Bill C-69 (Historical)

An Act to enact the Impact Assessment Act and the Canadian Energy Regulator Act, to amend the Navigation Protection Act and to make consequential amendments to other Acts

Part 1 enacts the Impact Assessment Act and repeals the Canadian Environmental Assessment Act, 2012. Among other things, the Impact Assessment Act
(a) names the Impact Assessment Agency of Canada as the authority responsible for impact assessments;
(b) provides for a process for assessing the environmental, health, social and economic effects of designated projects with a view to preventing certain adverse effects and fostering sustainability;
(c) prohibits proponents, subject to certain conditions, from carrying out a designated project if the designated project is likely to cause certain environmental, health, social or economic effects, unless the Minister of the Environment or Governor in Council determines that those effects are in the public interest, taking into account the impacts on the rights of the Indigenous peoples of Canada, all effects that may be caused by the carrying out of the project, the extent to which the project contributes to sustainability and other factors;
(d) establishes a planning phase for a possible impact assessment of a designated project, which includes requirements to cooperate with and consult certain persons and entities and requirements with respect to public participation;
(e) authorizes the Minister to refer an impact assessment of a designated project to a review panel if he or she considers it in the public interest to do so, and requires that an impact assessment be referred to a review panel if the designated project includes physical activities that are regulated under the Nuclear Safety and Control Act, the Canadian Energy Regulator Act, the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act;
(f) establishes time limits with respect to the planning phase, to impact assessments and to certain decisions, in order to ensure that impact assessments are conducted in a timely manner;
(g) provides for public participation and for funding to allow the public to participate in a meaningful manner;
(h) sets out the factors to be taken into account in conducting an impact assessment, including the impacts on the rights of the Indigenous peoples of Canada;
(i) provides for cooperation with certain jurisdictions, including Indigenous governing bodies, through the delegation of any part of an impact assessment, the joint establishment of a review panel or the substitution of another process for the impact assessment;
(j) provides for transparency in decision-making by requiring that the scientific and other information taken into account in an impact assessment, as well as the reasons for decisions, be made available to the public through a registry that is accessible via the Internet;
(k) provides that the Minister may set conditions, including with respect to mitigation measures, that must be implemented by the proponent of a designated project;
(l) provides for the assessment of cumulative effects of existing or future activities in a specific region through regional assessments and of federal policies, plans and programs, and of issues, that are relevant to the impact assessment of designated projects through strategic assessments; and
(m) sets out requirements for an assessment of environmental effects of non-designated projects that are on federal lands or that are to be carried out outside Canada.
Part 2 enacts the Canadian Energy Regulator Act, which establishes the Canadian Energy Regulator and sets out its composition, mandate and powers. The role of the Regulator is to regulate the exploitation, development and transportation of energy within Parliament’s jurisdiction.
The Canadian Energy Regulator Act, among other things,
(a) provides for the establishment of a Commission that is responsible for the adjudicative functions of the Regulator;
(b) ensures the safety and security of persons, energy facilities and abandoned facilities and the protection of property and the environment;
(c) provides for the regulation of pipelines, abandoned pipelines, and traffic, tolls and tariffs relating to the transmission of oil or gas through pipelines;
(d) provides for the regulation of international power lines and certain interprovincial power lines;
(e) provides for the regulation of renewable energy projects and power lines in Canada’s offshore;
(f) provides for the regulation of access to lands;
(g) provides for the regulation of the exportation of oil, gas and electricity and the interprovincial oil and gas trade; and
(h) sets out the process the Commission must follow before making, amending or revoking a declaration of a significant discovery or a commercial discovery under the Canada Oil and Gas Operations Act and the process for appealing a decision made by the Chief Conservation Officer or the Chief Safety Officer under that Act.
Part 2 also repeals the National Energy Board Act.
Part 3 amends the Navigation Protection Act to, among other things,
(a) rename it the Canadian Navigable Waters Act;
(b) provide a comprehensive definition of navigable water;
(c) require that, when making a decision under that Act, the Minister must consider any adverse effects that the decision may have on the rights of the Indigenous peoples of Canada;
(d) require that an owner apply for an approval for a major work in any navigable water if the work may interfere with navigation;
(e)  set out the factors that the Minister must consider when deciding whether to issue an approval;
(f) provide a process for addressing navigation-related concerns when an owner proposes to carry out a work in navigable waters that are not listed in the schedule;
(g) provide the Minister with powers to address obstructions in any navigable water;
(h) amend the criteria and process for adding a reference to a navigable water to the schedule;
(i) require that the Minister establish a registry; and
(j) provide for new measures for the administration and enforcement of the Act.
Part 4 makes consequential amendments to Acts of Parliament and regulations.

