NEIA - Provincial Policy Recommendations - 25-11-15

Provincial Policy Recommendations in Support of Growing Newfoundland & Labrador’s Green Economy

November, 2015

Contents Foreward

PART II: Environmental Sector Business Operations PART III: Firm-Level Growth

PART IV: Environmental / Economic Issues PART V: Consultation with Industry

Provincial Policy Recommendations

PART I: The Growth of the Green Economy

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Foreward November 25, 2015 To whom it may concern,

Over the course of the past five months, NEIA has engaged its members, industry associations, interest groups, and environmental professionals on what they saw as obstacles to and opportunities for the growth of our province’s green economy.

The responses we received were as wide-ranging as the sector itself, but the priorities which emerged can be divided in to four distinct areas: recommendations which support (1) the growth of the provincial green economy at large; (2) environmental sector business operations; (3) firm-level growth; and (4) specific environmental / economic issues.

As the natural environment transcends each and every industry, the green economy is a very broad concept. Through this internal effort we can only hope to address the issues as we see them through our own sector’s lens, and cannot expect to capture the priorities from every angle. However, we do hope that these policy recommendations inspire further discussions with industry leaders and decision-makers on the future relationship of the environment and the economy in Newfoundland and Labrador.

This is a living document, and NEIA welcomes any commentary that your organization, or you individually, have on the recommendations that we have made. To encourage these discussions, we have created a website at www.neia.org/policy where comments can be made on each recommendation.

We look forward to working with our government partners to further investigate these and other green economy growth initiatives. NEIA is an able and willing partner and is prepared to aid in any way that it can in the exploration and implementation of our recommendations.

Provincial Policy Recommendations

The Newfoundland and Labrador Environmental Industry Association (NEIA) is proud to release a series of provincial policy recommendations in support of growing Newfoundland & Labrador’s green economy.

Our members, who were extensively consulted in the development of this document, are hopeful that discussion around these recommendations leads to a sustained dialogue between government, industry, academia, and the public on the future of green business in Newfoundland and Labrador.

Deidre Puddister Chair

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Section 1:

The Growth of the Green Economy

In some cases this support simply means matching the conditions that exist in neighbouring jurisdictions. In other cases, unique approaches are required that consider factors specific to Newfoundland and Labrador. There are also outstanding provincial issues, that are not primarily environmental in nature, which when resolved could have a significant green economy impact.

Innovation

‘Innovation’ is a key factor in the diversification of Newfoundland and Labrador’s economy. Innovation in product, process, service, business model, or market segmentation contributes to the long-term international competitiveness of firms and industries by improving productivity, creating new jobs, and driving new growth.

From a green economy perspective, Newfoundland and Labrador’s balance between economy and environment is challenged by its distance from large markets, population geography, and natural resource dependence. New and creative ideas are required to develop the unique solutions needed to avoid or mitigate the environmental effects of business activities. The solutions found in Newfoundland and Labrador can be exported to other remote, island, or ocean environments.

As innovation does not happen in isolation, and as this province scores low in innovation metrics compared to other jurisdictions, the private sector in Newfoundland and Labrador needs support in establishing the culture necessary to foster innovation.

Action Recommended:

Provincial Policy Recommendations

Green economy growth is more dependent on government policy and programming than other economic sectors. In traditional economic sectors, supports can take the form of ‘supply-side’ interventions, such as through firm-level grants, debt-financing, strategic infrastructure, and research and development services. However, to stimulate green economy growth, these supports must be complemented by ‘demand-side’ interventions aimed at developing public and/or private markets for more sustainable products and services.

Newfoundland and Labrador to give ‘innovation’ a high priority and provide the private sector with the support it needs in obtaining, understanding, recombining, and transforming new knowledge.

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Renewable Energy Newfoundland and Labrador’s energy policies trail those in many other North American jurisdictions. A net metering framework was introduced in 2015, but the road to implementation began in 2007 and has yet to be finalized. Net metering, once implemented, will serve individual utility customers and present opportunities for small-scale technology and service providers. However, additional renewable energy programs – like those found in competing jurisdictions – are required for three competitive reasons.

