Bill C-49

An Act to amend the Canada—Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and to make consequential amendments to other Acts

This enactment amends the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act to, among other things,
(a) change their titles to the Canada–Newfoundland and Labrador Atlantic Accord Implementation and Offshore Renewable Energy Management Act and the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation and Offshore Renewable Energy Management Act , respectively;
(b) change the names of the Canada–Newfoundland and Labrador Offshore Petroleum Board and the Canada-Nova Scotia Offshore Petroleum Board to the Canada–Newfoundland and Labrador Offshore Energy Regulator and the Canada–Nova Scotia Offshore Energy Regulator, respectively (“the Regulators”);
(c) establish the Regulators as the regulating bodies for offshore renewable energy projects;
(d) establish a land tenure regime for the issuance of submerged land licences to carry out offshore renewable energy projects, as well as the revenues regime associated with those licences and projects;
(e) establish a ministerial decision-making process respecting the issuance of submerged land licences and the Regulators’ exercise of certain powers or performance of certain duties;
(f) expand the application of the safety and environmental protection regime and its enforcement powers to include offshore renewable energy projects;
(g) provide that the Governor in Council may make regulations to prohibit the commencement or continuation of petroleum resource or renewable energy activities, or the issuance of interests, in respect of any portion of the offshore area that is located in an area that has been or may be identified as an area for environmental or wildlife conservation or protection;
(h) authorize negotiations for the surrender of an interest, the cancellation of an interest if negotiations fail and the granting of compensation to an interest owner for the surrender or cancellation;
(i) establish the regulatory and liability regime for abandoned facilities relating to petroleum-related works or activities or offshore renewable energy projects;
(j) expand the application of the occupational health and safety regime to offshore renewable energy projects;
(k) allow the federal or provincial governments to unilaterally fund certain expenses incurred by the Regulators as a result of specific requests made by that government;
(l) allow new methods to demonstrate the existence of significant hydrocarbon accumulations in a geological feature and limit the duration of future significant discovery licences to 25 years;
(m) provide that the Governor in Council may make regulations to regulate access to offshore infrastructure, including to enforce tolls and tariffs;
(n) establish a new transboundary hydrocarbon management regime to regulate fields or pools that straddle domestic and international administrative boundaries, enabling the implementation of the Canada-France transboundary fields agreement;
(o) remove references to the former Canadian Environmental Assessment Act, 2012 and, to align with the Impact Assessment Act , clarify the role of the Federal and Provincial Ministers and Regulators with respect to the conduct of impact assessments of designated projects as well as regional and strategic assessments; and
(p) specify that the Crown may rely on the Regulators for the purposes of consulting with the Indigenous peoples of Canada and that the Regulators may accommodate adverse impacts to existing Aboriginal and treaty rights recognized and affirmed by section 35 of the Constitution Act, 1982 .
Finally, it makes consequential and terminological amendments to other Acts.

Canada—Newfoundland and Labrador Atlantic Accord Implementation Act

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Mr. Speaker, I would like my colleague to provide some clarification. He gave a rather eloquent speech, but I would like to understand why the Conservatives are opposing a bill that promotes greenwashing and that does absolutely nothing to reduce offshore petroleum operations. I would like to understand the Conservatives' position, because, from what I understand, the goal of the Conservative MPs is to protect the interests of the oil and gas industry and ensure that there is as much oil and gas development as possible, which is something this bill allows for. That is why I do not understand the Conservatives' position.

[Richard Bragdon, Conservative, Tobique—Mactaquac, NB]

Mr. Speaker, the answer is very clear. I find it intriguing that the hon. member from the Bloc Québécois is raising a concern about how we are standing up to reflect the concerns that stakeholders and provinces have raised.

These concerns are regarding way too much power being granted to a federal minister. They could come in to stamp out some provincial industries and the areas that impact provinces and regions within their jurisdiction. It takes way too much power away from the provinces and puts way too much into the hands of an overreaching, over-encroaching federal government. In particular, a federal minister could have veto power over energy development and resource development.

As our western friends in Alberta and Saskatchewan know very well, the over-encroachment of the federal government into areas of provincial jurisdiction is stifling and hampering. It hurts business and industry. I am sure my colleague from Quebec would be very concerned if federal ministers started overreaching into areas of provincial jurisdiction. We share that concern, and I hope the member would be onside with our concern regarding that.

[Heather McPherson, NDP, Edmonton Strathcona, AB]

Mr. Speaker, as a prairie girl, this is a little outside of my zone, but I do come from Alberta. The member, in answering the question of my colleague from the Bloc, brought up the example of the oil and gas sector in Alberta and the need for the federal government not to overreach.

