The new Emergency and Disaster Management Act authorizes the Province to declare when an event is eligible for financial assistance, with details to be outlined through a regulation. As part of work to develop a modernized financial assistance regulation, the Ministry of Emergency Management and Climate Readiness has released a discussion paper and series of questions for stakeholders to consider. Feedback is due by December 31, 2023.
BC’s current disaster financial assistance framework provides funding for unexpected and uninsurable losses caused by an eligible emergency or disaster, as determined by the Province. In making this determination, the Province will consider the type of emergency or disaster, the impacts and damage, whether there are eligible and uninsurable losses, and the number of affected individuals and businesses. If the Province declares an event to be eligible, applicants for financial assistance may include individuals, local governments, First Nations, small businesses, farm operations, and charitable organizations. Only uninsurable losses are eligible.
In 2022, the Province made changes to this framework in response to the 2021 atmospheric river event. Notably, the provincial contribution was increased to 90-95% of eligible costs. Prior to these changes, local governments were responsible for 20% of eligible costs.
Amendments to the current framework will help create alignment with modernized legislation. This includes considering the increased frequency and severity of climate-related emergencies and disasters, and associated impacts on applications for financial assistance; as well as the Sendai Framework for Disaster Risk Reduction’s commitment to building back better.
The Province will be taking a phased approach to updating its disaster financial regulations, with the first phase of this work to be completed in 2024. In acknowledgement of ongoing federal initiatives (e.g., updates to the federal Disaster Financial Assistance Arrangements program, and development of a flood insurance program) and the need for additional time to conduct analysis, the Province intends to complete a second and final phase by 2025.
There are six broad policy areas under consideration in the discussion paper:
- Event eligibility – Examining whether specific criteria should be added to the new regulation for the purpose of determining how or when an event is declared eligible for financial assistance. Currently, event eligibility is determined through provincial policy.
- Availability of Insurance – One of the key principles of the current framework is that insurance should be purchased if it is “reasonably and readily available.” Claims for uninsured losses can be denied by the Province if it is felt that insurance was available. The discussion paper contemplates the overall affordability and accessibility of insurance, and whether more should be done to encourage risk reduction and long-term resiliency.
- Program Coverage – Seeking feedback on the current limits related to who is eligible, the costs that can be reimbursed, and total funding available for disaster financial assistance.
- Supporting Indigenous Applicants – New regulations will be co-developed with Indigenous peoples, with a focus on supporting communities on reserve lands or treaty lands, as well as those living throughout BC. This includes considering existing financial arrangements with the federal government.
- Reducing Future Disaster Risk – Exploring funding changes that would enable the applicant to take mitigation measures that reduce future disaster risk. Current regulations limit building back better, and in some cases require infrastructure be rebuilt only to pre-disaster standards.
- Maximizing Opportunities and Flexibility – Examining ways to ensure that all available funding opportunities, including those beyond the provincial disaster financial assistance framework, can be maximized. There is also a desire to align the provincial framework with federal programs, to ensure funding for risk reduction and other priorities can be maximized.
As part of examining these six areas, the Province has included a number of questions related to each issue. Local governments wishing to provide feedback, including in response to the Province’s questions, are asked to do so via email by December 31, 2023.
The Province has indicated that if there are other engagement opportunities related to the development of its emergency management regulations (e.g. virtual workshops), they will be posted on the provincial website.