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

This bill was last introduced in the 42nd Parliament, 1st Session, which ended in September 2019.

Sponsor

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill.

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.

Elsewhere

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

Votes

June 13, 2019 Passed Motion respecting Senate amendments to Bill C-69, 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
June 13, 2019 Failed Motion respecting Senate amendments to Bill C-69, 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 (amendment)
June 13, 2019 Passed Motion for closure
June 20, 2018 Passed 3rd reading and adoption of Bill C-69, 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
June 20, 2018 Passed 3rd reading and adoption of Bill C-69, 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
June 19, 2018 Passed 3rd reading and adoption of Bill C-69, 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 (previous question)
June 11, 2018 Passed Concurrence at report stage of Bill C-69, 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
June 11, 2018 Failed Bill C-69, 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 (report stage amendment)
June 11, 2018 Failed Bill C-69, 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 (report stage amendment)
June 11, 2018 Failed Bill C-69, 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 (report stage amendment)
June 11, 2018 Failed Bill C-69, 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 (report stage amendment)
June 11, 2018 Failed Bill C-69, 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 (report stage amendment)
June 11, 2018 Failed Bill C-69, 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 (report stage amendment)
June 6, 2018 Passed Time allocation for Bill C-69, 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
March 19, 2018 Passed 2nd reading of Bill C-69, 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
March 19, 2018 Passed 2nd reading of Bill C-69, 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
Feb. 27, 2018 Passed Time allocation for Bill C-69, 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

Impact Assessment ActGovernment Orders

June 12th, 2018 / 11:20 p.m.


See context

Northumberland—Peterborough South Ontario

Liberal

Kim Rudd LiberalParliamentary Secretary to the Minister of Natural Resources

Madam Speaker, it is an honour to rise again in the House to speak to a piece of legislation that represents a major turning point in how Canada develops its vast resources.

After listening to the discussions over the past while, it is important that we come back to a sense of reality. This is legislation that strengthens investor confidence, restores public trust, advances indigenous reconciliation, and enhances environmental performance, all while ensuring that good resource projects get built in a timely, transparent, and responsible way. It is legislation that has also been improved by committee review, the input of its witnesses, and the advice of its members.

Today, we have an amended bill that not only reflects, but confirms, our belief that Canada works best when Canadians work together. It is an even better bill that delivers on our government's vision for Canada in this clean growth century, and one that supports our goal of making Canada a leader in the global transition to a low-carbon economy.

This is critical because the world is at a pivotal moment when climate change is one of the greatest challenges of our generation, and when marrying the strength of prosperity with the protection of our environment is the new imperative.

Bill C-69 would do that. It recognizes that Canada was built, in large measure, through investments and innovation in the natural resource sectors. It addresses our need for a new and more effective approach to environmental assessments and regulatory reviews. It helps to ensure Canada capitalizes on a new wave of resource development that could top $500 billion over the next 10 years.

Canadians get that. They told us so through our extensive pre-consultations on Bill C-69, in response to our discussion paper, and again in committee. They also stepped forward in unprecedented numbers to join Generation Energy, our national discussion on Canada's energy future that culminated in a two-day forum in the minister's home city of Winnipeg just last fall.

What did we hear? Hundreds of thousands of Canadians made it clear to us that they want a thriving, low-carbon economy. They want Canada to be a leader in clean technology and innovation. They want an affordable and reliable energy system, one that provides equal opportunities to Canadians without harming the environment. They want smart cities with integrated energy systems, increased energy efficiency, and low-carbon transportation. They want rural and remote communities to have better options than diesel for generating electricity or for heating their homes.

They also told us they want regulatory reform that includes increased transparency and more communication with Canadians to restore public confidence. They want regulatory reform that ensures indigenous peoples are part of the decision-making, and that they benefit from the opportunities that resource development creates. They want regulatory reform that supports a competitive and sustainable resource sector, one that creates good jobs and shared wealth. They want regulatory reform that takes the politics out of decision-making so that science, facts, and evidence carry the day. We agree with all of that.

This is why we created a 14-member Generation Energy council, which came out of the two-day forum, to maintain the momentum and develop recommendations on how best to move forward on everything we had heard. That council is due to report shortly, but much of the optimism of Generation Energy, and many of the ideas from it, have already found their way into Bill C-69.

The amended bill also reflects what committee heard from indigenous peoples, and includes an even clearer commitment to the United Nations Declaration on the Rights of Indigenous Peoples by enshrining it in the bill's preamble and by providing greater transparency regarding the way indigenous knowledge is used and protected.

Other amendments respond to issues important to industry, including concerns that the length of a project review could cause uncertainty. The proposed amendments address this by establishing a baseline of 300 days for review panels involving federal regulators, and a timeline of 45 days to appoint panel members; by improving the transition provisions so that there are clear and objective measures to confirm our commitment that no project will go back to the starting line; by providing new incentives to encourage the proponents of existing projects to proceed under the new impact assessment regime; and by clarifying that final decisions on resource projects are based on, and do not just consider, the assessment report and other key factors set out in the legislation, including both positive and negative impacts.

As amended, Bill C-69 would also address concerns raised by environmental groups to strengthen public participation and transparency. These include placing additional emphasis on meaningful participation; ensuring opportunities for public comment are always part of the review process for projects on federal lands; posting a broader range of information online and for longer; fine-tuning the role of federal life cycle regulators on a review panel, while ensuring impact assessments continue to benefit from their expertise; and the list goes on.

The Standing Committee on Environment and Sustainable Development has done excellent work, and its amendments only build on the legislation's strengths. The proposed changes capture the spirit of a bill that will not only improve the way Canada reviews major resource projects, but can ultimately redefine the way projects are even contemplate.

By providing project proponents with clearer rules, greater certainty, and more predictability, we also ensure local communities have more input and indigenous peoples have more opportunities in the resource sectors.

For example, Bill C-69 would help us ensure project proponents and their investors would know what was expected of them from the outset, by introducing an early engagement and planning phase to identify the priorities and concerns of each new project. This would allow resource companies to plan better, engage earlier, and develop smarter, all of which would bolster their competitiveness, enhance performance, and move Canada to the forefront of the clean growth economy.

At the same time, our new approach would rebuild public confidence by introducing greater transparency and stronger protections for the environment, while advancing reconciliation with indigenous peoples and giving Canadians a more meaningful say. Of course, none of this guarantees unanimity. We cannot legislate agreement with every decision a government makes. However, with Bill C-69 and its amendments, Canadians would always know their voices were heard, their evidence was considered, and the process was fair.

For Canadians tuning in for the first time, Bill C-69 would do all of this by taking a more comprehensive approach to resource development, starting with the principle of “one project, one assessment”. To support this, our legislation proposes the creation of a new government agency for impact assessments. The impact assessment agency of Canada would be responsible for a single integrated and consistent process that would include the specialized expertise of federal regulators, which is where our simultaneous creation of a new, modern, and world-class federal energy regulator would come in.

The Canadian energy regulator would replace the National Energy Board and would be given the required independence and proper accountability to oversee a strong, safe, and sustainable Canadian energy sector in this clean growth century, starting with five key changes: more modern and effective governance; increased certainty and timelier decisions for project proponents; enhanced public consultations; greater indigenous engagement and participation; and stronger safety and environmental protections. The amendments support these goals by proposing changes to respond to such things as the evolving landscape for indigenous rights and new technologies that promote greater transparency and broader public engagement.

Before I highlight some of the important ways the amended bill would do these things, it is useful to take a step back and talk about the motivations behind our plans for a new federal energy regulator.

When our government came to office, we started from the very simple premise that while the National Energy Board had served Canadians well, it needed modernization to reflect the fact that its structure, role, and mandate had remained relatively unchanged since the National Energy Board Act was first introduced in 1959.

That is what the Canadian energy regulator act would do. It proposes a new federal energy regulator with clearer responsibilities, greater independence, and more diversity. For example, we would separate the regulator's adjudicative function, which demands a high degree of independence, from its daily operations, where a high degree of accountability is required.

We would do this by creating a board of directors to provide oversight, strategic direction, and advice on operations, while a chief executive officer, separate from the board, would be responsible for day-to-day operations. In addition, there would be a group of independent commissioners responsible for timely, inclusive, and transparent project reviews and decision-making, the very things Canadians have been telling us and that witnesses told the committee.

The amended Bill C-69 also enhances the diversity and expertise of the new regulator's board of directors and commissioners, with a fair and transparent recruitment process to identify the most qualified candidates; a new emphasis on expertise in indigenous knowledge as well as municipal, engineering, and environmental issues; and a requirement for at least one member of the board of directors and one commissioner to be first nations, Métis, or Inuit.

The amended legislation proposes to restore investment certainty by making regulatory reviews more timely and predictable without compromising on public input, indigenous engagement, or environmental protection.

I have already touched on some of the key changes proposed by the committee: establishing a baseline of 300 days for review panels, ensuring panel members are appointed within 45 days, and confirming that no existing projects are sent back to the starting line.

These measures build on the bill's underlying principle of one project, one assessment and the new Impact Assessment Agency of Canada's responsibility for coordinating consultations with indigenous people.

Bill C-69 proposes that all of this work will be carried out in closer collaboration with the new Canadian energy regulator, making its reviews clearer, its powers more defined, and its timelines for decision shorter, more predictable, and better managed, with fewer opportunities to pause the ticking clock.

In addition, the new federal regulator would retain final decision-making authority for minor administrative functions such as certain certificate and licence variances, transfers, and the suspension of certificates or licences. The Canadian energy regulator act would also restore the regulators' pre-2012 decision-making authority to issue a certificate for major projects subject to cabinet approval. This change is important because it removes the federal cabinet's ability to overturn a negative decision from the CER, but maintains cabinet's right to ask commissioners to reconsider their decisions.

Other amendments in the bill would advance our commitments to greater public consultation and indigenous engagement. The CER act already featured more opportunities for Canadians to have their say including the elimination of the NEB's existing test for standing; explicit consideration of environmental, social, safety, health, and socio-economic issues, as well as gender-based impact on any effects on indigenous peoples; expanded participant funding is also extended to new activities; and more opportunities outside of the traditional hearing process for public debates and discussions.

