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Vol. 135, No. 40 — October 6, 2001
Proclamation Amending the Chicken Farmers of Canada Proclamation
Statutory Authority
Farm Products Agencies Act
Sponsoring Department
Department of Agriculture and Agri-Food
REGULATORY IMPACT ANALYSIS STATEMENT
Description
The Chicken Farmers of Canada Proclamation (the Proclamation), made under the Farm Products Agencies Act, establishes the membership of the Chicken Farmers of Canada (CFC), provides for the manner and term of appointments to its board of directors (Part I) and specifies the terms of the marketing plan that the CFC is empowered to implement (Part II).
The amendments to Part I of the Proclamation will allow the British Columbia Chicken Marketing Board to become a member of the CFC. All 10 provinces would then be members of the CFC. As well, the CFC may exercise its powers in relation to chicken and any part of a chicken, live or in processed form, produced in Canada and marketed in interprovincial or export trade. The Northwest Territories, the Yukon Territory, and Nunavut have not expressed interest in becoming members of the CFC as there is virtually no chicken production in these areas.
Amendments to Part II of the Proclamation provide for the CFC to implement and administer a revised quota allocation system which is set out in greater detail in Schedule B of the Federal-Provincial Agreement for Chicken. These amendments will provide the necessary legal framework for a bottom-up approach to quota allocation and will introduce a degree of flexibility to allow the CFC to respond to changing market conditions while at the same time establishing safeguards to ensure changes in production levels are implemented in an orderly manner. Under the system specified in the existing Proclamation, allocation of quota to provinces is based on traditional market shares, and any increase to that number is made through the application of a number of weighted criteria. This system has proven to be too rigid and inflexible to allow for any significant growth in production by any one province.
The Proclamation is Schedule A to the Federal-Provincial Agreement for Chicken and in general terms, sets out how the CFC can exercise its powers to implement the terms of its marketing plan. Schedule B, the Operating Agreement, prescribes in greater detail how the CFC will operate its quota, levy and licensing systems. The Federal-Provincial Agreement, itself, sets out the responsibilities of the partners in the system, i.e. federal and provincial ministers, provincial supervisory boards, the provincial commodity boards and the CFC.
Alternatives
No alternatives have been considered and no alternative method exists that would allow the British Columbia Chicken Marketing Board to become a member of the CFC. Likewise, no alternative method exists that would authorize the CFC to implement and administer a quota allocation system other than that specified in Part II of the Proclamation.
Benefits and Costs
Adding British Columbia to the CFC will allow, on a national basis, for greater price and production stability in the industry, foster greater orderly marketing of the regulated product and provide for a stable base for economic growth and development in British Columbia's chicken industry. Improvements to CFC's quota allocation system will enhance the CFC's ability to address changing market conditions on a provincial basis, introduce much needed flexibility into the system and provide stability nationally for industry expansion.
The expenses incurred to operate provincial and national orderly marketing systems are borne by primary producers. The expenses for an additional member to attend CFC board of directors' meetings will be paid from the operating budget of the CFC. This action will not result in any costs to the Government of Canada.
Consultation
In July 1998, the federal, provincial and territorial ministers of Agriculture directed the CFC to revise the Federal-Provincial Agreement for Chicken to reflect the more market responsive and flexible quota system which had been developed by the chicken industry. Consultation on this initiative by the CFC has been extensive. Downstream industry stakeholders, i.e. the Canadian Poultry and Egg Processors Council, the Further Poultry Processors Association of Canada, and the Canadian Restaurant and Foodservices Association, contributed significantly to the development of a revised quota system and all favour the proposed Proclamation amendments.
Federal and provincial ministers of Agriculture (including ministers of Intergovernmental Affairs from Quebec and Newfoundland and Labrador) have signed a renewed Federal-Provincial Agreement for Chicken which included, as a Schedule, the CFC's Proclamation incorporating the proposed amendments. Subsequently, all provincial supervisory boards and producer chicken boards signed the Agreement. By doing so, these organizations signalled their support for the changes to the Proclamation.
