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

[Rick Norlock, Conservative, Northumberland—Quinte West, ON]

Mr. Speaker, I am pleased to speak today in support of Bill C-22, the energy safety and security act, and particularly on the ways in which the bill would enhance environmental protection.

As part of our responsible resource development plan, our government has been clear that the development of our natural resources will only proceed if it is safe for Canadians and safe for the environment.

Over the past year, our government has initiated a series of new measures to ensure that the development of our natural resources in the offshore is balanced with the protection of the environment. For example, we have increased the number of tanker inspections, required the use of double-hulled ships, and we have improved navigational tools and surveillance used in offshore.

Our government has worked closely with the governments of Nova Scotia, and Newfoundland and Labrador to ensure that Canada's offshore oil and gas regime remains world class. In each province, offshore oil and gas projects are closely and jointly managed by a federal-provincial offshore board, namely the Canada-Nova Scotia Offshore Petroleum Board and the Canada-Newfoundland and Labrador Offshore Petroleum Board.

Bill C-22, the proposed energy safety and security act, builds on this work and would provide a world-class regulatory regime for Canada's offshore oil and gas sectors, as well as the nuclear sector, while strengthening protection for Canadians and the environment.

Bill C-22 is focused on the three main areas: prevention, response, and accountability. Today I would like to focus on the area of accountability, namely polluter pays.

In our Speech from the Throne, our government committed to enshrining the polluter pays principle into law. Bill C-22 would do exactly this. It would place accountability on industry and protect Canadian taxpayers in the unlikely event of an accident.

The polluter pays principle assigns responsibility to the polluter, who would have to pay for any damage done to the environment as well as any associated cleanup costs. In doing so, this principle would encourage industry to put more emphasis on the need to protect the environment through the course of its operations.

Under Bill C-22, our government would deliver on the promise to enshrine the polluter pays principle in the law for the offshore civil liability regime.

The current offshore civil liability regime is twofold. First, in the event of an at-fault accident, the offshore operator is subject to covering all costs related to cleanup and remediation. Second, an offshore operator could be subject to absolute liability, even without fault, of up to $30 million in Atlantic Canada and $40 million in the Arctic. This means that if an operator deliberately or negligently causes an accident, it is wholly responsible for all damages and cleanup costs. If it is not negligent in causing the accident, the offshore operator is liable for the accident and any damages that emanate from it, but only up to $30 million in the case of the Atlantic offshore and $40 million in the Arctic. This is clearly out of date, and the legislation before us will update these liability limits.

One of the key features of Bill C-22 is that it will raise the absolute liability limit to $1 billion. This would bring Canada's offshore liability limit in line with other countries, including the United States and the United Kingdom. It would mean that if a company caused an accident in the offshore or Arctic but was not found at fault or negligent, it must cover costs of up to $1 billion. I think we can all agree that this would be a significant improvement from the current $30 million and $40 million, in the offshore Atlantic and Arctic respectively.

Unlimited liability will remain. This means that if found at fault, a company must pay for all of the costs regardless of how much they are.

Another key feature is that the legislation would establish a basis to seek environmental damages. This would ensure that any damage to species, coastlines, or other public resources could be addressed in a timely and effective manner. The civil liability regime created under the bill would be one of the most robust and comprehensive in the world.

In addition to actual losses, environmental damages resulting from an accident will be included in the new civil liability regime. This is an important aspect of our legislation, and I would like to outline what can be claimed under that regime.

The regime is set out in three broad categories of damage, as follows: first, claims for all actual loss or damages incurred by any person as a result of an incident; second, the costs and expenses incurred by the federal government, a provincial government, or any other person in taking action in respect of a spill; and the third category would cover claims by the federal or provincial governments for loss of what is referred to as “non-use value” relating to a public resource that is damaged by a spill.

The scope of what would be included under the first category of damage is broad. It would cover all actual loss or damage, including loss of income and future income. With respect to aboriginal peoples, it would include the loss of hunting, fishing, and gathering opportunities. This head of damage would include the loss of what falls under the term “use value”, which would include claims for damages to what is commonly referred to as “ecosystem services”.

The second category of damage would enable the federal and provincial governments, or any other party, such as third-party response contractors, to recoup the costs they incur in the course of taking measures to respond to or mitigate a spill.

The third and final category of damage would create liability for loss of what falls under the term “non-use value” in relation to public resource. This would mean that the federal government or provincial government could bring forward a claim for damage to environmental assets that are valuable to Canadians and future generations.

We introduced authority to account for loss of non-use value in the calculation of fines for environmental offences, in 2009.

Bill C-22 would mark the first time that civil claims for loss or of non-use value of public resources would be available under federal legislation. This would clearly be a big step in improving environmental protection. I am proud that our government has brought it forward.

In conclusion, future generations depend upon our taking a long view of protection: establishing clear liability rules, plus an economically meaningful marker demonstrating that we value the full scope of benefits that we receive from our environment.

Bill C-22 would recognize the economic and social value of our natural resource assets, and the diverse and unique value that the environment holds for Canadians.

I urge all of my hon. colleagues to support this important legislation, and I remain available for any questions that may arise.

[Erin O'Toole, Conservative, Durham, ON]

Mr. Speaker, I would like to thank the Minister of Labour for her intervention and for her passionate work across Canada. She certainly has a soft spot for the Durham region, and that is appreciated by me and all of the MPs. For a time she was one of the leading surgeons in our area, and it was deeply appreciated.

She certainly also understands the importance of this industry, not just to Ontario but to the Canadian economy. If we look at the generation and supply network, there are 71,000 jobs in a very high-tech and innovative sector. Canadian technology, represented by CANDU technology, is world class, with a perfect operating record. We should be promoting this more internationally.

