Moved second reading of Bill C-49, An Act to amend the Canada—Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and to make consequential amendments to other Acts.

She said: Honourable senators, I rise to speak today as the Senate sponsor of Bill C-49, the Atlantic Accords amendment act. I will begin my remarks with the acknowledgement that I am speaking on the unceded traditional territory of the Algonquin Anishinaabe peoples.

I am proud to sponsor this bill because it concerns resource development in Canada’s offshore, an issue very close to my heart. I was born in a coastal community, Port de Grave, Newfoundland and Labrador, and I worked in the fishing industry for more than 40 years.

Fishing was the first industry in my province, and it remains a primary industry in Atlantic Canada. It has developed a decades-long history of cooperation and coexistence with key industry players in natural resource development since oil and gas were first discovered in the waters off our shores.

As the global shift to renewable energy projects continues, offshore wind energy projects are poised to become the next frontier in Canada’s offshore for resource development.

I was on the Newfoundland and Labrador Premier’s Economic Recovery Team in 2019. As part of that work, developing an inventory of wind and other renewable energy opportunities in the province was a key recommendation. I am very proud to play a part in continuing this project through the introduction of Bill C-49 in this chamber.

Honourable colleagues, Newfoundland entered into Confederation with Canada on March 31, 1949, at which point the province’s name was Newfoundland. This was officially changed to Newfoundland and Labrador in 2001.

To save honourable colleagues from having to do too much math, this means we are currently celebrating the seventy‑fifth anniversary of Newfoundland and Labrador joining Confederation. I see few better ways to participate in this celebration than to sponsor a bill of such importance to the future prosperity of my province and Nova Scotia, and one that recognizes the contribution of both provinces to the prosperity of the country.

Newfoundland and Labrador and the province of Nova Scotia have both seen the potential that offshore energy holds for their people and their economies become a reality over the past 40 years, but the growth of the energy industry was neither rapid nor easy. Commercial oil reserves were discovered in Newfoundland and Labrador in 1979, but commercial oil production began in 1997.

Twenty-five years later, there are four fields producing 240,000 barrels of oil a day. In terms of GDP, the oil industry in the Newfoundland offshore area currently contributes over $1 billion annually to the Canadian economy. Workers from Atlantic Canada now form one of the most skilled workforces anywhere in offshore energy production.

In order to grow from a potential offshore energy source to a mature offshore energy industry, a legal and regulatory framework was required. This brings me to the existing Accord Acts.

Back in the 1980s, the Government of Canada signed the Atlantic Accords with the provinces of Newfoundland and Labrador and Nova Scotia, signalling a commitment to jointly manage the offshore oil and gas industry and giving provinces the right to treat projects in their offshore areas in much the same way as onshore projects in the rest of Canada for royalty and income tax purposes. History shows that this arrangement worked.

Together, under the Accord Acts, Canada and the coastal provinces of Nova Scotia and Newfoundland and Labrador have built a brand new industry, creating jobs, economic opportunity and one of the most skilled labour forces in the offshore that the world has ever seen.

This bill, like the original accords, is another illustration of an act of cooperative federalism that will help facilitate Nova Scotia’s and Newfoundland and Labrador’s ability to prosper economically and contribute to the federation. Bill C-49 was developed with both provinces at the table, demonstrating the joint-management principles that are at the heart of these accords. If this bill successfully passes in this Parliament, both provinces will introduce and pass mirror legislation in their respective legislatures. This is a key point. The two provinces must be comfortable with every word in this bill to make the process work. Bill C-49 represents the very spirit of collaborative, cooperative federalism and is built on the successful foundation of the offshore Accord Acts.

The legacy of the Accord Acts was their creation of two independent joint federal-provincial bodies with the responsibility of overseeing offshore oil and gas development, the Canada-Newfoundland and Labrador Offshore Petroleum Board and the Canada-Nova Scotia Offshore Petroleum Board.

Over the past four decades, these regulators have developed subject matter expertise in offshore energy development, established settled processes and procedures and earned broad recognition and credibility for shepherding successful and safe developments in a global industry. Bill C-49 aims to broaden the authority of these two bodies by adding the oversight of offshore renewable energy to their mandates. As one of the colourful former premiers of my province would probably say, “This is a no-brainer.” Why establish a new stand-alone regulator for an energy space in the same offshore environment?

Bill C-49 will enable the development of new sources of energy like offshore wind. This offers Nova Scotians and Newfoundlanders and Labradorians a unique chance to get ahead of the curve and tap into a significant and available resource. Not to overstate this, but the Nova Scotia Minister of Natural Resources and Renewables has called offshore wind energy projects the “. . . greatest economic opportunity since the age of sail. . . .”

