:
I call this meeting to order.
Welcome to meeting number 82 of the House of Commons Standing Committee on Natural Resources.
Pursuant to the order of reference of Tuesday, October 17, 2023, and the adopted motion of Wednesday, December 13, 2023, the committee is resuming consideration of Bill , an act to amend the Canada—Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and to make consequential amendments to other acts.
Since today's meeting is taking place in a hybrid format, I would like to make a few comments for the benefit of members and witnesses.
Please wait until I recognize you by name before speaking. For those participating by video conference, click on the microphone icon to activate your microphone, and please mute yourself when you're not speaking. For interpretation for those on Zoom, you have the choice at the bottom of your screen of floor, English or French. Those in the room can use the earpiece and select the desired channel.
I will remind you that all comments should be addressed through the chair. Additionally, taking screenshots or photos of your screen is not permitted.
With us today for the first hour is the Honourable Seamus O'Regan, Minister of Labour and Seniors. We will proceed with Minister O'Regan's opening statement.
Joining Minister O'Regan, we have, from the Department of Employment and Social Development, Helen Smiley, director general of strategic integration and corporate affairs. Supporting the other departments, we have, from the Department of Natural Resources, Abigail Lixfeld, senior director of the renewable and electrical energy division, energy systems sector, and Annette Tobin, director of the offshore management division, fuels sector.
Minister O'Regan, the floor is yours for five minutes. Welcome.
Good afternoon, everyone. It's a pleasure to be able to speak to Bill today.
[English]
People of Newfoundland and Labrador have relied on the ocean forever, and others across Atlantic Canada have too. It's who we are. It's what we know. We are very proud of it. Bill recognizes a significant opportunity. Out my way, when you see an opportunity, you grab it.
I'm old enough to remember when the accord was born at the hands of people like John Crosbie, Brian Peckford and Bill Marshall. I was lucky enough to work for Premier Brian Tobin when he hit Hibernia first oil and wrote those first speeches.
However, I can tell you that the in-between times were bleak because of the cod moratorium. Oil saved my province. Times were bleak, and then we started to build our offshore. I remember first oil and I remember thinking, “We don't have a clue what we're doing.” We didn't know what was possible, but we knew what could be done and we knew we had to go for it. Jointly, we managed and regulated it through C-NLOPB. We stayed the course and people prospered. In fact, people built up energy and oil and gas right across this country and around the world.
We started in Newfoundland's offshore in what the CEO of Exxon Mobil has described to me as the harshest environment in the world that his company operates in. We found a way. More importantly, we built up one of the most skilled labour forces the world has ever seen. People noticed and companies noticed, much like they're doing right now.
Look, the world is evolving. Where we get our energy and how we get it are evolving too. Naturally, the Atlantic Accord should evolve. Unions agree, industry agrees and the provinces agree. This is because the world is looking for wind and looking for hydrogen, and Newfoundland and Labrador, God knows, has the wind and can produce the clean hydrogen the world is rushing to get.
I must admit that I had my doubts, but then I stood on a runway in Stephenville, Newfoundland, to see the German Chancellor's plane land with possibly some of the top CEOs in the world: the CEOs of Siemens and Mercedes. They were telling us they wanted to buy hydrogen from us. This race around the world is on, and delaying this any more is like starting the race with your shoelaces untied.
Markets are moving. Business is moving. Investment is moving. We need to skate to where the puck is. Today, the Alberta Investment Management Corporation just announced a new billion-dollar fund dedicated to global energy transitions in decarbonization sectors.
This is a challenge, and we are proud to take on a challenge. We applaud the engineering skills that build a West White Rose gravity-based structure, because they are the same skills that build the wind turbine monopiles that are stored right next door in Argentia, Newfoundland.
The same C-NLOPB that has managed the offshore for decades will usher in the same success for wind and hydrogen. Newfoundland and Labrador's offshore industries association, one of the biggest advocates of our offshore over the years, has already gone ahead and changed its name to Energy NL because it knows where the market is headed. That very same Energy NL, which changed its vision in 2022, now looks to a sustainable and prosperous lower-carbon energy industry. It gets it. It's following the money.
This industry will be built. It's already happening. China is already producing half of the global supply of offshore wind. Do you think China is slowing down? Do we want those jobs going to China? No, thank you. I want Newfoundlanders and Labradorians on the ground floor of this trillion-dollar industry. I want them supplying the world with wind and hydrogen and taking home the profits.
Newfoundlanders and Labradorians—Canadians—should not lose out on this. This is about the livelihoods of thousands of workers back in my home province. It's about their families. It is about them doing what they do best.
