Bill C-46 (Historical)

Pipeline Safety Act

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

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 release of oil, gas or any other commodity from a pipeline that they operate is the result of their fault or negligence;
(c) establishes the limit of liability without proof of fault or negligence at no less than one billion dollars for companies that operate pipelines that have the capacity to transport at least 250,000 barrels of oil per day and at an amount prescribed by regulation for companies that operate any other pipelines;
(d) requires that companies that operate pipelines maintain the financial resources necessary to pay the amount of the limit of liability that applies to them;
(e) authorizes the National Energy Board to order any company that operates a pipeline from which an unintended or uncontrolled release of oil, gas or any other commodity occurs to reimburse any government institution the costs it incurred in taking any action or measure in relation to that release;
(f) requires that companies that operate pipelines remain responsible for their abandoned pipelines;
(g) authorizes the National Energy Board to order companies that operate pipelines to maintain funds to pay for the abandonment of their pipelines or for their abandoned pipelines;
(h) allows the Governor in Council to authorize the National Energy Board to take, in certain circumstances, any action or measure that the National Energy Board considers necessary in relation to an unintended or uncontrolled release of oil, gas or any other commodity from a pipeline;
(i) allows the Governor in Council to establish, in certain circumstances, a pipeline claims tribunal whose purpose is to examine and adjudicate the claims for compensation for compensable damage caused by an unintended or uncontrolled release of oil, gas or any other commodity from a pipeline;
(j) authorizes, in certain circumstances, that funds may be paid out of the Consolidated Revenue Fund to pay the costs of taking the actions or measures that the National Energy Board considers necessary in relation to an unintended or uncontrolled release of oil, gas or any other commodity from a pipeline, to pay the costs related to establishing a pipeline claims tribunal and to pay any amount of compensation that such a tribunal awards; and
(k) authorizes the National Energy Board to recover those funds from the company that operates the pipeline from which the release occurred and from companies that operate pipelines that transport a commodity of the same class as the one that was released.

Pipeline Safety Act

[Murray Rankin, NDP, Victoria, BC]

Mr. Speaker, the fundamental point that I think was being made is the importance of the polluter pays principle as a recognized concept in environmental legislation. I believe the bill would go some distance to achieve that.

However, again, I want to say, as other Liberal members have said in first reading debate, that really there is a lot about discretion that needs to be nailed down here. The government may; the NEB may; and if they do not, so what?

That is what I find so disturbing about legislation like this. It kind of hoodwinks the Canadian people, because what if there is no budget given to do anything? Would the polluter pay then? I do not think so.

It is full of sound and fury, but I hope signifying something.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Mr. Speaker, I thank my colleague for his excellent speech.

I was wondering whether the member thinks, as I do, that social licence is also extremely important in efforts to carry out huge energy projects like this one.

We are talking about new rules associated with transporting natural resources and the dangers this involves, but I wonder whether the member could also talk about the importance of social licence for these projects and the fact that we also need to take that into account.

[Murray Rankin, NDP, Victoria, BC]

Mr. Speaker, I very much appreciate the thoughtful question by my colleague from Sherbrooke. Social licence is really the order of the day on pipelines, tankers, and the like. It is really critical that they achieve it. I really believe companies can achieve it if they follow some important principles set out in the bill, such as polluter pay and internalization of their costs, working with the National Energy Board.

As the Leader of the Opposition has put it so effectively, sometimes the Conservative government gives companies a poisoned chalice. They get these great regulations that they need not necessarily comply with, and then they cannot build their pipelines because no one, certainly in my part of the world, wants anything to do with ones like the Enbridge northern gateway pipeline. They do not have social licence because the government has tried to jam them through without any public involvement.

The House resumed consideration of the motion that Bill C-46, An Act to amend the National Energy Board Act and the Canada Oil and Gas Operations Act, be read the second time and referred to a committee.

[Peter Kent, Conservative, Thornhill, ON]

Mr. Speaker, I will be splitting my time with the member for Nipissing—Timiskaming.

