Varcoe: Ditch Bill C-69 to get major projects built, Prairies say

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With billions of {dollars} price of proposed developments shifting their approach by the nation’s slate of main tasks, Ottawa needs to hurry up the timelines to get such initiatives constructed — and business leaders are on board.

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The three Prairie provinces are additionally making their very own strikes, signing an settlement Tuesday to work collectively and develop joint financial corridors whereas calling on the Fed to hurry up the regulatory course of for main infrastructure tasks.

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In the meantime, a brand new ballot exhibits that assist is rising for extra oil and fuel growth within the nation, which would require extra funding in vitality infrastructure.

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Nonetheless, Canadians appear skeptical of governments offering predictable, aggressive insurance policies for traders to construct new vitality developments wanted to assist Canada meet its local weather targets.

All of this begs the query: How will we get massive tasks accomplished?

Alberta’s transportation minister and his Prairie counterparts assume they’ve a part of the reply.

“One of many key elements affecting our potential to finish main tasks, to enhance commerce infrastructure and entry to international markets, is regulatory delays brought on by Invoice C-69,” Transportation Minister Devin Dreeshen advised reporters on Tuesday. .

“A whole repeal of Invoice C-69 would go a protracted option to . . . approvals, but additionally to enhance investor confidence.”

Invoice C-69, the federal Affect Evaluation Act, was handed in 2019 and overhauled how main infrastructure tasks are evaluated, together with new vitality developments similar to transboundary pipelines.

It turned a lightning bolt for dissatisfaction lately surrounding Canada’s incapacity to finish such initiatives.

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Trade gamers contend the federal regulatory course of and lengthy timelines — and political decision-making — all create uncertainty and hinder funding.

The Alberta Courtroom of Enchantment dominated the invoice unconstitutional in Could 2022 after a problem from the province. Ottawa appealed, and each side (and different provinces) argued their case earlier than the Supreme Courtroom of Canada final month.

In the meantime, because the nation strikes to net-zero emissions by 2050, a collection of carbon seize and storage tasks have been launched within the province linked to the vitality sector, whereas new hydrogen, petrochemical complexes and LNG terminals have been proposed throughout Canada .

“Merely put, there are tens if not a whole bunch of billions of {dollars} of capital ready to be deployed, massive massive tasks being thought of,” mentioned Scott Crockatt of the Enterprise Council of Alberta.

“However proper now it’s extremely troublesome for a CEO to face in entrance of their board and say how lengthy the method goes to take – and the way a lot it may price.”

Final month’s federal funds identified that a number of authorities departments and the Affect Evaluation Company of Canada are working to streamline the nation’s regulatory processes.

By the top of this yr, Ottawa has promised it’s going to launch a plan to enhance influence assessments and permits.

“Hopefully extra will probably be completed by the federal authorities to repair among the inefficiencies and dramatic price will increase which might be making our nation uncompetitive. However I’ll give them credit score for shifting in the proper route,” says Tristan Goodman, president of the Explorers and Producers Affiliation of Canada.

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Dreeshen and the transportation ministers of Saskatchewan and Manitoba agree that unpredictable decision-making and timelines have to be established. Invoice C-69 stays one of many greatest obstacles from Alberta’s perspective to getting large-scale developments accomplished.

“It’s good language to listen to from the federal authorities that they’re fascinated with making an attempt to hurry up approvals . . . It simply takes approach too lengthy to get a sure or no,” mentioned Dreeshen.

“We want to see the federal authorities repeal C-69,” added Saskatchewan Highways Minister Jeremy Cockrill.

Enhancements within the course of are wanted.

A current ballot carried out for the College of Ottawa’s Optimistic Power Analysis Program discovered that greater than 4 in 10 respondents imagine that governments in Canada are doing a really poor or poor job of “creating a transparent, predictable and aggressive coverage and supply regulatory atmosphere for traders” constructing vitality infrastructure to assist the nation meet its local weather targets.

About 28 % indicated that governments within the nation are doing a mean job.

The ballot, carried out by Nanos Analysis, additionally discovered that assist amongst Canadians for the expansion of the oil and fuel sector has risen over the previous three years, from 52 per cent in 2020 to 58 per cent this yr.

The survey of 1,054 Canadians, accomplished in January, discovered that 74 % of respondents view oil and fuel as necessary to Canada’s present economic system, up from 65 %.

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And the variety of Canadians who see oil and fuel as important to the nation’s future economic system has elevated to 57 per cent this yr from 45 per cent in August 2021.

“The large factor that stands out to me is the expansion in Canadians who say that oil and fuel are necessary to Canada’s present — and future — economic system,” mentioned Monica Gattinger, chair of the Optimistic Power Analysis Program.

“It actually highlights that Canadians are very pragmatic and balanced in relation to points round vitality.”

Gattinger mentioned numerous elements are doubtless influencing public attitudes, such because the warfare in Ukraine focusing extra consideration on vitality safety, reliability and affordability.

Timelines are just one consideration in relation to approving new tasks and establishing investor confidence – readability on regulatory guidelines and steps to make sure acceptable neighborhood involvement are additionally required, she added.

“Canadians see that the coverage and regulatory framework . . . hinders the nation’s potential to get tasks constructed,” Gattinger mentioned.

“A part of the issue is the query of timeliness. However one other massive a part of the issue is readability of the principles and predictability of the decision-making course of.”

Chris Varcoe is a Calgary Herald columnist.

cvarcoe@postmedia.com