IjO oé^ Managing the Environment A Review of Best Practices Summary Executive Executive Resource Group January 2001 Managing the Environment A Review ofBest Practices Summary Executive Executive Resource Group Januciry 2001 XECUnVE RESOURCE f^pr^TUyP strategicPublicMicy I VJlVvy i andManagementConsulting ! lanuan-31,2001 Andromache Karakatsanis Secretan- ofthe Cabinet and Clerk ofthe Executive Council Room 6420, Whimey Block 99 Wellesley Street West Toronto, Ontario M7A lAl Dear Ms. Karakatsanis: It is a pleasure, on behalfofthe ProjectTeam, to submit our report on best practices in other jurisdictions. The report Managing the 'Environmentis m presented two volumes. \'olume I contains our findings on best practices, our assessment ofthe current Ontario context, and our recommendations. Volume II (on CD-ROM) contains the various research papers prepared or commissioned by the Project Team. As requested, our focus has been on identifying best practices in other jurisdictions that could be implemented in Ontario as part ofestablishing this Pro\'ince as a leading en\-ironmental jurisdiction and a model for others. In doing so, we have also provided you with our assessment ofhow Ontario is currentiy positioned against those best practices. Finally, we have pro\ided a series ofwhat we hope are practical and implementable recommendations that we believe will begin to address the goal ofestablishing Ontario as an en\ironmental management model for others. As vou will read, one ofour central conclusions is that all en\ironmental jurisdictions are strugglingwith similar management challenges and that, although there are many examples ofbest practices, no single jurisdiction could be described as leading in all areas. What does distinguish leading jurisdictions, however, is the recognition that traditional, narrow^ approaches alone are insufficient to meet current challenges. Leading jurisdictions have made the public commitment to explore new, innovative, and more comprehensive ways to protect human health and continuously improve the qualit}' ofthe environment. Thev have also demonstrated a preparedness to partner in the building of solutions and a willingness to share the results of these efforts. I would Hke to take this opportunit}' to thank those who participated in this review. Their time, experience and insights were invaluable in the preparation ofthe report. I would also like to thank the members ofmy project team - Bob Breeze, Sam Goodwin, David Girvin,John Haffner, and Morris Ilyniak - for their efforts and commitment throughout the past several months. Bob Breeze's contribution was particularly important, including his leadership, strategic insight, and stewardship ofa significant piece ofresearch on integrated compliance assurance. Sincerely, Valerie A. Gibbons Executive Summary The following is a summary ofVolume I ofour report. 7. Emerging Issues 1. Overview and Approach 8. Environmental Monitoring and Reporting 2. The Case for Action: StrategicShifts 9. Access to Scientific and Technical 3. The Ontario Ministry ofthe Expertise Environment 10. Risk Analysis 4. Environmental Compliance Assurance 11. Policy Development 5. Governance for Environmental 12. The Path Forward for Ontario: Management Recommendations 6. Environmental Knowledge Management 1. Overview and Approach environmentaljurisdiction and as a model in the future for other The purpose ofthis report is to provide jurisdictions to emulate. In this context, the Government ofOntario with an our efforts were directed at an overall independent review of bestpracticeswith management effectiveness review ofthe respect to how environment Ministry ofthe Environment, which departments in otherjurisdictions meet included: current challenges and execute their Developing an understanding ofthe various management responsibilities. current management challenges facing the Ministry, with particular Our project team, under the leadership emphasis on challenges that are ofValerie A. Gibbons, a senior partner common to most ministries or in ExecutiveResource Groupand former departments in otherjurisdictions. Ontario Deputy Minister, was assembled in response to a request from Identifying best practices from the Government ofOntario through the environment departments in other Secretary ofCabinet. jurisdictions that can inform and guide the Ministry and the The origin ofour review was the Government in meeting those Government's stated commitment to challenges. establishing Ontario as a leading Managing the Environment: ExecutiveSummar} ExeaitinResourceGroup To assist us in our work, we established 2. The Case for Action: a central line ofinquiry for the project Strategic Shifts as follows: One ofour primary assertions is that Whatare the defining advice on best practices has to be characteristics ofand/or thoroughly anchored in a larger strategic elements thatarepresentin a context ofdevelopments in modelministryor department environmental management. We found ofthe environment? a striking consensus with respect to changes in mainstream environmental The responses we received and the thinking that cut acrossjurisdictions. results ofour research led us to focus This new thinking incorporates major on two different levels offurther study: changes in how governments, the regulated community. NGOs, and the • To identify what we have referred to public are attempting to deal with as broad strategicshiftsin thinking challenges. that are taking place across leading jurisdictions with respect to Consequently, we focused on identifying complex environmental challenges. high-level strategicshiftsin environmental . Within this set ofstrategicshifts, to management that are generally identify best practices and make recognized. These high-level strategic recommendations to Government shiftsare the critical underpinning ofour with respect to a number ofkey review and provide the broader functional areas. management context that all jurisdictions need to address as part of Our activities were organized into five developing model environment categories as follows: ministries or departments. The table on the following page provides a summary . Internal information gathering with respect to MOE. ofthese shifts. . Meetings with 41 external No singlejurisdiction has completely or organizations. successfully made all ofthe shifts While . Site visits to and discussions with most have acknowledged the need for otherjurisdictions. change, each is struggling with how best to make the transition. As a result, • Extensive research and literature individualjurisdictions are at different review. stages with varying degrees ofsuccess in Commissioned and project team what is in effect a continuum ofchange. research reports, including a major paper on environmental compliance The first and most important strategic assurance. shiftis overarching and sets the stage for the larger pattern ofshifts: Managing the Environment: ExecutiveSummary ExecutiveResourceGroup - Towardsa strategic sometimes referred to as a new vision of approach to environmentalmanagement. This new Managing vision builds