We do have plants in half a dozen or so countries around the world, generating greenhouse gas emission free power. However, our regulatory regime, the safety and environmental represented in Bill C-22, needs to be updated. This should not be an opportunity where the NDP, and even the Liberal Party, because the Liberal candidate in the by-election called the nuclear industry “a necessary evil”, stand in the way of modernizing the regulatory framework for some of our leading energy industries, the offshore and nuclear. This is about world-class regulation and promoting jobs in Canada.

[Kellie Leitch, Conservative, Minister of Labour and Minister of Status of Women]

Mr. Speaker, the member is doing an outstanding job in his area of the country, in Durham region, and part of that is making sure that jobs are protected and jobs are created.

Moving forward with Bill C-22, our government is very much focused. Unlike what the NDP would like to do, essentially bankrupting these companies that are moving forward, and putting people out of work, we are moving forward to make sure this is done in a responsible way and that we are creating jobs in the interim.

I would like to ask the member for Durham for his thoughts with regard to how this contributes to job creation, and with respect to the opposition members' position and how it is a job-killing motion.

[Erin O'Toole, Conservative, Parliamentary Secretary to the Minister of International Trade]

Mr. Speaker, it is my pleasure to rise today on Bill C-22, the energy safety and security act. I will be splitting my time with my neighbour, the very capable member for Northumberland—Quinte West.

This bill has been a long time coming to the House. It addresses a number of specific provisions for the offshore oil and gas industry as well as the nuclear energy industry. It is our government's effort to modernize legislation and regulation around these industries. We are hoping that this will not be the third or potentially fourth time that the NDP attempts to delay and block such important modernizing legislation.

The offshore industry is an area where the federal government works collaboratively with the Atlantic provinces. There are accords with the Government of Nova Scotia and the Government of Newfoundland and Labrador. Those provinces will update their legislation following the passage of Bill C-22. For offshore exploration in the north, it is the National Energy Board that is responsible for the oversight of exploration and drilling, whereas with Nova Scotia and Newfoundland and Labrador, it is the offshore petroleum boards that are the specific and expert regulators.

This bill is our attempt to make sure that Canada continues to have world-class and modern regulation of these industries, which are parts of Canada's dynamic energy economy; to make sure that safety is at the forefront of these industries; and to make sure that the environment is respected in the process as well.

As I said, the two areas addressed by this bill are the offshore industry and the nuclear industry. I will speak to both briefly in my remarks on elements of the bill, and then I will discuss something dear to my heart, which is the nuclear energy industry in Canada.

On the offshore oil and gas exploration side, this bill would carry out an important act by clearly enshrining the polluter pays principle in legislation. That is important. It would recognize that when there is fault or negligence on the part of operations in the offshore environment, there would be unlimited liability for people who are negligent or at fault in their operations in that sector.

In the no-fault regime, this legislation is important because it would update and modernize an approach and compensation levels and structures that are remnants of the 1970s. In the case of the offshore oil and gas industries, the no-fault provisions would be increased from a $30 million range for compensation to a $1 billion range for compensation. I think most Canadians would agree that these things should be updated at least every 25 to 30 years. In this case, we are looking at a gap of almost 40 years in updating the regulatory approach and updating those limits and insurance requirements for operators.

The bill would also make it much easier for the government to be directly capable of seeking damages for environmental impact from operations. We all want to make sure that those things never happen, but this bill, which promotes safety and security, would address these liability issues with unlimited liability where there is fault, as I said, and with requirements for compensation of up to $1 billion in the no-fault regime. Canadians think that that is important.

The other aspect, as I said at the outset of my remarks, is the nuclear industry. This is another case in which the regulatory regime and compensation levels would be updated after a lag time of 30-plus years. In cases of incidents in nuclear energy generation, the old cap of civil liability, which is in the $75 million range, would also be increased to $1 billion. Absolute liability would rest with the operators.

The operators, who have a terrific track record in Canada, a perfect track record, I might add, certainly know that they are required to keep the highest standards and ensure that they have adequate operating and insurance coverage to meet the new limits, which would be updated with Bill C-22.

Importantly, on the nuclear side, we are also increasing the limitation period from 10 years to 30 years. This is important because claims may arise from an incident. Remember that we are talking about the what ifs, the very unlikely scenario of any incident. The claims period for accessing compensation should be longer than 10 years. As a lawyer, I know limitation periods are important, but it is important to have a limitation period that acknowledges that some damages or injuries will present themselves long after the incident. This is another way of bringing this up to a modern era.

This bill would also allow Canada to be a signatory to an international convention, the International Atomic Energy Agency's convention on supplemental compensation. This would bring us up to a standard where we could be a signatory to that important international convention, which deals with transborder and international issues with respect to offshore and the nuclear energy industry. This would also make sure we would be world class. Our compensation levels are among the top in the world, particularly in the top for countries with active industries in these sectors.

This is an important modernization of the regulatory and compensation structure for these important industries.

As the member of Parliament for Durham, I am also very happy to be an active proponent of nuclear energy in Canada. Our world-class excellence in this area is something we do not talk about enough. I wanted to do that as an MP, someone who had worked in some energy regulatory matters as a lawyer beforehand, so I helped create the nuclear caucus in Ottawa to promote the industry, to try to raise the level of knowledge among parliamentarians and certainly among Canadians on the important role this industry played in Canada.

Canada was the second nation to have controlled nuclear fission, to create cheap and affordable clean energy. That is an achievement we sometimes forget. The great part of our experimental work in industries in the nuclear sector is that we were never a nuclear nation in terms of warheads. We always used nuclear energy peacefully, and our technology remains among the world's best.

