Order Fixing the Day on Which Certain Provisions of An Act to amend the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and to make consequential amendments to other Acts Come into Force: SI/2025-22
Canada Gazette, Part II, Volume 159, Number 6
Registration
SI/2025-22 March 12, 2025
AN ACT TO AMEND THE CANADA–NEWFOUNDLAND AND LABRADOR ATLANTIC ACCORD IMPLEMENTATION ACT AND THE CANADA-NOVA SCOTIA OFFSHORE PETROLEUM RESOURCES ACCORD IMPLEMENTATION ACT AND TO MAKE CONSEQUENTIAL AMENDMENTS TO OTHER ACTS
Order Fixing the Day on Which Certain Provisions of An Act to amend the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and to make consequential amendments to other Acts Come into Force
P.C. 2025-174 February 25, 2025
Her Excellency the Governor General in Council, on the recommendation of the Minister of Natural Resources, under subsections 221(1) to (2.1) and (5) of An Act to amend the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and to make consequential amendments to other Acts (the “Act”), chapter 20 of the Statutes of Canada, 2024, fixes the day on which the definition “Regulator” is added to section 2 of the Canada-Newfoundland and Labrador Atlantic Accord Implementation Newfoundland and Labrador Act, chapter C-2 of the Revised Statutes of Newfoundland and Labrador, 1990, as the day on which sections 1 to 106 and 210 to 215 of the Act come into force.
EXPLANATORY NOTE
(This note is not part of the Order.)
Proposal
This Order in Council, made pursuant to subsections 221(1) to (2.1) and (5) of An Act to amend the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and to make consequential amendments to other Acts (the Act), fixes, the day on which a definition of the term “Regulator” is added to section 2 of the Canada-Newfoundland and Labrador Atlantic Accord Implementation Newfoundland and Labrador Act, chapter C-2 of the Revised Statutes of Newfoundland and Labrador, 1990, as the day on which sections 1 to 106 and 210 to 215 of the Act enter into force.
Objective
The objective of this Order is to set the coming-into-force date for amendments to the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act (the Canada-Newfoundland and Labrador Accord Act) to expand the existing joint management regime established with Newfoundland and Labrador to include offshore renewable energy; modernize the existing petroleum land tenure regime, provide tools to support Canada’s marine conservation goals, and align the Canada-Newfoundland and Labrador Accord Act with the Impact Assessment Act (IAA). The Order also sets the coming-into-force date for related terminological amendments required to update other Acts of Parliament.
Background
The Canada-Newfoundland and Labrador and Canada-Nova Scotia offshore areas are unique in that the exploration and development of offshore petroleum resources have been jointly managed by both the federal and provincial governments for nearly 40 years.
In 1985, Canada and Newfoundland and Labrador agreed to jointly manage petroleum resources off the coast of that province. This agreement was implemented jointly through the federal the Canada-Newfoundland and Labrador Accord Act and mirror provincial legislation. In 1986, Canada and Nova Scotia reached a similar agreement that was implemented through the federal Canada-Nova Scotia Accord Act and mirror provincial legislation.
Under the Canada-Newfoundland and Labrador Accord Act and the Canada-Nova Scotia Accord Act (together, the Accord Acts) the federal and provincial governments work together under a joint management regime, sharing regulatory oversight of offshore energy resource development through joint Boards, the Canada-Newfoundland and Labrador Offshore Petroleum Board and the Canada-Nova Scotia Offshore Petroleum Board (collectively, the Regulators).
The Regulators are independent joint entities that operate at arm’s length from both the federal and provincial governments. Since their establishment, they have administered the offshore petroleum regulatory regime to ensure the health and safety of offshore workers and protection of the environment, among other legislative requirements.
In April 2022, the federal Minister of Energy and Natural Resources, along with his counterparts in the Governments of Newfoundland and Labrador and Nova Scotia, jointly announced the intent to facilitate the transition to a clean economy and create sustainable jobs by refreshing and expanding the mandate of the existing offshore petroleum regime and to further collaborate on establishing a competitive offshore renewable energy sector, positioning Atlantic Canada to become a world leader in offshore wind and clean hydrogen production.
The Act, which received royal assent on October 3, 2024, directly implements these commitments through amendments to the Accord Acts that set the legislative framework for the development and regulation of offshore renewable energy projects off the coasts of Newfoundland and Labrador and Nova Scotia. In addition, the Act amends the Accord Acts to modernize the existing land tenure regime for offshore petroleum, improve alignment with the IAA, and establish new tools to support the Government of Canada’s marine conservation agenda.
Under the Act, these amendments come into force on a day to be fixed by order of the Governor in Council.