• Second, there are significant opportunities in Newfoundland and Labrador for renewable energy developments in wind and tidal – opportunities being pursued by local firms. Yet without modern energy programs, these firms must look beyond provincial borders for their projects. This discourages development, investment, and innovation in renewable energy within our province. The solutions developed here could not only provide economic growth and diversification domestically, but also be exported to other island or remote economies facing similar challenges.

• Third, as global markets are embracing renewable energy, firms selling internationally are increasingly being asked how their products and services interact with renewable energy technologies. This puts firms from Newfoundland and Labrador, who have little access to these technologies, at a disadvantage with their competitors.

Renewable energy development is taking place rapidly worldwide. The longer Newfoundland and Labrador remains closed to modern energy programs, the larger the gap between our province and other jurisdictions will become, and the more exacerbated the problems will be for local firms.

Action Recommended:

Newfoundland and Labrador to immediately implement a net metering program.

Action Recommended:

Newfoundland and Labrador to support renewable energy development, investment, and innovation by introducing support programs such as FITs, standard offer programs, and large renewable procurements.

Provincial Policy Recommendations

• First, there are types of large industry which, through the nature of their operations, generate energy (e.g. gasification, biomass). In other jurisdictions, these industries would be able to sell this electricity back to the energy grid through what is known as a Feed-In Tariff (FIT) program. FIT programs do not exist in Newfoundland and Labrador, and as a result companies located here may find themselves at a disadvantage competing on cost when the bottom lines of their competitors benefit from the sale of excesses. This is an obstacle in industry / business attraction and retention, and particularly prevalent in the agriculture, forestry, and manufacturing sectors.

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Action Recommended:

Newfoundland and Labrador to consult with industry on its work with the Pan-Canadian Task Force ‘to reduce the use of diesel fuel to generate electricity in remote communities’ to ensure local firms are

prepared to supply solutions when required.

Action Recommended:

Newfoundland and Labrador to investigate potential for renewable energy exports through the Maritime Link, and consult with industry on results.

The increased use of local products and services, displacing those that would be imported, contributes to local business growth, industry development, and the security of a remote population. There are also environmental benefits associated with the decreased transportation of goods to the island. Industries, from agriculture to seafood to forestry to environment, face sector-specific barriers to domestic markets which need to be explored in-depth through consultation with their stakeholders.

Action Recommended:

Newfoundland and Labrador to work with industry groups to develop and implement sector-specific strategies to maximize opportunities for respective local products and services.

Action Recommended: Newfoundland and Labrador and its crown agencies

to review internal procurement processes with an

aim to remove barriers for local firms and to

encourage local product and service purchases where appropriate.

Public Transportation The Northeast Avalon region of the province is in need of a modern public transportation system. A robust public transportation is important in regional economic development, for a number of reasons, not limited to:

Provincial Policy Recommendations

Local Products and Services

• Efficient public transportation links resources, contributing to the ease of knowledge transfer and idea sharing – and is a factor in the innovative potential of an economy;

• Efficient public transportation facilitates labour mobility, while helping ensure potential workers can reach employers regardless of their ability to own a vehicle;

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• Efficient public transportation mitigates the negative economic symptoms of aging transportation networks – congestion, disconnection, and urban sprawl;

• Effective public transportation infrastructure encourages economic development along frequently used routes and corridors;

• Effective public transportation discourages urban sprawl, contributing to increased efficiency in municipal service delivery.

Provincial leadership is required to move this issue forward. Despite continued public interest, municipalities in the region have been unwilling or unable to work together on public transportation strategy, and may not be considering the entire region’s interests in their positions. The approach by the service provider in St. John’s (Metrobus) of attempting to grow services from the capital city outwards has proven to be unsuccessful. As in other Canadian jurisdictions, provincial government leadership is needed to establish and support a regional public transportation service.

Action Recommended: Newfoundland and Labrador to provide leadership

and resources in assisting municipalities on the

Northeast Avalon in the establishment and operation

of a new regional public transportation service provider.