I am delighted to speak today to the pipeline safety act. When it comes to energy supply, few countries can match Canada's enormous potential. We are the world's fifth-largest producer of oil, with the third-largest proven reserves; and we are the fifth-largest producer of natural gas, with natural gas resources estimated at up to 1,300 trillion cubic feet. Canada is indeed fortunate to have abundant oil and gas resources. However, as hon. members of the House know full well, to reach our full potential we need more than supply. We need the energy infrastructure necessary to reach new markets. Here is the problem in a nutshell.

While Canada's endowment of petroleum resources is immense, we have only one major export customer: the United States. In fact, nearly all of our oil and gas exports are to the United States. Meanwhile, here in Canada, production from the oil sands is forecast to continue to grow, apart from a temporary slowdown today, from about 1.9 million barrels per day in 2013 to more than 5 million barrels per day by 2035. These two factors—increasing Canadian production and declining American demand—mean that Canada must develop new markets and the infrastructure to reach them, including pipelines.

At the same time, global energy demand is projected to increase by 33% between 2011 and 2035. Massive new markets in Asia are fuelling new energy demands. Non-OECD countries are forecast to account for 93% of energy demand growth, with China and India alone consuming almost half of it. Canada can capably meet that need, as Canadian oil and gas production is expected to grow dramatically over the same period. However, again, without pipelines to move our products to tidewater to reach world markets, Canada's oil and gas will continue to be stranded, and the opportunity will be lost.

That is why it is critical for Canada to build new pipelines to the west, the south, and the east to open up new markets and ensure that Canada is getting top dollar for its energy resources. That is why pipeline safety is also so important.

We recognize that we cannot expand into foreign markets if we don't have the backing of the public. We understand that public safety and environmental protection are necessary conditions for energy development to proceed. Right now, despite what we hear from the other side of this House on a regular basis, Canada's pipelines are among the safest in the world. For example, between 2008 and 2013, 99.999% of oil transported on federally regulated pipelines arrived safely. In fact, the rate of spills on federally regulated pipelines in Canada was 60% lower than in both Europe and the United States over the past decade. Even given these impressive safety statistics, our government believes that it is not the time to be complacent, but rather it is the time for action. It is crucial to keep improving the technology and increasing our efforts to improve safety around pipelines.

We believe that expanding market access and protecting our environment can go hand in hand. Time and again, we have promised that no pipeline project will proceed unless it is safe for Canadians and safe for the environment. With this proposed legislation, we would build on our impressive safety record to make Canada's robust pipeline safety system even stronger.

Strengthening the safety of Canada's pipeline systems focuses on three key areas: prevention, preparedness and response, and liability and compensation.

When it comes to prevention, our goal is simple: to take action to reduce risks and prevent accidents from happening in the first place. This legislation would build on previous pipeline safety measures that increased the number of inspections and audits, and that gave the National Energy Board the authority to levy administrative monetary penalties.

For the first time, we will enshrine the polluter pays principle in law, so that polluters, not Canadian taxpayers, will be held financially responsible for the costs and damages they cause. Pipeline operators will be held responsible for incidents, irrespective of fault, and the National Energy Board will have the tools to take control of a response to an incident if a pipeline operator is unable or unwilling to do so. These costs will be recovered from industry to ensure that taxpayers are protected against any potential costs of cleanup.

We will also ensure that companies operating pipelines are responsible for them throughout their lifetime, from their construction until they are abandoned, including any related costs. To ensure full transparency, documents concerning pipeline safety will be available to the Canadian public.

We are also moving ahead with important measures that will enhance the participation of aboriginal peoples in the development and operation of pipeline safety systems. With the participation of aboriginal people and the commitment to world-class pipeline safety, Canada can harness the tremendous economic opportunities before us.

Ultimately, all of these measures are about the same thing: protecting Canadians and the environment. Emphasizing prevention, responding quickly in the event of an incident and making sure that companies, not Canadians, are liable for any costs, these measures are strengthening our pipeline safety system and making it world-class. This legislation will send a strong signal to the world that Canada is a safe and responsible supplier of energy resources, and that Canada is indeed open for business

Right now, the scale and pace of resources development in Canada remains truly remarkable. Hundreds of major natural resource projects are under construction or planned over the next ten years. This represents a total investment of as much as $675 billion. Over the next 25 years, responsible development of Canada's energy resources is expected to generate literally trillions of dollars in economic activity and hundreds of thousands of jobs.