Compliance and Enforcement
Following amendments to its Proclamation, the CFC can apply its regulations governing the marketing of the regulated product in interprovincial and export trade to British Columbia. As well, the amendments establish a strong legal foundation for the bottom-up approach to quota allocation which will be reflected in the CFC's quota regulations. These regulations must be approved by the National Farm Products Council (the federal government supervisory body) before they can be enacted. The Council is responsible for monitoring the CFC's operations and advising the Minister of Agriculture and Agri-Food.
Contact
Keith Wilkinson, Director, Domestic Policy and Programmes, National Farm Products Council, Canada Building, 10th Floor, 344 Slater Street, Ottawa, Ontario K1R 7Y3, (613) 995-6752 (Telephone), wilkinsonk@em.agr.ca (Electronic mail).
PROPOSED REGULATORY TEXT
Notice is hereby given that the Governor in Council, pursuant to paragraph 17(1)(a) and subsection 17(2) (see footnote a) of the Farm Products Agencies Act (see footnote b), proposes to direct that a Proclamation do issue amending the Chicken Farmers of Canada Proclamation (see footnote c), in accordance with the annexed schedule.
Interested persons may make representations with respect to the proposed Proclamation within 15 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Keith Wilkinson, Director, Domestic Policy and Programmes, National Farm Products Council, 344 Slater Street, 10th Floor, Canada Building Ottawa, Ontario K1R 7Y3. Telephone: (613) 995-6752; Facsimile: (613) 995-2097; E-mail: wilkinsonk@em.agr.ca.
Ottawa, October 4, 2001
RENNIE M. MARCOUX
Acting Assistant Clerk of the Privy Council
SCHEDULE
1. The first to fifth (see footnote 1) paragraphs of the Chicken Farmers of Canada Proclamation (see footnote 2) are replaced by the following:
WHEREAS in and by subsection 16(1) of the Farm Products Agencies Act it is provided that the Governor in Council may, by proclamation, establish an agency with powers relating to any farm product or farm products the marketing of which in interprovincial and export trade is not regulated pursuant to the Canadian Wheat Board Act or the Canadian Dairy Commission Act where the Governor in Council is satisfied that a majority of the producers of the farm product or of each of the farm products in Canada is in favour of the establishment of an agency;
AND WHEREAS the Governor in Council is satisfied that a majority of the producers of chicken in Canada is in favour of the establishment of such an agency;
NOW KNOW YOU that We, by and with the advice of Our Privy Council for Canada, do by this Our Proclamation establish an agency, to be known as Chicken Farmers of Canada, consisting of fourteen members appointed in the manner and for the terms set forth in the schedule hereto;
AND KNOW YOU FURTHER that We are pleased to designate chicken and any part thereof produced in Canada and marketed in interprovincial or export trade as the farm product in relation to which Chicken Farmers of Canada may exercise its powers;
AND KNOW YOU FURTHER that We are pleased to specify that the manner of designation of the Chairperson and Vice-Chairperson of Chicken Farmers of Canada, the place within Canada where the head office of Chicken Farmers of Canada is situated and the terms of the marketing plan that Chicken Farmers of Canada is empowered to implement shall be as set forth in the schedule hereto;
2. (1) The definitions "Agency" (see footnote 3) and "non-signatory provinces" (see footnote 4) in section 1 of the schedule to the Proclamation are repealed.