This bill was drawn up with the provinces of Newfoundland and Labrador and Nova Scotia. The premiers want it. Premier Furey and Premier Houston, one Liberal and one Progressive Conservative, are both urging that we get ahead of this and get on with it because they want it, because businesses in their provinces want it and because workers in their provinces are the best in the world at it.
[Translation]
We have done so in the past, and we will do so again.
:
Thank you, Minister, for your opening statement.
Colleagues, before I begin our first round, I just want to remind everyone that I use these two cards. Yellow means there's 30 seconds remaining, and red means time's up. I'll try not to interrupt you mid-sentence, but I will be waving these. If I have to interrupt you, I will, just to keep our meeting on time and on track.
We will now begin our first round with the Conservative Party of Canada and Shannon Stubbs.
Mrs. Stubbs, the floor is yours.
Thanks to the department officials and Minister O'Regan for being here.
Minister, I've enjoyed many of our conversations about the inextricable links between Albertans and Atlantic Canadians, who for generations have built each other's provinces to the benefit of all of Canada. As a first-generation Albertan—and you and I have talked a lot about our common roots—and as the daughter of a Newfoundlander, I care deeply, just as you do, about offshore petroleum opportunities for Newfoundlanders and Labradorians, for Nova Scotians and for all Canadians. I also care deeply and Conservatives care deeply about future opportunities in new and renewable technologies.
Just as you've outlined, it is surely true that the same pioneers and innovators who have unlocked offshore Newfoundland and Labrador with incredible talent and technology are the same pioneers who unlocked the oil sands. They'll be the same pioneers to lead the future of alternative technology development and the fuels of the future.
Here's what my concern is about Bill , despite the mischaracterizations of your colleagues. I won't hold those against you, because you haven't been here at the committee. This is the problem with the bill. You know that the global market for offshore petroleum exploration and development is highly competitive because it's extensive in scale, cost and risk. Even exploration is outstanding in that way.
That is why it is very important for regulatory and fiscal regimes to be certain, clear, predictable and fair. They are, in fact, inextricable from the business case decision that private sector proponents would make. The truth is, as you know, for offshore petroleum development, a private sector proponent will spend years and years, raise millions of dollars in capital and head towards exploration to only maybe do about three or four bids a year, and they can choose to go anywhere in the world.
Just as you've said, Newfoundlanders and Labradorians have led the world in this effort, and in 2022, of course, five bids worth $230 million were bought from the offshore of Newfoundland and Labrador. Those represent thousands of jobs, spinoff jobs and economic opportunities for Newfoundlanders and Labradorians and all Canadians.
That was the number in 2022—five bids. Bill was introduced in May 2022. There was another bid for offshore petroleum exploration off the coast of Newfoundland and Labrador in November 2023. Do you know how many bids there were?
:
It was zero. There were no bids. This is my concern. The same story is being seen in production such that in 2020, Newfoundland and Labrador produced over 100 million barrels of offshore petroleum per day. Today—and I know you know this better than almost anyone—that's fallen over 35% to less than 67 million barrels per day.
Those are the consequences of layers and layers of anti-energy policies and legislation. That's why Conservatives oppose Bill . It's very clear that the uncertainty and lack of clarity—and the proof is already in the pudding—will end offshore petroleum development. The truth is that the lack of certainty and lack of clarity will also be barriers to private sector proponents who want to develop offshore renewables, because they require the same things around certainty, clarity and consistency.
I wonder if you, like me, will call on your minister to fix Bill since Bill C-69 is full of sections that have already been declared unconstitutional. Those sections are in Bill . That causes exactly the same kind of uncertainty regarding clarity that will prevent offshore petroleum developers and private sector proponents who want to to get into offshore wind renewables.
Are you also concerned that the government has not done a single thing to fix Bill in 110 days and that Bill includes proposed sections 61, 62, 169 and 170, which all come from Bill and are all unconstitutional?
:
Thank you, Mr. Aldag, for your point of order.
Colleagues, it is important that we have one person speaking into the mic at a time so the interpreters, who do a tremendous job, can interpret effectively. Let's make sure we do allow, as the question comes, the minister to finish his answer and his thought, and then you can proceed to another question.
I hope all colleagues can abide by these rules for the best interest and functioning of our committee, but most importantly for the interpreters, who we want to make sure do a concise and accurate job of interpreting.
Minister, you were mid-sentence. If you would complete your thought, we could go back to Mrs. Stubbs.
I want to thank you, Minister, for being here today.
I know you understand the importance of the Atlantic Accord to Newfoundland and Labrador and Nova Scotia—probably better than most, having lived through a number of processes as they relate to changes to the accord. I have too.
It has not gone unnoticed how important the Atlantic Accord has been to Newfoundlanders and Labradorians in building a strong economy and strong workplace. Not only did they lead the way in offshore oil development, but they set in place the trades, the labour component and the skill development—everything you need to build any industry within the province.
