Participant Funding Program – Regular Funding Envelope
Funding Review Committee's Report

Allocation of Federal Funds for the Environmental Assessment of the Inuvik to Tuktoyaktuk Highway Project

The Participant Funding Program (PFP) is established pursuant to subsection 58(1.1) of the Canadian Environmental Assessment Act (the Act), which states: For the purposes of this Act, the Minister shall establish a participant funding program to facilitate the participation of the public in comprehensive studies, mediations and assessments by review panels.

A Funding Review Committee (FRC), independent of the environmental assessment (EA), was established for the proposed Inuvik to Tuktoyaktuk Highway project (the Project). The Project was referred to an assessment by a federal review panel by the Minister of the Environment on September 27, 2010. At that time, the Minister also decided that the federal review panel process would be substituted by the Environmental Impact Review Board (EIRB) process. The purpose of the FRC was to assess applications received under the PFP – Regular Funding Envelope (RFE) for the Project, and to provide recommendations to the President of the Canadian Environmental Assessment Agency (the Agency) on whether funding should be provided and, if so, in what amount.

On March 4, 2011, a total of $300,000 was made available under the RFE for the EA process of the Project to support participation in community-specific meetings and public comment activities (e.g. open houses), review and input on the Environmental Impact Statement (EIS), as well as to prepare for and attend public hearings.

On April 20, 2011, the FRC met to review two applications received under the PFP – RFE, for a total funding request of $70,955.76 to participate in the EA process. The FRC members were Mr. Bruce Young, retired Director of Panel Management with the Agency, acting as Committee Chairperson; Mr. Patrick Duxbury, Environmental Assessment Consultant; and Mr. Jeff Gilmour, Environmental Assessment Consultant.

Background

The Hamlet of Tuktoyaktuk, the Town of Inuvik and the Government of the Northwest Territories (the proponent) are proposing to construct, operate and maintain a 140 kilometre all-weather highway from the Town of Inuvik to the Hamlet of Tuktoyaktuk, Northwest Territories (NWT). The proposed Project will involve numerous stream crossings and will necessitate bridge construction and the placement of culverts. Authorizations from the NWT Water Board and land use permits from Indian and Northern Affairs Canada (INAC) will be required, as will authorizations from Fisheries and Oceans Canada and approvals from Transport Canada. Fisheries and Oceans Canada, INAC, Transport Canada, and the NWT Water Board are responsible authorities under the Act.

The proposed highway will provide all-season access to the Hamlet of Tuktoyaktuk, previously only accessible by air, water, or seasonal ice road. Tuktoyaktuk has a population of approximately 1,000 people, the majority of which are Inuvialuit. Inuvik is the Mackenzie Delta?s administrative and regional centre, with a population of 3,500, of which sixty per cent are non-Aboriginal, twenty-five per cent are Inuvialuit, and fifteen per cent are Dene. The headquarters of the Inuvialuit Regional Corporation and the Gwich?in Tribal Council are both located in Inuvik.

The proposed highway would be a two-lane, gravel-topped roadway operated by the Department of Transportation, Government of the NWT. It would be built in a zone of continuous permafrost. Granular materials used for its construction would be locally sourced. The proposed construction methodology differs from southern construction techniques in that there would be no excavation of soils or rock along the right-of-way. Rather, the proponent is proposing to only add fill to align the embankment. These measures are designed to protect soil and vegetation that insulate permafrost and therefore help to maintain the geophysical stability of the landscape along the planned route. Construction activities are planned to be year-round and will last approximately three years, ranging from identification of borrow sites to final highway grading.

The Project was referred to a review panel taking into consideration the environmental sensitivity of northern ecosystems and expert advice received from Fisheries and Oceans Canada and Transport Canada, which indicated that the Project, taking into account the implementation of any mitigation measures, may cause significant adverse environmental effects.

Eligibility

Under the PFP – RFE, funding may be provided to applicants to support their input to an EA with the federal government. These activities must be linked to the EA of a proposed project through a comprehensive study, mediation or review panel.

To be eligible for funding, applicants must demonstrate that they meet one of the following eligibility criteria:

• have a direct, local interest in the proposed Project, such as living or owning property in the project area;
• have community knowledge or Aboriginal traditional knowledge relevant to the EA; or
• have expert information relevant to the anticipated environmental effects of the Project.

The applications received were deemed to have met at least one of these criteria; therefore all of the applicants were found to be eligible for funding.
Under the PFP – RFE, applicants can request funding for expenditures related to:

• professional fees;
• staff salaries and benefits;
• local collection and/or distribution of information;
• travel expenses;
• honoraria for Elders and Chiefs to attend meetings and functions;
• ceremonial offerings related to receiving traditional knowledge in relation to the EA;
• rental of office space and meeting rooms;
• office supplies and telephone charges;
• administrative and reporting costs;
• legal fees;
• purchase of relevant information material, with supporting documentation;
• general media advertising and/or promotion; and
• other detailed expenses.

Rationale for Allocation

In reviewing the two applications and in reaching its conclusions and recommendations, the FRC took into consideration a number of factors including the following:

• Applicants who could demonstrate that they had met at least one or more of the eligibility criteria listed above;
• The quality, clarity and content of the applications, particularly with respect to the alignment of each applicant?s work plan and proposed activities; and
• The eligible activities of the PFP – RFE for the Project, which include participation in community-specific meetings and public comment activities (e.g. open houses), review of, and comment on, the EIS and prepare for and attend public hearings.

Recommendation

The FRC recommends allocating a total of $60,468.26 to the two applicants as follows:

• $44,520.10 to the Joint Secretariat – Inuvialuit Settlement Region, on behalf of the Tuktoyaktuk – Inuvik Highway Working Group; and
• $15,948.16 to the Inuvialuit Regional Corporation.

The Participant Funding Review Committee
Inuvik to Tuktoyaktuk Highway Project

Regular Funding Envelope

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Bruce Young, Committee Chairperson, retired Director of Panel Management with the Agency

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Patrick Duxbury, Environmental Assessment Consultant

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Jeff Gilmour, Environmental Assessment Consultant

Recommended Participant Funding Allocations
Inuvik to Tuktoyaktuk Highway Project

Regular Funding Envelope

Applicant	Total Allocation Amount Recommended
Joint Secretariat – Inuvialuit Settlement Region, on behalf of the Tuktoyaktuk – Inuvik Highway Working Group	$44,520.10
Inuvialuit Regional Corporation	$15,948.16
Total	$60,468.26