(2) The definitions "Act", "Canadian Poultry and Egg Processors Council", "chicken" (see footnote 5), "Commodity Board" (see footnote 6), "producer" and "signatory provinces" (see footnote 7) in section 1 of the schedule to the Proclamation are replaced by the following:
"Act" means the Farm Products Agencies Act; (Loi)
"Canadian Poultry and Egg Processors Council" means the Canadian Poultry and Egg Processors Council, a body corporate established in Canada by letters patent dated November 12, 1974; (Association canadien des transformateurs d'oeufs et de volailles)
"chicken" means chicken and any part of a chicken, live or in processed form, produced in Canada and marketed in interprovincial or export trade; (poulet)
"Commodity Board" means, in respect of the Province of
(a) Ontario, Chicken Farmers of Ontario,
(b) Quebec, Fédération des producteurs de volailles du Québec,
(c) Nova Scotia, Chicken Farmers of Nova Scotia,
(d) New Brunswick, New Brunswick Chicken Marketing Board,
(e) Manitoba, Manitoba Chicken Producers,
(f) British Columbia, British Columbia Chicken Marketing Board,
(g) Prince Edward Island, Prince Edward Island Poultry Meat Commodity Marketing Board,
(h) Saskatchewan, Chicken Farmers of Saskatchewan,
(i) Alberta, Alberta Chicken Producers, and
(j) Newfoundland, Newfoundland Chicken Marketing Board; (Office de commercialisation)
"producer" means a person who raises chickens for processing, for sale to the public or for use in products manufactured by the person; (producteur)
"signatory provinces" means all the provinces of Canada, except the non-signatory territories. (provinces signataires)
(3) The definition "Plan" in section 1 of the French version of the Schedule to the Proclamation is replaced by the following:
" Plan " Le plan de commercialisation dont les modalités sont stipulées dans la partie II de la présente annexe. (Plan)
(4) Section 1 of the schedule to the Proclamation is amended by adding the following in alphabetical order:
"CFC" means Chicken Farmers of Canada; (PPC)
"non-signatory territory" means the Yukon Territory, the Northwest Territories and Nunavut; (territoire non signataire)
"period" means the period of time, as established by CFC from time to time, during which chicken produced in a signatory province or in a non-signatory territory is authorized to be marketed; (période)
3. The heading "The Agency" before section 2 of the schedule to the Proclamation is replaced by the following:
Chicken Farmers of Canada
4. Subsections 2(1) to (4) (see footnote 8) of the schedule to the Proclamation are replaced by the following:
2. (1) The Commodity Board for a province may, at any time, appoint a person who is a resident of that province to be a member of CFC to hold office until the end of CFC's annual meeting in the calendar year following the year of appointment.
(2) The Canadian Poultry and Egg Processors Council may, at any time, appoint two persons who are residents of Canada and who are experienced in the business or trade of the processing of chicken meat to be members of CFC and each person so appointed shall hold office until the end of CFC's annual meeting in the second calendar year following the year of appointment.
(3) The Canadian Restaurant and Food Service Association may, at any time, appoint a person who is a resident of Canada and who is experienced in the business or trade of supplying prepared foods to consumers to be a member of CFC to hold office until the end of CFC's annual meeting in the second calendar year following the year of appointment.
(4) The Further Poultry Processors Association of Canada may, at any time, appoint a person who is a resident of Canada and who is experienced in the business or trade of the further processing of chicken meat to be a member of CFC to hold office until the end of CFC's annual meeting in the second calendar year following the year of appointment.
