In the first move of its regulatory overhaul, Ottawa is handing reviews of pipelines, transmission lines, offshore renewable energy projects and oil and gas facilities to the Canada Energy Regulator. 

It was one of the proposals included in last spring’s discussion paper on major project approval reforms. 

The Carney Liberals plan to table legislation for the broader package of changes this fall. But this particular change didn’t require a bill, since it amends existing regulations rather than the law itself. The amendments were published in the Gazette early Wednesday morning, with a press release from Intergovernmental Affairs Minister Dominic Leblanc reaching reporters’ inboxes later that afternoon.

A Liberal government source tells iPolitics the rush to implement this regulatory change before Parliament resumes is tied to the West Coast Oil pipeline proposal backed by Alberta and Ottawa.

iPolitics is not naming the source as they were not authorized to speak publicly.

The projects were previously subject to the Impact Assessment Agency, a government body that evaluates the broad environmental, social, health and economic effects of major proposed projects. 

The agency has faced criticism in the past from provinces that challenged it as federal overreach and from industry groups that argued its mandate politicized the review process and caused regulatory delays.

During this summer’s consultations on the proposed regulatory changes, the federal government heard concerns that making the Canada Energy Regulator the sole assessor of pipelines could significantly reduce government oversight of such projects. 

“Many stakeholders oppose transferring primary assessment responsibilities… to sector regulators alone,” reads part of the “What We Heard” report. 

“They argue that lifecycle regulators have historically been focused on licensing, safety, compliance, engineering, and project operations and do not replace the multidisciplinary public-interest analysis provided through independent impact assessments.” 

The report goes on to list concerns about how the change would weaken the scrutiny of cumulative effects, species at risk, climate impacts and Indigenous rights. 

The Gazette notice published Wednesday attempts to address these concerns, stating that the Canada Energy Regulator assesses “substantially” the same factors as the Impact Assessment Agency — notably health, social and environmental effects — framing the change as a way to avoid duplicative assessments. 

Industry groups have long called for the change, arguing sector-specific regulators are best placed to lead reviews given their technical expertise and ongoing regulatory role. 

The federal government estimates that, without any amendments, about 10 projects would be designated and enter an Impact Assessment process every year, and that these amendments bring that number down to seven or eight. 

It notes that “very few projects have met the threshold for designation since the introduction of the IAA, however it is anticipated that a minimum of one pipeline, one electrical transmission line and one offshore wind project…. would be proposed in the next 10 years.”

In a press release, Julia Levin, Environmental Defence spokesperson, criticized the Carney government for lacking transparency, saying the “quiet” Gazette posting suggests Ottawa was “hoping no one notices.”

“If the Prime Minister proceeds, nature will suffer, species could be driven to extinction and climate disasters will continue to become more severe, deadly and expensive — all while project decision-making becomes less transparent, less evidence-based and more politicized,” she writes.