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

[Jaime Battiste, Liberal, Parliamentary Secretary to the Minister of Crown-Indigenous Relations]

Mr. Speaker, as someone from Nova Scotia, who represents indigenous communities, I have heard, loud and clear, not only from our provincial leaders but also indigenous leaders that this is an important thing for us to make that transition to clean energy. We have heard from Membertou Chief Terry Paul, who has talked to us about the importance of EverWind and hydrogen moving forward with all of the things that we need to make a better future for our future generations.

I am kind of astonished to hear that the member would stand up and say that there is not anything that looks at indigenous consultation, when economic reconciliation is indeed part of this legislation. Therefore, I am wondering if the member has read the legislation and, if so, can he tell us just one provision that he is against?

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

Mr. Speaker, like I said earlier, it is interesting because what I laid out is the fact that the bill does not mention the duty to consult and it does not mention the Crown's responsibility. It is silent on that part of the legislation. As a first nations individual, the member should know that. That should mean as much to him as to anybody else.

The duty to consult is on the Crown. You have bypassed it. You have not given water to the people who needed it and asked for it eight years ago. You have failed indigenous people on every front in this country. You have failed them. You completely failed them.

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

Order. Members cannot speak directly to a member. They are speaking to the Chair. They cannot use the word “you” when they are speaking to another member.

We will move on to the next question. The hon. member for Saanich—Gulf Islands.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, for my colleague from Miramichi—Grand Lake, I had not heard over the course of the summer that he faced health challenges. I had a stroke in June and this is my first opportunity to speak of it in this place since we resumed. I want to thank, from the bottom of my heart, all the members from different parties who sent me notes of encouragement. As they can see, I am recovering well, but I am still not allowed to fly to Ottawa, and not allowed to fly anywhere, so I am glad I can participate virtually. For my friend from Miramichi—Grand Lake, it is good to see him back and I hope he has gotten through his health challenges.

I just do want to correct the record. The member spoke of marine protected areas as if they stopped development. From the point of view of the Green Party, we would love it if that were the case. The Minister of Natural Resources has said recently that even the interim protected areas offshore Newfoundland would be removed if the oil industry that is currently exploring there were to find oil. The government would just get rid of the protected area so that it could exploit oil there. Therefore, I will agree with members of the Conservative Party to this extent, that the Liberal ministers speak out of both sides of their mouth.

I support this bill. Let us hope we move wind energy and offshore wind energy and try to catch up with the rest of the world. We are a long way from being in the lead on this.

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

Mr. Speaker, I appreciate the comments about my health and I am glad to hear that the member is feeling better too.

Clearly, Conservative Party opinion and Green Party opinion on some of these files greatly differ on a good day, and some of the member's more concrete questions would really have to come to the Liberal ministers who drafted this legislation and have them explain it.

For me, I think we have lost so much to other jurisdictions by trying to prove to everybody that we are saving the world here and I do not think our emissions are even high in Canada. We have really stalled productivity all over the place because of the Liberal government's decision-making and that is where our party has to do due diligence in the House, to make sure that we have opportunity for Canadians.

[Darrell Samson, Liberal, Parliamentary Secretary to the Minister of Rural Economic Development and Minister responsible for the Atlantic Canada Opportunities Agency]

Mr. Speaker, I am extremely pleased to rise today and speak on behalf of my fellow residents of Sackville—Preston—Chezzetcook.

I have to say that in listening to the speech from the Conservatives, I am very surprised but not shocked. I will share what they did back in 2007 with the Atlantic accord in Nova Scotia. Bill C-49 is extremely important to make adjustments and modifications so that we could be moving forward very quickly on the potential of economic growth, as well as reducing our emissions.

I want to share a story that is extremely important. My colleague, who was here in the House with us, Bill Casey was elected in the Conservative Party in 1988. In 2007, believe it or not, he was thrown out of the Conservative Party of Canada under the Harper government. Why was he booted out, ejected from the party? I will tell the House what my colleague told me. I will share his story. I am sure he could do a better job, but I am going to share it.