Impact Assessment Act

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

Mr. Speaker, I think my friend from Vancouver Kingsway has hit on the point: This decision to expand Kinder Morgan makes a mockery of the government's climate change commitments if we look at some of the key facts and figures associated with climate change and the economic costs that will come to Canada.

We are seeing increased natural disasters, flooding, droughts, forest fires. These all have very real impacts on the Canadian economy. Over the next few decades, they will far outweigh the kinds of economic impacts anyone hopes to gain from approving projects like this. I would argue that the greatest economic input comes from looking ahead to the end of the 21st century and where we want Canada to be at that point and starting to invest in those technologies today.

[David Yurdiga, Conservative, Fort McMurray—Cold Lake, AB]

Mr. Speaker, I rise today to debate Bill C-69.

It is obvious that Bill C-69 would ensure that major private sector pipelines will never see the light of day. This Liberal Bill C-69 will forever be known as a black death to the oil and gas sector, killing jobs from coast to coast to coast. The Liberal government has enacted a series of anti-resource policies and has sent signals that discourage economic growth. The hikes in tax rates, increased capital gains taxes, which entrepreneurs are averse to, and the carbon tax all affect investment in Canada. We have witnessed that Liberal policies and lack of action on the energy file have chased over $80 billion out of our country, taking with them hundreds of thousands of jobs.

When I was first elected, anyone across the country who was willing to work could find a job in Alberta. Those willing to work hard, often more than 40 hours a week, could support their families, send their kids for post-secondary education, and still save for the future. Small businesses across Alberta were also booming from the economic activity that the industry brought into almost every town and community in the province. That is not the case today. An oil crash later, a provincial government change, and a federal government change have all Albertans concerned for their future.

The global price of oil will always fluctuate, but what many Canadians do not know is that we do not receive the price per barrel that is commonly reported. The price reported is the North American benchmark, West Texas Intermediate. Our oil is traded as Western Canadian Select. The difference between the two prices is about $34 a barrel, on average. The good news is that pipelines can help to close that gap in prices. The more access we have to markets other than the United States, the better the deal we can obtain.

Instead of supporting the building of these pipelines, the Liberal government has introduced regulation after regulation to cripple the industry and deter investment. Today we are talking about the unpopular move that the Liberal government has struck against the west and our oil industry by robbing the National Energy Board of most of its powers through the creation of the Canadian energy regulator.

The National Energy Board has served as a world-class regulator for the natural resource sector since its creation in 1959. Since then, it has reviewed and approved major energy projects across Canada. Over the last decade, the NEB has approved the pipelines Alberta desperately needs, which made it a target for political interference. When the Liberal government took power, the natural resource minister's mandate letter called on him to “Modernize the National Energy Board to ensure that its composition reflects regional views and has sufficient expertise in fields such as environmental science, community development, and Indigenous traditional knowledge.”

While the government believes Bill C-69 would complete this mandate, I would like to cover how this bill would drive investment out of Canada.