There are 71,000 jobs connected to the nuclear and supply industry in Canada, representing a $7 billion benefit to our GDP. There are 19 operating reactors across Canada. In Darlington, there are four reactors, which, in 2013, were awarded an international safety award from the Institute of Nuclear Power Operations.

If we look at the Durham region at large, beyond just my riding, 50% of Ontario's electricity is generated by nuclear power, a good portion of that coming from the Durham area. This is important because this power is affordable and predictable, it is baseload power, and it is GHG emission-free. So many people in the House, particularly in the NDP, talk about reducing greenhouse gas emissions, but then, at the same time, oppose nuclear energy. It is really an absurd position.

I would note that the member for Winnipeg Centre actually said in the House, “We do not want to see the Darlington nuclear power plant doubled in size. We want to see it shut down”. When 50% of the baseload electricity in Ontario is from nuclear, we cannot set up a few wind turbines to replace that. It shows the absurdity of the position of the member for Winnipeg Centre and many of his colleagues.

I have been a proud supporter of working not only with Darlington Nuclear Generating Station in my riding, but also the Organization of Canadian Nuclear Industries. Our government provided it with an $88,000 global opportunities for associations grant to sell technology abroad. AECL Candu technology is present in China, Romania, India, Pakistan, Argentina, and in Canada, with a perfect track record. I do not want to forget that It is also in South Korea. When I was in South Korea, people talked positively about our industry. It has an error-free record and some of the best technology in the world, so we need to celebrate industries that are world champions.

I would also like to mention the University of Ontario Institute of Technology's clean energy research laboratory, where nuclear power can help work with hydrogen and isotopes to create clean technology.

The bill is important to modernizing our regulatory structure and allowing our industries' offshore industry and the nuclear industries to excel.

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 third time and passed.

Energy Safety and Security

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Mr. Speaker, I am sure the public is well aware that we are debating 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.

This legislation has a number of sections, but the part that I will focus on is the fact that it would modify Canada's civil liability regimes for the offshore oil and gas industry and it would notably increase the absolute liability threshold to $1 billion to operators of offshore oil and gas and nuclear facilities. The current threshold for offshore oil and gas operations are $40 million in the Arctic and $30 million for all other offshore areas.

Offshore drilling does not take place in all parts of Canada. The legislative summary points out that, in addition, offshore exploration activity is currently being conducted in Newfoundland and Labrador and Nova Scotia. Offshore petroleum wells may also be drilled in the Beaufort Sea. Drilling programs there are undergoing a regulatory screening process. In addition, offshore basins near Nunavut's high Arctic islands and in the eastern Arctic may be developed in the future.

Currently, there is a federal moratorium on oil and gas activities in place on the offshore of British Columbia. In Quebec, a provincial moratorium exists on the oil and gas offshore activities in the Gulf of St. Lawrence. A permanent prohibition on such activities applies in waters northwest of the Gulf of St. Lawrence and its estuary.

What we have heard from the other side is that the New Democrats should approve and support whatever bill the government brings forward. One member talked about the fact that this was all about jobs. Any responsible member of Parliament must, first, do their due diligence. However, second, when we talk about resource development and issues pertaining to resource development, we need to consider them in the economic, environmental and social contexts. We would be irresponsible if we did not take a very broad view of any resource development that happens in Canada and the consequent liability.

The NDP has been critical of this bill on a number of fronts, but there are three principles of sustainable development: equity, precautionary principle and broad inclusive participation. Bill C-22 would not uphold the polluter pays principle in the nuclear part of the bill and it would fail to create an inclusive consultation process for projects. It would allow the minister to be subject to lobbying, thus reducing the minister's accountability.

Bill C-22 would not mandate a solid inclusive consultation process for specific projects, which is essential, given the potential impact these projects could have on the quality of life and well-being of concerned communities and regions.

The government's proposed $1 billion cap for offshore drilling would apply to no fault liability, while operators would continue to face unlimited liability should they be found at fault or negligent. Companies would also be required to demonstrate to the regulators their financial capacity to cover $1 billion in cleanup costs should it become necessary. It would also increase coverage for exploratory drilling operations offshore, production operations, the loading of tankers for transport and undersea pipelines, such as natural gas from Sable Island to the Mainland in Atlantic Canada.

Here is the sticker. The bill would provide for ministerial discretion to reduce absolute liability levels to below the legislative level of $1 billion. This discretionary provision could undercut the advantages of the legislative increase in the absolute liability limit contained in Bill C-22.

The legislative summary refers to section 2.1.4.2 under “Public Hearings”. Bill C-22 would add new sections to the Canada oil and gas operations, allowing the National Energy Board to conduct a public hearing in relation to the exercise of any of its powers or the performance of any of its duties and functions under the act.

The New Democrats absolutely support a public process with regard to reviewing applications that come forward around resource development. However, I want to highlight the fact that the National Energy Board has been subject to some pretty severe criticism with regard to its operations. Simply because it is in this bill that the National Energy Board would be able to conduct a public hearing, it does not give us any confidence about how that public hearing would be conducted, who would be involved and whether the information would actually be considered.

I want to turn to a letter dated October 30, that was sent to the secretary of the National Energy Board. It is about an intervenor making a licence withdrawal from the hearing on the Trans Mountain expansion project. I will read an excerpt from this letter, because again, if the legislation mentions it but we do not have confidence in the process, why would we support it? In this letter, the intervenor says:

The unwillingness of Trans Mountain to address most of my questions and the Board’s almost complete endorsement of Trans Mountain’s decision has exposed this process as deceptive and misleading. Proper and professional public interest due diligence has been frustrated, leading me to the conclusion that this Board has a predetermined course of action to recommend approval of the Project and a strong bias in favour of the Proponent.

