Alberta, Ottawa agree on deal that would see province front its own major project reviews

Ottawa and Alberta have reached an agreement that will see the province take control of regulatory approvals for its major projects, something they say will deliver those projects more expeditiously.

In joint announcements on Friday, Prime Minister Mark Carney and Alberta Premier Danielle Smith characterized the deal as the "next phase" in the relationship between the province and the federal government.

"Together, we will build big and build fast to create a stronger, more sustainable, more independent economy for Albertans and all Canadians," Carney wrote in a release.

In a post on X, Smith wrote that the deal was the "first milestone" the province needed to achieve under its memorandum of understanding signed with the federal government last year.

"The deal reached today reduces regulatory uncertainty, speeds up approvals, and puts Alberta in the driver’s seat so we can get pipelines and large projects approved and built faster," Smith wrote.

Under the agreement, projects that fall under Alberta's jurisdiction would rely on the provincial environmental and impact assessment process. If projects include federal work or are on federal land, Ottawa would blend Alberta's process into the federal review, if applicable.

In the event that both federal and provincial assessments apply, the agreement says regulators would work together to develop a single decision to minimize duplication.

The agreement also addresses Indigenous consultation.

When a proposed project is primarily under provincial jurisdiction, Canada will recognize Alberta as best placed to consult with Indigenous peoples through its own consultation policies and practices, the agreement says.

Both governments say they remain committed to respecting Indigenous rights under Section 35 of the Constitution and ensuring Indigenous participation in the assessment process.

For many years, the Alberta government has been a vocal critic of federal legislation concerning project approvals. The Impact Assessment Act, which came into force in 2019, is often referred to by those in the oil and gas industry (and by a former premier) as the "no more pipelines act."

Alberta is currently challenging the law in court.

"The parties acknowledge that Alberta is challenging the constitutionality of the IAA, which is a matter before the courts," the agreement reads. "By entering into this agreement, Alberta does not acknowledge the IAA is constitutional."

Mount Royal University political science associate professor Lori Williams said Friday's announcement addresses one of Alberta's many long-held grievances with Ottawa.