House of Commons Hansard #267 of the 42nd Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was environmental.

Topics

Bill C-69—Proposal to Apply Standing Order 69.1POINT OF ORDERGovernment Orders

11:30 a.m.

NDP

Ruth Ellen Brosseau NDP Berthier—Maskinongé, QC

Mr. Speaker, Bill C-69 also enacts the Canadian energy regulator act. The impact assessment agency of Canada will be supported by the National Energy Board, which will become the Canadian energy regulator.

Bill C-69 also changes the Navigable Waters Protection Act, which was repealed by the Conservatives in 2012, and renames it the navigation protection act. With this bill, the Liberals have also expanded the Canadian navigable waters act, which was gutted by the Conservatives in 2012.

In the last election campaign, the Liberal Party promised Canadians that it would review the previous government's repeal of the Navigable Waters Protection Act, restore the lost protections, and add new, more modern ones. Although the new navigable waters act does increase legal protections for most navigable waters in Canada, it does not come close to restoring all the protections that were abolished.

The legislation used to provide both environmental and social protections for all future usage, as well as current usage. The new legislation is too technical, and its scope is too narrow, ignoring the overall social and environmental benefits of navigable waters.

Therefore, it would be entirely appropriate to split this bill for voting purposes at second reading so that members could review this legislation more carefully and better represent their constituents by voting separately on two completely different matters.

That is why, Mr. Speaker, we are asking you to separate completely the section of the bill concerning the impact assessment from clauses 1 to 9, 81 to 86, 101, 103 to 114, 143 to 146, 174 to 181, 184, and 189 to 196.

Then there is the part that establishes the Canadian energy regulator and sets out its composition, mandate, and powers. The role of the regulator is to regulate the exploitation, development, and transportation of energy.

We believe that this part is comprised of clauses 10 to 44, 87 to 100, 102, 115 to 142, 147 to 173, 182, and 185.

These are clearly not environmental matters because they have to do with natural resources, not the environment per se. We strongly believe that all matters related to natural resources, energy, forestry, ores, and metals should be dealt with separately from environmental matters.

Finally, there is the section on navigation protection comprised of clauses 45 to 80, 186, 187, and 188, which would modify the Navigation Protection Act, and also touches the transportation file.

This is a massive, complex, and blatantly obvious omnibus bill. Mr. Speaker, I am confident that you will agree that members and Canadians whom we represent would be much better served by dividing the votes on the bill accordingly.

Bill C-69—Proposal to Apply Standing Order 69.1POINT OF ORDERGovernment Orders

11:30 a.m.

Liberal

The Speaker Liberal Geoff Regan

I would like to thank the hon. member for Berthier—Maskinongé. I appreciate her patience with the interpretation issues. I will come back to the House with my ruling.

However, I also want to raise a point in relation to the Standing Orders that members do not all seem to be aware of. I want to remind members of the first part of Standing Order 16(2):

When a Member is speaking, no Member shall pass between that Member and the Chair....

At the beginning of the presentation by the hon. member for Berthier—Maskinongé, a member did cross between the member speaking and the Chair. The same thing happened yesterday and it happens all too frequently. This is not just a practice or a courtesy; it is a standing order. It is a rule of the House. It is an indication of showing respect for the House and so I want to remind members. I would ask those staff members listening in the offices of members to remind their members that members are not to pass between the person speaking and the Chair. I thank hon. members for their attention.

The House resumed from February 14 consideration of the motion that 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, be read the second time and referred to a committee.

Impact Assessment ActGovernment Orders

11:35 a.m.

Liberal

The Speaker Liberal Geoff Regan

Resuming debate. The hon. member for Lakeland has twelve and a half minutes remaining in her speech.

Impact Assessment ActGovernment Orders

11:35 a.m.

Conservative

Shannon Stubbs Conservative Lakeland, AB

Mr. Speaker, I am pleased to continue my comments on part 2 of Bill C-69, the Canadian energy regulator act.

Last week I shared some concerns about the bill, especially in the context of the Liberals' constant denigration and undermining of confidence in the regulator and in Canada's reputation at home and internationally, especially since the 2015 election, with respect to responsible resource development.

The Liberals have imposed new hurdles, delays, rule changes, called for phasing out the oil sands, added costs and roadblocks to the oil and gas sector, which is already the most heavily-regulated industry in Canada by all levels of government. They have told the hundreds of thousands of unemployed energy workers in Canada to just hang in there.

Regulatory and fiscal policies are key factors in the economics and business decisions of multi-year, multi-billion dollar energy projects for private sector companies. Now the Liberals are adding more uncertainty with more processes and more details yet to be known. The risk is the acceleration of the already massive investment and job losses in Canada's natural resources development as a result of the Liberals' ideological and anti-energy-driven decisions.

I am concerned about the new preplanning phase in part 1 that would apply to major projects like pipelines. Put aside the fact that Canadian common best practice already is to undertake early pre-project engagement with stakeholders, indigenous communities, and scientific experts. According to Bill C-69, after the initial six-month process, the minister alone can deny projects before the assessment stage. So much for experts, transparency, objective evidence and clear measures.

