Bill C-88 (Historical)

An Act to amend the Mackenzie Valley Resource Management Act and the Canada Petroleum Resources Act and to make consequential amendments to other Acts

Part 1 of this enactment amends the Mackenzie Valley Resource Management Act to establish an administration and enforcement scheme in Part 5 of that Act that includes the issuance of development certificates. It also adds an administrative monetary penalty scheme and a cost recovery scheme, provides regulation-making powers for both schemes and for consultation with Aboriginal peoples and it allows the Minister to establish a committee to conduct regional studies. Finally, it repeals a number of provisions of the Northwest Territories Devolution Act that, among other things, restructure the regional panels of the Mackenzie Valley Land and Water Board, but that were not brought into force.
Part 2 of the enactment amends the Canada Petroleum Resources Act to allow the Governor in Council to prohibit certain works or activities on frontier lands if the Governor in Council considers that it is in the national interest to do so.

Mackenzie Valley Resource Management Act

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Madam Speaker, we do know one thing. Stephen Harper failed at building any pipelines and 99% of the oil went through to the U.S. when Stephen Harper was prime minister. When he left office, still 99% went through to the U.S.

Could my colleague across the way explain to us why the Harper government was such a dismal failure at getting our oil to markets outside of the U.S.?

[Some hon. members]

Oh, oh!

[The Assistant Deputy Speaker, Carol Hughes]

I am sure that the member for North Okanagan—Shuswap is able to respond to this very well.

The hon. member for North Okanagan—Shuswap.

[Mel Arnold, Conservative, North Okanagan—Shuswap, BC]

Madam Speaker, the Harper government completed four pipelines. When there was a change in government, there were three major pipelines in the works. Right now, we stand at the big zero.

I thank the parliamentary secretary very much for giving me the opportunity to correct the record.

[Darrell Samson, Liberal, Sackville—Preston—Chezzetcook, NS]

Madam Speaker, I am pleased to speak to Bill C-88, an act to amend the Mackenzie Valley Resource Management Act and the Canada Petroleum Resources Act and to make consequential amendments to other acts. I would like to acknowledge that we are gathered on the traditional lands of the Algonquin people.

The bill before us today would not only resolve the litigation resulting from the attempt to amalgamate land and water boards in 2014, but also improve the regulatory regime. The Northwest Territories Devolution Act made a number of changes to the Mackenzie Valley Resources Management Act, which provides the legislative framework for the regulatory regime.

One of the changes was to amalgamate the Northwest Territories' four land and water boards into a single entity. Two indigenous governments challenged the amalgamation in court, and the Supreme Court of the Northwest Territories granted an injunction that halted amalgamation and other changes designed to make the regulatory regime more effective.

As my hon. colleagues know, in order to work effectively, a regulatory regime must continually earn the trust of project proponents and the general public. It does that by working in a steady, fair, reliable and predictable manner.

This description applies to the resource development regime in the Northwest Territories. The current four-board structure works wonderfully. However, there is always room for improvement. This bill ensures that the current structure will be maintained and adds improvements that were proposed over four years ago.

In reality, the changes proposed in Bill C-88 seek to make the regime more fair, reliable, predictable and efficient. It clearly serves the interests of northerners and all Canadians.

One example of how the changes will improve the regime relates to the members of the boards responsible for reviewing proposed projects.

There are five boards in all: the Mackenzie Valley Environmental Impact Review Board, the Sahtu Land and Water Board, the Gwich’in Land and Water Board, the Wek'èezhìi Land and Water Board and the Mackenzie Valley Land and Water Board. One or more of these boards can be authorized to conduct a regulatory review, depending on the nature and location of the proposed project.

The Mackenzie Valley Resource Management Act sets out the quorum required for some of the boards' activities. For example, a board cannot issue a permit unless it has the minimum number of members. That is completely appropriate because the boards' decisions often have significant consequences. To ensure that the five boards always make sound decisions, each one is made up of members from various backgrounds with different perspectives. This diversity is one of the boards' greatest assets. It helps them consider every nuance from different angles.

The members' diversity also fosters strong public trust in the boards' decisions. Naturally, in some cases, a member may not be able to participate in certain board activities because of illness or some other legitimate reason, but that should be the exception, not the rule.

The Government of Canada realizes it can be difficult for northern boards to maintain a quorum, partly because of how hard it is to recruit and retain members with the necessary experience and expertise.

