Evidence of meeting #99 for Environment and Sustainable Development in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was projects.
A video is available from Parliament.
Liberal
The Chair (Mrs. Deborah Schulte (King—Vaughan, Lib.)) Liberal Deb Schulte
I call the meeting to order.
NDP
Linda Duncan NDP Edmonton Strathcona, AB
I would like to table a motion.
The motion is as follows:
That, with regard to the Standing Committee on Environment and Sustainable Development's consideration 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—
Liberal
The Chair Liberal Deb Schulte
Hang on, Linda. You have a point of order. You can't move a motion on a point of order. So what are you doing?
Liberal
NDP
Linda Duncan NDP Edmonton Strathcona, AB
Yes, I'm giving notice of the motion. I'm not expecting that we'll debate or vote on it.
NDP
Linda Duncan NDP Edmonton Strathcona, AB
I am giving notice of a motion that I think you will find interesting:
That, with regard to the Standing Committee on Environment and Sustainable Development's consideration 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 (a) the Chair of the Committee write, as promptly as possible, to the Chairs of the following standing committees inviting them to consider the subject-matter of the following provisions of the said Bill: (i) the Standing Committee on Natural Resources, Part 2 Canadian Energy Regulator Act, Part 3 Pipelines, Part 4 International and Interprovincial Power Lines, Part 5 Offshore Renewable Energy Projects and Offshore Power Lines, Part 6 Lands, Part 7, Exports and Imports, Part 8 Oil and Gas Interests, Production and Conservation, Part 9 and Part 4 at General; (ii) the Standing Committee on Transport and Infrastructure, Part 3 Navigation Protection Act; (iii) the Standing Committee on Environment and Sustainable Development, Standing Committee on Natural Resources,Standing Committee on Transport and Infrastructure, Part 4, Consequential and Coordinating Amendments and Coming into Force as the provisions may be relevant to each respective parts of bill C-69; (b) each of the standing committees, listed in paragraph (a), be requested to convey recommendations, including any suggested amendments, in both official languages, in relation to the provisions considered by them, in a letter to the Chair of the Standing Committee on the Environment and Sustainable Development, in both official languages, no later than 9 a.m. on Monday, April 30 2018; and (c) any amendments suggested pursuant to paragraphs (b) shall be deemed to be proposed during the clause-by-clause consideration of Bill C-69, and further provided that the members of the Standing Committee on the Environment and Sustainable Development may propose amendments notwithstanding the recommendations received pursuant to paragraphs (b).
Thank you very much. I have copies that I can circulate.
Liberal
The Chair Liberal Deb Schulte
That's great. We'll take those on board, and we'll put that for consideration at subsequent meetings. Thank you very much.
I want to welcome the ministers to the environment and sustainable development committee. We are kicking off our evaluation 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. We're very, very appreciative of having both ministers here with us today.
I will turn the floor over to you for 10 minutes each. Then we'll go into our rounds of questioning.
Minister McKenna, I think you would like to go first. The floor is yours.
Catherine McKenna LiberalMinister of Environment and Climate Change
Thank you very much, Madam Chair.
I certainly appreciate the opportunity to speak today about this important piece of legislation, and I really appreciate the hard work of all the committee members.
The legislation we introduced earlier this year aims to restore public trust in how the federal government makes decisions about such major projects as mines, pipelines, and hydro dams. These better rules are designed to protect our environment, improve investor confidence, strengthen our economy, and create good middle-class jobs. They will also make the Canadian energy and resource sectors more competitive.
With these better rules, we are working to build on Canada's strong economic growth and historic job numbers.
Together with my ministerial colleagues, I have been working very hard to deliver this government's promise to regain public trust in environmental assessment and regulatory processes to help get resources to market in a sustainable way and introduce new, fair processes. As a first step, in January 2016 we introduced an interim approach and principles that will guide decision-making for projects that were already in the system.
These interim principles clearly show the following.
First, decisions will be based on scientific and probative data as well as on sound traditional indigenous knowledge.
Second, we are going to listen to the opinion of Canadians and of their communities.
Third, indigenous people will be consulted in a significant and respectful way.
