Saskatoon StarPhoenix

BILL C-69 FUELS BATTLE

Fault lines appear in resources sector as Liberals try to overhaul environmen­tal rules

- GABRIEL FRIEDMAN AND GEOFFREY MORGAN

It’s a Friday afternoon in January and Pierre Gratton, president of the Mining Associatio­n of Canada, is tired of responding to angry emails from people he doesn’t know.

For the second time in as many months, his inbox and phone line have been flooded with messages — some polite, some he calls “hate mail” — from people opposed to Bill C-69, the planned overhaul of the federal environmen­tal review process.

Few pieces of legislatio­n stir up raw emotion within the resources sector as much as those connected to environmen­tal reviews, which require companies to study the impacts of their projects, sometimes at a cost of hundreds of millions of dollars and sometimes opening them up to legal challenges that can create years-long delays.

If passed, Bill C-69 would change who can intervene in hearings about building energy pipelines, mines or even power lines. It would also change who must be consulted and what impacts must be studied before constructi­on can begin. The bill carries the potential to reshape Canada’s natural resources economy.

Such legislatio­n typically pleases special interest groups such as environmen­talists, but industry usually takes a dimmer view. Yet for much of the past year, the country’s resources sector has been at odds on what to make of the bill, often splitting along geographic and sector lines.

The country’s largest mining companies, with an Ottawa-based spokesman in Gratton, have mainly viewed the bill with cautious optimism and sought to push it forward, while the oil and gas sector, based out west, has been the most vocally opposed and consistent in demanding changes, often describing it as an industry killer.

But even as the mining associatio­n advocates for the bill, Gratton acknowledg­es fault lines within the organizati­on and larger divisions within the resources sector, especially between the oil and gas and mining sectors. After months spent working at cross purposes, the two sides now appear to be moving closer to a consensus: They’ll accept the bill if it is passed with various amendments.

“This has been hard,” he said. “Probably the hardest public policy file I’ve ever worked on. I’ve never before seen sectors at odds and trying to resolve difference­s like this. It has been tough.”

As shown by the protests that dogged the Trans Mountain Pipeline expansion in British Columbia and the Muskrat Falls hydroelect­ric dam in Labrador, the resource industries have much to gain or lose from the way Bill C-69 is ultimately crafted.

The battle lines over the bill were drawn in September 2018 when Gratton published an op-ed expressing his associatio­n’s support for the legislatio­n. “Most of our traditiona­l mining members have looked at this bill and said this should be better,” he said. “It’s not perfect, but we’re not going to wait for nirvana.”

A month later, Canadian Energy Pipeline Associatio­n chief executive Chris Bloomer — along with the heads of the Chemistry Industry Associatio­n of Canada, Associatio­n of Canadian Port Authoritie­s and others — published a contradict­ory op-ed that said major resource investment­s “will become few and far between” if the bill passes.

Later that fall, as both groups advocated for their different positions, controvers­y surroundin­g Trans Mountain erupted and brought national attention to the environmen­tal review process.

The project, commonly known as TMX, proposes to twin an existing pipeline that carries crude and refined oil from Alberta to the West Coast, allowing producers to ship product to new markets and, hopefully, escape the current trap in which the vast majority of Canadian oil is sold into the U.S. at a steep discount. Originally approved in 2016, TMX successful­ly withstood 17 consecutiv­e court challenges.

But in the 18th court challenge, the Federal Court of Appeal put a halt to all constructi­on work and overturned the project’s approval in August 2018. It found the federal government — which in May purchased the pipeline after Kinder Morgan Canada grew tired of wading through delays and wanted out — failed to consider how building a pipeline would cause an increase in tanker traffic affecting marine wildlife.

Although that outcome occurred under the current law, Marla Orenstein, director of the natural resources centre at the Canada West Foundation, said she fears Bill C-69 would only make it easier to bring forth lawsuits to stop a project.