To help the boards overcome this challenge, Bill C-88 would authorize them to extend the terms of individual members if the term expires during a review. That would help guarantee that the boards maintain a quorum throughout the reviews.

The bill states that the board must request the extension at least two months before the day on which the member's term expires. The request must be submitted to the minister. The temporary extension of the board member's term will end when the review that is in progress at the time of the request is concluded.

The Northwest Territories' five regulatory boards are responsible for conducting complex reviews that often include hearings, scientific reports and economic forecasts. The reviews can take months to complete. It is common for new information and perspectives to emerge during a review. Board members who have been continuously involved in a review are better equipped to understand and contextualize new information and perspectives.

The five boards make decisions that can have a profound impact not only on ecosystems, but also on local and national communities. Given the magnitude of these decisions, the boards need to be part of a modern, functional regulatory regime.

Not only does Bill C-88 propose a mechanism to support continuity, but it also makes a number of other improvements to the regulatory regime. The bill currently before the House establishes an efficient inspection and enforcement system. Under that system, proponents would be required to abide by the conditions imposed by a board when it approves a project following an environmental assessment. These conditions would be clearly set out in a document called a development certificate.

To ensure that proponents are fulfilling their obligations, inspectors would be authorized to carry out activities like site visits. Proponents who do not use valid development certificates, who fail to comply with the conditions set out in the certificate or who interfere with the work of inspectors could face stiff penalties, including fines and imprisonment.

As my hon. colleagues must understand by now, Bill C-88 proposes a long list of measures that will considerably improve the regulatory regime in the Northwest Territories. The bill currently before the House makes improvements to a regime that is already functional and efficient. Such a regime will help maintain the respect and trust of Canadians, proponents and investors. It will help ensure that resource development projects strike an appropriate balance between economic, social and environmental goals. For all these reasons, Bill C-88 deserves the support of the House.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Madam Speaker, I am not sure if anyone else in the House finds it a bit ironic that the Liberals are voting wholeheartedly for both parts 1 and 2. They criticize the former Conservative government, saying that we did not do the proper consultation process, even though it was supposably part of the treaties that were going to be available. It was part of the McCrank report, but there was some concern.

They criticize us for what we did in part 1 in the past, yet what they are doing in part 2 is equally as bad or worse. What they are doing is giving the federal government powers it has never had before to completely deny a project on the basis of national interest. This is without consultation. It is consistent with what the Liberals did regarding Beaufort. It is consistent with what they did regarding the moratorium for tankers. It is consistent with them and northern gateway.

I would like to ask my colleague this. Where is his consistency? How can he criticize a former government regarding its consultation with indigenous peoples and its resolution of the process, yet in part 2 have something that, in my opinion, is far worse with respect to trodding on rights?

[Darrell Samson, Liberal, Sackville—Preston—Chezzetcook, NS]

Madam Speaker, I do not think we have any lessons to learn from the former Conservative government; that is for sure.

When it comes to consultation, Conservatives did not even know what the word “consultation” meant for 10 years. When the Prime Minister of the country is going to various provinces to speak to people without letting the premiers of the provinces know that he is going to be in town, that is just disrespectful. It was definitely not consultation.

Again, the injunction was in place because of the lack of consultation. The Conservatives tried to eliminate, so to speak, the responsibilities of indigenous peoples in the north without consulting with them. Conservatives tried to control regional representation so that indigenous peoples would not have a voice.

On this side of the House, we believe indigenous peoples are Canadians. We are very proud of all Canadians and we will move forward with this very important legislation.

[The Assistant Deputy Speaker, Carol Hughes]

I want to remind the member for Kamloops—Thompson—Cariboo that she had an opportunity to ask her question. If she has anything further to add, she should wait until I ask for questions and comments and attempt to be recognized.

Questions and comments, the hon. member for Saint-Hyacinthe—Bagot.

[Brigitte Sansoucy, NDP, Saint-Hyacinthe—Bagot, QC]

Madam Speaker, we will support this bill. I thank my colleague for his clear, detailed description of the bill.

Since we passed my colleague's bill to recognize the United Nations Declaration on the Rights of Indigenous Peoples, it is important that all bills affecting indigenous communities mention compliance with this declaration.

Does my colleague not think that the bill should be improved by including a reference to compliance with the United Nations Declaration on the Rights of Indigenous Peoples?

[Darrell Samson, Liberal, Sackville—Preston—Chezzetcook, NS]

Madam Speaker, I thank my colleague for her question.