Today they're asking to lead in offshore wind, which is a clean energy sector. In fact, Premier Furey has already posted today how important it is that the province of Newfoundland and Labrador see passage of Bill amendments so they can move forward on the bold path they've carved out for themselves in offshore wind in Newfoundland and Labrador.
Minister, I want to ask you today to bring to light for this committee how important this bill is to Atlantic Canadians, to the labour force, to the families who live there and to the overall economy of Atlantic Canada.
:
At home, we just call it “the accord”. It's just called the accord.
When I was Minister of Indigenous Services and, stepping outside of that role, in my role as regional minister for Newfoundland and Labrador, we were able to find an additional $2.5 billion, using the levers of the accord, for our provincial government and our province's economy. That's astounding, as I know you know, Ms. Jones. That's a lot of money for us. Because it was recurring funding over a number of years, it positively affected the credit rating of the province almost immediately and saved additional hundreds of millions of dollars.
What it did at that time—such a pivotal time in our history—was that it gave us control of our destiny. There is nothing we can do with the Atlantic Accord federally without it being mirrored provincially. Similarly, legislation provincially must be mirrored federally. We have to agree on these things. There's no getting around it. That sort of autonomy gave us such a sense of pride and a sense of prosperity at the time. Some people have called the Atlantic Accord our document of prosperity.
In my lifetime, it has created an industry that we are so proud of. We export our talent and our people all around the world. I sit on a plane, as many of you know, on flights from St. John's to Toronto, and the guy next to me is going to Mongolia at 29 years old because of the things he knows and the things he has learned. This is not something I thought we were capable of doing. Nobody thought we were capable of doing this 30 years ago. We are some of the best in the world at it.
You provide a form of stability and investment that provides training and benefits for a province. You allow them control. You attract investment.
We would have to reproduce something or would have to come up with some new government entity or body in order to embrace the billions of dollars and thousands of jobs that this has the capability of producing. Why would we do that? This works perfectly well. It has been proven and people believe in it. More importantly, the investment community believes in it. Actually, more important than that is that Newfoundlanders and Labradorians believe in it.
It's good to see you again, Mr. O'Regan. You were the first minister of Natural Resources appointed after I arrived in the House in 2019.
Something you said in your opening remarks struck me. You said that oil saved your province. The problem is that now we have to save the planet from oil, and that means a transition. For me, the transition is quite simple. We need to move from carbon-intensive energy to low-carbon energy. Unfortunately, I get the impression that most of your government's actions are geared toward supporting the oil and gas sector.
You're the Minister of Labour and Seniors. You'll understand what I'm getting at. We have to transition. You may not like the term “just transition”, but workers will have to be supported as the Canadian economy transitions. My feeling is that not enough is being done to move away from fossil fuels. In that sense, I found your opening remarks quite revealing because you said that oil saved your province.
You talked about seeing the German chancellor and CEOs of big companies like Siemens come to your region. I had the opportunity to go to Germany with the and meet with people from Siemens, but those leaders made it clear to us that they thought making blue hydrogen, which is derived from gas, was a non-starter because the technological risk was much too high. In other words, it would cost far too much to ever be profitable.
I want the people of Newfoundland and Labrador to come out ahead, and I hope there will be a transition for them. If wind power can make that happen, so much the better, but I get the impression that the oil and gas sector is competing with the clean energy sector, and the government isn't refereeing the game. In other words, you're still giving massive amounts of money to the oil and gas sector. Case in point: the $30‑billion pipeline. I don't see you making courageous decisions, such as supporting clean energy to the same extent as other western countries.
I keep all of that in mind when I look at Bill . Personally, I am in favour of provincial autonomy. This bill does not contradict that principle, and the people of Newfoundland and Labrador want to see it passed. Why would I vote against this bill? I would be angry if a member from Newfoundland and Labrador came and encouraged us to vote against an agreement between Quebec and Canada. The only thing that bothers me about this is the fact that it's still a bill that I feel is designed to support fossil fuels. Why? Because it allows for the authorization of new oil and gas development. In my opinion, the government is not using this bill to do the courageous thing that would enable us to shift from carbon-intensive energy to low-carbon energy.
The purpose of wind, as I understand it, is to make blue hydrogen. Tax credits for hydrogen are also given to folks in the natural gas sector who want to make blue hydrogen, not green hydrogen. Those two sectors will be competing. So I feel that, at the end of the day, this bill is a waste of time. They want to take the word “hydrocarbon” out of the agreement and talk about energy instead. This is actually a kind of greenwashing, because the largest part of the agreement is about fossil fuels.
I don't know if you agree with me.
