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

[François Choquette, NDP, Drummond, QC]

Mr. Speaker, I would first like to congratulate my colleague from Skeena—Bulkley Valley on his excellent speech. He clearly set out the premise of this debate. He clearly explained why we have difficulty trusting the Conservative government and believing in what it does.

However, Bill C-46, An Act to amend the National Energy Board Act and the Canada Oil and Gas Operations Act, is obviously a step in the right direction. The NDP has been asking the Conservatives to abide by the polluter pays principle for a long time. We believe that it is a basic principle of sustainable development. Of course, we will support this bill, but we will be proposing some amendments in committee.

In short, the change that the bill makes is to seek absolute liability for all pipeline projects regulated by the National Energy Board when the company is at fault. We support this excellent measure.

However, the maximum liability is $1 billion, which is much better than the few tens of thousands of dollars that it was before. However, $1 billion is still not very much when it comes to a big oil spill and all of the consequences that has. Nevertheless, it is a step in the right direction. We are talking about liability of $1 billion without proof of fault or negligence. In such a case, the problem is that Canadians are the ones who will have to pay. People in Drummond and everywhere else in Canada who pay their taxes will have to pay for the problems caused by companies and the bad job that the Conservatives did. Why am I talking about how the Conservatives did a bad job? My other colleagues mentioned it. It is not enough to make a company pay when there are spills and leaks. We also have to prevent spills from happening. The Conservative government is very weak in that regard. That is a serious problem, which they made worse in 2012, when they amended the Canadian Environmental Assessment Act.

We are all well aware of this change to the Canadian Environmental Assessment Act. Participation in consultations has been severely restricted. Now people can participate in consultations only if they are directly affected by a pipeline project. Many people in Quebec are upset about that because they were expecting to be able to participate in the consultations on TransCanada's energy east pipeline proposal. Unfortunately, it is very hard to get in because the Environmental Assessment Act, which was amended in 2012, severely restricts people's access. There is also another problem I have to raise. Right now, the National Energy Board is starting to ask people to register for consultations even though the final route is unknown. People have to sign up without knowing whether the pipeline will go through their area or not. This is utterly ridiculous. Quebeckers, environmental groups and citizen groups have demanded that the National Energy Board's hearings be suspended until the pipeline's exact route is known. Without that information, how can people register and how can the assessment process involving individuals and organizations be started?

This shows how Bill C-46 is heading in the right direction. However, we need environmental bills that will enable us to prevent disasters rather than clean them up after the fact. That would be much better.

We know that the energy east pipeline will cross dozens of rivers and bodies of water as well as the St. Lawrence. These are strategic places that municipalities draw their water from to treat for drinking water.

We need to be careful and focus on prevention. A report from an RCM in the region that will be affected pointed out flaws in the TransCanada project. We expect much more from the government. It is not enough to repair the damage afterward. We need to focus on prevention. That is very important.

In 2014, the Commissioner of the Environment released a report pointing out the problems with the reform of the Canadian Environmental Assessment Act. For example, she mentioned that the criteria are unclear, which explains why some projects are subject to an assessment while others are not. She also indicated that it is very difficult for the public to participate in these consultations. If the public cannot be heard and listened to, that leads to a social licence problem. That is the problem with many of the projects on the table right now that could be good for our economy. There is a lack of information and transparency.

Ottawa commissioned a report on the aquatic environment in 2013. We were not given access to that report until a group of environmentalists submitted an access to information request. How can we trust a government that hides a report about the oil sands and the impact they will have on the aquatic environment for two years? That is unbelievable. The report indicates that there is a serious lack of information on the impact of an oil spill on the aquatic environment. There is a lack of information on how we could clean up the oil that spilled into the St. Lawrence River, for example. This report shows the lack of competence of the Conservatives, who do not take the importance of preventing accidents seriously. Introducing this bill, which of course is a step in the right direction, will not be enough if a spill occurs.