One of the problems I have is that, on occasion, provincial governments, and I would use the example of the Alberta provincial government, do not do a particularly good job of promoting renewables or promoting forward-looking industry. As members know, Danielle Smith paused renewables in Alberta, and $33 billion dollars' worth of investment was chased from our province.

From the member's perspective, is there a place for the federal government to ensure strings are attached?

Another example would be when money came from the federal government for orphan wells to be cleaned up in Alberta. There were no strings attached, despite the fact the NDP asked for them, and the wells in Alberta have still not been cleaned up.

Does he not see the federal government has to have some role to play in developing our resources and in making sure that resources are being developed adequately?

[Richard Bragdon, Conservative, Tobique—Mactaquac, NB]

Mr. Speaker, I must say that my concern, as it relates to the federal government's jurisdiction and the role we can play as a federal government, is this: I believe that the federal government should become the biggest cheerleader for Canadian energy on the planet.

Canada's energy is the best-sourced energy in the world, and it has the strictest environmental regulations in the world for development and extraction. Instead, the government is talking down our energy sector, putting the boot on our energy producers and taking on provinces that are responsibly extracting and developing their energy resources. Frankly, those are helping the rest of our country have the social programs that we so desperately need and want, whether it is our health care or our education. I know we, in the east, greatly appreciate the transfer payments that have come from our western colleagues.

I think it is time that the federal government appreciate how dynamic our energy-producing provinces are in bringing economic vitality to this country, so we have a good country. It needs to start cheerleading our energy development and start cheerleading the good advancements that have happened in improving technology and extraction practices. The government needs to get stop getting on the backs of our provinces about them developing their resources for the good of the country as a whole. Let us stand up for Canada's energy.

[Ken McDonald, Liberal, Avalon, NL]

Mr. Speaker, I thank the member opposite for his passionate speech. He should look at joining a theatre group somewhere along the way.

Why can we not do them all? Could we not do wind energy, oil energy and tidal energy? We have got an ideal spot to start it right in the Maritimes, the Atlantic provinces, to do just that.

[Richard Bragdon, Conservative, Tobique—Mactaquac, NB]

Mr. Speaker, I share the absolute belief in all-of-the-above approach when it comes to energy. Any country that is going to be secure going forward in the geopolitical climate we are in internationally better have solid energy security, reliable energy resources and solid food security. If we do not get those three things right, we are in a lot of trouble. Part of that is all of the above. A big part of that, too, in improving and cleaning not only our atmosphere but the world's, is ensuring we are doing all we can to get great, clean, good, solid Canadian liquefied natural gas on the world markets, displacing dictator oil from dictator regimes.

Instead of being on the backs of that development and expanding that development, and standing and impeding the progress in those sectors, the government needs to get on the side of Canadian energy and say yes to all the of the above. Let us expand our nuclear capacity; let us expand wind and solar; and, yes, let us expand liquefied natural gas. Let us utilize it and ensure more Canadian petroleum products are on the world market not less. Every bit more of Canadian petroleum and energy we get into the world the world is much better off. Our people get paid good wages and the resources are utilized to improve the overall environment of the planet.

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

Mr. Speaker, I know that we are debating Bill C-49 on offshore wind, but for my hon. friend for Tobique—Mactaquac, I am surprised to see a Conservative MP wanting to go to bat for SNC-Lavalin getting more work with its shady practices.

SNC-Lavalin bought Atomic Energy of Canada Ltd. for the bargain basement price of $15 million back in, I think, 2013. It is behind Canadian Nuclear Laboratories, and if there ever is a small modular reactor built in the member's home province, it will be built by that same corporation and not Moltex, which has never built a reactor and does not plan doing one. It will leave it to its partner, formerly known as SNC-Lavalin. I wonder if the member has any thoughts on that.

[Richard Bragdon, Conservative, Tobique—Mactaquac, NB]

Mr. Speaker, kind greetings to the hon. member for Saanich—Gulf Islands. On this, I simply would say that it is important that we do an all-the-above approach and not be locked in to just renewables or just one avenue, whether it is solar, wind or nuclear. We need all of the above and move with everyone together. A rising tide will lift all boats. An absolutely all-encompassing energy policy will lift not only all Canadians, but it will lift the entire world to a better place.

Let us get Canadian energy on the world market and improve the world's environment and improve Canada's economy.

[Mario Simard, Bloc, Jonquière, QC]

Mr. Speaker, I hope that I can speak with the same passion as my colleague, but I have to admit that I am not an oil and gas enthusiast, far from it.

