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

This bill was last introduced in the 41st Parliament, 2nd Session, which ended in August 2015.

Sponsor

Joe Oliver  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

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.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

Sept. 25, 2014 Passed That, in relation to 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, not more than one further sitting day shall be allotted to the consideration of the third reading stage of the Bill; and That,15 minutes before the expiry of the time provided for Government Business on the day allotted to the consideration of the third reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.
May 29, 2014 Passed That, in relation to 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, not more than five further hours shall be allotted to the consideration at second reading stage of the Bill; and that, 15 minutes before the expiry of the time provided for Government Orders on the third day allotted to the consideration at second reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.

Energy Safety and Security ActGovernment Orders

May 29th, 2014 / 9:10 p.m.
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NDP

Nathan Cullen NDP Skeena—Bulkley Valley, BC

Mr. Speaker, the only caveat I would put to his question is that there are many Canadian companies, from IT to the automotive sector and others, that do not enjoy this subsidy. That is what it is, because the cost of carrying insurance is a cost of doing business. If companies lower the amount of insurance they have to carry, they lower the cost of doing business. If somebody else is picking that cost up and it is the public, that is a public subsidy. I can hear Mr. Hudak screaming in the rafters now, “No more corporate welfare”.

Conservatives are so often very comfortable with the idea of corporate subsidies, particularly for corporations that do not need it because they have such an enormous amount of wealth. Oil is $105 a barrel. They are pulling it out of the ground. They are making the money.

If they are taking those risks and enjoying that profit, then certainly they should assume that risk and not spread it out among the hard-working Canadians who had nothing to do with the accidents that those oil companies created.

Energy Safety and Security ActGovernment Orders

May 29th, 2014 / 9:10 p.m.
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NDP

Alex Atamanenko NDP British Columbia Southern Interior, BC

Mr. Speaker, before I start, I must apologize to my interpreting friends. I have given them my notes, but I am going to go a little off the cuff here because I have a few things to say beforehand.

First, I would like to say that I am really fortunate today in just having had supper with some good friends from Chilliwack, Dennis and Penny Martens, who are right there watching me. Dennis and I went to UBC together in the early sixties. It is kind of neat to be able to talk to him and Penny.

I feel really privileged to have followed my colleague from Skeena—Bulkley Valley. He was in my riding just last week, actually, talking to people about the proposed Enbridge pipeline and its consequences, and I will talk about this a bit later. I had a chance to visit the beautiful pristine area that he lives in to see exactly what the consequences of that proposed pipeline would be.

I have some notes here, and I will just ask the interpreters to bear with me.

I just want to say that it seems that the current government that I have been faced with for the last eight years since I have been here is not really friendly with respect to looking after our environment and looking after the people of Canada.

There are many fine individuals in that party, and I see them here. We have a good relationship. They treat me well, with respect, but collectively, the current government has done a lot to our country that will take us a long time to recover from once it is no longer in power.

The bill would update Canada's nuclear liability regime to specify the conditions and procedures for compensation of victims.

It would maintain the principles of absolute fault or no fault, limited and exclusive, except for situations of war or terrorist attacks.

It would extend the limitation period for submitting compensation claims for bodily injury from 10 years to 30 years to address latent illnesses. It would maintain the 10-year period for all other forms of damage.

The nuclear liability changes would apply to Canadian nuclear facilities, such as nuclear power plants, research reactors, fuel processing plants, and facilities for managing used nuclear fuel.

It would also update Canada's offshore liability regime for oil and gas exploration and operations to prevent incidents and ensure swift response in the event of a spill. I will talk a little bit about that later.

It would maintain unlimited operator liability for fault or negligence.

It would increase the absolute liability limit from $40 million in the Arctic and $30 million in the Atlantic to $1 billion for offshore oil.

It would reference the polluter pays principle explicitly in legislation to establish clearly and formally that polluters would be held accountable. That is a good thing.

