Bill C-22 (Historical)

Energy Safety and Security Act

An Act respecting Canada's offshore oil and gas operations, enacting the Nuclear Liability and Compensation Act, repealing the Nuclear Liability Act and making consequential amendments to other Acts

Part 1 of this enactment amends the Canada Oil and Gas Operations Act, the Canada Petroleum Resources Act, the Canada-Newfoundland Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act (the “Acts”) primarily to update, strengthen and increase the level of transparency of the liability regime that is applicable to spills and debris in the offshore areas.
More specifically, Part 1, among other things,
(a) expressly includes the “polluter pays” principle, which is consistent with the notion that the liability of at-fault operators is unlimited;
(b) increases to $1 billion the limit of liability, without proof of fault or negligence, to which certain operators are subject in the event of a spill or damages caused by debris;
(c) provides that an applicant for an authorization for the drilling for or development or production of oil or gas must demonstrate that it has the financial resources required to pay the greatest of the amounts of the limits of liability that apply to it;
(d) establishes a regime in respect of the development of transboundary pools and fields;
(e) provides for new circumstances in which information or documentation that is privileged may be disclosed;
(f) establishes a legal framework to permit the safe use of spill-treating agents in specific circumstances;
(g) harmonizes the environmental assessment process for projects for which the National Energy Board, the Canada-Newfoundland Offshore Petroleum Board or the Canada-Nova Scotia Offshore Petroleum Board is the responsible authority, as defined in the Canadian Environmental Assessment Act, 2012, with the requirements of that Act, including by establishing timelines for carrying out environmental assessments and creating participant funding programs to facilitate the participation of the public in environmental assessments; and
(h) creates administrative monetary penalty regimes.
Finally, Part 1 makes amendments to remove certain discrepancies between the English and French versions of the Acts, as well as to modernize the language in the Acts.
Part 2 of the enactment repeals the Nuclear Liability Act and enacts the Nuclear Liability and Compensation Act to strengthen the liability regime applicable after a nuclear incident. It also provides for the establishment, in certain circumstances, of an administrative tribunal to hear and decide claims and implements certain provisions of the Convention on Supplementary Compensation for Nuclear Damage. It also makes consequential amendments to other Acts.

Energy Safety and Security Act

[The Acting Speaker, Conservative, Barry Devolin]

The time for government orders has expired. The hon. member for Surrey North will have six minutes for questions and comments remaining after question period when the matter returns before the House.

The House resumed consideration of the motion that Bill C-22, An Act respecting Canada's offshore oil and gas operations, enacting the Nuclear Liability and Compensation Act, repealing the Nuclear Liability Act and making consequential amendments to other Acts, be read the second time and referred to a committee.

[Jinny Sims, NDP, Newton—North Delta, BC]

Mr. Speaker, it is my privilege to stand in the House and speak at second reading in support of Bill C-22, an act respecting Canada's offshore oil and gas operations, enacting the Nuclear Liability and Compensation Act, repealing the Nuclear Liability Act and making consequential amendments to other acts. That is a very long name for this legislation. What we are really talking about is Canada's liability when it comes to the nuclear and offshore oil and gas industries.

These are the major issues covered in this bill, and the NDP is pleased to see that it is back here again, though I understand that it has been through many iterations during previous parliaments and has never quite been enacted. This is an area in which we have wanted to see action for a very long time, as the existing legislation is so outdated. Our rules and regulations around liability for the nuclear energy and offshore oil and gas industries are so outdated that they go back to the 1970s. We have learned a lot since then, or I hope we have, and we need to address this in all kinds of ways.

As I started to go through this piece of legislation and read some people's reactions to it, I began to see a common thread that I have seen since I became a parliamentarian. That common thread, once again, is the lack of meaningful consultation with those who are well informed on these issues. It is not just me saying that; it is being said by many people.

What really concerned me in this area is the tendency of my colleagues on the other side to ignore those who are really knowledgeable. Parliamentarians are pretty well informed, but we cannot be experts in everything. Therefore, we need to consult the experts who work in these areas. We have scientists who have spent lots of time and energy looking at these areas. We have researchers and governments that we could learn a lot from. But once again, having an allergy to data and science and informed input seems to be what has won the day with this piece of legislation.

Here is a direct quote from the Canadian Environmental Law Association. We are not talking about lay people getting together to come up with some issues, but lawyers at CELA who requested that the federal government “...undertake a meaningful public consultation on how [the] Nuclear Liability Act (NLA) should be modernized to acknowledge lessons from the Fukushima disaster...”.

They also noted the following:

Natural Resources Canada (NRCan) has been privately consulting Canadian nuclear operators on how to revise the NLA. This behind-closed-doors consultation with industry is unacceptable. The NLA transfers the financial risk from reactor operations from industry to Canadians. Canadians thus must be consulted.