Municipalities Through the delivery of services, infrastructure implementation, and procurement activities, the decisions municipalities make have significant environmental implications. But municipalities have limited financial and human resource capacity with which to make difficult choices. Though a ‘green’ solution can be the best decision both environmentally and economically, up-front costs are typically higher and the payoff period is usually in the medium-to-long term. When needs are immediate, councils often rely on the status quo in the decision-making process. Federal funding is available to finance a wide variety of ‘green’ projects, yet uptake on these funds compared to municipalities in the rest of Canada is very low in Newfoundland and Labrador. More

Provincial Policy Recommendations

From a green economy perspective, an effective public transportation network has significant environmental advantages. According to the Government of Newfoundland and Labrador’s Climate Change Action Plan (2011), transportation is responsible for 31% of the province’s carbon emissions. Emissions from road transportation, such as passenger vehicles and heavy trucks, account for approximately 70% of those emissions.

With much of the province’s population living in the Northeast Avalon region, there is an opportunity to reduce emissions through the implementation of stronger public transportation systems in the region. In addition, increased use of public transportation reduces the land use pressures imposed by passenger vehicle use on municipalities – e.g. parking spaces, more and wider roads.

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‘green’ decision-making by our municipalities represents significant opportunity for green economic development, with the greatest impediment being their capacity to make informed decisions and follow through on more complex projects.

Action Recommended: Newfoundland and Labrador to develop a regional

governance model. Regional governance will increase

the capacity and resources of local decision makers,

increase the efficiency of service delivery, and ensure

land use decisions are made with long-term interests in mind.

Action Recommended: Newfoundland and Labrador to educate

municipalities on the tools they have at their

disposal that can yield a significant positive

impact on the natural environment (e.g. planning,

zoning, permitting, exemptions, procurement,

taxation, etc.)

Community Economic Development Investment Funds (CEDIFs) A CEDIF is a pool of capital which is raised from individuals within a community to operate or invest in a local business. Any individual or group can form a working group to investigate the possibility of starting a CEDIF in their community. A CEDIF need not be large at its formation. A small initial offering followed by annual, or semi-annual offerings can quickly grow to be a substantial capital pool for local investments.

Many individuals are investing in stock market holdings, RRSPs, GICs, Canada Savings Bonds, savings accounts, etc. While all can earn a return, these investments are all likely taking place outside of Newfoundland and Labrador. CEDIFs are designed to channel funds into productive investment within the communities of the investors, which would provide an important source of capital for many local businesses. This, in turn, would strengthen the local economy and that of the province. Funds are controlled by a local group of officers and directors, who may be chosen by the founders and promoters of the CEDIF or by the CEDIF’s investors at an annual general meeting. CEDIFs can help communities invest in green businesses and green projects that impact them.

Provincial Policy Recommendations

Action Recommended: Newfoundland and Labrador to provide adequate

resources to municipalities to inform decision

making, identify funding opportunities, and make appropriate ‘green’ investments.

Action Recommended: Newfoundland and Labrador to investigate

appropriate CEDIF models, consult with

stakeholders, and move forward with creating appropriate program framework.

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Consumer Incentives

Action Recommended:

Newfoundland and Labrador to conduct a cross- jurisdictional scan to identify incentives and dis-incentives used elsewhere which serve to (1) protect, mitigate damage to, or enhance the natural environment; and/or (2) support the growth of the local green economy.

Action Recommended: Newfoundland and Labrador to implement

appropriate environmental incentives and dis- incentives.

Provincial Policy Recommendations

An important approach in stimulating environmental awareness and green economy growth is by providing consumers with appropriate incentives to make choices that are environmentally and economically sound. Incentives can help break consumer habits and transform markets, and can range from encouraging the use of local products, to driving energy efficient technologies, to supporting the purchase or use of more environmentally friendly transportation. Dis-incentives, such as higher taxes on damaging products or services, or additional fees for environmentally un-friendly choices, are also important in transforming markets.

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Section 2:

Environmental Sector Business Operations

Environmental Assessment The current environmental assessment (EA) path proponents navigate has proven to be inconsistent. The crown is often unable to meet its own legislated EA timelines, and often without the compulsory notice or explanation. The unreliability of the process introduces an element of risk to business planning, and does not reward firms who are investing in the green economy through developing EA expertise and strategy. There has been a reluctance to adopt more modern EA standards and procedures which are tried and tested in other jurisdictions.