I want to begin by saying that Bill C-49 was introduced to us as a bill that seeks to promote renewable energy, but such is not the case. Before I explain why I do not think that is the case, I would like to give a bit of background. It feels like groundhog day to me, because I am often repeating the same thing here in the House, that Canada is trapped in the oil industry's stranglehold.

We could take that one step further and say that Canada is an oil monarchy and wants to stay that way. We are among the four biggest polluters in the world, and we share that enviable position with Russia and Iraq. I do not know whether the Minister of Energy and Natural Resources planned to become a “petromonarch”, but unfortunately, that is what he is. Today, with the Trans Mountain pipeline in place, Canada is going to be producing an additional 600,000 barrels a day, when Alberta is already producing a record number of nearly 4 million barrels per day.

From an environmental perspective, we can all agree that that is awful. If we look at the government’s actions in recent months, we again see the same thing, a willingness to financially support the oil and gas sector. I remember that the Minister of Environment and Climate Change said he wanted to put an end to inefficient fossil fuel subsidies in 2023, but he did not know what an ineffective subsidy was. How can we put an end to something we do not know about? That is rather difficult. I would simply point out to him that, in 2023, the federal government invested $18.5 billion in the oil and gas industry. We are a long way from ending fossil fuel subsidies.

I would also point out that he should put a cap on emissions by 2026. Of note, the emissions cap prosed by the federal government is a limit on emissions but not on production. Canada will therefore produce more oil but reduce carbon intensity. Basically, I see this as a person on a diet eating poutine. If someone goes on a diet, they should not eat poutine. If the government wants to reduce carbon intensity, it should not help produce more oil.

It is a bit of a pipe dream to say we will reduce the carbon intensity of the oil sector by investing huge amounts of public money in technologies that are questionable and unsound, technologies that are assessed by several experts as doomed to fail. Nevertheless, the government’s big strategy in its budget is to invest no less than $83 billion by 2035 to promote this pipe dream of lower carbon intensity oil. That is not counting the $65 billion that have been invested in the oil and gas sector in recent years.

I see that all these numbers are making your head spin, Mr. Speaker. I could not agree with you more. I too find it alarming. I am saying that because this is the context in which Bill C-49 is being proposed.

I am a well-intentioned guy. My mother always says that about me and she is right. I am a person who means well. At first reading we told ourselves we should give it the benefit of the doubt. The first stumbling block we saw was the possibility that Bill C-49 interfered with provincial jurisdiction. From a constitutional perspective, management of offshore energy is a federal jurisdiction, but previous agreements were signed to manage the oil and gas sector with Prince Edward Island and Newfoundland and Labrador. New agreements were presented to us as agreements aiming to include renewable energies.

At first reading, we decided to give it the benefit of the doubt because there were no jurisdictional issues. We therefore voted in favour of sending the bill to committee. I was prepared to participate in committee discussions and to try to improve it. This was the goal of the Bloc Québécois and its approach to studying the bill.

However, the main problem soon became clear. Bill C-49 is not about renewable energy. The government refused every amendment proposed by the Bloc Québécois. I will present some of them shortly, since I am sure I will have time. We proposed possible solutions while remaining totally open. All were dismissed outright.

Here is why I say Bill C-49 is not about renewable energy. In committee, we heard from Normand Mousseau, Scientific Director of the Trottier Energy Institute. No one is more qualified to talk about energy and energy transition. Mr. Mousseau said that there is a fundamental principle when it comes to engaging in energy transition. This fundamental principle is quite simple: Renewable energy must be given priority over fossil fuels or carbon-intensive energy. We decided to use this as the starting point for our amendments. The idea was to determine how Bill C 49 could favour renewable energy over fossil fuels or carbon-intensive energy. Unfortunately, the government was completely against this approach. This is why I say the bill is not about renewable energy.

I talked about Normand Mousseau, but we heard from another very interesting witness, Ches Crosbie, who was invited by my Conservative colleagues. Mr. Crosbie came to talk to us about his vision of energy in Canada. What is interesting about Mr. Crosbie is that he does not believe in climate change. The Conservatives invited a witness who does not believe in climate change and who is convinced that all the money invested in new technologies is a waste of time and a scam. I am translating freely. He told us that it was bogus, and his testimony, along with the questions I asked him when he appeared before us, was picked up by the CBC. I am not a big fan of the CBC; not being anglophone, it is a bit more difficult for me. In any case, the leader of the Conservatives in Newfoundland was forced to defend himself. Tony Wakeham was forced to say that he believed in climate change and that the witness who had appeared before the Standing Committee on Natural Resources was a bit off base. I wonder on what basis my Conservative friends chose to invite someone who is prepared to deny the reality of climate change, which is accepted by everyone. It is a bit like deciding to invite to the Standing Committee on Health someone who defends the idea that cigarettes do not cause cancer and are actually good for athletes. We would say that is completely far-fetched. However, Ches Crosbie, the Conservative witness, shamelessly said before the Standing Committee on Natural Resources that we should stop talking about this bogus climate change theory and stop investing money in new technologies because that would not do any good. I think we all get the picture.