However, let me say a few words on offshore oil spills in general.

The fact that the absolute liability limit would be increased to $1 billion should not—and I repeat, should not—be a green light to approve further tanker traffic off our B.C. coast. That is what my colleague from Skeena—Bulkley Valley was alluding to: the fact that all of this discussion is somehow supposed to lay the groundwork for this wonderful project in northern British Columbia.

As members are aware, I am sure, after all these years the Alaskan coastline is still seeing effects of the Exxon Valdez spill.

At the invitation of my colleague, the MP for Skeena—Bulkley Valley, I had a chance to visit our northwestern coastline communities of Terrace, Kitimat, and Kitimaat Village. I and some of my NDP colleagues heard what the people had to say about the proposed Enbridge northern gateway pipeline.

As we have seen from the recent vote or referendum in Kitimat, 60% of the people voted against the pipeline, in spite of the huge amount of money spent by the oil industry going door to door to try to get support for the pipeline.

When I was there, we had a meeting with something like 150 people in Terrace, and people of all political stripes do not want the project to go through. At the meeting in Terrace, we learned that if roughly 30% of the oil can be recuperated after a regular oil spill, such as occurred with the Exxon Valdez spill, that is considered excellent.

However, if we can recuperate 7% from a spill of raw bitumen, that is also considered excellent.

It does not really matter what the liability is, once raw bitumen is spilled in the ocean, the environment is basically destroyed forever. This is the point that people in northern communities, people in the area I represent and all over British Columbia are trying to get across. Thousands of jobs in the tourist and fishing industries will be lost permanently. It is not just that the oil is spilled, the company has a liability of $1 billion, and we clean it up. We can clean up only 7% of it, and that is considered excellent. If we do a good job, that is probably 3.5%. If we do a terrible job, we would probably clean up 2% of the bitumen. We cannot allow tanker traffic in the northern coastline. It is as simple as that.

People in my province are mobilizing against this project. For the sake of future generations, we cannot let this project take place. It is often expedient not only for the current government of the day but for governments of all political parties that happen to be in power to think in the short range. It does not matter if governments are Conservative, Liberal, NDP, or Green; we need governments that look to the future. The future is our children and grandchildren. What is the coastline and the province of British Columbia going to be like in the future?

The grandchildren of my friends Dennis and Penny are not going to read in the paper that they cannot go to northern B.C. because the coastline is polluted because a tanker just spilt raw bitumen and none of it was recuperated. Surely we can increase our own refining capacity to create jobs in Canada. I know my party is working on a policy that when we hopefully assume government, we will be able to transition into this green energy strategy that other countries have done, which will provide jobs to millions of people as we transition out of the fossil fuel industry.

If we look at the predictions of climate change, if we look at what is happening in other countries, it is logical. We have this chance, and in the meantime we can increase our oil refining capacity. If we have an oil industry, why not keep the jobs here? For the sake of a few hundred or a thousand jobs for a short period of time, should we build a pipeline and get some hundreds of tankers a year moving in in areas that are prone to high gales and accidents? Why would we do that, rather than taking this product that we take out of the ground and refining it somewhere in our country? We would create jobs as we keep the economy moving, and we would move toward a green energy strategy. That would be a win-win situation. I would prefer that we create jobs in Canada rather than somewhere in Asia.

The bill before us strengthens the current liability regime but will not help protect the environment, or Canadian taxpayers either, because it still exposes them to risk.

The Conservatives constantly lag behind our international partners. They disregard best practices that are used to identify inadequate liability regimes.

We have previously criticized the inadequacy of nuclear liability limits. Even though these provisions must be considered a step in the right direction relative to current limits, this bill does not duly reflect the actual risks Canadians face. We hope to address this point in committee. Consequently, this bill must absolutely be referred to committee. We need to hear from witnesses.

I eagerly await my colleagues’ questions.

