1997-1998 ANNUAL REPORT OF THE COMMISSION
July 1997 - November 1998

• Objectives of the Agreement

• Specific Obligations of the Parties

• The Canada-Chile Commission for Environmental Cooperation

• Applications of the Agreement to Canada and Chile

• Canada

• Chile

• Bilateral Cooperative Achievements

• Contacts

The Canada-Chile Agreement on Environmental Cooperation (CCAEC) is the environmental side agreement to the Canada-Chile Free Trade Agreement. The CCAEC was signed in Ottawa, Canada on February 6, 1997 and entered into effect on July 5, 1997.

The Canada-Chile Commission for Environmental Cooperation (CCCEC) was established pursuant to the CCAEC. The Agreement also provides for the preparation of an Annual Report of the Commission and specifies a range of areas that the report shall cover. These include both the activities of the Commission and the actions taken by each Party in connection with its obligations under the Agreement, including reporting on enforcement activities.

The objectives of the agreement are to:

• foster the protection and improvement of the environment in both countries;

• promote sustainable development based on cooperation and mutually supportive environmental and economic policies;

• increase bilateral cooperation to better protect the environment;

• strengthen cooperation on the development and improvement of environmental laws, regulations, policies and practices;

• enhance compliance with, and enforcement of, environmental laws and regulations;

• support the environmental goals and objectives of the Canada-Chile Free Trade Agreement;

• avoid creating trade distortions or new trade barriers;

• promote transparency and public participation in the development of environmental laws, regulations and policies;

• promote efficient and effective environmental measures; and

• promote pollution prevention policies and practices.

Both Parties have agreed to enhance their environmental management systems in order to provide for high levels of environmental protection. This system shall ensure publication of laws and regulations respecting any matter covered by the Agreement. This commitment includes, to the extent possible, advance publication of proposed measures and provide opportunities for comment.

Both Parties have committed to ensuring that interested persons can request their competent authorities to investigate alleged violations of environmental laws and regulations and that persons with legally recognized interests have appropriate private access to remedies, processes or proceedings.

Both Parties have made specific commitments to ensure their administrative, quasi-judicial and judicial proceedings are open, fair and equitable.

Both Parties have committed to effectively enforce their environmental laws through appropriate government action. The Agreement provides for the participation of citizens, NGOs and governments with a view to ensuring that this commitment is kept. Citizens and NGOs may make submissions on enforcement matters to the Canada-Chile Commission on Environmental Cooperation asserting that a party is failing to effectively enforce its environmental laws. These provisions are found in Articles 14 and 15 of the Agreement. Part V of the Agreement provides a consultation and dispute resolution process that is available to Parties when a Party feels that the other is persistently failing to effectively enforce its environmental legislation.

In this Annual Report, Canada and Chile will report on actions undertaken to fulfill the specific obligations of the Parties under the Agreement.

The Canada-Chile Commission for Environmental Cooperation (CCCEC) comprises the Council, the Joint Public Advisory Committee (JPAC), and the Joint Submission Committee (JSC). The Commission is assisted in the implementation of the Agreement by two National Secretariats; one located in the territory of each Party.

The Council is the governing body of the Commission. The Honourable Christine Stewart, Canada’s Minister for the Environment is Canada’s representative on the Council. Rodrigo Egaña, Executive Director of Chile’s National Environmental Commission (CONAMA), is the Chilean Council member. The Council met for the first time in November 1998, in Santiago, Chile.

The Agreement defines the functions of the Council. The Council is responsible for overseeing the activities of the Commission and promoting and facilitating cooperation between the Parties with respect to environmental matters.

The role of the Joint Public Advisory Committee (JPAC) is to provide advice to the Council on all matters within the scope of the Agreement. The JPAC consists of six members, three appointed by each Party for a two year term to act as a single, independent, binational advisory body. The JPAC meets at the time of the annual session of the Council and at other times as determined by the Chair of the Committee with the consent of the members.

The purpose of the JPAC is to integrate an advisory mechanism of independent citizens into the official structure of an intergovernmental agreement. The JPAC acts as a link between the Council and people and organizations interested in the environment and trade relationship between Canada and Chile.

The Agreement provides that citizens or NGOs may file submissions on enforcement matters asserting that a Party is failing to effectively enforce its environmental laws. The Agreement establishes the Joint Submissions Committee (JSC) to provide independent consideration of submissions on enforcement matters. The Council has appointed one Canadian and one Chilean to serve on this committee which will be activated as necessary to consider submissions.

