Introduction
The negotiation of the Devolution Transfer Agreement (DTA) was guided by the principles established in the Devolution Protocol Accord of September 1998 signed by the Government of Canada, the Government of Yukon, the Council of Yukon First Nations on behalf of its members, the Kwanlin Dun First Nation, the Liard First Nation and the Kaska Tribal Council on behalf of the Ross River Dena Council and the Kaska Dena Council of northern British Columbia. The DTA covers a wide range of issues pertaining to the transfer of land and resource management powers, programs, and responsibilities in the Yukon from the Government of Canada to the Government of Yukon. Key provisions are summarized below.

Transfer of Responsibilities
The administration and control of most public lands, the resources on those lands (e.g., forests, minerals) and the rights in respect of waters are to be transferred to the Commissioner of Yukon, who will then be able to dispose of interests and retain the proceeds of sales or dispositions. In practical terms, these decisions will be made by the Yukon Cabinet or a territorial Minister, in accordance with territorial legislation.

The transfer of law-making powers from the federal government to the Yukon Government requires legislation approved by Parliament. Based on current planning, this legislation is scheduled to be introduced in Parliament this fall. If Parliament approves the legislation, the date of the transfer will be April 1, 2003, allowing more than a year for transition planning and implementation.

The title to public lands and waters will remain vested in Her Majesty in right of Canada. Rights and interests issued by Canada prior to the transfer date will be unaffected by the transfer and will be administered by the Government of Yukon after devolution.

Federal resource management legislation - the Yukon Quartz Mining Act, the Yukon Placer Mining Act, and the Yukon Waters Act - will be repealed on the transfer date and the Territorial Lands Act will no longer apply in Yukon after that time. The Government of Yukon will pass resource management legislation that "mirrors" the existing federal resource management legislation. This "mirror" Yukon legislation can be passed in advance of the transfer date but will not come into force until April 1, 2003. The Government of Yukon will also develop "mirror" regulations under the resource legislation. This process will ensure a seamless transition at the time of devolution. After the transfer, the Government of Yukon will be able to revise the "mirror" resource management regimes consistent with its policy and program priorities.

Protection of First Nation Rights and Interests
The DTA contains provisions to ensure that devolution does not abrogate or derogate from the aboriginal, treaty or other rights of First Nations or any fiduciary duty or obligations of the Crown to aboriginal people that may be derived from treaties, constitutional provisions, legislation, common law, or express undertakings. The DTA also affirms the protections recognized in the Constitution Act, 1982, and the rights set out in final agreements, self-government agreements and other federal legislation. It also contains land protection measures for First Nations that have not yet completed their land claim agreements.

Under the DTA, the Government of Canada commits to remediate contaminants or hazards on settlement lands - including settlement lands that were subject to an encumbering right - that were created while Canada administered those lands. Affected First Nations will be consulted by the Government of Canada about proposed remediation activities. This commitment is subject to a number of conditions set out in the DTA.

The Government of Yukon commits to the remediation of contaminants or hazards on settlement lands that are a result of activities authorized by the Government of Yukon, subject to a number of conditions set out in the DTA.

In addition, the Government of Yukon commits to continue forest fire suppression on First Nation settlement lands beyond the time limit set out in a First Nation's Final Agreement. The Government of Yukon and Yukon First Nations will jointly manage a special $4.5 million fund set up through the DTA to enhance the Yukon's forest sector (e.g., silviculture activities). The Government of Yukon will also co-ordinate the reforestation priorities to be funded by the Elijah Smith Forest Renewal Program with Yukon First Nations and representatives of the Yukon's forest industry.

The Government of Yukon commits to involve Yukon First Nations in respect of a number of specific matters set out in the DTA, including the development of new territorial resource management legislation and the consideration of any federal government proposals to amend the Yukon Act.

Human Resources Provisions
The Government of Yukon commits to offer to affected indeterminate Northern Affairs Program (NAP) employees a position which matches as closely as possible their existing substantive position. Almost all of the 240 indeterminate NAP employees in the Yukon Region will be affected by devolution because the Yukon Government will assume responsibility for all NAP programs with the exception of the Waste Management Program and Development Assessment Process Directorate.

Overall compensation and benefits offered by the Government of Yukon will be comparable to those provided to employees in their current federal positions.

The employment provisions in the DTA meet all the requirements of a Type 2 transfer as outlined in the Work Force Adjustment agreements between the Treasury Board of Canada and public service unions.

