Proposed Regulations for Crown Corporations Involved in the Provision of Commercial Loans Environmental Assessment

In June 2003, Parliament passed Bill C-9, An Act to amend the Canadian Environmental Assessment Act. Among a number of amendments, the bill required that as of June 11, 2006, parent Crown corporations conduct environmental assessments of projects, either by direct compliance with the Act or via a modified environmental assessment process set in regulations. The bill added new regulatory authorities to the Act to allow for the development, where appropriate, of a tailored process for individual or classes of Crown corporations to take into account their unique circumstances and competitive situations.

The proposed Crown Corporations Involved in the Provision of Commercial Loans Environmental Assessment Regulations would apply specifically to Business Development Bank of Canada (BDC) and Farm Credit Canada (FCC). Both organizations are national financial institutions whose activities are focused respectively on small- and medium-sized enterprises and the agricultural sector. They are distinguished among federal parent Crown corporations by their involvement in the provision of commercial loans.

The proposed regulations recognize that both BDC and FCC would be unable to comply with specific elements of the Canadian Environmental Assessment Act, particularly those related to the Canadian Environmental Assessment Registry. The competitiveness of FCC and the ability of BDC and FCC to conduct their core business would be significantly impacted by direct compliance with the Act because it would breach client confidentiality requirements and impede the timely delivery of services.

The proposed regulations would:

• preserve to the fullest extent possible the environmental assessment process prescribed by the Act;
• modify public notification requirements to respect client confidentiality and protect commercially sensitive and personal information;
• exempt BDC and FCC from a mandatory 15-day period between the posting of the notice of commencement of the environmental assessment and the description of the scope of the project and their decision. This is to allow the conduct of BDC's and FCC's core business to continue in a timely manner and to maintain the ability of FCC to compete and BDC to complement private chartered financial institutions;
• require BDC and FCC to post on the Registry Internet site a quarterly statement of their projects assessed under the Act; and
• require BDC and FCC to post their environmental assessment policies, procedures and guidance materials (including any forms used in the assessment of projects) on the Registry Internet site to enhance transparency and offset the fact that the regulations represent a departure from existing notification requirements prescribed by the Act.

The proposed requirement to post a quarterly statement of the projects assessed by BDC and FCC under the Act is modelled on the existing class screening process under the Act.

The remaining requirements and procedures of the Act would remain applicable to BDC and FCC, including the definitions, the triggers, the factors to be considered, the discretion of the Responsible Authority to invoke public participation in the conduct of a screening, the decisions to be taken following an assessment, the requirements related to maintaining a project file of each assessment, the powers of the Minister of the Environment and the potential for assessment by a panel review or mediation, as well as all requirements and procedures of the Act applicable to these two latter types of assessment.

If BDC or FCC is of the opinion that public participation in the screening of a project is appropriate in the circumstances as per subsection 18(3) of the Act or if the project to be assessed is included on the Comprehensive Study List Regulations under the Act, these proposed regulations would not apply and all procedures and requirements of the Act would remain applicable.

For more information:

Sarah Devin
Policy Analyst – Crown Corporation Unit
Canadian Environmental Assessment Agency
Place Bell Canada, 22^nd Floor
160 Elgin Street
Ottawa, ON K1A 0H3
Tel: 613-948-1949
Fax: 613-957-0897
E-mail: sarah.devin@ceaa-acee.gc.ca