The bill provides no assurances that clear and publicly-known rules will be applied consistently to all project applications or that the full rationale for a denial will be made public. This approach clearly allows for political and ideological decision-making behind closed doors. The only hope for energy developers is that if a project is politically risky, the minister might kill it at the outset, instead of forcing proponents to wade through years of expensive reviews, wasting time and billions of dollars of capital investment, risking jobs in the meantime.

I want to review the three key claims made by the Liberals.

First, the Liberals claim that public participation will increase in both volume and effectiveness because of the elimination of the standing test of the National Energy Board. That test set out the two-pronged consideration for those who can participate: first, anyone who was directly affected by the project; and, second, anyone who had sufficient expertise or relevant information may be heard. On the face of it, that is reasonable.

However, let us look at a concrete example, the Enbridge Line 9B reversal and Line 9 capacity expansion proposal, about how this test operated in practice.

After receiving 177 applications to participate, the NEB granted 158 applicants full participation rights, and asked 11 applicants to submit a letter of comment. The board only denied eight. One of them appealed, so the courts examined her application and the board's decision. Her application was aimed at the second prong of the standing test, to contribute based on her expertise.

The judicial decision stated:

She stated that she had a specified and detailed interest in the matter...based on her religious faith. In her view, a spill from a pipeline, even far away from her home, is “an insult to [her] sense of the holy.”

I think this case illustrates that the standing test worked reasonably, designed to keep the focus of the approval hearings on important issues and to weed out irrelevant information.

Now let us review the new standing provision. Section 183(3) states, “Any member of the public may, in a manner specified by the Commission, make representations with respect to an application for a certificate.”

I note this language excludes no one. Every person or organization, so long as they comply with the procedure, may submit comment and be heard. This means that a radical anti-resources activist organization from Europe or an American-funded group competing with Canadian companies for investment dollars has the same right to be heard at a hearing for a pipeline, mine, or an LNG project in Canada under Canadian regulations, in Canada's process, as local stakeholders, indigenous communities, industry representatives, experts, and concerned Canadian groups.

Therefore, the regulator will have two options. It might choose to allow everyone who asks to be heard to provide comment, which effectively eliminates any meaningful participation, because when everyone is heard in fact no one is heard. Or the regulator will establish a hierarchy where some participants have the right to give oral and written evidence, others will give written submissions, and the least helpful or relevant contributions will be relegated to some kind of participation prize category where they can contribute but no one will care.

This is fundamentally chaotic, unpredictable, and unclear. How can a proponent prepare for a hearing process where literally anyone can provide comments and questions? Why should decisions about Canadian projects in Canada be influenced by non-Canadians?

The second key claim the Liberals make is that Bill C-69 would create concrete timelines of 450 days for major projects and 300 days for minor projects, except it does not really.

First, the clock starts only when the commission says the applicant has submitted the complete application, but it is entirely discretionary. The bill gives no definition of what is “complete”. It does not prevent the regulator from continuously deciding that an application is incomplete for political reasons or otherwise.

The second problem is that the regulator may exclude any period of time from the time limit calculations, so long as reasons are provided. It is any amount of time and any number of times. Is a timeline that could have any part of it excluded from the calculation really a timeline at all?

The third problem is that the minister may extend the timeline indefinitely by issuing repeat orders granting new 300 or 450 day timeline resets. Stakeholders, like the Mining Association of Canada, are concerned that the proposed system for timelines could undermine the competitiveness and growth prospects of mining in Canada, a sector that is often the only or the major employer in northern, remote, and indigenous communities.

It is disingenuous of the Liberals to claim they have made timelines concrete when the bill clearly shows there is nothing concrete about them.

The Liberals third claim is that new factors for consideration will make the approval process more robust and produce better results for Canadians. Of course factors for consideration for a major pipeline project, for instance, are fundamental to its viability. For example, the Liberals interfered in the energy east hearings, and their appointed panel told the NEB that even though it was years and millions of dollars into the process, energy east should be reconsidered, based on upstream and, for the first time ever, downstream emissions. Making upstream and downstream emissions a condition for pipelines is a double standard to which no other major infrastructure, or any other sector or foreign oil, is held. It is already regulated provincially. The Liberals forced energy east to be abandoned.

On page 167, proposed subsection 183(1)(2), it states:

The Commission must make its recommendation taking into account...all considerations that appear to it to be relevant and directly related to the pipeline, including

(a) the environmental effects, including any cumulative environmental effects;

The term is not defined and may be designed to allow a project to be killed for political expediency.

Cumulative environmental impacts should be clearly defined here, not left broad and vague. Also, it is unfair to project proponents to account for impacts elsewhere in the value chain. For example, the approval of Trans Mountain should not hinge on Kinder Morgan accounting for emissions of planes flying out of Victoria and Vancouver. Imagine if that same standard applied to other vital infrastructure, like highways, airports, and rail.

