Plans reflect enviro-lobby priorities

“The previous government eroded public trust in environmental and regulatory processes, making it harder for projects to get approved,” Jim Carr, the federal natural resources minister, said in announcing the reforms in Calgary. “We are restoring that trust.”

The reforms, which have to be approved by Parliament, reflect many of the environmental lobby’s priorities, while ignoring industry proposals.

Under the package of proposals, the Ottawa-based Canadian Environmental Assessment Agency, to be renamed the Impact Assessment Agency of Canada, will take the lead on federal reviews of major projects such as pipelines, replacing the Calgary-based National Energy Board. It’s the end of an era for the regulator, which led the establishment of Canada’s energy infrastructure since 1959.

The NEB will be renamed Canadian Energy Regulator and be relegated to a secondary role. It will provide input to the Impact Assessment Agency, along with the Canadian Nuclear Safety Commission and offshore boards, in cooperation with provinces, territories and Indigenous communities. The Canadian Energy Regulator will review both traditional and renewable sources of energy, including offshore renewable energy projects.

Project reviews will look at whether projects are consistent with Canada’s climate change commitments, including the Paris Agreement on climate change.

Public participation in project reviews will be expanded and anyone can participate, not just those impacted. The public will have input on a list of major projects that could pose major risks to the environment.

The federal government has been consulting for nearly two years to reform the National Energy Board Act, the Canadian Environmental Assessment Act, 2012 as well as the Fisheries Act and the Navigation Protection Act to fulfil Prime Minister Justin Trudeau’s promise to restore public trust in project reviews.

Canada has struggled for years to get big new energy projects to the finish line. The result is that existing infrastructure is full, there is no outlet for exports to new markets and Canadian oil and gas is heavily discounted.

Those hoping the reforms would restore trust in the Canadian industry were disappointed. Chris Bloomer, president and CEO of the Canadian Energy Pipeline Association, said broad public policy issues like climate change don’t belong in pipeline reviews and introduce new uncertainties, he said.

“Many questions remain ... While the industry is pleased to have an opportunity to further consult on these changes, today’s announcement adds uncertainty for CEPA’s members,” the group said.

Tim McMillan, president of the Canadian Association of Petroleum Producers, said the announcement lacks the details industry was hoping for.

“The pieces around timelines we are happy with, but there are others that could be challenging for our industry until we know how they will be implemented,” he said.

Carr said timelines for regulatory reviews will be significantly reduced and provide industry with the predictability and certainty its looking for. The new Canadian Energy Regulator will have plenty to do in its role by providing expertise to the Assessment Agency, he said.

Conservatives saw only gloom.

“Since the Liberals were elected in 2015, major capital investments in Canada’s resource sector have significantly declined due to regulatory uncertainty,” said Ed Fast, federal Conservative Shadow Minister for the Environment and Climate Change. “Now the Liberals are proposing the creation of new regulatory burdens, which when combined with a federal carbon tax, will impede Canada’s global competitiveness without enhancing environmental protection.”

Jason Kenney, leader of Alberta’s opposition United Conservative Party, said the reforms will result in more industry uncertainty.

“Under this federal Liberal government, the $15.7-billion job-creating Energy East project was scrapped following an outrageous mid-review mandate expansion from the federal regulatory agency,” he said. “Many aspects of today’s announcement appear to continue down this troubling direction.”

Indeed, reforms to restore public trust will be pointless if capital moves to fund energy projects elsewhere, leaving nothing to fight over in a weaker economy with fewer jobs.