Huge markets in the Asia-Pacific region and in Europe are ripe for business. We must not let this opportunity pass us by. The bottom line is that opening new markets for our energy products will support our government's top priority, which is creating jobs, growth and long-term prosperity for Canadians.

[John McKay, Liberal, Scarborough—Guildwood, ON]

Mr. Speaker, I largely agree with much of what the hon. member said, and I know he is shocked.

I have in my hand the parliamentary calendar. There are basically 12 sitting weeks, subject to the whims of the Prime Minister to call an election. Things do not move at lightning speed around here at the best of times and the chances of getting this into committee, out of committee and back to the House for debate, along with the budget, which may or may not be presented in April, and the rest of the stuff that goes on to get a bill out of here and into the Senate seems, to me, to be a lot of parliamentary time.

Does the hon. member think the bill will receive royal assent?

[Peter Kent, Conservative, Thornhill, ON]

Mr. Speaker, I thank my hon. colleague for those tempered supportive remarks.

For the legislative process, we depend on the good will and consideration of all parties in the House. As this bill goes to committee, we would hope we would not see the obstructive tactics that the NDP have taken on other very important legislation before the House.

As with all of our responsible resource development legislation over the life of this Parliament, we can count on all parties opposite to support these very significant improvements in the area of pipeline safety. After all, I do not think there is an individual in the House who would disagree with the fact that the transportation of petroleum products by pipeline is by far and away the safest way to transport this immensely valuable product.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, it goes without saying just how important pipelines, and the security and safety of them, are for all Canadians. We are very much dependent on them in getting our oil and natural gas to market, not only in Canada but outside of Canada. We are talking about billions of dollars.

My question for the member is with regard to the importance of having a social contract with the different stakeholders, something which the Prime Minister and his government have been unable to achieve. It is one of the reasons why we do not have the Keystone pipeline and other issues that are critically important to the industry.

Would the member provide some comment on why the government has been unable to assist the industry in further developing the need for pipeline expansion?

[Peter Kent, Conservative, Thornhill, ON]

Mr. Speaker, I know my colleague for Winnipeg North knows the answer.

As the Prime Minister and the Minister of Natural Resources have said any number of times in recent weeks, and months for that matter, the problem the Keystone pipeline specifically faces is not with any disagreement by the American people or the American Congress with the concept. It is a disagreement between the President and the American people. Congress has demonstrated its support in very positive and supportive legislative action. The State Department has repeatedly assessed the Keystone pipeline as having minimal negative environmental impact and very tremendous positive economic impact. I think it is only a matter of time until it is approved.

In the meantime, we will continue to consult with all stakeholders, certainly in our country and abroad, to further the broadening of Canada's delivery of this immensely valuable resource to world markets.

[Jay Aspin, Conservative, Nipissing—Timiskaming, ON]

Mr. Speaker, I welcome the opportunity to further acquaint my hon. colleagues with Bill C-46, the pipeline safety act.

Bill C-46 represents another important step in realizing our government's commitment to assuring Canadians that our country's abundant natural resources are developed and transported in a safe and responsible manner. This commitment is the foundation of our plan for responsible resource development. No major project will proceed unless rigorous environmental and regulatory reviews have demonstrated that it is safe for Canadians and safe for our environment. This is essential if we are to continue to enjoy the benefits these industries have provided to generations of Canadians, and the benefits are many.

Given Canada's wealth of natural resources, experience and expertise of the industry in our country, we can be confident that the long-term prospects for natural resources development are there and will benefit us all as Canadians. It is a fact that natural resource development offers particular opportunity for aboriginal people in Canada.

Many of the existing or proposed energy and other natural resource and infrastructure projects are located near aboriginal communities. We have a duty to consult these communities and we will work to ensure they are fully engaged throughout the life cycle of resource development projects. It is a pillar of our plan for responsible resource development to pursue development in collaboration with aboriginal people in a way that protects the local environment, that respects aboriginal and treaty rights and that enables aboriginal people to participate in the economic opportunities that resource development can provide, opportunities that contribute to stronger, healthier and more self-sufficient communities.

