Bill C-49

An Act to amend the Canada—Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and to make consequential amendments to other Acts

This enactment amends the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act to, among other things,
(a) change their titles to the Canada–Newfoundland and Labrador Atlantic Accord Implementation and Offshore Renewable Energy Management Act and the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation and Offshore Renewable Energy Management Act , respectively;
(b) change the names of the Canada–Newfoundland and Labrador Offshore Petroleum Board and the Canada-Nova Scotia Offshore Petroleum Board to the Canada–Newfoundland and Labrador Offshore Energy Regulator and the Canada–Nova Scotia Offshore Energy Regulator, respectively (“the Regulators”);
(c) establish the Regulators as the regulating bodies for offshore renewable energy projects;
(d) establish a land tenure regime for the issuance of submerged land licences to carry out offshore renewable energy projects, as well as the revenues regime associated with those licences and projects;
(e) establish a ministerial decision-making process respecting the issuance of submerged land licences and the Regulators’ exercise of certain powers or performance of certain duties;
(f) expand the application of the safety and environmental protection regime and its enforcement powers to include offshore renewable energy projects;
(g) provide that the Governor in Council may make regulations to prohibit the commencement or continuation of petroleum resource or renewable energy activities, or the issuance of interests, in respect of any portion of the offshore area that is located in an area that has been or may be identified as an area for environmental or wildlife conservation or protection;
(h) authorize negotiations for the surrender of an interest, the cancellation of an interest if negotiations fail and the granting of compensation to an interest owner for the surrender or cancellation;
(i) establish the regulatory and liability regime for abandoned facilities relating to petroleum-related works or activities or offshore renewable energy projects;
(j) expand the application of the occupational health and safety regime to offshore renewable energy projects;
(k) allow the federal or provincial governments to unilaterally fund certain expenses incurred by the Regulators as a result of specific requests made by that government;
(l) allow new methods to demonstrate the existence of significant hydrocarbon accumulations in a geological feature and limit the duration of future significant discovery licences to 25 years;
(m) provide that the Governor in Council may make regulations to regulate access to offshore infrastructure, including to enforce tolls and tariffs;
(n) establish a new transboundary hydrocarbon management regime to regulate fields or pools that straddle domestic and international administrative boundaries, enabling the implementation of the Canada-France transboundary fields agreement;
(o) remove references to the former Canadian Environmental Assessment Act, 2012 and, to align with the Impact Assessment Act , clarify the role of the Federal and Provincial Ministers and Regulators with respect to the conduct of impact assessments of designated projects as well as regional and strategic assessments; and
(p) specify that the Crown may rely on the Regulators for the purposes of consulting with the Indigenous peoples of Canada and that the Regulators may accommodate adverse impacts to existing Aboriginal and treaty rights recognized and affirmed by section 35 of the Constitution Act, 1982 .
Finally, it makes consequential and terminological amendments to other Acts.

Canada-Newfoundland and Labrador Atlantic Accord Implementation Act

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Mr. Speaker, I cannot even hear the answer being given right now. This side of the House certainly did afford the other side the opportunity to ask their question. I am really hoping the same can be done for my colleague, who is trying to answer the question.

[The Deputy Speaker, Conservative, Chris d'Entremont]

I will take this opportunity to remind everyone to keep a bit of decorum as we have these debates. Although I enjoy the energy of what is happening today, we should try to keep it down so we can hear the responses to the questions we are asking.

The hon. member for Kings—Hants has the floor.

[Kody Blois, Liberal, Kings—Hants, NS]

Mr. Speaker, I covered the public safety question. I will now cover the question around Sustainable Marine. I agree. In fact, there actually needs to be a fundamental change in the way DFO operates and approves these projects. The member opposite, my neighbour, would know I was against DFO and the way in which the situation was handled on the Avon River and continue to be against that if the government moves in a different direction, so he does not need to lecture me about being an advocate.

