The Alberta Court of Appeal has ruled the federal government’s Impact Assessment Act is still unconstitutional, following a second court challenge of the federal legislation.
The act, otherwise known as Bill C-69, was first passed by the Liberals under former prime minister Justin Trudeau to set out a process to review the environmental, economic, health and social effects of proposed projects like ports, mines and pipelines.
In a 4-1 decision issued Friday, the court said even though Ottawa modified the law after the Supreme Court struck down much of it in 2023, the new version still infringes on provincial jurisdiction.
The Court of Appeal found that, among other things, the act still gives Ottawa the power to stop a project in provincial jurisdiction if it has even the smallest impact on federal jurisdiction.
“While Parliament may have the power to create an impact assessment scheme that complements existing regulation in environmental matters, the (Impact Assessment Act) creates great uncertainty due to the potential for previously unpronounced standards to apply to designated projects,” the court wrote.
“This merely exacerbates the concern that a federal assessment scheme might enable the federal government, on the pretext of some narrow ground of federal jurisdiction, to conduct a far-ranging inquiry into matters that are exclusively within provincial jurisdiction.”
The court said while some of the changes Ottawa made to the previous version of the act weren’t constitutionally problematic, the law still gave Ottawa overly broad powers in areas of provincial jurisdiction.
“The decision maker may regulate the project causing the impacts through imposition of conditions and followup programs, or indefinite prohibitions on entire projects and matters within provincial jurisdiction rather than confining oversight to federal effects caused by the project,” the court wrote.
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Ontario and Saskatchewan both backed Alberta’s legal challenge.
The Impact Assessment Act has been staunchly opposed by oil and gas industry players and critics such as federal Conservative Leader Pierre Poilievre.
Former Alberta premier Jason Kenney dubbed it the “no more pipelines act.”
Alberta Premier Danielle Smith said on social media Friday that the ruling was “yet another big win for Alberta.”
“I’m calling on the federal government to accept this ruling, refrain from yet another appeal, and immediately work with Alberta and the other provinces to clean up this flawed Trudeau-era legislation once and for all so it no longer inhibits economic development in our country,” she said.
Friday’s ruling comes as Ottawa and Alberta are partnering on a new oil pipeline to the West Coast.
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Earlier this month, the Pacific Link pipeline project became the first to receive a national interest designation under Ottawa’s new Building Canada Act.
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Ottawa fast tracks ‘Pacific Link’ pipeline, designates as project of national interest -
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Alberta separatists skeptical over Pacific Link pipeline designation -
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B.C. First Nations raise concerns over Pacific Link pipeline -
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First Nations, environmental groups question Pacific Link pipeline consultations -
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Pipeline receives national interest designation -
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Business News: Pipeline designation
And while the Building Canada Act gives Ottawa the power to skirt a dozen federal laws to help move hand-picked projects forward, critics like Poilievre have long called for the Impact Assessment Act to be repealed.
Through the newly tabled Bill C-39, Ottawa is trying to transfer the assessment process for pipeline and energy transmission projects from the Impact Assessment Agency of Canada to the Canada Energy Regulator.
The federal government has said it has been told by industry that the level of expertise on energy projects that existed at the Canada Energy Regulator couldn’t be found at the Impact Assessment Agency.
Ottawa has said the Canada Energy Regulator will still be bound by the provisions of the Impact Assessment Act — which the Alberta Court of Appeal now says is unconstitutional — when carrying out its reviews.
In a statement, the office of federal Environment Minister Julie Dabrusin said the government is reviewing the decision and considering next steps.
”To position Canada for long-term prosperity in a rapidly changing global economy, the Government of Canada is moving forward to build at a pace not seen in decades. The (Impact Assessment Act) is fundamental to the advancement of this work,” wrote press secretary Amy Falkner.
”The (Court of Appeal) opinion does not change our commitment to engage all provinces in the spirit of co-operative federalism.”
This report by The Canadian Press was first published Oct. 9, 2026.
— With files from Lauren Krugel in Calgary.
Laurie weston
October 10, 2026 at 4:04 pm
Excellent Comment!!
While this has little to do with this story, this could be one of the most important issues facing our country. Are we slowly rolling towards a major Constitutional Crisis? Unelected Judiciary are slowly replacing our elected officials as the rulers of this country.
Many on the left cry that the Not Withstanding clause and its use are unconstitutional, it is in fact a section (33) of the constitution. The Constitution has no real mechanism for dispute settlement, so it had to be included for the Provinces to approve it.
That is what we are stuck with. :(
Now imagine if, one day the Supreme Court rules it is to be deleted?
Massive Constitutional Crisis!
At least for now we have a Lawyer as Governor General. But which side would she choose?
What a surprise. Trudeau’s Bill C 69 the “no pipelines for you!” bill is found unconstitutional – again. Now he’s branching out and going into show business which is fitting as that’s all the clown was good for in the first place.
If Ottawa apeals it again, it tells us that Carney and Friends have not changed their parties previous desire to shut down the petroleum industry and go to the unworkable Green Energy model. No matter what it does to the Canadian economy.
As long as the Federal government has control over everything.
Do all governments have the right to the NOTWITHSTANDING clause? Over reaching courts will see more and more use of the clause as they become more activist, social political and less in tune with the will of the population and fossilize the activism of the Justin decade of disaster.
Carney will try to blame C-69 and C-48 on Trump. Liberals did much harm to Canadas economy with these 2 flawed laws.
@Victor Wong. I agree the law needs to be amended (again) or scrapped. You are correct, Carney is keeping the act for partly political purposes. He is though trying to balance the environment and economy. It is clear though the economy will win though, and whatever it takes will be done to get the pipeline built. I speak as a person who used to oppose any more pipelines. The circumstances have changed plus my previous opposition to any more pipelines was incorrect. When facts change, or facts Didn’t know are presented to me, I’ll change my mind. My point is we all should admit we are not infallible. In any case, just get the pipeline done.
Get’er built already!
Ben. The law is still on the books. Carney can rescind it at any time. But he chooses not to for cynical political purposes
Big talking Carny does nothing to get rid of the red tape. It allows him to keep stalling because he has no intention of building a pipeline at all. This guy is a liar. Carny said he will build at speeds never seen before. Are you kidding me? Come election time we will still be talking about building pipelines and we will still have none.
Let’s get on with building a pipeline. The Impact Assessment Act is not relevant any more.
Danielle Smith cheering this ruling against federal overreach while simultaneously overreaching in municipal politics.
And Elbows Up Carney continues to have this law in place.
Hey Federal Environment Minister Julie Dabrusin… you lost again! Take your ball and go home and stop wasting our taxpayer money on this TrudeauCarney unconstitutional fiasco!!!
The LPC is incapable of getting out of its own way