Grand Riverkeeper Labrador’s comment regarding the co-operation agreement on impact assessments between the Government of Canada and Newfoundland and Labrador, and to outline key risks and recommended conditions for proceeding.
Key Message
While coordination between federal and provincial assessment processes is desirable, the proposed agreement risks weakening environmental oversight, limiting meaningful public participation, and increasing the likelihood of flawed project approvals.
The cooperation agreement is intended to reduce duplication, improve efficiency, support investment and advance “one project–one review”
This principle is supported in concept—but not if it compromises environmental protection, Indigenous rights, or public participation.
Federal authority in impact assessment has been clearly affirmed through decisions such as the Oldman River Dam case, which confirmed federal responsibility in areas such as fisheries, navigable waters, and transboundary effects.
Key Concerns
1. Erosion of Federal Oversight
- The agreement may allow provincial processes to substitute for federal assessments with only limited federal involvement.
- This risks undermining constitutionally grounded federal responsibilities.
2. Lack of Meaningful Public Participation
- The federal process includes participant (intervenor) funding, enabling informed and equitable public engagement.
- The Newfoundland and Labrador process does not provide comparable funding or support.
- Without funding, participation is limited and risks becoming procedural rather than meaningful.
Implication: Reduced transparency, weaker evidence base, and diminished public trust.
3. Risk of “Optimism Bias” in Decision-Making
- Major project assessments are vulnerable to underestimating costs and risks while overestimating benefits.
- Provincial processes may be more susceptible due to:
- Political and economic pressures
- Job creation and growth incentives
- Desire for “legacy” projects
Evidence from the Muskrat Falls Inquiry demonstrates the severe consequences of such bias, including cost overruns and long-term economic impacts.
4. Precedent of Inadequate Provincial Assessments
- Recent provincial decisions (e.g., wind-to-hydrogen development proposals) illustrate:
- Limited public input
- Insufficient consideration of risks
- Lack of independent scrutiny
Implications if Adopted Without Reform
- Weakened environmental protection
- Increased risk of project failure and cost overruns
- Reduced public trust in decision-making
- Negative impacts on health, economy, and climate outcomes
Recommendations
The agreement should not proceed unless the following conditions are met:
- Establish Meaningful Public Participation
- Implement participant funding comparable to federal programs
- Ensure early, inclusive, and accessible engagement
- Maintain Strong Federal Oversight
- Guarantee federal leadership in areas of constitutional jurisdiction
- Avoid substitution where provincial processes are not equivalent
- Address Optimism Bias
- Require independent review of project assumptions
- Strengthen risk assessment and accountability mechanisms
- Align Provincial Standards with Federal Requirements
- Ensure assessment of environmental, health, social, and economic impacts
- Incorporate Indigenous knowledge and rights meaningfully
Conclusion
It is our position at Grand RiverKeeper Labrador is that the proposed co-operation agreement, in its current form, does not meet the standard required to ensure robust, fair, and evidence-based impact assessment.
Without significant reforms—particularly in public participation, funding, and oversight—it risks undermining both environmental protection and public confidence in decision-making.
Our goal is to preserve and protect the water quality and the ecological integrity of the Grand (Churchill) River and its estuaries for present and future users and for posterity through actions of public awareness, monitoring, research, networking, intervention and habitat restoration. As such one of our key objectives is to bring awareness both locally and globally of the cumulative impacts associated with megadams that we become aware of through our research.
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