On top of that, once a project gets through every single hurdle and even if approval is granted, the minister or the regulator can still issue a post-approval demand for further study and evaluation. This new measure almost guarantees delays after future approvals. Despite the Liberal rhetoric, that is exactly how the B.C. NDP is trying to kill Trans Mountain right now. Unfortunately, it is already clear that under the Liberals, federal approval of a national project in federal jurisdiction does not mean it still will not be stopped.

For every Liberal claim about the bill, the process is clearly designed for political influence and intervention. At any stage the minister can step in and kill the project. Even at the various stages where there is no formal ministerial approval required, the minister still could interfere, just as the Liberals did with energy east, and signal to the regulator that the project needs to be delayed or killed outright. It does not clarify or streamline an objective, evidence-based process where decisions will be made by experts.

What are the results? Suncor, the leading integrated oil and gas company in Canada, says that it will not invest in major projects in Canada in the future. Billions of investment dollars are leaving Canada for the U.S. and other energy-producing jurisdictions. The combined impact of additional regulations, higher taxes, and uncertainty makes Canada a more difficult place to invest capital.

There is another component of Bill C-69 that requires careful examination.

The government claims the bill would broadly enhance and expand consultations with indigenous communities, but the government should be more precise and accurate. Bill C-69 does not actually change the consultation rights for indigenous communities at all. Canada has developed, through laws, executive action, and court decisions, a framework within which meaningful indigenous consultation occurs. The crown has a duty, when it takes executive action, to examine if it would interfere with or infringe on a section 35-protected right of an indigenous community. If such a right is identified and the executive still intends on following that course of action, the indigenous community must be meaningfully consulted and compensated for any loss or infringement of the right.

Bill C-69 simply would not change this fundamental principle.

What I have heard from pro-energy and pro-natural resources indigenous groups is that the Liberals are interfering with their ability to responsibly manage their lands and to engage with industry in equity partnerships, which is a widespread practice. From the tanker and drilling bans to the northern gateway veto, the Liberals unilaterally destroyed immediate and future opportunities in responsible resource development for indigenous people, without consultation.

Canadian natural resource proponents have long worked with indigenous communities early to identify affected communities and establish relationships. In the case of Trans Mountain, literally any indigenous community that wanted to be involved was included in consultation. The project is supported by 40 aboriginal groups along the route and four of the six first nations in the area are equity partners.

The real question the House must consider about the legislation is this. What global oil market share should Canada own? As well, what will really be the future of natural resources development and all the jobs it provides across the country? The fact is that global demand for oil and gas is going to continue to increase. Countries that do not match Canada's environmental, human rights, labour and consultation standards, and transparency are ready to meet that demand.

If the Liberals continue to create more layers and uncertainty, it will only mean Canadian energy investment will continue to fall and energy resources will not be able to meet that increasing demand from Canada.

Energy is the number one private sector investor in the Canadian economy, and it is Canada's second biggest export. The importance of this sector cannot be understated. The responsible development and transportation of Canada's energy resources lifts that standard of living of every Canadian, reduces poverty, and funds important social programs in every community across the country.

Canada's economy needs a strong natural resources sector. It has sole ownership of 7% of GDP. It produces billions of dollars and a million jobs. It is Canada's opportunity to continue to be an environmental leader in the world.

Ramming this bill through is irresponsible. Industry is already pulling investment capital from Canada. It is warning about the impacts of this legislation. Hundreds of thousands of jobs have already been lost. If Bill C-69 passes, in one blow, the Liberals will have put at serious risk the immediate and long-term future of Canada's natural resources development.

I will oppose this bill and encourage my colleagues to do so. I hope, at the very least, the Liberals will allow us to represent the people who sent us here on their behalf to represent their interests and values, and to give this massive legislation the debate it deserves.

Impact Assessment ActGovernment Orders

11:45 a.m.

Winnipeg North Manitoba

Liberal

Kevin Lamoureux LiberalParliamentary Secretary to the Leader of the Government in the House of Commons

Madam Speaker, I agree with the member that Canadians understand the importance of the energy sector. Coming from the west, we understand the importance of markets abroad. For example, for 10 years the Harper government was unsuccessful in delivering pipelines, not one inch of pipeline that would lead to tidewaters. The Conservatives can talk about it, but through the minister, this government has delivered on pipelines and energy while taking the environment into consideration.

Could the member explain to Canadians why the Harper government was so unsuccessful at delivering that valuable energy to markets through pipelines to tidewaters?

Impact Assessment ActGovernment Orders

11:45 a.m.

NDP

The Assistant Deputy Speaker NDP Carol Hughes

I want to remind the member for Foothills that if he wishes to participate in the debate, he can stand and be recognized.

The hon. member for Lakeland.

Impact Assessment ActGovernment Orders

11:45 a.m.