on the strengths of tlie Environment. traditional regulation, but also integrates it with a broader, more comprehensive approach. This approach emphasizes This shift involves moving beyond continuous improvement for all sources ofpollution, multimedia and cumulative traditional, narrow approaches to impacts, and broader public environmental responsibilities. Leading participation and access to information. jurisdictions acknowledge the inadequacy ofthe traditional model - often described as commandandcontrol It typically includes less overall emphasis as theprimaryor stand-aloneapproach to on the role ofgovernment as doer, traditional regulation and enforcement, dealing with the changing and increasingly complex environmental and a greater emphasis on the role of government to provide overall system challenges oftoday and the future. management through a range of partnerships, processes, structures, and Leadingjurisdictions are actively engaged in trying to move to the next tools. level ofdealing with the environment, Towards a Strategic Approach to From a TraditionalRegulator Managing the Environment. A 1. Oneministrybaringsoleresponsibilityfor bigb-level, government-wide rision andgoals witb enrironmentalprotection implementation sbaredacrossdifferentdepartments A A 2. primary'empbasison ensuringcompliance newandbroaderempbasison strategies topromote witb minimum standardsforlargestationary continuousimprovementin environmentaloutcomesand facilities accountabilityacrossallsourcesofpollution A 3. Traditionalprogram deliveryaccordingto place-basedapproach witb boundariesthatmake municipalorministry/departmentarea orregion environmentalplanningsenseandfacilitatea total boundaries cross-media, cumulativeapproach (sucb as watershed management) A A 4. primaryrelianceon traditionalinvestigation, morecomprehensive, flexiblesetofregulatoryand enforcement, andabatementtools non-regulator}'compliance toolsandincentives A An 5. relianceongovernmentto doitall approach basedonsharedresponsibility with the regulatedcommunity. NGOs, thepublic, andthe srientiûc/technicalcommunity Managing the Environment: ExecutiveSummary ExKvtiveResourceGroup nj Towardsa high-level, Towardsa newand ï| Strategic government-wide Strategic broaderemphasis on | i Shift#1 vision andgoals with Shift#2 strategies topromote I jj implementation shared continuous % acrossdifferent departments. improvementin environmental performance andaccountability In manyjurisdictions, the primary acrossallsources ofpollution. responsibility for the environment has been delegated for the most part to one Continuous improvement across all department ofgovernment. Leading sources ofpollution is a critical jurisdictions are recognizing that the component ofeffective environmental challenge ofeffective environmental management. Traditional management is broader than one environmental regulation has been department. There is a growing focused on the relatively narrow awareness that the solutions can only be approach ofensuring compliance with achieved by marshalling and aligning all minimum standards, set and targeted ofthe resources ofgovernment to primarily at large stationary point source achieve a common purpose. polluters and managed separately for air, water, and land. This emphasis misses Developing the capacity to deal with the the significant areas ofsmaller point and various strategicshiftsrequires a more non-point sources. comprehensive and sophisticated government strategy that: Building on the success ofpast approaches, leadingjurisdictions are Establishes a clear environmental vision for the government as a turning towards fostering a culture of whole rather than for one or two continuousimprovement. Continuous improvement means the expectation departments. that environmental conditions and the • Sets out priorities with measurable performance ofthe regulated goals and objectives - notjust for community must continue to improve. reduced emissions, but also for sustaining human health and the It is essential that this direction be environment and ensuring balance reinforced by a foundation oftough, with a strong economy. aggressive enforcement using a full Includes high-level strategies that range oftools including administrative cut across government departments and court-based penalties. and otherjurisdictions and that engage the regulated community, NGOs, and the public. Establishes a strong central capacity for coordinating efforts, ensuring consistency with the vision, and monitoring performance. Managing the Environment: ExecutiveSummary ExecutiveResourceGroup Towardsaplace-based structures and processes as well as approach with significant changes in how governments, boundaries thatmake the regulated community, NGOs, and environmentalsense the public work together as part of: andfacilitate a cross-media, . Establishing ecological boundaries cumulative approach (such as that are flexible in size and scope. watershedmanagement). Drawing heavily on local participation and in some cases, Mostjurisdictions are organized to carry local agencies with delegated out their activities using approaches that responsibilities. do not necessarily make environmental sense. Typically, this means regulating . Working with local publics and the in terms ofdistinct media, i.e. separately regulated community to establish for air, water, and land, with program goals for each place, in the form of delivery based on the geography of agreed upon public uses/activities municipalities or government offices. for the various resources within its boundaries. Leadingjurisdictions recognize that this . Establishing the maximum amounts approach does not allow them to deal [totalcumulativeload) ofpollution with environmental issues in a manner from all sources (including point, that integratesacrossmediaand deals with non-point and naturally occurring) the totalcumulativeimpacton people and that can be allowed in that area over places. a specific period consistent with achieving the agreed-upon uses. The alternative is called place-based environmental management, which . Ensuring transparent public access to as comprehensive as possible a recognizes that the natural environment has its own ecological and biophysical range ofinformation and data. boundaries. This approach emphasizes geographic convergences ofwater, land, Towardsa and air. Strategic comprehensive, more M Our research indicates a consensus that Shift flexiblesetofregulatory watershedsare an appropriate basic andnon-regulatory organizing principle for place-based toolsandincentives. environmental management. Watersheds are reasonably easy to Traditional compliance emphasizes define and remain relatively fixed over inspection, abatement, investigation, and time. Also, problems with non-point enforcement. The focus is typically on source pollution are closely associated enforcing compliance with minimum with run-offpatterns. standards for larger, stationary point source polluters. Adopting aplace-based/watershed approach requires new and different Managing the Environment: ExecutiveSummaiy ExecutiveResourceGroup