Energy Safety and Security ActGovernment Orders

May 29th, 2014 / 9:20 p.m.
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Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, I would like to follow up on the member's closing comments. He talked about the importance of the bill going to committee, and we concur.

There is no doubt that this is a step forward in principle. There are many aspects of the legislation that are long overdue. However, it is important to recognize that with some strategic amendments, we could give more strength to the legislation. This could enrich the legislation to the point where it would be stronger, and all of us would benefit from that.

To what degree does the member feel the government will be open to opposition amendments? It seems, even from the government side, that there is a need to add some additional meat to the bones. Would he like to provide comments on how important it is for us to make those changes?

Energy Safety and Security ActGovernment Orders

May 29th, 2014 / 9:25 p.m.
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NDP

Alex Atamanenko NDP British Columbia Southern Interior, BC

Mr. Speaker, I would like to thank my hon. colleague for all of his hard work on behalf of his constituents.

Today, I read an op-ed in the Manitoba Co-operator, where my colleague from Welland was quoted as saying that we all came together as parties to move through Bill C-30, the railway act. Here we had this instance of co-operation. It is something that often does not happen. All parties got together, the government listened, we made suggestions and, all of a sudden, we had a bill that benefited all Canadians.

This is a golden opportunity for this bill to go to committee and for the government to listen and not do what it did, for example, when I was on the agriculture committee studying the food safety bill. Both the NDP and the Liberal Party provided something like 25 amendments, and not one was accepted. That is not how government works and that is not how democracy should work. This is an opportunity.

I welcome the question from the member for Winnipeg North. I really hope that once it gets to committee, we will have this debate and strengthen the bill so it will be our bill on behalf of Canadians, not just the government's bill.

Energy Safety and Security ActGovernment Orders

May 29th, 2014 / 9:25 p.m.
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NDP

François Choquette NDP Drummond, QC

Mr. Speaker, I congratulate my hon. colleague for his excellent speech. He provided an excellent explanation of all the good aspects of the bill and of the elements that should be fixed.

The NDP, the official opposition, supports the polluter pays principle. The Conservatives claim they also support the polluter pays principle. However, although this bill is a step in the right direction, it does not quite go far enough. Once again, the taxpayers, the everyday citizen, including the people of Drummond who pay their taxes, will have to foot the bill for any disasters that result from accidents.

Could my colleague speak a little more about his position on the polluter pays principle? How would the bill have to be improved in order to observe the polluter pays principle, which is a principle of sustainable development?

Energy Safety and Security ActGovernment Orders

May 29th, 2014 / 9:25 p.m.
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NDP

Alex Atamanenko NDP British Columbia Southern Interior, BC

Mr. Speaker, I thank my colleague for his question. I also thank him for the work he does for his constituents and the work he does in the House.

Taxpayers should not be responsible for the mistakes made by large corporations. Oil companies must absolutely contribute and must pay when there are environmental risks. That should not be up to taxpayers.

The issue is not only the $1-billion limit. What would happen if it cost $2 billion? Would that mean that taxpayers would have to cover the $1-billion difference? I do not think so.

The bill must absolutely include the polluter pays principle, not just for the nuclear and oil industries, but also for all industries. If you run the risk, you pay the price.

Energy Safety and Security ActGovernment Orders

May 29th, 2014 / 9:25 p.m.
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NDP

Alain Giguère NDP Marc-Aurèle-Fortin, QC

Mr. Speaker, agreeing on legislation is already quite a difficult exercise, but the other problem is that, with this government, passing legislation is absolutely no guarantee that it will be implemented.

We are told that we will have very strict safety standards. It looks really nice on paper, but what about their day-to-day application?

For the past two years, the practice of transporting oil by rail has increased by 900%. We should therefore expect that there is a decent railway safety system in place. Is there?