Conservative

Shannon Stubbs Conservative Lakeland, AB

Madam Speaker, under the previous Conservative government, 17 pipelines were approved, and four are in operation. The Liberals continue to spin this narrative that not one inch of pipeline was approved under the Conservative government. It is just not true. In fact, not one inch of pipeline the Liberals have approved, or any of the other initiatives, have been completed. They really need to drop this completely false rhetoric and misleading Canadians on this issue.

In fact, in recent history, only two new initiatives have been proposed as new pipelines to tidewater: the energy east pipeline, which would take Canadian energy resources to eastern Canadian refineries to secure our own energy independence and security and then shipped to European markets; and the northern gateway pipeline, which would have gone to the west coast to ship to the ever-increasing demand in the Asia Pacific.

The Liberals killed the energy east pipeline with rule changes and delays, and vetoed the approval of the northern gateway pipeline on the exact same day they approved other projects using the exact same science, evidence, and basis. It is all talk. No wonder Canadians do not trust them on this issue.

Impact Assessment ActGovernment Orders

11:50 a.m.

NDP

Linda Duncan NDP Edmonton Strathcona, AB

Madam Speaker, I am finding the debate most amusing, with both parties arguing over whose environmental assessment process guarantees that every project will be approved. It is not what the process is supposed to be about, but it is very revealing.

The member's colleague who sits on the committee with me has raised similar concerns to what I have about the uncertainty of the bill. Essentially, we have a framework where the details will come with regulations and rules to be implemented after the bill is finally approved.

I wonder if the member could agree with me that there is a serious problem. The decision on whether or not anything will be assessed will be left to a project list or to the discretion of the minister. Does she not agree that perhaps it would have been good to do this process at the same time that they were consulting on the bill?

Impact Assessment ActGovernment Orders

11:50 a.m.

Conservative

Shannon Stubbs Conservative Lakeland, AB

Madam Speaker, first of all, I do not want to be misunderstood. I do not think that Conservatives, or anyone here, are advocating that every single proposal or project must automatically be approved. Conservatives support, as we always have, the highest standards of consultation and environmental consideration, consultation with impacted communities and indigenous communities, for which Canada has long been known, for decades. In fact, we are second to none, to no energy producing country in the world. Canada is a world leader on all of those fronts. Conservatives support that and champion the Canadian energy and our long-time environmentally responsible, socially responsible, vigorous and rigorous standards, with a stringent consultation process for the consideration and approval of major energy projects.

However, I agree with the member wholeheartedly and completely that on a number of instances, as I outlined in my speech, and maybe we can get into it more through these questions and comments, the bill opens wide multiple levels and major scope of intervention by ministers—and it also should also be mentioned by non-Canadians—in the consideration and decision of Canadian projects that are so important to the entire economy and the millions of Canadians who are employed in the natural resources sector, both directly and indirectly.

Impact Assessment ActGovernment Orders

11:50 a.m.

Conservative

John Barlow Conservative Foothills, AB

Madam Speaker, I do not think there are too many people in the House who have the knowledge and expertise on this issue as does our shadow minister for natural resources.

Two things that the member touched on are quite important to discuss. Liberals are trying to talk about that this as a science-based, fact-based bill. However, the bill states that the Minister of Climate Change and Environment has the sole responsibility to decide if a project is in the public good and will decide whether that project moves from the assessment stage on to the full study.

What kind of impact will that have on a project when the proponent sees no clear path to success? In fact, he sees that no matter what kind of documentation, what kind of study and analysis are done, there is one person in cabinet who has the authority to say that the project is worthwhile and for the public good.

Impact Assessment ActGovernment Orders

11:50 a.m.

Conservative

Shannon Stubbs Conservative Lakeland, AB

Madam Speaker, we need to put this into context about what is happening in energy investment in Canada since the 2015 election under the Liberals. The two years after the election saw the steepest decline of energy investment in Canada from any other two-year period in 70 years. The dollar values are the equivalent of losing 75% of manufacturing, almost the entire aerospace industry in Canada. It is shocking that this has not been a pressing priority for the federal government and that it is bringing forward legislation that will cause more uncertainty and more risk, deterring more capital from Canada, which is important to every Canadian across the country.

The member is right on when he says that this flies in the face of all the Liberals' rhetoric about evidence, scientific-based decision-making, when they allow for political interference at multiple levels, including before the process even starts, and afterward by one single member of the cabinet who has already demonstrated a radical anti-energy agenda.

Impact Assessment ActGovernment Orders

11:55 a.m.

Liberal

Frank Baylis Liberal Pierrefonds—Dollard, QC

Madam Speaker, the member pointed out that the process of having pipelines approved is lengthy and challenging. There is no question about that. It has also been challenged that the government has been misspeaking when it says that the previous government was not able to get one pipeline built to tidewater. That has been challenged and it has been said it is incorrect.

Could the member give us the name of that pipeline that was built to tidewater? If not the name, could the member provide maybe where it was built, from where to where?

