In a 5–2 majority decision, Supreme Court Chief Justice Richard Wagner said the federal government’s Impact Assessment Act has “plainly overstepped its constitutional competence.” The IAA, which passed through Parliament as Bill C-69 and was enacted in 2019, regulates the approval process for major projects like oil pipelines and hydro dams. (The Logic)
Talking point: The decision was viewed as a win by western political leaders and some business organizations, who warn that an overly burdensome permitting process has delayed crucial projects. Alberta Premier Danielle Smith, who has centred her political messaging on a broad-based constitutional challenge to Ottawa’s environmental policies, said she was “very pleased” with the ruling. The Business Council of Alberta, an intervenor on the appeal, called it a “highly positive outcome” that will boost investment and improve project predictability. The Supreme Court ruled against the IAA on the grounds that its project designation scheme intrudes on provincial jurisdiction by giving Ottawa sweeping powers to designate projects to be of federal interest. The Liberal government said it would amend the IAA following the decision.