Employees who accept the Yukon Government's offer of employment and who subsequently leave the Yukon Government will be entitled to receive from the Yukon Government severance payments which will include their years of service both as federal and territorial employees. There will be no impact on pension entitlements of federal employees who accept the Yukon Government's offer of employment since all Yukon Government employees are members of the Public Service Superannuation Plan.

Corporate Services
NAP's leases for space owned by third parties will be assigned to the Government of Yukon. The space occupied by NAP employees in the Elijah Smith Building in downtown Whitehorse will be made available to the Government of Yukon under lease arrangements with the Government of Canada.

Moveable assets used by the NAP Yukon Region to deliver its programs and services will be transferred to the Government of Yukon.

The Government of Canada shall transfer, copy or loan the files and records required by the Government of Yukon to deliver former NAP programs and services. The DTA sets out how the federal and territorial access to information and protection of privacy requirements shall apply.

The Government of Yukon will continue the present level of service to the public in English and French now offered in NAP offices in the Yukon. The DTA sets out in detail how the Languages Act (Yukon) and the "mirror" legislation shall ensure services in French are dealt with in the future.

Environmental Measures
The guiding principle behind the environmental arrangements in the DTA is that the operator of a site has the ultimate responsibility to remediate the site. If, however, a site becomes abandoned, and the operator cannot be found or is unable to ensure proper remediation, governments will be responsible for the remediation of hazards to human health and safety or to the environment at the site.

Under the DTA, Canada is responsible for the assessment and remediation of health and safety hazards or hazards to the environment at known and newly discovered abandoned hazardous or contaminated sites created while Canada had the administration of lands and resources in the Yukon. The Government of Yukon will be responsible for the remediation of hazards resulting from activities occurring after the date of transfer.

Canada has identified $20 million ($2 million per year over 10 years) for the assessment and remediation of hazards at known contaminated or hazardous sites. The process set out in the DTA for the assessment and remediation of sites by Canada is based on standards that may be available under federal legislation or, in the absence of such legislation, on the approach set out in guidelines prepared by the Committee of Canadian Ministers of the Environment.

The DTA also outlines a framework and process to address remediation or emergency actions that may be required at major mine sites where Canada may have some responsibility in respect of the environmental remediation costs, if and when these are abandoned by their operators.

Financial Measures
On-going funding (approximately $34 million annually) will be provided to the Government of Yukon through the Canada-Yukon Formula Financing Agreement. This amount reflects the actual costs incurred by NAP for salaries and benefits, operations and maintenance, leases, and other actions associated with the responsibilities to be transferred. The amount will change over time as a result of the escalators contained in the formula financing agreement.

Canada will provide, as a temporary measure, Environmental Assessment funding of $1.553 million per year until such time as the new development assessment legislation comes fully into effect.

Canada will also provide one-time and transitional funding ($16.75 million) as follows:

• General transition funding of $3 million, including legal support, signage, record management and inventory/asset control costs;
• Human resources funding of $310,000 to help with staff training and other transition measures;
• Funding of $1.435 million to cover computer system integration costs;
• Fire suppression transition funding of $7.5 million, over five years, that will enable the Government of Yukon to build a special forest fire suppression contingency fund; and
• Forest sector funding of $4.5 million for activities to be jointly managed by the Government of Yukon and Yukon First Nations.

The balance of remaining funds identified earlier by Canada to improve fire suppression infrastructure (originally $3.5 million) and complete a territory-wide forest inventory (originally $3 million) will be transferred on April 1, 2003 to the Government of Yukon in order to complete work underway at that time.

Canada will also transfer funding required by the Yukon to fulfill its human resources obligations, including an agreed-to amount for the severance liability and vacation leave credits associated with the federal employment of former NAP employees who work for the Government of Yukon as a result of devolution.

Canada has agreed to share a percentage of extraordinary fire suppression costs for a five-year period, with the threshold for "extraordinary" costs in a given year set at $6.5 million as adjusted by the formula financing escalator. Canada's share will decline by 10 per cent each year, from 80 per cent in the first year to 40 per cent in the final year. After the fifth year, the Government of Yukon will be fully responsible for fire suppression costs in the Yukon.

Under the DTA, the Yukon Government will be able to retain up to $3 million a year in resource revenues without any impact on the fiscal grants it receives from the Government of Canada.

October 29, 2001

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