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.

[Matt Jeneroux]

You have no comments about Bill C-69.

[Matt Jeneroux]

It's a pleasure to have everyone here, even the chair.

I want to revisit some of the questions I was briefly talking about earlier with regard to Bill C-69, and perhaps give Mr. Moir and Ms. Ross an opportunity to weigh in.

Could you provide some tangible examples of what exactly Bill C-69, which is not official yet, would mean as legislation for your industry, and on the competitiveness piece?

First, we'll go back to Mr. Xotta, and then we'll go across the table.

[Matt Jeneroux]

Okay.

Mr. Xotta, you spoke on Bill C-69, and some concerns you had with that. I will revisit this in my second round of questioning, but if you have a moment to perhaps comment on what some of your concerns are, that would be helpful, I think, for this committee.

[Peter Xotta, Vice-President, Planning and Operations, Vancouver Fraser Port Authority]

Thank you very much for giving us the opportunity to appear.

You'll hear a common theme across the port authorities around the importance of ports to the Canadian economy. I'll be brief about the Vancouver Fraser Port Authority. We're responsible, obviously, for the port of Vancouver. Our mandate under the Canada Marine Act is to ensure that port infrastructure is in place to meet Canada's trade objectives, while protecting the environment and considering the impact of port activity on local communities. That, as you can imagine, is becoming increasingly complex as we, like Victoria and Nanaimo, are experiencing tremendous opportunities for our gateways, and thus the Canadian economy.

Vancouver, of course, is the largest port in Canada by a significant margin. For those familiar with the Lower Mainland, our jurisdiction includes Burrard Inlet, the surrounding lands in downtown Vancouver, and much of the Fraser River, totalling 16,000 hectares of water and 1,000 hectares of land.

Interestingly, and significantly, we also have 16 municipalities that we interact with in terms of trying to facilitate that trade, and of course we intersect with the asserted and established territories of several treaty lands of the Coast Salish first nations.

Ports are important, as I've said. One in three dollars in Canada's trade in goods outside North America goes through the port of Vancouver, as well as significant volumes of regional and North American trade.

Capacity is needed. The port of Vancouver, together with other ports, acts as the gateway to Asia, and trade with Asia is expected to continue to grow, in particular with China and India, but many other nations' trade patterns with Canada are also increasing. In 2017, the port of Vancouver handled 142 million tonnes of cargo, up 5% from the prior year. We anticipate that number to reach 200 million within the next decade.

With forecast growth of 4% a year through the port of Vancouver alone this year, and even with all the planned expansions at west coast terminals, additional capacity in our container sector is also required.

A lot has been done to improve the port and surrounding infrastructure to increase capacity, much of it through various federal funding initiatives. We are thankful to have been successful in securing funding from them. With our partners in terminals and other stakeholders, the port has redirected most of the profits of the port authority back into increasing capacity to enable Canada's trade.

There are a number of barriers we're facing with regard to growth that, if left unresolved, will result in economic loss for Canada.

First and foremost, trade-enabling land needs protecting. We're very concerned about the critical shortage of trade-enabling industrial land in the Lower Mainland. Vancouver has the second-lowest availability rate across North America. It's predicted that Vancouver could run out of industrial land supply in the not-too-distant future.

Road and rail capacity constraints require continued focus. Since 2014, the port has been working with the province, the regional transportation authority through TransLink, and the industry to identify bottlenecks in the roads and railways that serve the port. One of the impacts of this has been the ability to extend hours of operation and reduce impact on commuters.

Key focus areas have been the CP Rail Cascade subdivision, servicing the south shore of Burrard Inlet, and, more recently, the joint link section between New Westminster and Burrard Inlet, which serves the North Vancouver terminal complex and also hosts traffic from CN, VIA, Amtrak and Rocky Mountain Rail Tours.

Together, we've submitted funding applications to the federal government, through the national trade corridors fund, for a number of projects that will support Canada's growing trans-Pacific trade and protect the livability of local communities. In the summer, Minister Garneau announced more than $200 million for these projects. We are anxious to move forward with them, and we are busy doing so.

We're concerned about the impact that Bill C-69 will have on investment in Canada. As a trading nation that aspires to more trade, Canada needs its ports to be ready to manage the increased movement of goods. This, of course, requires increased investment—in our case, usually to develop brownfield sites, to make them more efficient and intensify their operations to handle this emerging trade.

It's critical that environmental reviews of port-related projects be done in a way that protects the environment, first and foremost, but they must also allow for timely development to meet growing trade objectives. One of our concerns is that environmental permitting processes are getting more difficult and certainly more complex and costly, which will make Canada less desirable as a place for investment. As a nation, we need to find a way to protect the environment and make those decisions in a timely way.

Growth continues to put pressure on passenger and freight corridors. We recommend continued investment by Canada to improve road and rail. As commuter passenger numbers increase within the region, we need to look at how we're managing our passenger and cargo rail system. As it stands, we have freight and passenger rail sharing rail lines, which impacts our goods-moving capability and constrains passenger rail opportunities. Because of the growth of the region, both of these things need to be advanced, without prioritizing one over the other.

Turning to efficiency of operations, we recommend that the federal government continue investments made to date through the transportation 2030 program. We have a particular initiative called the supply chain visibility project, which we're working on with Transport Canada. It aims to provide much greater visibility of goods movement from origin to port, to help inform operating decisions, to help collaboration between various stakeholders, and ultimately to identify when bottlenecks require infrastructure investment to be addressed.