The CCAEC stipulates that each country shall establish a National Secretariat to support the activities of the Canada-Chile Commission for Environmental Cooperation. The Canadian National Secretariat is located at Environment Canada’s Headquarters. Its Executive Secretary is Andy Bowcott, International Relations Directorate, Policy and Communications Service. The Chilean National Secretariat is housed in the Chilean Commission for the Environment (Comisión Nacional del Medio Ambiente or CONAMA). Carlos Piña, Chief of International Policy Unit at CONAMA, is its Executive Secretary.

The Agreement is applicable to all environmental laws and regulations within the jurisdiction of the federal government in Canada. Canada has committed to make its best efforts to make the Agreement applicable to all of its provinces.

The application of the Agreement to Chilean environmental laws and regulations will be phased in over a two year period as provided for in Annex 44.2 of the CCAEC. The Chilean government is conducting a major review of its environmental legislation. The Agreement lists roughly 160 laws which are immediately covered, and as of July 5 1999, the application of the enforcement provisions will apply to all remaining laws and standards, which meet the definition contained in the CCAEC.

As this is the first Report of the Commission, the Parties decided that it would be beneficial to provide examples of environmental programs and measures adopted by each country in connection with its obligations as defined in the CCAEC (Articles 2 to 7, and 13.2 c).

The print version of The State of Canada’s Environment—1996 was completed and released in 1997 (Internet and CD-ROM versions were released in 1996). In addition, six new or updated bulletins in Canada’s National Environmental Indicator Series were produced in the 1997/98 fiscal year. These documents are part of the State of the Environment Infobase which can be accessed from Environment Canada’s Green Lane home page at http://www.ec.gc.ca.

In 1997 Canada continued its work on a national framework for environmental education. Environment Canada developed a plan to consult with provinces, non-government organizations and the environmental education community on a set of principles that will provide a framework from which each province, organization and the federal government can develop sustainability education strategies consistent with their respective mandates.

Environment Canada’s technology centers undertook various activities and programs to further scientific research and technology development and provide technical advice with respect to environmental matters in 1997.

The Canadian Environmental Assessment Agency (CEAA) is responsible for administering the federal environmental assessment process. In 1997, CEAA managed a total of eight public reviews. Federal departments and agencies reported, in accordance with their environmental assessment obligations under the Canadian Environmental Assessment Act, a total of 2910 screenings and 26 comprehensive studies.

Canada has a variety of economic instruments in place. At the federal level, Canada has implemented a transferable allowance program for methyl bromide (1995) and a similar program for HCFCs (1996) to help meet our obligations under the Montreal Protocol for the Protection of the Ozone Layer; and introduced cost-recovery charges for ocean dumping permit applications (1993) and is introducing cost recovery for ocean dump site monitoring.

In 1997 Canada published the following environmental regulatory initiatives:

• Amendments to the PCB Waste Export Regulations and the New Substances Notification Regulations (dealing with biotechnology products);

• The Registration of Storage Tank Systems for Petroleum Products and Allied Petroleum Products on Federal Land, the Diesel Fuel Regulations and the Benzene in Fuel Regulations.

• Amendments to the Prohibition of Certain Toxic Substances Regulations and the Gasoline Regulations.

In Canada, the federal and provincial governments share legislative authority over the environment. Environment Canada uses complementary tools to motivate compliance with environmental regulations. Compliance promotion activities include providing information and education. Enforcement is based on inspections and investigations carried out in accordance with national and regional inspection plans, and in response to complaints and tips from the public or other government agencies.

Both the Canadian Environmental Protection Act (CEPA) and the Fisheries Act (FA) allow the federal government to negotiate administrative arrangements with provincial enforcement agencies to share in local enforcement activities and maximize the efficiency of enforcement activities by both orders of government.

There are approximately 150 Environment Canada enforcement officers located in five regions and headquarters who enforce pollution and wildlife legislation for which Environment Canada is responsible. They are complemented by program specialists who develop and promote compliance and by and laboratory staff who carry out the necessary analysis.

Enforcement of environmental and wildlife legislation requires specialized knowledge. The Enforcement Management Division designs and delivers a variety of basic and specialized courses to make sure inspectors, investigators and wildlife officers are well equipped for the special needs of the job. Training is also offered to other federal departments, provincial enforcement agencies and to other countries.

In Canada, the primary instrument for implementing the Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES) is the federal Wild Animal and Plant Protection and Regulation of International and Inter-provincial Trade Act (WAPPRIITA). Most CITES infractions are investigated by federal agencies, particularly as they relate to wildlife trafficking.

In 1997, Environment Canada successfully implemented the first phase of the National Enforcement Management Information System and Intelligence Systems - NEMISIS, a new electronic information data base for tracking and managing the departments enforcement activities under all federal environmental and wildlife legislation enforced by Environment Canada.