The amendments to the Canadian energy regulatory act offer greater clarity.

On indigenous knowledge, for example, our new protections would be enhanced through a requirement for consultations before any details could be disclosed and the minister would be able to place conditions on their disclosure based on those consultations. The bill would now also require, rather than just provide, options for a committee to provide advice on enhancing indigenous peoples involvement under the Canadian energy regulator act. Other changes would ensure that public and indigenous participation is more meaningful and that Canadians have the information, tools, and capacity to contribute their perspectives and their expertise.

Finally, the amendments on Bill C-69 expand on our efforts to clarify ministerial discretion and ensure stronger safety and environmental protections. For example, through committee's proposed changes to the Canadian energy regulator act, the public decision statements would clearly demonstrate how a report formed the basis for the decision, and how key factors were considered. As well, future exemption orders would only be made to ensure safety and security, or for the protection of property or the environment.

These are in addition to existing provisions in the CER act, such as assigning new powers to federal inspection officers so they can act quickly and, if necessary, place a stop work order on any project that is operating unsafely or falling short of agreed to conditions, requiring that companies increase the protection of their infrastructure, clarifying the regulators oversight role to include enforcing standards related to cybersecurity, and authorizing the federal energy regulator to take action to safely cease the operation of pipelines in cases where the owner is in receivership, insolvent, or bankrupt.

Through Bill C-69 and its amendments, we see legislation designed for the Canada we have today and, indeed, the Canada we want tomorrow. The Canadian energy regulator act is an important piece of that, helping us to diversify Canada's energy markets, expand our energy infrastructure, and drive economic growth through timely decisions that reflect our common values as Canadians.

I hope all members of this House will support this important legislation as we seek to create the shared prosperity we all want, while protecting the planet we all cherish.

Impact Assessment ActGovernment Orders

June 12th, 2018 / 10:50 p.m.


See context

Conservative

Michael Chong Conservative Wellington—Halton Hills, ON

Madam Speaker, Bill C-69, in front of us today, has a lot of different changes to current acts of Parliament, but also introduces new acts of Parliament. While I support one of the principles in the bill, which is the “one project, one assessment” process for major natural resource projects, there are too many problems with this bill for me to support it.

In particular, I want to focus on the new impact assessment act that the bill creates. First and foremost, the bill will not streamline, and make quicker, assessments for projects designated to be included in the project list. While the government says that the proposed impact assessment act would reduce the current legislated timelines for reviewing projects from 365 days to a maximum of 300 days for assessments led by the new review agency, and from 720 days to a maximum of 600 days for assessments led by a review panel, it is failing to acknowledge that while these timelines are shorter, the new legislation also introduces a planning phase ahead of an assessment led by either the review agency or the review panel. That planning phase can last up to 180 days.

In fact, this legislation will actually increase the amount of time that it takes for major natural resource projects to be reviewed under a federal environmental assessment. Furthermore, while the timelines put in place for the actual impact assessment are shorter, the timelines in the current legislation in front of the House can be extended by the Minister of Environment and by the cabinet, repeatedly.

There is nothing in this legislation to suggest that the process by which we review proposed projects will be shorter, in fact it suggests that it is actually going to be longer. The legislation in front of us will not actually lead to more efficient and less costly assessments for companies looking to invest in Canada's natural resource sector. In fact, the evidence in the bill is that it is going to be much more expensive for companies to make these applications, because the government has proposed to substantially expand the number of criteria that the review agency or review panel has to take into consideration when it is assessing a project. It does not just have to take into account environmental factors. It now also has to take into account health, social, and economic impacts, as well as impacts on other issues, and these impacts over the long term.

When we take into account this vastly expanded criteria and that it is vastly expanded over the long term, it is clear that companies are going to have to spend a lot more money preparing for these applications and working through the application process.

Proposed section 22 of the impact assessment act lists more than 20 factors that have to be considered in assessing the impact of a designated project. For example, there is a reference to sustainability and to the intersection of sex and gender with other identity factors. These are just some of the added criteria that the government has added to the process, which is just going to increase the cost and complexity for proponents. It is not only going to be a much longer process for proponents to go through; it is also going to be a much costlier process.

This is a big problem, because we have a problem in Canada with attracting, not just domestic but foreign investment for natural resource projects. In fact, Statistics Canada recently, this past spring, highlighted that there has been the biggest drop in foreign direct investment into this country in eight years. Last year saw the deepest plunge in foreign investment in this country since the deep, dark days of 2010, when we were just coming out of the recession of 2009 caused by the global financial crisis of 2008.

We have seen a massive plunge in foreign direct investment, a massive drop in investors willing to invest in Canadian companies. In fact, last year, for the second year in a row, we saw more foreign selling of Canadian companies than purchasing of Canadian companies. This has led to a drop in investment, particularly in the oil sector, with the commensurate drop in jobs and growth.

However, there is another problem with the bill that I want to highlight, which has to do with the designated project list. In other words, there is a problem in how certain projects get designated for an environmental assessment and how other projects do not. It remains to be seen with the proposed legislation whether or not the government will get it right in regulation.

Earlier this year, the government announced that it was going to undertake consultations with a view to help revise the regulations concerning the designated projects list. The Liberals said they would be coming forward with new regulations under the proposed act, and I hope they read the Hansard transcript tonight of the debates here in the House of Commons to ensure that our input is incorporated, if the bill does pass, in these new regulations.

The problem is one of inequity and unfairness from a whole range of perspectives. If a mine is proposed in western Canada, let us say in Alberta, under both the pre-2012 rules and the current 2012 rules, and potentially under the proposed legislation, it would undergo a federal environmental assessment. However, if that same mine was proposed in southern Ontario, mines that we often call “gravel pits” or “quarries”, it would not undergo a federal environmental assessment.

I will give members an example of this. In 2011, a mega-quarry was proposed in southern Ontario by an American company that had acquired over 2,500 acres of prime farmland in Dufferin County. That American company had acquired the equivalent of 10 square kilometres of land to build an open pit mine. Under the pre-2012 rules and the 2012 rules, and potentially under this proposed legislation, the federal government said that it did not require a federal environmental assessment, yet if that same 10 square kilometre mine was proposed in Alberta, let us say an open pit bitumen mine, a federal environmental assessment most certainly would have been required. This is an example of the unfairness of the current and potentially the proposed system the federal government has.

If one builds a mine to extract iron ore or bitumen in western Canada, one would undergo a federal environmental assessment, but if the same mine is proposed in southern Ontario, then do not worry, the government will turn a blind eye and not have it undergo that federal environmental assessment. Therefore, it is not just treating one sector of the economy different from another, the oil and gas sector, or the iron ore sector compared with the aggregate sector, but it is also treating one region of the country differently from another, and that is not fair. I hope that the government, in undertaking these consultations, takes that into account.

It is also not fair to the environment when a 10 square kilometre open pit mega-quarry is proposed for southern Ontario, which would have plunged 200 feet deep and pumped 600 million litres of fresh water out of the pit each and every day. It should undergo the same federal environmental assessment that a mine of similar size would undergo in western Canada. It should undergo that, because in southern Ontario we have the most dense biosphere in the entire country. There is all the more need to protect this dense biosphere, which is under greater threat than any other part of the country largely due to the growing urban populations we see in the Montreal, Quebec City, Ottawa, Windsor, and Toronto corridor.

I hope the government's yet-to-be-created project list, whether it is based on the current legislation or the proposed legislation, treats all sectors of the economy and all regions of the country fairly, and I hope the department is incorporating this input as it comes forward with new regulations.

There is yet another problem with the proposed legislation before the House, and it plays into a broader pattern of the government, and that is of political interference. As the member for St. Albert—Edmonton just pointed out, the proposed legislation would allow the minister a veto power over natural resource project applications. This is unprecedented in this country. Until the Liberal government came to power, not a single natural resource project had been rejected or approved by the federal cabinet before the federal environmental assessment process had been completed, and not a single federal environmental assessment process had been overruled by federal cabinet.

In other words, up until this government, the federal cabinet accepted every single recommendation coming out of a federal environmental review process over the many decades that it was in place. The current government's rejection of the northern gateway pipeline was the first time the federal cabinet had stopped the process for the review of a major natural resource project before allowing that process to be completed and before allowing the cabinet to accept fully the recommendations of that process.

Here, in this legislation, we see a repeat of that pattern. They are proposing to give the minister a veto power. Before an impact assessment can begin, the minister will have the power not to conduct an assessment if the minister believes the proposed project would cause unacceptable effects. That is so broad a criteria that a person could drive a Mack truck through that. There again we see the politicization of processes that were once arm's length, quasi-judicial, and left to the professional public service.

Another example of this politicization of what was once performed by the professional public service, by quasi-judicial entities, is Bill C-49. Bill C-49 gives the Minister of Transport a political veto over a review of joint ventures by an airline. Up to Bill C-49, and for many years, any airline that wanted to enter into a joint venture had to undergo a review by one of the premier law enforcement agencies in the world, the Competition Bureau, to ensure that there were no anti-competitive results from a joint venture. In fact, when Air Canada proposed a joint venture with United Airlines some years ago, the Competition Bureau said no to the original proposal for that joint venture and said they had to pull out of that joint venture a number of cross-border routes because they would be deleterious to competition, and because it would increase prices for consumers and for businesses across Canada.

What the current government has done through Bill C-49, which it rammed through the House and Senate, is it has given the Minister of Transport the ability to veto that process through a broad definition of public interest to bypass the Competition Bureau's review of a joint venture, and to rubber-stamp a joint venture in the interests of the airline and against the competition interests of consumers in this country. With the recent passage of Bill C-49, Air Canada has announced a joint venture with Air China. I do not think that is any coincidence.

Thus, these are just a few examples of how the government is politicizing the process for law enforcement of our competition laws and for the review of major natural resource projects that no previous government has ever done.

Finally, I want to critique the Liberal government's general approach to environmental issues. The Liberals have created a climate of uncertainty. On pipeline approvals, they have created uncertainty. That is why Kinder Morgan has announced that it is pulling out of Canada and why it sold its assets to the Government of Canada. They have created a climate of uncertainty in the business community. That is why, as I previously mentioned, Statistics Canada, this spring, reported that foreign investment into Canada plunged last year to its lowest level in eight years. There has been an exodus of capital from the country's oil and gas sector. Statistics Canada reports that capital flows dropped for a second year in a row last year, and are down by more than half since 2015. Net foreign purchases by foreign businesses of Canadian businesses are now less than sales by those foreign businesses, meaning that foreign companies sold more Canadian businesses than they bought.