Fourth, decisions will consider the effects of the various projects on the climate.
Fifth, no project that has already been assessed will have to start the process from scratch.
Our government did not stop at interim principles. In June 2016, we launched a comprehensive process to review existing laws and seek Canadians' input on how to improve our environmental and regulatory system. This review was guided by two expert panels, two parliamentary committees, as well as extensive consultations with indigenous peoples, industry, provinces and territories, and the public.
The expert panel established in August 2016 and tasked with examining environmental assessment processes, travelled for four months to consult Canadians across the country. After that, the committee submitted to me a report that included a summary of the comments received and the way in which they had been examined, together with recommendations to improve federal environmental assessment processes.
The government then held a public comment period on that report and engaged with stakeholders and indigenous peoples. Over 1,000 online comments and 160 submissions were received, and over 100 in-person meetings were held with thousands of Canadians from across the country.
We then took all the information and input that we heard and released a discussion paper that outlined the government's proposed path forward, based on the feedback from the expert report and the submissions provided. This too was the subject of extensive consultations, both online and in person.
On February 8, I introduced Bill C-69, which is the culmination of all that input. The proposed legislation responds to what we heard from provinces and territories, indigenous peoples, industry stakeholders, environmental groups, and the public, addressing what matters to Canadians. Bill C-69 will introduce a modern assessment process that protects the environment, supports reconciliation with indigenous peoples, attracts investment, and ensures that good projects go ahead in a timely way to create new jobs and economic opportunities.
First, assessments will consider not just environmental impacts of projects, but also the social, health, and economic impacts they may cause. When making decisions, we will consider whether companies are using the best available technologies and practices to reduce impacts on the environment, and a gender-based analysis will ensure any potential impacts unique to women, men, or gender-diverse people are identified and addressed.
Under the proposed framework, decisions will be based on whether a project with adverse effects is in the public interest. A public interest determination will be guided by several factors, including the project's contribution to sustainability, impacts on indigenous peoples and their rights, and mitigation measures that are proposed to reduce the project's impacts on Canada's ability to meet its environmental obligations and climate change commitments.
Proactive strategic and regional assessments will allow the potential cumulative effects of development projects to be evaluated. In addition, the decision-making process will be more enlightened.
We also heard that project reviews need to be predictable, provide regulatory certainty, and work across multiple jurisdictions. The new legislation proposes to have one agency, the impact assessment agency of Canada, lead all major project reviews and coordinate with indigenous peoples. One project, one assessment, is a guiding principle to drive co-operative reviews and avoid duplication.
New tools are available for the impact assessment agency to work collaboratively with jurisdictions and with life-cycle regulators such as the Canadian Nuclear Safety Commission and the proposed Canadian energy regulator to ensure this principle is met.
A new early planning phase will engage jurisdictions, potentially affected indigenous peoples and communities, to ensure that key issues are raised early so that project proponents know at the outset what is expected from them.
Thanks to this early planning and participation stage, we will also be able to encourage the public on the front lines to participate in the dialogue. That stage will also allow us to simplify the process, something that is positive for everyone.
For the first time, there will now be a legislated timeline for decision-making for assessment. These timelines will ultimately shorten project assessments, allowing proponents to spend more time investing in project development to build the Canadian economy.
Indigenous peoples are leaders in conservation. They've long been stewards of the environment and have rights related to the management of land, waters, and wildlife. They have knowledge of the land that spans generations. We will advance Canada's commitment to reconciliation and get to better project decisions by recognizing indigenous rights and working in partnership from the start.
We will require traditional indigenous knowledge to be considered, as well as available scientific and other data.
Indigenous governing bodies will have more opportunities to exercise their powers and responsibilities under the Act to enact the Impact Assessment Act.
In addition, we will increase funding to the Participant Funding Program to support indigenous participation and to strengthen capacities linked to impact assessments.
We also heard that Canadians want to ensure that assessments are grounded in science and that the process is transparent and accessible. The bill proposes a number of measures to address these issues. Greater public participation opportunities will be provided, including during the early planning phase and during the impact assessment process. All Canadians will be assured the ability to participate.
