:
I call this meeting to order.
Welcome to meeting number 87 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 mic. Please mute yourself when you are not speaking. For interpretation, for those on Zoom, you have the choice, at the bottom of your screen, of floor, English or French. For those in the room, you can use the earpiece and select the desired channel.
Although this room is equipped with a powerful audio system, feedback events can occur. These can be extremely harmful to interpreters and cause serious injuries. The most common cause of sound feedback is an earpiece worn too close to the microphone. We therefore ask all participants to exercise a high degree of caution when handling the earpieces, especially when your microphone or your neighbour's microphone is turned on. In order to prevent incidents and safeguard the hearing health of interpreters, I invite participants to ensure they speak into the microphone that their headset is plugged into and to avoid manipulating the earbuds by placing them on the table, away from the microphone, when they are not in use.
I will remind you that all comments should be addressed through the chair. Additionally, screenshots or photos of your screen are not permitted.
In accordance with our routine motion, I am informing the committee that all remote participants have completed their required connection tests in advance of the meeting.
I would like to provide members of the committee with some instructions and a few comments on how the committee will proceed with the clause-by-clause consideration of Bill . As the name indicates, this is an examination of all the clauses in the order in which they appear in the bill. I will call each clause successively. Each clause is subject to debate and a vote. If there is an amendment to the clause in question, I will recognize the member proposing it, who may explain it. The amendment will then be open for debate. When no further members wish to intervene, the amendment will be voted on.
Amendments will be considered in the order in which they appear in the bill or in the package that each member has received from the clerk. Members should note that amendments must be submitted in writing to the clerk of the committee.
The chair will go slowly to allow members to follow the proceedings properly. Amendments have been given a number in the top right corner to indicate which party submitted them. There is no need for a seconder to move an amendment. Once it is moved, you will need unanimous consent to withdraw it.
During debate on an amendment, members are permitted to move subamendments. These subamendments must be submitted in writing. They do not require the approval of the mover of the amendment. Only one subamendment may be considered at a time, and that subamendment cannot be amended. When a subamendment is moved to an amendment, it is voted on first. Then another subamendment may be moved, or the committee may consider the main amendment and vote on it.
Once every clause has been voted on, the committee will vote on the title and the bill itself. An order to reprint the bill may be required if amendments are adopted so that the House has a proper copy for use at report stage.
Finally, the committee will have to order the chair to report the bill to the House. The report contains only the text of any adopted amendments, as well as an indication of any deleted clauses.
We have a few witnesses today to answer your questions.
From the Department of Justice, we have Jean-Nicolas Bustros, counsel, and Jean-François Roman, legal counsel.
From the Department of Natural Resources, we have Annette Tobin, director; Lauren Knowles, deputy director; Cheryl McNeil, deputy director, by video conference; and Daniel Morin, senior legislative and policy adviser, renewable and electrical energy division.
We also have the legislative clerks from the House of Commons, Dancella Boyi and Émilie Thivierge.
Before the chair calls clause 1, there is an amendment, on pages 1 and 2 of the package, seeking to introduce a preamble to the bill.
Monsieur Simard, would you like to move BQ-1?
I want to quickly come back to something that has been raised by some witnesses, namely, that Bill isn't necessarily part of the energy transition. For many stakeholders, the energy transition is about putting low‑carbon energy ahead of fossil fuels. However, there is no clear indication of that in the bill.
We would therefore benefit from including a short text in the preamble that would enable us to both give the bill an intent, that is to say to be part of the energy transition, and to meet Canada's commitments with respect to meeting emissions reduction targets. We could also talk about reforming certain oil and gas frameworks.