The last piece I will say is that he mistakes himself, because we have an opportunity here to make a difference for our province of Nova Scotia. He can talk all he wants about eight years. The legislation is now before us. The industry is ready to move, and his party suggests its members are against it. Will they move with us to make sure there are opportunities in Atlantic Canada? It is a straightforward piece of legislation, and it is actually incredible the Conservatives are giving me an opportunity to highlight the hypocrisy. They talk about technology and not taxes, but they will not support the legislation that drives the technology.

[Denis Trudel, Bloc, Longueuil—Saint-Hubert, QC]

Mr. Speaker, I am a little taken aback. I would have thought that this past summer, with fires all over Quebec, Alberta and the rest of the world, would make my Liberal friends a little less smug about the fight against climate change, but no.

This morning, they are pounding their fists and exhorting everyone to vote in favour of the Liberals' climate change plan.

I just want to tell my colleague that, in 2022, the Liberal government gave the oil industry $51.5 billion. That industry turned a $220-billion profit in 2022. Considering that we need to build 3.5 million housing units in this country, that is utterly obscene.

How about a little humility, please.

[Kody Blois, Liberal, Kings—Hants, NS]

Mr. Speaker, my answer is simple.

The Bloc Québécois should join us in our effort to create the legislation we need to move green energy and the Atlantic offshore wind industry forward. The Bloc Québécois has always talked about the importance of climate change. Now it has an opportunity to join the fight.

My question is simple: Will the Bloc Québécois join us in our effort to move the Canadian wind industry forward, yes or no?

[Jake Stewart, Conservative, Miramichi—Grand Lake, NB]

Mr. Speaker, it is certainly a pleasure to be back in the House of Commons. The last couple of months were tough. I had a few sinus surgeries, missed a bit of time and had some uncomfortable moments, but I am really happy. Truly, when one does not have good health, it really gives one an understanding of how precious it truly is.

Today I am really excited to speak to this bill for a number of reasons.

Before I get into the meat and potatoes of it all, there are a few comments I heard. I am really encouraged by the fact that the Liberal member from Nova Scotia acknowledges that the Department of Fisheries and Oceans is a complete failure on just about every front.

In Miramichi—Grand Lake, it failed the Atlantic salmon: the fish, the species and the community itself, all of the people who benefit from it, on a vast, almost unprecedented, scale. It actually does not even deserve the right to govern it anymore. As a federal MP, I am left believing that, with regard to the Atlantic salmon, though it is a federal jurisdiction, the DFO has lost the right to govern it. It actually does not care. The people where I live know this and it is heart-wrenching for all of us. My dad was an outfitter. I grew up a salmon fisherman and a guide, so I have seen a very serious decline in that species.

I will comment on the Liberal member's question of Progressive Conservative support in the Conservative Party of Canada. That was one of my favourite things he said. I am going to quote what the Right Hon. Brian Mulroney's son tweeted the other day, after the Quebec City convention. This is what the Right Hon. Brian Mulroney said to his son about our leader's speech at the convention: “Mark, I attended my first convention in 1956 for Mr. Diefenbaker. I was 17 years old. I've seen a lot of convention speeches since then. [The leader of the Conservative Party's] speech was probably the best convention speech I have ever witnessed. [The leader of the Conservative Party's] command of such a large amount of information in both official languages for an hour and a half was extremely impressive. The only other speech that may have challenged his own was that of his wife Ana's.” That was the Right Hon. Brian Mulroney.

Just as an honourable mention, the Hon. Peter MacKay was speaking at the convention and was quite proud to do so. I think that the Liberals can take their worst fears and realize that they are true. Maybe they should plan harder, go door to door and start working harder. I can understand that.

I am now going to get into Bill C-49. In my speech today, I am going to cover three things. Number one is the positive impact of the Atlantic accords in both Nova Scotia and Newfoundland and Labrador. Number two is the potential upside of Bill C-49's proposed changes to energy regulation for the Atlantic offshore. Number three will be the reasons why I cannot support Bill C-49 as currently presented.

