The Alberta Court of Appeal has ruled that the amended federal Impact Assessment Act remains unconstitutional, stating it infringes on provincial jurisdiction despite recent modifications by Ottawa.
The Alberta Court of Appeal has ruled that the federal government’s Impact Assessment Act is still unconstitutional. In a 4-1 decision, the court found that although Ottawa modified the law after the Supreme Court struck down much of it in 2023, the new version continues to infringe on provincial jurisdiction.
The court determined that the act gives Ottawa the power to stop a project within provincial jurisdiction if it has even the smallest impact on federal jurisdiction. The judges noted that the legislation creates uncertainty because previously unpronounced standards could apply to designated projects.
"While Parliament may have the power to create an impact assessment scheme that complements existing regulation in environmental matters, the (Impact Assessment Act) creates great uncertainty due to the potential for previously unpronounced standards to apply to designated projects," the court wrote.
The ruling highlighted concerns that the federal assessment scheme might allow the government to conduct a "far-ranging inquiry into matters that are exclusively within provincial jurisdiction" based on narrow grounds of federal authority. The court stated that decision-makers could impose "indefinite prohibitions on entire projects and matters within provincial jurisdiction rather than confining oversight to federal effects caused by the project."
Ontario and Saskatchewan backed Alberta’s legal challenge. The Impact Assessment Act, also known as Bill C-69, was first passed by the Liberals under former prime minister Justin Trudeau to review environmental, economic, health and social effects of projects like ports, mines and pipelines. Former Alberta premier Jason Kenney previously dubbed it the “no more pipelines act.”
Alberta Premier Danielle Smith described the ruling as "yet another big win for Alberta" on social media. "I'm calling on the federal government to accept this ruling, refrain from yet another appeal, and immediately work with Alberta and the other provinces to clean up this flawed Trudeau-era legislation once and for all so it no longer inhibits economic development in our country," she said.
Premier Smith and Justice Minister Mickey Amery issued a joint statement welcoming the decision. "We are pleased the Alberta Court of Appeal has once again ruled that the Impact Assessment Act remains unconstitutional," they said. They added that Alberta’s focus remains on "advocating for our jurisdiction over our natural resources to be respected."
The office of federal Environment Minister Julie Dabrusin stated that the government is reviewing the decision and considering next steps. "To position Canada for long-term prosperity in a rapidly changing global economy, the Government of Canada is moving forward to build at a pace not seen in decades. The (Impact Assessment Act) is fundamental to the advancement of this work," wrote press secretary Amy Falkner.
The ruling comes as Ottawa and Alberta partner on a new oil pipeline to the West Coast. Earlier this month, the Pacific Link pipeline project became the first to receive a national interest designation under Ottawa’s new Building Canada Act. This act gives Ottawa the power to skirt a dozen federal laws to help move hand-picked projects forward.
Ottawa has tabled Bill C-39, which aims 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 has said it was told by industry that the level of expertise on energy projects at the Canada Energy Regulator could not be found at the Impact Assessment Agency. However, Ottawa has stated that the Canada Energy Regulator will still be bound by the provisions of the Impact Assessment Act when carrying out its reviews.
This ruling reinforces the ongoing jurisdictional conflict between Alberta and the federal government over resource development. It challenges the federal government's ability to regulate projects that fall primarily under provincial authority, potentially impacting future energy projects and the legal framework for environmental assessments in Canada.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
The day's checked news, by email
One short email a day with the top stories. Free, and you can unsubscribe in one click.
Or follow for the latest news:
EU foreign ministers approved nearly 1,600 new sanctions listings targeting Russia's military-industrial complex, marking the largest expansion since the full-scale invasion of Ukraine.
A federal judge in New York issued a temporary restraining order halting taxpayer-funded television ads promoting President Donald Trump ahead of the midterm elections. The order requires the administration to cancel remaining portions of a $20 million advertising purchase.
