In a significant legal development, the Supreme Court of Canada (SCC) ruled on October 13, 2022, that a critical portion of the Federal Impact Assessment Act (IAA) is unconstitutional. More specifically, the decision focused on the “Designated Projects” component of the IAA and the related Physical Activities Regulations. This part of the legislation will now be struck out, fundamentally altering the federal environmental regulatory landscape. The decision was clarified in the case Reference re Impact Assessment Act. Full details available here.
The SCC’s majority finding determined that the attempt by the federal government to exert control over certain specific projects from an environmental impact perspective was overstepping the boundaries of constitutional law. This decision will likely be of considerable import to legal practitioners working both in the sphere of governmental regulations and corporations, as well as those whose operations may touch upon environmentally significant activities.
The landmark ruling has further illuminating the ongoing complexity of jurisdictional issues surrounding environmental protection. The means of allocating jurisdiction over such matters has been a recurrent thorny issue, as both federal and provincial authorities seek to regulate concurrently.
The ruling showcases the need for further legal adaptability for corporations and governmental bodies, particularly in developing and executing green initiatives. It also cements the importance of proper legal consultation when dealing with matters of governmental authority and constitutional law.
While details of the full ruling will be further interpreted and disseminated in the coming weeks, it is clear that the SCC’s decision plays a significant role in framing Canada’s legal perspective on environmental governance moving forward.