Summary of comments on the draft agreement and draft order with Alberta on the methane regulations

Support for equivalency agreements

The province is better placed to continue to regulate the oil & gas sector.

Under the Canadian Environmental Protection Act, 1999 (CEPA), the federal government may enter into equivalency agreements with provinces when the conditions under Section 10 of CEPA are met and where provincial regimes achieve equivalent or better environmental outcomes over the life of the agreement.

Sanctions and enforcement program

The provincial regime is not equivalent or comparable to Canada’s in penalties.

Sanctions and penalties under a provincial regime are elements for consideration regarding a potential agreement with a government under section 10 of the CEPA. The sanctions and penalties under the Alberta regime will support its implementation resulting in an equivalent environmental outcome to the federal methane regulations.

Renewal of equivalency agreement

Suggest to add commitment to formally engage in negotiations to renew the agreement, at least 1 year prior to its conclusion.

Suggest structuring the agreement for 10 years based on modelled outcomes presented with the draft agreement.

It is unclear under what circumstances the agreement may be terminated.

As part of the agreement, Canada and Alberta have agreed to review the agreement annually.

At the request of the province, Canada and Alberta can negotiate and may conclude another agreement to come into force after 2024 if the requirements under section 10 of CEPA are met.

An agreement made under section 10 of CEPA terminates 5 years after the date on which it comes into force or may be terminated earlier by either party giving the other at least 3 months notice.

COVID regulatory relief impact on equivalency

Concern that temporary regulatory relief introduced by Alberta result in fewer emissions reductions in 2020 and affects the equivalency calculation.

The province of Alberta applied temporary measures from June 9 to July 15 that provided data-reporting relief. Requirements to meet the methane limits were always in force, so there is no affect to the evaluation of equivalency.

Canada’s commitments

Concern regarding the achievement of the 40-45% methane emissions reductions target by 2025. Canada must withdraw from the agreement and update its regulations if the target will not be achieved.

Canada remains committed to reducing methane emissions from the oil and gas sector by 40% to 45% below 2012 levels by 2025 as an important element of Canada’s climate plan.

The department will continue to monitor methane emission trends each year as new data becomes available and as regulatory requirements are implemented. The department will assess and report progress towards the 2025 methane target.

The Departmental Results Reports (DRR) are accounts of the results achieved against departmental plans. These reports are tabled each fall by the President of the Treasury Board on behalf of the responsible ministers. Canada’s methane regulations are included in this report in “Regulations to reduce GHGs and support climate action”. 

Use of data collected as a part of the agreement

All information provided by the province should be used to evaluate equivalency and used to update Canada’s National Inventory Report.

Methane emission forecasts should be adjusted using provincial data instead of emission factors wherever possible.

Information provided by Alberta will be considered when updating the national inventory. Environment and Climate Change Canada will continue to use the most recent data available to model and evaluate equivalency.

Application of the agreement

It is unclear whether facilities for which the Alberta regime has no impact, yet in the Alberta jurisdiction, need to follow the federal regulations.