In October 1997, the Auditor-General reported on the federal program to control transboundary shipments of hazardous waste, recommending the enhanced enforcement of the Export and Import of Hazardous Wastes Regulations and increased compliance with the manifest and certificate of disposal/recycling requirements of the legislation.

On January 1998, the Council of Ministers of the National Environmental Commission (CONAMA) approved the government policy on environmental issues; the Environmental Policy for Sustainable Development. This policy has been distributed in sectoral and regional seminars, and is part of a process to establish environmental policies for all the regions in the country.

The National Environmental Information System has been implemented through CONAMA´s web site. The public, thereby, has access to most of the Chilean environmental legislation, to international environmental agreements signed by Chile, to the management activities of the Environmental Impact Assessment System, to other programs of the Commission, and to other relevant information.

In 1997, a Cadastre and Assessment of Native Chilean Plant Resources was elaborated. It determines the extent and state of forests, ecosystems, and forest and plant resources. This information is available to the public through a geographic information system (GIS) in all regional offices of CONAF (National Forest Corporation), in conjunction with the regional environmental commissions (COREMAs).

In 1997, the Department of Citizen Participation and Environmental Education was created within CONAMA to increase public participation in the country’s Environmental Policy. Basically, the objectives of this institutional effort are: to implement the mechanisms for citizen participation as provided for in the environmental management instruments (Environmental Impact Assessment System, Establishment of Decontamination and Prevention Standards and Plans); and to undertake programs and actions related to education and public awareness with respect to environmental issues. A joint project has been undertaken with the Ministry of Education to include environmental education in the primary and secondary school curricula; major awareness and education programs; training for social leaders and municipal civil servants; and grants for environmental education projects.

One of the main achievements in terms of preventing environmental degradation has been the start up of the Environmental Impact Assessment System (SEIA), which is a mandatory since April 1997. From January 1990 up to now, the SEIA has received 874 investment projects with the potential to cause environmental impacts, of which 306 include investments of more than 12.9 billion US dollars in 1997.

In the context of promoting the use of economic instruments for the efficient achievement of environmental goals, CONAMA is elaborating a Draft Bill to be debated by the Government prior to sending it to Parliament on the implementation of Tradable Emission Permits (PETs) for air. Additionally, a pilot project has been initiated in municipalities of the Metropolitan Region, based on a study for the "Design of Differentiated Rates for the Management of Residential Solid Waste based on the Amount Generated". CONAMA is also administering a program that subsidizes the transformation of technologies that harm the ozone layer, within the framework of the Montreal Protocol. In addition, consideration is being given to legislation to ban imports of ozone depleting substances.

During 1998, emission standards on the discharge of industrial liquid waste to sewage systems, a review of and modification to standards to regulate noise levels, and the primary quality standard on breathable particulate matter (PM10) were officially published.

In 1998, the emission regulation standard to control light contamination was approved. This standard protects the astronomic quality of the skies in Regions II, III, and IV. Also the standard for arsenic air emissions and for the liquid discharge to sources waters were approved. In accordance with the corresponding regulations, the procedures were initiated to establish the following standards: standard to control odours associated with the manufacture of sulphur pulp in the pulp industry, quality standard to protect the use of continental waters, and the review of the air quality standard for sedimented particulate matter in the Huasco River basin, in Region lll.

Currently, studies are being undertaken with a view to promulgate the following standards: primary quality standards for lead in air, standards to control odours associated with the fishing industry, standards for Nitrogen Oxide (NO_X), Volatile Organic Compounds (VOCs )and carbon monoxide (CO) in the cement, glass and steel industries and in boilers and turbines in the Metropolitan Region; emission standard for mobile NO_X sources for the technical inspection of catalytic-converter vehicles in the Metropolitan Region; emission standards for mobile sources for motorcycles in the Metropolitan Region; review of the primary quality standard on CO; review of the following primary quality standards: nitrogen dioxide (NO₂); sulphur dioxide (SO₂), total suspended particulates (TSP), CO, photochemical oxydants expressed such as ozone (O₃) , review of the PM (Particulate Matter) emission standard for stationary sources in the Metropolitan Region; review of the CO, total Hydrocarbons (THC); NO_X and particulate matter standards for Diesel buses and heavy vehicle emissions in the Metropolitan Region; and the secondary quality standard for marine water quality in the Bió Bió Region.

The Decontamination Plans for the copper smelter at Chuquicamata, Paipote Smelter and Ventanas Smelter came into force prior to 1997. This year, the Air Pollution Prevention and Decontamination Plan for the Metropolitan Region and the Decontamination Plan for the Caltones Smelter were introduced. The final project of the Decontamination Plan for the Potrerillos Smelter is currently being reviewed.