An online registry will provide access to information on specific environmental assessments of projects, including the scientific data used in the impact assessment.
Summaries of the facts supporting the assessments, written in plain language, will be made available in order to ensure strong participation.
Assessments and decisions will be informed by the best available science, evidence, and indigenous traditional knowledge. Scientific evidence will be tested, and where findings are uncertain, third party reviews will be available.
The bill also proposes to increase transparency by requiring that decisions, with detailed reasons, are made public so that Canadians can better understand the rationale behind the decisions.
As you know, the proposed impact assessment act was informed by extensive consultation, and I am committed to continuing the dialogue.
Since the bill was tabled in the House of Commons, I have met with stakeholders from industry and from environmental groups, with representatives of indigenous peoples, and with my provincial counterparts in order to obtain their reactions on what has been proposed in the bill.
The better rules we announced this year reflect what we have heard overwhelmingly and consistently from Canadians over the past year and a half.
They want a modern environmental and regulatory system that protects the environment, supports reconciliation with indigenous peoples, attracts investment, and ensures that good projects can go ahead, which creates good, middle-class jobs and grows our economy. As we always say, the environment and the economy go together.
Thank you, Madam Chair, for the opportunity to speak to the committee today. I would like to thank the committee for the collaborative approach that you have taken in your work around this table to date, and I look forward to the outcome of your review of this important piece of legislation.
Liberal
The Chair Liberal Deb Schulte
Thank you very much, Minister McKenna. We appreciate those kind words for the work of the committee.
Minister Carr.
Jim Carr LiberalMinister of Natural Resources
Thank you, Madam Chair.
Good morning, everybody.
Let me begin by thanking you for your work. Really, the work of committees is at the heart of our democracy. The fact that it's in the centre of this building is a metaphor for how important it is.
I want to say that for ministers to come together and be accountable in front of members of Parliament from all parties is one of the most important things that we ever do. I look forward to the exchange, which I am sure might have its spirited moments, and that's the way it should be.
I also want to begin by picking up on something that Minister McKenna said, right at the end of her remarks. That's the importance of Bill C-69, to ensure that the economy and the environment continue to go hand in hand.
It makes sense for us to appear together. I'm sure both Conservative and Liberal members will remember that it wasn't always this way. There was a time when ministers of the environment and natural resources would probably not sit at the same table. When they sat around even their own partisan tables, things were always a bit tense. We believe in 2018 that there is one conversation.
Also, the minister and I were together in Vancouver last week at the GLOBE conference, giving keynote addresses and participating in panel discussions during round tables with indigenous people, with environmentalists, with leaders of industry and clean technology. It didn't matter in front of what audience, our message was always the same, the message that we're delivering this morning.
I think it is a powerful message that Canadians see the Minister of Natural Resources and the Minister of the Environment and Climate Change sharing the same table, demonstrating that the economy and the environment are not competing interests, but equal components of a single engine that drives innovation, jobs, and economic growth. That has been our government's vision from day one, and the results speak for themselves.
Last year, Canada added more than 420,000 jobs, most of them full-time positions, and many of them in our resource sectors.
Alberta, a province hit hard by three years of low oil and gas prices, is among those posting large job gains, adding 55,000 new positions. Its economic output per capita is again leading the country.
As one University of Calgary professor told the Canadian Press last month, Alberta's economy is recovering faster than almost anyone could have expected. On the other side of the country, Quebec is essentially at full employment, with labour shortages reported in some parts of the province.
It's not surprising, then, that Canada led all G7 countries with 3% growth last year and that our unemployment rate has been hovering around 40-year lows. Such robust growth is difficult to duplicate year after year; we know that. We also know that governments are a part of it; job creation is really due to the actions of individual Canadians.
Economies have their cycles, but the message is clear: we can create good jobs for the middle class and those working hard to join it, with a future built on the three pillars of economic prosperity, environmental protection, and indigenous participation.
Bill C-69 is a big part of our vision. It has the potential to transform our natural resources sector by providing project proponents with clearer rules and greater certainty, by allowing local communities to have more input, and by ensuring indigenous people have more opportunities in the development and oversight of our nation's vast resources.