As I said previously, there is a tendency not only to ignore broad-based Canadians but also many groups, such as lawyers and other knowledgeable people. This allergy to data, science, and informed advice does not serve Canadians well. Neither does it serve us as parliamentarians well, because we need to have that kind of an education and expertise informing the decisions we make.

There has been lack of consultation not just with this bill but also with the elections bill, which some members have called the “unfair elections bill” currently before Parliament. The current government, once again is not listening to the grassroots, not listening to the experts, not listening to the Chief Electoral Officer, and certainly going off to make some changes based on some ideological agenda. Instead of trying to make Elections Canada work for Canadians and improving our democracy, it is choosing to make the system less democratic, even when it has been made very clear by academics and researchers, who do not often come out jointly to issue or sign statements, that this is not good for democracy.

In a similar way, there has been lack of consultation with the legislation before us. In here, of course, we are not following what I would consider good practice. We just have to look at good practice around the globe. Germany, for example, has unlimited absolute liability, fault or no fault, and financial security of $3.3 billion Canadian per power plant. What is in this piece of legislation? The Canadian taxpayers pick up the liability after the first billion dollars. Germany is not the only country. There are also Japan, Sweden, Finland, Denmark, Austria, and Switzerland with the same. Even the United States has an absolute liability limit of $12.6 billion U.S. The research has shown me that other countries are moving to unlimited absolute liability, whereas our government is quite willing to saddle hard-working Canadians who pay taxes. After Canadian taxpayers have put in an incredible number of hours to survive, and many of them struggling with affordability issues, the government is willing to burden them.

I will give one example. The offshore BP Gulf oil spill of 2010 is expected to cost as much as $42 billion in cleanup costs, criminal penalties, and civil claims. So if we were to apply that same formula, though I am sure that the costs have gone up, the Canadian taxpayers would be on the hook for $41 billion for the cleanup and only $1 billion would come from BP Gulf. In a similar way, looking at Fukushima's nuclear disaster in 2011, the Japanese government has estimated that the cost will be over $250 billion, and with Canada being liable over the $1 billion cost if it had a similar accident, Canadian taxpayers' liabilities would be $249 billion at best.

We often hear my colleagues across the way talk about the hard-working Canadians who pay taxes and how we must protect them and protect their buying power. I agree with them, but what I see in this bill is a government that is not living up to what its members preach quite vocally in other areas.

It seems that the NDP is the only party that is very serious about protecting the interests of ordinary Canadians, while the other parties take a cavalier attitude to nuclear safety and offshore oil and gas development. Whereas other countries, of which I have listed a few, have deemed that their citizens deserve much higher protection in the event of a nuclear accident, our government is willing to look the other way or just have a limited liability for the polluters.

It seems that if polluters must pay, then it would be really good if the legislation here in the House today were current with that principle and really encompass it as well.

Let us get back to the hardworking Canadians. Let us also talk about Canadians who are working very hard to find a job, but cannot find employment. When I was in my riding over the last two weeks, these are the kinds of things I heard from hardworking Canadians and those looking for work.

One of the key things I heard from them was the feeling of community safety. I heard directly from seniors who said, “We do not have enough policing. I do not feel safe at home any more. Why is it that all these cuts are being made to the veterans? Why is it that we are not looking after our veterans who served in World War II and other military engagements on which we have sent them out?”

Constituents came to my meetings and said, “We did not say this before, but we are telling you, we have had enough. Why is it our taxpayers money is not being used wisely?” I would say it is because the government has other priorities. Rather than moving toward or actually implementing unlimited liability, what we are doing once again is putting Canadian taxpayers on the hook.

At the same time, we have hardworking Canadians who are struggling with quick fixes because of the government across the way. Businesses are hurting because they are paying high transaction fees, constituents are hurting because of the high rates on Visa cards, and others are hurting because the cost of living has gone up and their minimum wage jobs are just not cutting it.

Over and over again I heard about the proposed new cuts that could limit access to training and helping people to re-enter the job force because they face challenges in their lives. Changes have been made to the job grant. Negotiations are happening with the provinces and some changes will take place, but really, we will really be denying access to the most vulnerable Canadians so they can re-enter the workforce and be self-sufficient. The savings on that program alone when people re-enter the workforce would be just huge.

I also heard while I was in my riding a very direct quote that somebody read to me—

[The Deputy Speaker, NDP, Joe Comartin]

The member is rising on a point of order.

[Corneliu Chisu, Conservative, Pickering—Scarborough East, ON]

Mr. Speaker, regarding the issue we are discussing here, Bill C-22, I think the hon. member should go back to discuss the issues regarding liability and the content of the bill.