He stood up and defended the Atlantic accord. The Conservative government, under Harper, in 2007, decided in its budget that it was going to tweak a very important part, all by itself. There was no consultation with the Province of Nova Scotia. It was going to tweak it so that some of the revenues coming in would be lost. It would make a change and Nova Scotia would lose some money because of the equalization payments.

Mr. Speaker, I will be sharing my time with the member for Halifax West.

Mr. Casey was telling the Conservative Party to not make that tweak because Nova Scotia could lose up to $1 billion of revenue, if that change was made in the budget. The then premier of Nova Scotia was Rodney MacDonald. The ministers were all trying to convince him that it was okay, that it would be fixed later. Absolutely not.

Mr. Casey was a man of principle. Mr. Casey was in the Conservative Party. He was ejected in 2007. He came back, because the people had lots of trust in him, as an independent and won. Then he came back as a Liberal and won. He was a very good parliamentarian, and he stood for Nova Scotia. He stood for Canadians. I want to thank him for that.

I have to say, when I first got elected, I was impressed with how he got the work done. The first year, I watched him as he moved from desk to desk, talking to ministers about how they could help his region.

It is obvious today that the Conservatives are against an accord that they tried to take pieces out of, which would have affected Nova Scotia. It is very sad.

This has been jointly managed between Nova Scotia and Newfoundland for many years. This is an industry that is now ready to boom. There is actually $1 trillion on the table of investments from now until 2040. In Nova Scotia, New Brunswick, Newfoundland, and across Canada, we need to take advantage of this. The time is right.

How are we going to do that? Nova Scotia would help us to lower our emissions and bring us to zero by 2050. Nova Scotia, and Newfoundland and Labrador have the fastest winds in the world. Why is this so important for Nova Scotia and Newfoundland? It is exactly because it puts Canada in the great position of feeding not only Canada but the world in offshore renewal, which is crucial.

Nova Scotia announced last year that it had the intention to issue targets of five gigawatts on seabed licences by 2030. They want to get moving quickly, as well. This would help them to decarbonize the grid, which is the goal of the province.

Our government is very committed to moving forward on this project. If the Conservatives could come on board, it would be very helpful. They keep talking about Atlantic Canada, and here is the chance to help Atlantic Canadians. However, Conservatives are refusing to be part of the solution to help economic development in Atlantic Canada. That is what they are doing today.

Our government is committed to expanding the mandate and to include offshore wind as a key ingredient in the accord.

We will also ensure the highest standards of worker safety and environmental protection.

We have to move now. Can members believe that as I speak today there is not one commissioned wind project offshore in the country right across Canada? There is none. Of course, it is important that we move forward and fill in that gap, and we are going to do that with the amendments we are bringing forward. We are not the only ones. The U.K. and the United States are all expanding their mandates to pick up offshore wind, which is crucial to moving forward.

Last August, I was in Halifax to witness an announcement for the first-ever wind project in Canada called the Nova East Wind project. This is a joint venture between two companies, DP Energy and SBM Offshore, which are global leaders in the industry. They are now putting the project together and will help us establish the first-ever offshore wind farm project in Canada, which will take place in Nova Scotia near Goldboro.

There are other steps we have taken to move the process forward to ensure that the ingredients are in place so that these types of projects can continue to prosper. The government has launched its regional offshore assessments in Nova Scotia and New Brunswick, which will provide the information and analysis for future offshore projects. It will inform and improve impact assessments. It will engage indigenous people in various communities across Nova Scotia, Newfoundland and Labrador, and the like, and will identify optimal areas for future development.

We need to be in support of this. If the Conservative members want to support Atlantic Canada, they need to change their vote now. It is very important.

In our 2023 budget, our government has indicated new and improved investments and major tax credits for those types of investments and enhancing smart renewables and electrification pathway programs. These are investments that would allow us to continue to prosper quickly and move the agenda forward in this area.

