Canada Streamlines Environmental Assessments for Major Energy and Infrastructure Projects
The Government of Canada has amended regulations to shift oversight of specific pipelines, power lines, and offshore renewable energy projects to the Canada Energy Regulator, while removing certain oil sands and fossil fuel facilities from the federal Project List.
On September 9, 2026, the Government of Canada announced amendments to the Physical Activities Regulations under the Impact Assessment Act. The changes are designed to streamline project assessments for key infrastructure sectors, including pipelines, power lines, and offshore renewable energy projects.
Under the new framework, interprovincial and international pipelines, as well as international and designated interprovincial power lines, will now be reviewed by the Canada Energy Regulator (CER) rather than through integrated review panels. Certain offshore renewable energy projects are also included in this shift to CER oversight. The government cited the CER’s over 30 years of expertise in conducting impact assessments as a basis for this regulatory change.
Additionally, the amendments remove in situ oil sands extraction facilities and fossil fuel-fired power generating facilities from the federal Project List. The government clarified that projects removed from this list remain subject to provincial and federal assessment processes, as well as the Crown's duty to consult Indigenous Peoples.
The announcement was made jointly by Honourable Dominic LeBlanc, Tim Hodgson, and Julie Dabrusin. These regulatory changes follow a nationwide engagement process that took place from May 8 to July 22, 2026.
According to the government, the primary objectives of these amendments are to accelerate nation-building projects, attract investment in natural resource and infrastructure sectors, and create a more efficient, predictable, and transparent regulatory framework. The changes aim to reduce duplication in assessment processes for certain energy projects while maintaining environmental protections and respecting Indigenous rights.