[The Deputy Speaker, NDP, Joe Comartin]

As the hon. member knows, there is a very wide latitude. The member is addressing questions of security at a fairly broad level, which is somewhat related to the bill before the House this afternoon. It may be a bit of a stretch, but it is still within the realm of relevancy that we have applied in past rulings.

[Jinny Sims, NDP, Newton—North Delta, BC]

Mr. Speaker, I just want to reiterate that we are here today talking about a liability that Canadian taxpayers would be taking on. If they are taking on that liability, that means the funds that are available could be spent on the issues my constituents and other Canadians are raising. Therefore, I see a direct link here between the safety and security issues being raised in my riding and the government's unwillingness to take examples of countries like Japan, Germany, and the many others I have listed and moving toward unlimited liability so that Canadians are not on the hook.

As I said, I was also reminded recently that the government finds money for, or finds ways to connect money to, all kinds of things when it wants to; yet it has not lived up to its commitment to add the additional RCMP officers that I know Surrey needs on the streets right now.

Those are the kinds of issues Canadians want their tax dollars spent on. Canadians are very concerned. On the whole, they are a giving people but also have some cogent arguments. Once again, it is not as if the NDP members are the only ones saying this. Joel Wood is a senior research economist at the Fraser Institute, not a left wing think tank, as my colleagues across the way would like to say, but a right-wing think tank, funded by friends of many of my colleagues across the way, and many of them take an active part on it.

This is what he had to say on this issue of nuclear liability caps:

Increasing the cap only decreases the subsidy; it does not eliminate it. The Government of Canada should proceed with legislation that removes the liability cap entirely rather than legislation that maintains it, or increases it to be harmonious with other jurisdictions.

If members do not like listening to the academics, the scientists, I hope they will be a bit more open to listening to the Fraser Institute, which gets quoted by my colleagues many different times.

As I go back to this once again, it is not a frivolous issue before this parliamentary body; this is a bill that each and every one of us should be paying particular attention to, especially in light of the fact that the government that sits across the way, my colleagues, has decreased the environmental protection and environmental filters, the rules and regulations that have been dismantled. Not only have we done that at that end, but we have also put Canadians on the hook for huge liabilities. These are taxpayers. The government does not just mint money in a room somewhere, although we do have the Royal Canadian Mint; it is the taxpayers who pay taxes, and from those taxes we will have to pay for something like this. I do not know about other members, but I was quite shocked at the costs of cleanup. It may be a polluter pays system, but in it the polluters would pay maybe 1% and we would pick up the rest. That does not seem fair. It does not wash with me.

What a huge liability to leave to the next generation. As members know, I have been a teacher for years. I am always conscious of what kind of world we are leaving for our children, not just environmentally but also economically. In this case, as a parliamentarian sitting in this room, I am thinking about the kind of liability I am leaving for them. Do the young people in our country think it is fair that when they are working they should pick up the liability for nuclear, offshore, and gas? I think they would say it should not be like that. There is no way that taxpayers should be on the hook for subsidies for nuclear energy over other renewable power sources.

If the Conservatives across the way in government have so much money to spare, let me invite them to invest that money in renewable, sustainable energy that will also protect our environment. I invite them to read what Germany, Japan, Denmark, Finland, and other countries have. I ask them why we cannot have those same policies. What is preventing us from going with unlimited liability?

We have been blessed. We are one of the world's richest countries in natural resources and we have to be good stewards of those resources. However, we also have to be good stewards for the next generation of Canadians and, I would say, for the planet in ensuring that it is the polluter who pays. The taxpayers cannot keep taking that on.

I could give the Conservatives a million ways they could spend money, if they had some to spare, on issues that would affect and benefit my riding.

[Corneliu Chisu, Conservative, Pickering—Scarborough East, ON]

Mr. Speaker, I listened with great attention to the presentation of my colleague opposite, especially as the Pickering nuclear power plant is in my riding.

My hon. colleague is asking for unlimited nuclear liability, but the NDP does not have a plan for how this would work. We have put forward legislation that would balance the responsibility of nuclear operators to cover any damages by taking into account the impact on ratepayers. What would the NDP's proposal cost the ratepayers of Ontario who rely on clean nuclear power for their electricity?

Nuclear power is one of the green electricities. Does the NDP support the nuclear industry and the men and women who are workers?

In my riding there are 3,000 people working in the nuclear industry. It is very safe and has been producing safe electricity for more than 40 years without any problems.

[Jinny Sims, NDP, Newton—North Delta, BC]

Mr. Speaker, the NDP does support clean energy. Also, we have to listen to the experts, and we do not always have to reinvent the wheel.

Japan, Sweden, Finland, Denmark, Austria, and Switzerland have implemented unlimited liability. I would say that this is the time for us to listen to those experts and find out how they have done it.