Action Recommended:

Newfoundland and Labrador to adhere to legislated timelines or amend regulations to reflect timelines the province can meet, allowing the proponent to adequately plan for a project.

Action Recommended:

Newfoundland and Labrador to consult with industry and adopt more modern environmental assessment policies and procedures, with those tried and tested in other jurisdictions given priority.

Environmental Permitting

Provincial Policy Recommendations

The day to day operations of environmental sector firms in Newfoundland and Labrador are impacted by processes established in assessment, permitting, enforcement, regulation, and legislation as they relate to the environment. How these instruments are designed and implemented can affect an industry’s ability to innovate and compete. In this province, the modernization of these processes can help foster green economy growth.

Industry is experiencing inconsistent permit requirements based on project location, size, timelines, proponent, and date of submission. These fluid requirements are not being communicated to the private sector adequately, putting firms at risk of noncompliance. Businesses need a predictable permitting process in order to effectively plan and ensure conformity with established requirements.

Action Recommended: Newfoundland and Labrador to consult with industry

and implement standardized and predictable

environmental permitting processes.

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Environmental Enforcement

Action Recommended: Newfoundland and Labrador to increase its capacity,

possibly through new monitoring technologies

and services, to inspect and enforce environmental permits and legislation.

Operational Regulations and Incentives Regulations such as building codes, emissions targets, waste management practices, etc. can be used to protect the environment, reduce greenhouse gasses, and encourage greater environmental awareness within industries. Incentives, such as targeted tax rebates, subsidies, and rewards for the use of local products and services, can do the same while supporting the growth of local green industry.

Action Recommended:

Newfoundland and Labrador to conduct a cross- jurisdictional scan to identify regulatory and incentive frameworks used elsewhere which serve to (1) protect, mitigate damage to, or enhance the natural environment; and/or (2) support the growth of the local green economy.

Action Recommended: Newfoundland and Labrador to implement

appropriate environmental regulations and incentives.

Provincial Policy Recommendations

There is very little inspection to ensure compliance with environmental legislation and conditions in permits, approvals, licenses, etc. As a result there is negligible incentive for firms to invest in environmental staff or environmental management systems to ensure conditions are satisfied, which limits the growth of aggregate environmental expertise in the province. This increases the likelihood that conditions are not being met and that environmental damage is taking place. Additionally, the lack of enforcement slows the adoption of environmental practices that are needed to compete internationally or even nationally. These problems are particularly prevalent in all stages of construction, resource development, and in the areas of water quality and waste management.

Comprehensive Legislation and Guidance Documents Elements of Newfoundland and Labrador’s environmental legislation have been identified as being outdated, misleading, or not comprehensive. This is particularly true in relation to the Water and Sewage Regulations, the Storage and Handling of Gasoline and Associated Products Regulations, and the Environmental Protection Act. Updated legislation can increase process efficiency and environmental protection. Legislation and regulations can be supported by ‘Codes of Practice / Guidance’ which outline

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project pathways for both the government and proponent. These documents provide consistency, predictability, and efficiency for both parties but are under-utilized and/ or outdated in Newfoundland and Labrador.

Action Recommended:

Newfoundland and Labrador to work with environmental industry and other stakeholders to identify and update outdated legislation.

Provincial Policy Recommendations

Action Recommended: Newfoundland and Labrador to consult with industry

to revise and improve existing codes of practice /

guidance, and develop new documents for a wider variety of activities.

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Section 3:

Firm-Level Growth The growth of any sector is dependent on broad economic development strategies, sectorlevel initiatives, and also the supports provided at the individual firm-level. There are a number of strong business supports which are already in place at the provincial level.

The environmental sector has identified a number of specific opportunities for program improvement or introduction to facilitate green economy growth.

The environmental sector has identified a number of issues experienced with the public procurement process and approach, including the following:

• Requests for proposals (RFPs) are often specifying products that are compatible with outdated systems, thereby excluding the applicability of newer and more efficient components that may be locally manufactured or more environmentally sound. Prior to tendering, RFPs have not been used enough to determine what products and services are available locally.

• When smaller firms are responding to RFPs, government seeks validation of environmentally friendly products and technologies that are already widely used in other jurisdictions.

