Summary of the Evaluation of the West Coast Energy Infrastructure Initiative
Objective of the Evaluation
The objective of the evaluation was to assess the relevance, efficiency and effectiveness of the West Coast Energy Infrastructure (WCEI) Initiative delivered between 2014-15 and 2018-19.
Program Description
The purpose of the WCEI Initiative was to ensure that federal engagement with Indigenous communities on energy infrastructure on the West Coast of British Columbia (BC) resulted in concrete actions and investments that addressed Indigenous priorities. This was a direct response to recommendations made by Douglas Eyford, Special Federal Representative on West Coast Energy Infrastructure. The WCEI Initiative was not responsible for project-specific consultations (e.g., liquefied natural gas projects or pipeline expansion projects), as these were advanced by Natural Resources Canada’s (NRCan) Major Projects Management Office (MPMO), the National Energy Board (NEB), or the Canadian Environmental Assessment Agency (now Impact Assessment Agency of Canada [IAAC]).
The WCEI was a federal horizontal initiative involving four federal departments, led by NRCan. The initiative was comprised of four elements:
- Strategic regional presence within NRCan through the establishment of the Major Partnerships Office – West (now Indigenous Partnerships Office – West [IPO-West]) in Vancouver, BC;
- Skills and Partnership Fund - West Coast Energy (SPF-WCE) within Employment and Social Development Canada (ESDC);
- Strategic Partnerships Initiative - West Coast Energy (SPI-WCE), administered by Indigenous and Northern Affairs Canada (now Indigenous Services Canada [ISC]); and
- Cumulative Effects Monitoring Initiative (CEMI), led by Environment and Climate Change Canada (ECCC).
Evaluation Scope
The evaluation was completed in January 2019 and covered the period from 2014-15 to 2017-18. Total funding for the initiative was $103.67 million (M). The evaluation was conducted in accordance with the Treasury Board Policy on Results. It consists of an analysis based on the findings of the IPO-West evaluation conducted by NRCan, the SPI-WCE technical report done by ISC/CIRNAC, and the SPF-WCE technical report by ESDC. In addition, program information about CEMI was collected through documents and interviews.
The primary limitation of the evaluation is the limited number of interviews conducted with Indigenous respondents (11 interviews for IPO-West, interviews with members from 10 communities for SPI-WCE, and 2 interviews for CEMI).
Evaluation Findings
The evaluation of WCEI found that there is an ongoing need to support Indigenous participation in energy infrastructure development projects, which includes the provision of skills and tools. As energy infrastructure projects raise environmental concerns, communities continue to express an ongoing need to obtain baseline data, and monitor their effects, to inform discussions and decision-making on energy infrastructure development.
WCEI was generally aligned with federal priorities, roles, and responsibilities, although questions were raised as to whether the WCEI was well aligned with Indigenous and Northern Affairs Canada’s mandate, and views about the effectiveness of the governance of WCEI were mixed. The horizontal governance structure facilitated information sharing and strategic alignment, however, many government respondents were unclear as to the exact role of IPO-West and the effectiveness of the single-window approach. It was noted that there were delays and challenges associated with decision-making processes to deliver grant and contribution (G&C) funding. All components of the WCEI were under-budget due to delayed hiring, delayed energy infrastructure projects, and the time required to build effective relationships with Indigenous communities.
Through WCEI, Indigenous communities were engaged in energy infrastructure. Indigenous priorities and interests were identified, including early and ongoing engagement outside of the regulatory process, increased access to jobs and economic growth, fish habitat restoration and environmental stewardship. Groups with diverse views and interests worked together and Indigenous participation in energy projects increased. Indigenous partners who participated in the evaluation raised concerns that if WCEI is downscaled or interrupted, relationships may be negatively impacted.
Recommendations
The Evaluation has resulted in four (4) recommendations.
