 3.5% in 2005, slightly above the 3.4% growth rate forecast in the September Budget Update. With strong consumer spending and investment, British Columbia's growth was the second fastest in the country after Alberta's 4.5% expansion. Other signs of the strong economy were lower unemployment rates, strong labour income growth and a residential construction boom.

Energy Sector Development

Government initiatives created numerous market opportunities in the energy sector and an influx of new projects. In 2005/06, nine new major energy projects, each over 50 megawatts, entered the environmental assessment process as industry responded to the opportunity created by BC Hydro's Open Call for Power. In total, 20 energy projects were in the pre application or application phase of environmental assessment process as of March 31, 2006.

Mining Sector Development

Increased metal and coal prices meant increased investment in mining exploration and development. Seven new mining projects entered the environmental assessment process in 2005/06 for a total of 18 mining projects in pre-application or in the application review phase of the environmental assessment process as of March 31, 2006.

Provincial Infrastructure Development

The Lower Mainland is a major international gateway for the global economy. The Port of Vancouver, Canada's busiest port, handled more that 43 billion dollars in goods in 2005. Vancouver International Airport is Canada's second busiest airport and the second largest international passenger gateway on the west coast of North America. Deltaport Third Berth, Canada Line (formerly the Richmond Airport Vancouver Line) and the South Fraser Perimeter Road were major infrastructure projects in the Lower Mainland in the environmental assessment process as of March 31, 2006.

First Nations

The Environmental Assessment Office continues to facilitate First Nations' participation in reviews to ensure that potential impacts on First Nations' interests are identified and addressed through meaningful consultation and accommodation (where appropriate) in accordance with applicable policy and common law requirements.

Federal Government's Role

Three-quarters of all projects in the environmental assessment process in 2005/06 were also reviewable under the federal Canadian Environmental Assessment Act. Coordination of federal and provincial requirements creates a more timely and cost-effective process for proponents. The Environmental Assessment Office works closely with federal counterparts on project-specific timelines, effective management of federal participation and harmonization of federal/provincial reviews.

Risks

Proponents with projects subject to the Environmental Assessment Act require an environmental assessment certificate before they can apply for approvals under other provincial enactments and proceed with their projects. Competitiveness and the ability to take advantage of market opportunities increase with a timely environmental assessment process. The Environmental Assessment Office's capacity to manage project loads and harmonize federal assessment requirements is integral to the effective review of major projects, and the Environmental Assessment Office experienced significant budget pressures in 2005/06 from the rapid increase in project volumes.