The Alberta Court of Appeal has declared that the Impact Assessment Act of the federal government remains unconstitutional. This marks the second instance where Alberta has contested the act, which outlines the evaluation process for proposed projects like ports, mines, and pipelines concerning their environmental, economic, health, and social impacts.
In a 4-1 ruling delivered on Friday, the court stated that despite amendments made by Ottawa following the Supreme Court’s partial rejection of the law in 2023, the revised version still encroaches on provincial jurisdiction. The Court of Appeal highlighted that the act grants Ottawa the authority to halt projects within provincial jurisdiction if they have even a minimal impact on federal matters.
The court expressed concerns about the Act creating uncertainties by potentially applying new standards to designated projects, leading to broad federal inquiries into areas exclusively under provincial authority. While acknowledging some modifications made by Ottawa were not problematic, the court criticized the Act for granting Ottawa extensive powers in provincial jurisdiction areas.
Ontario and Saskatchewan supported Alberta in its legal battle against the Impact Assessment Act, also known as C-69, which has faced strong opposition from players in the oil and gas industry and critics like federal Conservative Leader Pierre Poilievre. Former Alberta Premier Jason Kenney referred to it as the “no more pipelines act.”
Coinciding with the ruling, Ottawa and Alberta are collaborating on a new oil pipeline project to the West Coast. The Pacific Link pipeline recently became the first project to receive a national interest designation under Ottawa’s Building Canada Act.
While the Building Canada Act empowers Ottawa to bypass several federal laws to advance selected projects, critics, including Poilievre, have persistently advocated for the repeal of the Impact Assessment Act. Through the proposed Bill C-39, Ottawa aims to shift the assessment process for pipeline and energy transmission projects from the Impact Assessment Agency of Canada to the Canada Energy Regulator.
Despite industry feedback suggesting the Canada Energy Regulator possesses specialized knowledge on energy projects unavailable at the Impact Assessment Agency, Ottawa emphasized that the regulator will adhere to the provisions of the Impact Assessment Act during its assessments, a move contested by the Alberta Court of Appeal.