The amendments are not difficult. They would modernize and expand the mandate quickly, like other countries are doing, so we can get it done; improve alignment with the Impact Assessment Act, which is very important; and establish new tools to support government marine conservation agencies. That is what we are talking about today to move the dial quickly so that Canada and Nova Scotia can take their place.

What are we going to do? It is simple. This Parliament needs to approve and pass Bill C-49 so it can get royal assent. What will happen next? The provinces of Nova Scotia and Newfoundland and Labrador will mirror the same amendments so they can move this project forward. Then we will see prosperity and the important role we play in the world with respect to climate change will also be enhanced. Nova Scotia will launch a call for bids by 2025. We will be there by 2030 for sure. That is how it works, in partnership between the provincial and federal governments.

I think of Mr. Casey, who was told the day before the vote that if he voted against the budget he would not be thrown out. If members want they can google the article where he spoke about his 30 years in Parliament. He said that one of the worst experiences he had was when right after he voted against his government with respect to supporting Atlantic Canadians and Nova Scotia he was told to pack his bags because he was out of there. That is what happened.

We will stand with Atlantic Canadians today, tomorrow and every day.

[Brad Vis, Conservative, Mission—Matsqui—Fraser Canyon, BC]

Mr. Speaker, I appreciate the passion from the member for Sackville—Preston—Chezzetcook. However, I do have a real question related to the bill despite all the rhetoric we heard about the former member of Parliament. It is related to the new licensing regime for exploration, which is capped at 25 years.

Part of the bill talks a lot about empowering indigenous Canadians or using the consultative processes with regulators in conjunction with indigenous Canadians to respect their inherent rights. What the bill does not explicitly outline is if an indigenous resource company has a licence will the government take it away after 25 years?

[Darrell Samson, Liberal, Sackville—Preston—Chezzetcook, NS]

Mr. Speaker, let us talk about indigenous people. As my colleague just said a little while ago, indigenous people have been consulted. They will be consulted as we move forward. The chief spoke with the Atlantic caucus a couple of weeks ago and it is 100% in favour of this.

The licences going to 25 years is good. It was lifetime before and if nobody moved on it, then there was no progress. This is important to ensure that we move forward. Nova Scotia and Newfoundland and Labrador are excited, are in favour and are asking the Conservative Party of Canada to vote with us to move and improve the economic situation in Atlantic Canada today, not tomorrow.

[Sylvie Bérubé, Bloc, Abitibi—Baie-James—Nunavik—Eeyou, QC]

Mr. Speaker, I thank my colleague for the passion and exuberance he displayed during his speech. I agree with him completely. The climate events we are experiencing, such as flooding, forest fires and various changes, are significant.

What exactly are oil and gas regulations?

Can my colleague clarify what his government plans to do about oil and gas and the environment?

[Darrell Samson, Liberal, Sackville—Preston—Chezzetcook, NS]

Madam Speaker, I thank my colleague for her very important question.

As she knows, the environment is very important to us, as it is to her party. In fact, all of the parties, except the Conservative Party, understand the need to advance climate action.

I have been here since 2015. We said that the environment and the economy go hand in hand, and that is exactly what we are doing here. This bill will enable us to meet our environmental responsibilities while growing the economy, creating wealth and showing global leadership. This is where Canada stands. We are in the perfect position, and we will get where we are headed with or without them.

We are ready to go.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Mr. Speaker, the problem is that we have heard a lot of talk and a lot of hot air from the Liberals on how committed they are, but the Americans have moved dramatically ahead with the IRA, under Biden. Over $110 billion are moving projects forward right now. There are 27 offshore wind operations off the Atlantic that will be in operation by 2025. One off Rhode Island will give energy to 250,000 homes and one off Martha's Vineyard will given energy to 400,000 homes, yet we still have not received the promised tax credits needed to compete. They still have not been finalized. We are still dealing with the regulatory framework.