5. Section 4 (see footnote 9) of the schedule to the Proclamation is replaced by the following:
4. The head office of CFC shall be situated in the City of Ottawa, in the Province of Ontario.
6. Section 5 of the schedule to the Proclamation is replaced by the following:
5. In this Part,
"Board" means, in respect of the Province of
(a) Ontario, Ontario Farm Products Marketing Commission,
(b) Quebec, Régie des marchés agricoles et alimentaires du Québec,
(c) Nova Scotia, Nova Scotia Natural Products Marketing Council,
(d) New Brunswick, New Brunswick Farm Products Commission,
(e) Manitoba, Manitoba Natural Products Marketing Council,
(f) British Columbia, British Columbia Marketing Board,
(g) Prince Edward Island, Prince Edward Island Marketing Council,
(h) Saskatchewan, Agri-Food Marketing Council,
(i) Alberta, Alberta Agricultural Products Marketing Council, and
(j) Newfoundland, Newfoundland Agricultural Products Marketing Board; (Régie)
"marketing", in relation to chicken, includes selling and offering for sale and buying, pricing, assembling, packing, processing, transporting, storing and any other act necessary to prepare the chicken in a form, or to make it available at a place and time, for purchase for consumption or use; (commercialisation)
"Operating Agreement" means Schedule B to the Federal-Provincial Agreement for Chicken, as amended from time to time; (entente opérationnelle)
"quota" means
(a) in respect of a non-signatory territory, the number of kilograms of chicken, expressed in eviscerated weight, that a person is entitled to market in interprovincial trade into the signatory provinces during a period, and
(b) in respect of a signatory province, the number of kilograms of chicken, expressed in live weight, that a producer is entitled to market in interprovincial or export trade during a period; (contingent)
"quota system" means the system established by CFC by which
(a) in respect of a non-signatory territory, CFC allots quotas to persons in the non-signatory territory, and
(b) in respect of a signatory province, the appropriate Board or Commodity Board allots quotas to producers of that province on behalf of CFC thus allowing CFC, in respect of a non-signatory territory, or a Board or Commodity Board, in respect of the signatory provinces, to fix and determine the quantity, if any, in which chicken of any variety, class or grade, may be marketed in interprovincial or export trade. (contingentement)
7. The heading before section 6 of the schedule to the Proclamation is replaced by the following:
Establishment of a Quota System
8. Subsections 6(2) to (6) (see footnote 10) of the schedule to the Proclamation are replaced by the following:
(2) CFC may, by order or regulation, establish a quota system for one or more non-signatory territories allowing CFC to fix and allot quotas to any person in a non-signatory territory engaged in the interprovincial marketing of chicken and to determine, for the purposes of orderly marketing, the quantity of chicken produced in a non-signatory territory that may be marketed into the signatory provinces, and the conditions under which it may be so marketed.
(3) CFC may reduce or may refuse to allot, for subsequent periods and in any manner and to any extent that it considers appropriate, the quota of a producer who has produced and marketed chicken in excess of a quota previously allotted to that person.
(4) In establishing a quota system in accordance with subsection (1), CFC shall establish its allocation for each signatory province for a year in such a manner that the aggregate of the numbers following in respect of that province is equal to the number of kilograms of chicken set out in the table to subsection (5) for the year in respect of that province:
(a) the number of kilograms of chicken produced in the province and authorized to be marketed in interprovincial and export trade in the year, under quotas allotted on behalf of CFC by the appropriate Board or Commodity Board,
(b) the number of kilograms of chicken produced in the province and authorized to be marketed in intraprovincial trade in the year, under quotas allotted by the appropriate Board or Commodity Board, and
(c) the number of kilograms of chicken produced in the province and anticipated to be marketed in the year, as authorized other than by quotas.
(5) The number of kilograms of chicken initially established for a year in respect of a signatory province set out in column 1 of the table to this subsection is the number of kilograms set out in column 2.
TABLE
Item |
Column 1 Signatory Province |
Column 2 Live Weight in Kilograms |
|---|---|---|
| 1. | Ontario | 137,200,000 |
| 2. | Quebec | 118,596,000 |
| 3. | Nova Scotia | 15,075,000 |
| 4. | New Brunswick | 10,208,000 |
| 5. | Manitoba | 15,773,000 |
| 6. | British Columbia | 36,088,000 |
| 7. | Prince Edward Island | 737,000 |
| 8. | Saskatchewan | 9,130,000 |
| 9. | Alberta | 27,053,000 |
| 10. | Newfoundland | 2,784,000 |
(6) In establishing a quota system in accordance with subsection (2), CFC shall establish its allocation for each non-signatory territory in such a manner that the number of kilograms of chicken produced in the non-signatory territory and authorized to be marketed in interprovincial trade into the signatory provinces in a year, under quotas allotted by CFC, equals the average number of kilograms of chicken produced in the non-signatory territory, and marketed in interprovincial trade into the signatory provinces, in a year, during the five years beginning on January 1, 1986 and ending on December 31, 1990.