One of the changes the bill would bring in is the establishment of timelines. The government claims that there will be timelines of 450 days for major projects and 300 days for minor projects, respectively, pursuant to subclauses 183(4) and 214(4). While many Conservatives are in favour of timelines for projects, the devil is in the details, and unfortunately we did not have time or enough witnesses at our round tables to go over these details. The application process can be dragged out, and that will not be considered in the timelines. The lead commissioner will be given the ability to exclude time. Lastly and most importantly, the minister can approve or deny an application before it even gets to the assessment phase. We only have to look at the cancelled northern gateway pipeline to see that the government has no problem putting national interests on hold and dismissing a pipeline for political reasons.

I am also concerned about the changes to the NEB standing test. Currently, individuals and organizations directly affected by the project or capable of providing valuable knowledge are heard by the National Energy Board. The new rules would allow anyone to participate and be heard. This would ensure that groups who oppose all energy projects across Canada will be given a bigger voice. Groups outside of Canada will be given a voice as well, and they do not have our best interests at heart.

I can only imagine what our global competitors think of this legislation. It would give them the opportunity to fund groups that will oppose every project that has the ability to threaten their market share. To think that this will not occur in the future is foolish and short-sighted.

Briefly, I would like to bring your attention to the projects that have died under the Liberals' watch.

The Prime Minister imposed offshore drilling bans in the Northwest Territories without notice to the territorial governments, which killed exploration and future development, and the Petronas-backed NorthWest LNG megaproject on the west coast was cancelled. The Liberal government has ever-changing policies and roadblocks, which led to the cancellation of energy east. The Liberals also cancelled the Conservative-approved pipeline project known as the northern gateway, which would have brought our oil to tidewater. They legislated the northern B.C. coastline tanker ban, which will ensure projects like the northern gateway and Eagle Spirit will never be possible.

In addition, many Canadians and experts are concerned over the purchase of a 65-year-old pipeline at twice its book value, but the biggest concern is the current condition of the pipeline.

Some of the questions I have are these: What is the life expectancy of the 65-year-old pipeline? What is the projected cost of the maintenance and upgrade of the 65-year-old infrastructure? Will the newly created crown corporation be self-sufficient or end up like the CBC, dependent on taxpayer handouts? Will the construction of the twinning of the pipeline be subject to Bill C-69? Did the government assume all liability from Kinder Morgan, including liabilities from the past?

We should all recognize that the natural resource sector has brought tremendous wealth to my riding, all of Alberta, and Canada. The oil sands alone have brought $7.4 billion to the Canadian economy outside of Alberta: $3.9 billion to Ontario, $1.3 billion to British Columbia, $1.2 billion to Quebec, $333 million to Newfoundland, $143 million to Manitoba, $142 million to Saskatchewan, $96.7 million to Nova Scotia, $50.8 million to New Brunswick, $11.4 million to the Northwest Territories, $6.3 million to Prince Edward Island, $1.6 million to Yukon, and the list goes on. These figures include everything from especially made overalls to high technology for reducing global emissions.

Members need to consider that if we keep our resources in the ground, as environmentalist David Suzuki wants us to do, we are not saving the environment; we are just moving resource development to countries around the world that have lower safety standards and lower environmental protections. I believe that if resources are needed, it is better that they come from here and not from human rights abusers and dictators.

I know that many members of Parliament have voted for regulations of every type and will continue to do so. What they need to consider before voting on this bill is that we are part of a global market. Right now we are competing with countries across the world to sell our goods and attract investment.

We only need to look across the border to see a government intent on bringing in billions of dollars of investments and the jobs that come with them. Since taking office, the Trump administration has given the energy industry a tremendous amount of confidence to invest by cutting regulations and taxes. Future natural resource jobs in my riding, in Alberta, and across Canada are at stake if this bill passes, and that is why my Conservative colleagues and I stand against this bill.

[Bob Bratina, Liberal, Hamilton East—Stoney Creek, ON]

Mr. Speaker, I appreciate the comments from my friend from Fort McMurray—Cold Lake. I am a little puzzled, and I wonder if he could share with us the current numbers for employment and business activity.

In Hamilton, we are very proud to have one of the lowest unemployment rates of all Canadian cities, at 4.2%, and we have two new orders of 1,000 grain cars each from CN and CP at the railcar facility in my riding. Those grain cars will be applied to the economy of the west.

