Canadian Design and Construction Report staff writer
Canada is changing which major projects are subject to federal impact assessments, shifting some pipeline, electricity transmission and offshore renewable energy reviews to the Canada Energy Regulator (CER) while removing certain oil sands and fossil fuel power projects from the federal Project List.
The amendments to the Physical Activities Regulations, announced Sept. 10, affect interprovincial and international pipelines, international power lines, designated interprovincial power lines and certain offshore renewable energy projects that are not regulated by offshore energy regulators.
Those projects will now be reviewed through a comprehensive assessment process led by the CER rather than through an integrated review panel assessment.
The federal government says the changes are intended to reduce duplication and make project reviews more predictable while maintaining environmental assessment requirements and consultation with Indigenous Peoples.
The amendments also remove in situ oil sands extraction facilities and fossil fuel-fired generating facilities from the Project List.
The change follows amendments to the Impact Assessment Act made after the Supreme Court of Canada’s 2023 decision on the constitutionality of the legislation. The federal government says projects removed from the Project List will remain subject to applicable provincial and federal requirements, including environmental assessment where required.
The CER considers environmental and socio-economic factors as part of its project reviews, including effects on air, water, soil, climate change, wildlife and species at risk.
The regulator also considers potential effects on employment, health, Indigenous rights, cultural well-being and resource use, along with cumulative environmental effects and Canada’s environmental and climate obligations.
The changes come after a federal consultation process held from May 8 to July 22, during which Indigenous Peoples, provinces and territories, industry groups, stakeholders and members of the public provided feedback on proposed regulatory changes.
The government also released reports summarizing the feedback received and said it plans to introduce additional legislation related to its regulatory and permitting changes this fall.
The amendments were announced by Dominic LeBlanc, minister responsible for Canada-U.S. Trade, Intergovernmental Affairs, Internal Trade and One Canadian Economy; Energy and Natural Resources Minister Tim Hodgson; and Environment, Climate Change and Nature Minister Julie Dabrusin.
The CER has more than 30 years of experience conducting environmental and socio-economic assessments, according to the federal government.
The Canadian Energy Regulator Act, introduced in 2019, expanded the factors considered by the regulator during project assessments, including environmental effects, cumulative effects, safety, socio-economic impacts and potential effects on Indigenous Peoples and their rights.
The legislation also established the CER as an Agent of the Crown and expanded provisions for Indigenous participation and public involvement in project reviews.
Indigenous Peoples can provide Indigenous Knowledge and written or oral submissions during CER reviews, with participant funding available to support participation.