We also encourage the federal government to invest in port infrastructure and enable more collaboration with all supply chain partners. The goal is a more efficient and reliable gateway, while reducing the impacts of growing trade on local residents. As I mentioned at the outset, that is becoming more and more complex.

We look forward to your questions this morning, including any questions you have about the port of Vancouver or more generally.

Thank you.

[Blake Richards]

Another question occurred to me when you were talking about the truck driver shortage, and I might have our friends from CAPP comment on the regulatory process as well because I imagine that they would have some concerns here. Is it one of those cases where we have such difficulty with some of the processes and with Bill C-69 that it's just going to get worse, that what happens is you can't get pipelines built and, therefore, rail is being used to ship oil, displacing other products from being on rail?

Now you're saying that there's an issue due to truck driver shortages. Is this one of those things where it kind of cascades down? What are your thoughts on that, Mr. Neuheimer?

[Timothy Egan]

We have, as you noted, a supply picture that's incredibly positive. It just gets more and more positive all the time. The Government of Canada talks about several hundred years of supply. The product is as affordable as it has ever been. I was in Nova Scotia last week, and I had a bill in my hand from 1915. Natural gas is almost one-fourth the commodity cost it was in 1915. You're right. The supply picture is extraordinary.

The single best thing we can do to continue to help on the supply side is to look at the regulatory framework and the regulatory pancaking. I can list a series of provisions that are very onerous for our industry: the clean fuel standard, the methane regulation, the carbon backstop, the energy efficiency standards, the proposal for offset purposes, and Bill C-69. Each of these represents a cost to the end-user and to the producer, so we need to look at how we can lighten that cost. On the distribution side, we need to send a signal that isn't as negative as the signal has been about the prospects of using natural gas.

We're all for electricity. Many of our members are joint. We have a great deal of co-operation, and at the same time, we compete. It's healthy competition. Obviously the electricity industry is going to advance an electrification strategy.

The chairman asked about a smart grid. I'd say we don't need a single smart grid. We need a smart energy delivery system. That can be an electric grid. It can be a natural gas distribution system. It can be one of a variety of choices, and we shouldn't be picking a favourite. We should be giving choice.

Natural Resources

[Earl Dreeshen, Conservative, Red Deer—Mountain View, AB]

Mr. Speaker, I am honoured to speak this evening and to add my voice in support of Canada's oil and gas sector.

The report that we are discussing covered economic drivers, such as oil and gas prices, production costs, export capacity, future demand, investment and competition. The arguments that various witnesses presented dealt with the ways in which we could foster investment and trade opportunities, promote a new era of indigenous engagement and public trust, deal with a price on carbon, invest in technological innovation and establish the right policy framework. The concern that I have about this report, as was agreed upon by the majority on committee, was that on so many fronts, the conclusions did not address the true realities that exist in the industry today.

The unanimous motion to undertake the study on the future of Canada's oil and gas sector, with a focus on innovation, sustainable solutions and economic opportunities, presented an excellent forum to showcase to the world our first-class oil and gas sector. As I read through the report, what became obvious was that it seemed to be an apology piece for a natural resource sector rather than a chance to explain why Canada's resource development should be encouraged and promoted throughout the world.

At the time of the project, energy east, as well as Kinder Morgan, were being recognized as the final pipeline opportunities to have oil exports added to the four major pipelines that the Conservative government had previously overseen. These pipelines have become even more significant after the arbitrary cancellation of the previously approved northern gateway project.

The report also looked at pricing and production costs, which, of course, are indeed considerations that any company must keep in mind when determining where their investment dollars would go. It is too simplistic to say that investors are shying away from Alberta because of those economic factors, unless, of course, one factors in the uncertainty caused by the ever-burdensome red tape for the industry; the assault on all Canadian small businesses, particularly those that supply the oil and gas sector; a bizarre approach to international trade, which makes investors nervous; and the made-in-Canada disaster program that forces a non-competitive carbon tax on all Canadians that has no equal with our global competitors. The Liberal mistruths about Conservative pipeline management were at least exposed during the study, but once that was on the table, the report reverted back to an anti-oil spin to justify the foot-dragging that has been the hallmark of the Liberal government.

There was an acknowledgement that we needed to get moving on LNG pipeline projects, but the reality is that the same global investors that are agitating against our oil pipelines will use their network to stop LNG projects as well. After all, if Canadian resources produced under the strongest environmental standards in the world could ever get to market, who would need or want products from other countries?

In the report, the Canadian Chamber of Commerce warned that certain environmental policies, namely, carbon pricing, could undermine Canada's competitiveness unless it is aligned with trading partners. Its conclusion was that a price on carbon would cause a lack of competitiveness. There was an expression of concern regarding the greenhouse gas emissions levels of oil sands operations and how that might hinder Canada's ability to reduce domestic greenhouse gas emissions as addressed in the report. The irony associated with that discussion has always been the degree to which those calculations and the actual contribution to overall global emissions are portrayed.

In a November 27, 2014, Financial Post report, an energy adviser to some of the world's most developed economies, Fatih Birol, presented his concerns not only about the security of world energy sources but also the impact of fossil fuels on the climate.

What he said was that of all the issues that exist, he would never spend any time worrying about the level of carbon emissions from Canada's oil sands. He was frank about saying that oil sands CO2 emission from the oil sands is extremely low.

When speaking of the expected global requirement, Mr. Birol, chief economist of the Paris-based International Energy Agency, said that the IEA forecasts that in the next 25 years oil sands production in Canada will increase by more than three million barrels per day, “but the emissions of this additional production is equal to only 23 hours of emissions of China—not even one day.” Now, Mr. Birol also did not think a carbon tax was a particularly useful way of managing emissions. However, the sad part is that this carbon pricing scheme remains a major talking point in the report and is punishing one of our most important drivers of Canada's economy.

