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Environmental Process Modernization Plan

DFO's Habitat Management Program (HMP) is a key federal regulatory program with a mandate to conserve and protect fish habitat. Delivery of its responsibilities under the Fisheries Act, the Canadian Environmental Assessment Act and now the Species at Risk Act (SARA) impacts on a wide range of individuals, businesses and communities all across Canada.

In 2004-2005, the Department continued to reform its Habitat Management Program with the implementation of its Environmental Process Modernization Plan (EPMP). The EPMP is aimed at providing more efficient and effective delivery of its habitat responsibilities, improved predictability and timeliness in decision making, improved harmonization of processes with others, particularly in the area of federal-provincial environmental assessments for major projects, and strengthening partnerships with others – be it other levels of government, the industry sector, non-government organizations and Aboriginals – to maximize opportunities to conserve and protect fish habitat in ways that respect the interests of others.

The EPMP supports the Government of Canada's "Smart Regulation" initiative by creating a more modern regulatory system that provides decisions in a more timely, efficient and effective manner that is "enabling" of sustainable development. The EPMP has received positive reviews by many stakeholders in 2004-2005 and was cited as a concrete and significant example of "smart regulation" in practice by an independent non-government body this past year.

In 2004-2005, the EPMP focussed on five key elements in modernizing its Habitat Management Program:

The first is the development and implementation of a science-based Risk Management Framework, so that Program resources and efforts can be re-allocated from the review of routine, low risk activities, to the review of projects with the greatest degree of risk to fish habitat of importance to Canadians. In 2004-2005, a Risk Management Framework was developed and successfully piloted in a number of cases, including the Yukon Placer mining industry, which formed the foundation of a new integrated regulatory regime for this industry.

Second, regulatory streamlining practices for low risk activities, which eliminate the need for repetitive and time-consuming reviews by DFO, are being developed and implemented. Management tools, such as "Operational Statements" and guidelines, are being created to identify up-front the mitigation measures needed to avoid harm to fish habitat for routine low risk activities in or near water. These tools provide proponents with the certainty they need to be in compliance with the Fisheries Act and the measures Canadians need to follow in order to protect our fish habitat. These initiatives will allow for the reallocation of effort and resources to the review higher risk activities and other activities like monitoring and watershed planning, by improving the efficiency and effectiveness of the review processes for low risk activities. In 2004-2005, DFO developed 13 Fisheries Act Operational Statements (OPS) – representing a majority of low risk activities reviewed by DFO annually - and steps were taken to support a "one-window" Provincial/Territorial delivery system for OPS where possible. In addition, a review of industry best management practices was undertaken in co-operation with industry partners to ensure that the appropriate habitat protection measures were included.

The third component of the EPMP involves internal improvements to program coherence and predictability. This includes the development of policy manuals for practitioners in the field, a mandatory training program for DFO's Habitat Management staff, improved internal governance and communications tools, and improved performance measures, evaluation and reporting to Canadians. In 2004-2005, progress was made in all of these areas. These internal initiatives are improving predictability in decision-making as well as program fairness and credibility, by ensuring that the "rules of the game" are know to all. The development of a habitat monitoring and performance measurement framework, scheduled to be implemented in 2005-2006, will encourage continuous learning and improvement and provide clear and transparent information to Canadians about HMP's results and how they will be measured.

The fourth EPMP component is a renewed emphasis on partnering with provinces, industry, Aboriginal groups, non-government organizations, and municipalities to identify and collaborate on common issues and priorities. This component recognizes that the regulatory system is part of a complex global system which requires meaningful partnering arrangements that reflect shared stewardship of this valuable resource. For example, in 2004-2005, DFO completed a formal cooperative Memorandum of Understanding (MOU) with Nova Scotia building on the recently signed MOUs with British Columbia, Prince Edward Island, and Manitoba. Negotiations on MOUs are underway with Newfoundland and Labrador, New Brunswick, Ontario and Saskatchewan and Yukon. In addition, DFO signed an agreement with seven major national resource industry associations (known as the National Resource Industry Associations) to complement an existing agreement with the Canadian Electrical Association. During the past year, work continued with other partners such as the Federation of Canadian Municipalities, Aboriginal groups and conservation groups. These partnerships and consultations are achieving the common objective of more effective and efficient protection of fish habitat and a better understanding by DFO of the interests and priorities of others.

As the fifth component of the EPMP, DFO developed and implemented a new management model for the environmental assessment of "major projects" – projects that are complex, multi-jurisdictional and have nationally significant socio-economic implications. This new approach is aimed at strengthening accountabilities at senior levels within the Department, improving interdepartmental co-ordination and communication, improving opportunities to harmonize federal and provincial reviews and facilitating more timely and more effective application of the environmental assessment process. In 2004-2005, DFO established a new organizational model for the management of environmental assessments of major projects in National Headquarters and the Regions, which included the development of new policies and protocols that further support the EPMP principles. For example, the Policy on early triggering of the Canadian Environmental Assessment Act (CEAA) was developed and implemented in order to improve timeliness of environmental assessments and the likelihood of harmonization with other jurisdictions and/or levels of government.

Near the end of 2004-2005, a sixth component, "habitat compliance modernization" was added to the EPMP implementation process. In 2005-2006, work will begin in this area that reflects the Program's increased emphasis on monitoring and auditing of its regulatory decisions and resourcing the full continuum of compliance activities - from compliance promotion, to enhanced compliance monitoring/auditing, to enforcement where necessary. As with the other elements of the EPMP, this new direction will, over time, provide for increased effectiveness in protecting fish habitat of value to Canadians.