Oil spills have happened in the past and, unfortunately, will continue to happen. We must be ready to prevent them insofar as possible and to take quick action when one occurs. We need only think of the ExxonMobil pipeline spill in Arkansas in 2013. In 2010, there was the notorious Enbridge oil spill in the Kalamazoo River, where four million litres of oil were spilled in 14 hours. The cleanup of this environmental disaster is ongoing. So far, it has cost $1 billion, which is just the start. That is why I am saying that the $1 billion limit is not enough when oil companies are not directly responsible.

In conclusion, this bill is a step in the right direction. The NDP has been asking for a long time that the polluter pays principle be applied and that the companies be responsible for safety. However, we have a major problem with respect to preventing oil spills. I mentioned it in my speech. That is why we are asking for a clear long-term vision for sustainable development. The NDP has the strongest vision. We do not pit the economy against the environment; they are compatible. If we do it right, the economy and the environment will be the most profitable sectors. They create the most jobs and will help us improve the Canadian economy.

The NDP plan is to have a good economy based on sustainable development.

[Bernard Trottier, Conservative, Parliamentary Secretary to the Minister of Foreign Affairs and for La Francophonie]

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

We have been listening to this debate on the pipeline safety bill for a few hours now, and we have heard all kinds of crazy plans to completely reorganize Canada's oil industry. People have talked about various ideas for oil refineries. That has nothing to do with the issue at hand.

Pipeline safety is absolutely essential to the Canadian economy. The sector does not account for the entire Canadian economy, but it is a big part of it.

I did not hear my colleague say where he stands on this bill in his speech. If he does not support it, it is a little hypocritical of him to criticize the Conservative's management record for this sector. Since this is an asset to the Canadian economy, we need a distribution system and safe pipelines. That is why this is a good bill.

Will the member support it?

[François Choquette, NDP, Drummond, QC]

Mr. Speaker, I want to thank my colleague from Etobicoke—Lakeshore for his comments.

Indeed, this bill is a step in the right direction and we will support it. We will propose some minor amendments in committee, but those are details.

Would my colleague agree that it is important to prevent spills, like in Kalamazoo, for instance? That is the weakness of the Conservative government. They amended the Fisheries Act and the Canadian Environmental Assessment Act to limit not only public participation, but also environmental assessments.

I want my colleague to be honest, because the Conservatives have done nothing to improve environmental legislation. However, that is the NDP's plan. We want to harmonize the economy and the environment, the principles of sustainable development. That is what we believe in and what we will do in 2015.

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

Mr. Speaker, I thank my colleague for his speech. I quite enjoy working with him on the environment committee. I wish we would actually accomplish something at the environment committee, but it is what it is, unfortunately. Members might be interested to know that the environment committee is now engaged in a study on hunting and trapping. Of all the issues the environment committee could be studying, such as climate change, fracking, or whatever, hunting and trapping is the one that has been chosen. It is of critical interest to us all.

I am pleased to hear that the NDP will be supporting the bill. I would think it should be at committee sooner rather than later, but I am also, as I outlined earlier, a bit concerned about the parliamentary schedule. I know that there is a lot of make-work stuff going at other committees, but this actually could be a real piece of work.

Does he think there is a real chance that, with what is left, this will actually get to royal assent?

[François Choquette, NDP, Drummond, QC]

Mr. Speaker, indeed, I agree with my colleague. This bill is long overdue, when it should have been a priority.

As we have been saying from the beginning of the debate and as I just said in my speech, since 2011, instead of introducing such a bill on the polluter pays principle, the government has been undermining environmental assessments and environmental protections.

Earlier I talked about how the government amended the Fisheries Act and the Canadian Environmental Assessment Act. As my colleague mentioned, I am a member of the Standing Committee on Environment and Sustainable Development, where we have seen some terrible amendments made to that act.

There is also the issue of social licence. The public and organizations need to be consulted so they can share their opinions, tell us about their science and have their say. Those kinds of consultations have been very limited. Like my colleague, I am very concerned about what the Conservative government plans to do with this bill.

[Blake Richards, Conservative, Wild Rose, AB]

Mr. Speaker, I will first say that I will be sharing my time with my neighbouring colleague, my good friend from Macleod.

It is a pleasure to rise today in support of our government's pipeline safety act. As all hon. members know, Canada's natural resource industries play a vital role in supporting the quality of life we enjoy in this country. In my province and all provinces across this country, we owe our quality of life and the strength of our economy to the important natural resource industries.