• Small firms are not given the necessary advance notice when large procurements may be on the horizon.

• RFPs, on occasion, are asking for packaged products or services with elements not available within the province, thus inhibiting local bids.

It is NEIA’s view that many of these issues are caused by RFPs that delineate a project or product in exact terms, e.g. defining not just the final deliverable but also how that deliverable should be achieved. This eliminates new ideas and alternative solutions from the outset, and discourages innovative thinking. Government (and Crown agency) RFPs should be prescriptive in desired outcomes, not processes.

Action Recommended:

Provincial Policy Recommendations

Procurement

Newfoundland and Labrador to review procurement process to ensure it is supporting – and not inhibiting – local supply and innovation.

Action Recommended: Newfoundland and Labrador to investigate using

outcome-based RFPs (as opposed to process- prescriptive).

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Pilot Projects Supporting local firms by engaging their products and services through pilot projects will allow firms to acquire the necessary real-world feedback, experience, and clientele needed to bring their product or services to market. Lead customers provide credibility, validate products, attract private sector investment, and accelerate market adoption.

Government lead customers are especially desirable as they provide firms with the reference projects and customer name recognition that is required to enter new markets – particularly internationally.

Provincial Policy Recommendations

Given Newfoundland and Labrador’s remote location and distance to large markets, it has the opportunity to become a leader in dealing with the environmental challenges brought on by this geography and in providing solutions for industries working within that context. Partnering on pilot projects will help support innovative approaches to these challenges and the export of successful products and services to regions facing similar challenges.

Action Recommended: Newfoundland and Labrador to ensure legislative

and policy framework allows for – and encourages –

the use of pilot projects for local products and services.

Standards and Certifications The achievement of standards and certifications serves to increase competiveness and productivity at the firm level, and capacity and expertise at the sector level. These standards include environmental, quality, health and safety, lean systems, etc. Standards and certifications are particularly important for firms in the green economy, as those without the appropriate credentials are often excluded in fear of ‘green-washing’.

Government has played a positive role in supporting firms in pursuit of credentials.

Action Recommended:

Newfoundland and Labrador to increase support and promotion for firms in the environmental sector in achieving standards and certifications.

Action Recommended: As per the 2011 Report “An Analysis of the Economic Development Opportunities

Associated with the Green Economy in Newfoundland

& Labrador”, Newfoundland and Labrador to

investigate provincial-based testing and certification

services – in various sectors – where national and

international standards are not appropriate.

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Section 4:

Environmental / Economic Issues

Carbon Pricing Large industry is estimated by the Office of Climate Change and Energy Efficiency to be the biggest contributor to greenhouse gas emissions – accounting for almost half of all emissions. Carbon pricing is considered by economists to be the most efficient way to reduce emissions of this nature, forcing polluters and their consumers to pay while rewarding those investing in more sustainable solutions. In light of recent carbon pricing initiatives in Ontario, Quebec, and Alberta, Newfoundland and Labrador is now among the remaining 15% of the Canadian population that does not price carbon emissions.

Firms operating in an economy that does not encourage emissions reductions will be at a disadvantage when exploring national and international markets.

Action Recommended:

Newfoundland and Labrador to develop and implement a carbon pricing strategy.

Action Recommended:

Newfoundland and Labrador carbon pricing strategy to include reinvestment of portion of program revenues in green infrastructure, projects, research, and local technology development.

Commercial and Household Waste Management Robust recycling programs remain elusive for many municipalities in Newfoundland and Labrador, while participation rates appear to be dropping in St. John’s. Meanwhile organic materials represent up to 30% of the waste generated in households, but there are few practical options available to residents in any region of the province to dispose of it in an environmentally friendly manner. Proper disposal of organic waste reduces greenhouse gas emissions, extends the lifespan of landfills, and generates a useful byproduct from what otherwise would be waste. Curbside composting programs have been in place in other Canadian jurisdictions for decades.