One cannot help but comment on the frustration industry has had with respect to the pipeline fiasco. The Prime Minister falsely claimed that the energy east project had been cancelled because of market and volume considerations. The major nail in the coffin was the government's intrusion into the pipeline approval process. It would seem as though the Liberals have used the cover of this report as a rationale to launch its disastrous Bill C-69.

In a recent Bloomberg report, former TransCanada CEO Hal Kvisle stated that in assessing the environmental impact in Canada's energy regulations this was “an absolutely devastating piece of legislation.” Mr. Kvisle also said that he did not think any competent pipeline company would submit an application if Bill C-69 came into force.

The key point is that any government needs to review projects early on and quickly send a signal to both the community and the pipeline proponent as to whether or not the Government of Canada supports the project. If pipeline companies are worried about Canadian projects going forward, then one should not be surprised that other investors around the world are no longer looking to Canada as a reliable investment. The sad part of this is that it does not mean oil and gas will not be sold around the world. It will be supplied from countries that truly have much less concern about the environment than we do. This carbon “slippage”, as it is called, will not help the global environment but it will continue to hamstring our economy.

The dissenting opinion presented by Conservative committee members addressed many of the points I have spoken about this evening, so let me put into the record the recommendations we presented.

We strongly encourage the Government of Canada to establish and make publically available strict, clear criteria and a fixed timeline for their assessment and consultation processes for major projects. The timely approval of new energy infrastructure projects would not only reduce Canada's reliance on foreign oil, but would also allow responsible, world-renowned and respected Canadian oil and gas to reach broader international markets.

We strongly encourage the Government of Canada to show confidence in our national regulators by allowing them to make evidence-based decisions independent of government politicization and unnecessary, duplicative interim principles.

We strongly encourage the Government of Canada to publicly and unequivocally support strategic energy infrastructure approved by the national regulators after extensive and thorough evidence-based processes to ensure Canada's competitiveness in the global energy market.

We strongly encourage the Government of Canada to recognize and to promote Canada's world-leading regulatory framework and environmental standards and stewardship by instilling rather than eroding public confidence in our national regulators and Canada's energy developers.

We strongly encourage the government not to impose any additional tax or regulation on the oil and gas sector or the Canadian consumer that our continental trading partners and competitors do not have. This includes measuring the upstream greenhouse emissions from pipelines, as laid out in the five interim principles, given pipelines do not contribute to these emissions in any material way and upstream emissions fall under provincial jurisdiction. Any national carbon pricing initiatives should undergo a thorough economic assessment to ensure balance between economic growth and environmental stewardship and responsibility.

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Mr. Speaker, I thank my colleague.

Bill C-69 will make environmental and energy rules more transparent. This will allow us to make projections. We will accomplish all of this, and this bill will allow us to go further.

I will repeat, because I want my colleagues opposite to understand. The environment and the economy go hand in hand. We must create jobs for the middle class. By working with first nations in Alberta, we will be able to keep the economy going.

[Yasmin Ratansi, Liberal, Don Valley East, ON]

Mr. Speaker, I would like my colleague to give a brief background as to how Bill C-69 would make environmental assessment more transparent? That is where everyone's questions are coming from and everyone worries about these things. Could she give a little highlight on that?

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Mr. Speaker, I am very pleased to speak this evening. I will be speaking in English so please forgive me if I make a few mistakes.

The great philosopher Yogi Berra once said, “It's like déjà vu all over again.” He could have been talking about this debate, because it seems we are just going around in circles here, with many of us saying the same thing in different ways.

Our government has already endorsed the House committee's report on the future of Canada's oil and gas sector. Why? It is because the committee was right when it concluded that the future of the industry is tied to innovation, sustainable solutions and new economic opportunities. Who would disagree with that?

However, the critics in the House say, “Yes, but what about the upstream greenhouse gas emissions? Why are we including them in the review of oil and gas projects? What about the uncertainty facing the industry with respect to environmental assessments? What about recognizing that Canada has a world-leading regulatory regime and an internationally renowned track record? What about the United States' transformation from being our main customer to our biggest competitor?”

On each count we say, that is what we have been addressing over the course of our mandate. We have been addressing existing problems and tackling the challenges that continue to emerge. One key way we have been doing that is by bringing forward legislation, Bill C-69, to make environmental assessments and regulatory reviews timelier, more transparent and more predictable. We get it. Investment certainty is critical to the energy sector's future, and Bill C-69 would provide that, with better rules for a better Canada.

However, again, the critics argue, “Yes, but why are you singling out the oil and gas industry by including upstream greenhouse gas emissions for pipeline projects?” We are not. It is just the opposite. Everything we have been doing, from Bill C-69 to the pan-Canadian framework on clean growth and climate change, is aimed at strengthening Canada's economy and creating jobs for the low-carbon future. That includes our oil and gas industry and all the other resource sectors that are the backbone of the Canadian economy.

Here is a fact that is not widely known. Natural resources account for 47% of Canada's merchandise exports. That is almost half our total merchandise exports. There is no getting around it. Our natural resource industries are not just the historic foundation of our economy, they are helping to drive our future prosperity, and in a world increasingly looking for sustainably produced products, Canada is unmatched. We have a huge natural advantage, and our government is determined to build on that competitive edge by making sure that Canada can take on the world in this clean-growth century and win.