That includes our energy sector, which is why we are proposing a new Canadian energy regulator, or CER, to replace the existing National Energy Board. We want to create a new federal energy regulator with the necessary independence and the proper accountability to oversee a strong, safe, and sustainable Canadian energy sector in the 21st century.
It would be a federal regulator with a modern, effective governance structure, one that includes a chief executive officer who would be separate from the chair; a board of directors that would provide strategic direction, distinct from a group of independent commissioners responsible for adjudication; and at least one member of both the board and the commissioners who would be first nation, Inuit, or Métis.
That's what the Canadian energy regulator act proposes to do.
Under our plan, timelines for reviews would also be shorter, more predictable, and better managed. Project reviews would not exceed two years for major new projects, and not more than 300 days for smaller ones, all the while continuing to recognize the expertise of the offshore boards and the Canadian Nuclear Safety Commission.
At the same time, the CER act would make public engagement more inclusive. For example, the NEB's existing “test for standing” would be eliminated to ensure every Canadian has an opportunity to express his or her views during project reviews. Participant funding programs would be expanded to support new activities.
We also want to advance reconciliation by building and funding the capacity of indigenous peoples to participate more meaningfully in project reviews, as well as recognizing indigenous rights up front, confirming the government's duty to consult, requiring consideration of traditional indigenous knowledge, and aiming to secure free, prior, and informed consent.
The new CER would have more powers to enforce stronger safety and environmental protections, including new powers for federal inspection officers.
All of these enhancements would ensure that good projects can proceed without compromising the environment or engagement, allowing our energy resources to get to markets in responsible, timely, and transparent ways.
Canadians have painted a similar picture for our country in this clean growth century through the hundreds of thousands who joined our ongoing Generation Energy discussion to imagine Canada's energy future, the hundreds more who travelled to Winnipeg last fall for our two-day Generation Energy forum, and the thousands who participated in 14 months of public consultation to draft this legislation. Canadians have told us that they want a thriving, low-carbon economy. They want us to be a leader in clean technology, and they want an energy system that provides equal opportunities to Canadians, while minimizing harm to the environment. They also understand that we're not there yet. We need to prepare for the future, but we must also deal with the present by providing energy that they can count on when they flick on a light or fill up their cars.
A modern energy regulator is essential to that, and to ensuring all Canadians have continued access to a safe, affordable, and reliable supply of energy. That has been the role of the National Energy Board since 1959. Under its almost 60-year-old mandate, the NEB has been responsible for making recommendations and decisions on projects, overseeing the safety and environmental performance of facilities, and engaging Canadians.
Today the NEB regulates approximately 73,000 kilometres of international and interprovincial pipelines and another 1,400 kilometres of international power lines, as well as all of our Canadian imports and exports of energy.
Unfortunately, the NEB's structure, role and mandate have remained relatively unchanged since the National Energy Board Act was first introduced in 1959.
That has created some challenges at a time when energy regulation should be evolving and adapting with the changing times, and when a modern energy regulator is central to integrating Canada's energy, economic, and climate goals. The new CER would help to address all of that.
For example, it would introduce a more inclusive approach to reviewing energy projects by incorporating a full impact assessment of key factors. As well, the CER's mandate would cover emerging energy developments such as the regulation of offshore renewable energy, and with legislative timelines, the new CER would significantly strengthen investment certainty. So will the new transition period that is based on clear rules, the earlier engagement to identify public priorities, the clearer direction on indigenous consultations, the coordinated activities between the CER and the new impact assessment agency, and the continued government responsibility for final decisions.
Bill C-69 is ambitious, but achievable. It is legislation designed for the Canada we know today, and the Canada we want for tomorrow, a Canada where we create the growing middle class we all want, while protecting the planet we all cherish for generations to come.
Thank you, Madam Chair.
Liberal
The Chair Liberal Deb Schulte
Thank you very much, Minister Carr.
Before I open it up to questions, I thought we might introduce the rest of the panel up there, your team.
