Evidence of meeting #78 for Transport, Infrastructure and Communities in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was tankers.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Modestus Nobels  Interim Chair, Friends of Wild Salmon
Caitlyn Vernon  Campaigns Director, Sierra Club of British Columbia
Gavin Smith  Staff Counsel, West Coast Environmental Law Association
Robert Hage  Fellow, Canadian Global Affairs Institute, As an Individual
Andrew Leach  Associate Professor, Alberta School of Business, University of Alberta, As an Individual
Robert Lewis-Manning  President, Chamber of Shipping
Misty MacDuffee  Biologist and Program Director, Wild Salmon Program, Raincoast Conservation Foundation

3:40 p.m.

Liberal

The Chair (Hon. Judy A. Sgro (Humber River—Black Creek, Lib.)) Liberal Judy Sgro

I bring to order the meeting of the Standing Committee on Transport, Infrastructure and Communities in this 42nd Parliament. Pursuant to the order of reference of Wednesday, October 4, 2017, we are looking at Bill C-48, an act respecting the regulation of vessels that transport crude oil or persistent oil to or from ports or marine installations located along British Columbia's north coast—its beautiful north coast.

Thank you very much to our witnesses.

We will start with Friends of Wild Salmon.

Mr. Nobels.

3:40 p.m.

Modestus Nobels Interim Chair, Friends of Wild Salmon

Thank you, Madam Chair.

I sit before you today to provide testimony in support of this bill. There is a broad base of support for this initiative on the north coast, where I live. The people who live in the region have been working for almost four decades to realize this day.

In our submission, you have several pieces from various municipalities that have felt compelled to provide support for this bill as well. They have written to both the Prime Minister and the minister himself. Our MP, Nathan Cullen, has felt compelled over the years to also speak on this issue. He brought forward a private member's bill some years ago with regard to the issue.

For those of us who live on the north coast, it is an extremely important place. We rely heavily on the resources within that region for economic, recreational, and personal use. We have for years feared an oil spill and the repercussions of that in terms of how our lives would fold out. I don't know how to equate for you the value that exists there for us. We have lived on that piece of land for a long time. Many of my neighbours are from first nations who have been there for centuries. We all rely upon the ocean there. We all rely upon the resources. Those resources are, to us, more important than the other industries that have been brought to us as economies. The economy we wish to see in the region is that of fish, of forestry, and of an ocean that we can rely upon for tourism for generations to come.

This bill, we hope, will provide us with the protection we've been looking for. For years and years, we have been trying to get this kind of initiative in place, to find some protection for our homes and the place in which we live. This place is a national treasure, to our minds. It's a spot that has huge abundance and great wealth in terms of the natural resources provided by the marine environment. We subsist on a lot of this, and we don't want to see it lost. We believe this bill will provide us the surety we are looking for, and provide surety for generations to come. The resources that exist there are invaluable. There's no way you could put a value or a price on this resource. Therefore, it is extremely important to us.

Canada itself has been working for the last couple of decades, feverishly in some respects, to provide protection for the oceans that surround our country, and is looking at 10% protection overall. We're hoping this bill will in turn play into that role and will help sustain that protection. For those of us who live there, it is not just a matter of an economy. It is a matter of our lifestyle and the quality of life we enjoy. For us, the belief is that it's time, as it has been for a long time, to come to this conclusion and finally protect what is an extremely beautiful place.

I'm not sure if the committee will allow it, but I have brought a cookbook for the committee members. This is not just “a” cookbook: this is part of my testimony today. It's a testimonial by the people who live in the region where I live. The recipes are their own recipes. The testimonials that accompany the recipes will in part inform you of the value we place upon those resources that are on our doorstep. It's one that we would gladly trade for...nothing. There's nothing that we could trade for it. The ocean, for us, is not just a place to generate an economy. It's a place that we live in and that sustains us.

It's time we showed this area the respect it requires. I would urge that this bill be brought forward and passed.

Thank you.

3:45 p.m.

Liberal

The Chair Liberal Judy Sgro

Thank you very much, Mr. Nobels, and thank you very much for the offer of the recipe book.

Mr. Nobels has brought a book for each and every one of us. It is in English only, so I will need unanimous consent in order to see that each committee member gets one.

Do we have unanimous consent to distribute the cookbook?

