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Saskatchewan’s justice minister is worried about the effects Bill C-59 could have on oil and gas companies.
The Government of Saskatchewan claimed the federal omnibus bill – which completed its second reading in the senate on Tuesday – includes amendments which could see energy companies hit with millions in fines for advertising their records on sustainability or standing up for the energy sector in general.
Justice Minister Bronwyn Eyre said she’s written to Deputy Prime Minister Chrystia Freeland to express the Saskatchewan government’s “profound alarm” over the bill’s potential impacts.
“The federal government has taken Charlie Angus’ private member’s bill, The Fossil Fuels Advertising Act, and incorporated it into government legislation,” Eyre said in a statement.
“It introduces new liability based on vague, subjective requirements for which a company must carry the full burden of proof.”
The amendments mean energy companies could be subject to penalties if they make a claim about their environmental records “that is not based on adequate and proper substantiation in accordance with internationally recognized methodology, the proof of which lies on the person making the representation.”
The province said energy producers “will face scrutiny unique in the business world” under the new bill, and initial fines of up to $10 million.
Eyre said it amounts to a gag order on energy producers.
Bronwyn Eyre says all options are being considered when it comes to pushing back against Bill C-59. (Mia Holowaychuk/650 CKOM)
“Companies will be intimidated from making any environmental claims or even pursuing positive climate actions, given the unnecessary and excessive risks involved,” Eyre said.
Calling the bill “rushed,” Eyre said the standard outlined in the bill would have “irreparably harmful consequences on Saskatchewan’s businesses and economy.”
The Government of Saskatchewan claimed the amendments will allow environmental activists to bring numerous applications to the Competition Tribunal, which could see companies fined as much as $15 million or three per cent of their gross annual revenues “simply for advertising their sustainability records or defending the energy sector.”
According to the provincial government, “all options” are being considered to push back against the bill, including under the Saskatchewan First Act. That act created a five-member tribunal to assess the specific economic impact of federal regulations, which could be used as evidence in subsequent legal challenges.
Alberta’s environment minister raised similar concerns on Wednesday describing the bill as a “gag order” for the energy sector.