431-00104 (Natural resources and energy)

The Government thanks the petitioners for expressing their views about Canada’s purchase of the Trans Mountain Corporation (TMC) as well as views on TMC’s Trans Mountain Expansion Project (TMEP).

On June 18, 2019, the Government of Canada approved TMEP by directing the Canada Energy Regulator to issue a Certificate of Public Convenience and Necessity and Environmental Assessment Decision Statement related to TMEP.

The environment and the economy go hand-in-hand. When we create prosperity today, we can invest in the clean jobs, technologies, and infrastructure of the future — and help Canadians benefit from opportunities presented by a rapidly changing economy.

The key to creating prosperity is finding new markets for our businesses to sell their products and services. Nowhere is the need to diversify greater than for our energy sector, where 99 per cent of our conventional resources are sold to one market — and often at large discounts. Canadians understand that we need to open up new international markets, in order to get a full and fair price, support workers and their families, and foster competitiveness.

The Government’s approval of TMEP was based on the confidence that:

• strong environmental protections have been and continue to be put in place, and that the effects of TMEP can be mitigated through conditions and recommendations outlined by the National Energy Board (NEB), as well as measures including the historic $1.5 billion Oceans Protection Plan and the national climate plan.
• consultations with Indigenous peoples involved meaningful, two-way dialogue, which fulfilled the legal duty to consult and helped identify new accommodation measures and conditions to appropriately address potential impacts on Indigenous rights and concerns expressed by Indigenous communities.

On February 7, 2020, TMC announced that the Board of Directors had approved a total cost estimate of $12.6 billion to bring TMEP into service by the end of 2022.  The Government is confident that the TMEP will generate a positive return for Canadians.

TMEP as it stands today is very different from the project that Kinder Morgan estimated in 2017. It has been designed to a higher standard for environmental protection, undergone rigorous consultation with Indigenous groups and will support union jobs in B.C. and Alberta. These enhancements have improved TMEP, ensured that construction proceeds in the right way, and that it will support the Canadian economy today and into the future.

The Government also announced that every dollar the federal government earns from TMEP will be invested in Canada’s clean energy transition. It is estimated that additional tax revenues from TMEP alone could generate $500 million per year once the project has been completed. This money will be invested in clean energy projects that will power our homes, businesses, and communities for generations to come.

In addition, the Government announced that in the coming months it will launch the next phase of engagement with Indigenous groups, which will seek to build consensus on the form of economic participation.

By moving forward with TMEP, the Government is creating jobs, diversifying markets, accelerating Canada’s clean energy transition, and opening up new avenues for Indigenous economic prosperity.