Pipeline Safety Act

An Act to amend the National Energy Board Act and the Canada Oil and Gas Operations Act

This bill is from the 41st Parliament, 2nd session, which ended in August 2015.

Sponsor

Greg Rickford  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament has also written a full legislative summary of the bill.

This enactment amends the National Energy Board Act and the Canada Oil and Gas Operations Act in order to strengthen the safety and security of pipelines regulated by those Acts.
More specifically, the enactment, among other things,
(a) reinforces the “polluter pays” principle;
(b) confirms that the liability of companies that operate pipelines is unlimited if an unintended or uncontrolled releaseread more

Elsewhere

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

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-46s:

C-46 (2023) Law An Act to amend the Federal-Provincial Fiscal Arrangements Act and the Income Tax Act
C-46 (2017) Law An Act to amend the Criminal Code (offences relating to conveyances) and to make consequential amendments to other Acts
C-46 (2012) Law Pension Reform Act
C-46 (2010) Canada-Panama Free Trade Act

Votes

March 9, 2015 Passed That the Bill be now read a second time and referred to the Standing Committee on Natural Resources.

Pipeline Safety ActGovernment Orders

May 6th, 2015 / 5:05 p.m.

Conservative

Pat Perkins Conservative Whitby—Oshawa, ON

Mr. Speaker, we addressed those matters at our committee. I am fortunate to be able to speak first hand to that, because we had the National Energy Board members there. We also had the pipeline folks there. We asked those questions.

Basically, they have some new technology. They will replace anything they need to replace. Although that is a 40-year-old pipeline, they have new technology, and they are testing throughout the pipeline to find out where there may be problems.

We have to remember, the liability lies with the carriers. They are not about to not fix something that is going to cost them a lot of money. They are going through that process now.

As spoken

Pipeline Safety ActGovernment Orders

May 6th, 2015 / 5:05 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, Canadians have an expectation that the government will pass legislation that will protect our environment and hold companies accountable for polluting. Their responsibility for cleaning up that mess is a principle we have believed in for many years. It is good to see that we are moving forward on that issue. In that sense, the legislation in good. However, the member spent a great deal of time talking about the economics of the oil and gas industry. This is an issue I would like to ask her a question about.

One of the most significant projects is the Keystone pipeline. The Government of Canada has failed to demonstrate strong leadership on it. It is one of the reasons so many from within the industry are looking to Ottawa and asking what is happening and why Ottawa has not responded to the needs. It seems to me that the Government of Canada, in not doing that, has not only dropped the ball but has really hurt Canada's economy, and therefore the middle class and so forth.

I wonder if she would like to provide some comment on the importance of expanding the industry while protecting our environment. She seems to have forgotten about that issue.

As spoken

Pipeline Safety ActGovernment Orders

May 6th, 2015 / 5:10 p.m.

Conservative

Pat Perkins Conservative Whitby—Oshawa, ON

Mr. Speaker, certainly the Keystone issue is not a forgotten issue. As we know, there are many parties involved, and negotiations are required. Negotiations are under way and are ongoing, and I am sure we will be hearing an update on that matter.

As spoken

Pipeline Safety ActGovernment Orders

May 6th, 2015 / 5:10 p.m.

Conservative

Wladyslaw Lizon Conservative Mississauga East—Cooksville, ON

Mr. Speaker, I have a specific question about regulating pipelines that transport less than 250,000 barrels per day. Could she tell the House how those pipelines would be regulated?

As spoken

Pipeline Safety ActGovernment Orders

May 6th, 2015 / 5:10 p.m.

Conservative

Pat Perkins Conservative Whitby—Oshawa, ON

Mr. Speaker, all the regulated pipelines would be impacted by the proposed liability regime in the bill. The absolute liability for the operators of a major oil pipeline would be set out explicitly at $1 billion. The other classes are to be defined in the regulations, which would follow. We will not have the regulation-making authority to establish the other classes until the bill passes.

However, the government has begun its work to look at the regulatory aspect of how to establish the other classes. That is a normal process. It is anticipated that the classes would include oil pipelines transporting less than 250,000 barrels a day and those transporting natural gas and non-energy pipelines.

We are looking forward to seeing that come forward.

As spoken

Pipeline Safety ActGovernment Orders

May 6th, 2015 / 5:10 p.m.

Conservative

Ryan Leef Conservative Yukon, YT

Mr. Speaker, it is a pleasure to join the debate on Bill C-46. I would like to thank my hon. colleague, who spoke just before me, for being so generous in splitting her time with me today.

I am obviously pleased to be here because this speaks directly to our government's priorities: energy, security, economic growth and environmental protection. The pipeline safety act would deliver all three. It recognizes the importance of pipelines to transport the energy we need and use every single day in this vast country. Whether it is to fuel our cars, power our businesses or factories, or heat our homes, like the homes in Yukon, my home riding, pipelines play an essential role in moving our necessary energy around this country. It supports a significant role the oil and gas sectors play in our national economy.

