Lower Churchill environmental OK facing court challenge

Two environmental groups say they will challenge Ottawa's endorsement of the Lower Churchill hydro project.

Grand Riverkeeper Labrador Inc. and Sierra Club Canada — represented by lawyers for Ecojustice — filed a judicial review application with the Federal Court in December.

The groups contend that a joint federal-provincial environmental review panel’s assessment was unlawful and incomplete. They want the matter to go back to the panel before the megaproject is allowed to proceed.

On Thursday, the federal and Newfoundland and Labrador governments announced that the Muskrat Falls power generation plan had passed the environmental review process.

Ottawa concluded the benefits of the project outweigh the potential risks.

"The government of Canada has determined that the expected significant energy, economic, socio-economic and environmental benefits outweigh the ‘significant adverse environmental effects’ of the project that have been identified in the panel report," the federal response to the panel report noted.

But the environmental groups are now seeking a court order to block the feds from issuing permits that would allow the project to proceed, or provide Nalcor Energy will any financial guarantees until a full assessment is completed.

They also plan to ask the court to overturn Ottawa’s endorsement of the project.

"We want the panel to finish the job it was tasked to do, and until that happens, we believe the federal government does not have the legal right to support the project with permits or funding," Ecojustice staff lawyer Lara Tessaro said in a press release.