A significant percentage of Newfoundland and Labrador’s waste is generated in commercial and institutional environments. Leaders in Newfoundland and Labrador’s

Provincial Policy Recommendations

There are a number of important environmental issues facing Newfoundland and Labrador which have economic implications. Some of these issues can be addressed following successful models in comparable jurisdictions. Other issues, unique to the province, will require innovative and home grown solutions. The resolution of these issues will protect, mitigate damage to, or enhance the natural environment while providing green business opportunities in the process.

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restaurant industry are willing and potentially powerful partners in waste management education, but required infrastructure to facilitate this does not exist to accommodate their needs.

Action Recommended:

Newfoundland and Labrador to aggressively work with municipalities with inadequate recycling services to implement recycling programs.

Action Recommended:

Newfoundland and Labrador to accelerate plans for curbside organics programs in denser regions.

Action Recommended: Newfoundland and Labrador to work with

stakeholders to develop waste management

strategy for commercial, institutional, and multi-unit dwellings.

Action Recommended:

Newfoundland and Labrador to work with restaurant industry to develop required infrastructure to help business owners become leaders in waste management.

Industrial Waste Management As our industries continue to grow and economic development takes place throughout the province, commercial and industrial waste has been identified as an emerging cause for concern. Waste disposal logistics are exacerbated by economies of scale in a small province, the distance from Newfoundland and Labrador to larger markets, and its scattered population. Waste in the construction industry is typically disposed of in bulk, when amongst the materials there may be hazardous waste or even salvageable materials. Sometimes this waste is dumped indiscriminately. Meanwhile, both the aquaculture and fishing industries seasonally dispose of large quantities of by-product as waste at sea or on land. These industries, as well as forestry, produce waste that has potential for new uses or refinement in to new products. Innovative thinking is required to solve the logistical challenges waste management poses, and to discover new uses and possible revenue streams for industry. New ideas can mitigate environmental damage, increase the competitiveness of local industry, and spawn new firms and industries.

Provincial Policy Recommendations

Action Recommended: Newfoundland and Labrador to work with waste

management authorities and municipalities to make curbside programs mandatory.

Action Recommended: Newfoundland and Labrador to directly support

innovation in the fishing and aquaculture

industries, with a focus on the capture of and product development from waste streams.

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Action Recommended: Newfoundland and Labrador to assist in the

prioritization and development of local markets for forestry industry by-products.

Action Recommended:

Newfoundland and Labrador to work with construction industry stakeholders to address waste management concerns, while increasing monitoring and enforcement of existing regulations.

Building and Construction

Action Recommended:

Newfoundland and Labrador to lead by example and ensure new provincial buildings are built and registered to LEED or comparable standard.

Action Recommended:

Newfoundland and Labrador to lead by example and investigate the adoption of ‘BOMA BESt’ certification for existing public sector buildings - as is the federal government’s policy.

Action Recommended: Newfoundland and Labrador to join provincial

partners in adopting the National Energy Code of Canada for Buildings (NECB).

Provincial Policy Recommendations

Nearly all stages of design, construction, operation, and eventual disposal of buildings present significant opportunities for green economy growth. High-performing green buildings provide the best value for developers and for the public through both life cycle cost benefits and positive effects on human health and performance. The use of modern landscaping techniques on properties can protect against climate change, reduce the burden on local water management infrastructure, and be aesthetically superior. The use of local products in building can reduce the environmental footprint of construction and bolster local industry. It is important for industry in Newfoundland and Labrador to keep pace with the rest of North America in green building practices – otherwise local skills will become obsolete, local products and services will not meet standards outside of the province, and local forward-thinking firms will have no domestic market to refine and grow their green product and service offerings.

Action Recommended: Newfoundland and Labrador to investigate

pilot building projects using local products

and services, e.g. pellet stoves as a renewable heating source.

Action Recommended:

Newfoundland and Labrador to provide incentives to builders and developers to use wood products provided by local forestry industry.

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Action Recommended: Newfoundland and Labrador to educate customers

on the importance of energy efficiency by requiring

recent energy audits as part of the sale of homes and buildings.

Wastewater

Action Recommended:

Newfoundland and Labrador to actively work with the federal government to create and provide the necessary support mechanisms for municipalities affected by new regulations.