It is clearly very important that we support the United Nations Declaration on the Rights of Indigenous Peoples. This bill certainly emphasizes the principle of consultation and close collaboration with indigenous peoples and northerners. We want to ensure that these consultations bring out their knowledge, advice and wisdom. We believe that this bill complies with the United Nations Declaration on the Rights of Indigenous Peoples.

[The Assistant Deputy Speaker, Carol Hughes]

It is my duty pursuant to Standing Order 38 to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Vancouver East, Status of Women; the hon. member for Drummond, Official Languages; the hon. member for Courtenay—Alberni, Transportation.

[Dan Vandal, Liberal, Parliamentary Secretary to the Minister of Indigenous Services]

Madam Speaker, I am thankful for the opportunity to speak on this traditional Algonquin territory to explain my support for Bill C-88, an act to amend the Mackenzie Valley Resource Management Act and the Canada Petroleum Resources Act and to make consequential amendments to other acts.

The legislation before us proposes to strike a more appropriate balance between economic development and environmental protection in Canada's north.

As my hon. colleagues recognize, Canada is blessed with an abundance of valuable natural resources, vast forests as well as deposits of minerals, oil and gas. Throughout our history, these resources have been the cornerstones of the economy and while the national economy grows ever more diverse thanks to the rise of other sectors, resource development remains crucial to national prosperity.

Resource development projects create jobs, generate export sales and stimulate technological innovation. Tempering these benefits, however, are the environmental and the social impacts of resource extraction and development. These include pollution, destruction of ecosystems and changes in the fabric of communities and traditional indigenous ways. Throughout much of our nation's history, while we relied on resource development for our prosperity and growth, we often failed to appreciate and to take into account its long-term environmental and social consequences. Thankfully, this view is no longer prevalent.

To strike a better balance between economic and environmental concerns, Canada has developed a unique regulatory regime that governs resource development projects in the north, a regime that is co-managed with indigenous partners. The regime requires that proposed projects undergo stringent reviews of anticipated impacts. Review processes are structured for fairness, transparency, effectiveness and to consider traditional knowledge. Members of the public, along with stakeholder groups, are encouraged to participate in project reviews and the decisions of review boards are published for everyone to see.

The regulatory regime helps to ensure that resource projects maximize potential economic benefits and minimize potential environmental impacts. In this way, it restores public confidence, creates certainty and predictability, which are so important to industry, and sets the foundation for a sustainable and long-term natural resource industry in the north.

To maintain an appropriate balance between these concerns, the regulatory regime evolves continually as our country evolves and as our understanding of the environment and of resource development deepens. In the north in particular, the settlement of modern land claims has enabled the creation of unique systems of governance in co-operation with indigenous partners.

The proposed legislation now before us lays out a series of amendments to the regulatory regime that governs resource development in the Northwest Territories. The roots of Bill C-88 stretch back to a series of amendments made to the regulatory regime in 2014. Some of the amendments provoked indigenous communities in the Northwest Territories to initiate court actions against the Government of Canada. The Tlicho Government and Sahtu Secretariat Incorporated filed similar court challenges that effectively put a halt to some of the 2014 amendments.

Since 2015, the Government of Canada has launched a concerted effort to address the concerns that had provoked indigenous communities to initiate court actions. The primary issue is the amalgamation of four regional land and water boards into a single entity: the Mackenzie Valley Land and Water Board. To resolve this issue, representatives of the Government of Canada consulted with indigenous groups, the Government of the Northwest Territories and industry. The Government of Canada then drafted a legislative proposal, shared it with all interested partners and made changes to it in response to the feedback we received. The proposed legislation now before us is the product of this co-operative conciliatory process.

Among other changes, Bill C-88 would end amalgamation, reinstate the regional land and water boards and effectively end the court challenges.

The proposed legislation would promote reconciliation with indigenous peoples, a key priority for this country.

The proposed legislation now before us would also resolve a different problem created by the court challenges related to board amalgamation. To simplify a complex story, the court challenges effectively put a halt not only to amalgamation but to several policy measures that were central to the regulatory regime. These included the use of development certificates and the necessary enforcement scheme, inspector notice requirements on Gwich'in and Sahtu lands and other measures. Bill C-88 would reinstate these measures through specific amendments to the Mackenzie Valley Resource Management Act.

Another effect of Bill C-88 would be to further strengthen environmental protections in the Arctic, home to some of the world's most fragile ecosystems. The effects of climate change are more evident in the Arctic and appear to be progressing more quickly than anywhere else.