On climate change, they have created a great deal of uncertainty.

The Liberals came with big fanfare with their price on carbon, but they have only priced it out to $50 per tonne to 2022. They have not announced what happens after 2022. We are four short years away from 2022, and businesses and consumers need the certainty of what happens after 2022.

Furthermore, the Liberals have created uncertainty because $50 per tonne does not get us to our Paris accord targets. In fact, last autumn the Auditor General came forward with a report saying that Canada will not meet its Paris accord targets of a 30% reduction in greenhouse gas emissions from 2005 levels by 2030 with the $50-per-tonne target. He estimated that we are some 45 megatonnes short of the target.

The Liberals have created uncertainty with their climate change policy because they have been inconsistent on climate change policy. They are inconsistent with how they treat one sector of the economy versus another. For example, they demand that projects in the oil and gas sector take into account both upstream and downstream emissions, while not requiring projects in other sectors of the economy to do the same.

They are inconsistent with climate change policy in the way they treat one region of the country versus another. The Auditor General's report from a week ago, report 4, highlights the inconsistency in the way they treat central Canadians versus the way they treat westerners.

For example, the Liberals tell western Canadian oil and gas producers that climate change impacts need to be part of the approval process of any major natural resource project, and yet they turn around, and one of the first decisions they make as a government is to waive the tolls on the new federal bridge in Montreal, a $4-billion-plus bridge. The Auditor General reported, in report 4 last week, that waiving the tolls will result in a 20% increase in vehicular traffic over that bridge, from 50 million to 60 million cars and trucks a year, an additional 10 million vehicles crossing that bridge every year, with the attendant greenhouse gases and pollution that this entails.

The Liberals tell companies and Canadians on one side of the country that they have to take into account greenhouse gas emissions when they propose a new project in the oil and gas sector, but when the government builds a brand new federal bridge in Montreal for $4 billion-plus, it is not going to take into account those greenhouse gas emissions. In fact, it will waive the tolls, which is going to lead to a 20% jump in traffic, with the attendant greenhouse gas emissions that this entails.

Finally, the Liberals have created a climate of uncertainty by their failure to realize that our income taxes are too high. The government talks a good game about the environment and the economy, but the facts speak otherwise. They blew a once-in-a-lifetime opportunity to reduce corporate and personal income taxes. They failed to seize the opportunity of using the revenues generated by the price of carbon to drive down our high corporate and personal income taxes. They also failed to seize the opportunity to reform our income tax system to reduce its complexity and its distortive nature.

Our system was reformed in 1971 by the government of Pierre Trudeau. It was reformed again in 1986 by the government of Brian Mulroney. It has been over 30 years since we have had any significant income tax reform to our personal income tax system or our corporate income tax system, and the Liberals blew the chance to do it, even though they promised to take a look at tax reform in their very first budget.

The government talks a good game on the environment and the economy, but the facts say otherwise. It is a story of a missed opportunity, and that is why I cannot support this bill.

Impact Assessment ActGovernment Orders

June 12th, 2018 / 10:50 p.m.


See context

Conservative

Kelly McCauley Conservative Edmonton West, AB

Madam Speaker, the member brings up very valid points about investment in Canada.

I will read from an article from Bloomberg today, which states, “Unlike portfolio investment, foreign direct investment is considered a stable source of funding that comes with the additional benefits of a transfer of know-how. Instead, an increasing amount of Canada’s funding needs are being met by short-term funds denominated in foreign currencies”, meaning loans, “which makes the country more vulnerable to a sudden loss of interest from foreign investors.” Bloomberg is saying that Canada is relying on debt for growth and not foreign investment.

It notes in this article that the amount that the Government of Canada is giving Kinder Morgan to buy Trans Mountain is greater than the entire investment in Canada in the last quarter of last year. Bill C-69 is only going to pile on the flight of capital from Canada.

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June 12th, 2018 / 10:50 p.m.


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Conservative

Michael Cooper Conservative St. Albert—Edmonton, AB

Madam Speaker, the Minister of Environment stated that one of the objectives of Bill C-69 is to increase investor confidence. The hon. member for Edmonton West pointed out that under Bill C-69, the Minister of Environment has the discretion to cancel a project at any point, including during the planning stage before any environmental assessment is conducted, before any economic impact is studied, and before any scientific analysis is done. How does that square with increasing public confidence and investor confidence? It seems to me to be some kind of joke.

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June 12th, 2018 / 10:45 p.m.


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Conservative

Kelly McCauley Conservative Edmonton West, AB

Madam Speaker, if only the Liberals were as efficient in governing as they are in skullduggery around such issues, Canada would be a much better place.

My colleague brings up some very valuable points. The U.S. treasury department is, right now, investigating Russian interference in its energy industry. Russia views the U.S. and Canada as major energy competitors. Without its energy industry, Russia would be bankrupt, so it is against the interests of the U.S. and Canada to grow their energy industries. Russia is funnelling money, as the U.S. treasury department says, into Tides U.S.A. Tides U.S.A. sends its money to Tides Canada, which then funnels it to Leadnow, which campaigns on behalf of the Liberal government of Canada.

Now the government is introducing Bill C-76 that will open the floodgates for more foreign money coming into Canada and Bill C-69 would also allow equal standing for radical environmentalists from the U.S., Russian activists, and a Canadian appearing before the regulatory regime.

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June 12th, 2018 / 10:45 p.m.


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Conservative

Michael Cooper Conservative St. Albert—Edmonton, AB

Madam Speaker, I would ask the member for Edmonton West about the issue of standing in Bill C-69. Peeling that back to the last election, we saw an unprecedented assault on Canadian democracy with U.S. money funnelled to third parties that, in turn, backed the Liberal Party. Now we have Bill C-69, which opens standing up to foreign anti-oil sands activists. The government has now introduced Bill C-76, which leaves a major loophole with respect to foreign funding of third parties, which essentially says that it is open season for foreign entities to fund registered third parties if the monies are transferred before June 30.

Does the hon. member for Edmonton West think that this is all a coincidence or is this just a case of the Liberal Party trying to benefit from foreign funding to help it during elections and to advance its activist radical agenda to keep Alberta energy in the ground?

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June 12th, 2018 / 10:35 p.m.


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Conservative

Kelly McCauley Conservative Edmonton West, AB

Mr. Speaker, I am pleased to rise tonight at this late hour to speak to Bill C-69, 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, also known as an omnibus bill. I also like to call this bill the let us never build another pipeline or major energy project in Canada bill, or we could call it the labyrinth act, after the David Bowie movie Labyrinth, with its never-ending maze, which is what our regulatory process is going to be.

According to the Liberal government, the main purpose of this bill is to create an environmental assessment process that increases consultation, broadens a number of social economic criteria for approval, and decreases legislative timelines. At a lengthy 350 pages, this bill has so many proposed changes, it is tough to digest them all at once. Here is one clear takeaway. It will ensure the private sector pipelines will never see the light of day in Canada again.

This comes straight from the Canadian Energy Pipeline Association that these introduced amendments or “Regulatory 'poisons' are 'suffocating' oil industry by driving investors away”.

At committee we heard this from a witness, “The impact assessment does not address the pipeline sector's most fundamental concern: a process that is expensive, lengthy, polarizing, and ends with a discretionary political decision.”

Hence, the the labyrinth act.

I was pleased to quote Ozzy Osbourne in an earlier speech today on Bill C-344, which is another act from the Liberals that will create another regulatory burden. I am glad I was able to mention the late David Bowie as well.

We have seen the Trans Mountain pipeline put on life-support worth $4.5 billion because of the Liberals' action and inaction. However, knowing the Liberals' spin machine, they are going to say that this $4.5 billion life-support system is actually a health care investment.

The Liberals want to introduce this bill to ensure that we never see another pipeline built in Canada again. In this bill, we can clearly see that this regulatory process is designed for political influence and intervention. The minister can step in any time she wants and kill any major energy resource project at any time. This even includes the various stages where there is no formal ministerial approval required. It is going to be energy east all over again. It does not clarify or streamline an objective evidence-based process where decisions will be made by experts.

The Liberals can scrap entire pipeline projects for purely political reasons, and there is nothing anyone can do about it. Of course members are sitting there saying that surely the Liberals would not kill something like an energy project, like a billion dollar gas plant for political reasons? I know that it was the Ontario Liberals, but where do people think most of the current Liberal PMO staffers come from? Of course, they come from Queen's Park.

Placing this kind of power in the hands of the minister will reduce transparency and give industry no guarantee that sensible projects will move forward. This planning phase is also concerning because, under the proposed bill, an environmental advocacy group from Sweden has as much right to be heard as a Canadian energy industry advocacy group.

I suppose we should give even more ministerial powers to the Liberals. After all, what could go wrong? We have had ad scam, the sponsorship scandal, the gun registry, Shawinigate, HRDC under the previous Liberal government, and of course the clam scam, where the fisheries minister personally intervened to give a lucrative clam fishing quota to, now get this, a brother of a sitting Liberal MP, a former Liberal MP, and a family member of the current fisheries minister. A Gordie Howe hat trick is described as a hockey game where one gets into a fight, scores a goal, and gets an assist. This is a Gordie Howe hat trick of corruption: a brother of a Liberal MP, a former Liberal MP, and to top it off, a family member of the deciding and interfering Liberal minister.

I could mention more Liberal scandals, but I should not talk about that if I want to finish by midnight. However, if people at home who are watching on CPAC are bored and want a more fulsome understanding of some of the Liberal scandals, they should take a look at https://www.mapleleafweb.com/forums/topic/4466-199-liberal-scandals.