I have limited knowledge of northern B.C., and my friend will know why. The unemployment rate in the cities I have some familiarity with dropped drastically over the past year or so, to half of what it was. Could my friend be clear on just what the employment activity is like in the Fort McMurray—Cold Lake area?

[David Yurdiga, Conservative, Fort McMurray—Cold Lake, AB]

Mr. Speaker, I can tell you which industries are doing great and flourishing. The Food Bank is up 340%, which is wonderful. We have overcrowded homeless shelters. We have families living in cars because they cannot afford their mortgages. That is our reality. Just because your region is doing well, that does not mean mine is—

[An hon. member]

Oh, oh!

[The Deputy Speaker, Bruce Stanton]

We sometimes switch from a third person to a second person scenario. I do try to stay alert to those times when the “you” word is used in a rhetorical sense, as opposed to when it is directed to a particular member. Having said that, I do try to let members finish their thought, and if I sense that an intervention is required, I will do that.

The hon. member for Fort McMurray—Cold Lake.

[David Yurdiga, Conservative, Fort McMurray—Cold Lake, AB]

Mr. Speaker, I apologize. I wanted to differentiate between two regions. If members want to take issue with it, they can send me an email. I would appreciate that.

However, I am looking at businesses shutting their doors. We have businesses that base their business model on certain criteria that are not there any longer. Our economy in Fort McMurray—Cold Lake is suffering. We have to look at getting our product to market, and the pipeline is very important. It is unfortunate, but I believe we are going to have ribbon-cutting and then a new study, and nothing is going to happen for years.

[Marjolaine Boutin-Sweet, NDP, Hochelaga, QC]

Mr. Speaker, if the member wants to talk about the economy and jobs, let us do that. It is estimated that governments around the world will invest $5,000 billion in clean, renewable energy by 2030. That translates into many good and well-paid jobs.

In the meantime, what is Canada investing in? We just invested $4.5 billion in a pipeline. We are investing in non-renewable energy, dirty energy, with existing jobs that unfortunately will not last very long.

Does my colleague not think that we should instead have a greater vision, one that will have more longer-term benefits for the people of his region, and not the short-sighted vision of investing in non-renewable energy?

[David Yurdiga, Conservative, Fort McMurray—Cold Lake, AB]

Mr. Speaker, why can green energy and carbon-related energy not go hand in hand? Eventually, one industry will overtake the other, but it is going to take time. Currently, there is a great demand for oil. We have abundant oil. It is a very important part of our economy. Let us invest in both.

I do not believe that taxpayers should be on the hook to get this done. We have private corporations willing to put the pipeline in, but the Liberal government did nothing for a long time, not clearing the way for the private sector to get this pipeline constructed.

[Richard Cannings, NDP, South Okanagan—West Kootenay, BC]

Mr. Speaker, I am happy to rise here today to speak to Bill C-69, one of the most important attempts to modernize our environmental protection laws in Canada.

In large part, I think it was meant to deal with some of the actions of the Conservative government, which gutted a lot of our environmental protection laws in the previous Parliament through changes to the Navigable Waters Protection Act, the Fisheries Act, et cetera. We dealt with fisheries in Bill C-68, but Bill C-69 is an answer to try to fix some of the other acts that were radically changed by the previous government.

I have to say, off the top, how disappointed I am that the government not only brought in this bill as an omnibus bill, a huge bill, well over 300 pages long, but it moved time allocation in the first debate after only two hours. It moved time allocation on the bill yesterday as well. This is a bill that really should get full debate. I am disappointed that not only did the government move time allocation, but it took so long to bring in this bill.

The NDP originally asked the Speaker to rule this an omnibus bill so that we could deal with it separately. The government agreed that we could vote on the navigable waters section separately. We also asked that the bill be split up for committee study. The first section, on the impact assessment, is ideally suited for study by the environment committee. The central part, which deals with the National Energy Board and the Canadian energy regulator, belongs with the natural resources committee. The navigation protection section, obviously, should have gone to the transport committee.

