Summary of comments on the draft agreement and draft order with Saskatchewan 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 there are 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 penalty regime applicable to the provincial regime, in particular the relevant provisions under the Oil and Gas Conservation Act (OGCA) and the Oil and Gas Emissions Management Regulations (OGEMR), will support its implementation resulting in an equivalent or comparable 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.

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

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

COVID Temporary Regulatory Relief Measures impact on equivalency

Concern that Temporary Regulatory Relief Measures, introduced by Saskatchewan, result in fewer emissions reductions in 2020 and affects the equivalency calculation.

Extensive information sharing obligations are in the agreement. Canada and Saskatchewan will meet each year to review the implementation of the provincial regime and consider progress under the agreement. Environmental outcomes are evaluated over the life of the agreement.

The impacts of the Temporary Regulatory Relief Measures were quantitatively assessed and do not impact the determination of equivalency of the provincial regime over the term of the agreement.

Canada's commitment

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 is 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”.

Regulatory approach

The provincial regulations are not equivalent to the federal regulations in terms of the structure of the regulations and should be strengthened to ensure equivalency.

Environment and Climate Change Canada has determined that both the federal and provincial approaches are expected to achieve the same environmental outcome over the life of the agreement.

Extensive information sharing obligations are part of the agreement. These obligations will enable Canada to monitor the implementation of the provincial regime and resulting environmental outcome.