431-00256 (Natural resources and energy)

The Government of Canada thanks the petitioners for expressing their views regarding the Trans Mountain Expansion (TMX) project.

On June 18, 2019, the government approved the TMX project based – in part – on the strong environmental protections that were already in place, as well as those required through the 156 conditions and 16 recommendations outlined by the National Energy Board (now the Canada Energy Regulator). In addition, the potential impact of the TMX project will be further mitigated through other significant efforts such as the historic $1.5 billion Oceans Protection Plan (OPP), as well as the Pan Canadian Framework on Clean Growth and Climate Change.

The government’s approval of the project was also informed by and based on a comprehensive Crown consultation and engagement process with Indigenous peoples and communities potentially affected by the pipeline and marine terminal. These consultations included meaningful two-way dialogue and led to new accommodation measures and conditions to address potential impacts, Section 35 rights and community concerns. This process has since been upheld by the courts.

Canada will continue to engage with Indigenous communities at each and every step of the project in the months and years to come.

Actions to support strong environmental protection and advance collaboration with Indigenous groups include:

• Developing eight accommodation measures that focus on:
  • Strengthening Canada’s long-term relationships with Indigenous groups;
  • Enhancing marine safety;
  • Expanding spill prevention and response capacity;
  • Addressing the cumulative effects of the Project, on both land and water;
  • Protecting fish and fish habitat;
  • Minimizing the impacts of vessel noise on the Southern Resident Killer Whale; and
  • Studying the long-term impacts of the Project on the land.

• Of note, the Salish Sea Initiative is a long-term investment strategy to support eligible First Nations in monitoring and evaluating the impacts of human activities on local marine ecosystems. This accommodation measure responds to concerns about cumulative effects from increased marine shipping. It aims to increase administrative, scientific, technical and monitoring capacity within local First Nations, and empower them to undertake stewardship activities.

• Implementing the National Energy Board’s 16 recommendations will also mitigate impacts from marine shipping. This includes putting in place a program to monitor marine bird populations in the Salish Sea; developing a new regulatory framework for tug escorts in the area; and working through the International Maritime Organization to reduce greenhouse gas emissions from international shipping.

• Co-developing the Indigenous Advisory and Monitoring Committee with Indigenous groups will foster collaborative, inclusive and meaningful Indigenous involvement in the review and monitoring of the environmental, safety and socioeconomic issues related to the TMX project and the existing pipeline over the project’s lifecycle.

• Other measures will ensure opportunities exist for meaningful Indigenous economic participation in the TMX project. In fact, engagement with Indigenous groups has been ongoing since July 2019 to pursue opportunities that support the economic development of Indigenous communities in keeping with the spirit of reconciliation.

• Under the Canada Energy Regulator Act, the project is subject to a detailed route approval process, which determines the routing within the 150-metre right-of-way. Through this process, landowners and other affected parties along the corridor can make their concerns known regarding such things as the specific route, construction methods, or the timing of construction.

As of June 4, 2020, over 86% of the detailed route for the TMX project has been approved. The Canada Energy Regulator continues to work with Trans Mountain Corporation (TMC) and affected parties to finalize the remainder of the route through the B.C. Interior and Fraser Valley.

• The government also continues, through the OPP, to enhance emergency preparedness and response capabilities by supporting and conducting wide-ranging research into how diluted bitumen and other petroleum products behave in marine environments.
• Additionally, Canada’s Ship-Source Oil Spill Preparedness and Response Regime is aimed at protecting marine environments and communities against pollution discharges from ships and oil-handling facilities. It has three distinct aspects:
  • Prevention: avoiding accidents and pollution incidents;
  • Preparedness and response: being ready and able to quickly and effectively respond to a pollution incident; and
  • Liability and compensation: based on the polluter pays principle.

The regulatory framework of this Regime is built on international and domestic cooperation, and is supported by more than 100 regulations enabled by almost 30 Acts, as well as international agreements and commitments.

While the government’s approval of the TMX project reflects its commitment to environmental protections and Indigenous partnerships, this expanded pipeline also serves a strategic national interest and represents a clear economic opportunity – now, and for years to come.

For example, approximately 4,900 workers have been hired to date as construction has begun in both Alberta and British Columbia. When completed, the project will also support jobs at the Parkland Refinery in Burnaby, B.C ., where product carried by the pipeline will be refined locally, and help satisfy domestic demand.

Indigenous peoples will also benefit from new jobs and business opportunities through the impact benefit agreements they have signed with the proponent. Indeed, as of February 2020, the TMC had signed nearly 60 such agreements – valued at over $500 million – with Indigenous groups.

Greater access to tidewater for Canada’s petroleum sector will also support existing workers and their families while opening new international markets for Canadian oil producers. At present, 99 percent of Canada’s exports of conventional resources are sold in the United States — often at large discounts. The TMX project will ensure Canada receives a full and fair price for one of its most valuable resources.

Finally, it is estimated that the TMX project will generate $73 billion in increased revenues for oil producers and governments over the first 20 years. This new wealth and revenue can be invested in the clean jobs, technologies, and infrastructure of the future — and ensure Canadians benefit from opportunities emerging in a rapidly changing economy. In fact, the Government of Canada has pledged that all new corporate tax revenues, as well as all profits earned from the sale of the TMX project, will be invested in the clean energy projects that will power Canadian homes, businesses, and communities for generations to come.

In all of these ways, the TMX project will support economic prosperity, enhance environmental protections and advance Indigenous participation.