Sorry, that may have been a long intervention.
:
Thank you for the question, Mr. Simard.
[English]
I wish the transition were easy. It's not going to be easy. It's going to be messy, it's going to be difficult and it's going to be challenging. However, it could be incredibly prosperous for the people of my province and the people of the country as a whole if we get it right. Abrupt stops and starts to whole industries, especially when....
I know that a lot of people in some parts of this country don't appreciate this. In Newfoundland and Labrador, Saskatchewan and Alberta, we appreciate this. We are the fourth-biggest producers of oil in the world and the fifth-biggest producers of gas. That is big. There is no getting to net zero or transitions without those three provinces. It isn't going to happen. Every part of the country benefits from that prosperity.
Having said that, I often say that in my part of the country, in Newfoundland and Labrador, we can't really afford ideology. We don't let that get in the way. Stare opportunities squarely in the face. This is about jobs and money. These are opportunities from investors coming and knocking on our door and German chancellors landing their planes and telling us we are the place they want to invest in for green hydrogen. It's great.
I'll tell you who I find incredibly brave. Don't look necessarily to the politicians. Look to the workers of my province. There is a community in Newfoundland called Argentia. They are building a gravity-based structure for the West White Rose project. If you stand there and look at it, this thing reaches right up to the sky. This was built by men and women using cement driven in wheelbarrows to go to the top of this thing and build it. It is a gravity-based structure for an offshore oil rig. Right next to it, they are building the biggest monopile marshalling port on the eastern seaboard, putting together wind turbines for the entire eastern seaboard.
That's a transition. That is staying out of the way of investment but allowing workers to do the work they do. The same workers and same unions building one are also building the other. This is how it happens. It happens before your eyes. It's not a big “stop one and start the other”. It is going to take time.
I agree with you, Monsieur Simard, that we need to get faster at it. There's no question. However, I'll tell you what: This unnecessary obstruction of legislation that would attract renewable investment isn't helping things much. We need to get busy.
:
If I do interrupt you, because you're full of flight and fancy right now, it's only because I have a bunch of questions.
That being said, I think what really concerns me is that we have a window, and that window will pass us by if we don't move. Since Biden moved on the IRA, with half a trillion dollars in new investments, they're at twice what they said they would get for solar capacity three years ago. They're at 43% more than what they said they would get for wind.
I'm dumbfounded that I'm sitting here at a committee where my Conservative colleagues are going to vote against jobs in Newfoundland and Labrador just out of spite. We have an opportunity. Those projects are going to the United States. They're construction jobs. They're long-term jobs. They're jobs for the communities.
How is it possible that we could sit on the sidelines and let that opportunity go to the United States, China or Europe, leaving us in the dirt?
:
Mr. Angus, I would just say to you, as I've said to members of this committee already, that if we didn't have the Atlantic Accord and the C-NLOPB, we'd have to invent it. That would just take time. Plus, it would take time to build up a reputation as being a safe place for investors to go. We have that.
When I think about our nuclear industry, going back to when I was natural resources minister, that's another industry that is extremely competitive. One thing that really strikes me is that one of our greatest advantages is our regulatory regime. It's one of the best in the world. Investors know it and trust it. People know that it contributes to safe and clean forms of energy. We cannot let that be squandered. We cannot whittle that away. You are absolutely right.
When I was the natural resources minister and Dan Brouillette was the secretary of energy, he and I got along very well, but the Trump administration was not exactly favourable to these things. A 180° has happened. I can tell you that, ultimately, people will follow the money. Renewables have only plummeted in cost, and profits will only rise.
:
I think he was actually from Trinity and was going to Mongolia, but I hear your point.
Nothing can happen in the Atlantic Accord legislation without it being mirrored legislatively by the province of Newfoundland and Labrador to the letter. Nothing can happen to the industry without the province's approval. That has always been the way of the accord, and that is probably, singularly, its greatest achievement. It will continue to provide us that stability, and it will continue to provide us that flexibility.
I cannot speak to investors' decisions on oil and gas. I can tell you that oil and gas off our shores is certainly a capital-intensive endeavour. Anybody who has stared at Hebron or currently stares at West White Rose knows it is a lot of money. Gulf oil is much cheaper, but the one thing you cannot question is that the greater the stability and certainty you provide investors, the greater investment you will realize.
The more we disparage investors around this table and unnecessarily obstruct this legislation, the far greater the chances we're going to be looking at a lot more uncertainty than that.
I will split my time with my colleague Darrell Samson, from the wonderful province of Nova Scotia, in about two and a half minutes.
Welcome, Minister. It's nice to have you here today with us.