We are taking concrete action to fulfill this commitment to consult and engage aboriginal communities in a truly meaningful way, including in the safety of existing pipelines and the potential development of new pipeline infrastructure. The pipeline safety act would provide for a series of new measures that would provide Canadians with the assurance of a truly world-class pipeline safety regime, strengthening incident prevention, preparedness and response, and liability and compensation.

Prevention, of course, is the first priority and the goal will always be zero incidents.

Bill C-46 would give the National Energy Board the ability to guide pipeline builders and operators in the use of the best available technologies in federally regulated pipeline projects, from materials and construction methods to emergency response techniques. To assure preparedness and effective response to incidents, pipeline companies would be required to show they would have ready access to a minimum amount of cash or cash equivalent so there would be no delays.

In the event a company is not able to mount an immediate, effective response, Bill C-46 would provide the National Energy Board with the authority to step in and lead the response. Where liability is concerned, Bill C-46 would impose absolute liability in the amount of $1 billion on the pipeline company. In other words, regardless of who or what caused an incident, the company would be liable for up to $1 billion in damages, period.

Of course, there would be no limit on liability should the company be found at fault or it were proven that it had acted negligently and caused the incident. The National Energy Board would have the authority to order the company to reimburse in full, even above the $1 billion mark in absolute liability, any and all cleanup costs incurred by any federal, provincial, municipal or aboriginal government body, or any person. As with the energy safety and security act, which is currently in the Senate, the pipeline safety act would include a firm statement of the principle of polluter pays. Taxpayers would not be left holding the bag. Companies would bear the full cost of cleanup and compensation.

I want to emphasize that our government recognizes and is supporting the important role aboriginal communities can play in ensuring pipeline safety, and we continue to move forward with new initiatives to ensure aboriginal communities are fully involved.

There is another way the government is responding to the work of the Prime Minister's special representative on west coast energy infrastructure, Mr. Douglas Eyford. Based on Mr. Eyford's report, Forging Partnerships, Building Relationships, we are proposing the development of a strategy to bring together aboriginal communities, the Minister of Natural Resources, and project proponents in establishing objectives and actions to enhance aboriginal participation in pipeline safety.

The goal is to integrate aboriginal communities into the overall process of pipeline safety. The government would work with industry, provinces and territories, community colleges, and aboriginal communities themselves to develop and promote training on pipeline monitoring and emergency response.

This collaborative approach would also focus on developing industry guidelines for community involvement in the preparation of emergency response plans, including who should be engaged and how they should be engaged, as well as the specific content of response plans.

A further objective is identification of employment and business opportunities that aboriginal engagement in pipeline safety may offer to all communities. Pipeline monitoring could be an example.

These new initiatives would build on earlier actions our government has taken to advance reconciliation through constructive engagement and collaboration. In May 2014, for example, our government announced a series of measures to strengthen the engagement with first nations where resource development is concerned. These included establishing the Major Projects Management Office–West, a single window for the Government of Canada to coordinate activities on energy infrastructure development with British Columbia first nations and industry in British Columbia and Alberta.

In July 2014, in response to other key recommendations in the Eyford report, we initiated action to promote reconciliation in advance of and outside the formal treaty process. These measures range from engaging on a new version of the guidelines on consultation for federal officials to new guidance for industry, including an overall public statement to clarify roles and responsibilities.

We have committed to entering into more consultation protocols with aboriginal groups, which would support more efficient consultations in key priority areas such as resource development. We are also acting to ensure aboriginal communities have the resources they need to participate in consultations in a meaningful way. In economic action plan 2014, for example, we provided $13.6 million over two years for that very purpose.

With the pipeline safety act, our government is again providing a commitment to respect the interests of aboriginal people. I encourage all members of this House to support Bill C-46.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, I thank my colleague for his speech on this issue.

However, I must admit that one part of his speech bothered me, and that was when he talked about the fact that Canadian taxpayers would not be left holding the bag in the event of an accidental spill caused by a break in a pipeline. That is what the member claimed. However, the reality is that this liability is limited to $1 billion if it is proven that there was no fault or negligence with respect to the spill. In the case of a major spill in an urban area where the damage surpasses $1 billion, taxpayers will be on the hook for costs over and above that liability limit.