I will return back to the bill. Steve Williams, the CEO of Canada's leading integrated oil and gas company, Suncor Energy, said that this legislation will effectively end his corporation's ability to invest in major Canadian projects. Suncor is worried about Canada's lack of competitiveness because, as he said, “other jurisdictions are doing much more to attract business”. The Liberal government just gave $4.5 billion of taxpayers' money to Kinder Morgan to invest back in the U.S. No offence to Mr. Williams and his comment, but he is incorrect. With the current government, other jurisdictions do not have to do more to attract business, because it will give money to companies to invest in other jurisdictions.

Canada's largest developer in the oil industry says it will not be able to invest in Canada, will not be able to create jobs in Canada, will not be able to pay more taxes in Canada, or create more wealth for Canadians. Suncor is a valued employer in Alberta, and provides thousands of well-paying jobs to indigenous people, youth, and new Canadians. Maybe if we change the name to Suncorbardier, then the Liberals would not try to phase out Suncor and our oil sands, but here we are.

We are talking about billions of dollars in investment going straight to the U.S. and other energy producing jurisdictions. This combined with higher taxes and more government uncertainty makes Canada a more difficult place to invest capital.

Bill C-69 completely fails to improve our ability to compete. In fact, it is only going to make matters worse. GMP FirstEnergy has also criticized Bill C-69 because it has “increased complexity, subjectivity and open-ended timelines”. The company sees “nothing in these proposed changes that will attract incremental energy investment to Canada.”

These statements do not exactly sound like a ringing endorsement for Bill C-69. We have some of the strongest and most stringent environmental regulations and standards in the entire world, so why are we introducing even more regulations when our system is world renowned?

We have seasoned experts telling us that over the years the ability of these major resource projects to get completed has become exceedingly difficult and is now almost impossible, and the Liberals want to introduce even more regulations to effectively put these projects six feet under.

Unfortunately, six feet under will refer to Alberta's economy and not the placement of a pipeline. Of course, the Liberals believe that adding increasingly complex legal frameworks and indeterminate regulatory methods will somehow expedite the process. The environment minister says we need a process with no surprises and no drama. I think what she meant to say is that she wants a process with no surprises, no drama, and no development, and perhaps no future for the young workers in Alberta.

I am sure members have heard this many times before. The Liberals love to talk about how the environment and the economy go hand in hand. However, Bill C-69 does not even live up to their own shaky standards in this regard. This policy puts red tape and the interests of foreigners first and the economy, jobs, and prosperity of Canadians dead last.

Energy development is crucial to jobs and economic opportunity in this country and Bill C-69 will only make it more difficult for private companies to receive approval for critical infrastructure projects.

I will remind the Prime Minister that many Albertans are still struggling to find work and pay their bills. His policies will only cause further harm to them and kick them while they are down.

Former premier Frank McKenna announced in mid-February that Canada has lost $117 billion due to pipeline woes. How does this legislation address that issue? I will answer that question: it does not. It does absolutely nothing. I would argue that the $117-billion loss is only going to climb higher in the future.

Bill C-69 will decrease Canada's economic competitiveness, without resulting in any meaningful environmental protection. While the United States scraps excessive regulations and cuts taxes for its citizens, the Liberal government has chosen to impose more unnecessary red tape, longer project timelines, and higher taxes for middle-class families. Bill C-69 will make it increasingly difficult to compete with countries around the world and grow our economy. The approval process will become even longer, more tedious, and completely unappealing to the private sector.

Seriously, what company wants to come forward and invest billions in Canada when they see the government actively kills energy projects and their only hope to get something done after the Liberal action is to nationalize it?

Venezuela is a mess right now because of nationalizing its oil industry. Experts are saying the way for Venezuela to get out of the hellhole it has created is to un-nationalize its oil industry. What are we doing? We are nationalizing our pipeline. We cannot afford to add uncertainty for companies who want to invest in Canada.

The Liberal government has managed to consistently decrease investor confidence with each and every passing day. It should be more cautious with its legislation. Liberals continuously outdo themselves and are setting the bar for failure as a government. We already have $20 billion in deficits every year, so what could possibly go wrong as investor confidence reaches new lows?

I cannot support a bill that would kill jobs in Edmonton, that would kill jobs in Alberta, and that would chase away energy investment at the same time as doing nothing for the environment.

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June 12th, 2018 / 10:30 p.m.


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Green

Elizabeth May Green Saanich—Gulf Islands, BC

Madam Speaker, in the past I practised environmental law for a while and I have worked in the environmental field for a long time and I am quite familiar with laws in other countries. It is unlikely that the hon. member will take my word for it, but Canada does not have the best environmental assessment process, the toughest regulations, and the best endangered species law at all. That was the case even before Bill C-38 in the spring of 2012. After the changes to environmental assessment by the Harper government in Bill C-38, we had one of the worst, weakest, and most inconsistent and incoherent environmental assessment processes in the industrialized world. Sadly, tragically, Bill C-69 would not restore the consistent, predictable process we had that ensured that anything within federal jurisdiction would be reviewed.

Just so the hon. member knows what countries to which I refer, anything in the European Union is stronger, the United States is much stronger, and New Zealand is much stronger in their anticipatory environmental assessments, which is why it is such a tragedy that Canada, which knows how to do this better, is failing to do so now.

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June 12th, 2018 / 10:20 p.m.


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Conservative

Larry Maguire Conservative Brandon—Souris, MB

Mr. Speaker, it is my privilege to stand this evening to debate Bill C-69. I would like to say a number of things at the outset. The most obvious one is that the Liberals broke their promise with the bill. It has nothing to do with the wording of the bill and everything to do with the size of it.

First, the government said it would not have omnibus legislation and, as my colleagues mentioned earlier this evening, this is a 370-page bill. It cannot be put in any other context than it is an omnibus bill.

The second broken promise is that the bill is not very environmentally supportive by its very voluminous weight. It could have helped, in spite of its size, if it really would improve our environment, but this bill fails to do that.

A number of things have been said about the bill this evening and I will come back to those. However, a whole host of events has taken place around the rhetoric the government has put in this bill. The Liberals talk about trying to improve the environment, to create more jobs, and to improve those jobs, but they have ended up killing two pipelines already. One was the northern gateway pipeline across northern British Columbia to get oil in Alberta over to the west coast. The other one was the eastern access line to move oil to the New Brunswick area for refining purposes in that part of Canada.

Before I elaborate on that, I should inform the House that I will be sharing my time with my colleague from Edmonton West. I know he will have much to say about the situation taking place in Alberta.

My perspective comes from the small amount of oil in southwest Manitoba, which happens to all be in my constituency. This is a very important issue to the communities, maybe not to Winnipeg as much, though it is impacted because a lot of income comes out of that area from this oil, and to the people who live in those communities and on the farms in that region as well. A great deal of work is being done by the oil industry in the southwest region, from trucking to the building of lines to the building of batteries to the moving oil from the wells to the batteries to the tracks to the loading facilities. We also have a major pipeline running right through the middle of my constituency, which moves the oil east and down through the United States.

There are thousands of jobs in my little southwest corner of Manitoba because of this industry. That is why it is so important to have certainty in this industry. It impacts the lives of individuals on farms as well. I went through the downturn in the farm economy, particularly BSE in 2003, droughts in 2003, and flooding in 2005, 2011, and 2014. Therefore, off-farm jobs in the oil industry have been a stabilizing factor in many of the family operations in southwest Manitoba.

It is pretty important to ensure there are sound rules so investors in the economy, not just in my area but more particularly in Alberta, Saskatchewan and, to a certain extent in Newfoundland, have the assurance they can make investments and know they will get returns from those investments.

I will refer to my colleague from Carleton when this debate started. He had a good economics lesson, I thought it was Economics 101, about whether the government learned anything from the lesson he was trying to teach about how important it was to have a sound investment process. We know that comes with great difficulty in Canada right now, and there is a lot of concern about it. As he pointed out, and as we all know, the country's debt is three times higher than it was supposed to be this year.

One thing I did not know, and it is worth repeating, is there are overpayments in Ontario's hydro of $176 billion over the last 30 years. That is a tremendous amount of money, when we consider that is a quarter of Canada's debt. The other number we need to bear in mind is that we have already lost $88 billion worth of investment in our oil industry. It has moved out of the country. It has gone south, as my colleague from Calgary Shepard just indicated. Thousands of jobs have gone south, 101,000 jobs in Alberta alone.

There is a little more drilling going on right now in our area of southwest Manitoba, but the bill would not help that economy survive. Bill C-69, this omnibus legislation, and the amount of regulations in it would not make it easier to grow our economy, which puts people to work.

I was the environment critic for seven of the 14 years I was in the Manitoba legislature. I want to put a few things into perspective. When we look at a situation where infrastructure and investment is required, the government always talks about how we can have both, the economy and the environment. That is not new. It is certainly not foreign to anybody in the House or to any Canadian for that matter.

This is about ensuring that Canadians know that the environment and the economy have gone hand in hand probably since oil was found in Canada in the late 1940s, early 1950s. Anyone who does not abide by those rules of trying to ensure the environment is kept as pristine as we possibly can is not paying attention. My colleagues have already stated tonight that we have the cleanest rules for dealing with environmental packages of anywhere in the world, particularly in our oil industry.

Rules have been brought, and not just in Bill C-69 or Bill C-68, the Fisheries Act. We know full that the efforts in Bill C-69 will not help the economy in any way. They certainly will not make jobs.

As I said, I was asked to become the environment shadow minister in Manitoba when I was first elected in 1999. It was either conservation or the environment. As the representative for Arthur-Virden, the constituency receives water from all of eastern Saskatchewan, southeastern Saskatchewan as well as northeastern Saskatchewan, and all of it comes into the Souris River, coming down the Assiniboine, and even through the Qu'Appelle in central Saskatchewan.

We know the impacts of what the environment can do to our province. The current provincial government is spending its infrastructure dollars rather responsibly. It is using them to protect cities like Brandon and Winnipeg particularly, Portage la Prairie, and the shorelines of Lake Manitoba and Lake Winnipeg. This is responsible management. Why? It is because the provincial government is spending the money on infrastructure to prevent flooding, instead of paying billions out after the fact in flood damages and devastation.

The Liberals need to heed that example and respect investments, instead of killing investment opportunities like the eastern access and northern gateway. These are important issues.

I could go on about a lot of other shortfalls in the bill. Changes to the National Energy Board is just one of them. It may have needed tweaking, but the government decided it knew best and threw out the baby with the bathwater.

