Question Period Note: Lac-Mégantic Rail Bypass

Lac-Mégantic Rail Bypass Project update

• The Government of Canada continues to work in collaboration with its partners to complete the Lac-Mégantic Rail Bypass Project as quickly as possible, while minimizing the Project's impact on the community and ensuring the best possible integration.
• The Department is actively working to finalize the required environmental and hydrological consultations while also advancing land acquisition required for the construction of the Bypass.
• Construction of the Bypass will begin once the necessary lands have been acquired and all regulatory approvals have been obtained, including from the Canadian Transportation Agency.

If Pressed

• On February 18, 2023, the notices of intent to expropriate were published in the Canada Gazette, marking the beginning of the 120-day expropriation process to complete the land acquisition process.
• Total project costs are not available at this time and will be finalized once the request for proposals is completed.
• On December 20, 2022, the Prime Minister and Premier of Québec met and agreed that both governments will increase their funding for the construction of the Lac-Mégantic Rail Bypass, to the same ratios as initially announced in 2018.
• As part of the 2022 Federal Budget, $237.2 million was allocated to Transport Canada over five years for the construction of the Lac-Mégantic Rail Bypass, the dismantling of the existing track and the implementation of environmental measures.

• On May 11, 2018, the Prime Minister of Canada and the Premier of Québec, announced the Lac-Méganctic Bypass Project, which was estimated to cost $133 million at the time. It was to be jointly funded by the federal government (60%) and the province (40%). The commitment was reaffirmed on December 20, 2022, when the Prime Minister of Canada met his Quebec counterpart and both governments said they would increase their funding for infrastructure projects.
• The Project consists of building a new 12.5 km rail corridor going around the Lac-Mégantic downtown area. The proposed Bypass project will significantly reduce the number of residences located close to the new rail track (from 258 to 18 within a 100m right of way). The Project’s main objective is to help the Lac-Mégantic community to move forward and mitigate the traumatic effects associated with the accident.
• Transport Canada is working with Canadian Pacific (CP) to seek the required regulatory approval from the Canadian Transportation Agency (CTA) for the project. As part of this process, TC conducted public consultations on the Hydrogeological Report from September to November 2022. During the information sessions, the municipalities, Indigenous communities and affected landowners had the opportunity to ask questions and raise concerns. A consultation report outlining the community's comments, concerns and suggestions is being prepared and will be submitted by CP to the CTA by spring 2023. CP is also updating the Project’s Environmental Effects Evaluation Report to finalize the CTA application in June 2023.
• The negotiation timeframe for the acquisition of parcels of land ended on January 13, 2023. This important step forward followed three postponed negotiation end dates which had allowed impacted owners more time to properly analyze their offer, to use the services of experts, and to obtain reports related to the value and sale of their property.
• In February 2023, at the request of the Minister of Transport, the Minister of Public Services and Procurement Canada (PSPC) initiated the expropriation process to acquire the land required for the Project. On February 18, notices of intent to expropriate were published in the Canada Gazette, marking the beginning of the 120-day expropriation process. Transport Canada intends to begin construction as soon as possible, once all regulatory approvals are obtained.

Location: Lac-Mégantic and Municipalities of Frontenac and Nantes