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Ottawa and Alberta have reached an agreement that will see the province take control of regulatory approvals for its major projects, something they say will deliver those projects more expeditiously.
In joint announcements on Friday, Prime Minister Mark Carney and Alberta Premier Danielle Smith characterized the deal as the “next phase” in the relationship between the province and the federal government.
“Together, we will build big and build fast to create a stronger, more sustainable, more independent economy for Albertans and all Canadians,” Carney wrote in a release.
In an interview on CBC’s Power & Politics Friday, Smith said the deal represented the culmination of “a lot of years of battle.”
“We will continue to work with the federal government in their areas of legitimate federal interest, which of course includes water, includes Indigenous consultation,” Smith said.
“But I think that this really restores the balance that was always envisioned in how our country should work in approving major projects.”
WATCH | Ottawa-Alberta deal ‘restores the balance’ on approving major projects, says Danielle Smith:
Ottawa-Alberta deal ‘restores the balance’ on approving major projects, says Danielle Smith
Premier Danielle Smith spoke to Power & Politics about a new agreement with the federal government that will give the province more control over major projects that fall under Alberta’s jurisdiction.
In the agreement, projects that fall under Alberta’s jurisdiction would rely on the provincial environmental and impact assessment process. If projects include federal work or are on federal land, Ottawa would blend Alberta’s process into the federal review, if applicable.
In the event that both federal and provincial assessments apply, the agreement says regulators would work together to develop a single decision to minimize duplication.
The agreement also addresses Indigenous consultation.
When a proposed project is primarily under provincial jurisdiction, Canada will recognize Alberta as best placed to consult with Indigenous peoples through its own consultation policies and practices, the agreement says.
Both governments say they remain committed to respecting Indigenous rights under Section 35 of the Constitution and ensuring Indigenous participation in the assessment process.
The ‘no more pipelines act’
For many years, the Alberta government has been a vocal critic of federal legislation concerning project approvals. The Impact Assessment Act, which came into force in 2019, is often referred to by those in the oil and gas industry (and by a former premier) as the “no more pipelines act.”
Alberta is currently challenging the law in court.
“The parties acknowledge that Alberta is challenging the constitutionality of the IAA, which is a matter before the courts,” the agreement reads. “By entering into this agreement, Alberta does not acknowledge the IAA is constitutional.”
Mount Royal University political science associate professor Lori Williams said Friday’s announcement addresses one of Alberta’s many long-held grievances with Ottawa.
“It may be that this is enough to … move the ball a bit forward on the original memorandum of agreement that said that there had to be some kind of progress by April,” Williams said.
Richard Masson, the former CEO of the Alberta Petroleum Marketing Commission, said he viewed the deal as a sign that the two governments are genuinely trying to make progress on what have long been frustrations.
“There’s no need to have confusion around regulatory processes. You can have high standards with a process that allows for timely decisions,” he said.
Richard Masson, the former CEO of the Alberta Petroleum Marketing Commission, says he’s hopeful the deal announced Friday would result in an improved regulatory process that would enable clear decisions on a timely basis. (Justin Pennell/CBC)
From an oil company or an oil investor point of view, the deal also indicates Carney’s government seems to have a totally different goal than the previous government, Masson said.
“This government is trying to say, ‘We need to develop our resources or mines, our oilsands projects, our oil and gas projects.'”
The Calgary Chamber of Commerce also praised the deal, writing in a statement that it was a “strong example” of the federal and provincial governments “adapting to the ways in which our economy is evolving by addressing policy inconsistencies.”
The draft agreement will be posted online and will be finalized near the end of March after public feedback is collected.
Similar agreements have been completed between Ottawa and the provincial governments of British Columbia, New Brunswick and Ontario.
