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Alberta

Alberta taking Trudeau government to court to fight unconstitutional Impact Assessment Act

Published

4 months ago

3 minute read

Alberta’s government is again taking the federal government to court over its unconstitutional Impact Assessment Act after they failed to meet the province’s four-week deadline.

Impact Assessment Act lands Ottawa in court again

In October 2023, the Supreme Court of Canada concluded that the Impact Assessment Act was largely unconstitutional. On June 20, 2024, the federal government amended the Impact Assessment Act as part of a large omnibus budget bill. The amendments fail to correct the constitutional deficiencies the Supreme Court of Canada identified with the original legislation and will continue killing jobs and hurting the economy.

Alberta’s government gave the federal government a four-week deadline to remedy the unconstitutional provisions in the amended Impact Assessment Act or face another legal challenge. The federal government has failed to address Alberta’s concerns, showing a continued disregard and refusal to engage with Alberta on the legislation and its flawed amendments. In response, Alberta has referred the constitutionality of the amended Impact Assessment Act to the Court of Appeal of Alberta.

“We have tried working with Ottawa to change their deeply flawed and unconstitutional Impact Assessment Act but we’ve been met with resistance every step of the way. They have chosen to disregard our input, disregard a Supreme Court of Canada decision, and disregard our deadline, so we’ll see them in court. Again. We will not stand down on this issue.”

Danielle Smith, Premier of Alberta

The federal government’s Impact Assessment Act enables Ottawa to derail, delay and interfere in projects that have little or nothing to do with matters falling within federal jurisdiction. Alberta’s government has been consistent in its response and continues to wait for the federal government to engage meaningfully and make meaningful amendments to the legislation.

Alberta’s government asked the federal government to:

  • Eliminate federal encroachment into provincial jurisdiction.
  • Recognize equivalency and the ability to fully substitute our provincial environmental assessment for a federal impact assessment.
  • Create certainty for industry and increase investor confidence by imposing concrete timelines and curbing ministerial discretion.
  • Emphasize that significant adverse effects within federal jurisdiction is the minimum threshold for federal involvement.
  • Streamline the process by scoping projects appropriately and placing some parameters on public involvement.
  • Focus the public interest decision-making process on significant adverse effects within federal jurisdiction and countervailing positive effects.

“The federal government needs to respect the decisions of the Supreme Court and stop making meaningless attempts to bypass the rulings of Canada’s highest court. The courts agreed with Alberta in the first legal challenge, and we are prepared to fight as many times as is necessary to defend the rights of Albertans against this blatant overreach.”

Mickey Amery, Minister of Justice and Attorney General
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This is a news release from the Government of Alberta.

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Alberta

Big win for Alberta and Canada: Statement from Premier Smith

Published on April 2, 2025

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Premier Danielle Smith issued the following statement on the April 2, 2025 U.S. tariff announcement:

“Today was an important win for Canada and Alberta, as it appears the United States has decided to uphold the majority of the free trade agreement (CUSMA) between our two nations. It also appears this will continue to be the case until after the Canadian federal election has concluded and the newly elected Canadian government is able to renegotiate CUSMA with the U.S. administration.

“This is precisely what I have been advocating for from the U.S. administration for months.

“It means that the majority of goods sold into the United States from Canada will have no tariffs applied to them, including zero per cent tariffs on energy, minerals, agricultural products, uranium, seafood, potash and host of other Canadian goods.

“There is still work to be done, of course. Unfortunately, tariffs previously announced by the United States on Canadian automobiles, steel and aluminum have not been removed. The efforts of premiers and the federal government should therefore shift towards removing or significantly reducing these remaining tariffs as we go forward and ensuring affected workers across Canada are generously supported until the situation is resolved.

“I again call on all involved in our national advocacy efforts to focus on diplomacy and persuasion while avoiding unnecessary escalation. Clearly, this strategy has been the most effective to this point.

“As it appears the worst of this tariff dispute is behind us (though there is still work to be done), it is my sincere hope that we, as Canadians, can abandon the disastrous policies that have made Canada vulnerable to and overly dependent on the United States, fast-track national resource corridors, get out of the way of provincial resource development and turn our country into an independent economic juggernaut and energy superpower.”

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Alberta

Energy sector will fuel Alberta economy and Canada’s exports for many years to come

Published on April 2, 2025

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From the Fraser Institute

By Jock Finlayson

By any measure, Alberta is an energy powerhouse—within Canada, but also on a global scale. In 2023, it produced 85 per cent of Canada’s oil and three-fifths of the country’s natural gas. Most of Canada’s oil reserves are in Alberta, along with a majority of natural gas reserves. Alberta is the beating heart of the Canadian energy economy. And energy, in turn, accounts for one-quarter of Canada’s international exports.

Consider some key facts about the province’s energy landscape, as noted in the Alberta Energy Regulator’s (AER) 2023 annual report. Oil and natural gas production continued to rise (on a volume basis) in 2023, on the heels of steady increases over the preceding half decade. However, the dollar value of Alberta’s oil and gas production fell in 2023, as the surging prices recorded in 2022 following Russia’s invasion of Ukraine retreated. Capital spending in the province’s energy sector reached $30 billion in 2023, making it the leading driver of private-sector investment. And completion of the Trans Mountain pipeline expansion project has opened new offshore export avenues for Canada’s oil industry and should boost Alberta’s energy production and exports going forward.

In a world striving to address climate change, Alberta’s hydrocarbon-heavy energy sector faces challenges. At some point, the world may start to consume less oil and, later, less natural gas (in absolute terms). But such “peak” consumption hasn’t arrived yet, nor does it appear imminent. While the demand for certain refined petroleum products is trending down in some advanced economies, particularly in Europe, we should take a broader global perspective when assessing energy demand and supply trends.

Looking at the worldwide picture, Goldman Sachs’ 2024 global energy forecast predicts that “oil usage will increase through 2034” thanks to strong demand in emerging markets and growing production of petrochemicals that depend on oil as the principal feedstock. Global demand for natural gas (including LNG) will also continue to increase, particularly since natural gas is the least carbon-intensive fossil fuel and more of it is being traded in the form of liquefied natural gas (LNG).

Against this backdrop, there are reasons to be optimistic about the prospects for Alberta’s energy sector, particularly if the federal government dials back some of the economically destructive energy and climate policies adopted by the last government. According to the AER’s “base case” forecast, overall energy output will expand over the next 10 years. Oilsands output is projected to grow modestly; natural gas production will also rise, in part due to greater demand for Alberta’s upstream gas from LNG operators in British Columbia.

The AER’s forecast also points to a positive trajectory for capital spending across the province’s energy sector. The agency sees annual investment rising from almost $30 billion to $40 billion by 2033. Most of this takes place in the oil and gas industry, but “emerging” energy resources and projects aimed at climate mitigation are expected to represent a bigger slice of energy-related capital spending going forward.

Like many other oil and gas producing jurisdictions, Alberta must navigate the bumpy journey to a lower-carbon future. But the world is set to remain dependent on fossil fuels for decades to come. This suggests the energy sector will continue to underpin not only the Alberta economy but also Canada’s export portfolio for the foreseeable future.

Jock Finlayson

Senior Fellow, Fraser Institute
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