Summary#

Bill C-49 updates the federal-provincial Atlantic Accord laws for Newfoundland and Labrador (NL) and Nova Scotia (NS). It keeps joint federal–provincial control over offshore oil and gas, and adds a full legal framework for offshore renewable energy (like wind). It renames the boards as “Offshore Energy Regulators,” sets up seabed licensing for renewables, extends safety and environmental rules, and allows activity limits in conservation areas.

• Creates Offshore Energy Regulators and gives them authority over offshore renewables, not just oil and gas (s.9; Part III headings).
• Sets a new “submerged land licence” system and call-for-bids process for renewables, with federal and provincial ministers’ approval needed (Division V – Offshore Renewable Energy; ss. 38.1–38.3 NS; ss. 40.1–40.3 NL).
• Extends safety, environmental protection, and worker health rules to renewable projects; requires authorizations, impact assessments, and proof of financial capacity (Part III; s. 138.01 NL; s. 142.011 NS; Impact Assessment ss. 138.012 NL, 142.013 NS).
• Allows cabinet to prohibit oil, gas, or renewable activities in areas that are or may be designated for environmental/wildlife protection; creates compensation and cancellation processes for existing interests (s. 56.1, 56.2–56.5 NL; s. 59.1, 59.2–59.5 NS).
• Sets a strict debris liability regime for renewables, including $1 billion no‑fault liability caps and required financial assurances (s. 183.19–183.21 NL; s. 188.19–188.21 NS).
• Limits future significant discovery licences to 25 years and modernizes rules for transboundary oil and gas pools (s. 75(3) NL; s. 78(3) NS; Transboundary Pools, ss. 183.xx NL; 188.xx NS).

Note: Many provisions take effect on dates set by order-in-council and depend on future regulations (Part 3 – Coming into Force).

What it means for you#

• Households

  • More regulatory clarity for offshore wind and other marine renewables could enable projects over time. Any bill-driven electricity price or jobs impact is uncertain and depends on future projects and regulations. Data unavailable.
  • Activities may be barred in or near protected areas, which could reduce environmental risks near coasts (s. 56.1 NL; s. 59.1 NS).

• Workers (offshore oil, gas, and renewables)

  • Offshore renewables now fall under the same safety culture: authorizations, facility “fit for purpose” declarations, and oversight by a Chief Safety Officer (s. 138.01(3), 139.1 NL; s. 142.011(3), 143.1 NS).
  • Occupational health and safety regime applies offshore for renewables; certain unattended renewable sites may be inspected less frequently (monthly inspection exception) (s. 205.013(2), 205.019(1.1) NL; s. 210.013(2), 210.019(1.1) NS).
  • Canada Labour Code Parts II and III do not apply offshore; provincial “social legislation” applies instead (ss. 205.004–205.007 NL; ss. 210.004–210.007 NS).

• Indigenous peoples

  • The Crown may rely on the Regulators to consult and, where appropriate, accommodate impacts on s.35 rights for offshore works (new clauses after s.17 NL; after s.18 NS).
  • Participant funding programs may be set up to support engagement (Part III – Participant Funding Program).

• Fishers and coastal communities

  • Calls for bids and licence terms must consider effects on fishing activities; “full and fair opportunity” and participation for under-represented groups are stated principles (s. 96.6 NL; s. 98.7 NS).
  • If renewable debris causes loss or damage (including to fishing income), claims can be made; operators have up to $1 billion no‑fault liability, plus fault-based liability (s. 183.19 NL; s. 188.19 NS).

• Businesses (renewable developers)

  • You must obtain a submerged land licence through a call for bids (with published criteria) or specific exceptions, then an operations authorization, and meet impact assessment gateways (Division V; ss. 138.012 NL; 142.013 NS).
  • Proof of financial resources and separate financial responsibility (e.g., letter of credit) is required; regulator can order direct payment of claims from security (ss. 183.2 NL; 188.2 NS).
  • Ministers must approve key Regulator recommendations on renewables, which adds a political approval step and timelines (60 days, with possible 30‑day extension) (ss. 38.1–38.3 NS; ss. 40.1–40.3 NL).
  • Activities may be prohibited in areas that are or “may be” identified as protected; existing interests can be surrendered with negotiated compensation or cancelled with set compensation (s. 56.1, 56.2–56.5 NL; s. 59.1, 59.2–59.5 NS).

• Businesses (oil and gas)

  • Significant discovery licences issued in future are capped at 25 years, with limited extensions (s. 75(3) NL; s. 78(3) NS).
  • New rules govern transboundary pools, joint exploitation agreements, and unitization with expert dispute resolution (Transboundary Pools, ss. 183.xx NL; 188.xx NS).
  • Cabinet may regulate access, tolls, and tariffs for use of existing petroleum infrastructure by third parties (s. 149(1)(c)(ii) NL; s. 153(1)(c)(ii) NS).

