Business groups, Alberta government applaud Supreme Court ruling against federal environmental impact law

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Business groups, energy companies and politicians celebrated a decision Friday by the Supreme Court of Canada that ruled Ottawa's impact assessment law for major project approvals is largely unconstitutional.

The federal Impact Assessment Act, formerly known as Bill C-69, lays out the process for assessing the environmental impacts of major project development in the country and lists activities that would trigger a federal review.Many industry leaders believe it's a roadblock to development of oil and gas infrastructure and other energy-related projects.

In the ruling Friday, five out of seven judges said the Impact Assessment Act is largely unconstitutional, because it seeks to regulate activities that fall within provincial jurisdiction. “If you were considering, say, a petrochemical facility specifically within Alberta, with this decision today, you're feeling you have quite a bit more ability to advance it," he said. "It's an overwhelming positive."

For much of the past decade, Canada's energy sector has complained of lengthy permitting timelines and regulatory uncertainty slowing down everything from major oil pipeline projects to the development of a liquefied natural gas industry in this country. “We have argued throughout the process for regulatory clarity and efficiency, so project proponents can make informed investment decisions on resource development,” Enbridge spokesman Todd Nogier said.

In a statement, Alberta Premier Danielle Smith said the federal impact assessment legislation has been responsible for the loss of tens of billions in investment and thousands of jobs across many provinces and economic sectors.

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