Impact Assessment ActGovernment Orders

11:55 a.m.

Conservative

Shannon Stubbs Conservative Lakeland, AB

Madam Speaker, what Canadians would like is for the Liberals to one day take responsibility for being government and to focus on the debate at hand. Here is what they have done.

The Liberals disallowed opposition members and opposition staff from being able to participate in a full technical briefing on this legislation along with media and stakeholders. They offered a technical briefing hours after they had already provided full rationale for stakeholders and media. That did not just impact their colleagues in the Conservatives, but it impacted our colleagues in the NDP. They may approach this issue from a different perspective, but they deserve to be briefed just as sufficiently nonetheless. Now they are cutting off debate on one of the most important pieces of legislation that would impact a sector which literally underpins the entire Canadian economy. It puts our reputation at risk as a long-term and future environmentally and socially responsible producer of oil and gas in the world.

Let us use our time here today, limited as it is and shut down as hypocritically as it was by the dictatorial Liberals, and let us focus on the legislation at hand. Let us debate the impacts of the bill that they have put forward and are trying to ram through.

Impact Assessment ActGovernment Orders

11:55 a.m.

NDP

Sheila Malcolmson NDP Nanaimo—Ladysmith, BC

Madam Speaker, I agree wholeheartedly with my colleague's comments about process.

In 2011, I wrote to Denis Lebel, the minister at the time in the Harper Conservative government, asking, from a local government perspective, for assurance that the government had a handle on what bitumen would do to the marine environment if spilled. I had a long list of questions, but they were never answered.

In 2013, the Harper government said it was going to conduct scientific research on bitumen, which did not happen, and then the National Energy Board process blocked the hearing of the evidence.

I would like to hear my colleague's views on how it feels to have this evidence come late into—

Impact Assessment ActGovernment Orders

11:55 a.m.

NDP

The Assistant Deputy Speaker NDP Carol Hughes

I want to allow a bit of time for the answer.

A very brief answer from the member for Lakeland, please, because the time is up.

Impact Assessment ActGovernment Orders

11:55 a.m.

Conservative

Shannon Stubbs Conservative Lakeland, AB

Madam Speaker, the fact is that multiple studies have been completed on the effects of diluted bitumen. That is a fact. I understand my NDP colleague's task is to carry on the anti-energy agenda of the B.C. NDP to try to shut down the Trans Mountain pipeline. That is what this is all about.

The Royal Society has called for increased studies on diluted bitumen, and I do not think anybody here would oppose that. However, it is absolutely false to say that the effects were not assessed under—

Impact Assessment ActGovernment Orders

11:55 a.m.

NDP

The Assistant Deputy Speaker NDP Carol Hughes

Sorry, as I indicated, I wanted a brief question and a brief answer. When we indicate a short question or comment, it has to be that.

Resuming debate, the hon. Minister of Natural Resources.

Impact Assessment ActGovernment Orders

11:55 a.m.

Winnipeg South Centre Manitoba

Liberal

Jim Carr LiberalMinister of Natural Resources

Madam Speaker, I am proud to rise today to support the legislation before us.

Canada was built largely on investment and innovation in our abundant natural resources, from our oil and natural gas to our minerals, like gold, silver, copper, nickel, and zinc, to our vast and diverse forests. Canadians know that investment and innovation in all of our natural resource sectors must continue so that we can get our resources to global markets and use the revenues they generate to invest in a clean energy future, a healthier future, for those who will follow us.

Bill C-69 recognizes that the only way to achieve this success is by creating a modern environmental and regulatory review system that is truly open and inclusive and that can get good resource projects built. This proposed legislation would restore investor and public trust, invite the full participation of indigenous people, and be grounded in science, evidence, and traditional indigenous knowledge. It would also be an important piece of a larger picture and a broader plan, one that responds with the global transition to a clean energy future. Canadians know that we are in the midst of that transition.

Last April, we invited Canadians to imagine Canada's energy future and to be part of the largest and most important conversation of its kind ever held in our nation. We invited Canadians to be respondent, joining in the conversation online by the hundreds of thousands, with hundreds more descending on my home city of Winnipeg for the two-day Generation Energy Forum last fall.

People came to Winnipeg from across the country and around the globe, from Norway, France, Mexico, and the United States. They came from every sector of the energy industry, oil and gas, wind, solar, nuclear, electricity. Indigenous leaders, youth leaders, community leaders, academics were all there. Several members opposite joined us as well, from every party except the Conservative Party. That speaks volumes about how much the official opposition cares about the future of the energy industry in this country. There was not one individual in a group of 650 from every region in our country who represented the official opposition. Had any of the members opposite felt it worth their time to join us, they would have found people who may never have spoken to each other before, in the same room challenging each other and themselves.

Suddenly, the questions became ever more pressing: What happens now? What if our individual choices could add up to transformative changes? Generation Energy tapped into something unexpected and special. Years from now, Canadians may very well look back and say that Generation Energy was a turning point, that it marked our emergence as a global leader in the transition to a low-carbon economy.