Recommendation 1
| Given that Canada is advancing reconciliation through targeted efforts and effective relationships, and considering concerns about cumulative effects of multiple resource developments, it is recommended that Departments involved in the WCEI use engagement approaches consistent with, and building on observations in the 2013 Douglas R. Eyford Report. Eyford advocated for early and broad engagement with Indigenous communities that goes beyond a project-specific legal duty to consult, using a whole-of-government approach. To support future approaches to jointly funded priority projects such as WCEI, a detailed assessment of engagement approaches (i.e. whole of government and single window), including best practices and lessons learned, should be undertaken. NRCan will lead this effort. |
| NRCan management agrees In response to this recommendation, in 2018-19 and 2019-20, NRCan documented best practices and lessons learned for Indigenous engagement in BC regarding energy infrastructure, including the development of the Strategic Partnerships Initiative – West Coast Energy Projects Summary Review and a summary placemat. The Project Summary Review identifies trends and observations that emerged from the WCEI and found that the continuance of WCEI approaches (e.g. proposal development support) was strongly encouraged by Indigenous and federal government program participants. NRCan also produced a summary placemat of lessons learned regarding the success factors for Indigenous partnerships. The information was shared within NRCan and with WCEI partner departments (ISC, ECCC, Fisheries and Oceans Canada [DFO], WD and Transport Canada), and discussed with federal departments and agencies participating in the Major Projects Management Office Initiative (MPMOI), to inform future approaches to Indigenous engagement on energy infrastructure and related horizontal initiatives. Actions taken to address the recommendation include:
Due Date – September 30, 2020 |
Recommendation 2
| Considering the delays in energy projects and the continued need for the Government of Canada to engage Indigenous communities in resource development, notably in West Coast energy development, it is recommended that NRCan clarifies and communicates IPO-West roles and responsibilities, with special attention to the role played by other federal departments and agencies that are working with west coast Indigenous communities on socio-economic issues. |
| NRCan management agrees In 2019-20, NRCan integrated IPO-West into the MPMO portfolio. MPMO is now responsible for the accountability and oversight of IPO-West, and has now clarified and communicated roles and responsibilities to relevant departments involved or implicated. Budget 2019 renewed key components of the WCEI, including NRCan’s strategic regional presence in Western Canada to deliver targeted funding focused on increasing Indigenous participation in the natural resource sectors through the Indigenous Natural Resource Partnerships (INRP) program. The renewed funding supported Indigenous economic participation in the energy sector in BC and Alberta. This approach complemented the active work of other federal departments, but reduced the need to engage with departments like ECCC and DFO. The Economic and Fiscal Snapshot 2020 provided two more years of funding, starting in 2020-21, to IPO – West to continue to build Indigenous capacity to participate in and benefit from natural resource infrastructure development in BC and Alberta. In 2020, the Minister of Natural Resources, in consultation with the Ministers of Indigenous Services and Environment and Climate Change, was asked by Treasury Board to develop a policy proposal with a long-term plan for the Indigenous Partnerships Office initiative. This proposal is to include an assessment of the continuing need and the appropriate governance for the initiative, and opportunities to leverage existing resources at NRCan, ISC and IAAC to support Indigenous engagement in resource development projects. Actions to be taken to address the recommendation include:
Due Date – April 1, 2022 |
Recommendation 3
| Given the findings related to the lengthiness of G&C decision-making processes, it is recommended that an IPO-West G&C budget be retained by NRCan to reduce delays and lengthiness of decision-making processes when funding engagement projects with Indigenous communities in West Coast energy development. In so doing, NRCan should initiate additional work with WCEI Departments to ensure that the activities funded through this budget avoid duplications with existing federal government funding mechanisms and align with NRCan’s mandate. |
| NRCan management agrees On June 20, 2019, NRCan received policy and financial authorities to implement a simplified process to deliver contribution funds directly to Indigenous communities through the INRP program. Budget 2019 renewed key components of the WCEI, including NRCan’s strategic regional presence in Western Canada to deliver targeted funding focused on increasing Indigenous participatioBudget 2019 renewed key components of the WCEI, including a G&C budget of $6M over one year, which was delivered directly by NRCan in Western Canada. The funding focused on NRCan’s mandate to support Indigenous economic participation in the energy sector, and a simplified process was implemented to deliver funding directly to Indigenous communities. The INRP established the capacity of NRCan to deliver an Indigenous-focused G&C program in Western Canada beyond 2019-2020. In 2020, IPO-West was renewed for two years with a G&C budget of $12M. This level of funding is consistent with historical levels of funding for the INRP program ($6M over one year). NRCan will build on the regional capacity it established in 2019-20 to deliver $12M directly to Indigenous communities in 2020-22, and will establish a mechanism to ensure federal departments are engaged on project decisions where relevant. Actions to be taken to address the recommendation include:
Due Date – September 30, 2020 |
Recommendation 4
| Considering the significant work related to engaging with Indigenous groups and to monitoring cumulative effects under the WCEI, best practices and lessons learned from this evaluation should be jointly developed by the Departments involved in the WCEI, and be shared across the federal government, to inform current and future natural resources program development and implementation by federal departments. |
| NRCan management agrees NRCan facilitated the sharing of best practices and lessons learned related to engaging with Indigenous groups and to monitoring cumulative effects within NRCan via the Policy Science Integration Committee, and with other relevant federal departments through the MPMOI. Best practices and lessons learned informed the cross-government development of TMX accommodation measures (June 2019) including the Aquatic Habitat Restoration Fund (Fish Habitat Renewal projects under SPI-WCE), and the Terrestrial Cumulative Effects and Salish Sea Initiatives (the WCEI’s Cumulative Effects Monitoring Initiative). Evaluation results and lessons learned will inform program delivery over the next two years, including efforts to support related activities in other parts of Alberta and BC; and the long-term plan for the Indigenous Partnerships Office initiative. These considerations will be undertaken in collaboration with relevant federal departments, including ISC, ECCC, DFO, and IAAC. Responsible Manager – NRCan’s Assistant Deputy Minister of MPMO Due Date – September 30, 2020 |
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