I said our goal from the outset was to improve Bill C‑49 to better govern offshore energy activities and better plan the energy transition. Everything we proposed was roundly rejected by our Conservative friends.

I would like to review some of our amendments. This will clarify why we will vote against Bill C‑49. We have said this already, but we will vote against Bill C‑49 because it is incompatible with the energy transition.

The first type of amendment we submitted aimed to foster the Bloc Québécois's general vision, which is energy transition and fighting climate change. Earlier, I talked about Normand Mousseau. We wrote our amendments based on his words, stressing, among other things, the need for the federal government to follow the example of Quebec and of other countries, which have halted new oil and gas development projects.

We thought that if we could change the bill to prevent new oil and gas projects and instead focus on renewable energy, we would have done our job, and we could vote in favour of Bill C‑49. However, the Liberal government responded that, while Bill C‑49 deals with renewable energy, there would be no prioritization of other types of energy, as Normand Mousseau recommended in his testimony. We felt this undermined transition.

With the amendments we proposed, the government could have built the regulatory foundations to gradually phase out oil and gas by voting, among other things, to reform the system governing them. Our goal was to ensure that adequate regulation of current oil and gas projects would end the approval process for new ones. The government dismissed this outright. We also wanted to help create a new offshore renewable energy regulatory system that would have allowed effective planning that considered the needs of all users of the sea and required a proper environmental assessment.

For example, we proposed that the regulator be responsible for preparing a strategic plan for gradually reducing petroleum-related activities, consistent with Canada's commitment to reduce its greenhouse gas emissions by 40% to 45% below 2025 levels by 2030. These are commitments the government itself made. If it had taken this direction, it might not be in the situation it is in today, when it was announced that our emissions increased by 10 megatonnes between 2021 and 2022. How are we supposed to reduce our carbon emissions when our main economic sector is still oil and gas? It is completely impossible. We suggested in good faith that the government focus on renewable energy, but it refused.

We also made certain proposals because what most surprised me about Bill C‑49, which would amend the two acts governing offshore energy, namely the one for Newfoundland and the one for Prince Edward Island, is that the regulators have no expertise in renewable energy. Witnesses told us straight out that they know how to develop and analyze fossil fuel projects, but they have no idea how to develop renewable energy projects. We therefore moved amendments aimed at developing the appropriate expertise for planning and assessment processes, but these amendments were also rejected out of hand by the government. Our amendments were consistent with the briefs and testimony that numerous environmental groups and energy sector specialists provided to the government during the study in committee, but the government obviously did not listen. The government turned a deaf ear and refused to listen to the people who have the expertise needed to develop this type of renewable energy project.

Lastly, we submitted amendments aimed at ensuring that, if one or more energy projects are commenced in an area where no other projects are under way, low-carbon energy projects should automatically get priority. For example, in an offshore area, if there is a choice between a wind power project and an oil project, the analysis should be based on the carbon intensity of each project. That would have been essential, but the government did not agree to our amendment. It dismissed it out of hand. This proves what I have been trying to say all along, which is that Bill C‑49 is not a renewable energy bill. It is just greenwashing, an attempt by the government to ease its conscience by saying that it is working on implementing wind power projects, but without actually making them a priority.

In fact, Newfoundland and Prince Edward Island currently have no infrastructure to distribute the electricity that the wind turbines will produce. Developing this kind of infrastructure requires resources, and the construction costs involved are astronomical.

The federal government, however, continues to invest heavily in the pipe dream that I talked about earlier, which calls for lowering the carbon intensity of the oil and gas sector. However, the government is not investing in clean technology the way it was supposed to. For all these reasons, the Bloc Québécois will vote against Bill C‑49, and it will never lose sight of the fact that the energy transition cannot be carried out while the oil and gas industry are receiving support.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, I am somewhat surprised the Bloc would not be supporting this legislation, when one takes into consideration that this legislation is mirror legislation. There are two other provinces with different political parties, both a Liberal premier and a Progressive Conservative premier, and this legislation mirrors their provincial legislation. All three of them ultimately need to pass. The people of two other provinces and the people here in Ottawa are working together on an important issue.

