Question Period Notes
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Canada has a critical opportunity to develop its liquefied natural gas (LNG) industry to directly access world markets for gas exports, to finance its transition to a low carbon economy, to advance reconciliation with Indigenous Peoples, and to support global action on climate change by displacing higher emitting fuels – including LNG from other producers. Challenges from fossil fuel project opponents, uncertainty over the outcomes of regulatory review processes, and shifting market conditions pose risks to potential investments worth billions of dollars and tens of thousands of jobs in Canada, despite proponents’ efforts across 11 proposed projects to develop an LNG industry that would be the lowest emitting in the world.
The International Energy Agency (IEA) recently released a sustainable recovery report in June 2020 analyzing the pandemic’s impacts on the global energy system. On October 13, 2020, it will release its annual publication of the World Energy Outlook (WEO), which will provide an update of energy demand and supply projections to 2040 based on different scenarios, taking into account the impacts of COVID-19 and the near-term actions that could accelerate the global clean energy transition.
The Government of Canada approved the Trans Mountain Expansion (TMX) project in June 2019, because it is in the public interest. The project is subject to 156 binding conditions by the Canada Energy Regulator. The government is implementing additional measures, including accommodations to address the potential impacts of the project on Indigenous rights and other concerns.
TC Energy, formerly TransCanada, withdrew its application for review of the Energy East Pipeline project by the National Energy Board in October 2017. Since that time, the issue of a west-to-east pipeline is often raised in the media. The Minister may be asked if there have been any updates on this file.
On August 19, 2020, the Minnesota Department of Commerce (DOC) filed an appeal with the Minnesota Court of Appeals of the Minnesota Public Utilities’ (PUC) order that found the Line 3 Environmental Impact Statement adequate, and that granted a Certificate of Need and Route Permit to Enbridge. The DOC is basing its appeal on the fact that the Certificate of Need was granted without the PUC considering a long-term range demand forecast. The Court is expected to hear the appeal in early 2021.
On August 28, 2019, Bill C-69 came into force. The Impact Assessment Act has been operating as envisioned, with approximately 10 projects in the system as of September 2020. Three topics have had a higher profile:
• Teck’s Castle Project in BC was designated by the Minister of Environment and Climate Change Canada (ECCC) on August 19, 2020, as requiring an impact assessment. Both the company and the Mining Association of Canada expressed disappointment in the decision.
• Phase I and II expansions of the Vista Coal Mine project in Alberta were designated on July 30, 2020, by the Minister of ECCC. This decision reversed a December 2019 decision – made when information on the phase I expansion was not then known – that phase II would not require an impact assessment. The proponent is seeking a judicial review.
• Strategic Assessment on Climate Change (SACC): The SACC will guide consideration of climate change throughout the impact assessment process, and requires proponents to submit a plan for achieving net-zero emissions by 2050. Released on July 16, 2020, the SACC requires an evaluation of the extent to which the effects of a project hinder or contribute to the Government of Canada’s ability to meet its climate change commitments. (Regional Assessment Exemption Regulation: see offshore drilling QP card.) The Mining Association of Canada is concerned that the SACC places unrealistic demands on mining projects (rather than companies) to develop a net-zero plan by 2050, and has raised its concerns with the Minister of ECCC.
• In the September 23 Speech from the Throne, the Government announced its intention to legislate the goal of net-zero emissions by 2050.
In February 2020, the Government of Canada agreed to negotiate a financial restructuring of the Lower Churchill projects to help the Newfoundland and Labrador mitigate cost overruns and impacts on the province’s fiscal position.
Gazoduq Inc. proposes to construct and operate a 780 km natural gas transmission line from the TC Energy Canadian Mainline in northeastern Ontario to Saguenay, Quebec. The pipeline would connect to a future natural gas liquefaction complex and marine terminal to be constructed by GNL Québec in Saguenay. The project would allow for the export of Alberta-sourced gas to European and Asian markets, with the potential to displace use of higher GHG-emitting energy sources, such as coal. This is one of the first projects to be assessed under the Impact Assessment Act. On July 17, 2020, The Impact Assessment Agency (IAA) issued the Final Tailored Impact Statement Guidelines and Plans to the proponent to guide the development of the Impact Statement for the project. The proponent is currently preparing its Impact Statement based on the direction provided in the Guidelines.
LNG Canada, the only liquefied natural gas infrastructure project under construction in Canada, and largest private sector investment in Canada’s history, includes a natural gas liquefaction facility, the Coastal GasLink pipeline, and a marine terminal to export surplus Canadian natural gas to some of the world’s fastest growing economies in Asia. The project recently faced challenges with protests against pipeline development and the impacts of the COVID-19 pandemic. However, it remains on track to begin exporting by 2025.
The Government of Canada has committed $750 million to the Emissions Reduction Fund to help achieve net-zero emissions by 2050 as part of its economic response to the COVID-19 pandemic. The program will be launched in October 2020