The federal government will not appeal an Alberta Court of Appeal decision that found parts of the Impact Assessment Act remain unconstitutional. Instead, Ottawa says it will amend the legislation, although the timing and details of those changes have not yet been confirmed.
The Alberta Court of Appeal ruled in October 2026 that the act still infringes on provincial jurisdiction. The court found that the law continues to allow the federal government to halt projects that fall under provincial authority. It also flagged uncertainty over standards for designated projects that have not been published. The Supreme Court of Canada had already struck down much of the law in 2023. Ottawa then modified the legislation in response, but the latest ruling indicates those changes did not resolve the constitutional problems.
Environment Minister Julie Dabrusin's office confirmed that no appeal will be filed. Press secretary Amy Falkner said amendments will come « in due course ». In the meantime, the Impact Assessment Agency will work with project proponents on an interim basis, which means companies seeking approval will continue to navigate the existing framework while the government prepares its revisions.
The proposed changes are tied to Bill C-39, which is currently before Parliament. The bill aims to cut project review times, a goal that has been central to the debate over the act since it was introduced. It would remove pipeline and power line reviews from the Impact Assessment Agency, and move nuclear and uranium reviews to a different regulator. Pipeline reviews would go to the Canada Energy Regulator, while nuclear projects would fall under the Canadian Nuclear Safety Commission. Those regulators would still be bound by the provisions of the act that the courts have struck down, a point that leaves the central legal questions unresolved.
Alberta Premier Danielle Smith has urged Ottawa to accept the ruling and clean up the legislation to support economic development in the province. The act, also known as Bill C-69, has drawn sharp criticism from opponents who have dubbed it the « no more pipelines act ». The oil and gas industry strongly opposes the law, and the Conservatives led by Pierre Poilievre have called for its full repeal rather than amendment.
The dispute has placed the federal government between two competing demands. Provinces with large resource sectors want faster and more predictable approvals, while the courts have repeatedly found that the federal approach overreaches into areas of provincial responsibility. Whether Bill C-39 and the promised amendments can satisfy both the courts and industry will likely determine how quickly major energy and infrastructure projects can move forward in Alberta and across the country.
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