• Local and provincial governments

  • Regulators can order public bodies to take measures on abandoned facilities; non-compliance can trigger Regulator action and potential costs (s. 183.21 NL; s. 188.21 NS).
  • Provinces must approve many new regulations; ministers co‑decide key renewable matters (e.g., bid calls and prohibitions) (s. 7 NL; s. 6 NS; ss. 38.1–38.3 NS; 40.1–40.3 NL).

• Timing

  • Most sections take effect on dates set by the Governor in Council; several depend on regulations and provincial approvals (Part 3 – Coming into Force; s. 6 NS; s. 7 NL).

Expenses#

Estimated net cost: Data unavailable.

• Federal–provincial regulator budgets: Canada pays 50% of approved Regulator expenditures; either government may fully fund specific requested activities (s. 27(4), 27(4.1) NL; s. 28(4), 28(4.1) NS). Amounts not stated.
• Fees and charges: Regulators may charge cost‑recovery fees for activities under the Acts and the Impact Assessment Act; fees cannot exceed costs (s. 29.1 NL; s. 30.1 NS). Revenue impact unknown.
• Revenues from offshore renewables: “Revenues, interest and penalties” are reserved to Canada but mirror provincial regimes and are remitted to the Receiver General; Regulators may collect and administer (s. 97.1, 98–100 NL; s. 99.1, 100–102 NS). Amounts depend on future projects.
• Participant funding programs: Regulators may establish programs to support public and Indigenous participation (Part III – Participant Funding Program). Funding levels not specified.
• Enforcement and inquiries: Regulators can conduct inquiries into serious incidents and publish reports (s. 183.23 NL; s. 188.23 NS). Cost impact not specified.

Table: Key fiscal mechanisms (no dollar estimates provided) Item | Amount | Frequency | Source Fees (cost recovery) | Data unavailable | Ongoing | s. 29.1 NL; s. 30.1 NS Federal share of Regulators’ budgets | 50% of approved budgets | Annual | s. 27(4) NL; s. 28(4) NS Government‑requested activities | 100% by requesting government | As incurred | s. 27(4.1) NL; s. 28(4.1) NS Offshore renewables revenues to Canada | Data unavailable | As incurred | s. 97.1 NL; s. 99.1 NS Participant funding | Data unavailable | As established | Part III – Participant Funding Program

Proponents' View#

• Builds a “one‑window” style regime for offshore renewables by expanding the existing joint boards, which reduces uncertainty and duplication for developers (s. 9; Division V – Offshore Renewable Energy).
• Improves safety and environmental protection by extending the proven offshore safety system, mandatory authorizations, impact assessment gatekeeping, and fitness declarations to renewables (s. 138.01(3), 139.1 NL; s. 142.011(3), 143.1 NS; s. 138.012 NL; s. 142.013 NS).
• Protects sensitive areas by allowing cabinet to prohibit oil, gas, or renewable activities in areas that are or may be designated for conservation, with structured compensation for affected interest holders (s. 56.1, 56.2–56.5 NL; s. 59.1, 59.2–59.5 NS).
• Provides clear seabed access through submerged land licences, transparent bid calls, and published criteria, which can speed early-stage site control (Division V – Calls for bids and publication).
• Sets clear liability and financial assurance rules for renewable project debris, including $1 billion no‑fault liability, which protects fishers, Indigenous harvesters, and the public (s. 183.19–183.21 NL; s. 188.19–188.21 NS).
• States principles for Canadian participation and inclusion of under‑represented groups in supply chains and jobs; directs consideration of effects on fishing (s. 96.6 NL; s. 98.7 NS).

Opponents' View#

• Adds ministerial approval to key renewable licensing steps, which could slow approvals and inject political risk; ministers can extend decision timelines and delay bid calls (ss. 40.1–40.3 NL; ss. 38.1–38.3 NS).
• Creates uncertainty by allowing prohibitions in areas that “may be” identified for conservation; while compensation exists, claims beyond set compensation are barred, which could chill investment (s. 56.1, 56.3(3) NL; s. 59.1, 59.5(3) NS).
• Increases developer costs with impact assessment gating, cost‑recovery fees, financial resource proofs, and security instruments; small or new entrants may face higher barriers (s. 29.1 NL; s. 30.1 NS; ss. 183.2 NL; 188.2 NS).
• Reduces monthly inspections for normally unattended renewable sites, which could pose oversight gaps if not managed carefully (s. 205.013(2), 205.019(1.1) NL; s. 210.013(2), 210.019(1.1) NS).
• Lets Regulators order governments and local authorities to act on abandoned facilities, creating potential unfunded obligations if orders are issued and later costs are disputed (s. 183.21 NL; s. 188.21 NS).
• Changes oil and gas tenure by capping future significant discovery licences at 25 years, which some may view as weakening long‑term security for marginal finds (s. 75(3) NL; s. 78(3) NS).