However, again, the critics argue, “That is all well and good, but you have to realize that our oil and gas industry is now competing with the United States. You have to do something about that.” Again, we say that they are right, and we are doing something about it. It is right there in the Prime Minister's mandate letter to the Minister of Natural Resources. The Prime Minister asked the minister to identify opportunities to support workers and businesses in the natural resource sectors that are seeking to export their goods to global markets.

The Trans Mountain expansion project is part of that, part of our plan to diversify markets, improve environmental safety and create thousands of good middle-class jobs, including jobs in indigenous communities. That is why the Minister of Natural Resources just announced the first step in our efforts to make sure that any expansion of the Trans Mountain pipeline proceeds in the right way. When 99% of Canada's oil exports are destined for the United States, it just makes sense for us to seek other buyers for our resources. The problem is that there was not a single pipeline built to tidewater in the decade before we formed government. We have to address that, and we are.

Before anyone watching thinks we are doing all of this alone, let me make this clear. Canada's oil and gas industry is working hard investing in innovation, improving its environmental performance, building new partnerships and creating new opportunities. The oil sands are a great example. They are one huge innovation project. Nobody figured out how to get oil out of sand until Canadians created the technology, and that ingenuity continues today through Canada's Oil Sands Innovation Alliance. It is a partnership of Canada's thirteen largest producers, all of them working together to ensure the industry's sensible growth and to accelerate its environmental performance. To date, those 13 companies have invested more than $1.3 billion to develop more than a thousand distinct new technologies and innovations, such as using the latest in artificial intelligence to pinpoint where to inject steam, and how much, to maximize the return of oil, or developing technology that could reduce CO₂ emissions from the steam generation process to almost zero within five years.

Our government is working with them, supporting their efforts through our CanmetEnergy lab in Devon, Alberta, through our oil and gas clean-tech program and through our clean energy innovation program. We do that because our job is to make sure that Canada is developing its resources in the most environmentally responsible ways possible and using them in the most sustainable ways possible. That is exactly what we are doing. We are investing, for example, in the latest carbon capture technologies and are supporting centres of excellence in Alberta and B.C. and coming up with innovative ways to turn carbon dioxide into commercial products, everything from concrete and plastic to fish food and even toothpaste. Members may have recently read about the promising pilot project just north of Vancouver, where they are actually grabbing carbon dioxide out of the air and turning it into a replacement for gasoline.

The bottom line is that the low-carbon economy is not just the challenge of our generation, it is the opportunity of a lifetime. We are seizing this opportunity and making Canada a global leader.

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

Mr. Speaker, I am happy to rise this evening to speak to the motion to concur in the second report of the Standing Committee on Natural Resources, a report on the future of and innovation in Canada's oil and gas sector. I will not comment on the arcane procedures and strategies in this place that see us debating a committee report a full two years after it was tabled in the House, but I am pleased to be able to take it off the shelf, dust it off and see what is in there, especially in light of more recent events.

The New Democrats submitted a supplementary opinion on the report when it was tabled, so I will be referencing that when I discuss some of our concerns. Our first concern was with the scope of the study and the subsequent report. We had hoped that there would have been a good discussion on the opportunities in other parts of the energy sector, a discussion about innovation, job opportunities, investments and particularly the emerging renewable energy industry. Renewable energy offers significant opportunities for the creation of good jobs in every community across Canada and much of what is happening there is the very definition of “innovation”, but, unfortunately, that topic was not included in the study.

During the study, committee members heard a lot about innovation in the oil and gas industry and some of it was truly encouraging. We heard from Canada's Oil Sands Innovation Alliance, COSIA. In the model that COSIA put forward, a group of private companies put aside the usual proprietary nature of research and information to create a true alliance in which all members have access to successful innovations that could result in oil extraction methods that are both more economical and better for the environment. That is really exciting to witness. Unfortunately, we heard that many of these innovations would only be implemented in new projects, projects that are waiting for higher oil prices before they will proceed. I truly hope that the COSIA model will be extended to other industry sectors because of the way it amplifies innovation through quick adoption throughout the sector.

I would also like to echo the sentiments of Gil McGowan, the president of the Alberta Federation of Labour, in that we have to be more than hewers of wood and drawers of water, that we need to develop value-added industries within the oil and gas and other resource sectors. He testified, “we should prioritize value-added development, because these kinds of investments not only create jobs directly in upgrading, refining, and petrochemicals but also create other jobs.” I would add that these investments create jobs that are not as subject to the volatility of global oil prices and create products that will be needed during our transition to a low-carbon economy.

We not only need to be innovative in how we extract and use resources, we need to be innovative in how we regulate the extraction of those resources. I think everyone here would agree that we now have a complete lack of public confidence in our energy regulation process. Nanos Research has published data showing that only 2% of Canadians think we are doing a good job in that regard.

Professor Monica Gattinger of the University of Ottawa testified before committee about her positive energy program, a research group dedicated to studying ways to depolarize the public debate around the oil and gas sector, particularly with regard to pipelines. The supplementary report states:

We believe it is essential that the lack of public confidence in the current environmental assessment process be addressed by permanent, meaningful changes to the National Energy Board process as soon as possible. New Democrats believe that the proposed interim measures introduced by the government are inadequate to address the results of a decade of Conservative dismantling of our environmental protection regime. We share the concern expressed by witness Professor Monica Gattinger that if the process goes ahead without the existing gaps being meaningfully addressed, the end result will further erode public confidence in the entire assessment regime.

