Page 4 - NorthAmOil Week 35

NorthAmOil COMMENTARY NorthAmOil
Canadian regulator undergoes overhaul
Canada has overhauled and renamed its energy regulator, under a new bill that is not popular with supporters of the oil industry, writes Anna Kachkova
CANADA
WHAT:
The Canadian government has renamed its energy regulator and brought
in a new regulatory approval process.
WHY:
Ottawa continues its attempts to strike
a balance between environmental targets and energy growth.
WHAT NEXT:
The Liberal government will hope to appease both sides in the run-up to the federal election but this could back re.
CANADA has overhauled its federal energy regulator and the process the body will follow, amid criticism from supporters of the oil and gas industry. e government of Alberta has even vowed to ght the move, taking the matter to the Supreme Court if necessary.
e country’s National Energy Board (NEB) was renamed the Canadian Energy Regula- tor (CER) on August 28. e move was made under legislation passed by Canada’s Parliament in June, known as Bill C-69, which will change how major energy projects are approved and reviewed in Canada.
Canada’s ruling Liberal government said the bill was aimed at streamlining the regula- tory review process for energy projects, as well as simultaneously promoting the country’s economic and environmental goals. Natural Resources Canada said the overhaul of the regu- lator under the bill would “enable modern e ec- tive governance, more inclusive engagement, greater indigenous participation, stronger safety and environmental protection and timelier pro- ject decisions”.
But the energy industry’s supporters have been critical of the bill, describing it as the ‘No More Pipelines’ act, and claiming it would make it more di cult to receive approval for new pro- jects such as oil pipelines.
e province of Alberta is one of the most vocal critics of the regulatory overhaul. Respond- ing to the bill’s implementation, Alberta’s ruling United Conservative Party (UCP) has vowed to challenge the constitutional validity of the bill, with the battle going all the way to the Supreme Court of Canada if necessary.
“ is is a dark day for Alberta and Canada as a whole,” the UCP said in a statement the day the bill became law. “As we have said loudly and repeatedly, this act is an unconstitutional attack on Alberta and our vital economic interests.”
Alberta Energy Minister Sonya Savage said the energy industry had warned about the bill’s shortcomings as it was working its way through Parliament, but accused Ottawa of ignoring industry concerns.
Canadian Prime Minister Justin Trudeau is hoping to win re- election later this year.
Indeed, with a federal election looming in Canada, Savage said she hoped voters would think twice before re-electing Canadian Prime Minister Justin Trudeau’s Liberals.
“ is is a very divisive Federal government under Justin Trudeau,” Savage said. “It’s a govern- ment that doesn’t know the boundaries between federal and provincial jurisdiction. It’s not only Bill C-69 that’s problematic, it’s Bill C-48, the tanker ban, the carbon tax.”
Making changes
Bill C-69 passed through Canada’s Senate with a vote of 164-56. Nearly 200 amendments to the bill had been proposed in the Senate, but most were rejected.
Part of C-69 is the Canadian Energy Regula- tor Act, which will govern the CER.
Under new regulatory rules, the CER will review all small projects in their entirety – such as pipelines that extend less than 40km – with a full impact assessment having to be completed within 10 months. Medium-sized projects will be reviewed by CER before requiring approval from the federal cabinet, and will be required to go through a full impact assessment within 15 months. Such medium-sized projects will include pipelines that require new right-of-way that are more than 40km but less than 75km in length.
e largest projects will go through an “inte- grated review process” led by the new Impact Assessment Agency of Canada, with the support of the CER. Such projects, which will include pipeline proposals requiring more than 75km of new right-of-way, will also need to be approved by the cabinet.
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w w w . N E W S B A S E . c o m Week 35
03•September•2019