B.C. Methane Rules Equivalency Through 2029

Summary#

The government is proposing the Order Declaring that the Provisions of the Regulations Respecting Reduction in the Release of Methane and Certain Volatile Organic Compounds (Upstream Oil and Gas Sector) Do Not Apply in British Columbia, 2025. If made, it would let British Columbia’s own methane rules be used instead of the federal rules in that province for the period covered by a new equivalency agreement (through December 31, 2029), while federal works and undertakings remain under federal rules.

What it does#

• Suspends the application of the Regulations Respecting Reduction in the Release of Methane and Certain Volatile Organic Compounds (Upstream Oil and Gas Sector) in British Columbia, except for federal works and undertakings (for example, interprovincial pipelines).
• Ties that suspension to a new equivalency agreement between the Minister of the Environment and British Columbia that would run through December 31, 2029, unless ended earlier with at least three months’ notice.
• Says provincial rules are expected to deliver similar or slightly better greenhouse‑gas outcomes over 2025–2029: cumulative reductions of 5.75 megatonnes (Mt) CO2e under the British Columbia rules versus 5.25 Mt CO2e under the federal rules (a difference of about 0.39 Mt).
• Requires information sharing and annual review between the province and Environment and Climate Change Canada to check that the provincial rules remain equivalent.
• Notes a specific review trigger: planned federal amendments could lead to an equivalency review and, if outcomes are not equivalent, the agreement could end earlier (with possible effect on December 31, 2026).
• Estimates administrative cost savings of about $94,213 to the federal government over five years because the federal program would not be applied in B.C.

Who's affected#

• Operators in the upstream oil and gas sector in British Columbia. They would follow one set of rules — the provincial rules — rather than both provincial and federal requirements.
• Operators of federal works and undertakings in B.C. (for example, interprovincial pipelines). They would still have to follow the federal methane regulations.
• Environment and Climate Change Canada and the British Columbia Oil and Gas Commission, which will share data and carry out annual reviews under the agreement.
• The federal government and industry, which are expected to see modest administrative cost savings.
• Indigenous groups: the notice says three Indigenous groups were identified in 2017 as potentially affected by the federal regulations, but the Canada Gazette text does not name them or spell out specific consultation outcomes.

Why it matters#

• It aims to avoid duplicate regulation and reduce paperwork and compliance costs for companies operating in B.C. by letting provincial rules take the place of federal ones where outcomes are judged equivalent.
• It keeps Canada’s methane‑reduction goals intact while giving the province flexibility to meet them in ways that fit local industry and conditions.
• For the public, it means enforcement and reporting for most B.C. oil and gas sites will be handled provincially rather than federally, but federal jurisdiction still applies to federal works.
• People tracking climate outcomes should note the federal analysis expects similar overall methane reductions either way, but some types of emissions are expected to be reduced more under one set of rules than the other.