In Chile, there are a number of institutions with enforcement rights with respect to environmental issues. Health Services, for example, are responsible for the protection of human health from potential environmental damage from air emissions and solid waste. The Superintendent of Sanitary Services (SISS) enforces compliance with all standards related to sanitary services and regulates companies with liquid waste emissions. The National Forest Corporation (CONAF) has responsibility for all forest resource related enforcement and for enforcement with respect to the appropriate use and preservation of protected Wildlife Areas and the wildlife therein. The General Waters Directorate (DGA) controls the use of continental water resources, while the General Directorate of the Maritime Territory (DIRECTMAR) is in charge of preserving the aquatic environment in the marine territories. The Enforcement department of the Ministry of Transportation and Telecommunications controls compliance with environmental legislation in the private and public transportation system and their externalities, specifically with respect to air emissions. The Agricultural and Livestock Service (SAG) enforces the legal and regulatory standards for the prevention and eradication of plant pests and diseases that can be transmitted to animals, as well as for the control of imports and use of pesticides and the conservation of soils and waters for agriculture. The National Geology and Mining Service (SERNAGEOMIN) monitors mining activities, specifically the potential for environmental damage from tailing ponds. The National fisheries Service (SERNAP) enforces the due process of application of standards relating to fishing, underwater fishing, and other forms of hydrobiological resource exploitation. Finally, municipalities undertake educational and other activities to prevent damage to the environment.

During 1997, a study was undertaken of the "Application of Economic Disincentives in the Enforcement and Sanction in the Control of Urban Pollution". This study led to a number of actions being taken by the Environmental Metropolitan Health Service (SESMA) to improve its system of sanctions.

During 1998, CONAMA within its functional responsibilities for coordination and verification of environmental enforcement, undertook an analysis and elaborated a proposal for the improvement of the national environmental enforcement system. The proposal is currently under internal review, prior to being presented to the Council of Ministers.

As 1997-98 was the first year of the Agreement, the focus of the work of the Commission and of the National Secretariats was on actions necessary to provide for the establishment of the institutions of the Commission and the development of initial proposals for cooperative activities. Diplomatic notes identifying Council members were exchanged.

The National Secretariats have had two meetings: December 1997 in Santiago, and June 1998 in Ottawa. Procedures for defining and establishing the necessary coordination and communication mechanisms between the two National Secretariats were developed. The National Secretariats have elaborated a series of procedural arrangements that will be considered for approval by the Council in order to establish the Commission. These are:

• Rules of Procedure for the Council;

• Rules of Procedure for the JPAC;

• Rules of Procedure for the JSC;

• Rules of Procedure for the Experts on Environmental Matters;

• Code of Conduct for the members of the JSC and the Experts on Environmental Matters;

• Guidelines for Submissions on Enforcement Matters; and

• Rules of Procedure for the National Secretariats.

In addition, the National Secretariats drafted an annual report for 1998, an annual program of work and budget for 1999, and worked on preparations for the 1^st Meeting of the Canada-Chile Commission for Environmental Cooperation (CCCEC).

The Chilean government hosted the first regular session of the Council of the CCCEC in Santiago, Chile on November 9, 1998. The Council approved all the necessary CCCEC administrative rules and arrangements, as well as the program of work for 1999. The Council also appointed the Joint Submission Committee (Carlos Peña and David Johnston) and the Joint Public Advisory Committee (Asta Antoft, Harvey Mead, David Hunter, Eduardo Arriagada, Gustavo Lagos and Francisco Sabatini). A joint final communiqué containing more information can be found in the new web sites of the National Secretariats (http://can-chil.gc.ca and http://www.conama.cl/chile-canada).

Before the entry into force of the Agreement on Environmental Cooperation, Canada and Chile had worked together on a series of environment-related activities. The Memorandum of Understanding (MOU) on Environmental Cooperation was signed between the Environment Canada, Industry Canada and the Chile National Commission for the Environment (CONAMA), and was extended in January 1998 for two more years. The objective of this MOU is to promote cooperation between the two countries in areas such as, environmental protection, conservation, sustainable development and transfer of clean technologies.

The MOU is managed by a Steering Committee consisting of one representative from each of the three signing institutions. The Steering Committee meets at least once a year. The last meeting took place in May 1998, in Ottawa, Canada.

The activities developed have been of benefit to departments and services involved in environmental matters, as well as to the private sector. To date, joint projects have been carried out in the following sectors: air and water regulations; environmental impact assessment, environmental economy; information systems; mining; and cleaner production.

These activities took the form of information exchange, training, dissemination of information, joint workshops, technical visits and participation with experts in various meetings and conferences