Why has the United States moved so much further ahead on this, taken so much more opportunity? Why are we still standing in Parliament talking about what could be done when we see what is being done in the United States?

[Darrell Samson, Liberal, Sackville—Preston—Chezzetcook, NS]

Mr. Speaker, the simple answer is that Biden does not have to deal with the Conservative Party across the aisle. We do. That is one part of it. The second thing is that all the countries like the United States and the United Kingdom are expanding their mandates to increase the investments in that area. There are a trillion dollars on the table of investment by 2040 and Canada is well placed to be the leader in the world. Let us come together for Canada.

[Lena Metlege Diab, Liberal, Halifax West, NS]

Mr. Speaker, it is a privilege to rise in the House to say a few words on behalf of the people in my riding, Halifax West.

Bill C-49 would modernizes the mandates of the offshore boards, including Nova Scotia's, to unlock the full potential of offshore renewable energy.

Just two years ago, the Nova Scotia government announced its intention to stop using coal to generate electricity by the year 2030, shortening its deadline by a decade. It also set an ambitious target of having 80% of its electricity sourced from renewable energy in the same timeframe. It recently amended Nova Scotia's electricity act so that the province could issue requests for proposals and contracts for things like large-scale batteries and renewable energy storage solutions.

Offshore wind and hydrogen have been identified as a priority for Nova Scotia. The province's government has indicated to the Minister of Energy and Natural Resources that it wants Bill C-49 passed without delay.

The province has already officially said that it wants to launch a competition in 2025 for offshore land leases, with the intent of getting enough turbines in place to produce five gigawatts of power. That is enough energy for roughly 1.5 million homes.

The provinces joined the Regional Energy and Resource Tables, which will help them identify funding and financing opportunities in low-carbon energy sectors and optimize their policies and regulatory approaches.

With a greener future, less severe weather and job creation as their north star, Nova Scotians have already begun unlocking the economic opportunities that come with expanding Canada's renewable energy sector.

That is why I support making amendments to the Nova Scotia and Newfoundland and Labrador accord, so we can facilitate the launch of wind energy projects off our shores, a whole new renewable energy industry for Canada.

I am going to focus on why these amendments make so much sense for the province of Nova Scotia. As a former minister in Nova Scotia, I know how important it is for our levels of government to work together to achieve great things, such as capitalizing on Nova Scotia's incredible potential.

In Nova Scotia, we have some of the best and most consistent wind speeds in the world that provide world-class conditions for offshore wind projects. Of course, Nova Scotians are already very familiar with technology used to harness wind power.

Almost 15% of our province's power comes from our 300-plus wind turbines, making Atlantic Canada a provincial leader in wind power generation. It is truly inspiring.

The initial work is already happening. This March, Nova Scotia's provincial government teamed up with the federal government to launch a regional assessment of offshore wind development off the coast of Nova Scotia. The assessment seeks input from indigenous groups and a range of stakeholders. Independent committee members have a year and a half to report back to governments on their work, which will include analyzing future development opportunities and the potential socio-economic, health and environmental impacts of offshore wind development.

The proposed amendments to the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act are about ensuring that future offshore wind projects are subject to the highest possible environmental and safety standards, under the guidance of an independent expert regulator.

The act was put in place in the 1980s and provided a solid base for today's offshore regime. The act set up the Canada-Nova Scotia Offshore Petroleum Board and it made Nova Scotia an equal partner with Canada, allowing it to jointly govern offshore oil and gas-related activity while sending proceeds back to the province.

Since the act was passed in the 1980s, we took the opportunity to make some much-needed changes to ensure that we are keeping up with modern technology and international best practices.

For example, we are updating the offshore petroleum board's land tenure regime. We are limiting the term of a significant discovery license to 25 years. This will ensure that these licences cannot be held forever, which is currently the case.