Now is the moment for us to direct our attention toward these new opportunities, enable projects of national significance to be reviewed and properly assessed under mature and respected processes and provide the people of Newfoundland and Labrador and Nova Scotia with the opportunity to further grow their offshore energy industries and contribute to the economy of the country.

What does this bill do specifically? The amendments in Bill C-49 propose that we amend the existing Canada–Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act to make the following seven changes.

First, the bill would update aspects of the land tenure process for current offshore oil and gas activities so they are aligned with global best practices for wind energy projects and able to keep abreast of the latest technologies. In plain terms, the bill would also provide for the type of land titles needed to facilitate the ownership and financing of the wind energy projects approved in the offshore area.

Second, the bill will leverage the existing legislative framework and expand the mandate of the two existing offshore regulatory boards to include the regulation of offshore renewable energy projects. I have talked about this already. The boards have extensive knowledge and experience in offshore regulation, and updating the existing legislation will ensure that each board can effectively oversee the regulation of offshore renewable energy projects in waters surrounding their respective provinces. This bill will ensure that as energy producers pivot to renewable energy projects in the Nova Scotia and Newfoundland and Labrador offshore areas, they will deal with a known and trusted regulator.

Third, this bill would change the names of the Canada-Nova Scotia Offshore Petroleum Board and the Canada–Newfoundland and Labrador Offshore Petroleum Board to the Canada–Nova Scotia Offshore Energy Regulator and the Canada–Newfoundland and Labrador Offshore Energy Regulator, respectively.

Fourth, this bill specifically recognizes and locates the Crown’s duty to consult with the Indigenous peoples of Canada in the offshore energy regulatory process. Because of the federal‑provincial joint management of these offshore areas, the bill clarifies that the Government of Canada and the provincial governments can rely on the offshore energy boards for the purpose of fulfilling the Crown’s duty to consult Indigenous peoples about proposed projects and accommodate the adverse impacts of any developments.

Fifth, the bill replaces outdated references to the Canadian Environmental Assessment Act, 2012 with references to the Impact Assessment Act.

Sixth, the bill ensures the preservation of the Government of Canada’s commitment to protecting 25% of Canada’s oceans by 2025 and 30% by 2030. The proposed amendments uphold the principles of joint management by ensuring that prohibitions on offshore renewable energy and oil and gas activities in current or proposed marine conservation areas established in the Canada‑Nova Scotia and Canada-Newfoundland and Labrador offshore areas are made jointly by federal and provincial governments.

Finally, the bill will also expand the application of the existing offshore occupational health and safety regime to offshore renewable energy projects. It also extends the regulatory and liability regime for abandoned facilities relating to petroleum‑related works or activities to offshore renewable energy projects.

The bill has already undergone a number of amendments at the Natural Resources Committee in the other place. The vast majority were minor editorial changes to correct typos and ensure consistency throughout. There were also amendments to allow for a separate coming into force of the Impact Assessment Act‑related clauses.

There were more substantive changes made to transboundary hydrocarbon field clauses, to provide more clarity, and an amendment that aimed to address concerns raised by fishers with regard to the submerged land licence issuance process.

Honourable colleagues, Bill C-49 is an essential component of Canada’s continuous efforts to address climate change.

Canada is not alone in expanding the powers of existing regulatory bodies to encompass offshore wind energy regulation. Jurisdictions like the United States, the United Kingdom, Norway and Australia are enacting or have enacted such laws.

Economically, Bill C-49 facilitates a considerable opportunity for Canadian workers and Canada’s economy. According to the International Energy Agency, the offshore wind industry has the potential to reach a market value of $1 trillion by the year 2040.

The Public Policy Forum’s analysis of this opportunity in Atlantic Canada shows us that this bill represents a project of national significance. It is time for Canada to capitalize on this opportunity.

Offshore wind energy is an industry that is ideally suited for Canada’s East Coast. In Newfoundland and Labrador, we would say it’s often “blowin’ a gale.” We have the longest coastlines in the world, and the winds there rival those in the North Sea — where the offshore wind industry was born. Moreover, the offshore area under discussion today is bigger and has better potential than the northeastern coast of the United States, which is also moving ahead with developing its own industry.

We already have highly experienced offshore energy regulators, one of the world’s most skilled labour forces when it comes to working offshore and the ability to scale up the entire supply chain — from manufacturing, to skills training, to our ports.

The worldwide offshore wind industry has experienced a huge growth spurt over the last 12 years. Although offshore wind is relatively new with respect to its adoption around the world, with only 20 nations having implemented it so far, significant strides continue to be made.

