Alberta court rules federal Impact Assessment Act still unconstitutional

For the second time, an Alberta court has found the federal Impact Assessment Act unconstitutional. The Alberta Court of Appeal issued a 4-1 decision on Friday, stating the law still infringes on provincial jurisdiction despite amendments made after a 2023 Supreme Court ruling. The act, known as Bill C-69, establishes a review process for major projects like pipelines and mines. The court determined the legislation grants Ottawa excessive authority to halt provincial projects based on minor federal impacts. "While Parliament may have the power to create an impact assessment scheme that complements existing regulation in environmental matters, the (Impact Assessment Act) creates great uncertainty due to the potential for previously unpronounced standards to apply to designated projects," the court wrote. It concluded the amended act enables the federal government to conduct wide-ranging inquiries into provincial matters. The ruling noted some changes were not problematic but said the law's core overreach remains.

Alberta Premier Danielle Smith celebrated the decision on social media, calling it "yet another big win for Alberta." She urged the federal government to accept the ruling and not appeal. "I'm calling on the federal government to accept this ruling, refrain from yet another appeal, and immediately work with Alberta and the other provinces to clean up this flawed Trudeau-era legislation once and for all so it no longer inhibits economic development in our country," Smith said. The provinces of Ontario and Saskatchewan supported Alberta's legal challenge.

The federal Environment Minister's office said it is reviewing the decision. "To position Canada for long-term prosperity in a rapidly changing global economy, the Government of Canada is moving forward to build at a pace not seen in decades. The (Impact Assessment Act) is fundamental to the advancement of this work," wrote press secretary Amy Falkner. The statement added the court's opinion does not alter Ottawa's commitment to cooperative federalism.

The ruling arrives as the federal and Alberta governments collaborate on the Pacific Link oil pipeline to the West Coast. That project recently received a national interest designation under the new federal Building Canada Act. Critics, including Conservative Leader Pierre Poilievre, have long demanded the Impact Assessment Act be repealed. Former Alberta premier Jason Kenney famously labelled it the "no more pipelines act." Meanwhile, the federal government has tabled Bill C-39 to move the assessment of pipeline and energy transmission projects from the Impact Assessment Agency to the Canada Energy Regulator. Officials cited industry advice that the regulator holds greater expertise for such projects. Ottawa has stated the Canada Energy Regulator would still operate under the Impact Assessment Act's provisions during its reviews.

With files from The Canadian Press, Global News and CBC News