Ottawa, Alberta reach prospective agreement on major project assessments

Alberta Premier Danielle Smith speaks about the prospective agreement on major project reviews with Ottawa and the deadline for the carbon pricing agreement.

EDMONTON — EDMONTON — Ottawa and Alberta have reached a prospective deal that they say will see major projects be approved more efficiently.

In a joint announcement Friday the two governments said the deal will bring a “one project, one review” approach to addressing the broader impacts of these projects, including on the environment.

A draft version of the deal says projects that fall under Alberta’s jurisdiction -- namely in the non-renewable resource sector -- will rely on the provincial regulatory process, and Alberta’s process will be integrated with Ottawa’s for projects involving federal land and jurisdiction.

“Canada and Alberta are committed to improving efficiency of these assessment and permitting processes, which is critical to increasing regulatory certainty and to attracting investment in major projects and enhancing economic resilience while ensuring environmental protections and Indigenous Peoples’ rights are respected,” the deal says.

Alberta Premier Danielle Smith says in a news release that the agreement is a meaningful step forward and “removes the need for federal approvals of projects that are squarely within the province’s jurisdiction.”

“This will see Alberta projects approved faster, and shovels in the ground sooner,” Smith said.

Prime Minister Mark Carney said in the release that the new agreement is the next phase in the new partnership between Alberta and Ottawa following last year’s landmark energy deal.

“Together, we will build big and build fast to create a stronger, more sustainable, more independent economy for Albertans and all Canadians,” Carney said.

Alberta has long sparred with Ottawa over its laws for energy project regulations.

It challenged the constitutionality of the federal Impact Assessment Act in court and in 2023 the Supreme Court of Canada sided with Alberta in ruling that the act had reached beyond Ottawa’s legislative jurisdiction.

Ottawa, under former prime minister Justin Trudeau, amended the act as a result but Alberta launched a second challenge in 2024, arguing that the changes didn’t go far enough. A hearing for the challenge got underway last month in Calgary.

Friday’s deal acknowledges the ongoing legal fight, and states that Alberta’s participation in the agreement doesn’t mean its position has changed.

The draft agreement also says that by signing on, neither government is ceding its jurisdictions or powers under the law.

Late year’s agreement between Smith and Carney paved the way for a potential Indigenous co-owned pipeline and the clawback of some environmental policies standing in the way, like the proposed emissions cap and tweaks to the West Coast tanker ban.

The two governments are quickly approaching an April 1 deadline to agree on an industrial carbon price as well as methane emissions, as committed to last year. There is also a July 1 deadline Alberta has set for itself to submit plans for the pipeline to Ottawa’s major projects office.

Alberta’s news release Friday said negotiations on methane and a new industrial carbon price are ongoing and that it’s confident the two sides will come to an agreement that spurs further oil and gas production in the province.

The two governments say Friday’s agreement is expected to be finalized in the coming weeks after collecting public feedback.

Jack Farrell, The Canadian Press

With files from Lisa Johnson in Edmonton and Lauren Krugel in Calgary.