My colleague, the member for Dauphin—Swan River—Neepawa, certainly has more experience, having a master's in biology, and he has certainly hit the nail on the head with respect to the Fisheries Act and Bill C-68. I have spoken to him about this bill as well.

I just want to wrap up by saying that I will not be supporting Bill C-69 for a number of reasons outlined, particularly by my colleague from Abbotsford today, as well—

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June 12th, 2018 / 10:10 p.m.


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Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, I suppose we agree that the bill is flawed, but I want to correct a few things.

There were at least two opposition amendments accepted. I still cannot vote for Bill C-69, but I want to make sure that people know that, on the recommendation of Professor Martin Olszynski, who was referenced in my friend's speech, we amended proposed subsection 6(3) to say, “The Government...must, in the administration of this Act, exercise their powers in a manner that adheres to the principles of scientific integrity, honesty, objectivity, thoroughness and accuracy.”

I would rather see more about science in the bill. I would rather see less ministerial discretion. However, this debate, repeatedly, for weeks now, has singled out large oil companies leaving Alberta, as if the only reason these large oil companies have left has something to do with pipelines. The reality is global.

Globally, to give some context, investment in fossil fuels is shrinking. Globally, investment in renewables is growing like Topsy. In fact, in 2017, solar investment alone eclipsed investment in coal, nuclear, and all the renewables. The price of solar has been plummeting. Globally, greenhouse gases fell last year in the U.S., Russia, Brazil, China, throughout the EU, and, of course, in the U.K. They dropped infinitesimally in Canada. It was a 1.4% drop.

We are part of a global transition right now, which is why large companies like Statoil, from Norway, Royal Dutch Shell, France's Total, and ConocoPhillips, when they left the oil sands, said that they were leaving because they did not want stranded assets. In the words of Mark Carney, current president of the Bank of England, they did not want “unburnable carbon”, because there are assets in oil and gas that will be left in the ground, which represent a financial liability.

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June 12th, 2018 / 9:50 p.m.


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Conservative

Tom Kmiec Conservative Calgary Shepard, AB

Mr. Speaker, I am pleased to be rejoining the debate on Bill C-69. I have a tough job. I am following the member for Lakeland, who has probably contributed more in this House, in the last two and a half to almost three years, to defending Alberta and Canada's energy industry than any other member of the House. In fact, she has a very long history of defending Canada's energy sector and Alberta's energy workers in her private sector experience before.

She provided us with an overview of the damage that Bill C-69 would do to Canada's economic sector related to the energy industry, and the depth of how much damage would be caused to the energy workers in Alberta, Saskatchewan, and British Columbia.

I cannot match those numbers, but I have seven points I want to go through with respect to Bill C-69, and the different parts of the bill that I think will be very damaging to investments and the future jobs in the energy sector, and to Canada's GDP growth and how much it will be reduced by.

One of the things we often hear about in the House is how strong Canada's growth is. It is often said that we are leading the G7. In fact, that is not even true. We are not leading the G7. The projections by the OECD, and in the PBO's own economic update, has us in the middle, at number four, especially for 2018, with a 1.9% growth. We are actually behind the United States, and we know why. It is because it does not have a carbon tax, which will damage Canada's economy with up to 0.4% less GDP growth.

When I was at the finance committee and I asked the parliamentary budget office officials if ever they had seen a government policy that was intentionally damaging to Canada's economy the way the carbon tax is going to be, they had no answer for me. They could not come up with a response to it because there simply is not one. It is a damaging policy that is being introduced and forced down the throats of provinces that do not want it, including the electorate of Ontario, which last week rejected the damaging policies of the federal Liberal government.

We also know that the natural resource sector in 2016 accounted for 16% of Canada's economic activity. Therefore, 16% of Canada's economic engine is related to the natural resources, and 38% of non-residential capital investment is related to this one sector.

We also know, because the member for Lakeland did a good job of itemizing it, how much foreign investment has fled the country. Again, we know why. It is because we are not as competitive with our main trading partner, the United States, as we used to be. It has introduced drastic tax changes and reforms to its system that make its companies much more competitive. I cannot tell members how many of my constituents, friends, and supporters have moved down to Texas, which I often call “Alberta south”, to work in its energy sector. We know that next year the state of Texas will become the number one producer of oil in the world. It is going to exceed even large producers, such as Saudi Arabia, Nigeria, and Venezuela. It will be producing more oil than any one of them. This is just one state in the United States of America.

We also know that Texas, for instance, does not have a personal income tax system. It has a sales tax instead. However, the offering it provides to workers and to companies is that it will get out of the way. It provides a simple to understand regulatory system that typically does not change from government to government. It provides stability, whereas the current Liberal government is providing more instability.

These are the seven points that I want to raise, and they are in no particular order: moving away from science-based decision-making; the timelines for a final decision will be changed; there are self-processes that will be stopping the clock; we will have open questions about what constitutes a major or minor project; the concentration of power in this legislation; the restoring of the public trust concept, which is highly politically charged; and finally, a question that I asked previously to one of the parliamentary secretaries with respect who would have standing to appear before the renamed NEB regulator to have their voices and their issues heard. Those are the seven points I want to raise in my intervention tonight on this issue.

This legislation has been referred to in the National Post, and this is how it was described. It said, “This new process repeats the mistake in believing that those groups dedicated to the destruction of our oil industry can be reasoned with”.

I, like many other Albertans, did not work directly in the energy industry but was related to it in ways. I worked in human resources. I was a registrar for a profession, and many members worked for organizations that participated in providing HR advice, recruitment, benefits, pension plans. Therefore, it was not directly related to it, but they worked in companies but also provided ancillary services to them. They believed that there is simply no way to satisfy those who are ardently opposed to large-scale industrial energy development of any kind. We can never create a system that will satisfy any of them. No matter how complex the labyrinth becomes, it will never satisfy those who are opposed to development, period.

Social licence does not exist. There is no way to reach the end point where there is broad consensus. In fact, one of the reasons the carbon tax was introduced in Alberta was so that we could get a pipeline built of some sort. Since then we have lost northern gateway. Since then we have lost energy east. Since then LNG projects have been cancelled all over British Columbia. Oftentimes this would have been an outlet for a lot of the natural gas production in Alberta and in British Columbia to world markets. We often do not talk about those, but they are just as important as oil pipelines.

Now Trans Mountain finds itself in the hands of the Liberal government. The Liberals truly have the ability to follow through on the dream of the Prime Minister's father, and I think of many supporters of the Liberal Party today, to phase out the oil sands, to phase out Alberta's energy industry. Twice that has been said by the Prime Minister. The first time he apologized and we all believed that he had misspoken, but the second time he said it at the National Assembly in Paris, France.

Many Albertans, even those who are not directly in the energy industry simply do not believe the Liberal government when it says it will get this pipeline built, because there is no plan going forward. Liberals have not itemized how they are going to get it done. They have simply talked about a very specific purchase agreement that they have successfully negotiated with Kinder Morgan, because it is looking to flee. It is fleeing because of things like Bill C-69, which add more complexity and do not make it simpler to go from a project application to a project completion.

I do not mean the application process being finished. I mean construction actually being completed on the ground. That should be the measure of success and the very minimum expected by the House. If we are going to spend $4.5 billion of taxpayer funds, a contract should be provided to the House so that we can judge the quality of it, who is getting and receiving payment, but also a plan attached to it that has an itemized detailed timeline of when construction will begin, when construction will be finished on particular components of it, and when it will be operating. Again, something we will not see anytime soon, at least not in my mind.

In terms of the moving away from science-based decision-making in this piece of legislation, the Liberals are adding in a lot more qualitative factors over quantitative factors. It has been said by the GMP FirstEnergy Research team:

The qualitative factors look to be nearly impossible to measure or assess. Additionally, certain quantitative measures such as gender-based analysis may be almost impossible to implement in practice.

This has a huge implication for a company with a large-scale industrial project when it is preparing to apply at the beginning. Just as with any application there will be a bunch of boxes to fill in and information to provide. If companies do not know how to meet the test, if the multiple choice question does not have any multiple choices to pick, how are they supposed to satisfy the government on what it is trying to get? This is where the complexity increases. This is where a lot of energy companies will struggle to satisfy the government's want for more information.

Second, on the timelines for a final decision a lot has been said in the House by members that in fact the supposed timelines provided for Bill C-69 are not true timelines. What will happen instead is that there are ample opportunities for it to be blocked and ample opportunities for it to be deviated.

Third, the sub-processes are stopping the clock. Again, GMP FirstEnergy noted that included allowing for additional studies and submissions by interested parties and “other delaying tactics such as the Governor in Council having an unlimited ability to extend a pending decision by the minister for as long as desired and suspending the time limit under which the notice of the commencement of assessment begins.” These are issues itemized by researchers who work for energy companies, who advise energy companies on how to comply with regulatory complexity, which is increasing under Bill C-69.

If the goal was never to have another major industrial project be built in Canada, then the Liberal government has achieved its goal, but I just do not think that was the goal.

We have the CEO of Suncor Energy who has said that no new major industrial projects will come forward. We have the CEO of Sierra Energy, a smaller player in the field, but still a very important one, saying that under this legislation, no new large-scale industrial projects will be proposed to the regulator. I can understand why. It will become way more complex to get anything done.

I mentioned the problem identifying what is a major or a minor project. That is not clarified in this piece of legislation. It would still be difficult to determine that, and again, researchers said that this was a problem.

There would be an immense concentration of power, which many members have issues with, especially on the Conservative side. We have itemized our concern that the minister is getting too involved in the decision-making around projects. There are paths projects could be redirected to that would add to the complexity and add to the burden on the company to try to prove things with information and criteria that might be difficult to collect.

This would not help energy workers in any way. This would not help us get to the “yes” side. This would not help us get to a project being completed and Canada yielding additional prosperity with wealth generated.

At the end of the day, I am convinced that the government wants more revenue. The government wants people to generate income. It wants projects to be undertaken and built. It wants to see that to have an opportunity to levy income tax and sales tax. That cannot be done without having wealth generated.

If the CEO of Suncor Energy is saying that no new major industrial project is going to go ahead, we have serious issues.