In effect, this so-called public hearing process has become a farce, and this Board a truly industry captured regulator.

If the government is to review applications in sensitive offshore areas like the north and if this is the kind of process to which these reviews would be subject, it does not leave us any confidence that we will end up with the best kinds of decisions.

The letter goes on to say:

In addition to gutting the oral-cross examination feature of a public hearing process that supports proper questioning and an adequate level of due diligence, there are other Board decisions that have been made over the course of this hearing that reflect a pre-determined outcome.

The evidence on the record shows that decisions made by the Board at this hearing are dismissive of intervenors. They reflect a lack of respect for hearing participants, a deep erosion of the standards and practices of natural justice that previous Boards have respected, and an undemocratic restriction of participation by citizens, communities, professionals and First Nations either by rejecting them outright or failing to provide adequate funding to facilitate meaningful participation.

Certainly in British Columbia that continues to be an ongoing source of irritation, which is probably too light of a word. However, many people who want to intervene in an NEB process simply do not have the capacity to review the thousands of pages of documents and to present a finding, so funding becomes critical, particularly with regard to first nations communities that will be directly impacted by projects.

It is a lengthy letter, so I cannot read it all, but further in the letter the intervenor indicates:

The Board had stated that the elimination of cross-examination of the Proponent’s evidence can be evaluated through the two scheduled Information Requests. But we have a Kafkaesque outcome. Trans Mountain refuses to answer questions and the Board does not compel them to do so.

We have a proponent that can say whatever it wants, yet intervenors have no ability to question it, because the board will not allow the questions.

The intervenor goes on to say:

The Province of British Columbia stated that “Trans Mountain’s failure to file the evidence requested by the Province in Information Request No. 1 denies the Board, the Province and other intervenors access to the information required to fully understand the risk posed by the Project, how Trans Mountain proposes to mitigate such risk and Trans Mountain’s ability to effectively respond to a spill related to the Project.”

The National Energy Board is not fulfilling its obligation to review the Trans Mountain Expansion Project objectively. Accordingly it is not only British Columbians, but all Canadians that cannot look to the Board’s conclusions as relevant as to whether or not this project deserves a social license. Continued involvement in the process endorses this sham and is not in the public interest.

One of the reasons the NDP has objected to the bill is the lack of clear process around public consultation. The government continues to say that Canadians should not worry, that the National Energy Board will look after their interests. When we have had a very credible intervenor raise questions about the NEB's independence, we need to do a far better job of telling Canadians how projects would be evaluated.

We need that openness, transparency and accountability so Canadians have confidence that when a project is approved, that it has been tested for the environmental, economic and social impacts. It is with very good reason that the New Democrats do not support the bill at this stage. We attempted to make a number of amendments at committee stage and of course to no surprise, those amendments were rejected by the government.

I point out, once again, that we are under time allocation and that limits the amount of time and the number of witnesses who can be called to review the bill. With very good reason, the New Democrats oppose the legislation.

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

Mr. Speaker, it is my pleasure to rise today in opposition to Bill C-22. It is called “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”. I suppose, compared to some other names I have seen for bills coming before the House, this one is not as reactionary or volatile.

I have a major concern. We are dealing with a piece of legislation that is critical, and I am hearing that from colleagues on the other side. First, it took them forever to bring the bill here. They could have done it a long time ago. Now they keep moving time allocation on it. Here we are, once again, speaking to a bill, and it is one out of eighty bills that has had time allocation.

This is getting to be ridiculous. I urge my colleagues to take a serious look at that. Not only has the government placed time allocations in the House, but at committee stage it prevented a full array of experts and other witnesses from coming forward to present testimony so that the legislation can be well thought out and based on opinions of those in the field. It prevented experts from talking, who know a lot more about this issue than many parliamentarians in the House.

Once again, we, as parliamentarians, have been denied access to that kind of expertise and science. Knowing the government's allergic reaction to science and expert opinion, I should not be surprised, but I am still very disappointed.

I have heard a number of times today that the bill is an improvement on what we have. I agree.

Mr. Speaker, I forgot to say that I will be splitting my time with my esteemed colleague, the member for Nanaimo—Cowichan. My apologies to her.

The bill has taken a long time to come here. The changes are long overdue, but once again my colleagues across the way have failed to address fundamental issues that need to be addressed.

I always hear from my colleagues about how the U.S. does it, and that if the U.S. is dropping missiles into Iraq we have to follow because we are very close friends. However, it seems in this case that they are quite willing to ignore what the U.S. is doing in this area, and what other countries are doing. Germany, Japan, Sweden, Finland, Denmark, Austria, and Switzerland have unlimited liability for nuclear power plants. We are not talking about one or two countries;.this is a series of countries that I have listed.

The Conservatives have set the bar even lower than the U.S., the closest to us border-wise. That causes me major concern. When it suits us, we have to be like the U.S. and follow it here and there. However, when it does not suit us and it concerns the pocketbooks of Canadians and our future well-being, then they are quite willing to look the other way.

Even the U.S. has standards that are much higher than the ones proposed in the bill. The U.S. has an absolute liability regime of $12.6 billion U.S., compared to $1 billion. We can all see, even my grandchildren in school would be able to see, that there is a huge difference there.

However, if the companies are not paying, guess who is paying? It is the taxpayers. The current government, which is always talking about being good managers of taxpayers' assets, in this case is willing to land the taxpayers with billions and billions of dollars worth of liability. I am not exaggerating. We only have to look at what has happened in the past when it came to cleanup.