Regarding the number of audit investigations, only 26% of the minimum number of audits is carried out, and 100% of these 26% are poorly done. That is unbelievable. In addition, there is no follow-up of violations. This has got to be the pinnacle of mediocrity. It is a remake of the Pan Am Airways scandal, when they charged clients an additional fee to guarantee their safety, but it was only a marketing scheme. In fact, the company had changed absolutely nothing. We also know what happened with Lockerbie. This is another problem.

We can argue about legislation, but when the government still refuses to implement it, this is when we get such poor results. This is when a Lac-Mégantic disaster happens.

There have been major developments in terms of nuclear liability. The nuclear industry of 1976 and the nuclear industry of today are very different creatures. There are mining facilities where ore enrichment is carried out. This is also a dangerous process. Nuclear plants are not the only ones at risk of exploding. Nuclear plant explosions are bad enough, but now there are more and bigger mines that have ore enrichment processes. That is dangerous. This is something new. It must be discussed.

The nuclear industry also produces medical materials for treatments. Radioactivity is used for medical purposes, if you will. There are plants that make these materials. There are plants that handle radioactive materials. This is dangerous. We must discuss this as well. Therefore, the dangers that were noted in 1976 are very different from the dangers today. We must talk about this and we must make regulations. We must be sure that Canadians are protected and that they are compensated adequately in the event of an accident.

If it costs $2 billion or $3 billion, will you tell Canadians that you are sorry and that it is first come first served? When there is no more money, will you say that is just too bad for them? I do not think that Canadians will particularly like this. It will be up to the taxpayers to foot the bill.

For people who say they want to protect taxpayers, they are being awfully generous to those who systematically expect taxpayers to pick up the tab. Canadians should not be the ones paying the price for these situations.

This law has been in need of change since 1976. Here is a fact: in 1976, inflation was at 10%.

I do not need to point out that, even back then, $40 million was too little. Imagine what that is worth now. It is not enough for anything. All it would pay for is relocating people to a hotel for a few days. That would eat up the $40 million. That number really needs updating.

We want something comprehensive. That is why we are sending it to committee. We have things to talk about and we need to hear from experts. The experts will give us some very interesting information. We have to take the time to listen to them.

What can I say about the wonderful stuff that is oil? Do we need it? Yes. Will we keep needing it? Yes.

I listened to the comments by my colleague from British Columbia. When I was in the northern part of that province, I saw what they were using as a rescue boat.

Believe it or not, it was basically a rowboat. Anyone who thinks a little motorboat can stop an out-of-control tanker from running aground off the coast of British Columbia is mistaken. The Coast Guard is definitely not equipped to deal with these challenges. They have nothing.

Unfortunately, the people who promise to respect the environment and so on are the same detestable bunch that did such a wonderful job in Port Valdez, the same rotten pack that did such fabulous work in the Gulf of Guinea and the Gulf of Mexico, the same despicable gang that performed so admirably off the coast of the Philippines. Those people never paid the bills. The Exxon Valdez cost $7 billion, and the case is still before the courts. Nobody was ever compensated, and that was a long time ago now. No, those people do not want to pay for their irresponsible actions. It might be a good idea for Canada to have ways to protect itself from that.

Energy Safety and Security ActGovernment Orders

May 29th, 2014 / 9:35 p.m.
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Conservative

The Acting Speaker Conservative Barry Devolin

It being 9:36 p.m., pursuant to an order made earlier this day, it is my duty to interrupt the proceedings and put forthwith every question necessary to dispose of the second reading stage of the bill now before the House.

The question is on the motion. Is it the pleasure of the House to adopt the motion?

Energy Safety and Security ActGovernment Orders

May 29th, 2014 / 9:35 p.m.
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Some hon. members

Agreed.

Energy Safety and Security ActGovernment Orders

May 29th, 2014 / 9:35 p.m.
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An hon. member

On division.

Energy Safety and Security ActGovernment Orders

May 29th, 2014 / 9:35 p.m.
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Conservative

The Acting Speaker Conservative Barry Devolin

(Motion agreed to, bill read the second time and referred to a committee)