The Bloc, on the one hand, says that we should be working with provinces. This is a good example of provinces working well with Ottawa to do something of great benefit for their regions, and the Bloc is voting no. From my perspective, that is highly irresponsible given that I always thought the Bloc's mandate was to, at least, work with the provinces. That is constantly what we hear from the Bloc.

[Mario Simard, Bloc, Jonquière, QC]

Mr. Speaker, I think that what is irresponsible in the fight against climate change is to continue our out-of-control support for the oil and gas sector. That is irresponsible. I began by saying that one of the stumbling blocks was to determine whether offshore areas fell under federal or provincial jurisdiction. Constitutionally speaking, they are under federal jurisdiction. That is one thing. The federal government can of course have agreements with the provinces, but this bill is clearly not aligned with the energy transition, despite the fact that we tried to improve and enhance it.

If the government were really interested in the energy transition, most of the strategies included in its budget would not be intended to support the oil and gas industry, but rather to support the clean energy sector, which is not the case. The government would have agreed to amend the bill to prioritize clean energy over fossil fuels. They do not want to prioritize low-carbon-intensity projects over oil and gas projects, even for new and future projects. That is obviously why the Bloc Québécois will be voting against the bill, which is bad for the environment.

[Ted Falk, Conservative, Provencher, MB]

Mr. Speaker, I serve on the Standing Committee on Natural Resources with the member for Jonquière, and he is very passionate about what he believes in. On the oil and gas issue, we would have the exact opposite views. I think we are blessed with a beautiful oil and gas resource here in this country that needs to be used responsibly. As we have seen from our oil and gas producers, they do it responsibly. We have the cleanest and most ethically produced oil and gas in the world.

On another issue, the issue of proper consultation, I wonder if the member could comment a little further on whether he thinks the Liberal government allowed proper consultation with our fishers and also our lobster harvesters.

[Mario Simard, Bloc, Jonquière, QC]

Mr. Speaker, I would like to thank my colleague from Provencher for his question. It is true that we do not always agree, especially when it comes to straws and gas guzzlers. I do not agree with him on these matters. I do not agree with him that Canada’s oil and gas sector is one of the most ethical, either. Oil from the tar sands is probably one of the dirtiest oils in the world. However, let us set that aside for now.

On the issue of consultation, we do agree.

On the issue of the purposes of use, several groups of fishers testified that the federal government’s consultation process was botched. They feel that they were not heard and that the measures that should have been taken to help the fishery and ensure sound management of the different users were not put in place. Indeed, the consultation process was inadequate. It is not that the government did not have enough time. It had plenty of time to work on Bill C-49.

The government even planned to have the committee travel to Newfoundland or Prince Edward Island, but, because of poor management or I do not know what, the visit never happened, and we were unable to speak with the people on the ground except during committee meetings, when witnesses were called. I totally agree that it would have been better to have a much more robust consultation process than we actually did.

[Heather McPherson, NDP, Edmonton Strathcona, AB]

Mr. Speaker, my colleague's intervention today was very interesting, and I listened with agreement regarding much of what he said.

One of the concerns that I have is that we are seeing a lack of actual, meaningful action by the current government to make sure that Canada can be leading on renewable energy. The member will have heard me say many times in the House how disappointed I am with the Province of Alberta and with the premier, Danielle Smith, for pausing renewables in my province.

However, I am also concerned when I see things like the Liberals promising investment tax credits to kick-start a clean energy economy. They promised that in 2023, and we still have seen nothing. Instead, companies are looking to the south, where there are those credits and that investment. I wonder if the member could comment on how that would be helpful for making sure that Canada can be a leader in a new economy.

[Mario Simard, Bloc, Jonquière, QC]

Mr. Speaker, I completely agree with my colleague.

If we look at the federal government's strategies in the past three or four years, clean energy has never been at the centre of those strategies.

In the latest budget, we saw tax credits pop up for clean electricity. Those will apply this year. We shall see what that looks like. However, the bulk of the federal government's strategy, the bulk of the financial support—earlier I was talking about $83 billion by 2035—is being offered to the oil and gas sector to support a pipe dream, the low-carbon oil pipe dream.

Environmentalists all agree that we need to cut oil production. Meanwhile, the federal government is investing in increasing production and trying to reduce carbon intensity. It defies all logic. The oil being produced is going to be burned somewhere. It is going to generate greenhouse gases.

Canada is one of the countries that invests the least in renewable energy, and we are also one of the countries most heavily tied to the oil and gas sector. In the next 15, 20 or 30 years, much to Alberta's chagrin, it will be a disaster. Other countries are moving forward; they no longer even want to consume products that are made in Canada because of the disproportionately high carbon footprint.

Somehow the Liberal government and the Conservative government do not seem to see it.