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by Deidra Garyk
I’ll see you in court!
This is becoming a common phrase from the Alberta UCP government as it defends the province’s rights to develop its natural resources free from interference from the federal government.
On March 21 and 22, 2022, the Alberta government was in front of the Supreme Court of Canada challenging the constitutionality of the federal Impact Assessment Act, also known as Bill C-69 and dubbed the “no more pipelines bill” when Jason Kenney ran the government and held the microphone.
The Impact Assessment Act overhauled the environmental review process and replaced the National Energy Board as the arbiter of the fate of certain, defined energy projects. It passed the gavel to the Government of Canada.
Today’s government is not a fan of fossil fuel development, but those who are cheering on the current form of the Act forget that who is in power inevitably changes. One day, the party in power may not like the projects they support. Then what?
The Supreme Court’s decision will not overturn any laws, but it will help guide changes to the existing laws. If that is not adequately handled, a full constitutional challenge could be pursued.
Alberta was already successful at getting a favourable ruling by the Alberta Court of Appeal, so it has a legal leg to stand on in front of the Supreme Court justices. Although, it was not successful when it appealed the federal carbon tax to the Supreme Court a couple years ago.
The Alberta government is not alone in its dislike of the legislation. It brought seven provincial friends, as well as business groups, as intervenors. The Indian Resource Council, Canadian Taxpayers Federation, Alberta Enterprise Group and Independent Contractors and Businesses Association, to name a few, are in the Supreme Court of Canada supporting the Government of Alberta’s position.
They know the Act is a cumbersome, misguided piece of legislation. It is in part why the World Bank ranked Canada 64th in the world in the time it takes to approve a major construction project.
Those on the side of the Government of Canada, and in favour of keeping the Act just as it is, include groups such as Environmental Defence Canada, Nature Canada, and the Canadian Association of Physicians for the Environment (CAPE), a relatively new group that has growing resources to propose radical anti-oil ideas, including the execution of a fossil fuel non-proliferation treaty.
I did not like when then-Premier Kenney repeated the “no more pipelines” moniker when many of us were campaigning against Bill C-69. It minimized the breadth and seriousness of the Bill, which made people in non-oil producing regions ignore it.
This law affects all kinds of development, including wind and solar, and it allows for intervenors who are not even remotely impacted by the project to get a voice and cause delay. It gives the federal government the power to step in by simply invoking the Act. It is absolutely nonsensical, but it is easy to understand why it was written as it was; it was easy to predict the desired outcome for anyone who was paying attention.
Environment and Climate Change Minister Steven Guilbeault recently threatened to use the Act to stop the construction of affordable housing on a certain plot of land in Ontario. While there may be merit to Guilbeault’s objections as the issue is likely more complex than what we see at first glance, giving one person that kind of control has serious consequences.
The Senate had an opportunity to quash the Bill, but they chose not to. It is truly a shame.
While we are wrapped up in a legal quagmire to get resources developed, investment in major projects is stalled because of the uncertainty. Businesses do not invest if they do not feel they are dealing with a stable, solid regulatory and political regime. We appear to have neither in Canada right now.
As those in power in Canada are busy fighting in court or lobbing stones over walls at their interprovincial and federal enemies, the BRICS alliance – Brazil, Russia, India, China, and South Africa – is reaching out hungrily to eat our lunch.
If you have not heard about the BRICS, you are not alone. It does not get much mention, even in independent media, and certainly not in North American mainstream media.
Make no mistake, this cooperative group is influential. Their economies are growing quickly as is the group’s membership. They’re dropping the US dollar as the global currency to trade oil as part of a de-dollarization campaign. And they created the Shanghai-based New Development Bank as a replacement to the US-dominated World Bank.
These groups are getting things done. They understand the importance of energy security, and you can be sure they will be developing their resources without any self-flagellation. Too bad Canada cannot.
About Deidra Garyk
Deidra Garyk has been working in the Canadian energy industry for almost 20 years. She is currently the Manager, ESG & Sustainability at an oilfield service company. Prior to that, she worked in roles of varying seniority at exploration and production companies in joint venture contracts where she was responsible for working collaboratively with stakeholders to negotiate access to pipelines, compressors, plants, and batteries.
Outside of her professional commitments, Deidra is an energy advocate and thought leader who researches, writes, and speaks about energy policy and advocacy to promote balanced, honest, fact-based conversations.
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