In a 5-2 ruling, the court found that the sections of the Impact Assessment Act (IAA)were unconstitutional due to vague language that could be used to regulate activities within provincial jurisdiction.

The IAA was implemented in 2019 under Bill C-69 and was intended to streamline and expedite the environmental approval process for major projects like mines, oil and gas developments and pipelines.

However, the reach of the IAA was brought into question by the Alberta Government when it filed a constitutional challenge in its provincial Court of Appeal in 2022. The court ruled in Alberta's favour (4-1), prompting the Government of Canada to file an appeal with the Supreme Court.

In the 200+ page decision, Chief Justice Richard Wagner called the IAA "overbroad."

"Even if this court were to accept Canada's submission that the defined ‘effects within federal jurisdiction' are within federal jurisdiction, these effects do not drive the scheme's decision-making powers," wrote Wagner.

Reaction to the ruling

The court's decision was welcomed news to the Premieres of Alberta, Saskatchewan and Ontario, who all voiced their support of the ruling and concern about the Fed's ability to mandate policy on provincial lands.

"Today's court decision significantly strengthens our province's legal position as we work to protect Albertans from federal intrusion into various areas of sovereign provincial jurisdiction," Alberta Premier Danielle Smith wrote in a statement.

The premieres believe some of the IAA was redundant, leading to needless bureaucracy.

"We welcome the decision that confirms what we've been saying all along," Ontario's Premiere Doug Ford said in a statement. "The federal impact assessment process needlessly duplicated Ontario's rigorous and world-leading environmental assessment requirements."

The Mining Association of Canada (MAC) echoed some of this sentiment but ultimately is more concerned about the uncertainty that would arise from implementing a new legislative framework.

"We call on the Government of Canada and Parliament to respond to the Supreme Court of Canada opinion expeditiously to shorten the period of investment uncertainty," the MAC announcement read. "Prolonged uncertainty is a roadblock to building the mines and infrastructure we urgently need to achieve our climate change, supply chain security and critical minerals goals."

The national mining association, with more than 50 members and associates, pointed to the predicament that "some 20 mining projects currently undergoing federal assessment" have been thrust into, as well as several additional projects preparing to enter the assessment process.

"Mining projects are already subject to comprehensive provincial regulatory frameworks that are unique to each province, including environmental assessment processes, environmental protection regulations, permits of general application and regulations, and permits specific to mining," it read.

The statement went on to note that despite the federal government not having jurisdiction over mining on provincial crown land, most new mining projects and major expansions have been subject to the federal IAA and predecessor legislation.

In response to the Supreme Court ruling, the Honourable Steven Guilbeault, Minister of Environment and Climate Change, issued a statement acknowledging the decision.

"The Government of Canada developed the IAA to create a better set of rules that respect the environment, Indigenous rights and ensure projects get assessed in a timely way," said Guilbeault.  We remain committed to these principles. We are heartened that the Supreme Court of Canada affirmed our role on these core principles. We will now take this back and work quickly to improve the legislation through Parliament."