(7) Despite subsection (6), CFC may establish the initial and any subsequent allocation to a non-signatory territory for a period other than a year.
9. Sections 7 (see footnote 11) and 7.1 (see footnote 12) of the schedule to the Proclamation are replaced by the following:
Changes to Quota Allocation
7. (1) Unless the process set out in the Operating Agreement for making changes to quota allocation has been followed, no order or regulation shall be made with respect to the allocation to a signatory province if its effect would be to increase or decrease, to a number that is different on a yearly basis from the number of kilograms of chicken set out in respect of that province in the table to subsection 6(5), the aggregate of
(a) the number of kilograms of chicken produced in the province and authorized to be marketed in interprovincial and export trade, under quotas allotted on behalf of CFC by the appropriate Board or Commodity Board, and to be marketed in intraprovincial trade, under quotas allotted by the appropriate Board or Commodity Board, and
(b) the number of kilograms of chicken produced in the province and anticipated to be marketed in intraprovincial, interprovincial and export trade as authorized other than by quotas.
(2) Despite subsection (1) and section 6, subsequent to the initial allocation made in accordance with section 6, CFC may allocate quotas to a signatory province for a period other than a year.
(3) No order or regulation shall be made with respect to a non-signatory territory if its effect would be to increase or decrease the number of kilograms of chicken produced in the non-signatory territory and authorized to be marketed in interprovincial trade into the signatory provinces, under quotas allotted by CFC, to a number that is different on a yearly basis, from the number of kilograms of chicken referred to in subsection 6(6), unless the increase or decrease is in the same proportion as the average increase or decrease in an order or regulation made by CFC with respect to the signatory provinces in accordance with this section.
10. The portion of section 8 of the schedule to the Proclamation before paragraph (a) is replaced by the following:
8. The quota allocation for a signatory province or a non-signatory territory
11. Section 9 of the schedule to the Proclamation is replaced by the following:
9. If a delegation is made under subsection 22(3) of the Act, CFC shall, by order, prescribe the function that is to be performed on behalf of CFC and the limitations, if any, imposed on the Board or Commodity Board in the exercise of that function.
12. Subsection 11(1) (see footnote 13) of the schedule to the Proclamation is replaced by the following:
11. (1) CFC shall, with respect to the signatory provinces, and may, with respect to a non-signatory territory, by order or regulation, establish a system for the licensing of persons who are engaged in the marketing of chicken in interprovincial or export trade, and the system may provide for the payment to CFC of fees in respect of each licence issued and for the prohibition of predatory marketing practices.
(2) Paragraph 11(2)(b) of the schedule to the Proclamation is replaced by the following:
(b) the conditions under which the marketing of chicken may take place in interprovincial or export trade.
13. (1) Subsection 12(1) of the schedule to the Proclamation is replaced by the following:
12. (1) CFC may, with respect to the signatory provinces, by order or regulation, impose levies or charges on persons engaged in the production or marketing of chicken and any such order or regulation may classify such persons into groups and specify the levies or charges payable by members of each such group and provide for the manner of their collection.
(2) Subsection 12(3) of the schedule to the Proclamation is replaced by the following:
(3) CFC, in estimating its administrative and marketing expenses and costs for a year, may allow for the creation of reserves, the payment of expenses and losses resulting from the sale or disposal of chicken, as CFC considers appropriate, and any other expenses and costs deemed essential by CFC for the realization of its objects.
14. The schedule to the Proclamation is amended by adding the following after section 12:
Debts Payable to CFC
12.1 Licence fees, levies or charges prescribed by orders and regulations of CFC become debts payable to CFC at the time prescribed in the orders or regulations.
15. Section 13 (see footnote 14) of the schedule to the Proclamation is replaced by the following:
13. With respect to chicken produced in a signatory province and to chicken produced in a non-signatory territory and shipped into a signatory province in interprovincial trade and not for export, CFC shall exercise its powers in such a manner as to preclude any person from selling chicken in a signatory province, other than the signatory province or non-signatory territory in which the chicken is produced, at a price that is less than the aggregate of
(a) the price charged at or about the same time by the trade for similar sales of chicken of an equivalent variety, class or grade in the signatory province or non-signatory territory in which the chicken is produced, and
(b) any reasonable transportation charges for shipping that chicken to the place where it is marketed.