Are you saying no, Mr. Donnelly?

3:45 p.m.

NDP

Fin Donnelly NDP Port Moody—Coquitlam, BC

We have to have it in both official languages for it to be accepted, but I think that if he can distribute it in other ways, that would be great.

3:45 p.m.

Liberal

The Chair Liberal Judy Sgro

Mr. Nobels, I'll ensure that it is distributed.

3:45 p.m.

Interim Chair, Friends of Wild Salmon

Modestus Nobels

Thank you very much, Madam Chair.

Again, I would suggest that you read carefully the portions that have been put in here in terms of the testimonies of the people who provided the recipes. It's their lives; it's their home.

Thank you.

3:45 p.m.

Liberal

The Chair Liberal Judy Sgro

Thank you very much.

Ms. Vernon, campaigns director of Sierra Club of British Columbia, welcome.

3:45 p.m.

Caitlyn Vernon Campaigns Director, Sierra Club of British Columbia

Thank you for the opportunity to speak to Bill C-48.

Sierra Club BC strongly supports this oil tanker moratorium act. However, to truly protect the coast and all who depend on it, we believe the bill needs to be strengthened in four key ways, outlined in our written brief, which I am told you will be getting very shortly: limiting the ministerial exemption to emergency circumstances; including refined oil under the scope of the bill; decreasing the tonnage threshold to 3,200 tonnes, which, according to a recent Transport Canada report, is the maximum needed for community fuel supply; and expanding the geographic scope to prohibit vessels above 3,200 tonnes from transporting crude or refined oil through Hecate Strait, Dixon Entrance, and Queen Charlotte Sound.

We believe these amendments are necessary, because oil spill cleanup is effectively impossible, and because B.C.'s north coast, the Great Bear Rainforest, is a unique and special place, truly a global treasure worth protecting.

Some years ago, I was invited to a feast at the Gitga’at Nation in Hartley Bay. The table in the big house was loaded with food from the ocean, food you can't find in a grocery store: smoked eulachon, sea cucumbers, and sea lion. The seaweed was particularly good, so I asked around to see if I could buy some to take home. The next morning, a woman came up to me and gifted me a big bag of seaweed; she wouldn't let me pay. In return, she said, I could help them stop the tankers.

It's difficult to overemphasize how the narrow waterways of the north coast are the breadbasket, livelihood, and culture to coastal communities. This is a place where you can watch a spirit bear catch a salmon, catch a whiff of a sea lion colony, and come eye to eye with the coastal wolves that eat seafood. Even on land, the globally recognized Great Bear Rainforest depends on a healthy ocean. The bears eat barnacles, and the trees actually grow bigger in years with good salmon runs. There is nowhere else on earth like it, so we commend the government for introducing Bill C-48.

This bill is an important step in preventing oil spills. In the case of a spill, what industry considers a success—10% to 15% recovery in accessible locations in good weather—is really a disaster for the communities and ecosystems left behind. While improving our spill response capacity is a good thing, having a bigger mop doesn't actually prevent the spills from happening in the first place.

In October of last year, the Nathan E. Stewart ran aground in Heiltsuk territory. This was an articulated tug barge that transported petroleum products between Washington state and Alaska. Fortunately, the fuel barge was empty. Even so, the sinking of the tug spilled over 100,000 litres of diesel, contaminating important harvesting and cultural sites. The response was slow, uncoordinated, and completely ineffectual for the conditions. Booms broke, and waves crashed over the booms. Fisheries are still closed. The Nathan E. Stewart provides a sobering reminder of the challenges of spill response in remote locations, and that social, economic, and environmental impacts can be very severe from even a relatively small spill of refined oil products. Note that I am not talking about just crude oil or persistent oil, but also the impacts of refined oil spills.

There are two refineries undergoing environmental assessment in northern B.C. that would result in supertankers carrying refined oil. These non-persistent oils are acutely toxic to marine organisms. The risk of an oil spill was a key motivating factor in why so many municipalities, first nations, unions, regional districts, businesses, and individuals over the years spoke out against Enbridge's Northern Gateway proposal, and why coastal first nations have declared a ban on tankers in their territories.

This government has broad-based public support for a tanker ban. However, the expectation is that the bill prohibit all tankers, not just some tankers. As I have outlined, this can be done through amendments that continue to allow for community fuel supply while prohibiting articulated tug barges, as well as tankers, from carrying refined oil.

