The committee met to study elements of the budget implementation act related to the Department of Natural Resources, specifically measures concerning LNG exports. Appearing were Tracy Sletto, Chief Executive Officer of the Canadian Energy Regulator; Darren Christie, Chief Economist of the Canadian Energy Regulator; and Erin O'Brien, Assistant Deputy Minister, Fuels Sector, Department of Natural Resources.
Minister Tim Hodgson testified that the budget reinstates accelerated capital cost allowances for low-carbon LNG facilities and proposes amending the Canadian Energy Regulator Act to extend LNG export licences from 40 to 50 years, arguing this will help Canada compete globally, attract investment, and support projects like LNG Canada phase two and Ksi Lisims. He emphasized that the Major Projects Office aims to deliver a conditions document within two years, which he called world-class, and that the government evaluates projects against five criteria including economic benefits, indigenous interests, and climate change objectives, rejecting hypothetical scenarios in favour of real proponents.
Tracy Sletto explained that the CER regulates natural gas exports under the Canadian Energy Regulator Act, currently issuing licences for up to 40 years, and that the proposed change to 50 years would only apply to LNG, not other exports. She noted that existing licence holders could reapply for longer terms, and that the CER meets its legislated time limits and service standards 99.7% of the time, with most export orders approved within two days.
Darren Christie added that there are 24 valid LNG export licences, with only one currently in use, and that many older licences from 2016 are now dormant. He declined to speculate on future commission decisions regarding electricity exports, such as the Powell River Energy Inc. case, noting that the test for electricity is different from the surplus test for hydrocarbons.
Erin O'Brien stated that the 50-year licence extension came from discussions with project proponents and provinces to improve competitiveness, and that it balances climate, energy security, and economic objectives. She noted that Canadian LNG has among the lowest emissions profiles globally, with projects like LNG Canada being 35% lower than the best performers, and that new west coast projects are required to be net-zero-ready.
During questioning, Shannon Stubbs pressed the minister on why only four of 18 Canadian LNG proposals were approved since 2015, contrasting with U.S. approvals, and criticized the lack of legislated timelines in Bill C-5. She also raised concerns about the Crown's duty to consult indigenous rights holders, arguing that judicial decisions require decision-makers to be at the table, which the current law does not ensure.
Mario Simard asked whether the government would set aside standards to build pipelines, referencing sandbox provisions in Bill C-15 that allow ministers to exempt companies from federal laws for three years. The minister responded that sandbox provisions are a normal regulatory tool for time-limited experimentation, and that projects are evaluated case by case against the five criteria.
Patrick Bonin questioned how 50-year export licences can be reconciled with Canada's net-zero by 2050 target, arguing that emissions from production and transport would continue until 2075. O'Brien replied that the measure does not affect export volumes, which are approved separately, and that Canadian LNG contributes to global emission reductions, though she acknowledged increased domestic emissions from growing LNG ambitions.
Aaron Gunn asked about the CER's recommendation to reject a 30-year electricity export permit for Powell River Energy Inc., noting the minister had not yet decided after two months. Christie confirmed the recommendation was made but no decision had been taken, and that the commission could consider evidence if the process proceeds.
The committee adopted a motion by Braedon Clark, by unanimous consent, to allow up to three associate members per party to receive notices and access the digital binder, with the provision expiring September 25, 2026.
AI-generated summary — may contain errors; verify against the official evidence.