First off, I read the release today. You're the chair of the ministerial working group on regulatory efficiency for clean growth projects. I do welcome that statement. There are a lot of good things the folks on that cabinet committee are doing to ensure that Canada is positioned to take care of, take advantage of and leverage our strengths in the clean growth future we are moving into.
Before turning it over to Mr. Samson, I have one question.
When you look at a portfolio or at energy sources and you are looking in that vein, you talk about diversity. You want to diversify your portfolio and your energy sources.
The way I think about offshore wind or offshore energy, depending on the term you want to use, is that it's able to diversify the energy sources that the wonderful provinces of Newfoundland and Labrador and Nova Scotia, in these two cases, can generate. They can provide extra energy and extra funds, drive investment and create wealth and jobs.
I think that's what we're talking about today, and that's why we have the support of the premiers of both of those beautiful provinces. I think that's where we're going. Is that really what this conversation on Bill is about?
:
It's about diversity. It's about money. It's about jobs. That's what the offshore has brought to us, and also the technical expertise that, thank goodness, in this instance is transferable to these new jobs. In other words, the same labour force that did one does the other. As I said, you stand there in Argentia, Newfoundland, and it's happening there right in front of you.
Workers are behind this and unions are behind this because this is about jobs and money. It has been a blessing to my province, but the world is changing. Investors change, things move and money moves, and you're seeing greater diversity in many energy portfolios. Again, in looking at the news today, we're seeing AIMCo in Edmonton taking $1 billion of their money and putting it towards “energy transition”, in their words, and global energy transition. I presume they're making investments around the world in these fields and in renewables. They're diversifying.
We continue to look at ways to diversify because that's what investors want. At one point, it was perhaps just the leaders in environmental groups and in governments, but now it's investors, and that is a tide that will be very difficult to turn for any one of us. It's one that we shouldn't be trying to turn anyway. It's one that we should embrace. I think this is such a pivotal moment. Having been Minister of Natural Resources and now, years later, standing before this committee, I think the level of investment and interest in the potential for this country is just massive.
We've embraced these industries before. We embraced oil and gas before, and look how good we got at it. Now we can take that same prowess, that same expertise and that same ability and put it towards something new, where investors in those same industries are starting to put their money. The opportunity is golden.
:
Thank you, Minister, for being here today with us. Also, thank you to your staff.
This is an extremely important topic for all Atlantic Canadians, and an extremely important topic for Newfoundlanders and Nova Scotians. I'd like to read a quote for you. During debate in the fall, in October, Premier Houston, the Conservative Premier of Nova Scotia, said, “ Bill C-49 is a necessary first step in unlocking our energy potential. There will be many [other] steps along the [way] but we are hopeful that Bill C-49 passes”. Less than an hour ago—so obviously he is very concerned about where we're going with this—Mr. Houston said, “We believe in the potential for green hydrogen and clean energy in our province. This will mean good-paying jobs for Nova Scotians and...for the world.”
Minister, could you share your comments on that? Why do you think and his party are against creating great jobs for Nova Scotians and Atlantic Canadians? What is the issue?
Mr. O'Regan, what you're saying sounds an awful lot like what we hear from big oil companies, which would have us believe that it is technologically possible to have low-carbon oil in the near future.
When I talk to experts, they all tell me that's a pipe dream. Money is being invested in carbon capture strategies, but it's a pipe dream. These resources are being wasted instead of being used to develop low-carbon energy. According to numerous analyses, we are one of the countries that invests the least in clean energy.
In my opinion, low-carbon oil is a bit like poutine during a diet. Quebeckers like poutine. But if you're on a diet, you don't eat poutine. No one is going to claim that there's such a thing as low-calorie poutine. That's stupid, and it doesn't work like that. It's the same with oil. There will never be low-carbon oil.
Having said that—
:
How did you hoodwink the provinces? How did you pull the wool over their eyes? That would suggest a very dismal view of the Premier of Newfoundland and Labrador, but we've seen the same attitude for the Premier of Nova Scotia.
The Conservatives are going to vote against the premiers of Nova Scotia and Newfoundland and Labrador because they're trying to get clean energy projects. I'm thinking back to 2007. Do you remember Stephen Harper and how he went after Atlantic Canada on the Atlantic Accord? Do you remember the great Bill Casey, the Conservative? Danny Williams also stood up.
I just want to get my head around the idea that has decided that unless Newfoundland and Labrador is willing to go down with the ship on big oil, he is going stop Newfoundland and Labrador and Nova Scotia from moving ahead on economic development. Pierre Poilievre has instructed his people to come in, ridicule the premiers and say he's going to stop this from going forward.
Have we seen anything like this since Stephen Harper decided to pick his fight with Danny Williams? We know how well that went down for the Conservatives. They're still picking up the pieces.
