On September 9, 2026, the Government of Canada published the Regulations Amending the Physical Activities Regulations(the Amendments). The Amendments came into force on September 3, 2026, removing seven types of energy projects from the federal Impact Assessment Act (IAA) Project List.
As a result, certain international and interprovincial pipelines, electrical transmission lines and other CER Act-regulated projects will no longer be subject to a federal impact assessment under the IAA. Instead, these projects will be reviewed by the Canada Energy Regulator (CER) under the Canadian Energy Regulator Act(CER Act). Certain in situ oil sands facilities and fossil fuel-fired power generating facilities will instead be assessed under applicable provincial environmental assessment processes.
These changes come amid the federal government’s efforts to simplify the review of major projects, with its approach premised on the notion of “one project, one review” and on narrowing the types of projects that require a federal impact assessment under the IAA, as amended in 2024.
For a detailed discussion of the federal government’s proposed reforms to streamline major project reviews and approvals, see our previous post, Federal government launches consultation on accelerated major project approvals and “One Canadian Economy” reforms.
What energy projects were removed from the IAA Project List?
The Physical Activities Regulations(the Regulations), commonly known as the Project List, are made under the IAA and set out the types of designated projects that are subject to the federal impact assessment regime.
The Amendments removed seven project types from the Regulations – five project types that were subject to both the IAA and the CER Act for integrated review panel assessments and two that were subject to the IAA alone, but sit outside its post-amendment focus.
The seven removed project types are:
- international and interprovincial pipelines;
- international and interprovincial electrical transmission lines;
- offshore renewable energy projects that are regulated under the CER Act;
- oil and gas pipelines and facilities in national parks and protected areas that are regulated under the CER Act;
- oil and gas facilities that are functionally integrated into a federal work or undertaking that is regulated under the CER Act;
- in situ oil sands extraction facilities with a bitumen production capacity of 2,000 /day or more, in a province without provincial legislation to limit greenhouse gas emissions from oil sands; and
- fossil fuel-fired power generating facilities.
As a result of these changes, international and interprovincial pipelines and electrical transmission lines, CER Act-regulated offshore renewable energy projects, and CER Act-regulated oil and gas pipelines and facilities will no longer trigger a federal impact assessment under the IAA and will instead be reviewed by the Canada Energy Regulator (CER) under the CER Act, subject to any other applicable federal requirements.
In its reviews, the CER will consider many of the same factors an integrated review panel would have considered under the IAA. For pipeline reviews, these include:
- environmental effects, including any cumulative effects;
- health, social, and economic effects;
- effects on the rights of Indigenous Peoples, including their interests and concerns; and
- the extent to which the effects of the pipeline hinder or contribute to the federal government’s ability to meet environmental obligations and commitments in respect of climate change.
In situ oil sands extraction facilities and fossil fuel-fired power generating facilities will instead be assessed under provincial environmental assessment processes, with other federal regulatory regimes outside of the IAA continuing to apply.
Why did the federal government remove these projects from the IAA Project List?
According to the Regulatory Impact Analysis Statement (RIAS) accompanying the Amendments, the five CER Act-regulated project types were removed from the Regulations to align with the federal government’s goal of simplifying the decision process for interprovincial pipelines and other CER Act-regulated projects by assigning responsibility for their assessment to a single federal regulator. This duplication dates back to 2019, when both the CER Act and the IAA came into force. Since then, no impact assessment by an integrated review panel has ever been conducted for a pipeline or electrical transmission line project.
Additionally, the removal of the in situ oil sands extraction facilities and fossil fuel-fired power generating facilities from the Regulations traces back to the Supreme Court of Canada’s 2023 decision in Reference re Impact Assessment Act, which held that parts of the IAA extended beyond federal jurisdiction. This decision led to amendments to the IAA and to a review of the Project List. A detailed discussion of the case is available in our previous post, The Supreme Court of Canada Rules That Part of the Federal Impact Assessment Act Is Unconstitutional.
Each set of removals from the Project List was consulted on through different processes. For the CER Act-regulated projects, consultation proceeded through a 2026 discussion paper entitled Getting Major Projects Built in Canada, which sought feedback from industry groups, stakeholders, and members of the public.
Industry stakeholders strongly supported the proposal because it would eliminate duplicative processes and increase regulatory certainty, while members of the public and Indigenous groups raised concerns about the loss of independent assessment, approvals being granted with insufficient understanding of environmental impacts, and reduced opportunities for meaningful participation.
Consultation on the removal of in situ oil sands and fossil fuel-fired power generating facilities began in 2023, and similarly raised both the benefits of reducing duplication and concerns about the adequacy of assessments of impacts on Indigenous groups and their rights.
What do the changes mean for project proponents?
Although proponents of CER Act-regulated projects will no longer prepare separate filings under the IAA, the federal government expects the change to be broadly cost-neutral for those proponents because similar materials will continue to be required through the CER review process. The RIAS identifies the removal of fossil fuel-fired power generating facilities as the principal source of business cost savings.
The Amendments narrow the range of energy projects subject to the federal impact assessment regime, but they do not eliminate regulatory review. CER Act-regulated projects will continue to undergo review under the CER Act, while in situ oil sands facilities and fossil fuel-fired power generating facilities will remain subject to applicable provincial and other federal requirements.
Project proponents should assess the revised federal and provincial approval pathways early in project planning, as the broader major-project review framework continues to evolve.
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