Taken together, these industries actually account for more than 13% of our gross domestic product and more than one half of our merchandise exports. When we include the supply chain that provides goods and services to the resource sectors, these industries actually account for almost one-fifth of all economic activity in this country, almost 20% of the economic activity in this country. They create and sustain jobs from coast to coast to coast and in every region of every province in this country.

Directly and indirectly, the jobs of some 1.8 million Canadians depend on our natural resource sectors, and our natural wealth continues to be developed to create opportunities for Canadians. There are hundreds of major natural resource projects under construction or planned over the next 10 years, representing as much as $675 billion worth of investment.

Canada's energy sector is a key part of this. It contributes $175 billion annually to our economy and generates more than $25 billion a year in federal and provincial revenues. While the NDP would like to ignore this fact, these are the same revenues that help to pay for social programs like health care, education, and infrastructure. However, for Canadians to benefit fully from the potential of our energy sector, it requires world-class transportation and infrastructure, including pipelines, to get our energy products to market.

Fortunately, building and operating safe pipelines has been a Canadian tradition for decades. Canadians have the experience and the know-how to move more than three million barrels of oil across our country every single day. As we have heard, 99.999% of the oil and products transported through federally regulated pipelines in Canada have arrived safely. That is why I can stand here and proudly claim that Canada already has an extremely impressive environmental record with regard to pipelines. Indeed, few sectors can boast such an outstanding safety record.

One of the characteristics of this strong, world-class safety regime is that it continually evolves and improves. It is a safety record that is enhanced with every technological advancement and innovation and with every regulatory improvement, and that is the way it should be.

As we look ahead to the many major resource projects still on Canada's horizon, our plan for responsible resource development is more important than ever, because it is focused on getting things right for Canadians, for our environment, and for our economy.

Under our plan, we are focused on four key objectives: first, making the regulatory review process for major projects more predictable and more timely; second, reducing duplication; third, strengthening protection for the environment in marine transportation, offshore development, and pipeline safety; and fourth, enhancing engagement with aboriginal communities in every aspect of resource development.

The pipeline safety act is part of this comprehensive approach. The legislation would build on our government's plan for responsible resource development. Bill C-46, the pipeline safety act, would further strengthen our robust pipeline safety system around the pillars of incident prevention, preparedness and response, and liability and compensation. It features concrete measures to improve our pipeline safety record and to ensure that it remains truly world class. That is why it focuses on prevention, preparedness, and response as well as on liability and compensation.

It offers real action to strengthen pipeline safety, including by modernizing the National Energy Board Act.

Of course, prevention begins with the design and construction of pipelines. In additional to our new legislation, the government is seeking guidance from the National Energy Board on the use of best available technologies in pipeline projects. This includes the materials, the construction methods, and the emergency response techniques.

The legislation would clarify the rules and responsibilities for pipeline operators, including measures to prevent pipeline incidents, to increase safety for Canadians, and to better protect the environment. That is in addition to new regulations that recently came into force and that provide the National Energy Board with the power to directly administer tough new penalties, penalties that will address contraventions quickly so that larger issues do not arise in the future.

Concerning matters of preparedness and response, our proposed changes would ensure that companies know exactly what they are liable for. They would need to demonstrate their ability to meet minimum financial requirements. For example, companies operating major oil pipelines would now be required to demonstrate that they have $1 billion in financial resources.

With regard to liability and compensation, the legislation would enshrine the polluter pays principle in law. This would ensure that Canadian taxpayers will not foot the bill in the unlikely event of a major oil spill. The pipeline safety act would also protect Canadians by providing a financial guarantee, or backstop, to address damages from a major spill. It would authorize the National Energy Board to recover cleanup costs from pipeline operators. We are also taking steps to ensure that pipeline operators are responsible for any potential costs or damages when their pipelines are no longer in use or have been abandoned. No other country in the world requires a $1-billion guarantee from companies operating major oil pipelines.

