We recently
commented on one of the two key bases for the Federal Court of Appeal's ruling last week
that quashed the Federal Government's approval of the Trans
Mountain Expansion Project (the "TMEX") –
specifically, Canada's failure to meet its duty to consult
Indigenous Nations.
Below we discuss the other key basis for the court's ruling
– namely, that the Governor in Council ("GIC")
unreasonably relied on a materially deficient and flawed report
from the National Energy Board (the "Board") in approving
the TMEX. In particular, the court found that the Board's
report was flawed from the outset due to the Board's failure to
properly carry out the project scoping process, a critical
preliminary stage of the environmental assessment process under the
Canadian Environmental Assessment Act,
2012 ("CEAA 2012"). The court found that the GIC
was "on notice" that the Board's report was flawed,
yet relied on it anyway, rendering its decision to approve the TMEX
invalid.