Why does the member claim that, in all cases, Canadians will not have to pay a cent if ever there is a spill?

[Jay Aspin, Conservative, Nipissing—Timiskaming, ON]

Mr. Speaker, just to put this into perspective, I would like to give the hon. member some background as to why the figure of $1 billion was chosen.

The $1 billion figure was chosen based on an analysis of historical examples demonstrating this level of absolute liability, and the financial capacity provides this world-class coverage. Major pipeline spills in North America have resulted in clean-up costs in the range of $20 million to $50 million. That is well below $1 billion. That is the average cost. Therefore, it is needless to say that most of these spills are well below the $1 billion, which raises the bar very high to ensure that taxpayers will not carry the liability for these spills.

[John McKay, Liberal, Scarborough—Guildwood, ON]

Mr. Speaker, also on the billion-dollar question, which is the billion-dollar question here, does the member know offhand, or do his background notes tell us, how much the Enbridge Michigan spill was? I doubt it is within the range of the $20 million to $50 million that he suggested.

Also, is the member concerned about spills in certain areas? For example, there are pipelines that run through the heart of downtown Toronto. A spill in the heart of downtown Toronto would be a fairly significant spill and would be far more significant financially than a spill in some other parts of Canada, such as remote parts, so in some respects the average spill does not mean too much. It is the catastrophic spills that do.

I would be interested in the member's thoughts with respect to the catastrophic spill in Michigan, as well as a potential catastrophic spill in major cities such as Toronto, Vancouver, et cetera.

[Jay Aspin, Conservative, Nipissing—Timiskaming, ON]

Mr. Speaker, as I mentioned, in our country we have world-class pipeline facilities. I want to give the hon. member an inkling of what that means. Between 2000 and 2011, federally regulated pipelines in this country had a safety record of 99.999%. The rate of spills in Canada was 57% lower than in Europe and 60% lower than in the United States for the 2000 to 2011 decade period.

As a government, we cannot designate or legislate laws that would account for an absurd occurrence. We live our lives as best we can and we account for as much as we can, but we do not plan on the absurd occurrence. That is what we have to do in this case.

[John McKay, Liberal, Scarborough—Guildwood, ON]

Mr. Speaker, to pick up on what the hon. member just said, we actually do have to account for the absurd catastrophic experience, which is why this kind of money has to be provided.

I was disappointed that the member was not able to respond with respect to the Michigan spill, because it was a huge hit on Enbridge's bottom line. I do not know what the number was, but I would have hoped that he would have been able to share that number with the House so that we could talk about these “absurd” spills, which is what the subject of the legislation before us is all about.

The Liberal Party largely supports the bill, so my remarks are offered in that light. It is a necessary piece of legislation. We might think it is a bit incremental, but nevertheless a step in the right direction is a step in the direction. There is no gainsaying that.

My first remarks have to do with the $1 billion liability insurance. As it has been previously explained in the House, this is no-fault liability insurance, meaning that no matter how the spill occurs, there would be insurance to cover it. The reasonable expectation is that it is simply a cost of doing business, whatever the premiums are. Since none of these companies is in the business of trying to lose money, I daresay that the ultimate end user of the product will pay for the cost of this insurance one way or another.

The late and great C.D. Howe was a cabinet minister in the Mackenzie King government and in the St. Laurent government. This was in the era when cabinet ministers were serious people. They did not need to refer to talking points each and every day in order to find out what the prime minister of the day thought about any subject. C.D. Howe was a legend, and as he was presenting a budget towards the end of World War II, which was a budget with an appropriation of about $1.3 billion for the war effort—a pretty significant sum of money at the end of World War II—one of the opposition members asked him about a million-dollar item.

Mr. Howe apparently replied, “Well, in the context of a $1.3 billion appropriation, $1 million is not a significant sum of money.” Out of that came the political lexicon that has been attributed to C.D. Howe, namely “What's a million?” Conservatives being Conservatives, they were never given to accuracy or truthfulness back then, so despite the fact that C.D. Howe did not actually say that, it still became part of the lexicon.

