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Report from the Ministerial Panel for the Trans Mountain Expansion Project

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Report from the Ministerial Panel for the Trans Mountain Expansion Project Report from the Ministerial Panel for the Trans Mountain Expansion Project November 1, 2016 Table of Contents MESSAGE FROM THE MINISTERIAL PANEL ����������������������������������������������������������������������������������������������������� 1 DECISION-MAKING IN A DYNAMIC TIME ������������������������������������������������������������������������������������������������������������� 2 Changing Times; Changing Influences ����������������������������������������������������������������������������������������������� 3 Oil Prices ���������������������������������������������������������������������������������������������������������������������������������������������������������������������� 3 Changing Climate — Environmental and Political ���������������������������������������������������������������������������� 4 First Nations Rights and Title ������������������������������������������������������������������������������������������������������������������������� 5 Social Licence ���������������������������������������������������������������������������������������������������������������������������������������������������������� 6 The Ministerial Panel — a Review, not a Replacement ���������������������������������������������������������������� 6 ALBERTA ��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 8 BRITISH COLUMBIA ���������������������������������������������������������������������������������������������������������������������������������������������������������� 13 ISSUES SURVEY ������������������������������������������������������������������������������������������������������������������������������������������������������������������� 23 Marine Impacts ����������������������������������������������������������������������������������������������������������������������������������������������������� 23 Earthquake Zone ������������������������������������������������������������������������������������������������������������������������������������������������� 25 Right Route? Right Product? ������������������������������������������������������������������������������������������������������������������������ 25 Oil by Rail ����������������������������������������������������������������������������������������������������������������������������������������������������������������� 26 Diluted Bitumen ��������������������������������������������������������������������������������������������������������������������������������������������������� 27 Age of Infrastructure ����������������������������������������������������������������������������������������������������������������������������������������� 29 Economic Argument ������������������������������������������������������������������������������������������������������������������������������������������ 29 Climate Change ���������������������������������������������������������������������������������������������������������������������������������������������������� 31 Public Confidence in Regulatory Process �������������������������������������������������������������������������������������������� 33 INDIGENOUS ISSUES ������������������������������������������������������������������������������������������������������������������������������������������������������� 35 PUBLIC ENGAGEMENT: MEETINGS, EMAILS AND QUESTIONNAIRES ��������������������������������������� 42 QUESTIONS ����������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 46 MINISTERIAL PANEL FOR THE TRANS MOUNTAIN PIPELINE EXPANSION PROJECT MESSAGE FROM THE MINISTERIAL PANEL We have been honoured to serve on the Ministerial Panel on the Trans Mountain Pipeline Expansion, reporting to the federal government on what Canadians said was missed in the National Energy Board (NEB) review of the proposed new pipeline from Edmonton, Alberta, to Burnaby, British Columbia. We understood that our process would not be a redo of the NEB review, and we expected significant pushback. Even so, we accepted the challenge because we knew a lot had changed since Trans Mountain first sought approval for the new pipeline — from the decline in oil prices to the new government commitments to more ambitious climate action and to the principles of the United Nations Declaration on the Rights of Indigenous Peoples. We also knew that many people who wanted to participate in the NEB pipeline review were denied the opportunity. We are grateful to those people who engaged. It was a privilege to meet with so many Canadians who were prepared to give up their time to prepare for and present to our panel. We wanted to tell your stories in a compelling way, and we hope that you feel heard. We anticipate that when you read this report, you will be struck even more by the enormity of the decision that is before the federal government. We would like to thank the Honourable Jim Carr, Canada’s Minister of Natural Resources for the opportunity to participate in an important and inspiring dialogue, and we trust that our report will be helpful. Panel Members Kim Baird Tony Penikett Dr. Annette Trimbee 1 MINISTERIAL PANEL FOR THE TRANS MOUNTAIN PIPELINE EXPANSION PROJECT DECISION-MAKING IN A DYNAMIC TIME The Government of Canada has announced its intention to decide, before the end of the year, the fate of Kinder Morgan’s proposal to build a $6.8-billion pipeline to carry diluted bitumen originating in the oil sands of Alberta to a tidewater export facility in Burnaby, British Columbia. Yet, as is so often the case when governments or businesses must make go/no-go decisions on large complicated and expensive undertakings, the conditions that prevailed when the project was first proposed have changed, and many of the circumstances that may affect the need for — and impact of — the project over time are also uncertain. Such is certainly the case in this instance. Since Trans Mountain Pipeline ULC submitted its application to the National Energy Board (NEB) in July, 2013, circumstances have changed dramatically. Oil prices have fallen, governments have been replaced and policies (and laws) have evolved on issues ranging from First Nations rights and title to climate change. The political, economic and environmental conditions that prevailed in 2013, when Trans Mountain asked permission to build the pipeline, were much different by May, 2016, when the NEB recommended that the federal government approve the project as being in the national public interest. At the same time, Canadians have been locked in debate about the processes, policies and staffing of the current NEB. And many, particularly in British Columbia, have asserted that, in its research and deliberations, the NEB left gaps — in knowledge and public confidence — that were so significant that the Board’s recommendation could not, of itself, support a government approval of the Trans Mountain Pipeline project. In light of those two factors — the changing circumstances and public concern about the nature and comprehensiveness of the NEB process — the Government of Canada announced that it would direct three new initiatives before making a decision on the pipeline proposal. First, it commissioned an Environment Canada analysis of upstream greenhouse gas emissions associated with the project, to better understand its climate impacts. Second, the Government of Canada recommitted to ongoing consultation with First Nations whose interests would be affected by the pipeline’s construction and operation. And third, on May 17, 2016, the Honourable Jim Carr, Canada’s Minister of Natural Resources, announced the appointment of a three-member panel to complement the NEB review and identify gaps and/or issues of concern of which the Government should be aware before deciding the fate of the pipeline proposal. This report reflects that panel’s findings. It is based on 44 public meetings attended by more than 2,400 Canadians, of whom 650 made direct presentations to the panel. This included leaders from business, labour and environmental organizations, representatives (including both staff and politicians) from the municipal, provincial and federal levels, academics and other subject area experts. Although not intended as part of the federal government’s concurrent commitment to direct consultation with First Nations, the panel also set aside meetings in each location for direct engagement with Aboriginal peoples, attracting direct input from 22 First Nations, four First Nation organizations and 15 self- identified First Nations presenters. 2 MINISTERIAL PANEL FOR THE TRANS MOUNTAIN PIPELINE EXPANSION PROJECT In preparation for the public meetings, the panel had direct briefings from the proponent, Trans Mountain Pipeline ULC; from the NEB; and from Alberta Premier Rachel Notley. Trans Mountain, whose staff members attended all public sessions, also submitted a series of issue sheets to the panel’s online portal, addressing questions that had been raised during public sessions. Finally, the panel also received and considered more than 20,000 email submissions, as well as an online questionnaire that attracted 35,000 responses (see Public Engagement: Meetings, Emails and Questionnaires). None of these inputs was designed as a statistically significant assessment of public opinion. The panel’s mandate was not to test or build
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