Treasury Board urged to investigate ballooning costs and ethics issues at AECL

La version française suit 

September 15, 2020
The Hon. Jean-Yves Duclos, President

The Hon. Joyce Murray, Vice-Chair

The Hon. Bardish Chagger, Member

The Hon. Catherine McKenna, Member

The Hon. Chrystia Freeland, Member

The Hon. Jonathan Wilkinson, Member

Treasury Board of Canada

Dear Mr. Duclos and Members of the Treasury Board:

We would like to bring to your attention problems with the handling of Canada’s $8 billion federal nuclear waste and decommissioning liability by Atomic Energy of Canada Limited (AECL).

As detailed in the attached discussion paper, “The Government of Canada’s Radioactive Wastes:  Costs and Liabilities Growing under Public-Private Partnership”, taxpayer funding to AECL roughly quadrupled to $1.3 billion between 2015/16 and 2020/21. During this period, AECL’s reported liabilities increased by $332 million. 

The previous Conservative Government attempted to cut costs and accelerate reduction of federal nuclear waste liabilities by implementing a public-private partnership or GoCo (“Government owned, Contractor operated”) contract between AECL and a multinational consortium.

The GoCo contractor is advancing substandard radioactive waste projects that do not comply with international standards and obligations. Environmental assessments are mired in controversy and several years behind schedule.

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Treasury Board President Jean-Yves Duclos (iPolitics/Matthew Usherwood)

In the process of implementing the GoCo contract, Government oversight was greatly reduced and control over Canada’s federally-owned nuclear facilities and radioactive wastes was largely transferred to American-owned interests. It appears that AECL’s president Richard Sexton, is an American national and former senior executive in two of the original corporations awarded the GoCo contract in 2015 as members of the Canadian National Energy Alliance (CNEA) consortium. Mr. Sexton is also the Fee Distribution Officer who determines the “award fees” received by the consortium. AECL’s Lead Contracts Officer is an American national. The board of CNEA is comprised of a majority of American nationals. The GoCo contract was recently renewed unexpectedly, 18 months prior to its official expiry date, with no information provided as to the reason for the early renewal.

Issues of ethics and accountability have arisen in connection with the GoCo contract. The Caretaker Convention appears to have been disregarded in September 2015 when the multi-billion dollar GoCo contract was signed during a federal election campaign. The Integrity Regime appears to have been disregarded when the GoCo contract was quietly renewed by AECL in April 2020, during the early days of the pandemic lockdown, despite the conviction in Canada in late 2019 of the Canadian consortium partner SNC-Lavalin on a charge of fraud.

We believe that intervention is required by Cabinet and/or Parliament to restore control of and oversight over Canadian nuclear facilities and radioactive wastes, and to ensure that public funds are spent wisely.

Yours truly,
Gordon Edwards, Ph.D, Canadian Coalition for Nuclear Responsibility

Éric Notebaert, MD, M.Sc., Canadian Association of Physicians for the Environment

Ole Hendrickson, Ph.D, Concerned Citizens of Renfrew County and Area

CC: Karen Hogan, Auditor General of Canada

Greg Fergus, Parliamentary Secretary to the President of the Treasury Board 

Attachment:“The Government of Canada’s Radioactive Wastes:  Costs and Liabilities Growing under Public-Private Partnership”

Le 15 septembre, 2020

L’Hon. Jean-Yves Duclos, Président

L’Hon. Joyce Murray, Vice-Présidente

L’Hon. Bardish Chagger, Membre

L’Hon. Catherine McKenna, Membre

L’Hon. Chrystia Freeland, Membre

L’Hon. Jonathan Wilkinson, Membre

Conseil du Trésor

Cher M. Duclos,

Distingués Membres du Conseil du Trésor,

Nous désirons porter à votre attention des problèmes liés à la manière dont Énergie atomique du Canada Ltée (EACL) gère les $8 milliards de déchets nucléaires et de déclassements qui relèvent du gouvernement fédéral.

Comme on le constate dans le document ci-joint « Les déchets radioactifs du gouvernement du Canada :  La croissance des coûts et obligations en partenariat public-privé », le financement public d’EACL a pratiquement quadruplé depuis 2015-16 pour atteindre $1,3 milliard en 2020-21. Pendant cette période, les obligations d’EACL se sont accrues de $332 millions.

Le précédent Gouvernement Conservateur avait tenté de réduire les coûts et d’accélérer la réduction des obligations nucléaires fédérales en créant un PPP, un partenariat public-privé (« propriété du Gouvernement, géré par un entrepreneur ») entre EACL et un consortium multinational.

Pour les déchets radioactifs, l’entrepreneur de ce PPP met de l’avant des projets inadéquats qui dérogent aux règles internationales et à nos obligations. Embourbées dans la controverse, les évaluations environnementales accumulent des années de retard.

Dans le cadre de ce PPP, le Gouvernement a considérablement réduit sa surveillance, tandis que la gestion des installations nucléaires et des déchets radioactifs de propriété fédérale se voyait en bonne partie transférée à des intérêts américains. Il semble que Richard Sexton, le président d’EACL, soit un citoyen américain et un ex-dirigeant senior de deux entreprises qui avaient originellement obtenu ce contrat de PPP en 2015, au sein de l’Alliance nationale de l’énergie canadienne (ANEC). M. Sexton est aussi responsable de la répartition des revenus au sein de ce consortium. Le principal responsable des contrats d’EACl est aussi un citoyen américain. Le contrat en PPP a récemment été renouvelé à l’improviste, 18 mois avant sa date d’expiration officielle, sans qu’on ne fournisse la moindre explication du renouvellement hâtif.