We can have a plant that has been very safe for 40 years, and we want it to be safe for the next 100 years. However, Japan thought it had a very safe plant as well. With the events of 2011, it was no longer safe and Japan has ended up spending over $250 billion. Yes, we have to look at past records on safety, but we also have to prepare for the hazard that is there, which could implode one day.

Absolutely, we support workers, but I think the workers themselves want to know that everything has been done to ensure their and the planet's security and safety.

[Geoff Regan, Liberal, Halifax West, NS]

Mr. Speaker, the member focused mainly on the nuclear sector, but the bill also involves the offshore oil and gas sector. I would like the member's comments on what the limit should be in the Arctic.

We know that there is great concern among many Canadians on what would happen if there were an accident drilling in the Arctic or a blowout like the Deepwater Horizon blowout in the Gulf. Under ice, there is no real capacity to clean that up.

I would like the member to comment on whether she thinks the $1 billion limit is sufficient in the Arctic or on what it should be.

[Jinny Sims, NDP, Newton—North Delta, BC]

Mr. Speaker, I do not have the time to go into the opportunities and challenges of exploration in the Arctic. Those are well known to us.

However, I would say that there are some countries that are stopping exploration in the Arctic. I will provide a direct quote from WestLB. The German bank has stopped financing offshore oil projects in the Arctic, and a spokesman has stated:

The further you get into the icy regions, the more expensive everything gets and there are risks that are almost impossible to manage.

Remediation of any spills would cost a fortune.

Its experts have looked at this and they are telling us that there are huge danger signs. I would say the $1 billion cap seems very unreasonable.

[Françoise Boivin, NDP, Gatineau, QC]

Mr. Speaker, I listened to my colleague's speech with great interest.

A Conservative member told her that there was a nuclear power plant in his riding and that it was very safe. However, one of the weak points in Bill C-22 is that the industry will not have to assume any financial liability greater than $1 billion. We have questions about that because it is the people whom we represent in the House, Canadians from coast to coast, who will have to pay for the rest.

If the industry is so mature and safe, should it not have to assume a much greater part of the risk? A nuclear disaster can sometimes cost hundreds of billions of dollars. I shudder at that because, if we pass Bill C-22 as it stands, without going through a committee, it would be dangerous. We would be placing the risk on the shoulders of the taxpayers.

Is that not just another way of providing the nuclear industry with indirect subsidies on the backs of Canadians?

[Jinny Sims, NDP, Newton—North Delta, BC]

Mr. Speaker, I want to thank my hard-working colleague for her question. I have a great amount of respect for the way she works in her riding and her analyses of issues at this level. She has actually hit the crux of the matter. The crux of the matter here is that, as much as this bill enshrines into legislation that the polluter would pay, it would have the polluter pay only a small percentage of the real cost.

Once again, I want to assure my colleagues that I am not making up these figures from the air. Let us look at the cleanup for the BP Gulf oil spill, if there were a $1 billion cap: $42 billion has already been spent, and there is expected to be another $35 billion spent. That $1 billion seems like a pittance, does it not, even though $1 billion is a huge amount of money? Who is going to be on the hook for the rest? We would not simply say that $1 billion had been spent and no more cleanup would occur. That is just not an option. The reality is that, if it is polluter pays, then let us make this more realistic.

We are updating legislation that is over 40 years old. Let us not date it even before we have approved it in the House.

[Irene Mathyssen, NDP, London—Fanshawe, ON]

Mr. Speaker, I would like to thank my colleague for her very good overview of what is going on in this country. She talked about the lack of consultation and the fact that whatever the government does, it sort of wanders ahead without talking to the people of this nation.

In addition to that, I live in Ontario; I survived the Mike Harris years, and I watched not just a lack of consultation but continual downloading. When the Harris government sold off the Bruce nuclear plant, the people who bought it got all the profits. Guess who got the liability in terms of decommissioning? It was the people of Ontario. It seems to me that it is the same story over and over again.

We have not even seen the end of the cost of Chernobyl, and the Japanese people are dealing with a horrendous liability. How on earth can $1 billion even begin to touch it? I am absolutely appalled that the government would say that somehow the people of this nation are liable and the corporations are not.

[Jinny Sims, NDP, Newton—North Delta, BC]

Mr. Speaker, once again, $1 billion for the company; $250 billion for the taxpayers. That is what we are looking at, based on the money spent by Japan for the 2011 disaster.

There is a lot of downloading going on. With the job grants, once again a lot of the expenses for helping the most vulnerable will be downloaded onto the provinces.

It is time for us to be real when we are dealing with legislation. This piece of legislation should be amended and it should go back for consultation with experts.