Suspend Federal Methane Rules in Alberta

Summary#

The government published a proposed Order Declaring that the Regulations Respecting Reduction in the Release of Methane and Certain Volatile Organic Compounds (Upstream Oil and Gas Sector) Do Not Apply in Alberta, 2025 on July 5, 2025. If finalized, it would let Alberta’s own methane rules continue to apply in the province instead of the federal methane regulations while a new equivalency agreement runs.

What it does#

• Temporarily suspends the federal Regulations Respecting Reduction in the Release of Methane and Certain Volatile Organic Compounds (Upstream Oil and Gas Sector) in Alberta, except for federal works or undertakings (for example, interprovincial pipelines).
• Puts in place a draft equivalency agreement between the federal government and the Government of Alberta for about 5 years (2025–2030) that says Alberta’s rules produce equivalent methane reductions.
• Requires more information-sharing and an annual meeting between Canada and Alberta to review how the agreement is working.
• Keeps the Order in force until the agreement ends, which would be after 5 years or earlier if either side gives three months’ notice.
• Is being published as a proposal. Comments are invited (there is a 60-day comment period).

Who's affected#

• Oil and gas companies and operators in Alberta.
• Facilities on reserve lands identified in Alberta, including those associated with 26 First Nations.
• Indigenous-managed facilities in Alberta that would otherwise be covered by the federal rules.
• Federal works and undertakings located in Alberta (they would still follow the federal regulations).
• The Department of the Environment and the Government of Alberta, which will share information and hold annual reviews.
• The proposal says it is not expected to create extra costs for small businesses.

Why it matters#

• It avoids overlapping federal and provincial rules, so Alberta oil and gas facilities generally would follow one set of rules instead of two.
• The government estimates administrative savings of about $1,638,577 over five years from not having to run separate federal enforcement and administration in Alberta.
• The federal analysis finds the Alberta rules would deliver roughly equivalent methane reductions over 2025–2029: about 38.68 megatonnes (Mt CO2e) under Alberta rules vs 37.77 Mt CO2e under federal rules (a difference of 0.91 Mt CO2e, or 2.4%).
• Because this is a proposal, it is not law yet. People and groups can comment during the 60-day period; the final decision will depend on the equivalency agreement and any responses to the consultation.