Implications
Offshore renewable energy
This Order will bring into force amendments to the Canada-Newfoundland and Labrador Accord Act to expand the joint management regime and mandate of the Canada-Newfoundland and Labrador Offshore Petroleum Board to include offshore renewable energy projects. For example, the amendments will change the title of the Canada-Newfoundland and Labrador Accord Act and the name of the Board to reflect this new expanded mandate; establish a land tenure regime for the issuance of submerged land licences to carry out offshore renewable energy projects, as well as the revenues regime associated with those licences and projects; establish a ministerial decision-making process respecting the issuance of submerged land licences; expand the application of the safety and environmental protection regime currently in place for offshore petroleum and its enforcement powers to include offshore renewable energy projects; and expand the application of the existing occupational health and safety regime to offshore renewable energy projects.
Canada is home to the longest coastlines in the world, and the potential for offshore wind development is particularly promising in Atlantic Canada, with Newfoundland and Labrador and Nova Scotia having some of the best wind speeds in the world. These world-class-leading offshore wind resources make Newfoundland and Labrador well positioned to serve both local and international clean hydrogen markets and to decarbonize provincial electricity grids and move to a non-emitting electricity grid by 2035.
Establishing a legislative framework for offshore renewable energy in the Canada-Newfoundland and Labrador offshore area will enable the province to capitalize on its existing strengths and accelerate offshore wind development off Canada’s East Coast. Such a consistent and predictable regulatory regime in federal–provincial jointly managed offshore areas is needed in order to realize Canada’s offshore renewable energy potential. Further, expanding the mandate of the existing Canada-Newfoundland and Labrador Offshore Petroleum Board and leveraging the Board’s experience, expertise and knowledge of the offshore environment reflects how other peer jurisdictions are approaching the regulation of offshore renewable energy projects, including the United States and the United Kingdom.
Land tenure regime
This Order will bring into force amendments to the Canada-Newfoundland and Labrador Accord Act to update existing land tenure provisions. For example, the amendments limit the duration of significant discovery licences to 25 years (currently have an indefinite term) and modify the definition of significant discovery to better reflect both advances in technology in the last several decades and international best practices. The amendments also allow the Regulators to cancel exploration licences for administrative reasons without the need to go through an Oil and Gas Committee hearing.
A significant discovery licence is an intermediate interest designed to maintain an explorer’s rights during the period between the first discovery and eventual production. This licence confers, with respect to the offshore area to which the licence applies, the right to explore for, and the exclusive right to drill and test for petroleum, and the exclusive right to develop the area in order to produce petroleum. When held in perpetuity, there is no incentive for an interest holder to either further develop or relinquish the lands. Current significant discovery licences, issued in perpetuity, have remained idle for years. Nowhere else in the world are licences issued for an infinite period.
Following the coming into force of the amendments, any significant discovery licence which is awarded by the Regulators will have a fixed term of 25 years. At the end of the 25-year tenure, the interest holders could either a) relinquish the licence and the land would revert to the Crown or b) if the interest holder met the requirements of a production licence, they could seek and obtain a production licence, which confers the exclusive right to produce petroleum.
These amendments better align the offshore petroleum regime with peer jurisdictions while ensuring the appropriate use of evolving technologies.
Marine conservation goals
This Order will bring into force amendments to the Canada-Newfoundland and Labrador Accord Act to facilitate the application of the Federal Marine Protected Area (MPA) Protection Standard in MPAs in Accord Act offshore areas. In doing so, the amendments will provide tools to support the Government of Canada’s commitment to protecting 25% of Canada’s oceans by 2025 and 30% by 2030. These tools will provide the authority to extinguish oil and gas permits or licences in an area that is or that may be identified as an area of environmental or wildlife conservation or protection.
Furthermore, governments will have the authority to prohibit oil and gas or offshore renewable energy activities and the issuance of new interests in such an area. This will ensure that any area which is identified as an area of environmental or wildlife conservation is protected by regulations for the long term.
For example, the amendments provide authority for ministers to jointly prohibit the commencement or continuation of oil and gas activities in an area that has been or may be identified as an area for environmental or wildlife conservation or protection; the authority to prohibit the issuance of new interests in an area that has been or may be identified as an area for environmental or wildlife conservation or protection; the authority for the Minister of Natural Resources Canada to negotiate the surrender of an interest with an interest owner and to provide compensation; and the authority, by way of a joint order in the event that negotiations should be unsuccessful, to cancel an interest that overlaps with an area that has been or may be identified as an area for environmental or wildlife conservation or protection and for the federal minister to provide compensation.