We have heard the numbers many times in the House, but they are worth repeating. The energy sector, led by our abundant oil and gas resources, directly contributed almost 10% of Canada's economy in 2013. It also generated an average of $25 billion a year in federal and provincial revenues between 2008 and 2012. When we think about those numbers and the programs and services that the federal and provincial governments are able to deliver to their respective jurisdictions, be they social support, education, health, environmental initiatives or economic priorities, those numbers contribute greatly to allow each provincial and federal government to deliver for the priorities of Canadians.

Finally, the pipeline safety act reflects the importance we have placed on making pipelines safer. Under our government, energy security and economic growth will never come at the expense of environmental safety. That is why our comprehensive plan for responsible resource development makes clear that no resource development will be permitted unless projects are deemed to be safe, safe for Canadians and safe for the environment. Indeed, our government has proven that time and time again.

The pipeline safety act is a key component of this plan for responsibly developing our natural resources. As we know, Bill C-46 is based on three key pillars: incident prevention, preparedness and response, and liability and compensation.

There is widespread agreement that this legislation hits the mark on all three pieces. Indeed, a cross-section of witnesses offered expert testimony on the bill to the Standing Committee on Natural Resources, of which I am a member. There was general consensus that the legislation is needed and, indeed, a positive step.

After taking a closer look at some of the key provisions in the legislation, I hope Canadians will have a better understanding of how Bill C-46 would contribute to achieving all three priorities. We will continue to create and protect jobs and opportunities for Canadians from coast to coast to coast by encouraging our country's energy independence.

We will do so while maintaining and strengthening one of the most stringent and effective pipeline safety regimes in the world. In fact, each and every day Canadians drive, sleep and work over top of hundreds of thousands of kilometres of pipelines in our country.

As we heard in other debates and interventions from members in the House, Canada's pipeline safety record is tremendous, a 99.99% safety record. That is something we can certainly boast about. It is something that Canadians should have a great deal of pride in and it certainly warrants the measure of Canada having a world-class safety regime. What does that mean in respect of how other countries operate in the world, in terms of their safety and our legislative competence with this? Let me touch on a couple of those pieces.

The spill rate in Canada in comparison to other countries was 57% lower than in Europe and 60% lower than in the United States over an 11-year period. That is a pretty exceptional record. While the United States and the United Kingdom have similar legislation in place, the $1 billion minimum financial capacity, an absolute limited liability, is unique to this Canadian legislation.

Canada will also be unique in having a cost recovered financial backstop model that provides complete coverage for cleanup and damages.

I think everyone in the House would agree that prevention of any kind of accident or any kind of spill is the most important piece of our environmental protection regime. If something were to occur, with the $1 billion limited liability backstop and with penalties under the act, Canadians could be assured that breaches of any provision in this legislation would be taken seriously and that taxpayers would not be on the hook for the cleanup.

Exactly what kind of penalties would pipeline companies be subject to if they were to break the law? If we exceeded our ambition and our goals of prevention being the first and most important step and an accident were to occur, pipeline operators would be subject to the same laws that govern all industry activities in Canada, which means they would be liable without limit for incidents when they are at fault or negligent.

Second, under the National Energy Board, companies are subject to fines and imprisonment depending on the severity of the offence. Third, responsible resource development gave the NEB additional powers to implement administrative monetary penalties which enable the NEB to fine companies for contraventions of any regulations and orders. This is a new tool that would ensure smaller offences are punished.

The measures proposed today would enhance and further clarify all of these provisions. What are companies going to do to update any of the old pipelines? I know this question was posed to the previous speaker, but there are three principles that need to be recalled when this is taken under consideration.

We want to define our world-class safety systems. Prevention, of course, is integral to that piece of the plan. The legislation requires the use of best available technologies as well as the integration of aboriginal communities and businesses in pipeline safety, pipeline monitoring and operations.

All federally regulated pipelines would be impacted by these proposed measures regardless of whether they are operating, planned or under construction. Old, new or proposed plans would be subject to this new pipeline regime.

We have some questions that will mostly come around on what we are wanting to do to ensure why we are not requiring companies to create a pooled fund in advance of a spill. We are concerned about the worst case scenario. There is that old adage, hope for the best, prepare for the worst.

With our safety record in place of 99.99%, we still do have to be realistic in terms of what we can expect to see and reflect back on some past incidents to guide us in that direction. At the same time we must ensure that while we are balancing out the necessary protection for the environment and the communities in which these pipelines operate, we are realistic about allowing these companies to move ahead with moving Canada's much needed energy around this country.

From that point we can assure Canadians that any backstop, if it is assessed, will be fully recovered from industry to ensure that the taxpayers are protected. That is a fundamental piece. While Canadians expect, want and demand the strictest and safest pipeline regime, they also want to know that if there are any accidents, they as taxpayers are not responsible for cleaning it up.