While Bill C-48 focuses on the north coast, it must be mentioned that oil tankers also pose a huge risk to the communities, the economy, and the wildlife on the south coast of B.C., and that LNG tankers are a safety hazard. True coastal protection would ban oil and gas tankers, both north and south. Then, instead of investing in spill response, we could support the wild salmon economy and expand renewable energy production that could generate jobs without damaging our climate or putting our coast at risk of spills.

Thank you.

3:50 p.m.

Liberal

The Chair Liberal Judy Sgro

Thank you very much, Ms. Vernon.

Gavin Smith, staff counsel, West Coast Environmental Law Association, welcome.

3:50 p.m.

Gavin Smith Staff Counsel, West Coast Environmental Law Association

Thank you, Madam Chair. Thank you for the opportunity to speak before the committee.

The West Coast Environmental Law Association also strongly supports Bill C-48, the oil tanker moratorium act. We've prepared a written brief, which I understand has yet to be translated. In that brief, we make a number of points, but I'm going to focus particularly on one of those right now, which is the clause 6 exemption provision that allows the minister to exempt oil tankers from the bill's prohibitions.

However, I will note that in our written brief we also address issues such as a recommendation to create a regulation-making power for appropriate public disclosure of monitoring enforcement information under the bill, as well as a recommendation about seeking further information from Transport Canada on the 12,500-tonne threshold when the oil supply study that Ms. Vernon mentioned indicated that supplies to communities are currently in the amount of approximately 3,200 tonnes.

I'm happy to answer questions on those, but I will focus on clause 6 and in particular recommend three amendments to clause 6, which we say would preserve its sensible purpose of allowing for the provision of necessary oil supplies during dire emergencies while adding three crucial safeguards to protect the purpose of the bill and the public's access to information, each of which I'll address in turn.

First, we recommend that clause 6 explicitly limit the use of the exemption provision to circumstances that, in the opinion of the minister, constitute an emergency. Currently under clause 6, the minister may issue oil tanker exemptions for any reason that the minister believes to be in the public interest or essential for community and industry resupply. The exemption provision is not limited to emergencies, and it could be used to grant oil tanker exemptions for other purposes, including those potentially contrary to the purpose of the bill.

Minister Garneau has been very clear before this committee and in the House that the purpose of the exemption provision is solely and exclusively to respond to dire emergencies. We say that the clause 6 exemption provisions should reflect that in order to ensure that the provision is not used for other purposes.

Second, we recommend imposing an expiry period for oil tanker exemption orders under clause 6 with ministerial authority to order extensions as necessary. We propose an expiry period of one year for oil tanker exemption orders and orders to extend them, although we note there's no magic in that number provided there is an expiry period of a relatively short term.

Currently under clause 6, the minister may order oil tanker exemptions for any period of time without restriction, including potentially long-term or even indefinite exemptions. We say that setting a default term for oil tanker exemption orders would greatly curtail potential use of the exemption provision for long-term objectives that are incompatible with the bill's purpose, and also reflect the reality that, in general, emergencies are not likely to require long-term oil tanker exemptions. At the same time, the ability to order extensions of those orders would provide flexibility to maintain exemptions for longer periods where required.

Third, we recommend adding a simple requirement that oil tanker exemption orders be published in the Canada Gazette. Currently, legal requirements for public notice of access to exemption orders are explicitly removed by subclause 6(2) of Bill C-48. That is because the Statutory Instruments Act and its regulations generally require publication of statutory instruments in the Canada Gazette and provide for public access to and the right to copy statutory instruments.

However, those provisions would not apply to an oil tanker exemption order under the bill, because subclause 6(2) says the Statutory Instruments Act does not apply. The apparent rationale is to ensure that exemption orders can enter into effect quickly with a minimum of procedural requirements during an emergency. We don't propose disturbing that approach. Rather, we simply recommend adding a requirement to publish the orders in the Canada Gazette to ensure that the public has proper notice of such exemptions.