Our government is building a Canadian energy strategy, working with the provinces and territories to expand on what they have already done, leveraging the fossil fuel resources we have today to deliver clean energy solutions for tomorrow, leaning on shared priorities such as energy efficiency, clean technologies, and green infrastructure, and linking those provinces who have an abundance of clean electricity with those who are trying to get it.

Until this proposed legislation was introduced, we had been missing an important piece of this vision. We were missing an environmental and regulatory system that commands the confidence of Canadians, a system that ensures we can mine the minerals and metals that will go into tomorrow's clean technology, that we can tap our abundant natural gas as a transitional fuel, and that we can get our resources to market. Those resources, by the way, include Canadian oil.

One of the clear messages from Generation Energy was that Canadians want a thriving low-carbon economy, but they also know that we are not there yet. They understand that while we need to prepare for the future, we must also deal with the present, by providing energy that they can count on when they flick on a light switch, or fill up their gas tanks, or plug in their electric cars. This means we must continue to support our oil and gas industry even as we develop alternatives, including solar, biomass, wind, and tidal.

We do not share the view of those who would simply pump as much oil as we can as fast as we can, nor do we agree with those who say we should leave all of the oil in the ground and never build another pipeline. Both miss the larger goal of balancing economic prosperity and environmental protection. How do we do both?

We do it by promoting resource development while putting a hard cap on greenhouse gas emissions, including Alberta's 100-megatonne limit on the oil sands. We do it by putting a price on carbon, implementing a $1.5 billion oceans protection plan, and enforcing new environmental safeguards, such as those in the Pipeline Safety Act. We do it by recognizing that a strong and sustainable oil and gas industry represents an enormous opportunity to fund the transition to a low-carbon economy.

Here are a few quick statistics. In 2016, the oil and gas industry directly employed 190,000 Canadians, producing $75 billion in exports and accounting for almost 5% of our GDP. It also generated billions of dollars in government revenues, revenues that pay for our hospitals and schools, for the social programs that make us who we are, and for the clean energy and new technologies that represent our future.

The Harper government took the approach of ignoring indigenous rights, climate change, and the environment in favour of economic development at all costs. This resulted in Canadians losing trust in the way major resource projects were being assessed.

That is why, when we formed government, we introduced a set of interim principles to get environmental assessments and regulatory reviews moving on those projects already in the queue, principles that reflected our priorities: maintaining certainty for investors, expanding public consultations, enhancing indigenous engagement, and including greenhouse gas emissions in our project assessments.

The benefits of these interim principles were felt right away. Major projects, such as the Trans Mountain expansion and the Line 3 replacement pipelines were approved, while the northern gateway project was not. Each one was the right decision based on good jobs, sound science, and the national interest.

Our goal has always been a permanent fix to Canada's environmental assessments. Just seven months into our mandate, we launched a comprehensive review that included modernizing the National Energy Board, protecting our fish, and preserving our waterways. We appointed expert panels, enlisted parliamentarians, released a discussion paper, and at every step of the way consulted Canadians, listening more than we spoke.

What emerged from these efforts were the same messages we heard through Generation Energy. Canadians are engaged. They are well-informed. They know the economy and the environment can and must go hand in hand. They agree that Canada works best when Canadians work together.

Those are the hallmarks of Bill C-69, a new and inclusive approach to protect the environment and build a stronger economy, creating good jobs and a sustainable future. It is an approach based on restoring public trust, renewing Canada's relationship with indigenous peoples, collaborating with the provinces and territories, protecting our environment, fish and waterways, and encouraging more investments in Canada's natural resource sector: better rules to build a better Canada.

It all starts with our proposal for an early engagement and planning phase that would help resource companies with new projects identify the priorities of local communities and indigenous peoples. This would create immediate benefits. First, the proponents and their investors would have a clear lay of the land before they spend a lot of money advancing their proposals. Second, by identifying the key issues early, the ensuing project reviews would be shorter and more focused. In other words, by engaging earlier, companies would be better able to plan and develop smarter, all of which would help them to attract investment, maintain competitiveness, and enhance bottom lines.

Bill C-69 also proposes to integrate project reviews within a single, consistent impact assessment, which Canadians have been calling for for years: one project, one assessment. Our legislation would do this by creating a new federal agency for impact assessments, the impact assessment agency of Canada, that would be responsible for coordinating indigenous consultations and collaborating with federal regulators who provide specialized expertise.

We are also proposing to establish a new federal energy regulator to replace the National Energy Board. Called the Canadian energy regulator, or CER, it would have the required independence and the proper accountability to oversee a strong, safe, and sustainable Canadian energy sector in the 21st century. Located in Calgary where much of the country's energy expertise is located, the CER would help restore investor confidence, renew Canada's relationship with indigenous peoples, and rebuild trust through open and inclusive public participation, all while ensuring good projects go ahead and our energy resources get to markets.

