Financial overview – Estimates of the Impact Assessment Agency of Canada: appearance before the Standing Committee
Overview
2020-2021 Main Estimates
Q. The Agency’s 2020-2021 Main Estimates are $76.5 million, could you elaborate on the composition of these Main Estimates?
- Yes, $52 million of the Agency’s authorities will be devoted to the conduct of assessments, with $19 million earmarked for Grants and Contributions to support public and Indigenous participation in assessments. The remainder is from a statutory vote for the employee benefit program.
- These authorities include potential revenues up to a maximum of $8 million. Under cost recovery regulations the Agency has the authority to recover certain costs from proponents related to the exercise of the Agency’s responsibilities during review panels.
Q. Why has the Agency’s authorities increased from 2019-2020?
- There has been a net increase over 2019-2020 levels of $2.3 million primarily due to an increase in grants and contributions ($4.4 million), and small reductions in operating budget ($1.8 million) and the employee benefit program ($0.3 million).
- The employee benefit program includes obligations payed by the employer, in this case Treasury Board, for such items such as insurances (dental, health care) and pension provisions.
Q. Why does the new process of Impact Assessment require substantially more funds than the previous system?
- More comprehensive impact assessments: We have replaced the Canadian Environmental Assessment Act, 2012, with the Impact Assessment Act, and are expanding the types of impacts studied during a review to understand how a proposed major project could affect not just our environment, but also the economic, social and health impacts, as well as impacts on Indigenous peoples, over the long-term. Reviews will also include gender-based analysis. Enhanced Indigenous and public participation will also be performed during an Impact Assessment.
Q. Specifically, what is the Agency funding through its $19 million grants and contribution program?
- The objective of the Grants and Contributions program is to provide funding support to improve scientific information and Indigenous knowledge, enhance public participation, contribute to Indigenous reconciliation and build Indigenous capacity, and promote transparency, efficiency and timeliness.
- The Agency has four Grants and Contributions funding programs:
- Participant Funding Program: Helps recipients and Indigenous communities prepare for, and participate in engagement activities conducted by the Agency or review panels.
- Policy Dialogue Program: Support the provision of external advice and participation in the development of policies, methodologies, tools, and practices related to impact assessment, regional assessment, and strategic assessment.
- Indigenous Capacity Support Program: support the development of local and regional Indigenous knowledge and capacity in order to effectively participate in, or undertake project Impact Assessments (IA), regional and strategic assessments, policy engagement, IA monitoring and follow-up activities, and IAA related activities.
- Research Program: promote and disseminate new and innovative research that furthers the practice of IA, including regional / strategic assessments.
2019-2020 Supplementary Estimates B
Q. The Agency has requested two items from 2019-2020 Supplementary Estimates B - could you elaborate?
- Yes, there were two interdepartmental transfers, one from Natural Resources Canada to manage its participant funding program, this is a continuation of an agreement first signed in 2016-2017. The other transfer is to Environment and Climate Change Canada (ECCC) to provide support towards operating pressures.
- The first transfer, through an interdepartmental letter of agreement, is to support the administration of Natural Resources Canada’s participant funding for consultations with Indigenous groups for projects. The Major Projects Management Office in Natural Resources Canada has assumed the role of Crown Consultation Coordinator for Indigenous consultations for (section 52) pipelines and other major projects whose review falls under the responsibility of the Canada Energy Regulator (formerly the National Energy Board). The Agency will provide internal services to facilitate the administration of the funding program and issue payments on behalf of Natural Resources Canada.
- The second transfer is from the Impact Assessment Agency of Canada to ECCC in the order of $2M for operating pressures. ECCC is the lead department for a wide range of environmental issues, which continue to be a top priority of this government. In this context, ECCC is facing emerging priorities and financial pressures which contributes to a very tight financial situation for 2019-2020.
- These two items net to $1.8 million in 2019-2020.
Copy of 2020-2021 Main Estimates
Impact Assessment Agency of Canada
Raison d’être
The Minister of Environment and Climate Change is responsible for this organization.
Impact assessment contributes to informed decision making.
The Impact Assessment Agency of Canada delivers high-quality impact assessments in support of government decisions about major projects.
Additional information can be found in the Agency’s Departmental Plan.