The International Energy Agency has said that more and more countries are now in the process of implementing — or have intentions to establish — their own offshore wind farms.

G7 members have pledged to collectively increase offshore wind capacity by 150 gigawatts by 2030.

The U.S. has over 40 projects in development. The EU and the U.K. have over 300. China is rapidly developing its offshore wind capacity, now representing nearly half of all offshore wind generation. If these statistics aren’t blowing you away, then the wind in Newfoundland and Labrador certainly would.

On a serious note, the International Energy Agency’s net-zero emissions scenario sees a drastic increase in wind generation.

Nova Scotia has a target to license five gigawatts of offshore generation by 2030. If Parliament wants to ensure Nova Scotia can make this target better align with the International Energy Agency’s net-zero emissions scenario and better enable the domestic 2050 targets — while attracting investment into offshore wind projects and associated industries, like hydrogen production, and the Canadian economy — it is imperative that we support this legislation so we can develop domestic offshore wind projects now. Doing so will facilitate the economic development priorities of the provinces and territories, allow them to compete with other major economies and drive new industries that will be vital in the net-zero economy.

The Progressive Conservative premier of Nova Scotia, the Honourable Tim Houston, has been clear in his province’s support for this bill. Premier Houston said:

This will transform our economy. . . . The environmental impact is so positive that we have to be leaders on this.

He continued:

Bill C-49 is a necessary first step in unlocking our energy potential. . . .

Nova Scotia’s Minister of Natural Resources and Renewables Tony Rushton testified in committee hearings in the other place:

. . . once Bill C-49 is passed, people will look at this decades from now and say, “Here was a move that made Nova Scotia a capital of renewable energy in the world.”

The Public Policy Forum shows that one potential offshore wind area in Nova Scotia alone could create thousands of jobs, including up to 30,000 construction jobs annually. According to the Government of Nova Scotia, one gigawatt of offshore wind can power roughly 750,000 homes.

We have also heard that the province intends to use offshore wind power to generate hydrogen and ammonia for export in order to meet the need for renewable energy globally. Increasingly, the European nations, like Germany, are turning to Canada and signing agreements with us so they can get access to hydrogen produced in Atlantic Canada.

My province is also eager to support the economic and job creation potential that offshore energy offers the province. A direct reference to Bill C-49 was included in the province’s recently released Hydrogen Development Action Plan.

Liberal Premier of Newfoundland and Labrador, the Honourable Dr. Andrew Furey, has stated:

This pivotal federal-provincial agreement empowers us to take control and fully capitalize on the abundant opportunities presented by the emerging green economy . . . .

He also said:

. . . We continue to support the Government of Canada on Bill C-49 and urge the other federal parties to do the same.

Furthermore, Andrew Parsons, the province’s Minister of Industry, Energy and Technology, testified before the Standing Committee on Natural Resources:

I think it’s very important when it comes to renewable energy that we be able to move forward quickly and efficiently. . . . there’s an excitement within the province regarding the opportunity that comes with our offshore, but there’s also the need to get a strong regulatory framework in place. As a province, we’ve been lucky to have that in place with our offshore oil. We have a great understanding of how this works, how it can work and the opportunities it presents. . . .

Opportunities allowed for once Bill C-49 is adopted will help Newfoundland and Labrador and Nova Scotia to remain economically competitive into the future.

In addition to provincial support, Bill C-49 enjoys support from Indigenous communities. I am pleased to say that Indigenous leaders have shown support for offshore wind projects.

Chief Terry Paul from the Membertou Development Corporation in Nova Scotia attended a committee meeting on this bill and testified:

Traditionally, Indigenous Canadians were not invited to participate in major industry projects. I am proud to say that is changing. When we all work together, great things happen. We truly believe that an offshore wind industry can coexist with other industries in a sustainable manner.

When it comes to Indigenous involvement in hydrogen projects — one of the products that will be created by planned offshore wind energy projects — there are opportunities emerging onshore.

Economic opportunities aside, both the Government of Canada and the Government of Nova Scotia recognize the critical importance of environmental protections and ensuring the long‑term sustainability of the absolutely vital East Coast fishing industry.

While Minister Rushton emphasized the need for this legislation’s prompt approval, he also said that he wanted each project to be vetted carefully to minimize the impact on other sectors of the ocean economy, saying:

Nova Scotia embraces thorough examination to ensure the safe and responsible execution of offshore wind projects, as well as their ability to coexist with other industries and concerns.

As advocates for the fishing industry, working in close collaboration with the provinces, the governments have, together, ensured Bill C-49 gives special recognition to the importance of the fishing industry.