Drinking Water A lack of capacity, resources, and understanding at the municipal level of government in the importance of source water protection is contributing to weak adherence to drinking water regulations, especially when human and financial resources are limited. Watershed planning has been employed as a source water protection tool in other jurisdictions – and is particularly useful where watersheds are shared between communities – but this is not a common practice in Newfoundland and Labrador.

Newfoundland and Labrador is also estimated to have the second highest per capita water usage rate in Canada, with use highest in rural areas. Water conservation extends the life of existing infrastructure, reduces treatment costs, and can decrease additional growth-based investments. There are a number of firms in Newfoundland and Labrador which provide expertise in drinking water technologies and services.

Action Recommended:

Newfoundland and Labrador to increase adherence to water quality standards throughout the province by expanding the ‘Permit to Operate Drinking Water System Inspection Program’ so that communities are inspected at least once a year.

Action Recommended:

Newfoundland and Labrador to work with municipalities to educate staff and residents about the importance of water conservation.

Provincial Policy Recommendations

The federal wastewater systems effluent regulations announced on July 18, 2012 established new national standards for Canada’s wastewater treatment systems. 185 of 186 systems in Newfoundland and Labrador requiring upgrades need to do so by 2020. It is estimated that $500 million will be needed to build the required treatment facilities, in addition to additional assessment, planning, and operating costs. The introduction of new regulations has not been followed up with appropriate financial support for municipalities to meet new federal legislation. There are numerous firms in Newfoundland and Labrador that provide wastewater treatment solutions which have the capabilities and expertise to assist municipalities in complying with these federal requirements.

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Action Recommended: Newfoundland and Labrador to provide support to

municipalities who move towards metering water use.

Wetlands

Action Recommended:

Newfoundland and Labrador to develop a modern provincial wetland policy which includes a mitigation hierarchy for wetlands that provide important ecological functions and/or are located near areas under development pressures.

Transportation and Greenhouse Gas Emissions The Office of Climate Change and Energy Efficiency identifies ‘transportation’ as the next largest source of greenhouse gas emissions in Newfoundland and Labrador behind industry. With the Muskrat Falls hydroelectric project coming online in 2018, 98% of power consumed in Newfoundland and Labrador will be generated by renewable energy sources. This presents an opportunity for Newfoundland and Labrador to decrease greenhouse gas emissions through the electrification of transportation infrastructure; shifting energy consumption from fossil fuels will have environmental benefits while an increasing demand in electricity will simultaneously have a positive effect on government revenues. Where electrification is not feasible, transitioning to biofuels can have significant environmental advantages and benefit other industries which produce by-products appropriate for refinement.

Action Recommended:

Provincial Policy Recommendations

Contrary to the Canadian standard, there is no mitigation hierarchy referenced in current Newfoundland and Labrador development policies as they relate to wetlands.

The mitigation hierarchy advocates – through the course of a development – for avoidance of wetlands, minimization of disturbances, and as a last resort a requirement of compensation for impacts. Strong wetland policy is growing in importance, particularly for regions under development pressures, such as the Northeast Avalon.

This region is becoming highly urbanized, and remaining wetlands must be protected and valued to ensure they will continue to contribute to stormwater management, water quality, wildlife habitat, and the region’s biodiversity. As water systems do not adhere to municipal boundaries, provincial leadership is required to ensure that all decision-makers in these regions treat wetlands in the same manner. Clear regulations and guidelines for work in and around wetlands provides consistency, predictability, and ultimately efficiency for developers.

Newfoundland and Labrador to lead by example by transitioning its fleet of vehicles and those

of its crown agencies to electric technology.

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Action Recommended: Newfoundland and Labrador to continue to support

electric vehicle infrastructure development through

the strategic installation of charging stations and technician training.

Action Recommended: Newfoundland and Labrador to support

municipalities in decision-making regarding

fleet and public transportation transformation towards electric technology.

Newfoundland and Labrador to provide incentives for consumers and businesses to invest in electric vehicles, and implement dis-incentives for the purchase and/or operation of less efficient vehicles.

Action Recommended: As per the 2011 Report “An Analysis of the Economic

Development Opportunities Associated with the

Green Economy in Newfoundland & Labrador”,

Newfoundland and Labrador to develop

and implement a liquid bio-fuels strategy which

identifies the most promising pathways for

bio-fuels production and opportunities to grow the local market.