The concept of restoring public trust is highly politically charged. It is a manufactured narrative that before there was no trust, but now there is trust. That is interesting. Perhaps that should be told directly to those who are protesting the Trans Mountain pipeline. Maybe that should have been told to those protesting the energy east pipeline, when it was still on the table before the Liberal government killed it off by introducing new regulatory rules.

In its news release at the time, Trans Canada said that it was the decision to introduce new regulatory rules that led to its cancellation. This false concept about restoring the public trust is not helpful in any way. It somehow speaks again to this idea of social licence, which again does not exist. It has been proven over the past few years that nothing will satisfy those who are opposed to energy development of any sort.

Finally, who can be involved in NEB hearings? That was a question I asked before. Subclause 183(3) would eliminate the NEB standing test, which is very important to narrow the scope of the determination of who could appear before the NEB to make the case that they are impacted, beneficially or not, and could make the case that the project should be modified in a certain way to meet their personal or local community needs. Now there would be the opportunity for international groups to appear before the regulator and make a case that they would be somehow impacted directly.

If communities are the ones that can say yes, then it can only be the local community directly related to the project that should have a role in saying how it would be impacted. It should be individuals in those communities who should have the greatest role. It should not be spokespeople who are self-appointed saying that they speak on behalf of a certain group. It should be people locally who can go before the NEB to make their case, as they were able to do before. Now there would be the potential situation where foreigners or people from different parts of Canada, totally unrelated to the project, would make submissions and appearances, slowing down the process and adding more complexity and further delays to the regulatory process to try to meet their demands and their goals.

There are some in the legal community who have offered their opinions, such as Jean Piette, an environmental lawyer at Norton Rose Fulbright, in The Lawyer's Daily, on February 9, 2018. This was very early on, before some of the amendments were made. He said, “I think there are going to be delays inherent to this new process which are going to be of concern to proponents.”

Martin Ignasiak, national co-chair of Osler's regulatory, environmental, Aboriginal and land group, again in The Lawyer's Daily, on February 9, 2018, said, “there is nothing in these legislative proposals that suggests future assessments...will be in any way streamlined, more efficient, or more effective.” In fact, they will not be.

We know that to be true. We know that to be a fact, having seen the final bill that was jammed through the natural resources committee without even a single amendment from the Conservative side accepted as reasonable being added to the docket.

I often hear members of the government caucus say that the committee worked collaboratively. “Collaboratively” gives the false impression that somehow it was a multi-party process, where amendments from each side were considered and included in the final version of the bill that was reported back to the House of Commons. In fact, we know that not to be true. Not a single Conservative amendment was approved on this particular piece of legislation, and often on other pieces of legislation. I hope this will not be a trend that will continue from now until election time, but it speaks to the type of work that is being done on committees. There is a lot of talk and a lot of rhetoric, but the reality is that very few, if any, Conservative amendments are given their full due so that we can consider them in amending government legislation. It does happen, but it is a rare occurrence.

I know I do this quite often, but I want to end on a couple of points, because I know certain points are made by government caucus members about the record of the previous government and how many pipelines were approved and the concept of the economy and the environment going hand in hand. The Yiddish proverb I would like to use on this one is “One cross word brings on a quarrel.” I want to start a quarrel, not directly, but maybe verbally in the House. My quarrel is that we talk about the environment and the economy going hand in hand, but too often, the rhetoric I hear is as if one unit of the economy has to be lost for a unit of the environment to be gained. That is not the case. Why is it that every time the Liberals talk about the environment and the economy going hand in hand, what they mean is that taxpayers pay more and more every single time? They pay more in carbon taxes and more in CPP premiums and payroll taxes and a higher tax on the goods they purchase. On and on it goes. Every single time, small businesses are paying more because of tax changes the Liberals are introducing, despite lowering the small business tax after they rediscovered their promise. It goes on an on.

The second point I want to make is on the record of the previous government. There were countless pipelines, both oil and gas, that were approved: the Melita to Cromer oil pipeline capacity expansion, the TMX-Anchor Loop oil pipeline, the Cochin oil pipeline, the Keystone oil pipeline, the Alberta Clipper oil pipeline expansion—Line 67, the Bakken oil pipeline, the Line 9B oil pipeline to Edmonton, the Hardisty oil pipeline, the Deep Panuke offshore natural gas pipeline, and the South Peace pipeline, and it goes on and on.

There was an immense record of success in the previous system that existed to approve large-scale projects. These pipelines I mentioned are operational today. We know that the government has overseen the cancellation of the most kilometres of pipeline of any government in recent memory. Thousands of kilometres of pipeline have been cancelled or not approved under its watch. I do not see very many new projects going ahead, aside from Trans Mountain, and being put before the regulator for consideration, that would have a meaningful impact on either the differential or on bringing our natural gas to new markets and ensuring that they reach different parts of the United States and international markets.

This is my concern. The rhetoric does not match the reality. The president and CEO of Suncor and other major energy companies, such as Sierra Energy, are right. There will be no new major industrial energy projects proposed under Bill C-69. It is a flawed piece of legislation. It does not address the underlying need to ensure that the rule of law is respected in Canada. That is the fault and defect in the current Liberal government. It is refusing to apply the Constitution. It is refusing to apply the rule of law and to ensure that the permit that was provided in the case of Trans Mountain is actually followed through on. A permit from a regulator is not worth the paper it is written on if it is not backed up by the rule of law, with the courts ensuring that those who continue to obstruct a project illegally face the judicial system. That is the way it should be done. It should also have clear support from the government that does not involve nationalizing a pipeline in the name of trying, in vain, to get it built, when in fact, it is simply bringing it under the control of the government so it can set the timelines on what happens in the future.

Albertans do not trust the government. Alberta energy workers do not trust it controlling the Trans Mountain pipeline, and because of that, I will be voting against the bill.

Impact Assessment ActGovernment Orders

June 12th, 2018 / 9:40 p.m.


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Conservative

Shannon Stubbs Conservative Lakeland, AB

Mr. Speaker, I agree with my colleague that we likely approach the legislation from different world views and ideological perspectives. Regardless of that, I was dismayed to see the Liberals reject the vast majority of the 400 amendments put forward in good faith, after the hard work done in an almost impossible committee situation created by the Liberals.

From our different perspectives and on behalf of the diverse constituents we represent, we wanted to improve the legislation and participate meaningfully in this omnibus bills, which will have a serious impact on the entire Canadian economy and on our future as a country.

I agree completely with the member about her concerns with respect to the multiple areas in which either the minister or commissioners are granted wide discretion, from deciding what a completed application looks like; to when a project gets into the assessment process; to whether more information is required, which enables the minister and the commissioner to stop and start the timeline; and to suspend the timeline for review as many times as they want and indefinitely.

This is reflective of a key thing about the Liberals. They so often say one thing and then do another. Their key argument is that they are in favour of objective, independent science and expert-based decision-making. However, it is clear, with Bill C-69, that they have allowed multiple political influences, and the influence of non-Canadians, on Canadian resource projects that are important to every community in the country.

Impact Assessment ActGovernment Orders

June 12th, 2018 / 9:20 p.m.


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Conservative

Shannon Stubbs Conservative Lakeland, AB

Mr. Speaker, on behalf of Lakeland, I oppose Bill C-69, which would have wide-ranging, significant impacts on Canada's oil and gas, nuclear, and mining sectors, and by extension on every other sector in the country.

Bill C-69 does not involve minor tweaks. It is a major overhaul of multiple laws and regulations related to Canada's assessment processes, and it would damage Canada's capacity to attract investment that benefits everyone. Canada is a resource-based economy and is a world leader on responsible resource development.

Those facts are among Canada's greatest strengths and contributions to the world. Canada's exploration and mining sector is a major driver of the economy. In 2016, it contributed $60.3 billion directly to Canada's GDP, 19% of Canada's total domestic exports worth $92 billion, and the employment of nearly 600,000 Canadians. As a sector, it is the largest private employer of indigenous people in Canada, often where jobs and opportunities are scarce, in remote and northern regions.

At the end of 2015, the value of Canadian mining assets at home and abroad totalled $171 billion across 102 countries. From remote and indigenous communities to large cities across Canada, and the Toronto Stock Exchange, the mining sector generates significant economic and social benefits for Canadians. Of course, the oil and gas sector is also a key generator of middle-class jobs and Canada's high standard of living.

The International Energy Agency projects global oil demand will continue to grow, with oil maintaining the largest share of any energy fuel source in the global energy market for decades. The average energy demand is predicted to increase approximately 30% by 2040. For context, that is the equivalent of adding another China or India, the most populous countries in the world, to the current level of global energy consumption.

Canada is home to the third largest oil reserves in the world, with recoverable reserves of 171 billion barrels. Canada is the fifth largest producer of natural gas and has the 19th largest proven natural gas reserves in the world, enough to supply consumers with natural gas for more than 300 years.

The Canadian Energy Research Institute says that every job in Canadian upstream oil and gas creates two indirect and three induced jobs in other sectors across the country. Scholar Kevin Milligan notes that without income derived from the resource boom, Canadian inequality and the well-being of Canada's middle class would be much worse.

The Liberals talk a big game about making life better for middle-class Canadians, but, in fact, the Prime Minister has turned his back on the hard-working men and women who have given so much to our country through responsible resource development. Last year, the Prime Minister talked about phasing out the oil sands, and a couple of months ago, he told the world he regrets that Canada cannot get off oil “tomorrow”. The cumulative impacts of the Liberal-caused uncertainty and their imposition of layers of cost and red tape are driving investment out of Canada.

The Liberals have imposed a carbon tax on everything, which is something that major oil and gas producers are not imposing on themselves around the world, and the anti-energy legislation and policies like removing the tax credit for new exploratory oil and gas drilling last year was at a time when more than 100,000 energy workers had lost their jobs after the Prime Minister chased more energy investment out of Canada than in any other two-year period in 70 years, more than half a century.

The Liberals killed the nation-building energy east pipeline with last-minute rule changes and a double standard of upstream and downstream emissions assessments that they would now formally be imposing on all pipeline reviews with Bill C-69. The Liberals outright vetoed the already approved northern gateway pipeline. Both of those were the only actual new stand-alone proposals for exports to markets other than the U.S. in recent history. They are forcing a tanker ban on B.C.'s northern coast, which is really just a ban on the oil sands and on pipelines, and they have imposed an offshore drilling ban in the north.