I will read you the proposed text:
Whereas Canada has ratified the Paris Agreement, done in Paris on December 12, 2015, which entered into force in 2016;
Whereas the goal of the Paris Agreement is to keep the increase in global mean temperature to well below 2oC above pre‑industrial levels and pursue efforts to limit the temperature increase to 1.5oC above pre‑industrial levels;
Whereas the Government of Canada has committed to achieving and even exceeding the target for 2030 in its nationally determined contribution communicated in accordance with the Paris Agreement;
Whereas the Government of Canada has committed to achieving net‑zero carbon emissions by 2050;
Whereas the Canadian Net‑Zero Emissions Accountability Act entrenches the commitment to achieve net‑zero carbon emissions by 2050 in Canadian law;
Whereas, in December 2022, the 15th Conference of the Parties to the United Nations Convention on Biological Diversity, known as “COP15”, adopted the Kunming‑Montreal Biodiversity Framework;
Whereas Canada has committed to halting and reversing biodiversity loss by 2030;
Whereas marine petroleum exploration and exploitation projects pose a direct and indirect threat to marine biodiversity;
Whereas the oil and gas production sectors are the largest emitters of greenhouse gases in Canada;
Whereas, in order to cap and reduce the greenhouse gas emissions of the oil and gas production sectors, their total production must gradually decline;
Whereas, in order to reach net‑zero carbon emissions, states must cease making new investments in petroleum research and production;
Whereas the first step in the energy transition is to stop approving new petroleum exploitation projects;
If we added this text to the preamble, we could resolve a major problem that makes me reluctant to support Bill C‑49, namely, the fact that, as part of the transition, fossil fuels are being treated the same as renewable energy.
In the amendments we've proposed, this reading will come up again and again. It was also shared by many witnesses we've heard from, including Normand Mousseau of the Trottier Energy Institute, who is probably the most credible person in Quebec, if not Canada, when it comes to the energy transition.
:
Thank you, Monsieur Simard.
The amendment seeks to add a preamble to the bill, but as House of Commons Procedure and Practice, third edition, states on page 774, “if the bill is without a preamble, the committee may not introduce one.”
Bill is without a preamble. Therefore, I rule the amendment inadmissible.
There is no debate on this. It is inadmissible. We can move forward to the next item.
No amendments have been submitted for clauses 1 to 6. Do we have unanimous consent to group them for the vote?
Some hon. members: Agreed.
:
We don't have unanimous consent.
Please call the vote.
(Clause 13 agreed to: yeas 10; nays 1)
(Clause 14 agreed to: yeas 10; nays 1)
(Clause 15 agreed to: yeas 6; nays 5)
(Clause 16 agreed to: yeas 10; nays 1)
(Clause 17 agreed to: yeas 6; nays 5)
(On clause 18)
The Chair: We'll go to BQ-4 on clause 18.
Monsieur Simard, would you like to move it?
I would start off by saying that there are aspects of this that could be supported in the intent of the amendment, but ultimately I'll have to oppose it. There are some very clear reasons for that.
I'll start with the implementation, which has to be done as part of the regulatory review process and future proposed regulations under part 3 of the act that will impose specific requirements on project proponents related to safety and environmental protection. There's that piece. The regulator wouldn't be required to provide a recommendation on the subject matter at this stage of the process, given that there would not yet be a proposed project. That's my understanding. This section of the act pertains to the issuance of submerged land licences prior to formal project proposals being submitted to the regulator for review and authorization and prior to information being available respecting that specific impacts be based on future project design in chosen technologies.
It's a good intent, but it's the wrong place in the process. For that reason, I won't be supporting it.
:
I have a point of order, Mr. Chair. I just want to get some clarification either from you, Mr. Chair, or from our legislative clerks.
I noticed that last time we tried getting unanimous consent to lump some clauses, it was given a no. It is the ability of members not to agree to that. I wonder if there might be wording that.... Instead of an all-or-nothing clause, I wonder if we might see if there are any clauses that members would like to vote on separately from that grouping. I noticed that there were some that all voted in favour of or that people didn't want to speak to. Therefore, instead of having just all-or-nothing lumping together, I wonder if we could call perhaps that clauses 20 to 27 be lumped, unless anybody wants to pull out a specific clause to vote on separately.
I'm not sure if that can be done procedurally, but some lumping, some grouping, could be a way of helping us move forward, if that is allowed.
:
Thank you very much, Mr. Chair.
I guess I will just get straight to it. I move the motion that was submitted on Friday:
a) According to Statistics Canada: “In Saskatchewan, the collection of the carbon levy ceased in January 2024, contributing to the province's year-over-year price decline of natural gas (-26.6%).”; and
b) Saskatchewan's inflation rate dropped to 1.9%, a full percentage point below the national inflation rate,
The committee call on the Liberal government to immediately axe the carbon tax.
Given that this deals with a provincial matter, I think I would have support from Mr. Simard, in that provincial jurisdiction is a common theme for him.
