Environment and Sustainable Development

The House of Commons Standing Committee on Environment and Sustainable Development met to study the main estimates and operations of the Impact Assessment Agency of Canada and the Canada Water Agency. Appearing as witnesses were Patricia Brady, Ian Ketcheson, and Éric Landry from the Impact Assessment Agency, and Gemma Boag, Véronique Hiriart-Baer, and Justyna Frobisher from the Canada Water Agency.

Patricia Brady explained that the Impact Assessment Agency conducts assessments of major projects, with an average of eight projects per year entering the federal process since 2019, and that approximately 40% are completed within six months at an early stage. She noted the agency is reforming processes to complete comprehensive assessments within two years by focusing on key federal issues, using new tools like artificial intelligence, and relying on provincial processes where overlap exists. She highlighted the government’s commitment to “one project, one review” co-operation agreements with provinces, with a draft agreement with New Brunswick posted for consultation, and stated that even without agreements, the agency can defer to provincial assessments.

Ian Ketcheson addressed the Desautel Supreme Court case, acknowledging that some U.S. indigenous nations may have section 35 rights in Canada, but stated the agency has not formally consulted those groups on active projects, though it works with British Columbia to ensure their concerns are heard. He emphasized the agency’s priority is ensuring full participation of potentially affected indigenous communities, working with over 300 communities across the country to understand impacts and carry concerns to decision-makers.

Éric Landry described the agency’s co-operation with British Columbia through a memorandum of understanding that allows for substitution, where the provincial process meets both federal and provincial needs, citing the Cedar LNG project approved in about three and a half years. He noted that the agency supports the provincial process and coordinates federal participation, with provincial ministers and the federal minister making separate decisions. He also explained that under subsection 9(7) of the Impact Assessment Act, the minister cannot designate a project for assessment if another federal agency has granted a permit or disbursed funds, as occurred with the Montreal airport expansion.

Gemma Boag stated the Canada Water Agency, launched in October 2024, focuses on five key areas: restoring significant freshwater ecosystems, providing policy leadership, creating partnerships, promoting freshwater literacy, and translating science and data into decision-making. She noted the agency chairs a federal freshwater committee with 26 departments and works with provinces, territories, and indigenous partners on water boards and initiatives like a national freshwater data strategy. She added that the agency holds round tables on water issues and that its programs primarily address water quality, with some interventions improving resilience to floods and droughts.

Véronique Hiriart-Baer confirmed that the St. Lawrence River is covered under a freshwater ecosystem initiative, with the Canada-Quebec Agreement on the St. Lawrence running until 2026, and that negotiations are underway for a renewal from 2026 to 2036. She stated that funding for ZIP committees under that agreement will end in 2026 to avoid overlap with provincial regional round tables, but that ZIP committees can apply for funding through the Canada Water Agency’s EcoAction program, which supports community-led projects and is open to municipalities.

Justyna Frobisher confirmed that the Canada Water Agency was in scope for the government’s comprehensive expenditure review and submitted savings proposals, but she could not disclose their content due to cabinet confidence.

During questions, Patricia Brady clarified that the Building Canada Act streamlines multiple federal permits into one decision document within two years, but that impact assessments will still apply to projects listed under both acts. She stated that the agency does not conduct background checks on participants in public processes for foreign influence, as national security is not a factor under the Impact Assessment Act. She also noted that the agency has not measured the financial impacts of delays on proponents. Éric Landry added that the agency has a memorandum of understanding with the Canada Energy Regulator and is preparing for potential integrated assessments, though no projects are currently in the pipeline. The committee briefly debated a point of order regarding speaking time, but no motions or votes were recorded.