Even before Bill C-69 has been implemented, the Montreal Economic Institute says that “The message being conveyed to investors is: ‘Don’t come here to do business. Even if you fulfill all regulatory requirements, you’ll still face many obstacles.” That is exactly what happened to the Trans Mountain expansion because of the Liberals' failures and the Prime Minister's response was to pay $14.5 billion tax dollars for Kinder Morgan to take its $7.4-billion private investment plans out of Canada. It is clear, the Prime Minister's anti-energy policies are chasing energy investment away at historic rates.

Now, the Liberals would pile on even more regulatory uncertainty for investors in Bill C-69. The Canadian Energy Pipeline Association said that “If the goal is curtail oil and gas production, and to have no more pipelines built, this legislation may have hit the mark.”

In a recent letter to Alberta MLA, Prasad Panda, several associations directly impacted by Bill C-69 outlined the following criteria essential to attract investment to Canada: “Certainty in regulations, in order to plan capital investments of large magnitudes and reach final investment decisions in Canada's favour. Permanence, because if programs or policies are temporary or have an expiry date, they will be deemed too high risk to factor into capital planning life cycles, which span approximately 6-8 years. Certainty in the form of timelines. Performance-based policies, ensuring benefits to communities by tying incentives to performance-based measures such as job creation, research and development, innovation and capital investment.”

These criteria were hallmarks of Canada's regulatory framework for decades, with the most rigorous assessment, comprehensive consultation, highest standards, and strongest environmental protections in the world.

A 2016 WorleyParsons study echoes conclusions of the 2014 benchmark analysis of Canada against the top major oil and gas producing jurisdictions in the world. It confirmed: “Canada is a global leader in environment, Aboriginal relations, and governance of resource use, with state of the art processes, practices, and legislation. Canada is recognized internationally as a nation that has contributed significantly to the development and advancement of regional and strategic environmental assessment since the introduction of the Canadian Directive in 1990 requiring federal departments and agencies to consider environmental concerns at the strategic level of policies, plans, and programs.”

However, every time the Liberals attack the last 10 years of Canada's energy and environmental assessment and evaluation for politics, trying to keep the NDP and Green voters who helped them win in 2015, they empower foreign and domestic anti-Canadian energy activists who are fighting to shut down Canadian resources. It is becoming a crisis, and this debate is a critical policy question for the future of our country. Canada must be able to compete.

Of the top 10 most attractive jurisdictions for oil and gas investment, six U.S. states rank at the top 10 global jurisdictions: Texas, Okalahoma, North Dakota, West Virginia, Kansas, and Wyoming. According to a 2017 World Bank report, Canada ranked 34 out of 35 OECD countries in the time required to obtain a permit for a new general construction project. There are real impacts of falling behind in competitiveness.

In committee, the Canadian Association of Petroleum Producers representative said:

Canada is attracting more uncertainty, not more capital, and we will continue to lose investment and jobs if we do not have a system of clear rules and decisions that are final and can be relied upon.

...Unfortunately, CAPP and the investment community today see very little in Bill C-69 that will improve that status.

Suncor said, “The competitiveness improvements that we're achieving as an industry through ongoing innovation are being largely negated by the continuously increasing cost of new regulations.”

Paul Tepsich, founder of High Rock Capital Management Inc., said, “I'm not crazy about Canada. We've got taxes going up and regulations going up.”

In committee, the president and CEO of the Mining Association of Canada said, “Proponents making billion-dollar investments need to know what the rules are and how they will be implemented. You can't have this certainty knowing that the rules may change midstream in some way.”

The Liberals have already caused a regulatory vacuum for major resource developers since January 2016, and they have exacerbated uncertainty for investors and for workers. With Bill C-69, the Liberals might as well hang a sign in the window that says, “Canada is not open for business”.

Clear timelines and requirements, and predictable rules and responsibilities provide certainty. The Liberals claim Bill C-69 would implement short and clear timelines for reviews, but that is not true. The planning phase, during which the impact assessment agency would determine whether a project is in the public interest, for which Bill C-69 sets some guidelines but leaves wide arbitrary discretion for the minister to define, would add an extra 180 days, which could be extended by 90 days at the request of the minister or Governor in Council. That is before a project can even get approved to start an impact assessment. Bill C-69 also does not establish criteria that a project must meet, or what constitutes a complete application for it to be granted an assessment in the first place.

The bill has been amended so the minister would no longer have the power to veto a project before it can move on to the impact assessment stage, which I support. However, under proposed paragraph 17(1), the minister could still interject opinions about the potential environmental impacts of a project that may or may not influence the impact assessment agency's decision to review. So much for objective, independent, expert-based decisions. Even after the Liberals pass Bill C-69, the parameters of the project list would not even be revealed to the public until fall, and regulations would not be fully implemented until 2019.

When the Liberals ram through this legislation, there will still be ongoing uncertainty for potential proponents of long-term, capital-intensive, multi-billion dollar, major resource projects, following almost three years of the same.

If a project is granted an assessment, there are still no concrete timelines in Bill C-69. Proposed subsection 37(6) states, “The Minister may suspend the time limit within which the review panel must submit the report until any activity that is prescribed by regulations made under paragraph 112(c) is completed.” Bill C-69 would allow the assessment to be stopped and started, and for timelines to be extended indefinitely. Obviously, there would be yet more uncertainty for potential proponents and investors.

In committee, the director of environmental services at Nova Scotia Power, Terry Toner, stated, “while the timelines in the bill provide some guidance for project proponents, the government's goal of process predictability is significantly diluted by provisions in the acts that permit limitless extensions and suspensions.”

Time is of critical value, and it can make the difference between a project built and a project abandoned. We accept that there must be some flexibility, but there must also be discipline and transparency in order to ensure investor confidence in Canadian infrastructure projects.

In committee, the president and CEO of the Canadian Nuclear Safety Commission stated, “It is important that we all know, from the get-go, the length of time to get project approval. From our experience, industry can accept a quick 'yes' or 'no' decision. What is unreasonable is to get a 'maybe'.”

Unfortunately, Bill C-69 is ripe for a swath of “maybes” on project applications, because of the potential for suspensions, delays, and uncertainty about measures for applications and outcomes. Clearly, Bill C-69 will not deliver on discipline and transparency in all aspects of the assessment of major resource projects.

According to proposed subsection 183(5) in part 2 of the bill, the regulator may exclude any period of time from the time limit calculations so long as reasons are provided. If resource development proponents have a choice between multiple “maybes” over years of review in Canada and a timely “yes” south of the border, where do the Liberals think their investments will go? Unfortunately, the answer is already obvious in the flight of investment capital from Canada, with U.S. investment in Canada falling by nearly half and Canadian investment in the U.S. going up two-thirds.

While the Liberals claim that Bill C-69 would streamline and clarify the approval of major federal resource projects, its requirements create confusion and unanswered questions. For example, Bill C-69 mandates that proponents must demonstrate “health, social and economic effects, including with respect to the intersection of sex and gender with other identity factors”.

Obviously, job creation, research and development, innovation, and capital investment from resource development reduce poverty, benefit the economy, and provide revenue for governments and public services such as health, education, and social services, as well as funds for academic and charitable organizations, but I think proponents can be forgiven for uncertainty around how their investments and initiatives relate to identity factors.

It is rich for the Liberals to argue that Bill C-69 would enhance scientific evidence in reviews, beyond what has already been done in Canada's regulatory system. In fact, during committee, Mr. Martin Olszynski of the University of Calgary pointed out that the terms “science” and “scientific” are mentioned only five times in all the 400 pages of this major omnibus bill that the Liberals are using all procedural tools to push through, while rejecting the vast majority of the over 400 amendments submitted by opposition members.

In the process of issuing certificates, the Canadian energy regulator is tasked with establishing a commission and undertaking public consultation. At committee, one of my amendments was adopted, which requires the commissions to make public any reasons for holding a hearing about the consideration of issuing a certificate. However, there still remains uncertainty around the assessment, and Bill C-69 would open the door to foreign influence in these public hearings.

Bill C-69 would enable increased foreign influence on Canadian resource development decisions because of the removal of the previous standing test, which ensured that intervenors in the process either were impacted directly by the project under review, or had specific knowledge or expertise that would contribute to the assessment.

Some claim that foreign groups have always been allowed to participate in Canada's environmental assessment processes, but that is just not true. This has only rightfully been the case for projects that cross international borders. Canada has never permitted foreign interference in the environmental assessment process for interprovincial pipelines or other resource projects in federal jurisdiction that do not cross international borders. However, the removal of the standing test now opens up this process to groups that are either directly or indirectly backed by foreign dollars or by Canada's competitors.

The Canadian Energy Pipeline Association warned that “[t]here are recent examples in Canada where the absence of a standing requirement has led to highly inappropriate participation that had no probative value with respect to the issues to be decided in the review” and that the elimination of the standing requirement could “be used to clog the hearing process in an attempt to delay projects to the point that they are abandoned”.

Foreign interference in Canadian resources is already growing, to the detriment of all of Canada. Millions in foreign money is funding opposition to the Trans Mountain expansion. It was used to challenge Canadian LNG development opportunities, too, and it is growing as a barrier to Canadian mining.

The Financial Post recently revealed that “Tides has granted $40 million to 100 Canadian anti-pipeline organizations”, which, in return, fight to stop Canadian energy development and access to export markets, disadvantaging Canada against the U.S., its most significant energy competitor and primary energy customer.

Foreign funds are interfering in and influencing electoral outcomes in Canada, too. A report to Elections Canada and Senator Frum has highlighted foreign funding funnelled to third party groups, such as the Dogwood initiative and Leadnow, to defeat incumbent Conservative MPs in certain ridings in the 2015 election, and to fight Canadian resource development.

I support Senator Frum's bill, Bill S-239, which would define foreign contributors, add classifications of foreign contributions, and make it an offence for any third party to accept foreign dollars “for any purposes related to an election”.