In summary, the clause 6 exemption provision could, if used to its full extent as currently drafted, allow wide-ranging and long-term exemptions from the bill's oil tanker prohibitions to be ordered behind closed doors without appropriate public review, potentially gutting the very purpose of the oil tanker moratorium act. We fully understand that this is not the minister's intention. He has been very clear on that point. However, given that, as the minister stated to this committee, the purpose of the bill is to preserve the pristine north coast for posterity, we say, then, that the bill's provisions must stand the test of time. This requires firm prohibitions that cannot be easily circumvented in future through the use of a broad exemption power.

The three amendments that we propose to section 6 would achieve this goal, providing ample flexibility for oil tanker exemptions when necessary, during emergencies, while eliminating uncertainty about whether the exemption provision could, in future, be used for purposes other than that, and potentially those contrary to the spirit of the bill.

Thank you.

3:55 p.m.

Liberal

The Chair Liberal Judy Sgro

Thank you very much, Mr. Smith.

We'll go on to questioning with Mr. Lobb for six minutes.

3:55 p.m.

Conservative

Ben Lobb Conservative Huron—Bruce, ON

Thanks very much.

I'd just like to thank all of our witnesses for their presentations today. My riding is on Ontario's west coast, and we're very thoughtful about the quality of the water on Lake Huron and the environment and the ecosystems that feed into it.

Ms. Vernon, I'd like your interpretation with regard to fuels like diesel, light diesel, gasoline, etc. How large a vessel might be able to go to one of those proposed refineries that you mentioned?

3:55 p.m.

Campaigns Director, Sierra Club of British Columbia

Caitlyn Vernon

First of all, the recent Transport Canada study is clear that for the purposes of community fuel resupply, 3,200 tonnes is—

3:55 p.m.

Conservative

Ben Lobb Conservative Huron—Bruce, ON

No, but I'm talking about—

3:55 p.m.

Campaigns Director, Sierra Club of British Columbia

Caitlyn Vernon

You're talking about the refinery.

3:55 p.m.

Conservative

Ben Lobb Conservative Huron—Bruce, ON

I'm talking about the fuel potential. Is it 300,000 metric tonnes that they may be able to ship? Is it 250,000 metric tonnes they may be able to ship? Have you done any analysis on that?

3:55 p.m.

Interim Chair, Friends of Wild Salmon

Modestus Nobels

No, and I've seen no numbers with regard to that either.

3:55 p.m.

Conservative

Ben Lobb Conservative Huron—Bruce, ON

Okay. I was just curious as to whether you'd done any analysis. Obviously, I understand that for the bitumen or the oil, it's at the 12,500 point, but I was just wondering about the refined fuels, and whether you'd done an analysis of what size of tankers could be going up and down the area.

3:55 p.m.

Interim Chair, Friends of Wild Salmon

Modestus Nobels

Both of the refinery proposals that are being looked at for the north coast are in their infancy, and as such they are proposals and not much else at the moment.

4 p.m.

Campaigns Director, Sierra Club of British Columbia

Caitlyn Vernon

My understanding is that they would be supertanker size, so they would be significant. They would not be captured—

4 p.m.

Conservative

Ben Lobb Conservative Huron—Bruce, ON

That's correct.

4 p.m.

Staff Counsel, West Coast Environmental Law Association

Gavin Smith

I would just add one point to that. There have been materials filed with regard to Pacific Future Energy and Kitimat Clean Ltd., in which they have suggested that very large crude carriers would be carrying their products. Those are, again, preliminary materials.

4 p.m.

Conservative

Ben Lobb Conservative Huron—Bruce, ON

Okay.

We had a witness here last meeting from CN Rail, and by video conference from InnoTech, I think the company was called, with their proposed product called CanaPux. I'm wondering if you're familiar with CanaPux. The technology's not quite at the mature stage, but it looks as though they're continuing to move forward on it, file patents, etc. Do you have any thoughts or issues on the potential for CanaPux going up and down the coast?

4 p.m.

Interim Chair, Friends of Wild Salmon

Modestus Nobels

First of all, I have very little knowledge of CanaPux. I understand what it is and I know the impetus behind it, but we've had little or no information brought forward to us with regard to what CN is planning. This is in part the first that I've heard that they're looking at transporting it into the region. I would have to look a little more closely at what they're proposing to really be able to answer that question.

4 p.m.

Campaigns Director, Sierra Club of British Columbia

Caitlyn Vernon

Yes, and I think the main thing would be to look at what might happen if it spilled into the marine environments. I don't have that information, but that would be my concern.