Natural Resources Committee on Feb. 5th, 2024

[Scott Tessier]

Sure.

The conversations, from our perspective, have really focused on what sorts of competencies we need as regulators to effectively take on this expansion of our mandate to offshore renewable energy projects. They've been quite comforting and validating, in that the assurance we get from our counterparts is that there are not significant expansions of competencies and skills required on the part of our staff in order to take this on.

That was really our primary focus in engaging with our regulatory counterparts. Beyond that, as I think both Christine and I said in our opening comments, it's exciting. It's exciting to see the regulators from around the world take on this new mandate and really become a part of the energy transition. That's been really encouraging in our interactions with all of our counterparts in those countries mentioned and beyond.

[Julie Dabrusin, Liberal, Toronto—Danforth, ON]

Can I ask the same question in terms of the Nova Scotia board's perspective? In your conversations with other international regulators that have expanded their authorities to include offshore wind, what's the feedback you've been receiving from them as to those opportunities?

[Christine Bonnell-Eisnor]

The feedback we've been receiving when we speak to members of the International Regulators' Forum and the Global Offshore Wind Regulators Forum is that the transition worked really well. The majority of the skills and the technical and regulatory expertise we have is directly transferable to regulating the offshore wind industry.

That process seems to go relatively seamlessly, recognizing that there are always special skill sets you need at certain times, and activity approvals and reviews. We'll get those resources or tools when we need them, but we're also seeing the importance of being an energy regulator, because then you already have the established knowledge of environmental concerns and that sort of thing.

Another thing to point out is that what is proposed in Bill C-49 is exactly the same as was done for the Canada Energy Regulator. They are a petroleum and an offshore renewable regulator at the same time and we will be as well.

[Julie Dabrusin, Liberal, Toronto—Danforth, ON]

That's great.

I'll go to Ms. Jones now, please.

[Yvonne Jones, Liberal, Labrador, NL]

Thank you very much, Ms. Dabrusin.

I want to pick up on a couple of things.

First, we talked about energy security and how critical it is in all of Canada, and in Atlantic Canada as well, and how important it is for investors to have stability and that stability of protection when they're investing in projects in Canada.

Do you see anything in Bill C-49 that erodes that stability and protection for investors in other offshore energy projects?

[Scott Tessier]

I do not.

[Christine Bonnell-Eisnor]

I don't either.

[Yvonne Jones, Liberal, Labrador, NL]

Thank you.

I also want to clarify one other piece, and that is with regard to the fishing industry. Can you tell me what the relationship is now between the offshore boards and the fishing industry?

What practices and processes have you set up for consultation as related to the oil and gas industry? Is there a transfer of that systematic piece into further offshore energy development projects?

[Christine Bonnell-Eisnor]

The fishing industry has coexisted with the offshore oil and gas industry in both the Nova Scotia and the Newfoundland and Labrador offshore board areas.

I can speak to the process we use in Nova Scotia. We have a fisheries advisory committee. The current version of how that's set up has been in place since 2005. We recognize the importance of the fishers who are on this committee and of the engagement and insight they give us. Through this committee, we recognize that, with the future expansion of our mandate, we need to further build and help support them and also gain their insight.

We've been facilitating opportunities for governments to talk to the fisheries advisory committee and learn about offshore renewable energy and offshore wind, as they stand. We are also encouraging them to get involved in the regional assessment going on in both of our respective offshore areas. We hope the strong relationships we've made with the fishing industry will continue and that coexistence will continue into the future.

[The Chair, Liberal, George Chahal]

Thank you for that.

We will now proceed to Monsieur Simard for two and a half minutes.

The floor is yours.

[Mario Simard, Bloc, Jonquière, QC]

Thank you.

I'll be brief, Mr. Tessier. One of the roles of the Canada-Newfoundland and Labrador Offshore Petroleum Board is to provide a framework for new projects. There are even auctions for new licences.

To your knowledge, are there several new oil projects still awaiting approval?

[Scott Tessier]

There are no proposals before the board currently. The Bay du Nord project is widely discussed but remains hypothetical. It is being assessed by Equinor in terms of its economic viability, so it is not before our organization at this time.

[Mario Simard, Bloc, Jonquière, QC]

Is there a provision in the bill allowing licences granted to oil projects to be cancelled?

[Scott Tessier]

The board can cancel an interest for violation of conditions and refuse to issue an authorization. Bill C-49 has an additional provision with respect to cancellation of interest by ministers, as opposed to the board.

[Mario Simard, Bloc, Jonquière, QC]

I don't know whether you can answer the next question. This bill is being presented to us as a tool to ensure the energy transition. The energy transition, to me, means moving from more carbon-intensive energy to less carbon-intensive energy.

Don't you find it paradoxical to always come out with new oil projects if the goal is to be part of the energy transition?

[Scott Tessier]

Ministers, Premier Furey and others have spoken eloquently about the place of oil in the energy transition. I think there's going to be a place for oil in the world for the foreseeable future. We all appreciate and recognize the urgency of the energy transition you described and the imperative to lower emissions.

[The Chair, Liberal, George Chahal]

Thank you for your answers.

We'll now go to Mr. Angus for two and a half minutes.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Thank you, both, for your excellent testimony.

At the end of the day, this is about the climate. It's also about jobs and the people who often bring expertise. They have travelled all over the world. They are able to work from their homes and not have to travel as much.

Mr. Tessier, you said that regulators around the world are taking part in a similar process. Would you say that Canada is on track with what we're negotiating to make us ready for our competitors in Europe, Australia and the United States? Is this a standard, straight-up process we're dealing with here?

[Scott Tessier]

Yes.

[Charlie Angus, NDP, Timmins—James Bay, ON]

If we vote—and I'm hoping we'll vote soon—you could get down to work and start getting the bids for offshore projects. You could compete and take some of that money going to the United States and bring it to Newfoundland and Labrador.

Are you ready for that?

[Scott Tessier]

We stand ready for offshore renewable energy projects.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Thank you.

Ms. Bonnell, you're in the same situation in Nova Scotia. Would that be correct?

[Christine Bonnell-Eisnor]

Yes, we are actively preparing for the expansion of our mandate and the increased interest in offshore renewable energy projects, such as offshore wind.

[Charlie Angus, NDP, Timmins—James Bay, ON]

We have the premiers on side. Your boards are ready. We have an international market moving. The only thing stopping us right now is Pierre Poilievre, who seems to be against the bill.

Would it send a bad message if this legislation gets blocked in the House of Commons so that you aren't ready for 2025?

[Christine Bonnell-Eisnor]

We need this bill in order to become the Canada-Nova Scotia offshore energy regulator, so if the bill doesn't pass, then we cannot administer the land sales and meet the targets that were set out by the provincial government.