The Impact Assessment Act, as challenged by the province of Alberta for the second time, has been deemed unconstitutional by the Alberta Court of Appeal. The act, aimed at evaluating the environmental, economic, health, and social impacts of proposed projects like ports, mines, and pipelines, was found to infringe on provincial jurisdiction despite modifications made by Ottawa following a Supreme Court ruling in 2023.
In a 4-1 decision, the Court of Appeal highlighted that the act still grants Ottawa the authority to halt projects within provincial jurisdiction for even minor impacts on federal matters. The court expressed concerns over the Act creating uncertainties by potentially applying new standards to designated projects.
Although some adjustments made by Ottawa were deemed acceptable, the court emphasized that the Act still bestowed overly broad powers on the federal government in areas falling under provincial jurisdiction. The court’s decision underscored the risk of federal intervention in matters exclusively within provincial control.
Support for Alberta’s legal challenge came from Ontario and Saskatchewan, with the Impact Assessment Act, also known as C-69, facing strong opposition from players in the oil and gas industry and critics like federal Conservative Leader Pierre Poilievre. The Act, dubbed the “no more pipelines act” by former Alberta premier Jason Kenney, has been a contentious issue.
The ruling comes as Ottawa and Alberta collaborate on a new oil pipeline project to the West Coast. Recently, the Pacific Link pipeline project became the first to receive a national interest designation under Ottawa’s Building Canada Act, which allows the federal government to bypass certain laws to advance selected projects. Critics, including Poilievre, have called for the repeal of the Impact Assessment Act.
Furthermore, through Bill C-39, Ottawa seeks to transfer the assessment process for pipeline and energy transmission projects from the Impact Assessment Agency of Canada to the Canada Energy Regulator. The federal government cited industry feedback on the expertise available at the Canada Energy Regulator compared to the Impact Assessment Agency.
Despite the move, Ottawa clarified that the Canada Energy Regulator would still adhere to the provisions of the Impact Assessment Act during its reviews, a move questioned by the Alberta Court of Appeal in light of its recent ruling on the Act’s constitutionality.
