New Export and Import Rules for Energy
Canada Gazette, Part I, Volume 158, Number 50: Export and Import (Orders, Licences and Permits) Regulations
The Canada Energy Regulator (CER) proposes new regulations to replace older NEB rules and update requirements for exporting and importing oil, gas and electricity, and for international power line permits. The proposal narrows some application requirements, exempts certain routine imports/exports (including removing the need for a natural gas import authorization), and sets a standard two‑year maximum validity for most export orders; public comments were invited for 45 days from the December 14, 2024 publication.
Summary
Summary#
This is a proposed set of rules from the regulator that would replace older National Energy Board rules with new ones under the Canadian Energy Regulator Act. The changes would simplify and update what exporters, importers, and international power line applicants must submit and would exempt some routine activities from needing an authorization. Interested parties can comment during the 45‑day consultation that started with the Canada Gazette publication on December 14, 2024.
What it does#
- Repeals parts of older rules and creates new regulations called the Export and Import (Orders, Licences and Permits) Regulations and the International Power Lines (Permits) Regulations to align with the Canadian Energy Regulator Act.
- Moves and consolidates requirements that used to be in the National Energy Board Act Part VI (Oil and Gas) Regulations and the NEB Electricity Regulations into the new regulations.
- Removes the need for a CER authorization for importing natural gas. (Importers would still have to report some information under separate reporting rules.)
- Adds specific exemptions so certain exports and in‑transit shipments (for example fuel in vehicle tanks or shipments returning to origin) do not need an export authorization.
- Standardizes what conditions can be attached to export orders and makes the maximum period of validity for export orders two years for most commodities.
- For international power line permits, requires applicants to provide financial information whether the line is above or below 50 kV, and changes wording about operational “adverse effects” to focus on connected power systems rather than provincial effects.
- Modernizes language (for example, replacing “mailing address” and “telecommunications numbers” with “contact information”) and removes application questions that are no longer relevant under the CER Act.
Who's affected#
- Companies that export or import oil, gas, propane, butane, ethane, refined petroleum products, or electricity.
- Firms that apply to build or operate international power lines (IPL).
- The Canada Energy Regulator (CER), which will use the revised information to monitor markets and issue authorizations.
- Indigenous groups and provincial governments who were part of earlier consultations; one named participant, the Gitxaala Nation, raised concerns about removing environmental-related conditions (the proposal explains why that condition is being removed).
- Small businesses: the government says currently there are effectively no small businesses applying for these authorizations, but if they do enter the market the proposal would reduce future paperwork.
Why it matters#
- It aims to cut red tape: the regulatory analysis estimates net administrative savings for industry, including a present‑value saving of $222,202 over 10 years for oil and gas exporters (annualized average $31,637), and annualized reductions of about $65,524 (oil/gas) and $3,572 (electricity) from streamlining forms and removing unneeded requirements.
- Routine, low‑risk activity (like fuel carried for a vehicle’s own use or in‑transit shipments) would be easier and quicker because fewer authorizations are needed.
- The CER would get a narrower, more targeted set of information that matches the legal test it must use now. That could speed decisions but also means some earlier environmental or operational information would no longer be required for export approvals.
- The changes are a proposal, not law. The government is seeking public comments for 45 days from the Canada Gazette notice (published December 14, 2024). If you need clarification on specifics (for example which exact application questions are dropped), the text in the notice has the detailed lists.
Key topics
Source: Canada Gazette