Regulatory

Both the Governments of British Columbia and Saskatchewan unveiled their respective 2024-25 Budgets. British Columbia’s funding is directed towards transitioning to a low-carbon economy, while Saskatchewan’s focuses on achieving a net-zero emissions electricity grid by 2050, supporting cleantech startups, and bolstering the energy and mining sectors.

The federal government is opening consultation and engagement activities for GHG Emission Reduction Targets, Right to Healthy Environment, and Design Options for Clean Electricity.

Effective 15 April 2024, industry applicants planning projects on Treaty 8 Lands must incorporate new planning and mitigation measures outlined by the BC Energy Regulator and Treaty 8 First Nations. Proponents will be required to submit additional documentation demonstrating adherence to these measures as part of their application, and some measures may necessitate pre-application planning and investigations based on project specifics.

The Federal Government announced its regulatory framework for capping emissions in the oil and gas sector – a national cap-and-trade system that claims will set emissions limits without restricting production. The framework proposes to cap 2030 emissions at 35-38% below 2019 levels to support the government’s objective of reaching net-zero emissions by 2050.

The Alberta Energy Regulator is set to implement enhancements to the OneStop application tool for Water Act applications, focusing on water licensing and reporting. These updates are slated to be in effect from February 22, 2024. Operators are strongly encouraged by the AER to submit WURS monthly and annual reports before January 31, 2024, to mitigate potential reporting issues during the system’s introduction.

The Supreme Court of Canada released its judgment in consideration of the constitutionality of the federal environmental assessment scheme under the Impact Assessment Act (IAA), enacted by Parliament in 2019. It is expected that this ruling will fundamentally alter the scope of federal assessment and decision-making over the vast majority of major projects that are located wholly within a province, such as critical minerals mines, upstream oil production (including oil sands), and pipelines.

Canada pledged to surpass its methane emission reduction target in the oil and gas sector, aiming for a reduction of at least 75% from 2012 levels by 2030. However, this commitment raised concerns from the Alberta Minister of Environment and Protected Areas, who questioned the constitutionality of such a policy that could significantly impact the oil and gas industry without sufficient consultation.

The Federal government released the Draft Clean Electricity Regulations to support developing a clean electricity grid with the goal of achieving economy-wide, net-zero greenhouse gas emissions by 2050. The draft regulation is designed to push Canada’s electricity system to use cleaner sources faster and at a greater volume than would be expected without the regulation.

The province of British Columbia released a statement announcing that two-thirds of provincial river basins are in drought level 4 or 5, urging water conservation practices across the province. BC Energy Regulator has taken measures to expand water suspensions to multiple watersheds, and more protection orders to water licensees may be imminent if drought conditions worsen.