BC Methane Equivalency Order 2025–2029

Summary#

This is a proposed federal Order that would say the federal Regulations Respecting Reduction in the Release of Methane and Certain Volatile Organic Compounds (Upstream Oil and Gas Sector) do not apply in British Columbia while a new equivalency agreement is in force. The government proposes a five‑year equivalency (covering 2025–2029) because provincial rules are expected to produce similar methane reductions.

What it does#

• Declares that the federal methane Regulations Respecting Reduction in the Release of Methane and Certain Volatile Organic Compounds (Upstream Oil and Gas Sector) would not apply in British Columbia, except for federal works or undertakings (for example, interprovincial pipelines).
• Links that non‑application to a new equivalency agreement between the federal Minister of the Environment and British Columbia that would run to December 31, 2029, unless ended earlier with at least three months’ notice.
• Requires the province to share facility‑level emissions data, verification activities, and enforcement information, and to allow annual reviews of whether outcomes remain equivalent.
• Notes a trigger: the proposed federal amendments published December 16, 2023 could start a review. If that review finds outcomes are not equivalent, the agreement could end earlier (with a possible end date of December 31, 2026 in that scenario).
• This item is a proposal published in the Canada Gazette, Part I on June 29, 2024. Comments can be submitted within 60 days of that publication.

Who's affected#

• Oil and gas companies operating in British Columbia — they would follow provincial rules instead of the federal methane regulations if the order and equivalency agreement are finalized.
• Operators of federal works or undertakings (e.g., interprovincial pipelines) — they would still be subject to the federal regulations.
• Environment and Climate Change Canada and British Columbia regulators — responsible for reporting, inspections, and annual reviews under the agreement.
• Small businesses are not expected to face new costs according to the federal analysis.

Why it matters#

• It aims to avoid duplicate rules and paperwork by letting a single (provincial) set of rules govern methane from upstream oil and gas in British Columbia.
• The government’s modelling estimates the British Columbia rules would reduce a cumulative 5.75 megatonnes (Mt) CO2‑equivalent of methane from 2025 to 2029, compared with 5.25 Mt under the federal regulations (about 0.5 Mt more over five years).
• The federal government estimates administrative savings of about $94,213 over five years from not running federal enforcement and compliance activities in the province.
• This is a proposed order, not final. The public can comment for 60 days from publication (June 29, 2024), and the arrangement can be ended early if future reviews show the outcomes are not equivalent.