Let us start with the 1985 Canada-Newfoundland Atlantic accord. The original Atlantic accord was an agreement between the province of Newfoundland and Labrador and Ottawa concerning the management of the oil and gas reserves off the coast of Newfoundland and Labrador. It determined how two governments shared revenues and how that income affected the equalization payments received by the province. It also established the Canada-Newfoundland and Labrador Offshore Petroleum Board. The Atlantic accord was a watershed in the province's economic development. It ended years of negotiations and allowed Hibernia and subsequent offshore oil fields, including Hebron, Terra Nova and White Rose, to enter into production.

Mobil Oil carried out the first seismic surveys on the Grand Banks in the 1960s, and then exploratory drilling continued during the 1970s. Chevron Standard Limited discovered the first commercial oilfield, Hibernia, in 1979, one year after I was born, but development could not proceed until the provincial and federal governments resolved the ownership and management disputes, which continued from 1967 through 1985.

The Atlantic accord was widely hailed as a success and a turning point for the provincial economy. At the signing in 1985, premier Brian Peckford predicted that it would allow “this province to catch up socially and economically to the rest of Canada”, while Right Hon. Brian Mulroney famously stated, “I am not afraid to inflict prosperity on Newfoundland and Labrador.”

We can see very early on in my speech and the history lesson that Conservatives clearly had a vast, productive and successful outlook for Atlantic Canada. I just went back over a number of decades. This is history, and that is why it is important.

Twenty-six years ago, Hibernia, Newfoundland and Labrador's landmark oil production platform, became the first to produce oil in the province. Newfoundland and Labrador’s offshore oil and gas have contributed more than $25 billion in royalties and directly employed over 6,000 people, as well as thousands more in supporting industries. That is $25 billion in royalties and over 6,000 people employed. The Hibernia project came to life thanks to former prime minister the Right Hon. Brian Mulroney’s support at a time when Newfoundland and Labrador was facing economic and cultural challenges of the cod moratorium. Hibernia created thousands of jobs and new government revenue at a time when it was truly needed.

Hibernia was celebrated as a new dawn for Newfoundland and Labrador’s economy in 1997 and has continually exceeded expectations over the past quarter century. Production was expected to last 18 to 20 years and produce 520 million barrels of oil. In fact, Hibernia has produced more than 1.2 billion barrels of oil and has paid almost $20 billion under fiscal agreements to the provincial and federal governments since 1997. Today, about 95% of those working on the Hibernia project are Newfoundlanders and Labradorians. The skills, technical ingenuity and work ethic of the team have been the backbone of Hibernia’s success for 26 years and will continue into the future. That future is exciting, with the potential for Hibernia to continue production for another 20 years.

In Nova Scotia, one of Premier John Hamm’s most notable achievements was negotiating with the federal government to implement the Atlantic accord, a multi-decade regional development program that had been approved in principle during the late 1980s to prevent provincial government offshore oil and gas royalties from being included in calculations for the federal equalization program. This resulted in an $830-million payment from the federal government to the Nova Scotia government in 2005, which Premier Hamm applied against the principal on the province's long-term debt, thereby reducing debt servicing payments by more than $50 million annually. That is clearly another great Conservative decision made over the course of time.

During Premier Hamm’s reign, the Sable Offshore Energy Project was Canada’s first natural gas project. The Sable project provided a new source of clean energy to Nova Scotia and New Brunswick, and a new supply to the northeastern United States through the Maritimes & Northeast Pipeline. Saying the word “pipeline” in the chamber gives me pleasure, but not what really what it should have given me. New Brunswickers wanted to bring a pipeline from Alberta to Saint John and Montreal. I remember that, at the time, the mayor of Montreal was against it and the Province of Quebec was a little worked up about it. Now, however, Quebeckers are against the carbon tax, and some of the Quebec members of the House who are not in the Conservative Party are running for dear life because they supported the carbon tax and put that on the backs of Quebeckers. They are going to pay for it.