It is not as if we do not have any examples. We can look at the cost of cleanup around Japan's 2011 Fukushima nuclear disaster. The Japanese government estimates that the cleanup for the nuclear disaster at the Fukushima Daiichi plant could be over $250 billion.

I am not grabbing these numbers out of the air. This is a country that has experienced that reality, and it is giving us its best opinion. Japan has already spent well over hundreds of billions on this.

What do the so-called smart economic managers for our Canadian taxpayers do, who are sitting on the other side? They are proposing a total liability of $1 billion. That does not speak well for being good managers of taxpayers' money.

We are pleased to see that the bill would bring some changes, which include unlimited liability for gas and oil companies. Coming from beautiful British Columbia and being very proud of our pristine coastline, we are very concerned. We want to see obstacles put in the way so that the business community, oil explorers, and other companies, will make sure that they take every precautionary step possible to avoid a leakage, spill, or any other kind of disaster.

If this measure is good enough for the oil and gas industry, it should be good enough for the nuclear industry as well. I am finding it very hard to get my head around why we would treat two industries so very differently. Neither industry is new; they are both well established.

After years of experience as the environment minister in Quebec, I believe that the NDP leader knows environmental protection and sustainable development inside and out. I absolutely believe that he would not support, nor would he bring forward, legislation that would put liability for nuclear companies at only $1 billion.

Subsidizing the most profitable industries in the country and leaving taxpayers on the hook for a massive nuclear disaster or oil spill does not make sense. However, the Conservative government would do exactly that.

I would say that the Conservatives are going against the common sense test. If I were to put this idea forward to a grade 5 class in my riding, they would say “Really? That's not fair”. It is not right, and it concerns me. I think it is shameful that we have a bill before us that does not put the interests of the taxpayers before narrow corporate interests, and that is what we are seeing here.

I will finish with wishing everyone in the House a happy and productive week in their ridings. I know that all of us will be participating in Remembrance Day ceremonies, which are always filled with pathos, sadness, and memories as we honour those who sacrificed for us. However, this year, in light of the events we have personally experienced here, they will take on a different level of poignancy.

[Patricia Davidson, Conservative, Sarnia—Lambton, ON]

Mr. Speaker, this is a point that we need to be clear on. Bill C-22 would raise the liability limits for the operator to $1 billion. We know we needed to do that. We were operating under a nuclear bill that was several years old and needed to be updated. We know when we compare the billion-dollar operator liability to other countries that this will put Canada among the highest limits in the world.

The United Kingdom, France, Spain and other European countries are moving to an operator limit of $1 billion. They are not there yet but they are thinking of going that way. Other non-European nations, including South Korea, South Africa and Argentina, have lower liability limits.

We ask, “Why not move it higher?” We know that in the aftermath of Fukushima the Japanese government had to step in and bail out the operator. In the highly unlikely event of an incident that exceeded the billion dollar limit, the Minister of Natural Resources in Canada would be required to table a report before Parliament containing estimates of the costs of the damages from the nuclear incident. That report would provide government the opportunity to make recommendations on the desirability of additional compensation beyond the liability limit based on relevant consideration at that time.

[Patricia Davidson, Conservative, Sarnia—Lambton, ON]

Mr. Speaker, I am pleased to respond to that member's question.

We need to remember that Bill C-22 would do four important things. It would raise the absolute liability for companies operating in the Atlantic offshore. We talked about that. It would also raise it in the Arctic. It would amend the agreements that are in place with both the Canada-Nova Scotia Offshore Petroleum Board and the Canada-Newfoundland and Labrador Offshore Petroleum Board. In the nuclear sector, it would increase the absolute liability amount to $1 billion. It would also take steps to replace the 1976 Nuclear Liability Act.

There are other things that this bill would do. Coming from an area such as Sarnia-Lambton, I am well aware of the importance of the energy sector to our economy and the safety and environmental issues that are inherent in that energy sector. I am also well aware of pipelines. We probably have an inordinate number of pipelines in my area, far more than in any other area in this country.

Bill C-22 also puts in place some other measures that would provide an improved response, a stronger accountability and greater transparency. Therefore, I am looking forward to all members supporting the bill and getting it passed quickly.

[Patricia Davidson, Conservative, Sarnia—Lambton, ON]

Mr. Speaker, I would like to thank the member for Prince George—Peace River for sharing his time with me.

It is my privilege to speak to Bill C-22, the energy safety and security act. This legislation would ensure continued world-class safety and security for Canada's offshore oil and gas, and nuclear energy industries. It would enhance regulation and ensure that development is done in a manner that is safe for Canadians and safe for our environment.

Our government has been very clear, taxpayers should not be liable in the highly unlikely event of an incident in either of these industries. It is the company that must be held liable. The bill would deliver on the promise made in the Speech from the Throne to enshrine the polluter pays principle into law. As well, it would fulfill our commitment to provide $1 billion in protection to Canadians by raising absolute liability limits in both these sectors. Absolute liability holds the company responsible regardless of fault.

Canada has an enormous wealth of natural resources that generate significant economic benefits for Canadians. It is not an exaggeration to say that the resource sector is the cornerstone of Canada's economy. Natural resources account for nearly 20% of our gross domestic product, and 50% of our exports.

In fact, the energy, mining and forestry industries provide over $30 billion a year in revenue to governments, money that supports critical social programs such as health care and education. Furthermore, 1.8 million Canadians currently work in the natural resource sectors or in industries that service these sectors. Put another way, one in 10 Canadians work directly or indirectly for the natural resources sector.