16. The schedule to the Proclamation is amended by replacing "The Agency", "the agency" and "the Agency" with "CFC" wherever they occur in the following provisions:
(a) subsection 2(5);
(b) section 3;
(c) subsection 6(1);
(d) section 10;
(e) subsection 11(2);
(f) subsection 12(2);
(g) subsection 12(4); and
(h) sections 14 and 15.
[40-1-o]
Order Amending the Environmental Assessment Review Panel Service Charges Order
Statutory Authority
Financial Administration Act
Sponsoring Agency
Canadian Environmental Assessment Agency
REGULATORY IMPACT ANALYSIS STATEMENT
Description
The Canadian Environmental Assessment Act (the Act) sets out responsibilities and procedures for environmental assessment (EA) of projects involving the federal government. Specifically, the Act establishes a duty of the Canadian Environmental Assessment Agency (the Agency) to provide administrative support for EA review panels.
Work on cost recovery began following the 1995 Budget, which stated:
"the Minister of the Environment will develop, in consultation with concerned ministers, provinces and stakeholders, proposals for recovering all costs attributable to environmental assessments as well as options for streamlining procedures and timelines for the environmental assessment process."
In April 1997, a series of measures were announced to improve the efficiency of environmental assessments. These efficiency improvement measures included the Federal Coordination Regulations and new procedures for assessments by review panels that included time lines and performance standards for the conduct of these panel reviews.
The Government also announced that cost recovery would be implemented in a manner consistent with the Treasury Board's new Cost Recovery and Charging Policy, including periodic reviews of the initiative and an assessment of its effects on competitiveness. With respect to the conducting of panel reviews under the Act, only the Agency's costs directly attributable to the activities of a review panel were deemed suitable for recovery from a proponent. Therefore, revenues generated from cost recovery do not fund ongoing operational activities of the Agency. Other key principles that guided the development of the costrecovery model were that only the actual costs incurred in conducting a review panel would be recovered and that costs would be transparent and verifiable.
The Agency developed the approach to cost recovery for review panels in consultation with industry and other federal departments and agencies. In 1998, the Minister of the Environment made the Environmental Assessment Review Panel Service Charges Order (SOR/98-443) [the Order], which prescribes fees to recover standard direct costs for review panels established under the Act. The Order allows the Minister of the Environment to prescribe fees to recover the direct costs that can be determined in advance of the review panel. Additional costs that are eligible for cost recovery, but because of their nature, cannot be determined in advance of the panel review, are fixed in an open and transparent process through a memorandum of understanding (MOU) with proponents. These costs are typically driven by the location and complexity of the project, which have a high degree of variability and cannot be predicted. Together, these instruments are the basis for determining the total amount eligible for recovery from proponents. This system focuses on the recovery of the Agency's direct costs from project proponents.
The main components of the cost-recovery system for each review panel process include an up-front cost-estimate document negotiated with proponents in the form of an MOU; cost recovery based on actual costs incurred, not through set fees based on averages; careful tracking and reporting of actual costs incurred for recovery, including cost verification through an independent third party audit process; and a full dispute resolution mechanism. Key process efficiency measures, such as the panel procedures guideline, serve as performance standards for cost-recovery.
Charge rates that can be determined in advance of a review panel and that are incorporated in the fee schedule include salary rates related to the support and analysis of the panel, panel member per diems, information office rates, travel rates, and printing, publishing and distribution rates. Charges appropriate for recovery with rates that cannot be determined in advance include technical expert and analysis fees, public announcement and release costs, and public meeting costs.
The Order does not apply to federal authorities that are project proponents, or to projects in which the only involvement of federal authorities is the provision of funds for the project. The Order is also not applicable to provincial or territorial governments acting as project proponents, except in the case of provincial Crown corporations. In addition, the Order does not apply to comprehensive land claims processes or band councils, as defined in accordance with the Indian Act, that are project proponents.