Beginning production in 1999, Sable was a catalyst for $3.7 billion in direct payments to Nova Scotia’s government. Made up of royalties, Crown share and exploration payments, this is money that helped build better schools, hospitals and roads over 20 years. Since the mid 1980s, Canada, Nova Scotia and Newfoundland and Labrador have jointly managed the development of offshore petroleum resources under the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and the Canada-Newfoundland and Labrador Atlantic Accord Implementation Act, also known as the Atlantic accord acts, which generated more than $30 billion in government revenues off the east coast.

Here are a few points that are worth making about the concept behind Bill C-49. The idea of a single regulator for offshore energy projects makes sense, whether they are oil and gas or renewables, such as wind. Joint management between the federal government and Atlantic provinces is good and should be maintained, as that was the promise of the original accords, which we have just learned were successful.

Regarding offshore wind, siting is important so that other existing users are not damaged by the new activity, whether that be fishers or transportation routes. It is extremely important that the wind industry works with fishers to minimize direct impacts and ensure collaboration and compensation if there is to be a direct impact. The end of project remediation and bonding must be sufficient to remove the infrastructure when out of use.

The current process will take far too long to identify potential areas suitable for activity, and it is likely that Canada will miss the opportunity to benefit from offshore wind. Generally, floating wind is less impactful than fixed and provides more flexibility for siting in deeper water, which tends to be away from land and inshore fishing activity. By the time the current process concludes, at the pace they are going, the opportunity will likely have passed Canada anyway. We saw that with the Energy East pipeline. That was the Liberal government's problem across the floor. It caused that. I saw it in my own province of New Brunswick. We were decades behind in natural gas production, and we lost the ability to move forward with moratoriums. It really set New Brunswickers back. That was a project that should have been a success.

For Nova Scotia, offshore wind is an area of promise because land spaces are limited and tidal is still speculative. Nova Scotia does not have hydro opportunities, yet the federal mandate to be off coal is real for 2030.

One big red flag for me is that Bill C-49 allows the federal government to rely on the regulators for indigenous consultation. This could result in court challenges and detrimental judicial decisions for both offshore petroleum and renewable projects if the federal government relies solely on the regulators and does not sufficiently execute the Crown’s duty to consult because this bill also makes government ministers the ultimate decision-makers.

I know from my time as the minister of aboriginal affairs in New Brunswick that our first nations want to be partners in future energy projects and not to be just considered as stakeholders. They want to be partners. I know from all of my experience at that time that negotiation is always a better path than litigation. We have seen situations in the past where governments get really excited about projects. Governments get excited about potential economic projects and large energy projects. What happens is that they will bring in the chiefs of first nations at the ninth hour, when they have already upset them as they have missed the process. It is interesting that this legislation is coming from the Liberal government right now because it has clearly failed first nations on every single front.

I was reading something yesterday that struck me about all the work that the Liberals have done over the past 20 years to basically pretend to be best friends with first nations' people. We have situations in this country where people of indigenous descent in our country do not have water. They have water they cannot drink, and that is a basic necessity of our country. It is a basic necessity for almost every country in the world, and it should be paramount. The Liberals have failed to provide that. I cannot believe they would put a bill forward in the House that would literally disrupt the duty to consult. We have seen how successful those projects have been. Times have changed. We have to work with everyone involved. We clearly have to work with treaty people as a part of being in Canada.

The Liberals have put this forward. It is really rich of them to do that because there are a lot of indigenous people still waiting for clean water. They should get on that. They do not have a leg to stand on at this point. It is totally ridiculous that they would ever claim friendship with any indigenous person in this country. I can tell colleagues right now that that is a box they had better start to check off, or none of this will be successful.

There has been more red tape and delays. This bill would add delays in the approval process because it would triple the timeline from the current framework and would politicize the decision-making process, giving final authority to the federal and provincial ministers.