The supplementary report goes on to say:

We are disappointed that the majority report fails to recommend a speedy review of the NEB process as this had been a clear electoral commitment of the new government. We are disappointed that the newly announced review panel process contains no timeline for actual legislative changes leaving the Conservatives inadequate process in place and creating uncertainty for all stakeholders. We recommend that the government move faster to make the necessary permanent changes to the NEB assessment process to restore public confidence and ensure that it is fair, neutral, science based and designed to meaningfully engage communities.

Where are we now? Shortly after this report was tabled in the House, the government granted permission for the Trans Mountain expansion pipeline to proceed, and a few weeks ago, the Federal Court of Appeal quashed those approvals. The court cited two significant failures: the government failed to consider the environmental impact of the project on coastal marine environment, and the consultations with first nations were completely inadequate. The government officials who met with first nations groups were mere note-takers who mistakenly believed that neither they nor cabinet had the authority to change the findings of the National Energy Board in the consultation process.

What did they think consultation was about? If they thought it was about noting the concerns of first nations and telling the first nations they had no power to change anything with regard to the pipeline, that is not consultation. Consultation is listening and then acting on concerns, trying to make accommodations.

Here is what our first supplementary report had to say about first nations consultation:

The Government must also act quickly to honour its obligations to a Nation to Nation relationship with Indigenous peoples including proper consultation and accommodation on all energy projects and the protection of Indigenous rights. During testimony, industry representatives were clear about the importance of fixing the consultation process sooner rather than later. The Government of Canada, as representative of the Crown, is responsible for these duties and while proponents of projects should be a part of this process, we believe these responsibilities should not be devolved to proponents to fulfill, as was too often the case under the former Conservative government. The Government must take a much larger, hands-on role in creating the environment in which meaningful consultation can take place.

The supplementary report goes on to support Bill C-262, which would ensure that federal legislation is consistent with the United Nations Declaration on the Rights of Indigenous Peoples. This bill was brought forward by our colleague in the NDP caucus, the member for Abitibi—Baie-James—Nunavik—Eeyou. While we are happy to report that Bill C-262 has passed through the House of Commons, we were disappointed to see that its spirit was not included in Bill C-69, legislation that would implement changes to environmental assessment and energy regulation in Canada.

Here we are two years after this report was tabled. The NDP was criticized back then for its call to redo the Trans Mountain expansion process under a proper system. Critics said it would take too long, maybe another year or two. Here we are two years later back at square one. The decision of the Federal Court of Appeal is a reminder that we have to put in the effort at the start. There are no shortcuts.

I mentioned Nanos Research earlier that noted the pitifully poor state of Canadians' confidence in our energy regulation system, but it did point out there was a way forward. The polling data demonstrated that if the Canadian government could show it was consulting properly with indigenous communities by asking local communities about these decisions and developing a meaningful consultation process, Canadians would have more confidence in the procedure. There is a way forward.

I just want to read out some of the testimony from a witness representing the Indigenous Health Alliance who criticized the National Energy Board in particular for not engaging indigenous peoples early enough in its regulatory approval processes. He recommended the following measures to improve indigenous community engagement, which come right out of the main body of the report we are discussing tonight:

Early engagement of indigenous communities in the NEB process—by involving indigenous communities in “the problems, solutions and implementation strategies of any resource development project at the earliest reasonable opportunity”;

Acknowledging the multidimensional nature of resource development issues—by recognizing that resource development projects involve broader considerations related to education, health, economic development, the environment, etc. He stated that a consultation process that does not acknowledge and address these issues clearly will ultimately fail to address the real problems;

Including community leadership, namely elders, in the decisionmaking process—by recognizing elders as a stakeholder group that should be directly involved in setting the project agenda;

Acknowledging that indigenous peoples are reasonable and pragmatic about resource development—they are likely to support approval processes that respect their community-based needs;

Involving communication and consultation experts—ones that could accurately interpret and convey community concerns to governments and project developers; and

Recognizing indigenous peoples as a “third level of government” in Canada—which is how they are functionally recognized by the court system.

We have significant natural resources in Canada and they have always been central to our country's wealth. However, we must ensure that these shared resources are managed in the best interests of all Canadians, with a focus on protecting the environment, ensuring meaningful consultation with affected communities and indigenous peoples and maximizing economic benefits.

[Earl Dreeshen, Conservative, Red Deer—Mountain View, AB]

Mr. Speaker, with respect to the discussions that were just presented, just reading through the footnotes we recognize that it was in early 2016 that these discussions took place. Recognizing that this report is two years old, there is a lot that has changed in the last two years. We thought we would be working with the U.S. and that carbon taxes would be in place. Keystone had not been approved. These are the kinds of things that are taking place. It is as though the member believes that this is a snapshot of today. What we are talking about is what set the stage for all of the discussions and the concerns, and especially the disastrous Bill C-69 that is being presented. I wonder if the member can bring us back to the mindset there was two years ago, and why some of these thoughts need to be updated.

[Paul Lefebvre, Liberal, Parliamentary Secretary to the Minister of Natural Resources]

Mr. Speaker, I am pleased to be speaking in today's debate in my new role as Parliamentary Secretary to the Minister of Natural Resources.

I am honoured by the trust that the Prime Minister has put in me. I am well aware that I have been entrusted with a critical portfolio. The member for Northumberland—Peterborough South set the bar very high.

I have learned some valuable lessons in my years representing the people of Sudbury. Thanks to them, I have a better understanding of the importance of natural resource development, the importance of doing things right, and the importance of making sure that everyone wins, including proponents, local communities and indigenous peoples, in the spirit of creating jobs while protecting the environment. The House committee came to the same conclusion two years ago in its report entitled “The Future of Canada's Oil and Gas Sector: Innovation, Sustainable Solutions and Economic Opportunities”.