Conservatives then and Conservatives now are basically the same entity as far as truthfulness and accuracy might be concerned. I might appropriate that political lexicon and say “What's a billion?” If “What's a million” at the end of World War II was a significant sum of money in the minds of many, then “What's a billion?” in 2015, for many people, would still be considered a significant sum of money.

A liability of $1 billion in certain areas of the country seems to me to be perfectly adequate. In fact, I would say that in maybe 95% of the areas where pipelines are located, $1 billion might very well be a perfectly adequate sum of money. However, a pipeline running through downtown Toronto—as does Line 9, which runs through through Finch and Yonge, right beside a subway station—poses a significant risk.

Similarly, pipelines that run over watercourses that provide drinking water for millions of people pose a pretty significant risk. That is again the case in Toronto. A spill there would be of far greater significance than, say, a spill in a remote region in northern Ontario, possibly in Haliburton, although it would be a shock to have a spill in Haliburton. In sum, the risk from a spill in downtown Toronto, downtown Montreal, downtown Halifax, or downtown Vancouver is of a far greater magnitude than the risk in the more remote regions of the country.

The other issue is the content of the pipeline. One of the real reasons for the problems that occurred in Michigan with Enbridge was that the content was diluted bitumen, dilbit as it is known. The way I understand it is that when it hits water, it simply sinks to the bottom. That makes it very difficult to clean up, because one is then cleaning up something that is below the surface of the water, as opposed to, say, a gas line spill where the spill is on the surface of the water and because the spill largely evaporates before it does any serious environmental damage. Thus the contents of the pipelines vary and carry a significant sum of our gross domestic product with them. The contents of the pipelines are as relevant as the location of the spills.

I also have some concerns about the unlimited liability aspect. The first billion dollars of liability is no fault, and that is covered by an insurance policy. After that, in theory, either an energy company acquires further insurance at some presumably significant cost or it does not carry that insurance, and it in turn in effect pledges its own value as the assurity or its ability to clean up that risk beyond one billion dollars. My colleague across the way thought that that might be an absurd idea, but Enbridge in particular does not think it is such an absurd idea.

I want to point out to those who might be interested that pipelines are creatures of the stock market. Some days pipeline companies are worth multiple billions of dollars, and at other times, as multiple billions of dollars melt rather quickly, they become worth multiple millions of dollars, and there is nothing like a spill to shed value on a stock market.

I recommend, Mr. Speaker, that you not be in the doorway when an energy company spill occurs, because you will be crushed by the run of stockholders out the door because, frankly, they do not want to stand around and pick up the tab for anything that is potentially beyond one billion dollars.

The concept of unlimited liability beyond one billion dollars in theory sounds pretty good, but in practice may actually be quite a challenge, because the very fact of a spill or other catastrophic market events such as what we have witnessed in the last few months literally melt billions of dollars off the bottom line of a company.

These are issues that I think and hope a committee will take into consideration and get some expert advice on so that members know what they are voting on.

My colleague from Halifax West expressed a concern about the discretion allocated to the National Energy Board and cabinet to proclaim and enforce more robust regulations. I share his concern. I know the government wishes us to think, and I would like to think myself, that inspections will increase by 50%. I hope that is true. I am also hopeful that safety audits will double. I have no reason to doubt the good faith of the government.

However, I also want to be assured, and I hope the minister and the Conservatives members on the committee will be able to assure other members of the committee who might be a touch more skeptical, that the cabinet and the NEB would engage the robust powers they would be given under the legislation and that it would not simply be in appearance rather than anything else.

We are talking about a very serious amount of money on an annual basis. Pipelines ship roughly $100 billion of product on an annual basis. I will put that into perspective. That is just slightly below the budget at Queen's Park, the budget of the second biggest government in Canada. That is a significant sum of money.

I know that the members and the minister opposite have repeatedly said that 99 point whatever per cent is shipped safely. I am prepared to believe that. However, it is a little like saying that 99% of the time my brakes work. It is kind an absurd statistic, because I am not expecting perfection. Short of some other place, there is no perfection in this world, and so I do not anticipate perfection. However, I do think that every possible measure needs to be taken to assure Canadians' safety, not only the safety of their air and their water, but also of the food chain, et cetera.

