‘Stop dithering’ on oilsands project list, Alberta tells feds
Alberta’s environment minister told Ottawa Wednesday to “stop dithering” and provide a list of oilsands projects that will be subject to new environmental regulations, adding to months of criticism over the Liberals’ sprawling energy reforms.
Shannon Phillips met with several senators to flag her concerns over Bill C-69, the federal legislation that has been widely criticized by industry and opposition members of Parliament. The bill will overhaul how major energy projects. like hydro dams, pipelines and oilsands mines, are reviewed and approved.
Alberta has been pressuring Ottawa to provide a list of oilsands projects that will be subject to the reforms. Industry has cautioned that subjecting new oilsands developments to the new legislation could stir regulatory uncertainty and curb foreign investment, particularly for so-called “in situ” projects that inject steam into underground bitumen seams to produce oil. Such projects are currently reviewed and approved by the provincial regulator in Alberta.
“Simply knowing if a project is in or out is very important,” Phillips told reporters on Wednesday.
A spokesperson for Environment and Climate Change Minister Catherine McKenna said the office was “completing the consultation and work necessary” on the list, which it says will be released this fall.
Phillips’ comments come amid criticism that Bill C-69 defines unclearly the grounds by which major projects will be approved or rejected. Regulatory uncertainty has been a primary concern of Calgary-based oil and gas companies, whose failure to build several major oil pipelines in recent years have dampened investor interest in Canada.
Industry has blasted the proposed changes.
“It is difficult to imagine that a new major pipeline could be built in Canada under the Impact Assessment Act, much less attract energy investment to Canada,” Chris Bloomer, head of the Canadian Energy Pipeline Association, told a Commons committee hearing in May.
Phillips on Wednesday met with senators and officials, including Independent Senator Doug Black, who has also been calling for reforms to C-69. The bill will be studied by the Senate this winter.
Phillips said many senators she met with have been hearing similar complaints.
“They’re getting an earful from Albertans and Canadians,” Phillips said, adding that she doesn’t believe the bill will be rushed through the Senate in its current form.
“I think it’s fair to say that it won’t, based on the conversations that we had this morning.”
Phillips outlined several aspects of Bill C-69 she thinks should be amended, according to a brief summary document obtained by the National Post.
Those include amendments that ensure downstream emissions are “clearly excluded” from the environmental review of new energy projects, which industry has argued would unfairly disadvantage fossil fuel developments.
Alberta is also calling for a hard timeline of 300 days for pipeline reviews, rather than the 600-day review timeline effectively included in the new legislation.
Another concern, also expressed by industry groups, is that the bill will create undue regulatory overlap between the provinces and the federal government, raising the administrative burden on companies.
“The broader scope of Bill C-69 may result in federal intrusion into matters of provincial jurisdiction,” the document said.
It also lays out concerns over “competitiveness” in Alberta.
Bill C-69 was introduced in February. It will fold the National Energy Board into the Canadian Energy Regulator (CER), as well as funnel project applications through the Canadian Environmental Assessment Agency. It marks an ambitious overhaul, aiming to broaden the scope of project reviews to consider the longer-term environmental impact of industrial activity.