I have always suspected that some people were a bit slow to grasp the importance of harmonizing environmental protection and economic prosperity. All the same, it is astonishing that we are only now debating a report that was released by the House of Commons Standing Committee on Natural Resources a full two years ago.

I want to take a moment to refresh the memories of those who may have forgotten what that report said and remind them of what our government has achieved.

The committee explored the future of Canada's oil and gas sectors by focusing on innovation, sustainable solutions and economic opportunities. After holding seven days of meetings and hearing from 33 witnesses, the committee produced its report, which contained a number of recommendations. Among other things, the report recommended that our government continue to support the viability and competitiveness of Canada's oil and gas sectors, foster investment and trade opportunities, promote a new era of indigenous engagement and public trust, establish a carbon pricing system, invest in technological innovation and establish the right policy framework.

Our government approved that report and we are responding to each of its recommendations.

Through Natural Resources Canada, we are investing in research and the demonstration of innovative technologies, including those aimed at reducing greenhouse gas emissions.

Two specific initiatives are worth noting: first, the $50-million oil and gas clean tech program, which is helping to reduce the sector's greenhouse gas emissions; and second, the $25-million clean energy innovation program, which seeks to reduce emissions in a number of areas, including methane and volatile organic compounds in the oil and gas industry. Future work will focus on enhancing the environmental and economic performance by significantly reducing methane emissions.

Through mission innovation, our government has committed to doubling our investment in energy technology research and development. More broadly, NRCan is working with Canada's Oil Sands Innovation Alliance and other partners to maximize the innovative potential for the oil and gas sector.

As I mentioned, the committee report also calls on the government to rebuild public trust in resource development. Our government has done just that, including by restoring many lost environmental protections and introducing modern safeguards to the Fisheries Act and the Navigation Protection Act.

We announced a $1.5-billion oceans protection plan, the largest investment in Canada's coasts and oceans in our history.

We have introduced Bill C-69, the most comprehensive overhaul of the environmental review process in a generation.

The Prime Minister has said many times that no relationship is more important to our government than the one with indigenous peoples. In particular, we recognize that consultation with indigenous communities affected by resource projects is critical to renewing a nation-to-nation relationship. That is why, with respect to the Trans Mountain expansion project, we extended the timeline to allow for deeper, more meaningful engagement.

When concerns were expressed, we responded by committing nearly $65 million to establish an indigenous advisory and monitoring committee that would oversee environmental aspects through the entire life of that project. This was unprecedented. As Chief Ernie Crey of the Cheam First Nation said, “Indigenous people won't be on the outside looking in. We'll be at the table and on site to protect our lands and water.”

That said, we know that when it comes to indigenous engagement, a higher bar must still be met. Our government will be announcing how we intend to meet that bar in the coming days.

Finally, the committee recommended that we establish the right policy framework to ensure a competitive oil and gas industry. We agree, which is why we are continuing to work towards a Canadian energy strategy together with our indigenous, provincial and territorial colleagues. It is why, through the Vancouver declaration, Canada's first ministers committed to working on carbon sinks and other measures under the pan-Canadian framework on clean growth and climate change.

That is why we have done what 42 other countries and 25 subnational jurisdictions have done: put a price on pollution. It is something the United Nations has called a necessary and effective measure to tackle the climate change challenge.

Taken together, our actions constitute an unprecedented level of support for the oil and gas industry, all while demonstrating that economic development and environmental prosperity can indeed go hand in hand.

The opposition issued a dissenting report and I will address it directly.

The report calls, among other things, for clear timelines for assessments. I suggest that members opposite read Bill C-69, which provides predictable timelines and clear expectations. This would allow proponents to better plan and engage earlier, leading to stronger proposals and greater certainty. The opposition's report also recommends that we encourage our national regulators to “make evidence-based decisions independent of government politicization”.

This concern for evidence-based decision-making is a welcome change of pace in Canada.

I can guarantee my opposition colleagues that we truly value science, facts and evidence. I am also pleased to mention that the dissenting report calls on the government “to publicly and unequivocally support strategic energy infrastructure approved by the national regulators”. Of course, that is exactly what we did by approving the Line 3 replacement project.

Finally, the report calls on the government to promote Canada's regulatory framework by instilling “public confidence in our national regulators”. We agree, which is why we built on the work of the National Energy Board to create a modern, world-class regulatory body for the 21st century, an organization that has the independence and accountability needed to oversee a solid, safe and viable energy sector, an organization that includes new public engagement and indigenous reconciliation processes, all while ensuring that good projects get the green light.

I will conclude by saying that I am always happy to talk about everything our government is doing for the oil and gas industry. We know that it is a vital contributor to our economy and an important part of our future. The fact is that the recommendations in this report are already being implemented. Our government will continue to look forward, towards a very bright future for our oil and gas industry and towards the prosperity it will help ensure for all Canadians.

Trans Mountain Pipeline Project Act

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Mr. Speaker, I am very pleased to rise today to add my comments to this very important debate on S-245. I would like to note the comments of my colleague for Lakeland as she kicked off the debate. She very articulately laid out this project, the time frames and some of the history. I will not redo what she said but I hope to add some new comments to the debate which should be reflected upon.

Even though the landscape has changed since this initial private member's motion in the Senate was introduced, passed and moved to us, it still remains a very important bill for us to pass in the House. Again, the landscape has changed considerably, but we must and should pass it.