To make the regulation of future offshore wind projects as efficient as possible, we are proposing that the Canada-Nova Scotia Offshore Petroleum Board's responsibilities be broadened to include renewable energy, such as offshore wind.

It makes sense that a board that is already so familiar with the offshore, its legislation and its management be given this job. It gives these projects more stability and makes them more desirable to the companies that are considering investing in offshore wind and other renewable energy sources.

The board understands the challenges of operating in a difficult offshore environment, and it has decades of experience in safety and environmental standards, oversight and review procedures.

The renamed Canada-Nova Scotia offshore energy regulator will undergo a significant transition as its duties expand. It will regulate the entire life cycle of offshore wind and other renewable energy projects from site assessment to decommissioning.

The board already ensures that offshore projects are operating safely and protecting the environment. Specifically, the boards are in charge of land tenure, including licensing, providing offshore authorization and approval, monitoring compliance with the accord and carrying out enforcement activities.

With these amendments in place, the board will administer the governance framework jointly created by both federal and provincial governments and ensure the best practices in land rights management are being employed, specifically in the areas of how the land will be used, project bidding procedures, determining how to evaluate bids and granting licences for commercial projects.

A regional assessment of the suitability of the offshore wind around Newfoundland and Labrador and Nova Scotia has officially begun. These regional assessments are getting input from indigenous people, the fishing industry, experts on environmental issues and others. They will also inform the project-specific assessments carried out by the Impact Assessment Agency of Canada.

It is clear that developers are interested in making offshore wind a reality. Some have expressed interest in developing offshore wind projects. Others want to get in on related facilities like on-land turbine staging sites and plants for producing hydrogen and ammonia.

For example, the enterprise Brezo Energy is developing a technology for a floating offshore wind project, and it says Nova Scotia is a perfect fit for them.

Another company called Novaporte has promised that shovels will be in the ground this year for an offshore wind marshalling yard in Sydney, where turbines will be stored and assembled.

Nova Scotia has already approved two large-scale green hydrogen electrolysis and ammonia production plants along the Strait of Canso. This aligns well with the proposed Atlantic loop that will provide the backbone for an interconnected Atlantic power grid. The loop will make it easier for neighbouring provinces to trade clean electricity and enable critical load balancing.

Last, with these amendments, we will be making marine conservation tools stronger, and we are improving the alignment of the accord acts and the impact assessment act.

This bill is a great move. It makes sense. We cannot fail to attract Canada's share of the forecasted $1 trillion in global investment in offshore wind by 2040, and it requires regulatory certainty. It would make Nova Scotia and Newfoundland and Labrador global leaders in hydrogen exports, a source of secure energy that we know Europe needs. It would create well-paying jobs for Canada's highly skilled energy workers.

These amendments are an essential part of our broader climate plan, and they will help bring our emissions down, making Canada more competitive, and stop feeding into the climate-linked natural disasters that my constituents have been experiencing this year.

Nova Scotia knows that this is the time to act. We know that this is good for Nova Scotia, this is good for Newfoundland and Labrador, this is good for Atlantic Canada and this is good for Canada. Let us get this moving and get this to committee so we can work together and get this going.

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

Mr. Speaker, is the member aware that the bill would give federal cabinet the power to cancel a petroleum drilling project on a whim at any point, overreaching provincial jurisdiction and disrespecting indigenous interests?

[Lena Metlege Diab, Liberal, Halifax West, NS]

Mr. Speaker, this is what I know. When the bill was announced, I was in the foyer and partook in the announcement. I also know that the minister from Nova Scotia was at the announcement and represented Nova Scotia's interests. I know Nova Scotia is on board with this. I have also had the opportunity to speak to chiefs from my province from the indigenous communities, and they are on board with this. I know the petroleum board itself is on board with this.

This is a partnership between the federal government, the province, indigenous people, Nova Scotians and Newfoundland and Labradorians. This is a good thing. If there are issues with it, let us get them worked out at committee and move this along.