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

Allocation of Federal Funds for the Environmental Assessment of the Canpotex Potash Terminal 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 Phase II of the Canpotex Potash Terminal 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 $74,750 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 (EIS); and
• review and comment on the Comprehensive Study Report (CSR).

The deadline to submit an application was December 16, 2011. Five applications were received requesting a total of $70,800.

On December 19, 2011, the FRC met to review the applications. The FRC members were: Mr. Bruce Young, retired Director of Panel Management with the Agency, acting as FRC Chairperson; Dr. George Kupfer, Environmental and Socio-Economic Consultant; and Mr. Jeff Gilmour, Environmental Assessment Consultant.

Background

Canpotex Terminals Ltd. is proposing to construct a potash export terminal on Ridley Island in the Port of Prince Rupert, British Columbia. The project facility will cover approximately 55 hectares of federal lands located on Ridley Island and a 14 hectare water lot. The federal land is managed by the Prince Rupert Port Authority. The project value is estimated at $400 million. Prince Rupert Port Authority will build and own the road/rail/utility corridor that will service the Canpotex terminal and other proposed industrial lots. The Major Project Management Office identified the Project as a Major Resource Project and therefore subject to the Cabinet Directive on Improving the Performance of the Regulatory System for Major Resource Projects.

Pursuant to the Act, a Notice of Commencement of an EA was posted to the Canadian Environmental Assessment Registry internet site on May 21, 2009. The notice indicated Transport Canada, Fisheries and Oceans Canada and Environment Canada would be required to ensure an EA is completed. In November 2009, the Responsible Authorities determined the Project will be reviewed by means of a CS.

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 one 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.

All of the applicants were 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 five applications and in reaching its conclusions and recommendations, the FRC took into consideration a number of factors including the following:

• whether Aboriginal groups 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 Aboriginal groups 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;
• advice received from the Agency regarding which Aboriginal groups are expected to be participants in the EA, and the role that these groups may play in the review;
• the ability of the applicant to represent the interests of First Nation communities that might be impacted by the Project;
• project impacts on traditional lands and resources, and on the related interests and asserted rights and title of the First Nations represented by the applicant;
• the eligible activities under the PFP – AFE for the Project, which include reviewing and commenting on the EIS and the CSR; and
• the maximum funding available to the applicant.

The FRC was impressed with the quality of the applications, which they found to be reasonable and well presented.

Recommendation

The FRC recommends allocating $70,800 of the available AFE funding to support the five applicants as follows:

• $16,150 to the Gitxaala Nation;
• $8,350 to the Kitselas First Nation;
• $8,350 to the Kitsumkalum First Nation;
• $17,000 to the Lax Kw'alaams Indian Band; and
• $20,950 to the Metlakatla Indian Band.

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

The Funding Review Committee
Canpotex Potash Terminal Project
Aboriginal Funding Envelope

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

___________________________________________
Dr. George Kupfer, Environmental and Socio-Economic Consultant

___________________________________________
Jeff Gilmour, Environmental Assessment Consultant

Recommended Participant Funding Allocations
Canpotex Potash Terminal Project
Aboriginal Funding Envelope

Applicant	Total Allocation Amount Recommended
Gitxaala Nation	$16,150
Kitselas First Nation	$8,350
Kitsumkalum First Nation	$8,350
Lax Kw'alaams Indian Band	$17,000
Metlakatla Indian Band	$20,950
TOTAL	$70,800