The well-established relationships between the Canada-Newfoundland and Labrador Offshore Petroleum Board, the Canada-Nova Scotia Offshore Petroleum Board, the offshore energy industry and the fishing industry will continue as they have for decades.

This bill clearly demonstrates the government is fully committed to carrying out meaningful engagement with the fishing industry, project developers, governments and other stakeholders as it designs and implements future land tenure and regulatory processes as well as during the review of specific offshore renewable energy projects.

It’s important to note that Bill C-49 provides a variety of tools such as bidding criteria, regulation-making authorities and authorization conditions that will allow governments and regulators to ensure impact mitigation measures are in place.

Furthermore, as I have said, as part of the regional assessments of offshore wind development that are currently underway, Indigenous communities, fishing groups and other stakeholders are having and will continue to have the opportunity to give their input to government on issues related to offshore wind energy development.

We are competing in a global race to develop this industry. Canada is the only G7 country without an offshore wind industry.

Significant offshore energy projects are currently being implemented in the North Sea and off the east coast of the United States, thanks in part to the incentives that were put in place by the Inflation Reduction Act. The United States Department of Energy has estimated that these projects will draw an annual direct investment of $12 billion. As of May of last year, the maximum power capacity of existing and planned American offshore wind energy projects has a collective power capacity of 52,687 megawatts — enough to power about 18 million households, which is 14% of all households in the U.S.

Just for context for honourable colleagues, 1,000 megawatts is equal to 1 gigawatt. I will be using both terms throughout my speech today.

Outside of the United States, other countries aren’t holding back either. Taiwan expects to install over 700 further turbines in the Taiwan Strait by next year to meet its target of 5.7 gigawatts installed by 2025. In Europe, there are over 300 projects in development, and they raised €30 billion for eight new wind farms in 2023.

Honourable colleagues, we need Bill C-49 now in order to allow Canada to benefit from these global investment dollars. Two of Canada’s partners in Europe — Denmark and Scotland — made significant strides in April 2024. First, there was the largest offshore wind tender in Danish history, anticipating the resulting build to generate hundreds of offshore wind turbines, cranking out enough energy for 10 million or more European households, allowing Denmark’s electricity to achieve a status of 100% green, and producing enormous amounts of hydrogen and green fuels for ships and aircraft. In Scotland, we see the first commercial-scale floating offshore wind farm in Europe, having recently received planning permission for the new 560-megawatt project that will stand up as many as 35 new floating wind turbines that will not only provide power to the U.K., but will also provide green power to offshore oil and gas sites.

To once again quote Nova Scotia Minister Rushton:

There are tremendous opportunities for our coastal communities, for our province and for our country. We cannot afford to wait.

Honourable colleagues, I’ll wrap up by saying that now is the time to advance this legislation, showing strong federal support for provincial priorities. Now is the time for Canada to put in place this regulatory regime so that it can join its allies and reap the economic and environmental benefits that come with launching ourselves into the growing international offshore wind energy market. Dr. Peter Nicholson, a native of Nova Scotia and the chair of the board of the Canadian Climate Institute, said it best:

. . . it is quite obvious that we have here a national opportunity of historic proportions, and for that opportunity to come to pass, Canada urgently needs a regulatory framework equal to the unprecedented nature of that opportunity.

To conclude, I will adapt the words of a former premier of my province and say that I believe this bill represents a win-win-win for Canada, Nova Scotia and Newfoundland and Labrador. Thank you, honourable colleagues, in advance for your support of this important and timely bill.

Thank you, Senator Petten, for your speech. Would you take a couple of questions?

Of course, senator.

Thank you. You mentioned marine protected areas, or MPAs — 25% in 2025 and 30% in 2030 — which I believe are incorporated in Bill C-49. You may know, having been involved in a fishery, that fish harvesters are quite sensitive when there is expansion of MPAs into their traditional fishing grounds, as well as into fishing grounds that may not be traditional but may be opportunistic. Has there been — or will there be — consideration for fish harvesters’ rights in the application of this bill?

Thank you for that question. Yes, currently regional assessments are under way, and, of course, a number of fishing interest groups have been involved in those particular meetings. The big part, which is really important under this bill, is that it is jointly managed, so it will be a decision worked through between both levels of government. Any of those considerations and, of course, the regional assessments will be available next year when that report is produced and finished, and they will have input on what that will be.

Thanks for that. You’ll know that, prior to coming to the Senate, I held a position with the Canada-Newfoundland and Labrador Offshore Petroleum Board, so I know a bit about it. I’m a little bit concerned about the provisions of Bill C-69 that were recently deemed unconstitutional by the Supreme Court of Canada. Has provision been made in the legislation to ensure that the unconstitutionality of certain provisions of Bill C-69 are addressed in Bill C-49?