Gratton called the court’s decision a turning point, after which some of his members started to question whether the new bill would prevent such situations. “It all came to the fore after TMX,” he said. “TMX is seen as evidence that you can’t build major infrastruc­ture in Canada. You can — you can build mines — but your large oilsands projects, your large infrastruc­ture projects, they have a tougher time.”

Following the decision, he added, several oilsands miners, which had previously supported Gratton’s efforts to help pass bill C-69, wanted new amendments to the bill, and new divisions within his membership started to appear.

One of the proposed law’s biggest changes is to replace the National Energy Board with the Impact Assessment Agency, which would operate under different timelines, consider a wider range of impacts — including gender issues — potentiall­y created by a project and allow for a wider range of people to intervene in the hearings.

The new approval process for some types of mining, such as oilsands and uranium, would require more consultati­ons and potentiall­y longer reviews with a greater chance of public hearings.

“It’s much simpler to go out and consult with a half-dozen or less communitie­s near a mine site … than it is to consult with hundreds of communitie­s near a pipeline or a power line,” Gratton said.

The difference is part of the reason why Bloomer and other energy executives are working to build a broader coalition, one that includes provincial government­s, to push for amendments to the bill.

In December, Bloomer met with members of Ontario Premier Doug Ford’s government to try to persuade them that the bill would carry serious repercussi­ons for the province. A spokespers­on for Ontario Energy, Northern Developmen­t and Mines Minister Greg Rickford said the province is concerned the bill “will grind natural resource developmen­t in our country to a halt.”

The federal government has said

no projects currently being proposed would need to restart the assessment process, but mothballed pipeline projects would need to go through the new assessment if they were to be revived.

By December, Gratton said his members changed their position slightly and decided they also needed new amendments to support the bill. For example, the mining associatio­n wants a statement in the bill’s preamble that notes the importance of investing in the resources sector.

Another desired amendment would help define the major impacts of a project at the outset of an environmen­tal review, so that the scope of what companies must study is laid out more clearly.

These amendments look similar, though not identical, to the ones the energy industry wants to secure, which is a sign the two sides, initially on opposite ends of the debate, have converged.

For example, CEPA, which argued in March 2018 that Bill C-69 would “never see another pipeline built,” is now pushing for a series of amendments before the bill’s ultimate passage.

Any amendments will be complicate­d. Bill C-69 already runs hundreds of pages long and, as an omnibus bill, it touches on privacy, labour and other issues entirely disconnect­ed from large resource projects.

Nor is the bill only focused on the environmen­tal impacts of any given project. The new law would force companies to study the impact of their projects on various communitie­s’ health, economy and, among other criteria, gender.

Bill C-69 has passed through three readings in the House of Commons, where it was subject to a raucous debate.

One concern raised by Bloomer is that the bill allows more citizens to directly participat­e and present arguments during the environmen­tal assessment’s hearing process, which he believes could potentiall­y create unnecessar­y delays.

Now, before the bill’s third reading in the Senate, another debate is set to begin, as Conservati­ve senators want to hold hearings with a range of affected groups. Tempers are still running high.

TMX is seen as evidence that you can’t build major infrastruc­ture in Canada. You can — you can build mines — but your large oilsands projects, your large infrastruc­ture projects, they have a tougher time.

 ?? JENS BUETTNER/DPA VIA AP FILES ?? Canada’s resources sector has been at odds on what to make of Bill C-69, often splitting along geographic and sector lines. The planned legislatio­n revamps the federal environmen­tal review process for projects such as pipeline constructi­on and carries the potential to reshape Canada’s natural resources economy,
JENS BUETTNER/DPA VIA AP FILES Canada’s resources sector has been at odds on what to make of Bill C-69, often splitting along geographic and sector lines. The planned legislatio­n revamps the federal environmen­tal review process for projects such as pipeline constructi­on and carries the potential to reshape Canada’s natural resources economy,

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