Alberta Court of Appeal Rules Federal Impact Assessment Act Remains Unconstitutional
In a 4-1 decision, the Alberta Court of Appeal ruled that the federal Impact Assessment Act is still unconstitutional, finding it grants Ottawa overly broad powers over projects within provincial jurisdiction. Ontario and Saskatchewan supported Alberta's challenge.
The Alberta Court of Appeal issued a 4-1 decision on Friday ruling that the federal Impact Assessment Act, also known as Bill C-69, remains unconstitutional. This marks the second time the province of Alberta has challenged the legislation.
The court found that the modified law still gives Ottawa the power to stop a project in provincial jurisdiction if it has even the smallest impact on federal jurisdiction. The Supreme Court previously struck down much of the act in 2023, but the court determined the subsequent modifications did not resolve the constitutional issues. According to the ruling, the act allows the federal government to conduct far-ranging inquiries into matters exclusively within provincial jurisdiction, creating great uncertainty due to the potential application of previously unpronounced standards to designated projects.
Ontario and Saskatchewan both backed Alberta in its legal challenge against the Impact Assessment Act. Former Alberta premier Jason Kenney had dubbed the legislation the "no more pipelines act." Critics and Alberta Premier Danielle Smith have argued that the law inhibits economic development.
Premier Smith described the ruling as "yet another big win for Alberta" and called on the federal government to refrain from appealing and work with provinces to clean up the legislation.
In response, the office of federal Environment Minister Julie Dabrusin stated the government is reviewing the decision and considering next steps. The federal government maintained that the Impact Assessment Act is fundamental to building at a pace not seen in decades and intends to move forward with building projects despite the ruling.
Ottawa and Alberta are currently partnering on a new oil pipeline to the West Coast, with the Pacific Link pipeline recently receiving a national interest designation under the Building Canada Act. Through newly tabled Bill C-39, Ottawa is attempting to transfer the assessment process for pipeline and energy transmission projects from the Impact Assessment Agency of Canada to the Canada Energy Regulator.