We hold that firm and we have in many other pieces of legislation that we put forward. This is no exception. The polluter pay principle stands. The polluter pay principle is something Canadians want. The polluter pay principle is something Canadians expect and the polluter pay principle is something that this government is going to deliver as we move forward with our responsible resource development regime.

As spoken

Pipeline Safety ActGovernment Orders

May 6th, 2015 / 5:20 p.m.

NDP

Dany Morin NDP Chicoutimi—Le Fjord, QC

Mr. Speaker, as I mentioned, the NDP will support this bill. However, I have a comment and a question for my Conservative colleague.

Social licence, or public approval of the development of our natural resources, is just as important as authorization by a regulatory body. Why are the Conservatives refusing to do what it takes to obtain public support for pipeline projects in Canada? I think that this question will be asked across the country.

Translated

Pipeline Safety ActGovernment Orders

May 6th, 2015 / 5:20 p.m.

Conservative

Ryan Leef Conservative Yukon, YT

Mr. Speaker, I do not disagree that social licence is an important part of what we do in our responsible resource development regime.

It is important to understand that part of this legislation imbeds some of those very fundamental pieces. The polluter pays principle is very much based on what the public has told us they want, expect and demand, as I said in my intervention.

We have also imbedded in this legislation the requirements and the commitment to work with aboriginal and first nations communities, not only in proposed projects but also in terms of developing and utilizing best technologies as we move forward to ensure the continued integrity of a world-class safety regime.

That, of course, comes not just from subject-matter experts that deal with this but from community subject-matter experts who live, work and play in regions where pipelines operate safely every single day in this country.

As spoken

Pipeline Safety ActGovernment Orders

May 6th, 2015 / 5:25 p.m.

Liberal

Francis Scarpaleggia Liberal Lac-Saint-Louis, QC

Mr. Speaker, when the government amended the Navigable Waters Protection Act, it weakened the legislation and it also transferred responsibility for environmental assessments of energy projects to the National Energy Board.

We learned last week that the board considers that it does not have the expertise required to assess the risks associated with a pipeline accident that could pollute water. At the time, we were assured that the National Energy Board had this expertise. However, we now realize that the board must conduct public consultations and request further information from companies about their plans in the event of an accident.

I would like the member to elaborate on the transfer of this responsibility to the board, which cannot fully discharge it.

Translated

Pipeline Safety ActGovernment Orders

May 6th, 2015 / 5:25 p.m.

Conservative

Ryan Leef Conservative Yukon, YT

Mr. Speaker, I guess I am bit perplexed about why the member opposite would assume that the Navigable Waters Protection Act did anything but deal with navigation on waters, and where anybody assessing that piece of legislation, or who is tasked with the inspection, enforcement and regulation of the Navigable Waters Protection Act, would be in a position to deal with pipelines.

There is no more suitable board in this country than the National Energy Board to deal with national energy issues. It seems to be the case, though, every time, that the opposition, when we make streamlined, efficient and effective decisions around people who are designed and should be governing particular things, looks to other pieces of legislation to find excuses as to where, how and why these changes should not be made.

I imagine the member opposite would probably propose that if we made changes to the stuffed animals and toys protection act that that somehow would jeopardize the environment.

This does not. It only strengthens the environmental regime. We will continue on that track and Canadians know that.

As spoken

Pipeline Safety ActGovernment Orders

May 6th, 2015 / 5:25 p.m.

Saskatoon—Rosetown—Biggar Saskatchewan

Conservative

Kelly Block ConservativeParliamentary Secretary to the Minister of Natural Resources

Mr. Speaker, I want to thank my hon. colleague for the work that he does on the natural resources committee. He is a very active member. I appreciate what he brings to the table coming from Yukon.

This legislation builds on a safety record of 99.999%. How does this legislation relate to ensuring public confidence in pipelines?

As spoken

Pipeline Safety ActGovernment Orders

May 6th, 2015 / 5:25 p.m.

Conservative

Ryan Leef Conservative Yukon, YT

Mr. Speaker, as we maintain public confidence in this through the polluter pay principle, which is clearly important to all Canadian citizens, we are also introducing concrete measures to enhance pipeline safety under the pillars of prevention, preparedness and response, and liability and compensation.

Canadians can be assured that with those pillars in place in this legislation, our government will commit to doing everything we can to achieve those strong pillars in order to ensure we adhere to everything we have set out in responsible resource development.

As spoken

Pipeline Safety ActGovernment Orders

May 6th, 2015 / 5:25 p.m.

The Acting Speaker Bruce Stanton

Is the House ready for the question?

As spoken

Pipeline Safety ActGovernment Orders

May 6th, 2015 / 5:25 p.m.

Some hon. members

Question.

As spoken

Pipeline Safety ActGovernment Orders

May 6th, 2015 / 5:25 p.m.

The Acting Speaker Bruce Stanton

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

As spoken