I know that in an ideal world we would not have any dependence on fossil fuels. However, we continue to have that dependence. It is not just the gasoline for our car or the jet fuel for the planes that fly us to Ottawa and back home. Over 6,000 products require the use of oil.

In the short and medium term, the world, not just Canada, will continue to rely on oil and its products. I do have a belief that there will be technological advances that will create some solutions.

Dave McKay, the president of RBC, said, “Canadians are polarized about oil and gas when we should be focused on how cleanly we can produce it, how safely we can transport it and how wisely we can consume it.” Those are very important words.

Alberta is working very hard on how to cleanly produce. The discussion we are having today is how we can safely transport and then it is up to every individual to look at how wisely to consume it.

The government has decided to put all its eggs into one basket. The tanker moratorium simply means that people from Lac du Ronge and Eagle Spirit have been cut off, with no consultation on the opportunities they thought might be there for their communities. Of course, that would be a northern route. This bill is currently in the Senate. Again, it cuts off opportunity to get oil to the sea water.

Bill C-69 has been called the “never build another pipeline again” bill. I tend to agree. Changes proposed in Bill C-69 mean that another pipeline will never be built in Canada again. That is a huge problem. We can look at what is happening in the States and across the world. We basically have landlocked resources. In the short and medium term, we will be uncompetitive.

Having a “no pipeline” bill is important. However, what people do not realize is this. Look at the rail traffic. I live on a rail line. I was at a ceremony this week for a change of command for the Rocky Mountain Rangers. Fifteen metres from us was a rail line, which goes straight through Kamloops. Tanker car after tanker car travel right through town and along the Fraser River. It had already come down the Thompson River while salmon were spawning.

When we talk about transportation safety, it is relatively safe. However, it is more safe to transport oil through a pipeline than by tanker cars, which travel right through the middle of town and along the spawning channels. We have had wildfires. We have seen the instability of slopes when rains come. We are having washouts. There is big concern about the enormous increase in the tanker cars that go through our communities.

This does not even address the issue that we hear all the time from our grain farmers and mining folks about the bottleneck on the rail lines. As the rail capacity increases for tanker cars to transport oil, we bottleneck our supply system, our supply chain. This is a huge problem.

Northern gateway and the TMX is really a tale of two pipelines, because it has been largely decision-making by the current government.

Northern gateway went through its process and it was approved by the former government. A court decision came out and it was very clear. The Liberal government received that court decision. It said that some things needed to be done to improve consultation with first nations.

The decision was received by the current Liberal government. Every time those members suggest that they inherited a flawed process, it is quite clear that it was not the process but it was the execution of the process with northern gateway. It became much clearer that they did not learn any lessons after reading that report, in spite of the fact that they said they had. The Liberals completely botched their execution with respect to the duty to consult on the Trans Mountain pipeline.

The first decision said they could not simply be a note-taker. The Liberals had that information. What did they do? They sent someone to take notes. How is that looking at a decision and implementing it?

The minister stood up time after time and said that there was no relationship more important than the government's relationship with first nations. He said they were engaged, that they have had the best process ever, and yet his government did the exact same thing. Someone was sent to take notes and the government did nothing in terms of dealing with the issues at hand.

The Liberals failed. They failed as plaintiffs. Six communities took them to court with respect to the duty to consult. More important, they also failed 43 communities that had benefit agreements and were looking forward to the opportunities that would come with the construction of this pipeline going through their territory.

About one-third of the pipeline goes through the riding that I represent, which includes many communities as well as many first nations communities, the majority of which had signed benefit agreements.

After the decision came down I met with a number of first nations and other communities. One group had to completely redo its budget. It had counted on the benefits from this agreement. This group had to wonder what it could slice and dice out of its budget because it was faced with brand-new circumstances.

I met with another group called Simpcw Resource Group. As construction happened, and in the past, this company had been responsible for returning the disrupted land from the construction of a pipeline back to its natural vegetative state.

Companies are planting trees as we speak, planning on the economic opportunities. Construction camps are being planned. Cooks were looking forward to opportunities. These are real people. These are real jobs.

The fact that the Liberal government could not look at a court decision that came to them in 2016 and do the job properly is absolutely shameful. It failed to execute. When the government says it had a flawed process given to it, it is absolute nonsense. The government was told what it needed to do in order to do it properly. Please, do not ever let them say they were provided with a flawed process. The court decision was absolutely clear that the process was appropriate, it was the execution that was flawed.

This are real consequences to real people. This matters. I hope that when people look at this they will look at it as a benefit for Canada, not for the benefit of a small area only. This would benefit all of Canada.

I encourage all members of the House not to just look at their concerns and interests but to look at the big picture, look at it for the benefit of Canada.

[Randy Boissonnault, Liberal, Edmonton Centre, AB]

Mr. Speaker, it is a pleasure to rise today to speak to Bill S-245 at second reading and to do so as a proud Alberta MP. I am very proud of my home province and my city of Edmonton. It is a place that values hard work and entrepreneurship. In fact, if people come to my riding of Edmonton Centre, they will see on one of the buildings there a huge mural that says, “Take a risk”. There is nothing more Edmontonian that anyone could possibly do. It is a place that celebrates inclusion, a place that believes everyone should have the opportunity to succeed. The Edmonton Metropolitan Region has brought innovation and resource development to new levels, once thought impossible.

Members may know that I grew up in Morinviille. Close members of my family and dear friends work and have worked in the oil sands, and I know first-hand the importance of resource development to people's lives and livelihoods. I agree categorically with what I hear at doors every week, the keen and deep interest in getting our resources to market and ending the $15-billion-a-year haircut that our resource products get because we have only one customer, the United States.

