Proposed Environmental Assessment Regulations for Crown Corporations Providing Commercial Loans

OTTAWA – January 3, 2006 – The Canadian Environmental Assessment Agency is proposing new regulations under the Canadian Environmental Assessment Act (the Act) to create a varied environmental assessment (EA) process for Crown corporations involved in providing commercial loans. The regulations, once in force, will specifically apply to the Business Development Bank of Canada (BDC) and Farm Credit Canada (FCC).

The proposed Crown Corporations Involved in the Provision of Commercial Loans Environmental Assessment Regulations follow upon amendments to the Act in June 2003 which require that, as of June 11, 2006, federal parent Crown corporations conduct EAs of their projects, either by direct compliance with the Act or by a modified EA process set in regulations.

While the proposed regulations preserve to the fullest extent possible the EA process prescribed by the Act, they recognize that both BDC and FCC would be unable to comply with specific elements of the Act, particularly those related to the Canadian Environmental Assessment Registry. Furthermore, the competitiveness of FCC and the ability of both BDC and FCC to conduct their core business would be significantly affected by direct compliance with the Act as it would breach client confidentiality requirements and impede the timely delivery of services.

The proposed amendments are based on extensive consultations with BDC and FCC. More information can be found in the adjoining Backgrounder.

These proposed regulations were published in the Canada Gazette, Part 1 on December 31, 2005. The public has 30 days to submit comments. Public comments will be taken into account before the amendments are finalized and the regulations come into force on June 11, 2006.

To be considered, comments on the proposed regulations must be received no later than January 30, 2006. Please direct comments in either official language to:

M. John Smith
Director, Legislative and Regulatory Affairs
Canadian Environmental Assessment Agency
160 Elgin Street, 22^nd Floor
Ottawa ON K1A 0H3
Tel.: (613) 948-1942
Fax: (613) 957-0897
E-mail: john.smith@ceaa-acee.gc.ca

The proposed regulations for BDC and FCC introduce a requirement for both institutions to put their EA policies, procedures and guidance materials, including all forms used in the assessment of projects, on the Registry Internet site before any EAs are conducted and any courses of action are taken on those projects. The Agency will soon consult the public on drafts of these documents.

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The Canadian Environmental Assessment Agency administers the federal environmental assessment process, which identifies the environmental effects of proposed projects and measures to address those effects, in support of sustainable development.

For more information, media may call:

Gordon Harris
Senior Communications Advisor
Canadian Environmental Assessment Agency
Tel: (613) 957-0825
E-mail: gordon.harris@ceaa-acee.gc.ca