Natural resource jobs are in every part of Canada from coast to coast to coast. Today, more than 30,000 aboriginal people work in energy, mining and forestry jobs throughout Canada, making the natural resources sector the largest private sector employer of aboriginal people.

There is true potential for massive investments in resource sectors in every region across Canada. It is estimated that hundreds of major resource projects are currently under way in Canada or planned over the next 10 years, worth approximately $650 billion in investment.

These investments will generate enormous economic growth and create hundreds of thousands of well-paying jobs in communities across Canada. Responsible resource development achieves the right balance to unleash the potential of our resource sectors to create high-value jobs across Canada while strengthening safety and environmental protection.

The legislation before us today will strengthen the growth of Canada's energy sector, and will protect Canadians and the environment. With respect to Canada's booming offshore oil and gas industry, the economy of Atlantic Canada has been truly transformed.

Over the past 15 years, Nova Scotia offshore oil and gas production has generated over $2.4 billion in government revenues and annually supports some 750 jobs. At the same time, Newfoundland and Labrador production has generated over $9.2 billion in government revenues and provides over 12,800 direct and indirect jobs annually.

Every stage of offshore petroleum activity, from exploration to production, is subject to strict regulations and oversight by the Canada-Nova Scotia Offshore Petroleum Board, and the Canada-Newfoundland and Labrador Offshore Petroleum Board.

Canada's environmental record is strong, and we are making it stronger by focusing on what matters to Canadians: jobs, economic growth and long-term prosperity. Our government manages Canada's offshore oil and gas resources jointly with the provinces. We worked in collaboration with Nova Scotia, and Newfoundland and Labrador to develop these changes.

Bill C-22 would hold companies to account in the case of an incident. By fulfilling our promise in the Speech from the Throne and enshrining the polluter pays principle into law, we are ensuring the continued success of offshore development.

In the Atlantic offshore we are increasing absolute liability from $30 million to $1 billion. We are also increasing the offshore absolute liability in the Arctic from $40 million to $1 billion. This means that companies are responsible for damages up to that amount, regardless of whether they are at fault for the incident. As is currently the case, we would continue to maintain unlimited liability where fault or negligence is proven.

Additionally, companies would need to demonstrate that they have $1 billion in available financial capacity. The bill would make companies responsible for their product and require them to pay for any damage caused. The bill would also strengthen the transparency of our safety regime by giving the public access to emergency planning, environmental plans and other documents filed with regulators. We feel strongly that the public deserves access to this important information and we will make sure that they have it.

Through our government's actions, oil and gas companies operating in the Atlantic and Arctic offshore would be subjected to the highest safety and liability standards in the world.

As my colleagues have mentioned, the energy safety and security act would also strengthen Canada's system for nuclear liability. It places Canada in line with internationally accepted compensation levels and significantly increases the operator's absolute liability for civil damages from $75 million to $1 billion. This increase brings Canada in line with modern western nuclear power generating countries.

This is an important aspect for Canadians because they want to be assured that nuclear power generated in Canada is done safely. Of course, the safety and security of this sector is paramount to the bill and I am proud that we are taking steps to update the liability limits for nuclear.

It is unfortunate that the NDP continues to oppose thousands of jobs in the nuclear sector and the non-emitting electricity generated by nuclear power. I do not need to remind Canadians of the importance of our energy sector. Most willingly acknowledge the huge role that it plays in our national economy and many Canadians would even suggest Canada is blessed with an abundance of resources. The question is why any responsible party would attempt to minimize or negate the importance of one of the most important players in the energy sector, the nuclear industry, as it relates to the overall economic well-being of Canada.

While other parties refuse to support hard-working Canadians or the creation of high-paying jobs across the energy sector, our government is moving forward to ensure that we have world-class safety standards for the benefit of all Canadians, which will in turn lead to even better economic opportunities for all.

In conclusion, the energy safety and security act offers Canada a solid, modern framework to regulate the offshore and nuclear liability systems in Canada for decades to come. Despite the divisive nature of the debate against Canada's development of our various natural resources, the truth that many Canadians realize is that economic prosperity and environmental protection can both be achieved.

Canadians trust our government to grow the economy, create jobs and responsibly develop Canada's resources.

[Bob Zimmer, Conservative, Prince George—Peace River, BC]

Mr. Speaker, I will be sharing my time with the member for Sarnia—Lambton today.

Mr. Speaker, I am pleased to join in the debate today on an extremely important piece of legislation: the energy safety and security act. The act would ensure the continued safety and security of Canada's offshore oil and gas and nuclear energy industries, helping to make a world-class regulatory regime even better while strengthening protection for Canadians and the environment.

Bill C-22 would modernize Canada's laws to ensure accountability in these industries and to protect taxpayers if a serious incident resulted in cleanup costs and compensation.

Our government has made a firm commitment, under our plan for responsible resource development, that no major resource project will proceed unless rigorous environmental protection measures are in place. Bill C-22 reflects this commitment by strengthening safety and security in Canada's energy sector by focusing on prevention, response, accountability, and transparency.

The energy safety and security act would give Canada one of the strongest liability regimes in the world, providing a solid framework to regulate Canada's offshore and nuclear industries into the future.

The legislation would also support the responsible promotion and development of our offshore and nuclear industries, which are essential to Canada's economy.

I would first like to speak about the strong regulations we have in our nuclear sector.

Canada has a proud and distinguished history in the development and application of nuclear technologies for peaceful purposes. Canada has been involved in almost every aspect of the nuclear industry, from uranium mining and processing to the development of our CANDU reactors for clean power generation to the production of medical isotopes. As well, in many aspects of nuclear science, including our regulatory regime, we have been world leaders.