Land-Use Framework A land-use planning framework is an approach to manage public and private lands and natural resources to achieve long-term economic, environmental and social goals. Its purpose is to effectively balance competing demands for land and water resources.

Newfoundland and Labrador’s natural resource industries – oil and gas, mining, energy, fishing, aquaculture, agriculture, forestry, and tourism – have co-existed in our modern economy without significant disruption. However, with increased development comes increased discussion on priorities such as ocean navigation, proximity of projects, protected areas, etc.

Provincial Policy Recommendations

Action Recommended:

Once established, a land-use framework provides the benefits of increased predictability for industry, a sense of certainty in the stewardship and conservation of public and private lands, the clarification of roles and responsibilities for land-use decisions at all levels, and improved levels of information sharing. A framework would ensure the activities geographically of one industry are not in direct opposition to the interests of another.

The development of a land-use planning framework would be complementary to future discussions around regional governance in Newfoundland and Labrador.

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Action Recommended:

Newfoundland and Labrador to review Alberta’s Land-Use Framework and assess long-term benefits of implementation of similar system.

Environmental Education

From an economic development perspective, there are opportunities for Newfoundland and Labrador to become a global leader in green products and services as they relate to the ocean environment, an island setting, the distance from major markets, service delivery for remote areas, and major industries such as oil and gas. However, these opportunities are unlikely to be realized if the resident population has little appreciation for the environment. The basic principles of sustainability must be widely understood by both decision-makers and end users. The provincial government – which has an unparalleled geographical and employment footprint – must lead.

Action Recommended: Newfoundland and Labrador to educate all

employees, departments, and crown agencies in environmental awareness.

Action Recommended:

Newfoundland and Labrador to lead by example and implement – and enforce – sustainability considerations in internal decision-making processes.

Action Recommended: Newfoundland and Labrador to work with industry

on a long-term campaign to increase environmental

awareness within the private sector, including the

integration of sustainability principles in to respective training programs.

Action Recommended: Newfoundland and Labrador to work with public

and private stakeholders on a long-term campaign to

increase environmental awareness with the general public.

Action Recommended:

Provincial Policy Recommendations

Relative to even neighbouring provinces, there is a general low level of understanding in Newfoundland and Labrador of the environmental implications of every-day personal and firm-level decision-making. This educational gap is to the detriment of the natural environment, slows public interest in standard levels of environmental stewardship and services, restricts domestic demand for sustainable products and services, and inhibits environmental entrepreneurship and intrapreneurship.

Newfoundland and Labrador to work with municipalities in greening their operations and communicating environmental initiatives, priorities, and issues. Municipalities enjoy a close relationship with residents as the services they provide often directly impact day-to-day lives.

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Section 5:

Consultation with Industry

Industry must have significant opportunity to engage decision-makers and provide input on policies, regulations, strategies, and frameworks which have – or could potentially have – environmental and economic outcomes. A lack of communication, even between departmental lines, can result in policies which do not reflect the needs of local firms or do not consider economic development opportunities in the green economy. Innovative firms need an innovative and agile policy framework to succeed. Ongoing consultation with industry is required to provide such a framework.

Action Recommended:

Newfoundland and Labrador’s relevant departments and offices to consult with the environmental

industry on an ongoing basis in the development of policy, regulation, and growth strategy.

Action Recommended: Newfoundland and Labrador to leverage

environmental sector expertise found in

its institutions, e.g. the Environmental Policy Institute

at Memorial University’s Grenfell Campus, and the Marine Institute.

Action Recommended: Newfoundland and Labrador, and its crown

agencies, to consult extensively with industry in the

development of future benefits agreements and

major project contracts, with a priority towards long term sector development.

Provincial Policy Recommendations

A thriving green economy requires government intervention to aid in market development and transformation. The green economy can be particularly impacted by decisions related to business development and support, environmental protection and mitigation, and resource development. Close relationships between industry and (1) the Department of Business, Trade, Culture, and Rural Development; (2) the Department of Environment and Conservation; (3) the Office of Climate Change and Energy Efficiency; and (4) the Department of Natural Resources are required to grow the sector.

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