I would say that, ultimately, Bill C-46 is a move to restore public confidence and, in that respect, it is a tiny step in the right direction.

Regrettably, Canadians have come to learn not to trust the current government on any point of intersection between the economy and the environment. Unfortunately, where there is a point of conflict between the environment and the economy, the environment loses. This is a bill that would try to restore that confidence, but, regrettably, the current government has established a reputation that it is not serious about environment issues and, as I say, whenever the economy and the environment come into conflict, it is the environment that loses.

Unfortunately, we have seen in this past week a consequence of its not being serious about the environment and the consequence of its not being serious about damage to our economic best interest.

When President Obama vetoed the Keystone XL pipeline, he did so for a good reason. He does not think the current government is serious about the environment. His perception, like the perception of many, is that the current government is not serious. The most obvious example is the ever-inclining trend in GHG emissions.

The charts put out by the government itself and audited by the Commissioner of the Environment show that in 2020 we will have historically high emissions of 720 megatonnes. The goal that was set by the government after Kyoto was 607 megatonnes.

There is, I know, a fantasy life over across the way that we are on track to meeting our emissions targets, and there may actually be someone in this country outside the Conservative caucus who actually believes that. However, the simple facts of the government's own charts, as audited by the Auditor General, show that there are 113 megatonnes that need to be made up. There is no chance that the Prime Minister would meet his own watered-down Copenhagen targets.

As I said, President Obama has noticed, many members of Congress have noticed, many of the American public have noticed, NGOs have noticed, the world has noticed, the Europeans have noticed and, as a consequence, we have established this reputation for not being serious about the environment. The consequence of having established that reputation has been a serious hit to our own economy.

Just this week in the main estimates there were major cuts to sustainable development technology, $25 million; the sustainable development technology fund, another $6.5 million; major cuts to species at risk, $12.5 million; major cuts to meteorological services, $5 million; cuts to project management, $2.3 million, et cetera. Moreover, a 44% cut to the Canadian Environmental Assessment Agency was jammed into an omnibus bill. Environment Canada's budget has gone from $978 million two years ago to $961 million for the fiscal year ending March 2016, a difference of $17 million. It is not as if Environment Canada has less work to do; it actually has more work to do with fewer resources.

President Obama could be forgiven if he expressed a bit of skepticism about Canada and the current government's commitment to environmental issues, particularly greenhouse gas emissions. As I said, NGOs have noticed, Canadians have noticed, other Americans have noticed, and Europeans have noticed. Therefore, the credibility gap is quite significant; hence, the reason for this bill being on the table today. This is a tiny incremental step to regain some of that credibility. The government is, in effect, digging itself out from its own credibility hole.

It is hard to do that when the government runs around saying that the people who protest pipelines are eco-terrorists. I respectfully submit that that pretty well killed the chances of ever obtaining a reasoned decision on the northern gateway pipeline. That has affected our economic interests. The absence of credibility in the government has made Kinder Morgan a much more difficult pipeline to obtain. It has left the TransCanada east pipeline essentially orphaned in the hope that somehow or another something will happen for that pipeline to go through. Keystone XL, at least for the foreseeable future, has no life in it.

When we lose the credibility in the larger marketplace, we lose our social licence. If we lose our social licence, we will not obtain the pipelines that we think we need. When we lose that, we therefore lose our economic ability to generate revenue and GDP, and that has very serious economic consequences. This faux fight between the environment and the economy is just simply that: a faux fight.

I hope that Bill C-46 will get a good airing in committee. I hope there will be clarification of the audit and inspection powers of the NEB. I hope there will be a commitment coming out of that. I hope there will be a mechanism for ensuring that pipeline companies remain responsible for their abandoned pipelines. There are a number of things that could potentially come out of this, such as requiring a portion of each company's financial resources to be readily accessible, or providing the authority to take control of incidents. All of these things could come out of this.

I want to make note in my closing comments that I can hope, but I do not expect. I can see that we have 12 weeks left on the parliamentary calendar. To get this bill from here to royal assent in 12 weeks is mostly hope, but I think it will end up as a talking point for the government, that we had the best of intentions, but Bill C-46 died on the order paper.