Impact Assessments: How the CER looks at environmental and socio-economic impacts for projects

Ever wondered if there is a difference between “Impact Assessments” and “Environmental and Socio-Economic Assessments”? Is it something different, or just a different name for the same thing? Read on to learn more.

Are “Environmental and Socio-Economic Assessments (ESA)” and “Impact Assessments (IA)” the same thing?

Yes, the CER uses the terms ESA and IA interchangeably. Different organizations around the world prefer one term or the other; however, both terms refer to the process of identifying the consequences of a current or proposed project. The CER typically uses ESA on its website in its official documents.

Why does the CER call its assessment process ESAs instead of just calling them IAs?

One reason is to highlight the inclusion and the importance of both socio-economic and environmental effects of proposed projects. Another reason is to reflect the wording used in the Canadian Energy Regulator Act, which requires the Commission of the CER to take into account all considerations that appear to it to be relevant and directly related to the proposed project, including the environmental effects, the health, social, and economic effects, and the effects on the rights of Indigenous Peoples.

What are some of the key features of the CER’s ESA?

For environmental considerations, the CER’s assessment process typically includes a review of the proposed project’s effects, including cumulative effects, on:

• physical and meteorological environment,
• acoustic environment,
• air emissions,
• Canada’s ability to meet its environmental obligations,
• GHG emissions and climate change,
• fish and fish habitat,
• soil and soil productivity,
• species at risk or species of special status and related habitat,
• vegetation,
• water quality and quantity,
• wetlands, and
• wildlife and wildlife habitat.

For socio-economic considerations, the CER’s assessment process typically includes a review of the proposed project’s effects on:

• employment and economy,
• heritage resources,
• human health,
• human occupancy and resource use,
• infrastructure and services,
• navigation and navigation safety,
• the rights of Indigenous Peoples,
• social and cultural well-being, and
• traditional land and resource use.

We also examine how environmental effects may interact with socio-economic effects, as these areas are often closely linked. This integrated approach allows us to better understand the broader impacts of projects.

What is the difference between the CER’s ESA and the company’s ESA?

The Commission of the CER has a mandate to consider the environmental and socio-economic effects, as well as the effects of proposed projects on the rights of Indigenous Peoples. The Commission fulfills this portion of its mandate by conducting an ESA for proposed projects. The Commission aims to identify all potential effects associated with a proposed project, reduce adverse effects, and enhance positive effects, in order to make an informed decision or recommendation on whether the proposed project should be approved.

To inform the Commission’s analysis, companies are expected to conduct their own ESA and file the results with their application. The CER’s Filing Manual provides guidance to companies on what to include in their ESA. The requirements in the CER’s Filing Manual constitute a generic ESA scoping document.

How long has the CER been doing ESAs (or IAs)?

The CER and its predecessor, the National Energy Board (NEB), have considered environmental effects in decisions since the NEB's creation in 1959. The NEB started conducting more formal ESAs in the 1990s when making regulatory decisions. When the CER Act was introduced in 2019, it established updated factors for ESAs. These factors are consistent with those used by the Impact Assessment Agency of Canada (IAAC). Today, the CER’s ESA continues to be an essential tool in ensuring that pipelines and powerlines are constructed, operated, and abandoned in a manner that protects people, property, and the environment.

How does the CER assess environmental and socio-economic effects?

The Commission, with support from our team of experts, analysts and scientists, reviews the company’s ESA and environmental studies as part of its assessment of a proposed project. This process will determine if companies are taking the right steps to avoid or mitigate environmental and socio-economic effects. All project-related documents, including company-submitted ESAs, are available here or through the Library.

For certain applications, the Commission holds public hearings to hear the views of any member of the public and Indigenous Peoples. It considers these views before making a decision or recommendation on an application. Hearings are open to all Canadians and participant funding may be offered to facilitate participation for eligible participants.

If a project is approved, conditions may be established to help ensure specific measures for reducing or mitigating environmental and socio-economic effects will be implemented. These can include specific conditions that require environmental monitoring of certain habitats and species along a right-of-way or construction techniques to minimize effects on watercourses.