Minister O'Regan, I just heard you talk about those close to the resource. Offshore wind, which is a wonderful thing, uses all of the natural resources that flourish in Canada, but to the people close to the resource, the fishing industry is going to be competing with offshore wind. Someone close to the fishing industry—in fact very close to the fishing industry—Katie Power, texted me last night. Overall, the language from Liberals and their minister surrounding expediting and fast-tracking is enormously dismissive to the vocal and fierce opposition locally in Newfoundland.
I don't agree with the minister's comments that the Province of Newfoundland and Labrador is comfortable with the verbiage on pace within the bill, particularly for the fishing industry. Did you consult with the fishing industry at all?
:
I call this meeting back to order.
Pursuant to the order of reference of Tuesday, October 17, 2023, and the adopted motion of Wednesday, December 13, 2023, the committee is resuming consideration of Bill , an act to amend the Canada—Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and to make consequential amendments to other acts.
In accordance with our routine motion, I'm informing the committee that all remote participants have completed the required connection tests in advance of the meeting.
With us today for the second hour we have, from the Department of Fisheries and Oceans, Kathy Graham, director general of marine planning and conservation. By video conference, from the Department of Transport, we have Isa Gros-Louis, director general of indigenous relations and navigation protection, and Joanna Manger, director general of marine safety and security. From the Department of Natural Resources, we have Abigail Lixfeld, senior director of the renewable and electrical energy division, energy systems sector, and Annette Tobin, director of the offshore management division, fuels sector.
Kathy Graham, the floor is yours for five minutes for an opening statement.
Hello and good afternoon to committee members.
As mentioned, my name is Kathy Graham and I'm the director general for marine planning and conservation at Fisheries and Oceans Canada. I sincerely appreciate the opportunity to appear before this committee on behalf of the department.
The Government of Canada has committed to increasing the conservation of marine and coastal areas to 25% by 2025 and 30% by 2030. This important “30 by 30” target is articulated in the Convention on Biological Diversity's Kunming-Montreal global biodiversity framework, which was adopted during the 15th meeting of the Conference of the Parties in 2022.
In 2023, at the fifth International Marine Protected Areas Congress, which Canada hosted, Canada announced important details for its marine protected area protection standard, through which we plan to prohibit several industrial activities within the boundaries of new federal marine protected areas, including exploration, development and production of oil and gas resources.
Fisheries and Oceans Canada, together with Environment and Climate Change Canada and Parks Canada, is responsible for implementing the marine protected area protection standards with the support of other federal regulators such as Natural Resources Canada, Crown-Indigenous Relations and Northern Affairs Canada and Transport Canada. This bill serves to reinforce the joint management framework with the provinces in offshore accord areas. Furthermore, this bill supports the implementation of the protection standard in new federal sites to be established in the Canada-Nova Scotia and Canada-Newfoundland-Labrador offshore accord areas by harmonizing marine protected area laws and accord acts. Amendments would provide the authority for the Governor in Council, with the provincial minister's approval, to prohibit the commencement or continuation of oil and gas activities and prohibit the issuance of a new interest in areas identified for conservation. The amendments would also enable the negotiation and removal of existing oil and gas interests with compensation in areas that are identified for conservation.
Fisheries and Oceans Canada uses two main types of marine conservation tools to protect marine ecosystems. We use the Oceans Act to establish marine protected areas and use the Fisheries Act to create fishery area closures, which can then be recognized as other effective area-based conservation measures—what we commonly refer to as OECMs—if they meet the criteria set out in the Government of Canada's marine OECM guidance. Areas recognized in this way are referred to as marine refuges. We rely on Natural Resources Canada to provide assessments of the petroleum resources in candidate areas for protection and to help us resolve any issues of concern that may arise as they relate to oil and gas.
We work closely and collaboratively with our federal, provincial and territorial colleagues and indigenous partners throughout the protected area establishment processes. We use the best available knowledge to inform our processes, including scientific, indigenous and local knowledge. We engage and consult extensively with stakeholders across a wide range of industries from the time an area is identified for conservation to when the area is established as a marine protected area or recognized as a marine refuge. We also seek to minimize socio-economic impacts while achieving conservation objectives for each of our sites.
Bill would make the application of the marine protected area protection standard more consistent across all of Canada's marine spaces.
Fisheries and Oceans Canada is committed to working with provinces and territories, indigenous peoples and industry stakeholders to meet the objective of conserving 30% of Canada's marine and coastal areas by 2030. We will continue to work closely with Natural Resources Canada and the relevant provinces in all aspects of the marine protected area establishment process to ensure that the co-management regime and the provisions of the accord acts are fully respected.
I welcome any questions, Chair.