The task of overseeing Canada's safety in the nuclear sector falls to the Canadian Nuclear Safety Commission, or CNSC, Canada's nuclear regulator. As hon. members are aware, the CNSC is independent with respect to licensing and regulatory matters. It reports to Parliament through the Minister of Natural Resources.

Our government places the highest priority on the protection of health, safety, security, and the environment in relation to nuclear activities in Canada. That is why we have ensured that the Canadian Nuclear Safety Commission has the resources it needs to do its mandated job.

The CNSC's compliance and enforcement system includes a number of enforcement actions, such as increased regulatory scrutiny, licensing, decertification, and prosecution. As part of our government's plan for responsible resource development, the CNSC has received an additional tool to ensure safety and environmental protection in Canada's nuclear sector: the Administrative Monetary Penalties Regulations. These new regulations authorize the use of financial penalties for violations of the Nuclear Safety and Control Act.

Our Canadian nuclear industry is strong. Unlike the NDP, our government is committed to taking the necessary steps to make it even stronger. If the NDP had its way, it would shut down the nuclear industry entirely, putting 17,000 highly skilled Canadian workers out of work and bankrupting Canadian businesses. This is obviously unacceptable

The government supports a strong and safe nuclear industry, and Bill C-22 further demonstrates our commitment to nuclear safety.

A key feature of Bill C-22 is the $1-billion protection it would provide. In the case of Canada's nuclear industry, we would be strengthening the liability regime to increase the amount of compensation available for civil damages from $75 million to $1 billion

Canadians can be assured that the CNSC would continue to diligently oversee all aspects of the Canadian nuclear industry to ensure that public health, safety, and security, as well as the environment, were protected.

I would now like to briefly touch on other parts of the bill that deal with the offshore.

Bill C-22 would also apply to oil and gas companies operating in the offshore, where we would be raising the absolute liability to $1 billion from its current levels of $30 million in the Atlantic offshore and $40 million in the Arctic.

With these measures, the energy safety and security act would reinforce, in unprecedented fashion, the polluter pays principle, which would protect Canadian taxpayers.

As hon. members know, on our east coast there are two independent offshore boards: the Canada-Newfoundland and Labrador Offshore Petroleum Board, and the Canada-Nova Scotia Offshore Petroleum Board. The accord acts give these boards the legal authority to regulate offshore oil and gas exploration and development activities.

Members of the offshore boards have professional expertise in various disciplines, including environmental protection, law, economics, engineering, and business. They are supported by highly qualified management teams and staff with extensive experience, including in the fields of environmental protection and safety. Each board ensures that operators exercise due diligence to prevent offshore spills. As a result, drilling cannot occur unless the responsible board is completely satisfied that drilling plans comply with federal regulations and are safe for workers and the environment.

With this in mind, we have worked closely with Nova Scotia and with Newfoundland and Labrador to update and expand legislation to ensure that Canada's offshore regime continues to be world class. Offshore installations and the equipment and training required to operate them must meet strict regulatory standards that are among the highest in the world. The Offshore Health and Safety Act, which received royal assent last spring, will further strengthen Canada's safety regime by giving the offshore industry a clear occupational health and safety framework that is enforceable by law and is free of jurisdictional uncertainty.

Bill C-22 would mean that companies operating offshore would have to have the financial capacity to meet the higher liability obligations. Before any offshore drilling or production activity could take place, companies would need to prove that they could cover the financial liabilities that could result from a spill. This legislation would also establish a cost-recovery regime for the operations of the offshore boards, oblige new requirements for transparency, and create new enforcement tools, such as administrative and monetary penalties.

In conclusion, our government knows that economic prosperity and environmental protection are not mutually exclusive. We are committed to protecting the safety of Canadians and the safety of the environment. Through our plan for responsible resource development, we have taken action to ensure that Canada's vast resource wealth can be developed responsibly by putting public safety and environmental protection first. With the passage of Bill C-22, Canada would have in place one of the most modern, efficient, and stringent offshore safety regimes in the world.

Our world-class standards are supported by strong environmental laws. We have worked closely with the governments of Nova Scotia and Newfoundland and Labrador to modernize this legislation to make Canada's already world-class safety regime even better.

Bill C-22 is yet another example of our government's commitment to being a leader in safety and environmental protection while ensuring that all Canadians benefit from the jobs, opportunities, and economic growth created by Canada's natural resources. I urge the New Democrats to stop their ideological opposition to resource development and urge all hon. members to allow the passage of Bill C-22.

The House resumed from September 15 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 third time and passed.

Business of the House

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, as my friend has observed, the House of Commons has had an eventful week, but the event that gave me the most satisfaction was seeing the House vote on Tuesday to adopt Ways and Means Motion No. 16. Some watching on TV at home might ask what Motion No. 16 is. That motion enables our government to proceed with the family tax cut and it supports our increase to the $100 a month universal child care benefit, an increase that would see up to $1,920 per child, per year going to support Canadian families.

As exciting as that vote was, I was disappointed to see the position of the members of the NDP and the Liberals in particular, who voted against that support for families.

Now, on to the business of the House. This afternoon we will resume and hopefully conclude debate on second reading of Bill C-21, the red tape reduction act.

Tomorrow, we will finish third reading debate of Bill C-22, the energy safety and security act.

Next week, of course, is a constituency week, when we will be able to connect with our constituents, as well as have a chance to join them at Remembrance Day ceremonies, in our home communities. This is especially important this year, for many reasons.

When the House returns on Monday, November 17, we will start the report stage of Bill C-18, the Agricultural Growth Act, and after question period, we will start the report stage of Bill C-27, the Veterans Hiring Act. Both of those bills have been recently reported back from committee.

