Cory Morgan: The Political Implications of Carney’s Project Approval Bill for Liberals, Tories, and Alberta

Commentary

The flagship bill of the Carney government’s fall legislative agenda is the Building Canada Strong Act (C-39). The bill is an omnibus brute coming in at 243 pages. It’s something of an irony that a bill pitched to reduce bureaucracy comes in such a large and convoluted package. The prime minister has an ambitious agenda to fast-track approvals on projects to spur economic growth; thus, C-39 must try to cover many variables. The bill was tabled on Sept. 21 and has already passed first reading.

The bill won’t be passed by the time Albertans go to the polls on Oct. 19 to vote on whether or not to start the process to pursue provincial independence. But the debate surrounding the bill could impact the choice of Alberta voters. Lengthy approval processes for Alberta energy infrastructure projects that often proved to be fruitless are a strong irritant and helped foster Western alienation in Canada. If Bill C-39 appears to be able to address the issue, it could cool the political temperature in Alberta. If the bill gets stalled or the government backs down on the proposed approval timelines as the debate continues, it could inflame Albertans further.

While the bill is large, its promise is simple: one project, one coordinated federal review, one year to a decision once the application is complete. The one-year clock starts after a “comprehensive application” and finished studies. That front-loads work proponents used to do inside the review. Early site work can be allowed before the final decision, which helps a proponent and alarms everyone who thinks consultation should happen before dirt moves. That clause certainly makes it clear that the government expects the process will ultimately lead to approval for most applications. It is a dramatic change in direction from the Trudeau administration, which proved to be obstructionist with pipeline proposals.

With more onus being placed on project proponents, though, it raises questions about whether the bill shortens the whole path from concept to construction or merely relocates discretion. If private proponents are mired in new application obligations, it could chill investment as effectively as the current process does.

The bill has a provision to pause timelines for indigenous consultation. This raises a red flag for people eager to see project approvals speeding up. Indigenous consultation requirements have been one of the prime hindrances for companies trying to get large projects approved in Canada. Consultation of indigenous bands is a clear requirement for project development in Canada, but it has never been clearly defined when it is enough consultation.

Enbridge spent over $500 million applying for approval for the Northern Gateway pipeline and spent years in the process, including participating in indigenous consultation. Despite all of the expenditure of time and funds, the Federal Court of Appeal quashed the pipeline application in 2016 (eight years after the initial application) and said the process had been “brief, hurried, and inadequate.” If the Canadian courts consider spending over six years on a project application to be brief and hurried, how will they rule when the inevitable challenges come against the federal government’s proposed one-year timeline?

By inserting a clause to pause the process for indigenous consultation, the government undoes the certainty they are trying to create with the bill in the first place. The government must define clear timelines and consultation requirements if proponents are to be drawn into entering the application process for large projects in Canada.

The bill puts Conservative Leader Pierre Poilievre in a difficult position. He is tasked with being the leader of the Official Opposition, but opposing C-39 outright in a recorded vote looks, in much of Alberta, like opposing faster approvals while a Liberal government is finally using the words industry asked for. Supporting it looks like letting Carney occupy the “build” lane Poilievre has spent years claiming.

Poilievre has had a tough time trying to carve out space for himself as the Carney government assumed and implemented many Conservative planks, such as rescinding the consumer carbon tax, reducing the size of the civil service, and cutting immigration. If he loses the file on promoting megaprojects, the list of items he can own on the political landscape starts becoming thin. He will have to try to split and parse sections of the bill with pointed critique while still appearing to support the principle of streamlining the process.

Alberta Premier Danielle Smith is invested in the success of C-39. If the West Coast project is listed on time and C-39 survives second reading without looking chaotic, the “remain” option in the referendum gets a tangible exhibit, and Smith gets to say her hard line produced a federal conversion. Alienation does not vanish, but it loses a talking point at a critical time.

On the political front, Bill C-69 appears already to be a success for Carney as it has blunted Poilievre’s opposition while crossing partisan lines and potentially gaining support in Alberta. The bill creates high expectations, though, and if it doesn’t lead to quick approvals and construction for a West Coast pipeline, Alberta alienation will reignite more strongly than ever.

Passing C-69 will establish the government on a pragmatic, pro-development path—if they can get it through the House of Commons unscathed.

Views expressed in this article are the opinions of the author and do not necessarily reflect the views of The Epoch Times.