Organizational Estimates (dollars)
| - | 2018–19 Expenditures |
2019–20 Main Estimates |
2019–20 Estimates to date |
2020–21 Main Estimates |
|---|---|---|---|---|
| Budgetary | ||||
Voted
|
||||
1 Operating expenditures
|
38,961,285 | 53,511,120 | 51,676,270 | 51,710,081 |
5 Grants and contributions
|
5,089,492 | 14,525,184 | 14,525,184 | 18,939,140 |
Total Voted
|
44,050,777 | 68,036,304 | 66,201,454 | 70,649,221 |
Total Statutory
|
3,513,244 | 6,138,709 | 6,138,709 | 5,834,174 |
| Total Budgetary | 47,564,021 | 74,175,013 | 72,340,163 | 76,483,395 |
2020–21 Main Estimates by Purpose (dollars)
| Operating | Capital | Transfer Payments | Revenues and other reductions | Total | |
|---|---|---|---|---|---|
| Budgetary | |||||
| Impact Assessment | 55,713,467 | 0 | 18,939,140 | (8,001,000) | 66,651,607 |
| Internal Services | 9,831,788 | 0 | 0 | 0 | 9,831,788 |
| Total | 65,545,255 | 0 | 18,939,140 | (8,001,000) | 76,483,395 |
Listing of the 2020–21 Transfer Payments (dollars)
| 2018–19 Expenditures |
2019–20 Main Estimates |
2020–21 Main Estimates |
|
|---|---|---|---|
| Grants | |||
| Grants to support the participation of the public and Indigenous groups in impact assessment and to support impact assessment-related research | 0 | 400,000 | 2,500,000 |
| Contributions | |||
| Contributions to support the participation of the public and Indigenous groups in impact assessment and policy dialogue, and to support the development of Indigenous knowledge and capacity related to impact assessments and related activities - Participant Funding Program, Policy Dialogue Program and Indigenous Capacity Program | 0 | 8,310,184 | 14,724,140 |
| Contributions to support the participation of the public and Indigenous groups in environmental assessment and policy dialogue, and to support the development of Indigenous knowledge and capacity related to environmental assessments and related activities – Participant Funding Component, Policy Dialogue Component and Indigenous Capacity Component | 4,743,997 | 4,469,500 | 1,469,500 |
| Contribution to the Province of Quebec – James Bay and Northern Quebec Agreement | 245,500 | 245,500 | 245,500 |
Listing of Statutory Authorities (dollars)
| - | 2018–19 Expenditures |
2019–20 Estimates to date |
2020–21 Main Estimates |
|---|---|---|---|
| Budgetary | |||
| Contributions to employee benefit plans | 3,513,244 | 6,138,709 | 5,834,174 |
Copy of 2019-2020 Supplementary Estimates B
Impact Assessment Agency of Canada
Organization Summary (dollars)
| - | Authorities to date | These Supplementary Estimates - Transfers | These Supplementary Estimates - Adjustments | Proposed Authorities to date |
|---|---|---|---|---|
| Budgetary | ||||
| Voted | ||||
| 1b Operating expenditures | 55,683,125 | (1,834,850) | 0 | 53,848,275 |
| 5 Grants and contributions | 14,525,184 | 0 | 0 | 14,525,184 |
| Total Voted | 70,208,309 | (1,834,850) | 0 | 68,373,459 |
| Total Statutory | 6,138,709 | 0 | 0 | 6,138,709 |
| Total Budgetary Expenditures | 76,347,018 | (1,834,850) | 0 | 74,512,168 |
Note: Additional details by organization are available on the Treasury Board Secretariat website.
Explanation of Requirements (dollars)
| - | Vote No. | Amount ($) |
|---|---|---|
| Budgetary | ||
Transfers
|
||
Transfers from Other Organizations
|
||
From the Department of Natural Resources to the Impact Assessment Agency of Canada to administer Natural Resourcesʼ participant funding program
|
Vote 1b | 165,150 |
Transfers to Other Organizations
|
||
From Impact Assessment Agency of Canada to the Department of the Environment for operating pressures
|
Vote 1b | (2,000,000) |
Total Transfers
|
(1,834,850) | |
| Total Budgetary | (1,834,850) | |
IAAC Supplementary Estimates B - Description of Items
Total ($1,834,850)
Transfers from other organizations
From the Department of Natural Resources to the Impact Assessment Agency of Canada to administer Natural Resourcesʼ participant funding program ($165,150)
The transfer, through an interdepartmental letter of agreement, is to support the administration of Natural Resources Canada’s (NRCan) participant funding for consultations with Indigenous groups for projects. The Major Projects Management Office in NRCan has assumed the role of Crown Consultation Coordinator for Indigenous consultations for section 52 pipelines and other major projects whose review falls under the responsibility of the Canada Energy Regulator (formerly the National Energy Board). The Agency will provide internal services to facilitate the administration of participant funding for consultations for projects and issue payments on behalf of NRCan.
Transfers to other organizations
From the Impact Assessment Agency of Canada to the Department of the Environment for operating pressures ($2,000,000)
In order to help reduce ECCC’s financial operating pressures for 2019-20, Impact Assessment Agency of Canada (IAAC) is in agreement to transfer $2M in operating funds to ECCC through the final 2019-20 Supplementary Estimates. ECCC is the lead department for a wide range of environmental issues, which continue to be a top priority of this government. In this context, ECCC is facing emerging priorities and financial pressures, which contributes to a very tight financial situation for 2019-20. ECCC has currently funded over $16.1M in Operating pressures for 2019-20 and is currently facing an additional $7.4M in non discretionary operating pressures to fund for 2019-20.
Note that in recent years, such as in the Supplementary Estimates 2017-18, ECCC transferred $1M in operating funds to the Canadian Environmental Assessment Agency (CEAA) to help ease operating pressures. Central agencies were supportive of the approach to temporarily reallocate authorities from within the Minister of Environment’s Portfolio to address temporary pressures.
Furthermore, in the Supplementary Estimates 2016-17, ECCC transferred $1M in operating funds to CEAA for the Participant Funding Program. At that time, CEAA had identified a funding pressure after receiving and reviewing the requests from the Participant Funding Program against the Program’s initial funding allocation. This transfer was to address unforeseen budgetary pressures related to the CEAA’s Participant Funding Program. At the time, central agencies had requested that ECCC explore options to temporarily reallocate authorities from within the Minister of Environment’s Portfolio to address this pressure.