Canada’s red tape regime already hinders traditional and alternative energy development. This bill would add broad, unilateral, discretionary cabinet powers for arbitrary decision-making. It would actually increase timelines and add uncertainty around requirements, which would drive investment away. We have seen this record play over and over in our country.

There was a project in New Brunswick called Maritime Iron. Everybody got all worked up and said it was not economical. Somebody in Venezuela thought it was economical. I remember other projects where it was said that they would not be economical and might emit carbon. Can members guess what? China had the same project with the same company. I have seen North African companies take our projects too.

It pains me to say that New Brunswick has lost so much because of bureaucracy, whether provincial or federal; weak leadership; the failure to consult with first nations; and an overall lack of understanding of the projects in front of us, which could have paved the way for New Brunswick.

We have Sisson mine, a natural gas extraction in New Brunswick. We have moratoriums on uranium. We have moratoriums on natural gas, even though the lamps in the entire city of Moncton were lit by natural gas in the late 1800s. There are areas in New Brunswick where we have had it forever. That is what we are built on.

The Liberals really need to get their act together on this because the Atlantic accord was a big-time positive in Atlantic Canada. We need them to stop driving investment away, and impeding growth and progress in Canada.

This bill could end offshore petroleum drilling in the Atlantic provinces. Sections 28 and 137 would give cabinet the ability to end offshore drilling or renewable energy projects with the authorization of the provincial minister if the area may be identified as a marine protected area.

Any activity may be suspended in the marine protected area or in an area that may be identified in the opinion of cabinet as a marine protected area, which would create significant uncertainty. There would be no formal indigenous consultation required in the cancellation of new or currently operating projects.

The Liberals' Bill C-55 allowed the fisheries minister to select marine protected areas by order in council, which can prohibit development and activity. This bill would implement this measure, which the Conservative Party opposed because marine protected areas should really be called “prohibited development areas”. That would be common sense, but what we are getting over here is nonsense, and that is why they have it that way.

In closing, let me reiterate that Conservatives support the development of offshore wind and renewables in Atlantic Canada, but this bill would impose uncertainty and extends timelines, which could hinder the development of the sector while creating opportunities for politically motived, anti-energy decisions and delays of offshore petroleum development.

Bill C-49 should be amended to require the development of a framework for renewable energy projects that would require clear plans for the project’s impact to fish, birds and the environment. It should also require consultation with impacted indigenous communities and private sector proponents before the establishment of a marine protected area and/or the cancellation of any operations in progress.

[The Deputy Speaker, Conservative, Chris d'Entremont]

Before we go to questions and comments, I would like to commend the member for talking about such a great cabinet from way back in 2003-04, when a young Chris d'Entremont was a member of cabinet.

Continuing with questions and comments, the hon. member for Kingston and the Islands has the floor.

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Mr. Speaker, I really enjoyed the history on previous Conservative governments. I think we would be hard pressed to find any member in the House who would not agree that Conservative governments of the past, the Progressive Conservatives, were actually the champions of the environment. I have even heard the member for Saanich—Gulf Islands say that from time to time.

The member unfortunately cannot see the link between the Conservatives of the past and the Conservatives of today because they are quite different. He talked at length about Brian Mulroney. I have a Brian Mulroney story myself. Not that long ago in the House, I spoke at great length about the great work that Brian Mulroney and Progressive Conservatives did, and then contrasted them to the Conservatives of today.

Much to my surprise, a portrait of Brian Mulroney arrived at my constituency office the next day, which was personally signed. It said, “Mark, keep making those speeches”, with two exclamation points, and it was signed by Brian Mulroney. I think it is very rich to try to suggest that the new, reformed party of today somehow has a link to the Brian Mulroney Conservatives of the past.

The premiers of both Nova Scotia and Newfoundland and Labrador support this piece of legislation. The member said he supports it in principle. Why would he not at least help get it to committee so a decision could then be made to try to form the bill into what he wants to see, as he does support it in principle?