On top of these improvements, we will continue to work with aboriginal communities and with industry to enhance the participation of aboriginal peoples in all aspects of pipeline operations, from planning and monitoring to responding to incidents. This will ensure that aboriginal peoples participate fully in related employment and business opportunities.

With the passage of this legislation, Canada's pipeline safety system would be truly world class. Members may ask what that means exactly. We define world class as being equal among our peer nations, countries like the United States, the United Kingdom, Australia, and Norway. Also, in many cases, Canada would be world leading. No other country in the world has absolute liability so that industry, and not Canadian taxpayers, would be held financially responsible, even before fault or negligence were proven.

Today Canada's regulatory and safety regime for pipelines is among the best in the world. However, when it comes to protecting Canadians and protecting our environment, there is no room for complacency. Pipelines are crucial to the safe transportation of oil and gas across our country and to markets beyond our borders.

With this legislation, we would make existing and new pipelines in Canada safer than ever before. It would ensure that Canada keeps setting the bar when it comes to the safe transport of our energy products. That is why I want to urge all hon. members to support this very important piece of legislation.

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

Mr. Speaker, the government members have been repeating the 99.999% figure, and my first analogy is that I hope my brakes are 100% rather than 99%, because the 1% when I actually need them, I really will need them.

The second point is that if in fact pipelines are as safe as he says they are, 99.999%, then really, the bill is a bit unnecessary. It is a risk where there is no risk at all. How is it, therefore, that we need a bill to insure that 0.0001% of risk? Were I an insurance company I would be more than happy to charge a premium for a risk that was of that order of magnitude.

I cannot quite square his argument. Either the bill is necessary, which I think it is, or the risk is higher than whatever is left over after 99.999%.

[Blake Richards, Conservative, Wild Rose, AB]

Mr. Speaker, I am left with two thoughts after listening to the member's question.

Here is the first. I have listened to him today throughout the debate, both to his questions and his comments. I suppose it is typically Liberal, so I should not be surprised, but there is such inconsistency in the position I am hearing. First I heard some comments from the hon. member about how this is too little too late. Then it was why do we really need it. Then it was that we should have done it sooner. He just cannot seem to come up with a position that is coherent. I guess that is very typical of a Liberal, so I should not be too surprised.

Having said that, what I can tell members is that our government's position is very clear. Yes, Conservatives believe that our pipeline safety record in Canada has been quite strong. As I said, 99.999% of the products moving through are arriving safely. However, we can always strive to do better. That is important.

We always want to make sure that we are doing everything we can to help protect our environment, our economy, and the interests of Canadians. That is what we are doing, and I hope we will have support for it, despite all the inconsistencies on the part of the Liberals.

[Anne Minh-Thu Quach, NDP, Beauharnois—Salaberry, QC]

Mr. Speaker, I would like my hon. colleague across the way to explain two things.

First, why is the Conservative government imposing a $1 billion cap on the polluter pays principle? Why is the polluter pays principle not unlimited?

Second, this bill is a step in the right direction, but it was introduced after the Conservatives dropped all environmental assessments and amended the Fisheries Act. The Navigable Waters Protection Act was changed too. All these environmental protections were diminished.

On the one hand, this is a step in the right direction, but on the other hand, protections are lacking. Prevention is being reduced and the principle is not being fully applied.

Why are Conservatives taking this tack?

[Blake Richards, Conservative, Wild Rose, AB]

Mr. Speaker, although I thank the member for the question, I have to say that the assertions I just heard the member make are completely false. I know that the NDP is a party that does not understand the importance of ensuring, in what we are doing in terms of responsible resource development, that the environment is protected and that the economy can continue to move forward. These are things that are important. They are both important, and they are both taken in concert by this government.

The NDP does not seem to get that. We have people from the NDP going down to the United States to lobby against our energy industry. New Democrats do not understand the importance of protecting the environment and ensuring a strong economy. That is the basis of the falsehoods I just heard in the question, and it is the basis of the New Democrats' poor position on these issues. It is why they have been so poorly received in terms of the position they have taken on our attempts in the past to improve things like pipeline safety and environmental protection, and they have even voted against them.

[John Barlow, Conservative, Macleod, AB]

Mr. Speaker, I want to thank my colleague from Wild Rose for sharing his time with me, and for his presentation.