A 2001 review of the cost-recovery system led the Agency to conclude that a certain number of issues should be immediately addressed in the Order. The amendments — described below — are either of an administrative nature, or are designed to bring consistency and fairness in the application of the Order.
The amendment to the definition of "review panel" — section 1 — would allow the Agency to recover its costs where a review panel is established jointly with a federal authority having, as part of its own statutory or regulatory regime, a responsibility or an authority to conduct an assessment of the environmental effects of the project. The original wording of the Order prevented the Agency from recovering its costs in this situation.
The change will allow the Agency to recover its costs in relation to joint panels established with federal authorities such as the National Energy Board, the Canada-Newfoundland Offshore Petroleum Board, the Canada-Nova Scotia Offshore Petroleum Board, and the Canadian Nuclear Safety Commission. The change will also clarify that the Agency can recover its costs in relation to joint panels with the Mackenzie Valley Environmental Impact Review Board, established under subsection 40(2.1) of the Act. The amendment will therefore ensure that Agency costs in relation to all panel reviews are recovered consistently and fairly for similar projects.
Subsection 2(1) of the amendment will simplify comprehension of the Order by clarifying that it applies only to the direct costs of the Agency, and not to the costs of other federal departments or agencies. It will not result in any substantive change in the application of the Order. Paragraph 2(2)(a) conveys the same intent as paragraph 2(a) of the original Order by indicating that the amendment does not apply to federal authorities that are project proponents. Paragraphs 2(2)(b) to (d) convey the same intent as paragraph 2(c) of the original Order. The insertion of an exclusion of the Government of Nunavut, as well as any agency or body of that Government, from the application of the Order, will bring Nunavut in line with the other territories. Nunavut was not addressed in the original Order because the letter was made before Nunavut came into existence.
Subsection 3(1) established by the amendment will have the same intent as section 3 of the original Order. The intent of subsection 3(2) of the amendment — the exclusion of a project in which the involvement of a federal authority is limited to the provision of funding — is the same as that of paragraph 2(b) of the original Order. The intent of subsection 3(3) of the amendment — the exclusion of any charges relating to members of a review panel appointed before August 26, 1998 — is in harmony with paragraph 2(d) and section 4 of the original Order.
Alternatives
The only possible alternative would be the status quo. This alternative would be inequitable, and would prevent the Agency from recovering its costs in relation to joint panels with federal authorities and with the Mackenzie Valley Environmental Impact Review Board; it would fail to clarify that the Order applies only to the direct costs of the Agency, and not to the costs of other federal departments or agencies; and it would result in the Government of Nunavut, unlike the other territories, being subject to the application of the Order.
Benefits and Costs
On average, over the past three years the Agency spent $0.4 million annually to support panel reviews. This amount does not take into consideration the full costs, which include overhead, depreciation, capital, accommodation and other costs.
These costs could substantially increase if a number of joint panels were established with federal authorities such as the National Energy Board, the Canada-Newfoundland Offshore Petroleum Board, the Canada-Nova Scotia Offshore Petroleum Board and the Canadian Nuclear Safety Commission, or with the Mackenzie Valley Environmental Impact Review Board. In view of the possible establishment of a number of joint panels with the above entities over the next few years, the Agency will be able to recover its costs for similar projects consistently and fairly.
A priority in establishing the cost-recovery system was the need to separate Agency costs that benefit the public interest from those that directly benefit project proponents. Agency EA activities that benefit the public will continue to be funded through voted, tax-based appropriations. In addition, costs eligible for cost recovery must be avoidable. In other words, they are Agency costs that would not have occurred had the project under assessment not existed. Therefore, only direct and actual Agency costs incurred in conducting the review panels are recovered, and not full Agency costs. Through the establishment of the Order, approximately 65 percent of the full Agency costs for supporting each review panel are recovered.