Thank you again. There will be no delay in the coming into force of the amended Impact Assessment Act. This bill is constitutional and will not delay the provinces. The issue that we need to deal with now is this: It is important that both provinces — once we look at Bill C-69 — propose mirror legislation and ensure, as part of their mirror legislation, the ability to introduce the legislation. They will be able to look at that before they can look at new bids and a new process. I think that will cover it off under that bill.

Thank you. Senator Petten, will Bill C-49 cover things other than wind, like tidal and solar power offshore?

That decision will be made by the joint decisions if that comes forward with the bill or with a request, or looking for bidding. Since it is a jointly managed area, they will look at it accordingly.

Senator Petten, you know that I am in favour of this bill, especially for the benefit of our province. However, five years ago, 10 senators from Nova Scotia — so that makes all of us — wrote a letter to our premier, concerned that we did not have any representation of the fishery on the Canada‑Newfoundland and Labrador Offshore Petroleum Board, and that’s a $2 billion per year industry in our province. Can you give us greater understanding about how the fishery will be involved — as someone who spent their life in that space, you would know this well — in the decision-making process of this new regulator?

Under the fisheries, I met with the Fish, Food and Allied Workers Union in Newfoundland and Labrador, and I also met with the Canada-Newfoundland and Labrador Offshore Petroleum Board and Nova Scotia. That was one of the issues that they brought up and were concerned about. In Newfoundland, one of the things they have been doing with the offshore oil is working with a group called One Ocean. They have been meeting and have brought forward some of their concerns.

Also, the big issue that is happening right now — it’s the same thing in Nova Scotia. The Nova Scotia offshore regulators have spent 30 years meeting with different member groups airing their concerns. Currently under way are the regional assessments, which are providing opportunities to listen to what their concerns are and to make sure they are providing their input if there are things that need to be changed before they do their mirror legislation. So, right now, they are looking at that process, and next year they will be reporting on that.

We also found out that in the past, because of my former life, if there was an issue with the fisheries, they have been able to solve it. I know, personally speaking, with my dad in the fishing industry, they lost a number of their crab pots, and it was efficiently paid for through their compensation through One Ocean. So it has been working. I’m sure it will continue. If there are concerns, we should certainly be encouraging them — as I have certainly been doing in my meetings — to ensure that their voices are heard.

Thank you for that, Senator Petten.

I want to build on Senator Wells’ point about tidal power and other sources. In Nova Scotia, one of the challenges we have had with tidal power is bringing the fishery and the regulator together and getting Fisheries and Oceans to actually make decisions.

How might this help with moving ahead efforts around tidal power in a way that is accepted by the fishery itself and generates investment in that great resource that we have, certainly in Nova Scotia?

Yes, I understand that there was a project that was looked at last year in the Minas Basin area, and that was part of a provincial concern. Part of the reason we need a regulatory framework under Bill C-49 is to look at making sure that this process is in place, that whatever comes forward, they can deal with it. It ended up being a provincial issue. It wasn’t jointly managed.

Under this new accord with Bill C-49, the bill will be going through the Minister of Natural Resources. They will look at whatever projects might come forward seeking approval and have joint management between the province and the federal government.

Thank you.

Thank you for that question, Senator Kutcher.

I guess that will come further down the road. This bill is around the regulatory framework of looking at what the potential for renewable energy could look like. As part of that process of consultation, that would be something they would probably look at further down the road. It is not specifically in this bill right now, but it is something they will connect with between the joint management of this offshore energy as it goes further down the road.

Yes. Hopefully, the whole idea of having Bill C-49 is an opportunity to promote the opportunities, including hydrogen and all of the opportunities that come with it. Thank you.

Senator Petten, thank you for your excellent speech. You talked about how this bill will help to unlock Canada’s offshore energy potential. Could you speak a bit more about the environmental impacts, specifically whether this bill will help us achieve the goal of getting to net-zero emissions by 2050?

Thank you, Senator McNair. Nova Scotia has the dirtiest electricity grid in Canada. They are at about 50% with their reliance on coal. Actually, the province has been asking for this legislation now for some time. This bill will provide an opportunity to transition from coal to a clean electricity grid. Also, they are looking at the opportunity to sell it elsewhere, as I indicated in my speaking notes. I think there are a lot of opportunities to look at in that particular area.

Newfoundland has one of the cleanest grids, with maybe over 90%. It is going to be something that we will be looking at trying to change, and it is important for our environment and the life that we live in this country. Thank you.