In 2016, Canada agreed to take a series of actions to better protect the Arctic. Chief among these was a moratorium on the issuance of new oil and gas rights in Canada's Arctic offshore region, subject to a five-year, science-based review. To ensure the appropriateness of these actions, the Government of Canada initiated year-long consultations with territorial and northern indigenous governments and with existing Arctic offshore oil and gas rights holders to discuss their interests. These consultations highlighted the importance of protecting the Arctic's unique offshore environment while pursuing safe, responsible activities that create jobs and economic opportunities in northern indigenous economies.

The consultations featured many discussions about how best to balance environmental and economic concerns. The result of the consultations was the series of amendments before us in Bill C-88 concerning the Canada Petroleum Resources Act.

First, to complement the moratorium on the issuance of new licences, which our Prime Minister announced in 2018, the amendments would allow us to prohibit any oil and gas exploration or development activities under existing exploration and significant discovery licences in the Arctic offshore.

Furthermore, the proposed amendments would fix a gap in the current legislative regime regarding existing licences and the five-year, science-based review. The legislation as it now stands does not allow licences to be suspended to allow for the review to unfold as required. In fact, some existing Arctic offshore oil and gas rights will begin to expire before the next review period is over. Bill C-88 proposes to resolve this issue by allowing the government to preserve existing rights until the review is completed. At that point, we would have a better understanding of the next steps for Arctic offshore oil and gas.

These amendments would be fair to the existing rights holders and would produce an effective compromise. The scientific research could be completed without any pressure associated with existing oil and gas activity in the region, while existing oil and gas rights could not expire in the meantime.

Bill C-88 proposes to improve the regulatory regime in the north through a series of amendments informed by several important developments, including court challenges, the accelerated impact of climate change in the Arctic and the opportunity to foster reconciliation between indigenous peoples and the Government of Canada. The amendments proposed in Bill C-88 would increase the predictability, consistency and timeliness of regulatory reviews in the north while strengthening environmental protections.

Northerners deserve a fully functional modernized regulatory regime that meets their particular needs, the kind of regime that promotes growth and prosperity while safeguarding fragile ecosystems, the kind of regime that strikes an appropriate balance between economic and environmental concerns.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Madam Speaker, I am hoping that one of my Liberal colleagues can actually answer the question, which I have asked a number of times. What they have done in part 1 is say that the former Conservative government did not respect rights, although certainly, there were a lot of conversations. What we were trying to do was not to diminish the ability of the communities to have influence. We were actually trying to remove red tape and complications from the process. That is part 1. If the Liberals want to criticize what we did in part 1, it is their right to do so.

What the Liberals have done in part 2 is a direct contradiction of what was done in part 1. They have given the federal government, without consultation with first nations, enormous power, not seen in any other legislation, to end development. If it something to facilitate projects moving forward, the government is against it. However, if it is something that gives the federal government power to stop projects, it does not seem to have any issue with it.

I would like the member to tell me how he can align the extraordinary power the federal government is taking in part 2, something that has never been done before, without consultation with indigenous communities and territorial governments, and justify it to the people, in light of what he said about part 1.

[Dan Vandal, Liberal, Saint Boniface—Saint Vital, MB]

Madam Speaker, this bill is intended to fix a problem created by the previous Conservative government, move us ahead on a process that promotes reconciliation, and at the same time, create certainty for investments in the Mackenzie Valley and the Arctic.

It is clear to me that what is important is achieving a balance between the environment and the economy. The former government, not only on this file but on many other files, did not do the proper consultation necessary. In what little consultation it did, it paid no heed to the advice it was getting.

What we are doing is correcting a wrong that was mandated by the previous government, and we are achieving the right balance between the economy and the environment.

[Sheri Benson, NDP, Saskatoon West, SK]

Madam Speaker, I think my colleague and I would both agree that the people of the Northwest Territories know best how their resources should be used and managed. I agree with his assessment of what happened with the previous Conservative government. It ignored the spirit, intent and the word of constitutionally protected land claims and self-government agreements. It failed to listen, and it has led to lengthy legal battles.

Generally we support Bill C-88. At the same time, there is an important opportunity here for the government to put into action the United Nations Declaration on the Rights of Indigenous Peoples. Although it is not included in the bill, I would like to hear my hon. colleague's comments about his support for including the UN Declaration on the Rights of Indigenous Peoples in this bill.