Natural Resources Committee on April 23rd, 2026

[Tim Hodgson, Liberal, Markham—Thornhill, ON]

The simplest way to think about it is that, with the current illegal set of tariffs the Americans are imposing, they have now collected, I believe, somewhere between $10 billion and $12 billion in unfair and unjust tariffs, and they're holding Canadian producers hostage with that tariff money.

[The Chair, Liberal, Terry Duguid]

Thank you.

Colleagues, I've had a conversation with Mr. Clark, and he's agreed to cede some of his time to me. That is the chair's prerogative, which I will use today. I use it rarely.

Minister, I'm aware that you spent a good part of your life in Manitoba. I'm from Manitoba, as you know, and you're very familiar with the port of Churchill, Canada's only deepwater port in the north. You're also aware that we have been studying energy exports and critical minerals and their potential for our country.

Churchill is listed as a strategic priority by the Government of Canada, and I wonder if you could say a bit about your vision for the port of Churchill and how it might fit into diversifying our trade and realizing the potential of our energy and critical mineral resources.

[Tim Hodgson, Liberal, Markham—Thornhill, ON]

Thank you, and I will admit to being a Bombers fan.

[The Chair, Liberal, Terry Duguid]

What about the Jets?

[Tim Hodgson, Liberal, Markham—Thornhill, ON]

The Jets weren't around when I was a kid, but I am a Jets fan, yes.

The port of Churchill plus project was referred to the Major Projects Office as an early-stage transformative strategy because of its potential to expand northern export capacity, enhance Arctic sovereignty and contribute to increased and diversified trade with Europe and other partners, as you well know, Mr. Chair.

As you also know, the MPO is working closely with the Government of Manitoba, with indigenous partners and with industry to unlock the port's full potential, which could include an all-weather road, an upgraded rail line, marine icebreaking capacity and potential new energy export opportunities, including LNG and other petroleum products. LNG is key to Canada's status as an energy superpower, and we've set ambitious goals for the industry for 2030 and beyond. Churchill could well play a part in that.

With the Canada-Manitoba project, under the one review agreement that was signed this week—well done—we're creating the conditions for nation-building infrastructure to advance in Manitoba.

[The Chair, Liberal, Terry Duguid]

Thank you, Minister.

We'll go to Mr. Clark.

You have two minutes and 37 seconds.

[Braedon Clark, Liberal, Sackville—Bedford—Preston, NS]

Thank you, Mr. Chair.

Minister, as we get into spring and the weather continues to warm, we're entering wildfire season. We know that wildfires across the country are becoming increasingly severe and dangerous.

When I was growing up in Nova Scotia, wildfires were not really part of life for us, and three years ago, I remember being in my backyard and looking up at the sun and thinking that it looked a little strange, a little red, a little unusual. Then all of a sudden we had a fire just down the road from us, and 200-plus homes were destroyed overnight. Miraculously, no lives were lost, but coast to coast to coast it's something we are dealing with in this country.

Could you give us an update on what the department is doing to strengthen the aerial wildfire response capacity of this country?

[Tim Hodgson, Liberal, Markham—Thornhill, ON]

Thank you for the question. It's a very important question, and as we come on fire season again, it's very poignant.

As you know, we continue to make significant investments to support wildfire management across the country, build Canada's capacity to respond to fires and enhance community safety. In the main estimates, you'll find that we're increasing funding by $70 million to prepare and strengthen our response to wildfires. This brings our total funding to $629.8 million through 2030.

This will support the procurement of equipment and four aerial water bombers. It will procure firefighting training for the provinces and incorporate indigenous knowledge into fire management.

[Braedon Clark, Liberal, Sackville—Bedford—Preston, NS]

In particular, the water bombers are critical. I know that there have been some situations in Atlantic Canada, for example, when we've had to shuttle them back and forth between New Brunswick and Nova Scotia. Enhancing that capacity is critical.

When it comes to critical minerals, which have been mentioned already, we know they're going to be one of the major, if not the critical, natural resources of the 21st century. Canada is a top five producer of 11 critical minerals. We have the reserves, we have the projects and we have the expertise to become a leading producer.

