Alberta appeal court again finds federal impact assessment law unconstitutional

The Alberta Court of Appeal ruled 4-1 that Ottawa’s revised Impact Assessment Act still intrudes on provincial jurisdiction. The federal government is reviewing the decision as it pursues changes to energy project assessments and works with Alberta on a proposed West Coast pipeline.

CTV News Edmonton has reported:

The Alberta Court of Appeal has ruled that the federal Impact Assessment Act remains unconstitutional, finding that changes made after a 2023 Supreme Court decision did not resolve its intrusion into provincial jurisdiction. The 4-1 decision, issued Friday, followed a second legal challenge to the federal law, which is also known as C-69.

The court said the act still allows Ottawa to stop a project that falls within provincial jurisdiction if it has even a minimal effect on federal jurisdiction. It found that some of the federal government’s amendments were not constitutionally problematic, but concluded the law continued to grant Ottawa overly broad authority over matters within provincial responsibility.

“While Parliament may have the power to create an impact assessment scheme that complements existing regulation in environmental matters, the (Impact Assessment Act) creates great uncertainty due to the potential for previously unpronounced standards to apply to designated projects,” the court wrote. “This merely exacerbates the concern that a federal assessment scheme might enable the federal government, on the pretext of some narrow ground of federal jurisdiction, to conduct a far-ranging inquiry into matters that are exclusively within provincial jurisdiction.”

The court also said federal decision-makers could impose conditions and follow-up programs on projects, or prohibit entire projects indefinitely, including in areas of provincial jurisdiction. “The decision maker may regulate the project causing the impacts through imposition of conditions and followup programs, or indefinite prohibitions on entire projects and matters within provincial jurisdiction rather than confining oversight to federal effects caused by the project,” it wrote.

The legislation was first enacted by the Liberals under former prime minister Justin Trudeau. It established a process for assessing the environmental, economic, health and social effects of proposed projects, including ports, mines and pipelines. The Supreme Court struck down much of the original law in 2023, prompting Ottawa to revise it before Alberta brought the latest challenge.

Ontario and Saskatchewan supported Alberta’s case. The act has faced strong opposition from oil and gas industry participants and critics, including federal Conservative Leader Pierre Poilievre. Former Alberta premier Jason Kenney called it the “no more pipelines act.”

Alberta Premier Danielle Smith described Friday’s ruling on social media as “yet another big win for Alberta.” She urged the federal government to accept the decision, avoid another appeal and work immediately with Alberta and other provinces to fix what she called flawed Trudeau-era legislation so it no longer inhibits economic development in Canada.

The decision comes as Ottawa and Alberta are working together on a proposed oil pipeline to the West Coast. Earlier this month, the Pacific Link pipeline project became the first project to receive a national interest designation under the federal Building Canada Act. That law gives Ottawa authority to set aside a dozen federal laws to advance projects it selects. Poilievre and other critics have called for C-69 to be repealed.

The federal government has also tabled Bill C-39, which would move assessment of pipeline and energy transmission projects from the Impact Assessment Agency of Canada to the Canada Energy Regulator. Ottawa said industry had told it that expertise in energy projects available at the regulator could not be found at the assessment agency. The government has said the regulator would remain bound by the Impact Assessment Act’s provisions when conducting reviews, despite the Alberta court’s ruling.

Environment Minister Julie Dabrusin’s office said in a statement that the government is reviewing the decision and considering next steps. Press secretary Amy Falkner said: “To position Canada for long-term prosperity in a rapidly changing global economy, the Government of Canada is moving forward to build at a pace not seen in decades. The (Impact Assessment Act) is fundamental to the advancement of this work.” Falkner added: “The (Court of Appeal) opinion does not change our commitment to engage all provinces in the spirit of co-operative federalism.”

The Canadian Press first published the report on Oct. 9, 2026, with files from Lauren Krugel in Calgary. The report was written by Nick Murray of The Canadian Press.