Recommendations for Budget 2005
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Clean Canada Fund

Summary
In the February 2004 budget, the government committed $3.5 billion to the clean up of sites under federal jurisdiction and an additional $500 million for shared jurisdiction sites such as the Sydney Tar Ponds. These commitments are substantial, however, there is still a need to address a number of policy gaps in order to ensure the funds will be well spent.

The key areas requiring more work include:

• there is no over-arching policy framework or criteria for implementation in connection with shared jurisdiction sites
• there is no way to implement the “polluter pays” principle in the current framework. There has not been any attempt to claw back funds from responsible parties
• there is no commitment to the application of the Best Available Technology in toxic clean-ups. In addition, we are concerned that there will be inadequate research to determine what are the most environmentally effective technologies for use in the clean up

Without appropriate policy direction and further funding for shared jurisdiction sites, Canada risks squandering the approved 2004 budget allocations on inadequate clean-ups, while failing to seize the opportunity to demonstrate cutting edge Canadian technology. A perfect example of this risk can be found by examining the current status of the Sydney Tar Ponds clean-up. To the government’s credit, $280 million federal dollars have been set aside for the tar ponds remediation, with $120 million contribution from the provincial government. Yet, despite this progress and good will, the current provincial plan is to use out-dated technology which is no longer recommended by the U.S. E.P.A. (mobile incineration of PCBs and mixing the remaining 700,000 tonnes of toxic waste in cement and burying it). The clean-up may increase the health risks to the adjacent community. Yet, due to the lack of guidelines, the federal government is essentially turning over the dollars without insisting on environmentally advanced technologies.

Investment
$200 million to Environment Canada to enable it to develop a shared jurisdiction fund and a long-range plan, with consistent criteria emphasising the protection of human health and the environment, while demonstrating innovative environmental technologies for the cleanup of contaminated sites of federal, provincial and shared jurisdiction.

Benefits for Canadians

• creates employment and the promotion of technological innovation in the environmental cleanup and remediation industry
• mechanism to eliminate federal and provincial environmental and financial liabilities for contaminated sites
• development of policy and mechanism for sites with shared jurisdiction
• improve quality of life: decrease in human health risk and illness, and lower associated public health costs
• increase community and business property values
• promote economic development in communities near cleanup sites
• restoration of ecological systems, fisheries, and vital ecosystem services such as water quality

Background and Rationale
Contaminated federal sites include ports, mine sites, defunct industrial facilities, abandoned hazardous waste dumps, old Distant Early Warning line sites, and nuclear power plants. In the 2004 budget, the government committed $3.5 billion to the clean up of sites under federal jurisdiction and up to $500 million for sites of shared jurisdiction such as the Sydney Tar Ponds. Treasury Board has recently issued two policies, one on accounting for costs and liabilities related to federal contaminated sites and the second on the management of federal contaminated sites with several best practices advisories and guidelines.

The inter-departmental Contaminated Sites Management Working Group (CSMWG), co-chaired by the Department of National Defence and Environment Canada, has developed a Federal Contaminated Sites Framework to co-ordinate planning and remediation. The estimated cost of remediation of these sites will now be shown as a liability on the real property accounts of the government.

We applaud these initiatives, and urge the federal government to continue its leadership in this area by facilitating a federal-provincial Clean Canada Fund.

Currently, Canadian environmental industries export about $1.6 billion per year, generate over $26 billion in total sales, and employ more than 221,000 workers — making it the third largest employment sector in Canada. The global waste cleanup market is estimated at $100 billion per year, with some countries, such as Spain, experiencing annual growth in the 20 per cent range.

With targeted investments, the potential of this emerging sector can be realized. Such investments are not only economically viable; they can also address several issues that Canadians are highly concerned about. Namely, the protection of our air, water, soil, and food, which is key to ensuring healthy communities and a high quality of life for Canadians.

As we learn more about the effects of heavy metals and endocrine disruptors on human health, the perceived need to clean up toxic sites will continue to grow. An Environics October 2000 poll showed that 84 per cent of Canadians felt cleaning up communities affected by toxic waste was very important; and an overwhelming majority felt it was more important than cutting personal income taxes (78 per cent of those polled) or corporate taxes (91 per cent of those polled).

Recommendation
Allocate $200 million in the next budget to begin the establishment of a coherent framework for the clean up of priority contaminated sites under shared jurisdiction — in collaboration with provincial, territorial, or municipal authorities where necessary — as well as for cleanup in emergencies, and for the relocation of communities at risk where warranted. The federal government can play a leadership role with the provinces in reviving the Canadian Council of Ministers of the Environment National Contaminated Sites program, or a similar program.

Although the fund would be drawn from general revenues, we anticipate that those allocations will be partially replenished by:

• a toxic substances tax on those sectors which have indirectly profited from the creation of contaminated sites (e.g. orphaned mine and tailings sites, chemical research stations)
• monies obtained through settlements with polluters that can be identified
• the sale or lease of properties that have been remediated

The fund should include an annual allocation for the development and application of technologies for remediation of contaminated sites. The program should also include research and evaluation of the effectiveness of the technologies used for cleanup.

Although the allocation of government resources to the clean-up of contaminated sites is a very important step, it is a serious concern that Canadian taxpayers have picked up the liability for contamination which has contributed to the growth and earnings of many existing Canadian companies. There is no clear government policy to recover the costs of remediation from those who have benefited from the sites.In October 2003, the Supreme Court upheld crucial the Quebec government's power to protect the environment and public health by ordering Imperial Oil to clean up a contaminated fuel depot in Levis Quebec. The court reinforce the importance of ensuring that polluters, and not the community, bear the full cost of cleaning up contaminated brownfield sites.

Over the long-term, the fund must have as an objective the cleanup of all toxic waste sites across Canada.

Alternative and Complementary Policies
In addition to the establishment of the fund, the creation of further toxic sites can be prevented by appropriate regulation and enforcement of legislation preventing the release of toxics in the environment, and by incentives to industry to refrain from the use and production of pollutants.

Contact
Elizabeth May
Sierra Club of Canada
613-241-4611

Joan Kuyek
MiningWatch Canada
613-569-3439

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