In the Court of Appeal of Alberta

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In the Court of Appeal of Alberta In the Court of Appeal of Alberta Citation: Reference re Greenhouse Gas Pollution Pricing Act, 2020 ABCA 74 Date: 20200224 Docket: 1903-0157-AC Registry: Edmonton In the Matter of the Greenhouse Gas Pollution Pricing Act, SC 2018, c. 12 And in the Matter of a Reference by the Lieutenant Governor in Council to the Court of Appeal of Alberta under the Judicature Act, RSA 2000, c. J-2, s. 26 _______________________________________________________ The Court: The Honourable Chief Justice Catherine Fraser The Honourable Mr. Justice Jack Watson The Honourable Mr. Justice Thomas W. Wakeling The Honourable Madam Justice Elizabeth Hughes The Honourable Mr. Justice Kevin Feehan _______________________________________________________ Opinion of the Honourable Chief Justice Fraser, the Honourable Mr. Justice Watson and the Honourable Madam Justice Hughes Concurred in by the Honourable Mr. Justice Wakeling Dissenting Opinion of the Honourable Mr. Justice Feehan Reference by the Lieutenant Governor in Council Order in Council 112/2019 Dated/Filed the 20th day of June, 2019 TABLE OF CONTENTS Page I. Introduction ................................................................................................................................. 1 II. The Positions of the Parties ........................................................................................................ 6 III. Overview of the Greenhouse Gas Pollution Pricing Act .......................................................... 7 IV. Relevant Provisions of the Constitution ................................................................................. 10 A. Constitution Act, 1867 ...........................................................................................10 1. Federal Legislative Powers ........................................................................10 2. Provincial Legislative Powers....................................................................10 B. Key Provisions of the Constitution Act, 1982 ........................................................11 1. Additional Provincial Powers ....................................................................11 2. Amendments to the Constitution ...............................................................11 V. History of Prairie Provinces’ Ownership of Natural Resources and Section 92A ................... 12 A. Prairie Provinces and Ownership of Their Natural Resources – A Long Time Coming ...............................................................................................................................12 B. Federal Government Interventions Led to Pressures for Constitutional Reform ..13 C. Constitutional Compromise – Resource Amendment and Opt Out Right .............16 VI. International and Interprovincial Efforts to Address Climate Change ................................... 17 A. International Efforts to Address Climate Change .....................................................17 B. Federal and Provincial Efforts to Address Climate Change ..................................19 C. Alberta’s Efforts to Address Climate Change .......................................................24 VII. References in Other Appellate Courts ................................................................................... 28 A. Saskatchewan Reference ........................................................................................28 B. Ontario Reference ..................................................................................................29 C. Section 92A and Provinces’ Proprietary Rights and the Other References ...........31 VIII. Foundational Constitutional Principles ................................................................................ 31 A. Federalism ..............................................................................................................32 B. Subsidiarity ............................................................................................................34 C. Conclusion .............................................................................................................35 IX. Division of Powers Framework .............................................................................................. 36 A. The Two Stages in a Division of Powers Analysis ................................................36 1. Characterization of the “Matter” of the Challenged Law ..........................36 2. Classification Under Head of Power..........................................................37 3. Importance of Keeping the Two Stages Separate ......................................38 4. The POGG Power ......................................................................................38 X. The National Concern Doctrine ............................................................................................... 39 A. Setting the Scene ....................................................................................................39 B. Clarifying the Scope of the National Concern Doctrine ........................................41 C. Crown Zellerbach and the Test Under the National Concern Doctrine .................45 D. Conclusion .............................................................................................................46 XI. Characterization of the “Matter” of the Act ............................................................................ 48 A. Introduction ............................................................................................................48 B. Characterization of the Matter Prior to this Reference ..........................................48 C. Courts Cannot Pre-Limit Federal Powers if the Act Is Found Constitutional ........49 D. What Is the “Matter” of this Act? ...........................................................................51 1. Introduction ................................................................................................51 2. Purpose of the Act ..................................................................................................52 3. Effects of the Act ........................................................................................55 a. Legal Effects of the Act ..................................................................56 b. Practical Effects of the Act .............................................................62 4. The “Matter” of the Act Is the Regulation of GHG Emissions ..................63 XII. Classification of the Subject Matter of the Act...................................................................... 64 A. Federal Jurisdiction ................................................................................................64 B. Provincial Jurisdiction ...........................................................................................65 C. Conclusions on Classification ................................................................................70 XIII. Section 35 of the Constitution Act, 1982 ............................................................................. 71 XIV. Why the National Concern Doctrine Does Not Apply to the Act ........................................ 71 A. Why the “Matter” Fails the Singleness, Distinctiveness and Indivisibility Criteria ...................................................................................................................72 B. Provincial Inability.................................................................................................75 C. Why the Proposed New Head of Power Is Not Reconcilable with the Division of Powers ...............................................................................................................81 1. Introduction ................................................................................................81 2. Impact of the Regulation of GHG Emissions on Division of Powers .......81 3. Conclusion .................................................................................................84 D. Conclusion on National Concern Doctrine ............................................................85 XV. Conclusion............................................................................................................................. 85 _______________________________________________________ Opinion _______________________________________________________ I. Introduction [1] Calls to action to save the planet we all share evoke strong emotions. And properly so. The dangers of climate change are undoubted as are the risks flowing from failure to meet the essential challenge. Equally, it is undisputed that greenhouse gas emissions caused by people (GHG emissions) are a cause of climate change. None of these forces have passed judges by. The question the Lieutenant Governor in Council referred to this Court though – is the Greenhouse Gas Pollution Pricing Act, SC 2018, c 12 (Act) unconstitutional in whole or in part – is not a referendum on the phenomenon of climate change.1 Nor is it about the undisputed need for governments throughout the world to move quickly to reduce GHG emissions, including through changes in societal behaviour. The federal government is not the only government in this country committed to immediate action to meet this compelling need. Without exception, every provincial government is too.2 [2] Nor is this Reference about which level of government might be better suited to address climate change or GHG emissions. Or whether a uniform approach is desirable. Or who has the best
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