Participant Funding Program – Regular Funding Envelope
Funding Review Committee's Report
Allocation of Federal Funds for the Environmental Assessment Process for the Raven Underground Coal Mine 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 Raven Underground Coal Mine project (the Project), which is being conducted by means of a comprehensive study. Its purpose 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 allocated, and if so, in what amount.

On November 16, 2010, a total of $100,000 was made available for the EA process of the Project to support participation in community-specific meetings and public comment activities (e.g. open houses) as well as for the review of, and comment on, the:

• draft Application Information Requirements (AIR)/Environmental Impact Statement (EIS) Guidelines;
• Application for an Environmental Assessment Certificate (EAC) application/EIS; and,
• Comprehensive Study Report (CSR).

On January 6, 2011, the FRC met to review eight applications received under the PFP – RFE, for total funding request of $183,535.70 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; Dr. George Kupfer, Environmental and Socio-Economic Consultant; and Mr. Ray Crook, Environmental Assessment Consultant.

At that time, the FRC reached the conclusion that information was lacking in some of the applications, particularly details on the qualifications of the technical experts, and that one application could benefit from a change in focus.

The Agency requested additional information from applicants as well as a revised application from that one applicant. The FRC reconvened on March 14, 2011, to review the eight applications, with a funding request now totalling $183,135.70, and to consider and recommend whether funding should be allocated, and if so, to recommend an appropriate funding amount to each applicant under the Agency's PFP – RFE.

Background

Compliance Coal Corporation (the Comox Joint Venture – the Proponent) proposes the development of an underground coal mine, including coarse and fine rejects rock dumps, located approximately 20 kilometres (km) south of Courtenay on eastern Vancouver Island, British Columbia (BC). The proposed mine site will have a project footprint of about 200 hectares. The Proponent estimates that the proposed development will mine 30 million metric tonnes of raw coal and rock over 16 years (at an average rate of 1.9 million tonnes per year) to produce between 0.7 and 1.1 million tonnes of saleable coal per year. Mining operations would generate approximately 9,000,0000 cubic metres of rejects over the life of the mine. The majority of the proposed development will occur within the Cowie Creek drainage, which flows into Fanny Bay on Baynes Sound. The Proponent proposes to transport coal from the mine by truck on existing highways 80 km south, then west, to the port of Port Alberni. Port upgrading work at the port of Port Alberni is to be conducted by the Proponent to enable shipment of coal offshore.

A Notice of Commencement of a federal EA pursuant to the Act was posted to the Canadian Environmental Assessment Registry Internet site on July 19, 2010.

The proposed Project is also subject to review under BC's EA Act. A cooperative EA is being coordinated with BC's EA Office, with the Agency designated as the Federal EA Coordinator.

Eligibility

Under the PFP – RFE, funding may be provided to applicants to support their input to an EA. 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 a residence in the area or historical or cultural ties to the area likely to be affected by the Project;
• 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 (for experts);
• staff salaries and benefits (for Participation Coordinator);
• travel expenses;
• office supplies and telephone charges;
• rental of office space and meeting rooms;
• other staff salaries and benefits;
• honoraria for Elders and Chiefs to attend meetings and functions;
• ceremonial offerings related to receiving traditional knowledge;
• administrative and reporting costs;
• expenses related to local collection and distribution of information;
• legal fees;
• general media, advertising and promotion;
• purchase of information material; and
• other detailed expenses, with supporting information.

Rationale for Allocation

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

• The quality, clarity and content of the applications, particularly with respect to each applicant's proposed activities and work plan in relation to the EA;
• The eligible activities of the PFP – RFE for this project, which include participation in community-specific meetings and public comment activities (e.g. open houses), and review of, and comment on, the draft AIR/EIS Guidelines, the EAC application/EIS and the CSR;
• Confirmation received from Agency staff that its regional office would be hosting a number of public participation meetings across the project area to share information on the Project and the EA, as well as to explain the EA process; and
• The PFP policy clarification on the funding of professional fees, and staff salaries and benefits billed for personal time invested in the EA process by eligible applicants. The PFP does not reimburse individual applicants for staff salaries and benefits, and professional fees when they contribute their personal time to participate in the EA process.

Overall, the FRC was pleased with the quality of the applications, although certain clarifications and additional information were deemed necessary, and were requested from some applicants. Nevertheless, given the considerations indicated above, the FRC recommends reductions to the funding requested by some applicants under certain budget categories, to reflect both the eligibility of proposed activities for funding (per PFP policy) and the amount of time considered reasonable by the FRC to undertake certain activities.

Recommendation

The FRC recommends allocating a total of $84,160.30 to the eight applicants as follows:

• $900 to Mr. Michael Fisher
• $4,180 to the Sierra Club of BC Foundation (on behalf of Sierra Club Comox Valley);
• $28,600 to the British Columbia Shellfish Growers Association;
• $500 to Mr. Robert Christie;
• $20,504.70 to CoalWatch Comox Valley Society;
• $500 to Ms. Carolyn Shaffer;
• $28,375.60 to the Alberni Environmental Coalition; and
• $600 to Mr. Jack Cann.

The Participant Funding Review Committee
Raven Underground Coal Mine Project
Regular Funding Envelope

_________________________________
Bruce Young, Committee Chairperson, retired Director of Panel Management with the Canadian Environmental Assessment Agency

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

_________________________________
Ray Crook, Environmental Assessment Consultant

Recommended Participant Funding Allocations
Raven Underground Coal Mine Project
Regular Funding Envelope

Applicant	Total allocation amount recommended
Mr. Michael D. Fisher	$900
Sierra Club of BC Foundation (on behalf of Sierra Club Comox Valley)	$4,180
British Columbia Shellfish Growers Association	$28,600
Mr. Robert Christie	$500
CoalWatch Comox Valley Society	$20,504.70
Ms. Carolyn Shaffer	$500
Alberni Environmental Coalition	$28,375.60
Mr. Jack Cann	$600