Thank you, Mr. Chair and committee members for inviting us to speak to Transport Canada's mandate with respect to Bill .
My name is Joanna Manger and I'm the director general of marine safety and security.
I would like to begin by acknowledging that I am joining you remotely today from Montreal, and would like to acknowledge, with respect, that I'm appearing from the traditional and unceded territory of the Kanien’kehá:ka, a place that has long served as the site of meeting and exchange among nations.
As lead department for all transportation issues, policies and programs that promote safe, secure, efficient and environmentally responsible transportation, Transport Canada recognizes the value of offshore renewable energy projects for the Canadian economy and in the transition towards a net-zero economy.
I am joined by my colleague Isa Gros-Louis, director general of indigenous relations in the navigation protection program, to speak about Transport Canada's role and responsibilities regarding navigation protection in relation to renewable energy projects such as those envisioned in Bill .
[Translation]
Transport Canada administers several acts, such as the Canadian Navigable Waters Act and the Canada Shipping Act, 2001, with comprehensive regulatory regimes to support the development of our offshore natural resource potential while mitigating impacts on the public right to navigation, navigation safety, and the safety of mariners and passengers on board vessels. Transport Canada anticipates that the amendments proposed in Bill will have no impact on the enforcement of these acts.
[English]
The Canadian Navigable Waters Act enables Transport Canada to take actions that protect the public right to navigate on all Canadian navigable waters by regulating structures, devices or things—known as works under the act—that are built or placed in Canadian waters, meeting the internal waters and the territorial sea of Canada, which generally extends up to 12 nautical miles from the coast. This means that offshore renewable energy projects proposed within Canadian waters would require proponents to apply for an approval under the Canadian Navigable Waters Act to build any works. This allows Transport Canada to assess impacts to navigation so that we may mitigate them.
Generally speaking, these mitigation measures involve lighting or marking requirements to ensure these works are visible to navigators in the area to promote the safety of vessels and the works. Such mitigation measures are normally included as conditions in an approval. The Canadian Navigable Waters Act would, however, not apply to offshore renewable energy projects that would be proposed in the exclusive economic zone of Canada, as these are outside the mandate of our legislation.
[Translation]
Transport Canada's marine safety and security program develops, administers and enforces policies and regulations made under the Canada Shipping Act, 2001, to ensure the safe operation and navigation of vessels, the protection of life and property, and the prevention of ship-source pollution.
Some of the regulations that apply to navigation in the current context include the vessel pollution and dangerous chemicals regulations, the navigation safety regulations, 2020, the vessel construction and equipment regulations, and the marine personnel regulations.
[English]
Transport Canada, Natural Resources Canada, the Canada-Newfoundland and Labrador Offshore Petroleum Board and the Canada-Nova Scotia Offshore Petroleum Board have a long history of co-operation when it comes to the safety of offshore operations.
Generally speaking, the Canada Shipping Act, 2001, and its regulations apply to all vessels while in transit to any offshore facilities. Once on site, vessels directly engaged in offshore drilling and production activities are only subject to regulations implemented by the relevant offshore board. Any vessels not directly engaged in offshore drilling activities fall under the Canada Shipping Act, 2001, and regulations implemented by the relevant board. Navigational safety around offshore structures outside the 12-nautical-mile limit would fall under the authority of the Canada Shipping Act, 2001, and regulations such as the navigation safety regulations.
The exact nature of measures taken will depend on the scale and scope of the project undertaken and will be determined after a collaborative process involving the proponent, Natural Resources Canada, the offshore boards and other stakeholders. Transport Canada will continue to collaborate with Natural Resources Canada, other federal departments, other jurisdictions, industry and indigenous peoples to ensure that current and future transportation legislation and regulations continue to protect the safety of navigators and the right to navigate, while allowing Canadians to benefit from the advancement of offshore renewable energy projects.
I look forward to answering your questions.
Thank you.
Nova Scotia is interested, as you said, in seeing their offshore industry expand into offshore renewables. They have set a very ambitious goal of leasing up to five gigawatts by 2030 to meet domestic electricity, hydrogen and other needs.
In order for them to build projects in the accord areas, they need Bill and these amendments to pass. The province does have a marine energy regime that they could use for projects located within provincial bays, but it would be very difficult for them to achieve a target of five gigawatts outside of the offshore.
I want to apologize deeply to my Conservative colleagues for talking about facts, because I know that winds them up.
I want to go back to what we were talking about. Ms. Tobin, you mentioned the veto power the province has. The Conservative provincial government shut down an oil and gas proposal. If the feds had tried to push it through, the province has the veto power, or if the feds had tried to stop it, the province has the veto.
Is that correct? Is that how the accord works?