With Minister McKenna, we have Ron Hallman, the president of the Canadian Environmental Assessment Agency.
We have Stephen Lucas, deputy minister from the Department of the Environment.
We also have, from the Department of Natural Resources, Christyne Tremblay, who's the deputy minister, and Jeff Labonté, who is the assistant deputy minister at the major projects management office.
Welcome and thank you very much for joining us today.
Our first question is from John Aldag.
Liberal
John Aldag Liberal Cloverdale—Langley City, BC
Ministers McKenna and Carr, thank you for coming to our environment and sustainable development committee to speak to Bill C-69. Like many of my colleagues, I believe this may be the most important piece of legislation that our government passes, and we have passed some very important legislation since forming office.
As a British Columbian with strong roots in the Prairies, I feel strongly that the current legislative and regulatory framework for projects has in the past decade failed our country, including our economy, our environment, and, as importantly, our indigenous peoples. We're seeing this through the conflict that's arisen, as an example, under the Kinder Morgan pipeline project that affects British Columbians, Albertans, and Canadians.
As a government, we added interim principles to address the shortcomings of the legislative and regulatory process left by the previous government for the Kinder Morgan pipeline project, and yet conflict remains.
Can each of you summarize for our committee and for Canadians who are following these hearings how Bill C-69 will provide clarity and certainty in the process for assuring future projects under federal jurisdiction, how this legislation will provide better protection for our environment, and how future assessments will include the input of Canadians, including indigenous Canadians with whom we, as a country, have a special relationship that requires special consideration? If you could each take about two minutes to provide your summary, that would be appreciated.
Liberal
Catherine McKenna Liberal Ottawa Centre, ON
All right.
Thank you very much. I also want to thank my deputy, Stephen Lucas, and also Ron Hallman, the president of CEAA. They've done an amazing job.
We knew when we came in as a government that we needed to rebuild trust in our environmental assessment system. We heard that from environmentalists and from indigenous peoples and from Canadians. We also heard that from industry, because it was impeding trust, which meant that it was much more challenging for good projects to go ahead, so that's exactly what we've done in the proposed legislation—rebuilt trust. Rebuilding trust means that we have made clear that the views of Canadians and the views of communities will be heard. There will be no standing test so that if you have concerns, you will have your opportunity to make them clear.
Reconciliation is a top priority for our government. We need to be working in partnership with indigenous peoples, and that starts at the very beginning. That starts in a new early engagement phase and it goes all the way through monitoring of projects. Indigenous traditional knowledge is a must-have, not just a nice-to-have.
We've moved from looking at just the environmental factors to doing a broader impact assessment test that will look at factors like the social impacts, the health impacts, and the economic impacts of projects, as well as, of course, the environmental impacts. We realize this is actually going to be better, because when we do this, we will be able to build trust in Canadians that we are making decisions based on robust science, that we are listening to communities, that we are working in partnership with indigenous peoples, and at the same time that we are making sure that good projects go ahead in a timely way.
As part of that, we've also looked at how we can ensure that we do more work in the front end, where we will give more certainty to businesses by looking at how we work with provinces so that we aren't duplicating efforts and making it more difficult for proponents, and also that we're giving them guidance about how to consult with indigenous peoples and about the permitting process.
Liberal
Jim Carr Liberal Winnipeg South Centre, MB
I would add that this is a different world from what it was in 1959 when the National Energy Board was first established. This is a different world even from what it was when the first idea of building pipelines was developed by proponents and the process of regulatory review was established a number of years ago.
This bill reflects that changing world, and we believe it reflects it in a way that recognizes and honours the three pillars of responsible economic development in the energy sector, and that is that we want good projects to go through. We understand that the expansion of export markets is of vital Canadian interest. Ninety-nine per cent of Canada's exports of oil and gas go to one country, the United States. We don't think that's healthy in the short term or the long term.
We started looking at what results we want and we concluded that we want responsible, good projects to go through in a timely way while respecting the environmental realities and our international and domestic obligations and our constitutional and moral obligations to indigenous peoples. We think that all three of those pillars and the values that underlie them are reflected in Bill C-69.