However, the Prime Minister defends using Canadian tax dollars to fund jobs specifically for activists to stop the approved Trans Mountain expansion, and he is resisting Conservatives' calls to ban foreign funding in Canada's elections, too, which makes the case that he seems to welcome foreign influences to deliver on his stated objective of phasing out Canadian energy.

Bill C-69 would put Canada's economic future at risk.

The Canadian Association of Petroleum Producers warns that Bill C-69 would harm Canada's reputation as a transparent, stable, predictable, and fair place to do business, and this would risk Canada's ability to be a supplier of choice for world demand of responsible energy in the future.

Suncor's CEO warns that “Canada needs to up its game” to attract investment and to compete with the United States. Instead of upping its game, Bill C-69 is the equivalent of the Liberals folding Canada's hand.

The Canadian Energy Pipeline Association warns that Bill C-69 would damage Canada's reputation as a priority choice for energy investment. It says:

[I]t is difficult to imagine that a new major pipeline could be built in Canada under the impact assessment act, much less attract energy investment to Canada.

Investment in oil and gas is projected to drop 12% this year from 2017, and the Bank of Canada already says that there will be no new energy investment in Canada after next year, 2019. In the last two years, at least seven multinational companies have divested from Canada's energy sector completely, and many more have frozen existing operations or shelved future plans.

CEPA's CEO says:

Currently there is profound uncertainty in advancing new major pipeline projects. We now have a significant problem as a sector and as a country in accessing new markets for our products around the world. The development of new projects is grinding to a halt. CEPA member companies that have material assets in other countries are actively pursuing those opportunities because of the uncertainty and potential implications of further potentially seismic regulatory changes that will directly impact the pipeline sector. Our sector is suffocating because of it.

It is clear that Liberal red tape and uncertainty are already forcing investors and developers to seek out other markets, causing hundreds of thousands of Canadians to lose their jobs. Bill C-69 would make it worse. The Prime Minister must stop sacrificing Canada's interests to the rest of the world. Canada already has the highest environmental standards in the world and the most responsibly produced oil and gas.

Canada will continue to do so long into the future, if only governments would allow energy, and all responsible resource development, to continue to fuel Canada's economy and contribute public revenue for all levels of government.

Resource jobs are middle-class jobs, so if the Prime Minister truly cares about the middle class, he will stop increasing red tape and imposing policies that drive out investment and the hundreds of thousands of middle-class jobs in every corner of the country that go with it.

Impact Assessment ActGovernment Orders

June 12th, 2018 / 9:10 p.m.


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Conservative

Tom Kmiec Conservative Calgary Shepard, AB

Mr. Speaker, as I listened to the parliamentary secretary's speech, she talked mostly about the navigable waters act, but I want to bring it back to the standing test the NEB used to have. It will be eliminated in this act. Section 183(3), specifically deals with the standing test. The practice of the NEB had been, and I think it was the right one, that persons directly affected by a project that ran through a community should be the ones before the National Energy Board in order to present their views on any proposed project and how it would impact them directly.

I think it was said by the Prime Minister that only communities could give consent, so why not allow those people most locally affected by it to have a direct say in it?

This bill will eliminate that test, and that is actually two steps backwards. As an example, during the Enbridge Line 9B reversal and the Line 9 capacity expansion, the NEB received 177 applications to participate, of which 158 were granted, 11 received an opportunity for a written submission, and only eight were denied. The reason those were denied because they were not directly affected by it.

However, under the model proposed in Bill C-69, even international individuals can come before the new regulator and basically say that they are affected by it directly and therefore permission should not be granted. I think in a great deal of cases Canadians will support local projects because of the jobs and the shared prosperity they benefit from it directly. Therefore, this is two steps backwards.

Does the parliamentary secretary agree with me?

Impact Assessment ActGovernment Orders

June 12th, 2018 / 9 p.m.


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Kanata—Carleton Ontario

Liberal

Karen McCrimmon LiberalParliamentary Secretary to the Minister of Transport

Mr. Speaker, I would first and foremost like to thank the Standing Committee on Environment and Sustainable Development for its careful study of Bill C-69. I would also like to thank the witnesses and those who have made written submissions for having taken the time to make their views heard. This work has strengthened the bill and has been an important step in getting us to where we are today.

I would like to speak particularly about part 3 of Bill C-69, which would create a new Canadian navigable waters act.

Our country is bordered by three oceans, giving us the world’s longest coastline, and we are internally connected by thousands of rivers and countless lakes and canals.

Canadians rely on our navigable waters. They are vital to our economy and to our way of life. We have a profound relationship with our waters. That relationship is part of what it means to be Canadian.

We need to protect navigation on these waters for our use and enjoyment today, and for the benefit of generations to come.

When the previous government introduced the Navigation Protection Act, many Canadians were concerned that most of Canada's navigable waters were left unprotected. In response to these concerns, the minister was asked to review the changes made by the previous government to restore lost protections and incorporate modern safeguards.

In June 2016, the review of the Navigation Protection Act was launched. As a first step in this process, the Standing Committee on Transport, Infrastructure and Communities examined the act. The committee reported its findings and recommendations in March 2017.

I would like to take this opportunity to also thank this standing committee, the witnesses and those who made written submissions for their early input. This input provided the foundation for the new Canadian navigable waters act that was eventually tabled as part of Bill C-69.

During its first year of review, the work of the Standing Committee on Transport, Infrastructure and Communities was complemented by consultations with recreational boaters, as well as other levels of government, indigenous groups, industry, and environmental organizations. What did they tell us? Many of them told us they wanted all navigable waters protected, and that is what we are doing.

Under the existing legislation, the minister has the power to review new projects and deal with obstruction to navigation only if they are on the navigable waters listed in the schedule. However, we believe that all navigable waters should be protected. We promised to restore lost protections, and we are delivering on that promise.

What would this legislation do? The act would include, for the first time, a comprehensive definition of navigable waters. It would provide oversight for all works on those navigable waters in Canada, whether those works are minor, requiring approval, or are subject to the new resolution process.

It would give communities and recreational waterway users more chances to have their say on infrastructure and resource projects that could affect their right to navigation. It would deliver a new level of transparency by creating a new online registry that would make information about projects easily accessible. It would extend the powers to address obstructions to all navigable waters in Canada, not just those waters listed on a schedule.

Finally, the act would advance reconciliation with indigenous peoples, consider their rights and knowledge, and give them the opportunity to partner with the government to manage the navigable waters that would be important to them.

Let me discuss some of these improvements in more detail. As I said, this legislation would include a comprehensive definition of “navigable water”.

The new definition includes bodies of water with public access or multiple shoreline owners that are used for transport or travel for commercial or recreational purposes or by indigenous groups to exercise their constitutionally protected rights.

This new definition strikes the right balance: it is not so broad as to capture any ditch or irrigation canal that could float a canoe, nor is it so narrow as to exclude bodies of water that are important to Canadians.

All works in navigable waters in Canada will be under the oversight of the new act, regardless of whether the navigable water is listed on a schedule or not. Someone building a minor work, such as a cottage dock or a boat ramp, in a navigable water could proceed, provided they build and maintain the work in accordance with the requirements set out in the minor works order.

There will also be some works that will always require approval because of their potential impact on navigation. These are major works on any navigable waters in Canada as well as works on scheduled waters.

I strongly believe users of navigable waters and local communities have a right to express their views about projects that may impact navigation. The proposed act meets a new standard of transparency by requiring owners to notify the public of their project and to seek feedback before beginning construction on any navigable water. In some circumstances, owners could be required to post notice of their project in community centres, marinas, local newspapers, or other appropriate places.

Further, the new Canadian navigable waters act will require the creation of a new online public registry that will make project information more accessible than ever before. For millennia, the indigenous people of Canada have used navigable waters to fish, hunt, trade, and travel, and they continue to do so today. Indigenous peoples played an active role of the review of the Navigation Protection Act.

Transport Canada participated in more than 90 meetings with indigenous groups and received close to 150 submissions. What did we hear from indigenous peoples? We heard that they wanted a say in what happened within their traditional territories.

This past February, the Prime Minister announced his commitment to reconciliation through the recognition and implementation of rights framework. The Government of Canada recognizes that reconciliation is a long-term undertaking. Rebuilding relationships will require sustained government-wide action.

A strengthened crown-indigenous relationship is at the heart of the proposed approach. This new relationship with indigenous peoples is based on respect, cooperation, and partnership.

The act would also provide new opportunities for indigenous peoples to partner with the Government of Canada to protect navigation in their traditional territories. Indigenous peoples have helped to shape the proposed legislation, and I am very proud of the work we have done together.

Whether they are tourists on a river cruise, or cottagers taking the boat out to do some fishing, or kayakers exploring secluded bays, Canadians get a lot of pleasure out of our waterways. However, under the existing legislation, these navigable waters may not be protected for recreational purposes.

Under the new Canadian navigable waters act, a more inclusive schedule will provide a greater level of oversight for navigable waters that are important to Canadians and that are vulnerable to development. The new act proposes a process for adding navigable waters to the schedule that will take into consideration recreational uses, not just commercial ones.

The proposed changes to the navigation legislation will offer better navigation protections for recreational boaters on every navigable water in Canada.

Bill C-69 would not only restore navigation protection for every navigable water in Canada, but it would also position the new Canadian navigable waters act to play an important role in the proposed new impact assessment system.

Bill C-69 would establish the impact assessment agency of Canada to lead all federal reviews of designated projects. The impact assessment agency would work with other bodies, such as the new Canadian energy regulator, the Canadian Nuclear Safety Commission, and off shore boards, and in co-operation with the provinces and territories, and indigenous jurisdictions.

The impact assessment agency of Canada would identify the types of projects and areas of federal jurisdiction that could pose major risks to the environment, and would therefore require a review.

A whole range of potential impacts would be considered, not just the project's impact on the environment, but also the impact on communities, health, indigenous peoples, jobs, and the economy in general.

We are finding better ways to measure the potential impact of designated projects to make sure only good ones go forward.

The new Canadian navigable waters act will be transformational. It will restore protection for navigation on all navigable waters in Canada, and it will create a new standard of transparency. It will restore public confidence and it will provide new opportunities for indigenous peoples to partner with the Government of Canada to protect navigation in their traditional territories.

As I wrap up, I move:

That this question be now put.