Question Period Notes
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In accordance with the Access to Information Act, the government proactively publishes the package of question period notes that were prepared by a government institution for the minister and that were in use on the last sitting day in June and December.
The question period notes may be partially or fully redacted in accordance with the legislation; for example, if the notes contain information related to national security or personal information. (Learn more about exemptions and exclusions.)
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The government is working to ensure that the oil and gas sector remains competitive and an attractive place to invest following a difficult spring and summer for the sector. Many factors contributed to the difficulties faced by the sector, including a collapse in oil prices in March, reduced demand for hydrocarbons, and the continued impacts of the COVID-19 pandemic and associated health measures.
On April 17, 2020, the Government of Canada announced $1.72 billion in funding to the provinces of Alberta, British Columbia, and Saskatchewan to support the decommissioning and remediation of inactive wells. This included a $200 million repayable loan to Alberta’s Orphan Well Association. These measures will help retain and create thousands of jobs that will have lasting environmental benefits.
Offshore oil and gas activity in Atlantic Canada, including exploratory drilling, is of concern to Canadians given the need for careful management and oversight to protect workers and prevent oil spills. In addition, the dual impact of low oil prices and COVID-19 has resulted in a unified call from offshore industry players and the province of Newfoundland and Labrador for federal assistance during the global pandemic.
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.