I am delighted to participate in this important debate today. This is an important discussion because pipelines are one of the lifelines of our economy. They get the energy we use every day to Canadians across the country.

By amending the National Energy Board Act, Bill C-46 proposes a number of new measures to make our pipelines across Canada even safer.

For many Canadians the National Energy Board, the NEB, may not be something they are very familiar with, so I would like to take some of my time today to focus on what it does, the role it plays, and some of the changes to it that we are proposing.

Established 56 years ago, the National Energy Board has a very clear mandate: to regulate international and interprovincial pipelines, power lines, and energy trade. Today, that means overseeing 73,000 kilometres of pipelines and transporting more than $100 billion of natural gas, oil, and petroleum products each year.

The NEB boasts a staff of about 450 highly skilled experts with a wide range of experience, from engineers to inspectors, to environmental specialists and economists. Their expertise makes the NEB one of the most renowned regulators in the world. I want to make that very clear: it is one of the most renowned, respected regulators in the world.

Equally important, the NEB is independent. It reports through Parliament but is independent of it. Quite simply, it operates at arm's length and has full autonomy. The board uses that independence to rigorously apply science-based analysis to every review it conducts. Those reviews, which are among the most robust in the world, are based on a number of criteria, including the environmental, economic, and social aspects of each and every proposal.

Canadians may ask, what is the end goal? What is the overarching goal of the National Energy Board? The goal is to keep our pipelines and the public safe while, at the very same time, ensuring that the environment is protected.

If an application is successful, and only then, it is still subject to further conditions established by the board.

To enforce its rulings, the NEB has a number of important powers. It can impose administrative penalties on pipeline companies, lower the amount of product allowed through the pipelines, or even shut them down entirely. In some cases, prison sentences from one year to even five years could be imposed for violations to the National Energy Board Act.

Only when the board is confident that a pipeline can be built and operated safely does the company earn the right to proceed with that project. However, the board's role does not end there. It oversees the full cycle of a pipeline, from concept to construction, to operation, to eventual abandonment of that pipeline. That means ongoing audits, inspections, and emergency exercises, with some 300 such compliance actions being conducted in 2013 alone. These ongoing audits and inspections are important. It also means that they continue to raise their standards, requiring more of pipeline companies, imposing stricter conditions, and also conducting rigorous testing.

Under this regime, the board has performed exceedingly well. For example, between 2008 and 2013, 99.99% of oil and other products transported through federally regulated pipelines was moved safely.

Let me be clear here again. That is an outstanding safety record, a record that any country in the world would be envious of. It is a wonderful tribute to the work of the National Energy Board and Canada's pipeline operators.

While we are gratified, we are certainly not satisfied. Our goal must be to have no incidents whatsoever. One incident is one incident too many. That is why, as part of our government's plan for responsible resource development, we have already strengthened the NEB, enabling it to increase its annual oil and gas line inspections by 50% and to double the number of annual comprehensive audits. These inspections and audits are critical proactive measures, because they can identify potential issues and prevent incidents from occurring, which we heard quite a bit about today.

The changes proposed in the bill are another good step toward ensuring that these accidents do not happen. We have provided the NEB with new powers to improve prevention by imposing tough monetary penalties against pipeline operators who do not comply with those regulations. These penalties, which range from $25,000 to $100,000 per day per infraction can also be cumulative, should the infractions not be addressed.

Now, with Bill C-46 we would go even further. Additional amendments to the National Energy Board Act would set a new standard for pipeline safety, ensuring that we have world-class protection. New measures would focus on preventing incidents from occurring, improving our ability to prepare and respond to events, and ensuring that the polluter pay through a tougher liability and compensation regime. In terms of prevention, we would tap into the expertise of the National Energy Board by seeking the board's guidance on the best available technologies for constructing and operating pipelines. As new technologies are developed, we want to ensure they are put into practice. We want to ensure that our safety systems remain evergreen and ever on the cutting edge.

We would also clarify the audit and inspection powers of the NEB, as well as the obligations of the pipeline companies to respond to requests arising out of these actions.

