ENVI meeting 25 · 2026-02-12 — Committee Evidence — LegisWatch

Summary

The committee was studying proposed amendments to the Canadian Environmental Protection Act, 1999 (CEPA) contained in part 5, division 42 of Bill C-15, and heard from Minister of Environment and Climate Change Julie Dabrusin, along with officials Megan Nichols, Stephanie Lane, and Alison McDermott.

Megan Nichols, Assistant Deputy Minister of the Environmental Protection Branch, addressed questions on the industrial carbon pricing system, noting that a discussion paper released in December sought input on parameters for an updated benchmark, including appropriate emissions thresholds, and that the department is reviewing comments and consulting with provinces and stakeholders to ensure the system effectively incentivizes decarbonization investments.

Stephanie Lane, Executive Director of Legislative Governance, explained that the proposed amendments would remove the five-year statutory limit on administrative and equivalency agreements to reduce administrative burden and allow case-by-case durations, while clarifying that another government's provisions must be "equivalent in effect" to codify existing practice. She noted that the Environmental Protection Tribunal amendments are purely administrative, formalizing an entity operating since 2019 without changing any powers or responsibilities.

Alison McDermott, Assistant Deputy Minister of Strategic Policy and International Affairs, stated that the climate competitiveness strategy confirms the implementation of the clean electricity tax credit and expands eligibility for clean technology and manufacturing tax credits, but she could not yet quantify the emissions impact of the Canada-Alberta agreement as specific discussions are ongoing.

During debate on a Conservative motion to study the federal government's plastic manufacturing policy, the committee adopted amendments to narrow the study to one meeting on the implementation and impacts of the single-use plastics prohibition regulations and the suspension of the export ban, taking into account scientific evidence on plastic pollution, and to remove the requirement for the minister to appear. The motion as amended was adopted.

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Witnesses · 3

Megan Nichols

Assistant Deputy Minister, Environmental Protection Branch, Department of the Environment

Opening remarks

Thanks very much for the question. Certainly, the discussion paper was put out in December and recently the comment input period closed. We're just in the process of reviewing all that input. At the same time, we've been talking to provinces, territories and stakeholders to get their views. The very intent of the discussion paper is to solicit input on the parameters for an updated carbon pricing benchmark. Carbon pricing is a pillar of our approach to climate change, but there's a recognition that it could be working more effectively in terms of making sure that it's actually incentivizing the investments in decarbonization that are intended. We are seeking input on what the appropriate threshold is. The one thing that is different is that when the fuel charge was in place, all facilities were subject to some kind of carbon price, whether it was the fuel charge or industrial pricing. It's really about making sure that industrial pricing continues to cover a broad range of emissions.

Full testimony ↗

Stephanie Lane

Executive Director, Legislative Governance, Department of the Environment

Opening remarks

The statutory changes to the Canadian Environmental Protection Act will simply remove the five-year mandatory time frame. There were already protections in the act that set out a series of steps that the government had to take in advance of finalizing an equivalency agreement and making an equivalency order, which stands down the provisions of a CEPA regulation. Those agreements are negotiated with provinces and territories. In some cases, that five-year or six-year time frame, or any sort of time frame, might be appropriate, and that would be included in the agreement. The agreements also include provisions that speak to a mandatory review period and things like that. Those provisions about how the parties will come to an agreement—

Environment and Sustainable Development

Summary

Witnesses · 3

Bills mentioned