On Tuesday, November 18, we will have the third day of debate on Bill C-44, the protection of Canada from terrorists act. Since all parties support committee examination of the bill, I would expect that the opposition will agree to let that start after next Tuesday's debate.

Also on Tuesday night, we will complete the concurrence debate on the first report of the agriculture committee.

The following day, we will debate Bill C-18 again.

Finally, on Thursday and Friday of the next sitting week, we will resume debate on Bill C-26, the tougher penalties for child predators act, at second reading.

I was asked directly when the remaining two opposition days will be scheduled. Some time in those remaining four weeks, before we rise for the Christmas break, we will hold those two opposition days.

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, this afternoon we will continue to debate Bill C-43, the economic action plan 2014 act, no. 2, at second reading. That is a bill that focuses on job creation, economic development, growth and prosperity for all Canadians, and is certainly something that is welcomed in this time of continuing global economic uncertainty, and something that focuses on the priorities of Canadians. That debate will continue tomorrow and then will conclude on Monday.

Of course, also on Monday, the President of France, François Hollande, will address both houses of our Parliament that morning.

On Tuesday and Wednesday, we will consider Bill C-44, the protection of Canada from terrorists act, at second reading.

Ideally, we will conclude this debate on Wednesday, so that a committee can get on with the important work of studying the details of this legislation. This will be an opportunity for all parties to study the bill and its important measures in detail.

Next, I am hoping that on Thursday we could wrap up the second reading debate on each of Bill S-5, the Nááts’ihch’oh National Park Reserve act; and Bill C-21, the red tape reduction act.

Finally, next Friday, November 7, will be dedicated to finishing the third reading debate on Bill C-22, the energy safety and security act.

There was a specific question with regard to the remaining two allotted days. As members know, I believe we have four weeks available to us after the opportunity in the ridings to observe Remembrance Day with our constituents. I anticipate that those two allotted days will be designated for dates in that last four-week period.

[Andrew Van Iterson, Manager, Green Budget Coalition]

Mr. Chairman and honourable committee members, thank you for inviting the Green Budget Coalition to speak to you again. I'd also like to introduce the Green Budget Coalition's co-chair, James Brennan, from Ducks Unlimited, who can also answer questions.

As many of you know, the Green Budget Coalition is unique in bringing together the expertise of 14 of Canada's leading environmental organizations, collectively representing over 600,000 Canadians and ranging from Ducks Unlimited to Greenpeace. Our mission is to present an analysis of the most pressing issues regarding environmental sustainability in Canada and to make a consolidated annual set of recommendations to the federal government regarding fiscal and budgetary opportunities.

The coalition has welcomed the Government of Canada's progress on the GBC's recommendations, including the Prime Minister's May announcement of the national conservation plan, reductions in tax preferences to the extractive industries, funding for fresh water and infrastructure, and the proposed measures to enshrine the polluter pays principle into law in Bill C-22.

However, many more federal actions are still needed to conserve Canada's natural heritage, to ensure Canadians can live healthy lives, and to play a responsible role in advancing global environmental sustainability

For budget 2015, the Green Budget Coalition is recommending that the Government of Canada pursue three strategic agendas, each of which has a number of associated recommendations. First is energy innovation and climate change leadership with an integrated agenda to capitalize on the blossoming global clean energy economy and to demonstrate leadership on climate change when it is increasingly clear that it its needed. Second is to advance Canada's national conservation plan and make progress on protecting our life-support system starting by meeting our international Aichi biodiversity targets of protecting 17% of our lands and fresh water and 10% of our oceans. Third is to ensure healthy communities for all Canadians, featuring a new environmental health equity agenda to ensure that all Canadians, including vulnerable and disadvantaged populations, can enjoy the same level of protection from preventable environmental health hazards.

Implementing these agendas together could lead to pivotal progress on each of the finance committee's consultation themes, as outlined in the executive summary of our submission, creating prime environmental, economic, and human health benefits.

Given today's focus on jobs, I'd like to outline the key actions we're recommending to accelerate progress on energy innovation and climate change leadership. First is to continue progress on phasing out inefficient fossil fuel subsidies, honouring our commitment to the G-20 by committing to not provide new subsidies to liquefied natural gas or renew the mineral exploration tax credit. Second is to announce and implement a well-designed price on greenhouse gas emissions as has been endorsed by the World Bank, the IMF, the Canadian Council of Chief Executives, our friends here from the Canadian Chamber of Commerce, and, I suspect, others at the table here, in 73 countries and over 1,000 companies. Third is to fund fast-charging stations for electric vehicles around major urban centres and provide accelerated capital cost allowance for all forms of power storage to remove key barriers to an efficient Canadian energy system. Fourth is to play a leadership role in United Nations climate change negotiations, including committing $400 million annually for climate change adaptation and mitigation in developing countries. Fifth is to protect Canadians and our environment from increasingly volatile weather events, building on the funding for disaster protection that was in Budget 2014, by renewing and expanding the adaptation funding under the clean air agenda before it sunsets in 2016 to at least $45 million per year, and to complement that, by integrating adaptation considerations into all infrastructure project planning and assessment under the Building Canada plan.

Before my time is up, I would also like to highlight a few of the other recommendations we're supporting: renewing and increasing implementation funding for the Species At Risk Act; mapping conservation value across Canada to support the success of the government's national conservation plan; promoting the new environmental health equity agenda, by building on a model that's already in place in the United States; and establishing a tax credit to help Canadians remediate radon, which is the second-leading cause of lung cancer, in their homes.

Thank you all for your time.