This new energy regulator would be specifically designed to deal with the shifting global energy markets of the 21st century, to respond to the evolving legal landscape for indigenous rights, and to adopt new technology that can support greater transparency and broader public engagement.

Let me outline how the new Canadian energy regulator would do this in five key ways.

First, it would have a more modern and effective governance. While the National Energy Board has served Canadians well, its structure, role, and mandate have remained relatively unchanged since the National Energy Board Act was first introduced in 1959. The Canadian energy regulator act clarifies the new regulator's responsibilities and operations, while strengthening its independence and its diversity. This includes separating the regulator's adjudicative function, which demands a high degree of independence, from its daily operations where a high degree of accountability is what we need. This would be achieved through a board of directors that would provide oversight, strategic direction, and advice on operations, while the chief executive officer, separate from the board, would be responsible for day-to-day operations.

The new regulator would also include a group of independent commissioners who would be responsible for timely, inclusive, and transparent project reviews and decision-making. The act would enhance the diversity of the new regulator's board of directors and commissioners, requiring the regulator's expert panels to include expertise in traditional indigenous knowledge, as well as municipal, engineering, and environmental issues, and ensuring that at least one member of the board of directors and one commissioner are indigenous.

Second, the act proposes to strengthen investment certainty and deliver timelier decisions. The energy sector's future success depends on a predictable process and timely regulatory decisions for major new projects, without compromising on public consultations, indigenous reconciliation, or environmental stewardship. The principle of “one project, one assessment” directly addresses those concerns.

Under the legislation, the Canadian energy regulator would work closely with the new impact assessment agency for new projects requiring a full impact assessment. With smaller projects, the new regulator would conduct the reviews and have final decision-making authority for minor administrative functions, such as certain certificate and licence variances, transfers, and the suspension of certificates or licences. Under our plan, project reviews would not exceed two years for major new projects and not more than 300 days for smaller ones. The Canadian energy regulator act would also restore the regulator's pre-2012 decision-making authority to issue a certificate for major projects, subject to cabinet approval. This change is important because it removes the federal cabinet's ability to overturn a negative decision from the CER, but maintains the cabinet's right to ask commissioners to reconsider a decision.

The third key change is an emphasis on more inclusive public engagement. Our new approach would create more opportunities for Canadians to have their say on resource development. This would include more avenues outside of the traditional hearing process so that Canadians could debate pressing issues that are beyond the scope of the regulator's project reviews. The new Canadian energy regulator would also be more open and transparent, making more information public in a language that is easier to understand.

Here are a few examples. 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. The new regulator would also accept comments from the public on a draft list of issues and factors. These would include explicit consideration of environmental, social, safety, health, and socioeconomic issues, as well as gender-based impacts and effects on indigenous peoples. As well, the CER's participant funding program would be expanded to support new activities.

Fourth, the new Canadian energy regulator would help advance reconciliation through greater indigenous participation. No relationship is more important to Canada than the one with indigenous peoples. Our government is committed to renewing that relationship based on recognition of rights, respect, co-operation, and partnership. Our government's new rights and recognition framework represents a historic step in that direction, replacing confrontation with collaboration, but we know we cannot do this on our own.

Canada's energy sector has been playing a key role in building indigenous partnerships through benefit agreements, indigenous advisory and monitoring committees for new pipelines, and indigenous-led assessments. Our legislation would complement those efforts by recognizing indigenous rights up front and confirming the government's duty to consult, requiring consideration of traditional indigenous knowledge, building capacity and enhanced funding for indigenous participation, and aiming to secure free, prior, and informed consent.

Fifth and finally, the new federal energy regulator would oversee stronger safety and environmental protection. The Canadian energy regulator act would strengthen the federal energy regulator's powers to protect Canadians and the environment in a number of important ways, such as assigning new powers to federal inspection officers, clarifying the regulator's role in enforcing standards related to cybersecurity, and authorizing the CER to safely cease the operation of pipelines in cases where the owner is in receivership, insolvent, or bankrupt.

In all of these ways, through modern and effective governance, enhanced certainty and timelier decisions, wider public engagement and greater indigenous participation, and strengthened safety and environmental protections, the Canadian energy regulator would help create the new environmental and regulatory system we want, one that promotes common values and ensures shared benefits. Our legislation is for the Canada we have today and the Canada we want tomorrow, a Canada that uses the resources of its land and the resourcefulness of its people to lead in this clean-growth century, a Canada that not only imagines the future but creates it for generations to come.

Impact Assessment ActGovernment Orders

12:15 p.m.

Conservative

Shannon Stubbs Conservative Lakeland, AB

Mr. Speaker, instead of making a crass personal insult to the minister about the degree to which he cares, I am just going to focus this debate on facts.

Oil and gas investment under the Liberals is down 46% in Canada and up 38% in the U.S. A sixth of Canadian energy workers in the entire industry have lost their jobs under these Liberals. Four projects worth $84 billion were lost last year alone. The facts are that these Liberals have presided over the largest two-year drop in energy investment in Canada of any other two-year period in 70 years.

