Good morning, everyone.
Thank you for the opportunity to provide additional comments on this bill. I represent the Canadian Energy Pipeline Association.
I have some quick comments. Over the last two years, CEPA has committed fully to participating in consultations, discussions, and round tables on the government's review of the Fisheries Act, CEAA 2012, NEB modernization, and the Navigation Protection Act. CEPA provided over 200 pages of submissions and practical recommendations that were intended to help to achieve clarity and certainty and restore trust in the regulatory system for all stakeholders.
Throughout the process we have advocated for legislation that would be founded on science and fact-based decision-making, and we have leveraged the considerable and established expertise of the National Energy Board. We sought legislation that would achieve clarity, certainty, and predictability, while avoiding duplication.
Before I speak to Bill C-68, CEPA would like to reaffirm that we remain extremely concerned about the changes put forward in the impact assessment act, Bill C-69,, and we emphasized our concerns at the standing committee studying that bill. We have recently provided the government with detailed recommendations on amendments to the bill and we hope that changes will be made.
With respect to Bill C-68, our concerns are less profound and mostly related to details that are simply unknown at this point. We recognize that the proposed amendments in Bill C-68 are essentially a return to the pre-2013 approach to fisheries regulation, with added elements such as gender analysis, indigenous traditional knowledge, and community knowledge.
The effect of these potential changes is to increase regulatory burden, complexity, and uncertainty. The impact will very much depend on the approach to implementation. To put it another way, the mischief is in the details. Numerous regulations need to be developed, including the designated project list, timelines, habitat banking, and how authorizations or permits may be amended, suspended, or cancelled. These regulations will require significant consultation with stakeholders and at this point the details are unclear. We need to understand how Bill C-68 will be implemented. This includes an understanding of how advisory panels will work, the public registry, cost recovery, time limits for authorizations, habitat banking, and how gender analysis works within the context of the Fisheries Act.
We need to understand what groups and organizations could be considered an indigenous governing body, and we need to understand under what circumstances equivalency provisions will apply. We don't know how indigenous traditional knowledge will be considered and weighted. We simply do not have any clarity on any of these issues.
Although we have many questions, I would like to use the remaining time to focus our comments on four areas of concern that are of the highest priority to the pipeline sector.
First, there is the designated project list. Bill C-68 contemplates different processes for major projects than for smaller, routine projects. This, in and of itself, can be positive, allowing for more streamlined procedures for routine projects that have minimal impacts and known mitigation practices and upon which there is a large body of best practices that have been employed. However, we do not know what will be on that list or how it will be developed. Therefore, we strongly suggest that this legislation should not be passed in Parliament without the understanding of what the designated project list regulation will look like.
Second, we are concerned about how standards and codes of practice will be implemented. Proposed section 34.2 of Bill C-68 allows the minister to establish standards and codes of practice that may provide formal guidance for small routine projects. We consider this to be positive, if implemented in a practical manner. For more than 60 years, CEPA member companies have operated pipelines across the country, currently operating approximately 119,000 kilometres of pipelines, and they have constructed thousands of watercourse crossings. Because of this history, the environmental and socio-economic effects of building pipelines are well understood, and over the years best practices and standard mitigation methods have been developed and implemented. Having standards and codes of practice are of utmost importance to our industry. We require certainty and predictability during the permitting process. The codes of practice can provide that. Without codes of practice, our industry could be buried in time-consuming, uncertain approvals being needed for low-impact activities.
We are encouraged by the recent work done in collaboration with the Department of Fisheries and Oceans and scientists to prepare watercourse-crossing guidelines for pipelines. The guidelines, known as the fish and fish habitat impact assessment tool, could be one of the first standards referenced under the new legislation. In addition to input from DFO, the science underlying this guideline was reviewed by the Canadian science advisory secretariat using the highest, most rigorous scientific standards. The model used to prepare this guideline could be used by other industries.
Third, in terms of amending, cancelling, and suspending authorizations, a third area of concern is related to section 43. This section enables regulations to be developed whereby the minister or any other member of the public may request an amendment, suspension, or cancellation of an authorization or permit at any time. The rationale for this provision is unclear, and it creates uncertainty where there should be certainty. CEPA strongly suggests that this provision be removed from the legislation.
My fourth point relates to the National Energy Board, or the future Canadian energy regulator, and the role that the new CER will play in Fisheries Act authorizations.
In 2013, DFO and NEB signed an MOU, and that gave the NEB responsibility for initial review of Fisheries Act authorizations for NEB-regulated pipelines. Under the MOU, the NEB will assess the potential impacts on fish and fish habitat for pipeline watercourse crossings, and determine whether mitigation strategies are needed. If there are serious impacts, the NEB informs DFO and DFO will then review and be responsible for any authorizations, just like any other application. However, the NEB does the initial work to determine whether there are impacts. If there are none, the project applicant does not have to make a separate application to DFO.
Essentially the process triggered by the MOU avoids having two departments perform the same assessment. It avoids the duplication that drives more costly processes with long timelines. We are encouraged that Bill C-68 enables the sort of MOU that is currently in place with the NEB and DFO. To this end, CEPA recommends that the current MOU between the NEB and DFO be maintained.
In conclusion, CEPA recognizes that keeping water bodies and fish habitat protected is of utmost importance to Canadians, including pipeline operators, but we must also maintain a regulatory framework that provides clarity and certainty, avoids duplication, and further builds on the wealth of technical knowledge and best practices already in place to achieve our desired outcomes and ensure Canada's competitiveness.
Thank you very much. I look forward to questions.