That division of labour would have provided for a thorough and efficient study. Instead, the whole bill was thrust onto the environment committee, where, with impossible deadlines, many important witnesses could not testify. I was contacted early on by a consortium of Canadian scientists who had studied this and wanted to present evidence before the committee. This was not a single scientist; these were a lot of the important environment scientists in Canada. They were denied access to the committee simply because, I imagine, there were too many witnesses trying to testify before the committee in those tight timelines.

At committee, the NDP submitted over 100 amendments, none of which were accepted. Tellingly, the government submitted over 100 amendments of its own. This tells me that the legislation was clearly rushed into the House and should have been written with more care.

The Liberals are hashtagging this bill #BetterRules, but the Canadian Environmental Law Association, the legal experts who arguably know more about this subject than most Canadians and most politicians, has said that this legislation in neither better, nor rules.

I will quote from a briefing note prepared by Richard Lindgren of the Canadian Environmental Law Association:

[T]he IAA is not demonstrably “better” than CEAA 2012. To the contrary, the IAA replicates many of the same significant flaws and weaknesses found within the widely discredited CEAA 2012....

[T]he IAA does not establish a concise rules-based regime that provides clarity, consistency, and accountability during the information-gathering and decision-making process established under the Act. Instead, the key stages of the proposed impact assessment process are subject to considerable (if not excessive) discretion enjoyed by various decision-makers under the IAA.

At the most fundamental level, for example, it currently remains unclear which projects will actually be subject to the IAA.... [It] contains no benchmarks or criteria to provide direction on the type, scale, or potential effects of projects that should be designated under the new law.

I would like to spend a little while speaking more to the second part of the bill, the energy regulator section.

This section disbands the National Energy Board and creates a new but rather similar body called the Canadian energy regulator. The section opens with a preamble and a statement of purpose. Surprisingly, in this day and age of a brave new world of energy, neither makes reference to linkages between energy and climate. In fact, there is no mention at all of climate in this entire section.

Much of the public work of the old NEB was about regulating pipelines. One could easily come to the conclusion that this is a case of closing the barn door after the horses have left, since it seems unlikely that the new regulator will ever have to review an application for a major new oil pipeline.

The Minister of Natural Resources has risen countless times in this place declaring that the government has restored confidence in the energy regulation system, and that is why the Kinder Morgan pipeline can be built. Unfortunately, he is deeply misinformed.

A couple of months ago, I met with Dr. Monica Gattinger of the Positive Energy group at the University of Ottawa, who studies this very issue of public confidence in energy issues, and Nik Nanos, whose polling firm had asked Canadians about that confidence. Perhaps not surprisingly, Mr. Nanos found that public confidence in the Canadian energy regulation system was at an all-time low. If we thought it was low during the Harper government, it has continued to decline, and now only 2% of Canadians have strong confidence in the energy regulation system. That lack of confidence is shared by members of the public on both sides of the issue: it is lowest in both Alberta and British Columbia. It results in situations like the Kinder Morgan impasse. I should mention that the last time I heard the minister speak on this subject, he did admit that confidence was suddenly a problem in this area.

The Liberals promised during the last election to put the Kinder Morgan proposal through a new, stronger review system, but instead sent a three-member ministerial panel on a quick tour along the pipeline route, giving communities, first nations, governments, and the concerned public almost no advance warning to prepare their presentations. No record was made of the proceedings.

Despite the serious shortcomings of this process, the panel came up with six questions that it said the government would have to answer before making its decision about Kinder Morgan. I will mention only the first three.

First, can the construction of the Trans Mountain expansion be reconciled with Canada's climate commitments?

Second, how can pipeline projects be properly assessed in the absence of a comprehensive national energy strategy?

Third, how can the review of this pipeline project be squared with the government's commitment to the UN Declaration on the Rights of Indigenous Peoples?