Moreover, we would modernize the damage-prevention regime to further harmonize it with provincial guidelines to prevent accidental damage through digging or other activities.

On preparedness and response, we would amend the National Energy Board Act to require companies that operate major pipelines to have a minimum of $1 billion in financial resources, a portion of which must be readily available to quickly react to any incident.

If a company is unable or unwilling to respond immediately, the NEB would have, in exceptional circumstances, the power to take over response operations and to recover the costs of those operations from the industry. In other words, the Government of Canada would provide the NEB the authority to respond and provide a financial backstop, in addition to giving the NEB the authority and funds to complete any cleanup. The bottom line here is that in the unlikely event there is an incident, the response would be swift, it would be thorough, and it would not be paid for out of the pockets of Canadians.

This bill would also strengthen our system of liability and compensation. Not only would pipeline companies now face unlimited liability when found to be at fault, but companies would automatically be responsible for damages up to a set amount. This is called “absolute liability”. It would not matter who or what caused the incident; the company would be responsible regardless. In the case of companies operating major oil pipelines, once again, that liability would be $1 billion, more than in any other country in the world.

What is more, this bill would allow the government to pursue pipeline operators for the costs of environmental damage, and it would empower the NEB to order reimbursement of cleanup costs incurred by either government or individuals. Finally, the NEB would be able to recover its own costs by stepping in to coordinate a response.

These are among the most sweeping changes to the National Energy Board Act since it was passed in 1959. This is a clear indication of how committed this government is to ensuring that Canada can safely transport the energy Canadians need and use every day.

Canadians understand that the energy sector is a critical part of our economy. It provides jobs and opportunities from coast to coast to coast. Canadians know how important the energy sector is to our quality of life and to our communities. However, they also want be reassured that our environment will be protected. Our government shares those priorities. That is why we are bringing forward this bill and I urge all members to support it.

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

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

I agree with him that there is some improvement in the polluter pays principle, but we are only halfway there. Nonetheless, one of the troubling aspects of this bill is that low-capacity pipelines, the ones that move less than 250,000 barrels of oil a day, are not covered by the liability. That is troubling because that type of pipeline, often in small sections, is the most common in or near urban centres.

Why was this type of lower-volume pipeline not included in the same way as higher-volume pipelines?

[John Barlow, Conservative, Macleod, AB]

Mr. Speaker, part of the reason that was not included is that we want to focus on the major pipelines, the ones that would be the most damaging to the environment if something happened to them. That is why the $1 billion liability was put in place. It far exceeds any other regime in the world. We looked at the numbers and the average cleanup, if anything ever happens, is between $20 million and $50 million. So the $1 billion is more than enough to cover the vast majority of any accidents that would happen.

However, with these changes to the act, there will be funds there for the National Energy Board so that it can step in and address some of these cleanups, should there be a spill. I hope that answers his question.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I want to address the large pipeline that could and should have been given more attention by the government, and that is the Keystone XL pipeline. Where the government has been found wanting is on the issue of the environment and what it has been doing to protect the environment and dealing with issues related to the security and safety of our pipelines and so forth.

One of the Prime Minister's greatest failures is not being able to work with the President of the United States, Mr. Obama, to get this on the right track. This legislation has been needed for a number of years now. On the eve of an election only months away, here we are at second reading and, as has been pointed out, there is a very good chance that the legislation will not even be passed and given royal assent before that election. Why did the government take so long to present this legislation to the House?

[John Barlow, Conservative, Macleod, AB]

Mr. Speaker, I do not recall anything in this legislation about Mr. Obama or the Keystone pipeline. This is specifically about pipeline safety. We can go off track if the member likes, but I would like to bring it back to what we are talking about here.

We have had a world-class safety regime in place. Opposition members may not like the fact, but the fact is that we have a 99.999% safety rating already, which goes to show that we have had an unbelievable safety record. However, that does not mean that we have to stop there. As I said in my speech, one incident is one incident too many. We want to make sure that every avenue is available so if there ever is a spill from a major pipeline, there will be regimes in place to address it. That is why the $1 billion dollar liability was put in place, so that if anything ever happens in the future, there will be is a strong safety net to ensure that it is cleaned up.