These are the same reasons that our government approved the Trans Mountain expansion project in the first place. We know that this project holds the potential to create thousands of good middle-class jobs, to strengthen the Canadian economy and generate billions of dollars in new revenues for all orders of government, and to ensure that we get a fair price for one of our country's most valuable resources. It would also open up new opportunities in indigenous communities across B.C. and Alberta, which support the project. There are also 43 indigenous communities that have signed mutual benefit agreements.

It is for all of these reasons and many more that we believe that the TMX project is in Canada's national interest and why we purchased its assets as a sound investment in Canada's future. The existing line will generate $300 million in earnings every year regardless of the expansion. Therefore, when legislation comes before us suggesting that, “the Trans Mountain Pipeline Project and related works [are declared] to be for the general advantage of Canada”, it is hard to disagree. We have said as much repeatedly in every part of the country, and yet it is not enough that the pipeline project expansion proceed. It must proceed in the right way, and that includes fulfilling our government's commitments to protecting the environment and renewing Canada's relationship with indigenous peoples.

The Trans Mountain expansion project is in the situation it is in today because of the failures of the previous Conservative government. We promised legislation that would move Canada forward and brings more, not less, environmental protection and respect for indigenous rights. Have the Conservatives learned that lesson? No. Despite court ruling after court ruling, they still fail to understand the importance of having strong and meaningful frameworks for pipeline approval in place. Ten years of Conservative failure to get our energy to other markets does not serve the Canadian people and does not serve the energy industry.

With Bill C-69, our government will move Canada's projects forward based on doing things the right way, and without cutting corners the way Conservatives did for a decade. When will the Conservatives learn that Canada cannot legislate its way out of its constitutional obligation to consult indigenous peoples and to protect the environment? Only they know the answer to that. On this side, we know that cutting corners has not worked in the past and will not work now or in the future.

The Federal Court of Appeal found that the government's assessment of the project left room for improvement. Potential environmental effects of marine shipping were not properly considered by the NEB, which was a result of a flawed process created by the Conservatives. It also found that while we had an acceptable framework for indigenous consultation, one that we brought forward in our interim approach to environmental assessments, the Crown did not properly execute that phase of the process.

That is why today the Minister of Natural Resources announced an important step in our path forward. He said that the government has instructed the National Energy Board to reconsider its recommendation, taking into account the effects of marine shipping related to the project. We will be directing the NEB to report within 22 weeks. During this time, the NEB will hear from Canadians and provide participant funding for indigenous and non-indigenous groups. We will present to the NEB recent government actions to protect the southern resident killer whales and to implement the oceans protection plan. We are committed to ensuring that the National Energy Board has the expertise and capacity to deliver the best advice to the government. To that end, we intend to appoint a special marine technical advisor to the National Energy Board.

Our government has been clear about its vision for resource development, a vision built on three key tenets: creating good, middle-class jobs; protecting the environment; and indigenous partnerships.

We see the Trans Mountain expansion project as part of this vision, but the vision is much bigger than that. We are committed to building a long-term energy vision for Canadians, one that transitions Canada to a clean growth economy. Canada is now a global leader in clean tech and we are poised to be a clean energy leader as well.

We have worked across sectors and across the country to build Bill C-69, with industry and environmental groups. The bill moves past the Conservative way of ignoring indigenous peoples and the environment, and proposes a modern, new way to review major resource projects and a new framework to recognize and implement indigenous rights in a spirit of respect, co-operation and collaboration.

Our vision is of more than a single pipeline. It is about creating jobs for Canadians and charting a path for Canada's long-term future, a new course that recognizes that the economy and the environment must go hand in hand.

The Federal Court of Appeal confirmed that we had made a solid start with the interim principles we introduced back in January 2016, but it said there was more work to be done. We understand that. That has been our focus since we formed government in November 2015.

That is why we not only signed the Paris Agreement on climate change, but also helped shape it as an ambitious and balanced plan for ensuring that the environment and economy are equal components of a single engine that will drive enduring prosperity.

That is why we also sat down with the provinces, territories, and indigenous peoples to draft the pan-Canadian framework on clean growth and climate change, a blueprint for reducing emissions, spurring innovation, adapting to climate change and creating good middle-class jobs across the country.

That is why we are making long-term investments in clean technology and green infrastructure. That is why we are providing unprecedented levels of support for science and basic research. That is also why we are making a historic investment to protect Canada's oceans, marine life and coastal communities.

The $1.5-billion oceans protection plan will strengthen the eyes and ears of the Canadian Coast Guard, enhance our response capabilities in the unlikely event of a spill and support innovative marine research. It will also reinforce new important partnerships with indigenous peoples. That includes the joint creation of an indigenous advisory and oversight committee to assess the safety of the TMX project throughout its life cycle.

This is in addition to our efforts to improve indigenous peoples's access to financing for economic development, professional training and business opportunities arising from the pipeline expansion. We recognize the importance of Canada's energy sector and its impact on both Canada's economy and the environment.

The Trans Mountain expansion project is a key element, part of a common-sense approach that includes the diversification of our energy markets, the improvement of environmental safety and the creation of thousands of good jobs for the middle class, including good jobs for indigenous communities.

However, we have to do this properly, by keeping our commitments to reconciliation with indigenous peoples and to environmental protection, and as part of our plan to build a better future and a better Canada for everyone. That is what I am proud to support today.

The Conservative Party can continue to attempt to mystify Canadians with bafflegab, blather and blarney. Our government will do the right thing and be respectful, rigorous and get this done in the right way.