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Alberta Court Rules Impact Assessment Act Still Unconstitutional

The decision creates legal uncertainty about federal power to review provincially regulated energy and resource projects.

Overview

  • The Alberta Court of Appeal issued a 4–1 reference opinion on Friday that the amended Impact Assessment Act still intrudes on provincial jurisdiction by allowing Ottawa to halt provincially regulated projects over minimal federal impacts.
  • The court said the law could permit broad federal inquiries into matters normally handled by provinces and that some Ottawa changes did not fix the constitutional problem.
  • Justice Kevin Feehan dissented, arguing the 2024 amendments addressed the Supreme Court’s earlier concerns, and the court’s opinion leaves the act in force rather than formally striking it down.
  • The ruling directly conflicts with federal moves this month, including the Pacific Link pipeline national-interest designation under the Building Canada Act and Bill C-39, which would move pipeline reviews to the Canada Energy Regulator while Ottawa says it will follow IAA rules.
  • The decision raises tangible risks to project timelines, investor certainty and federal-provincial relations and sets the stage for further legal and political steps as governments decide whether to appeal or negotiate changes.