OTTAWA — Energy and Natural Resources Minister Tim Hodgson announced on Monday that the federal government is close to clarifying its position on the West Coast oil tanker ban. This legislation, which restricts tankers from carrying more than 12,500 metric tons of crude oil along the Northern coast of British Columbia, was enacted in 2019 under former Prime Minister Justin Trudeau. It has faced significant criticism from the Alberta government.

Hodgson made these comments during a session with the House of Commons committee on natural resources. He was responding to inquiries about the status of the tanker ban. "We have been talking with that potential proponent, the Government of Alberta. We have been working on, as has been widely reported, a memorandum of understanding. That is a work in process right now," Hodgson stated. He added, "I think we are getting close to a place, and when that gets done we’ll have some more clarity."

The remarks come as Ottawa is finalizing a memorandum of understanding with Alberta that may include plans for a new oil pipeline. British Columbia Premier David Eby has urged the federal government to maintain the tanker ban. Hodgson has previously indicated that any pipeline project through British Columbia would require support from both the provincial government and First Nations.

Currently, no companies have expressed interest in constructing an oil pipeline from Alberta to British Columbia. However, Alberta Premier Danielle Smith has announced her government’s intention to submit a proposal to the Major Projects Office by next spring. Smith described the potential agreement with the federal government as a "grand bargain," which would advance the proposed Pathways alliance carbon-capture project alongside the oil pipeline initiative.

During a visit to Ottawa last month, Smith also expressed her willingness to strengthen Alberta’s industrial carbon price. This follows Prime Minister Mark Carney's decision to cancel the consumer carbon price last spring, while committing to enhance the industrial carbon price, which is more effective in reducing greenhouse gas emissions than the consumer fuel levy. Carney has not yet detailed how this industrial price will be strengthened, but the recent federal budget included a commitment to address this issue.