Federal methane rules suspended in BC

Summary#

This is a proposed order to suspend the federal Regulations Respecting Reduction in the Release of Methane and Certain Volatile Organic Compounds (Upstream Oil and Gas Sector) in British Columbia while a new equivalency agreement is in force. If approved, British Columbia’s own methane rules would apply instead of the federal rules (except for federal works and undertakings), and the arrangement would run until December 31, 2029 unless ended earlier.

What it does#

• Declares that the federal methane regulation does not apply in British Columbia, except for federal works and undertakings (for example, some interprovincial infrastructure).
• Links that non-application to a new five-year equivalency agreement between the federal government and the Government of British Columbia. The agreement would be reviewed annually and requires BC to share facility-level emissions data and enforcement information.
• Provides for an earlier end if a future federal rule change (the proposed federal amendments) makes the two sets of rules no longer equivalent; in that case the agreement could terminate by December 31, 2026 after notice.
• Aims to avoid overlapping rules and reduce duplicate reporting. The federal analysis estimates administrative and enforcement savings of about $94,213 over five years.

Who's affected#

• Companies in British Columbia’s upstream oil and gas sector — operators of wells, compressors, processing sites and related equipment — who will follow provincial rules instead of the federal regulation while the agreement is in force.
• Owners or operators of federal works and undertakings, who remain subject to the federal regulation.
• Regulators at the provincial and federal level, who will carry out annual reviews and data-sharing under the agreement.
• Small businesses are not expected to face new costs from this change, according to the government analysis.

Why it matters#

• It removes duplicate regulation for the same facilities in BC, so producers would only follow one set of methane rules rather than both.
• Government modelling estimates the BC rules would achieve slightly larger methane reductions over 2025–2029: 5.75 Mt CO2e versus 5.25 Mt CO2e under the federal regulation, so climate outcomes are expected to be equivalent or a bit better under BC’s approach.
• The proposal is not yet final. The Canada Gazette notice invites public comments (within 60 days), and the order would only take effect when it is formally registered. Annual reviews and a built-in early-exit path mean the arrangement can be revisited if outcomes change.