Can you share, Minister, what the government is doing to grow the critical mineral sector and attract investment in that really important industry?

[Tim Hodgson, Liberal, Markham—Thornhill, ON]

Yes, and thanks for the question. It is incredibly important.

As we all think about that vignette of President Trump lecturing President Zelenskyy about how he has no cards, I think every night as I go to bed about how to make sure we have the very best cards we can.

Some of our very best cards are our critical minerals, because quite frankly, Canada has what the world needs. Our critical minerals are strategic assets that are important not only to our national and economic security, but also to our allies' national and economic security, and that puts cards in our hands.

We're committed to constructive engagement with the U.S. to build a new economic and security relationship using our critical minerals. At the same time, we're taking a leadership role through the critical minerals production alliance to deepen our existing critical mineral co-operation with allies around the world to respond to deliberate market manipulation by other countries.

So far, as part of our efforts to rally all of our allies, we've announced 56 different partnerships with every one of our G7 allies, including—and I might not get the list completely right—Denmark, Norway, Finland, Japan and Australia. There are a couple of others in there.

[The Chair, Liberal, Terry Duguid]

Thank you, Minister. That's our time with you today. I really appreciate your testimony and responding to questions.

Thank you, colleagues, for your exchanges.

Minister, you've heard a variety of views around the table. That's quite normal, but this committee is working very well together.

[Corey Tochor, Conservative, Saskatoon—University, SK]

I have a point of order.

[The Chair, Liberal, Terry Duguid]

I'm just going to finish.

[Corey Tochor, Conservative, Saskatoon—University, SK]

I have a point of order, though.

Minister, when are you going to come back for the full hour and complete the nuclear study?

[The Chair, Liberal, Terry Duguid]

That's not a point of order.

We will suspend while we set up the next panel.

[The Chair, Liberal, Terry Duguid]

Colleagues, we're back in session. Welcome back. That was a good exchange with the minister. We're going to resume the meeting.

Pursuant to Standing Order 81(4) and the motion adopted on Thursday, March 26, the committee is resuming consideration of the main estimates for 2026-27, referred to the committee on Thursday, February 26.

I would like to welcome our new witnesses, who join officials from the previous panel. These are folks I haven't mentioned yet.

The whole NRCan family is here. Welcome, family.

From the Canada Energy Regulator, we have Tracy Sletto, chief executive officer. Welcome back, Tracy. We also have Jason Reid, executive vice-president, people, innovation and results, and chief financial officer; and Chris Loewen, executive vice-president, regulatory group.

From the Canadian Nuclear Safety Commission, we have Stéphane Cyr, vice-president, corporate services branch, and chief financial officer; and Colin Moses, vice-president, regulatory affairs branch, and chief of communications.

Let me make a few comments for the benefit of the new witnesses. Please wait until I recognize you by name before speaking. This is a reminder that all comments are made through the chair. Each agency will have five minutes for their opening remarks, after which we will open the floor to questions.

Ms. Sletto, you have the floor for five minutes or less.

[Tracy Sletto, Chief Executive Officer, Canada Energy Regulator]

Thank you very much.

Good afternoon, committee members. Thank you for inviting the Canada Energy Regulator to appear as part of your study on the main estimates.

My name is Tracy Sletto. I'm the CEO of the CER. I am joined today by Jason and Chris, as mentioned. In my opening remarks, I will provide a brief overview of the CER’s mandate and the 2026-27 main estimates, including how our funding is allocated and what it supports in practice.

I would also like to acknowledge that we are meeting on the unceded, ancestral and traditional territory of the Algonquin Anishinabe nation, who have lived on and cared for the land now known as Ottawa since time immemorial.

Before I begin my discussion of the estimates, I will give a brief overview of who we are.

The CER regulates energy infrastructure in a way that prevents harm and ensures the safe, reliable, competitive and environmentally sustainable delivery of energy across Canada. This applies to any pipeline that crosses a provincial or international boundary, and powerlines that cross an international border.

