Alberta gives feds ultimatum over changes to Impact Assessment Act

By Ian Burns ·

Law360 Canada (October 4, 2024, 4:48 PM EDT) -- Alberta has provided the federal government with a four-week deadline to remedy what it says are “unconstitutional provisions” in the Impact Assessment Act (IAA) or face a new legal challenge.

Alberta Premier Danielle Smith outlined her concerns in an Oct. 3 letter to Prime Minister Justin Trudeau. The letter said that since the October 2023 decision by the Supreme Court of Canada that said parts of the Act, which outlines a process for assessing the impacts of major resource projects, were largely beyond the power of Parliament, the province has made repeated requests for the federal government to share details of its amendments with the province, to no effect.

The letter cites “grave concerns” about the lack of meaningful consultation with the province and the federal government’s “clear refusal” to engage with Alberta on the legislation and the amendments it introduced to the Act as part of an omnibus budget bill in July. According to the province, the amended legislation remains unconstitutional and continues to allow the federal government to encroach into provincial jurisdiction.

In a statement, Smith said the federal government “continues to play politics and cater to activists with the amendments passed in July.”

“Since this deeply flawed and unconstitutional legislation was first tabled, we have fought to defend our jurisdiction and stand up for Alberta’s economy and rights,” she said. “The Supreme Court of Canada agreed with us in its ruling of a year ago, but it is clear the federal government is unwilling to acknowledge its gross overreach.”

The Alberta government is calling on Ottawa to eliminate what it calls federal encroachment into provincial jurisdiction and recognize the ability to fully substitute provincial environmental assessments for federal ones.

Mickey Amery, Alberta’s minister of justice and attorney general, said the province’s concerns with the Act “must be addressed immediately for the legislation to be constitutionally compliant.”

Alberta Justice Minister and Attorney General Mickey Amery

Alberta Justice Minister and Attorney General Mickey Amery

“Should the federal government insist on ignoring the clear issues identified by the Supreme Court of Canada, Alberta is prepared to bring forward another legal challenge to defend our jurisdiction,” he said.

Alberta also says the federal government should create certainty for industry and increase investor confidence by imposing concrete timelines and curbing ministerial discretion, as well as streamlining the assessment process by scoping projects appropriately and placing some parameters on public involvement.

In a statement, federal Environment and Climate Change Minister Steven Guilbeault said the letter was “more cynical politics from Danielle Smith.”

“The amendments to the Impact Assessment Act passed through Parliament many months ago. It’s no coincidence that this arbitrary deadline comes at the same time she faces a leadership review and wants to look tough for the hardcore base within her party,” he said.

Guilbeault said Smith “knows full well” that Ottawa conducted ample consultations with Alberta as part of that process, as well as industry, Indigenous groups and other provinces.

“In fact, other provinces applauded our government’s robust consultations and want to move forward with cooperation agreements under the new Act,” he said. “She also doesn’t mention the fact we offered to set up a cooperation agreement with her government to help streamline and even possibly substitute impact assessments, and they refused.”

The federal government is very confident that the amended IAA “fully responds to the decision of the Supreme Court of Canada and establishes the robust, collaborative, and timely assessment process that Canadians expect.”

“With the amended Impact Assessment Act, Canada is in a good position to get good projects built, while protecting the environment and Indigenous rights,” he said. “We want to ensure as much clarity, certainty, and predictability as possible for projects, which Premier Smith threatens with her reckless political games.”

If you have any information, story ideas or news tips for Law360 Canada, please contact Ian Burns at Ian.Burns@lexisnexis.ca or call 905-415-5906.

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