National Post (National Edition)

CREATING THIS ENTIRELY NEW, EXPENSIVE PROCESS WOULD NOT HAVE CHANGED THE MINDS OF THE B.C. GOVERNMENT.

- Joe Oliver was formerly minister of finance and of natural resources. Ron Wallace has served on federal, provincial and territoria­l energy and environmen­tal regulators and advisory boards. He has written extensivel­y on the environmen­t, national defence an

sive process ($1 billion and counting) would not have changed the minds of the B.C. government, environmen­tal groups, certain coastal communitie­s or First Nations.

The bill will add an additional layer of bureaucrac­y through the creation of an Impact Assessment Agency of Canada, with responsibi­lity for project reviews. Also, existing regulatory bodies, including the National Energy Board (NEB), will continue to monitor lifecycle activities and will be involved in joint impact assessment­s, which will be part of an “integrated review process.” That sounds more like triplicati­on than a single review, so the table is set for dissension and delay. Other than political posturing, there is no apparent justificat­ion long-term social and health impacts and upstream and downstream emissions. It will also consider potential impacts on the government’s climate change guidelines. Furthermor­e, it must incorporat­e traditiona­l Indigenous knowledge, which raises questions about how that knowledge would be evaluated and whether it raises conflict-of-interest concerns for affected First Nations communitie­s.

In addition to its openended mandate, the agency will hear from people who may not be directly impacted by the project but who have an opinion. Public consultati­ons will be very broad, including input on evaluation of project designs, plans and studies, and will be likely chaotic, reflecting deeply held but irreconcil­able views. Also, time lines will be longer, because of the addition of an early engagement process of up to 180 days.

As we know, Indigenous groups can have diametrica­lly opposing views on developmen­t, although those in favour are often silenced. Some see the enormous advantages of developmen­t for their communitie­s in terms of employment, a long-term revenue stream, equity participat­ion and having a seat at the table. Others focus on risks to their traditiona­l way of life and the environmen­t. The government has endorsed the U.N. Declaratio­n on the Rights of Indigenous Peoples. That raises an expectatio­n that “free, prior and informed consent” implies a right to block resource developmen­t on or adjacent to current or ancestral Aboriginal lands. So far, the Supreme Court and the federal government have avoided going that far. Were it to happen, the future of developmen­t could be fatally compromise­d.

The inevitable result of regulatory overreach, empowered opponents, further delays and uncertaint­y will be to make pipelines unattracti­ve investment­s. At a certain point, no sponsor will risk millions in a project that is mired in controvers­y, especially without assertive leadership from the government of Canada — witness the Pacific Northwest LNG and Energy East project cancellati­ons. So we are trapped, without access to internatio­nal markets for our oil and gas.

The economic consequenc­es of permanentl­y landlocked energy would be hundreds of billions of dollars of lost revenue and a significan­t hit to employment, growth and funding for critical social programs like health care. In short, we would be a poorer country and only have ourselves to blame because we allowed government to squander our legacy. of jurisdicti­ons, from provinces to municipali­ties, who will continue to presume, if not demand, a final say in the regulation of Canadian energy developmen­ts. The consequent­ial upset from the proposed new legislatio­n will continue to disrupt and erode the regulatory climate in Canada while reducing the pre-eminence of the regulatory powers of the NEB or the new, proposed CER. These regulatory changes will continue to pose fundamenta­l uncertaint­ies and will make even more problemati­c effective and efficient determinat­ions of energy projects judged to be in the national interest. Regrettabl­y, the federal government’s intentions to restore public confidence in the NEB by modernizin­g it have now been eclipsed by far more pressing concerns for the economy, the national interest and, perhaps, the ability of the Canadian energy sector to thrive in, or to survive, such disparate, concerted regulatory assaults from so many sectors.

Canadians would be justified in questionin­g whether the federal government in its attempts to create a “more robust, transparen­t and inclusive process” to more closely align with its energy and climate policies have actually increased the regulatory uncertaint­ies that have done so much to drive crucial energy investment out of Canada.

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