CEPA key messages: Federal Court of Appeal ruling on the Trans Mountain Expansion Project

30 AUGUST 2018

Key messages: Federal Court of Appeal ruling on the Trans Mountain Expansion Project

Today the Federal Court of Appeal released its decision on a case involving a series of lawsuits aimed at stopping the Trans Mountain Expansion Project (TMEP). The nearly two-dozen groups involved in the suit, which included First Nations, environmental groups, and the cities of Vancouver and Burnaby, asked for the court to overturn the Order in Council approving the project.
Alberta and British Columbia were granted intervenor status on the project, with B.C. supporting the challenge and Alberta not in support.
The Federal Court of Appeal decision can be found here.

These are preliminary, the decision itself is 265 pages and we have not fully studied all implications.
• While it is up to Trans Mountain’s owner to determine what the decision means for the future of TMEP, CEPA is concerned that this decision by the court, combined with ongoing concern about Canada’s competitiveness, may have a chilling effect on the willingness of proponents to undertake major projects, or investors to fund them.
• We encourage the Government of Canada to act quickly to rectify this situation by addressing the deficiencies identified by the Federal Court of Appeal. We are confident the strong commitment the Government of Canada has shown to advance this project will continue.
• Trans Mountain did everything required of them for the project to proceed. It’s very unfortunate that the Order in Council has been quashed for reasons outside Trans Mountain’s control.
• Global investors are watching Canada to see if projects can be completed in a reasonable amount of time, and that the system in place supports the development of major infrastructure projects.
• Today’s announcement highlights the need for clarity on the standard of indigenous consultation that must be met for major projects to proceed.

• Twinning the Trans Mountain Pipeline will inject $7.4 billion into Canada’s economy.
• By increasing Canada’s capacity to get resources to market, producers will see $73.5 billion in increased revenue over 20 years.
• Federal and provincial governments will see $46.7 billion in additional taxes and royalties from construction and 20 years of operation, higher producer revenues and additional tanker traffic.
o British Columbia receives $5.7 billion
o Alberta receives $19.4 billion
o The rest of Canada shares $21.6 billion
• Municipal tax payments (not adjusted for inflation) total $922 million to BC and $124 million to Alberta over the first 20 years of expanded pipeline operations.
• Canada will earn approximately $3.7 billion more a year for our oil as a result of selling it to international markets
• During construction, the project will generate 15,000 jobs per year, followed by the equivalent of 37,000 direct, indirect and induced jobs per year of operations


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