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

Allocation of Federal Funds for the Environmental Assessment of the Donkin Export Coking Coal 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. The PFP also includes an Aboriginal Funding Envelope (AFE) to strengthen the ability of Aboriginal groups to participate in federal or joint federal-provincial environmental assessment (EA) processes and in related consultation activities.

A Funding Review Committee (FRC) independent of the EA was established for the Donkin Export Coking Coal Project (the Project). The EA of the Project is being conducted by means of a comprehensive study (CS). The FRC's purpose was to assess funding applications received under the PFP – AFE for the proposed 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.

Under the AFE for this project, a total of $35,000 was made available to support Aboriginal participation in the EA, and related consultation and community engagement activities linked to the:

• review and comment on the Environmental Impact Statement Guidelines (EIS Guidelines);
• review and comment on the Environmental Impact Statement (EIS); and
• review and comment on the Comprehensive Study Report (CSR).

The deadline to submit an application was October 14, 2011. One application was received requesting a total of $99,600.

On October 20, 2011, the FRC met to review the application. The FRC members were: Mr. Paul Scott, retired Regional Director of the Agency's Pacific and Yukon office, acting as Committee Chairperson; Mr. Philip Graham, Environmental Consultant; and Ms. Colleen Mercer Clarke, Environmental Consultant.

Background

The proponent proposes to construct, operate and decommission an underground coal mine facility at the site of the existing Donkin Mine located on the northeastern tip of Cape-Breton Island in Nova Scotia. The mine would have a lifespan of 30 plus years and extract approximately 3.6 million tonnes of coal per year. The Project also includes a coal handling and processing plant that would be constructed to produce coal ready for transfer to a new barge loading facility. The coal would be loaded onto a barge, moved by tug to a new trans-shipment location, and loaded into ocean going vessels.

The Project includes all activities and physical works associated with the Project including, but not limited to, the following activities and components:

• underground coal mining;
• a coal handling preparation plant with a dry disposal reject handling system;
• ancillary services to support the underground mine and coal handling preparation plant, including a 138kV power line from Victoria Junction to the Project site;
• coal and mineral rock waste disposal and water treatment infrastructure;
• a barge load-out facility adjacent to the Donkin Peninsula to transport product coal to a transhipment mooring located southwest of Cape Morien; and
• marine transportation from the barge load-out facility to the transhipment mooring.

Eligibility

Under the PFP – AFE, funding may be provided to Aboriginal applicants to support their input to an EA and/or to support their engagement in consultation activities with the federal government. These activities must be linked to the EA of a proposed project through a CS, mediation or review panel.

Eligible recipients must plan to engage in Aboriginal consultation activities with the federal government that are linked to the EA of the proposed project and be able to demonstrate that they meet at least on of the following eligibility criteria:

• have a direct, local interest in the 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 applicant was deemed to have met the eligibility criteria.

Under the PFP – AFE, applicants can request funding for costs related to:

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

Rationale for Allocation

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

• whether the applicant could demonstrate that they plan to engage in Aboriginal consultation activities with the federal government that are linked to the EA of the proposed project;
• the ability of the applicant to demonstrate that they had met one or more of the eligibility criteria listed above;
• the quality, clarity and content of the application, particularly with respect to the relationship between specific project components and the applicant's traditional lands and resources, and the applicant's proposed EA participation work plan;
• an awareness that the applicant represents the 13 Mi'kmaq First Nations in Nova Scotia for the purpose of this application and that the intention is to participate in the consultation process under the Terms of Reference for a Mi'kmaq-Nova Scotia-Canada Consultation Process;
• the eligible activities under the PFP – AFE for the Project, which include reviewing and commenting on the EIS Guidelines, the EIS and the CSR; and
• the amount of funds available under the AFE for this project.

Recommendation

The FRC recommends allocating all of the $35,000 of the available AFE funding to support the applicant as follows:

• $35,000 to the Kwilnu'kw Maw-klusuaqn Negotiation Office on behalf of the Assembly of Nova Scotia Mi'kmaq Chiefs;

The FRC further recommends that any funding allocation be conditional on a provision of written comments by the applicant to the Agency on the EIS Guidelines, the EIS and the CSR

The Funding Review Committee
Donkin Export Coking Coal Project
Aboriginal Funding Envelope

Paul Scott, Committee Chairperson, retired Regional Director of the Agency's Pacific and Yukon office

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Philip Graham, Environmental Consultant

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Colleen Mercer Clarke, Environmental Consultant

Recommended Participant Funding Allocations
Donkin Export Coking Coal Project
Aboriginal Funding Envelope

Applicant	Total Allocation Amount Recommended
Kwilnu'kw Maw-klusuaqn Negotiation Office on behalf of the Assembly of Nova Scotia Mi'kmaq Chiefs	$35,000
TOTAL	$35,000