In addition to being a safety regulator, our mandate also includes a key economic role in financial regulation through the oversight of pipeline tolls and tariffs.

The CER regulates exports of energy products and oil and gas exploration and drilling in certain northern and offshore areas of Canada. The CER also has a mandate to provide information on energy matters.

Finally, we provide data and analysis that inform decision-making and dialogue on energy in Canada. All of our work is undertaken in a manner that respects the rights and interests of first nations, Inuit and Métis. In everything we do, safety and environmental oversight are always at the forefront.

The CER's operations are funded from parliamentary appropriations, and the Government of Canada recovers approximately 95% of the CER's cost from regulated industry.

I'd now like to give context to the CER's main estimates for 2026-27.

The CER's planned spending is $119.4 million, allocated across four core responsibilities. Safety and environment oversight accounts for $30.7 million, which supports the setting and enforcing of our expectations for regulated companies across the full life cycle of energy facilities. Energy adjudication receives $29.6 million, supporting the CER's commission decision-making on applications, hearings and regulatory processes. Our engagement core responsibility is funded at $11 million, enabling engagement and consultation with indigenous peoples and stakeholders nationally and regionally through open and responsive dialogue. Energy information receives $5.3 million to support the collecting, monitoring, analyzing and publishing of energy information for Canadians. Lastly, internal services enables the delivery of the four core responsibilities, with $42.9 million dedicated to management oversight, communications, legal, financial and human resource management, and IT functions.

Within these totals, transfer payments represent $10.6 million of the CER's budget. These funds are used specifically to support indigenous peoples and stakeholder participation in CER activities, including adjudication, engagement, safety and environment oversight.

As indicated in our 2026-27 departmental plan, our core responsibilities are guided by four strategic priorities, which are to foster trust and confidence by effectively delivering on our mandate, to enhance Canada’s global competitiveness through leadership in regulatory innovation and best practices, to advance reconciliation and implement the United Nations Declaration on the Rights of Indigenous Peoples and to prepare for the energy future by offering energy expertise.

Throughout 2026-27, we will continue to modernize our regulatory framework and streamline our processes. This includes initiatives identified in the CER’s “Red Tape Review Report”, such as launching a new digital portal, significantly reducing decision timelines for routine pipeline applications, removing outdated and unnecessary reporting requirements, and updating our onshore pipeline regulations.

In closing, I would like to thank you for giving us the opportunity to speak with you today. I very much look forward to your questions.

[The Chair, Liberal, Terry Duguid]

Thank you, Ms. Sletto.

Now we're going to Mr. Moses.

You're up for five minutes.

[Colin Moses, Vice President, Regulatory Affairs Branch and Chief Communications Officer, Canadian Nuclear Safety Commission]

Thank you, Mr. Chair.

My name is Colin Moses. I'm vice-president of regulatory affairs, and I'm pleased to present here today. I'm representing the Canadian Nuclear Safety Commission. I'm here on behalf of President Pierre Tremblay, who is currently in New Brunswick meeting with indigenous nations and communities.

I would like to begin by acknowledging that we are gathered on the traditional unceded territory of the Algonquin Anishinabe people.

Canada's nuclear sector is growing quickly, which means greater regulatory effort is needed. The Canadian Nuclear Safety Commission, or CNSC, emphasizes strong regulatory oversight. We focus on the most important elements of safety and we adapt new technologies and projects while maintaining our commitment to never compromising safety.

For nearly 80 years, the CNSC has served as Canada's independent nuclear regulator. As a life-cycle regulator, we provide rigorous independent oversight to ensure that Canada's nuclear supply chain and all nuclear-related activities meet the highest standards of safety, security and environmental protection. The commission is a quasi-judicial administrative tribunal independent from political, government and private sector influence, with exclusive jurisdiction over nuclear safety in Canada.

Public trust in the CNSC is essential to the conduct of all nuclear activities in Canada. We are seeing increased interest in nuclear energy, which makes it more important than ever to communicate clearly with the public we serve, to be transparent and collaborative, and to maintain a delicate balance between the interests of proponents and those of licence holders, first nations and indigenous rights holders.