I would suggest that none of these questions was answered, even in part, before the government made its decision to approve the Kinder Morgan expansion, and none of them were answered before the government bought the pipeline, which was actually the old pipeline. This leaves a lot of questions about how the government is to regulate itself in getting that pipeline built.

Amazingly, none of those questions are properly answered in the legislation before us, which comes two years after the Kinder Morgan decision. After the government has accepted Bill C-262, which calls for government legislation to be consistent with the UN Declaration on the Rights of Indigenous Peoples, there is no mention of this in the body of Bill C-69. Only after much pressure did the government agree to put it in the preamble, where it would have no legal effect.

We need to restore the confidence of Canadians in our energy regulatory system and in our environmental impact processes. Without that confidence, it will be increasingly difficult for Canadian companies to develop our natural resources, which are at the heart of our national economy.

The Liberals continue to pretend they are doing good, but they are all talk and no action, or as we say in the west, all hat and no cattle. We need bold action to build a new regulatory system that gives voice to all concerned Canadians.

[Ken Hardie, Liberal, Fleetwood—Port Kells, BC]

Mr. Speaker, I was listening carefully to what my hon. colleague was saying. It raises the question of how we go forward. Clearly, the intent of the work that was done, partially in the committee on which I sit, was to try to improve public confidence and strike a balance between what the Conservatives had tried to do and had not done very well, and what was necessarily needed.

If we were to follow what we have heard from the NDP so far, would we basically be what I would call a banana republic—i.e., build absolutely nothing, absolutely nowhere, at any time, because the hurdles the member suggests we would have to clear in order to build something like a pipeline would be impossible?

[Richard Cannings, NDP, South Okanagan—West Kootenay, BC]

Mr. Speaker, let us go back to the polling done by Positive Energy. It found that Canadians have very low confidence. Nanos Research found that Canadians felt that the way to move forward was to listen to first nations peoples and to communities. We have to listen to those people and put their messages into our decisions, and that will restore Canadians' confidence.

For instance, a lot of people across the country are concerned about Kinder Morgan and how it squares with our climate action plan. The government talks a good talk about taking action on climate change, but in reality it could move forward much more boldly. It could have put that $4.5 billion into climate action. A lot of Canadians would have more confidence in the oil and gas industry if they knew it were squared with our climate action. That is the way we have to go.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, as much as I want to join in the conversation and keep discussing climate, in looking at Bill C-69 I really want to make a point and ask the hon. member for his commentary.

We had an expert panel on EA. The government spent over $1 million to get its advice, and that advice was very clear: the projects subject to review must include much more than the large controversial projects, and we must ensure that all areas of federal jurisdiction are covered. Smaller projects can do serious environmental damage. I want to ask my hon. colleague from South Okanagan—West Kootenay about this, as he has an extensive scientific background. Smaller projects are not going to be caught at all by Bill C-69.

This is about the review of a couple of dozen projects a year, all big ones. That is a fatal mistake for a federal government to make. It will be fatal to our environment. Smaller projects can destroy a species and wipe out a key ecosystem, and we will never even know about it. That is what I would like to ask my hon. colleague to comment on.

[Richard Cannings, NDP, South Okanagan—West Kootenay, BC]

Mr. Speaker, the Liberal government did a lot of consultation on this legislation, and that is a good thing, I suppose. It did delay the introduction of the bill. As the member said, the advice from all that consultation was largely ignored. This kind of action does not help to gain public confidence in our regulatory systems or in our impact assessments.

I hear complaints from industry about some industries being subject far more often to these impact assessments, the mining industry especially, than other industries, like the oil and gas industry, which is largely exempt. That is how we sow the seeds of discontent on many sides.

[Marjolaine Boutin-Sweet, NDP, Hochelaga, QC]

Mr. Speaker, earlier, in my question for a Conservative member from Cold Lake, I stated that billions and billions of dollars are being invested in renewable energy around the world and those investments are creating good jobs. In Canada, however, we are still investing in non-renewable energy such as petroleum. Then my colleague asked why can we not invest in both.

I will put that question for my NDP colleague: why should we not invest in both?