I think it's imperative that we send the message to the House on behalf of this committee, especially since we heard testimony.... Well, we saw in the Order Paper question, and we've seen repeatedly, that the government doesn't actually track any emissions reductions from the carbon tax. Therefore, it is abundantly clear that it is not an emissions reduction scheme. It's just simply a tax and redistribution scheme.
Therefore, I think it would be good for this committee to really send a strong message that we support the resource sector and the development of the resource sector. Also, I think it would be great for the folks who pay their gas bills, their power utility bills, their fuel bills and their home heating bills to see that this committee takes the affordability crisis seriously.
It would also be for people who want to invest in Saskatchewan, in Alberta and in Newfoundland in the offshore that removing this unnecessary tax that is.... It removes a competitive advantage that Canada has. I think it would be important for us to send that note.
Also, seeing that the House did pass Bill previously, I think it would be good to just be consistent with that theme, and I think that this motion would allow us to do that. I think the proof is in the pudding here when we look at what Statistics Canada has to say about the price decline on natural gas for ratepayers but also about what it did to inflation in Saskatchewan, which is now below the 2% target that the Bank of Canada set out.
Also, the CPI went down 0.1%, which is the first time it has actually trended downward since May 2020. I think that's a key factor, as well—seeing the impact it actually does have on consumers and seeing that the needle is moving in the right direction in Saskatchewan when it comes to affordability by simply axing the tax.
I think it would send a good message to people if the committee would just approve this quick, simple motion. We can send it to the House, and I think that would be a good, quick little report from this committee.
I don't think I have too much more to say. I think we have a good piece of legislation ahead of us. Obviously, we have some issues with Bill that we still wish the government would address. However, overall, it's important to my good colleague from Newfoundland and Labrador, here, for his province to do some things that they want.
With that, I think I will wrap up my remarks.
I'd like to start by saying that in one aspect, I agree with the intent of the amendment, but I'm unable to support it in the way it has been presented.
I'd begin by noting that the federal and provincial governments recognize, through their actions, the importance of regional and strategic assessments. This is why they are currently conducting a regional assessment for offshore wind in advance of a future call for bids for both the Canada-Newfoundland and the Canada-Nova Scotia offshore areas. This is why the regulators have conducted strategic environmental assessments in advance of a petroleum call for bids.
The real concern here is that this amendment, if accepted, would require that the comprehensive regional assessments currently being undertaken be redone. When we hear from the Conservatives about wanting certainty and clarity, this would completely undo any work and cause huge delays. That is a huge problem that goes well beyond the intent of the bill. The bill includes amendments that would provide the offshore regulators with the authority to conduct regional and strategic assessments prior to a call for bids, but these authorities aren't intended to be prescriptive, and it's unlikely that the provinces would support this action as presented in this motion.
I would also note, based on some comments we heard previously, that the Conservatives, under previous governments, have taken actions such as this, which created duplicative processes. They added red tape and increased the approval times in Newfoundland's offshore to 900 days. Our government has gotten that down to 90 days. It's not appropriate to reintroduce renewable energy-killing requirements that are already in place under other processes.
For those reasons, we're going to be opposing this amendment.
:
Well, I'm fascinated that my Conservative friends want the federal government now to be able to establish rules.
It says that before any bids can go out, there has to be an environmental assessment done first. Now, I come from mining country. If we had followed these rules and said that the federal government is going to impose in northern Ontario that you can't do any staking unless you've had a prior environmental assessment, there wouldn't be a single prospecting operation anywhere, because what happens is that the bids go out—in the north, it would be prospecting claims—then they get reviewed and then they go to an assessment. You go to the assessment because you have a potential project. You can't say that a whole area has to have a prior review first, before you can go for any bids.
I think what they're saying is that we're going to override the board, we're going to override the provinces and we're going to send the message to anybody who wants to invest to get out of town, because it's not going to happen. I think they're cutting off their nose to spite their face.
:
Thank you, Ms. Dabrusin.
With that, colleagues, we've worked hard over the last two hours, so let's make sure we keep working together.
I'll call the vote. Shall CPC-6 carry?
(Amendment negatived: nays 7; yeas 4)
The Chair: Thank you, colleagues. That is our time for today's meeting.
Is there agreement of the committee to adjourn?
Some hon. members: Agreed.
The Chair: The meeting is adjourned.