As an agent of the Crown, the CNSC upholds its duty to consult with indigenous nations across its regulatory activities. We are committed to long-term relationships with indigenous nations and communities and to advancing reconciliation. Through collaboration and ongoing monitoring and oversight, we help ensure indigenous rights and interests are protected, including by supporting participation and providing funding.

We operate with a cost-recovery model that ensures our regulatory effort scales with industry activity while limiting impact on taxpayers. Seventy to seventy-five per cent of our costs are recovered directly from the nuclear industry, with 100% cost recovery applied to class I nuclear facilities, which include nuclear power plants, nuclear waste facilities, and uranium mines and mills.

Close to 80% of our costs are salary-based, reflecting the highly technical and specialized nature of our work. Reactor refurbishments, new mine construction and new nuclear projects, including both large reactors and small modular reactors, drive a higher regulatory workload. This is reflected in our planned spending in 2026-27.

In short, the CNSC manages its resources carefully with a financial model that ensures rigorous, independent nuclear oversight, clear accountability, and value for money.

As our workload increases, the CNSC remains focused on strong oversight and value for money. Under our cost-recovery model, we are reducing efforts in areas of lower safety significance so that resources are concentrated where they matter most.

We work with industry and industry associations to identify opportunities to streamline regulatory processes, including removing duplication, modernizing outdated requirements and improving how information is reported—without weakening oversight.

The CNSC also coordinates and collaborates as lead with federal and provincial partners to reduce duplication and support efficiency. This includes our current work to support effective delivery of four active, interrelated impact assessments for major projects such as the deep geological repository and new nuclear builds for Wesleyville, Bruce C and Energy Alberta.

All this effort contributes to delivering results. In the last year, the commission issued several significant licensing decisions, including two licences to construct new uranium mines and mills in Saskatchewan and a licence to construct Canada's first grid-scale SMR at the Darlington new nuclear project site, making Canada the first G7 nation to start constructing an SMR.

These decisions, along with major licensing renewals, licensing amendments and other regulatory oversight, demonstrate the effectiveness of our regulatory process and our capacity to respond to growing demand.

In conclusion, the Canadian Nuclear Safety Commission has two key priorities: protecting all Canadians and the environment through rigorous monitoring of current nuclear operations and preparing Canada for nuclear power in the future.

Thank you for the opportunity to be with you. I look forward to your questions.

[The Chair, Liberal, Terry Duguid]

Thank you, Mr. Moses.

Thank you to both organizations for appearing as witnesses before us today.

We are going to questions.

Go ahead, Ms. Stubbs.

[Shannon Stubbs, Conservative, Lakeland, AB]

Thank you, Chair, and thank you to all the officials for being here today and for your service to Canada.

Ms. Sletto, a lot of Canadians are trying to figure out the interplay between the MPO and the Canada Energy Regulator. I wonder if you can help us understand a project like the north coast transmission line. It has been referred to the Major Projects Office, which has been set up for about a year now. Can you tell Canadians what step that project is on at the MPO? It appears to have an eight-step system. How does the interplay between the MPO and the Canada Energy Regulator work?

[Tracy Sletto]

I will perhaps clarify as the Canada Energy Regulator that that project would not be in our jurisdiction. That one, from an energy regulation oversight perspective, is currently being overseen by the British Columbia Energy Regulator.

That isn't something I would be able to speak to today, nor would I be able to provide you with any further information about the Major Projects Office.

[Shannon Stubbs, Conservative, Lakeland, AB]

That's because of the equivalency agreement.

If a project comes up that would have to be adjudicated by the Canada Energy Regulator, when a project gets referred to the MPO, at what point do you interplay into the system?

[Tracy Sletto]

I would clarify that we would be working closely with the Major Projects Office on any energy regulated infrastructure that would be under the CER's jurisdiction. In the case of the project you're referencing right now—

[Shannon Stubbs, Conservative, Lakeland, AB]

Right. For projects under your jurisdiction, what would be the interplay?