[Jake Stewart, Conservative, Miramichi—Grand Lake, NB]

Mr. Speaker, going to committee may be a potential down the road, but as elected officials in the House, we have to do our due diligence.

We have watched this government impede growth in several sectors. We have seen several bills it has put forward that have really limited progress in the energy sector. We have watched this across all aspects of the energy sector. What I would say here today is that Conservatives are doing their due diligence, and that is the best thing we can do in the House.

[Denis Trudel, Bloc, Longueuil—Saint-Hubert, QC]

Mr. Speaker, this summer, I had the honour of being showcased in a Conservative ad campaign. I am happy to know that I was on TV across Canada. My agent will send them the bill. Given that I am a member of the Union des artistes, a bill will definitely be coming.

The problem is that what was stated in the ad was completely false. It said that the Bloc Québécois was in favour of the carbon tax. Obviously, we are for putting a price on pollution. I think that we all agree with that on this side of the House. That being said, the carbon tax does not apply in Quebec.

Has anyone told the Conservatives? The Premier of Quebec told them. The leader of the Bloc Québécois told them. Every member of the Bloc Québécois has been telling them. It does not apply. There has been a carbon market in Quebec for 10 years, and the tax does not apply.

The Conservatives have been spreading lies across the country. How does that make them feel?

[Jake Stewart, Conservative, Miramichi—Grand Lake, NB]

Mr. Speaker, it would be the Liberal fuel regulations. There is the carbon tax. There are the clean fuel standards. There are lots of different bills. It is the Liberal's fuel regulation that is basically hurting Quebeckers now. I heard it when I was in Quebec City. I had people telling me that they were against it.

The member may think it is interesting, but I think that the Bloc Party has been in cahoots with the Liberal Party enough that there is almost as though there are two coalitions in the House. If the Conservative Party has to take on every party in the House on behalf of Canadians, we will do it.

[Marilyn Gladu, Conservative, Sarnia—Lambton, ON]

Mr. Speaker, there was a project from Sustainable Marine Energy. It was the first North American tidal power project, and it was cancelled by the Liberals through stalling and lots of regulatory red tape. Is the member concerned that the bill before us would exacerbate that problem by institutionalizing red tape and bureaucracy, which would prevent projects from being built?

[Jake Stewart, Conservative, Miramichi—Grand Lake, NB]

Mr. Speaker, we have grave concerns on this side of the House that the Liberal government either does not know anything about economics whatsoever or impedes growth and progress across all sectors through every decision it makes. It is probably both.

We have grave concerns because the project the member mentioned did not go forward. I told members about energy east pipeline as another project. There is a lot of evidence over the past seven or eight years that the federal Liberal government has clearly driven a spike into so many economic opportunities in this country. We now look like a laughingstock around the world because all of the projects we have said no to are happening in other jurisdictions, and they are emitting twice the carbon we are with no regulations.

[Lori Idlout, NDP, Nunavut, NU]

Uqaqtittiji, this summer we saw the ravages of climate change. We are in a climate crisis, not just in Canada but all over the world. I wonder if the member agrees that Bill C-49 needs to pass because it would create more opportunities for the east coast to use renewable energy, and that we need to act now.

[Jake Stewart, Conservative, Miramichi—Grand Lake, NB]

Mr. Speaker, in my speech I laid out the reasons why we think it should not pass at this point. It needs amendments. However, if this truly is an urgent matter for the federal Liberal government, then why did it take eight years? Why are we watching a recycled video of a housing announcement that happened six years ago? There is no urgency on that side of the floor, and Canadians know it.

People cannot afford their mortgages now. People cannot afford gas. They do not need an electric car where I live because there is nowhere to plug them in. They take 18 months to show up, and then there is nowhere to plug them in when we get them. I could go on and on, but no understanding of rural Canada exists over there, none at all. Therefore, no, the bill should not go forward right now. It needs amendments because the Liberals are impeding progress, and we cannot allow them to keep doing it.