Plusieurs enjeux d’éthique et d’imputabilité ont surgi de ce contrat en PPP. On semble avoir ignoré la convention de transition quand on a conclu ce contrat en PPP de plusieurs milliards de dollars pendant la campagne électorale fédérale de 2015. On semble aussi avoir ignoré le régime d’intégrité quand EACL a discrètement renouvelé ce contrat en PPP en avril 2020, au début du confinement attribuable à la pandémie, même si le partenaire canadien du consortium, SNC-Lavalin, avait été condamné pour fraude à la fin de 2019.

Nous estimons que le Conseil des ministres et/ou le Parlement devraient rétablir leur contrôle et leur surveillance des installations nucléaires et des déchets radioactifs fédéraux, afin que les fonds publics soient dépensés avec prudence.

Sincèrement vôtres,
Gordon Edwards, Ph.D,Regroupement pour la surveillance du nucléaire

Éric Notebaert, MD, M.Sc.Association canadienne des médecins pour l’environnement
Ole Hendrickson, Ph.D, Concerned Citizens of Renfrew County and Area

Cc. Karen Hogan, Vérificatrice générale du Canada

Greg Fergus, Secrétaire parlementaire du président du Conseil du Trésor 

Document ci-joint: “Les déchets radioactifs du gouvernement du Canada :  La croissance des coûts et obligations en partenariat public-privé” (Anglais seulement)

Letter to Treasury Board from women leaders across Canada re small nuclear reactors

September 21, 2020

The Hon. Jean-Yves Duclos, President

The Hon. Joyce Murray, Vice-Chair

The Hon. Bardish Chagger, Member

The Hon. Catherine McKenna, Member

The Hon. Chrystia Freeland, Member

The Hon. Jonathan Wilkinson, Member

Dear Mr. Duclos and Members of the Treasury Board:

We write to you as women community and Aboriginal leaders in science, medicine, law and environmental protection to request your urgent attention to the need for Canada to uphold its legal obligation, as a party to the Joint Convention on the Safety of Spent Fuel Management and on the Safety of Radioactive Waste Management, to minimize generation of radioactive waste.

Radioactive waste is dangerous, poses risks to all living things and must be kept out of the biosphere for as long as it poses a radioactive hazard (many tens of thousands of years). Article 11 of the Joint Convention states that parties shall “ensure that the generation of radioactive waste is kept to the minimum practicable”. 

Small modular nuclear reactors, currently under consideration for taxpayer-funded development in Canada, would produce long-lived hazardous nuclear waste as part of normal operations. These reactors are proposed for Northern, remote and First Nations communities in some of Canada’s most fragile and globally important ecosystems. UNDRIP principles of free prior, and informed consent with indigenous communities have not been respected. 

Production of plutonium and other fuels for small modular nuclear reactors would create long-lived hazardous nuclear waste. Small modular nuclear reactors would themselves become hazardous, long-lived nuclear waste; too hot to handle after their short lifespan of a few decades, and too costly to transport, they would likely be abandoned in place leaving permanently contaminated, radioactive exclusion zones, a few hectares in size, everywhere they were deployed.

Low-carbon alternatives to nuclear technology for electricity generation are readily available, faster to deploy, much less expensive and do not generate radioactive waste. They also create more jobs. Small nuclear reactors are therefore not a useful or necessary climate change mitigation strategy.Canada can much more easily, cheaply and quickly get to net zero carbon with a combination of energy conservation and renewables. For details please see Environmental Petition 419 to the Auditor General of Canada.

Small nuclear reactor proponents tout the notion that small reactors will use existing nuclear waste for fuel. This is a dangerous fantasy. In reality, “recycling” radioactive waste creates more radioactive waste, passing the buck to future generations. Worse, reactor technologies that use recycled fuel require extraction of plutonium, creating serious national security risks associated with nuclear weapons proliferation. 

We submit that federal support and funding for development of small modular nuclear reactors would constitute an abnegation of Canada’s international commitment to minimize generation of radioactive waste. 

We urge you to bring this matter to the attention of your Cabinet colleagues, and cease all government support and taxpayer funding for small modular nuclear reactors.

Yours sincerely,

Anne Lindsey, MA, O.M., Winnipeg, Manitoba

Brennain Lloyd, North Bay, Ontario

Candyce Paul, English River First Nation, Saskatchewan

Dr. Cathy Vakil, MD, Kingston, Ontario

Dr. Dale Dewar, MD, Wynyard, Saskatchewan

Dr. Dorothy Goldin-Rosenberg, PhD, Toronto, Ontario 

Eva Schacherl, MA, Ottawa, Ontario

Ginette Charbonneau, Physicist, Oka, Quebec

Gretchen Fitzgerald, BSc, Halifax, Nova Scotia

Johanna Echlin, M.Ed., Montreal, Quebec

Dr. Judith Miller, PhD, Ottawa, Ontario

Dr. Kathryn Lindsay, PhD, Renfrew, Ontario

Kerrie Blaise, MSc, JD, North Bay, Ontario

Lynn Jones, MHSc, Ottawa, Ontario 

Dr. Martha Ruben, MD, PhD., Ottawa, Ontario

Pippa Feinstein, JD, LLM, Toronto, Ontario

Dr. Susan O’Donnell, PhD, Fredericton, New Brunswick