Alberta Cheers Supreme Court Ruling Against Federal Environmental Impact Law

On Friday, the Supreme Court of Canada ruled that Ottawa’s impact assessment law for major project approvals is heavily unconstitutional. Business groups and energy companies shared their excitement about the ruling.

Industry leaders in Alberta were particularly excited about the ruling, as they saw the 2019 legislation as a barrier to developing oil and gas infrastructure and other energy projects.

The federal Impact Assessment Act, formerly known as Bill C-69, outlines the procedure used to assess the environmental effects of major project development in the country and provides a comprehensive list of actions that would require a federal review.

The business community as a whole, however, viewed it as  heavy-handed, and Alberta residents, who benefit from the province’s oil and gas resources, commonly referred to the law as the “No More Pipelines Act.”

“I know this has boosted the positive feelings of Alberta business leaders. I’ve heard from a number of them already this morning,” said Scott Crockatt, spokesman for the Business Council of Alberta.

“The bottom line is that this is being greeted as really good news by a lot of businesses in Alberta and across the country.”

On Friday, five out of seven judges ruled that the Impact Assessment Act is unconstitutional because it interferes with provinces’ rights to regulate matters within their own borders.

However, the Supreme Court’s decision does not cancel the law or remove the federal government’s authority to regulate projects through environmental assessment; instead, it encourages the federal government to tighten up the act to make certain it doesn’t violate provincial authority.

Canadian pipeline giant Enbridge Inc. released a statement on Friday saying it has been monitoring the ongoing legal battle over the law. Canada’s regulatory system needs to be strengthened, according to the company, so that the country can afford to invest in the new infrastructure worth billions of dollars needed to achieve its net-zero emissions targets.

“We have argued throughout the process for regulatory clarity and efficiency, so project proponents can make informed investment decisions on resource development,” said Enbridge spokesman Todd Nogier.

“It is more critical now than ever that governments at all levels recognize that the status quo isn’t working.”

On Friday, the Canadian Association of Petroleum Producers issued a statement praising the Supreme Court’s “clear decision” and stating that “the provinces are best positioned to review and regulate resource development projects within their own borders.”

Premier of Alberta Danielle Smith said in a statement that the federal impact assessment legislation has cost many provinces and economic sectors tens of billions of dollars in investment and thousands of jobs.