Consultation
The amendment to the Order has been established following consultations with the Government of Nunavut; the National Energy Board, the Canada-Nova Scotia Offshore Petroleum Board, the Canada-Newfoundland Offshore Petroleum Board and the Canadian Nuclear Safety Commission, all of which are established under federal legislation and are authorized or required to carry out a public hearing as part of their project-application assessment processes; the James Bay Advisory Committee on the Environment and the Kativik Environmental Advisory Committee; the Mackenzie Valley Environmental Impact Review Board, the Nunavut Impact Review Board, the Inuvialuit Environmental Impact Review Board; the Agency's multi-sector stakeholder Regulatory Advisory Committee; and the Interdepartmental Senior Management Committee on Environmental Assessment.
No objections to the Amendment to the Order were raised.
Compliance and Enforcement
The Act empowers the Agency to provide administrative support for review panels. Through the approval of the Order in 1998, the Minister has the authority to set fees for providing this service to review panels. Beyond the financial obligations imposed by regulations, no other compliance or enforcement mechanisms are contemplated. Overdue accounts or late payments are considered debt owing the Crown, and through the authority of the Minister, are enacted accordingly.
Contact
Mr. Ian Ferguson, Canadian Environmental Assessment Agency, 200 Sacré-Cœur Boulevard, 14th Floor, Hull, Quebec K1A 0H3, (819) 997-2217.
PROPOSED REGULATORY TEXT
Notice is hereby given that the Minister of Environment pursuant to Order in Council P.C. 1998-1495 of 26 August 1998, made pursuant to paragraph 19(1)(b) of the Financial Administration Act, proposes to make the annexed Order Amending the Environmental Assessment Review Panel Service Charges Order.
Any interested person may make representation concerning the proposed Order within 30 days after the date of publication of this notice. All such representations must be addressed to the person listed below and cite the Canada Gazette, Part I, and the date of this notice.
Peter Sherhols
Director
Policy Analysis
Canadian Environmental Assessment Agency
14th Floor, Fontaine Building
200 Sacré-Cœur Boulevard
Hull, Quebec K1A 0H3
ORDER AMENDING THE ENVIRONMENTAL ASSESSMENT REVIEW PANEL SERVICE CHARGES ORDER
AMENDMENTS
1. The definition "review panel" in section 1 of the Environmental Assessment Review Panel Service Charges Order (see footnote 15) is replaced by the following:
"review panel" means a body established pursuant to section 33 of the Act to conduct an environmental assessment of a project and consider factors required to be considered under subsections 16(1) and (2) of the Act, and includes a review panel established pursuant to subsection 40(2) or (2.1) of the Act. (commission)
2. Section 2 of the Order is replaced by the following:
2. (1) This Order prescribes the charges to be paid by proponents of projects for services that are provided by the Agency.
(2) This Order does not apply to the following proponents:
(a) a federal authority within the meaning of subsection 2(1) of the Act;
(b) the Commissioner in Council or an agency or body of the Yukon Territory, the Northwest Territories or Nunavut;
(c) the council of a band within the meaning of the Indian Act; and
(d) a provincial government, except in the case of a provincial Crown corporation.
3. Section 3 of the Order is renumbered as subsection 3(1) and is amended by adding the following:
(2) No charges are payable with respect to a project in which the involvement of a federal authority within the meaning of subsection 2(1) of the Act is limited to the provision of funding.
(3) No charges are payable with respect to services where the members of the review panel were appointed before August 26, 1998.
COMING INTO FORCE
4. This Order comes into force on the day on which it is registered.
[40-1-o]
S.C. 1993, c. 3, s. 9(2)
S.C. 1993, c. 3, s. 2
SOR/79-158; SOR/98-244
SOR/98-244
SOR/79-158; SOR/98-244
SOR/98-244
SOR/91-139
SOR/91-139
SOR/91-139
SOR/91-139
SOR/96-141
SOR/84-808
SOR/91-139
SOR/91-139
SOR/91-139
SOR/91-139
SOR/91-139
SOR/98-443
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