The amendments also uphold the principle of joint management by ensuring that prohibitions on offshore renewable energy and oil and gas activities, in current or proposed marine conservation areas established in the Canada-Newfoundland and Labrador offshore area, are made jointly by federal and provincial governments. This ensures that if a conservation area is proposed in an area with existing interests, tools are available to seek relinquishment of those interests, and to provide compensation.
Alignment with the Impact Assessment Act
This Order will bring into force amendments to the Canada-Newfoundland-and-Labrador Accord Act to facilitate alignment with the IAA. For example, the amendments remove outdated references to the former Canadian Environmental Assessment Act, 2012, and add new provisions that clarify how the Regulators will participate in the impact assessment process.
The amendments follow through on a commitment made in 2019 by the Government of Canada to work with Newfoundland and Labrador and Nova Scotia to implement the IAA in the Atlantic offshore collaboratively. None of these proposed amendments alter the functioning of the IAA or the authorities of the Impact Assessment Agency of Canada or the Minister of the Environment.
Joint management and provincial legislation
Brining into force these amendments is a tangible demonstration of Canada’s commitment to and sound functioning of the joint management with Newfoundland and Labrador and all parties’ willingness to work together for the safe and environmentally responsible development of Canada’s Atlantic offshore resources. These amendments are the product of extensive negotiations between the governments of Canada, Newfoundland and Labrador and Nova Scotia and reflect provincial priorities with respect to the future of their offshore energy industries.
As a next step, Newfoundland and Labrador will need to introduce mirror legislative amendments into the provincial legislature. Once the provincial amendments have received royal assent, both the federal and provincial amendments must come into force on the same day. To achieve this outcome, this Order in Council sets the date of coming into force of the federal amendments to be the day on which the definition of “Regulator” is added to section 2 of the provincial Accord Act, which will be added when the suite of provincial mirror amendments is brought into force.
Financial considerations
There are no specific costs directly related to bringing sections 1 to 106 and 210 to 215 of the Act into force. Under the Accord Acts, the Regulators must submit an annual operating budget to governments for approval. Funding is provided by the Government of Canada (50%) and the respective provincial government (50%). Federally, the Regulators’ budgets are approved by the Minister of Energy and Natural Resources and funding is a statutory appropriation not subject to approval (votes) by Parliament. Cost recovery regulations under the Accord Acts also allow for the Regulators to cost recovery up to 100% of their operating budgets from industry.
Following the coming into force of sections 1 to 106 and 210 to 215, the Governments of Canada and Newfoundland and Labrador will assess what resources the Canada-Newfoundland and Labrador Offshore Petroleum Board will require to implement its new responsibilities and will provide funding through the approval of the annual operating budget.
Consultation
The province of Newfoundland and Labrador was consulted on the timing of the coming into force of these amendments in order to ensure the amendments to both the federal and provincial mirror versions of the Accord Acts are brought into force on the same day. No additional consultations were undertaken in terms of the timing for coming into force of these amendments.
During the development of the Act, the Government of Canada collaborated with the Governments of Newfoundland and Labrador and Nova Scotia. In keeping with the principles of joint management, amendments to the federal Accord Acts must be mirrored in provincial legislation. As a result, all amendments require approval by both levels of governments.
Natural Resources Canada (NRCan) also worked closely with the Impact Assessment Agency of Canada, the Government of Newfoundland and Labrador and the Government of Nova Scotia to determine an approach to engaging with Indigenous groups on proposed amendments to the Accord Acts (Bill C-49). NRCan sent letters to 59 Indigenous groups across Atlantic Canada on the proposed legislation in fall-winter 2022, and then again in spring 2023 after Bill C-49 was tabled. The letters contained detailed information about the purpose and intent of the legislation and provided an opportunity for each community to discuss the Bill with federal and provincial officials in greater detail and encouraged them to provide their perspectives during the Parliamentary process, some of whom did.
Throughout the full lifecycle of offshore renewable energy development, engagement or consultation will occur with impacted Indigenous peoples on any matter that affects the rights and interests of Indigenous peoples, including but not limited to, regional assessments, which are currently underway under the IAA; impact assessments and Accord Act assessments for specific projects; regulatory authorizations and permitting decisions; and the development of regulations and other tools.
Contacts
For additional information, please contact
Natural Resources Canada
Abigail Lixfeld
Senior Director
Renewable and Electrical Energy Division
580 Booth Street
Ottawa, Ontario
K1A 0E4
Telephone: 613‑293‑7746
Email: abigail.lixfeld@nrcan-rncan.gc.ca
Cheryl McNeil
Acting Director
Offshore Management Division
580 Booth Street
Ottawa, Ontario
K1A 0E4
Telephone: 613‑808‑0352
Email: cheryl.mcneil@nrcan-rncan.gc.ca