Instead of politicians debating back and forth about the facts, let us listen to the actual experts, which Liberals say that they love to do. WorleyParsons in 2014 said in an international comparison of leading oil- and gas-producing regions:

The results of the current review re-emphasized that Canada's [Environmental Assessment] Processes are among the best in the world. Canada [has] state of the art guidelines for consultation, [traditional knowledge], and cumulative effects assessment. Canadian practitioners are among the leaders in the areas of Indigenous involvement, and social and health impact assessment. Canada has the existing frameworks, the global sharing of best practices, the government institutions and the capable people to make improvements to [environmental assessment] for the benefit of the country and for the benefit of the environment, communities and the economy.

It continues:

...the review found that [environmental assessment] cannot be everything to everyone. In Canada, however, it is a state of the art, global best process, with real opportunities for public input, transparency in both process and outcomes, and appeal processes involving independent scientists, stakeholders, panels and courts.

Can we please just acknowledge the facts and stop undermining Canada's reputation and long track record as an environmentally and socially responsible oil and gas developer?

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12:15 p.m.

Liberal

Jim Carr Liberal Winnipeg South Centre, MB

Mr. Speaker, the hon. member quoted one person at great length, whereas we consult with leaders in the oil and gas sector all the time. We have had meetings one on one. We have had meetings in small groups. We have given many speeches in Alberta, British Columbia, Saskatchewan, Newfoundland, Quebec, and Ontario about Canada's energy future. We have a constant conversation with leaders in the oil and gas sector. We understand the values that matter most to them: the values of timeliness and predictability, and a regime that understands the value of job creation in the energy sector. Therefore, while the member at great length quoted one person of her choosing, she should know that this government consults a lot of people all of the time.

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12:20 p.m.

NDP

Linda Duncan NDP Edmonton Strathcona, AB

Mr. Speaker, I hate to cut through this love affair between the two parties about who loves the oil and gas sector the best but I would like to speak to the bill.

When the Liberals were running for office, they promised that no would mean no if indigenous people did not support a project. They promised no project approvals until a new law was enacted. Well, they approved a pipeline, a dam, and an LNG project despite the fact that indigenous people were expressing deep concerns.

We finally have this bill after two years of consultation. The minister has said that this is going to be a new and different process, that it will not be the same as the previous one, and the recommendations will no longer singularly be made by the National Energy Board. However, the bill proposes that the majority of members on an environmental assessment panel could be from the Canadian energy regulator. The Canadian energy regulator members of the panel would not have to consider climate or cumulative impacts.

Could the member explain how it is that the two parts of the bill are so different? Why is it that the energy authorities who will sit on the panel would not have to consider those matters?

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12:20 p.m.

Liberal

Jim Carr Liberal Winnipeg South Centre, MB

Mr. Speaker, for major projects, the life cycle regulators do not make up the majority of the panel.

The member seems to forget the range of principles that was announced by the government in January 2016 to deal with projects that were currently under review. Do I take it from her intervention that she would have squashed all of those projects under review that would have cost proponents hundreds of millions of dollars? Is that the member's sense of fairness? No. We said for those projects that are currently under review we would establish another process in the interim that would be guided by a set of principles, including greater consultation with indigenous peoples and with Canadians.

Let us keep the record straight. The fairness was embedded in those interim principles, which was the fairest way to proceed with those projects under review. If the member has a different interpretation, I would love to hear it.

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12:20 p.m.

Conservative

Marilyn Gladu Conservative Sarnia—Lambton, ON

Mr. Speaker, what the minister says always sounds really good, but what the government actually does is different. In the more than two years the Liberals have been in government we have seen the energy east project die from their lack of action. We have seen them kill the northern gateway pipeline. Kinder Morgan is in the process of dying due to their lack of leadership.

The other reality is basic math. If more consultation and 180 more days of pre-planning are added to the approval process, that makes the process longer, not shorter.

Could the minister explain why he is misleading Canadians into believing this process will be shorter?

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12:20 p.m.

Liberal

Jim Carr Liberal Winnipeg South Centre, MB

Mr. Speaker, I would ask the member rhetorically what the difference in the price of oil was between the time that the energy east project began and when the proponent decided to withdraw it. I would ask a second rhetorical question. How many pipeline approvals happened during that same period of time?

I will remind my colleagues that the Enbridge Line 3 replacement program was approved, the Trans Mountain expansion was approved, and President Trump approved Keystone XL. Perhaps the approval of that pipeline capacity and the change in the price of oil had something to do with that decision.

Why was the northern gateway application quashed by the Federal Court of Appeal? Was it because the proponent had not consulted sufficiently? No. Was it because the National Energy Board had consulted insufficiently? No. It was because the Harper government failed the legal test, which is why we said that we did not want to fail the legal test, so we applied a different set of criteria through the interim principles. That is the difference between—