New Export and Import Regulations for Energy

Summary#

This is a proposed set of regulations under the Canadian Energy Regulator Act published on December 14, 2024. It would replace parts of older National Energy Board rules with new rules called the Export and Import (Orders, Licences and Permits) Regulations (and a related International Power Lines (Permits) Regulations) and change what exporters and permit applicants must provide. The public has 45 days to comment on the proposal.

What it does#

• Replaces and reorganizes parts of several older rules, including the National Energy Board Act Part VI (Oil and Gas) Regulations, the National Energy Board Electricity Regulations, the National Energy Board Export and Import Reporting Regulations, and the Toll Information Regulations, into new CER-era regulations.

• Creates two main new regulatory titles in this proposal:

  • Export and Import (Orders, Licences and Permits) Regulations — covers oil, gas and electricity export orders, licences and related conditions.
  • International Power Lines (Permits) Regulations — sets information and condition rules for constructing or operating international power lines.

• Changes and clarifies who needs an authorization:

  • Exempts natural gas imports from needing an authorization (but reporting would still be required under the proposed Export and Import Reporting Regulations).
  • Adds exemptions for some exports or imports that are in-transit or intended for the exporter’s own use (for example, fuel in the tanks of vehicles, ships or locomotives).

• Updates application and condition rules:

  • Revises what information applicants must provide and the kinds of conditions the regulator can attach.
  • Makes the maximum period of validity for export orders consistent across commodities at two years.
  • For international power line permits, requires financial information for both lines above and below 50 kV, and replaces outdated wording (for example, replacing “mailing address” with “contact information”).

• Estimates a net reduction in administrative burden for businesses:

  • Forecasted present-value savings of $222,202 over a 10-year period, or about $31,637 per year.
  • Other annualized savings cited include about $65,524 and $3,572 for specific regulatory changes described in the analysis.

Who's affected#

• Companies that export or import oil, natural gas, and electricity.
• Companies that build or operate international power lines (IPL).
• The Canadian Energy Regulator (CER), which will use the updated information and processes.
• Governments, industry associations, and Indigenous groups who have an interest in export and IPL rules. The Gitxaala Nation raised concerns during earlier consultations about removing environmental-related conditions from export authorizations.
• Small businesses: the analysis says there are currently no small businesses applying for these authorizations, but the changes would reduce paperwork if small firms enter the market later.

If it is unclear who will be affected by a particular change, the proposal notes that more detail is available in the CER’s consultation materials.

Why it matters#

• It brings export and IPL rules into line with the newer Canadian Energy Regulator Act and with current industry practices and technology. That should reduce confusion about what applicants must file.

• It reduces paperwork and some costs for firms that apply for export orders or IPL permits. That may speed up applications and lower administrative costs for industry.

• It changes the information the CER gets about exports and imports. That affects how the CER monitors energy markets and makes decisions about exports.

• Some stakeholders and Indigenous groups worry that removing certain conditions (for example, environmental-related requirements tied to export authorizations) could limit how those issues are addressed. The CER says other authorization processes still control physical activities that could affect rights or the environment.

• This is a proposal, not final law. The public has 45 days from the notice to comment before the government decides whether to make the regulations final.