:
—in a number of points of order and everybody starts turning on their mics.... We've had this conversation before, a number of times over several months, about numerous members turning on their mics at the same time and speaking into the mics. Our interpreters, unfortunately, cannot interpret when we have five mics on. Everybody is aware of that, but we continue to do it.
Please, so our interpreters can do their jobs, let's not turn on our mics and all make comments into the mics.
Colleagues, you'll get an opportunity to speak in your time. If there's something on the record you'd like to clarify or ask questions of our witnesses about, you can do so at that time.
We've gone through all the points of order.
Do you have a point of order, Mr. Kelly?
:
Thank you, Mr. Kelly, for your point of order.
We'll now proceed.
Colleagues, we have nine minutes left. I've recognized everybody. For the remaining nine or 10 minutes that we have, if colleagues agree, I'm going to allow two and a half minutes for each party. It's a quick round. We'll have two and a half minutes each, starting with the Conservatives, then the Liberals, and then we can proceed to the other members.
If everybody's fine with that, then we'll end the meeting right on time, plus or minus a minute.
Are we good? I see no objections.
We now go to Mr. Small for two and a half minutes.
Because my colleague Mr. Kelly raised the issue, I think it's important that I reiterate as well several things that were said in this committee that were non-factual or incorrect. I think he referred to them as made-up facts and misleading facts.
I'd like to recognize that on Monday in committee, the member for Coast of Bays—Central—Notre Dame stated that CAPP was not supportive of Bill We now know that was not accurate. CAPP did outline concerns that they had in a letter. They have not stated that they are not supportive of the legislation.
Second, Mr. Chair, it was stated that the premiers were “hoodwinked” and wool was pulled “over their eyes”. We now know that was an incorrect statement. Neither Premier Furey nor the Premier of Nova Scotia was hoodwinked in any way.
It was also insinuated that the FFAW was never consulted. While today he used Katie Power's name in committee, I just read the article and yes, there are concerns that have been outlined by Katie Power of the FFAW. It's the first time that I was aware of it, but certainly she did state in the article that she was consulted. She had attended several meetings, both virtually and in person.
If we want to get facts straight at this table—
:
I'm going to recognize you in a moment, Mr. Small.
I don't think we're going to get to start this round and finish.
Ms. Jones, thank you for your point of order. It's not a procedural issue on your point of order, so thank you for that.
Colleagues, I'll encourage you, again, not to use a point of order for debate, but to have procedural relevance under a point of order.
I'm going to go to the point of order over here. Then, I'll go to you, Mr. Angus, on a point of order.
Mr. Small, go ahead on the point of order, with relevance procedurally, please.
I may be willing to withdraw everything I just said, because I was trying to deal with facts, and I realize that really set people off.
I wanted a clarification from Monday. This is maybe why I ended up scratching my head about the Conservatives opposing jobs in Newfoundland and Labrador. It was Mr. Small, and I'll quote him. He said, “We oppose this legislation. When we voted for it, obviously we opposed it.” In my 20 years in Parliament, I didn't know that when you voted for something it meant you opposed something, so if my colleague is opposing it, you vote against it, but since he said he was voting for it, which obviously meant he opposed it, I got confused. I did hear them say again and again that they oppose this legislation, which would oppose the right of Newfoundland and Labrador and Nova Scotia, where they have a veto over these projects, to actually exercise that veto.
If he votes for it and he opposes it, could he just clarify where the heck they are going on this thing? I feel like I'm getting tossed at sea.
:
You acknowledged his point of order, and you let him make his speech, so I'm assuming you're going to apply your approach equally to me. In response to his point of order, I will just clarify, because I know he's wondering.
Conservatives opposed Bill because it will end Atlantic offshore petroleum development, which the private sector already showed by putting in zero bids after this legislation was introduced, which clearly gave them the signal. You can see that because, the year before, there were five bids worth hundreds of millions of dollars. We also opposed Bill C-49 because it will introduce uncertainty and lack of clarity. It is based on the unconstitutional Bill , which will open it up to challenges and hinder the development of offshore renewable technology, too.
That, to be clear, is why Conservatives oppose Bill C-69. We will accelerate traditional oil and gas for the—
:
Thank you, Ms. Dabrusin.
Colleagues, I will remind everybody that, as Ms. Dabrusin has said, when the chair is speaking, we don't interrupt and speak. Let one person speak at a time as you're recognized by the chair.
I do want to take an opportunity to thank the officials for coming today. We are at the end of our time. We won't get the additional round in that I was hoping to do, but thank you so much for your testimony, for answering questions and for taking the time out of your busy schedules to join us and inform the work we've done on Bill . Have a great day.
Is it the will of the committee to adjourn the meeting?
Some hon. members: Agreed.
The Chair: The meeting is adjourned.