Northern Pipeline Agency’s Progress Report Red Tape Review

Published by: Natural Resources Canada

Table of Contents

• Context
• Progress on Red Tape: Past, Present and Future
• Next Steps

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Context

The Northern Pipeline Agency (NPA) was created with the proclamation of the Northern Pipeline Act (the Act) in April 1978 to oversee the planning and construction of the Canadian portion of the Alaska Highway Natural Gas Pipeline Project by the Foothills Group of Companies (Foothills). Since 2003, the Minister of Energy and Natural Resources has been responsible for the Act and for the management and direction of the NPA. The Deputy Minister of Natural Resources Canada serves as the Commissioner and Deputy Head of the NPA. Since 2013, the NPA has been in a ramped-down condition with annual operating expenditures well under $400,000 for the past five years, which are cost-recovered.

The NPA has a twofold mandate. First, it carries out the Government of Canada’s responsibilities in relation to the pipeline project and facilitates the efficient and expeditious planning and construction of the pipeline, taking into account local and regional interests, in particular those of Indigenous peoples. Secondly, it maximizes the social and economic benefits from the construction and operation of the pipeline while at the same time minimizing any adverse effect on the social and environmental conditions of the areas most directly affected by the pipeline.

Between 1979 and 1981, Foothills constructed over 900 kilometres (km) of the project—called the Prebuild portion—in the southern British Columbia, Alberta and Saskatchewan area. In 1982, Foothills put the northern portion between the Alaska/Yukon border and central Alberta, a distance of over 2,100 km, on hold. Over the subsequent years, Foothills made attempts to advance the project; however, fluctuating market and economic conditions caused the project to be put on hold. In 2008, TC Energy, which owned Foothills, again advanced the project and undertook updated field studies along the pipeline route, but in 2013 Foothills put the project on hold again.

Should Foothills advance the project, the NPA would ramp up accordingly and be a single window federal entity to rapidly and efficiently execute regulatory processes and necessary authorizations. The NPA would enforce some of the strictest safety and environmental standards in the world, and remains committed to the implementation of the United Nations Declaration on the Rights of Indigenous Peoples Act, including the obligation to consult and cooperate with Indigenous peoples on measures to ensure that federal laws and regulations are consistent with the Declaration.

The NPA is pleased to participate in the broader government-wide Red Tape Review initiative launched by the President of the Treasury Board on July 9, 2025. This progress report sets out the NPA’s planned future efforts in supporting the Government of Canada’s regulatory modernization and red tape reduction agenda. The NPA is planning to explore ways to further reduce administrative complexity and spend less on operational costs by eliminating or streamlining the amount of internal-to-government reporting that the NPA is obligated to meet. In addition, the NPA intends to take concrete action to eliminate requirements that are outdated and no longer required for a modern pipeline project and explore the underpinning need for a separate legislation and agency—while upholding strong environmental protections and Indigenous engagement standards.

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Progress on Red Tape: Past, Present and Future

The Act already contains many aspects that are aligned with the principles of the Building Canada Act, empowering the government to accelerate nation-building projects in consultation with Indigenous peoples.

While the NPA has made measured progress in advancing the Government of Canada’s red tape reduction objectives, there is more to be done. The NPA plans a two-pronged approach:

Theme 1: Reducing Administrative Burden and Operational Costs

Reduced Federal Reporting Obligations

The NPA is striving to reduce administrative complexity and operational costs by eliminating or streamlining the amount of internal-to-government reporting. Even though it is ramped down, the NPA exists as a federal organization and, as such, it is required to prepare and submit over 20 plans and reports each year pursuant to certain federal legislation and Treasury Board policies and directives. This reporting effort forms a significant amount of the operational costs of the NPA and offers little benefit given the agency has few activities that need to be subject to these reports.

While the NPA recognizes the horizontal importance of these requirements across the federal departments and the associated transparency through reporting, it creates inefficient and complicated internal processes that are not proportionate to an agency in a ramped down status.

The NPA intends to engage with its federal counterparts to seek ways to eliminate or streamline reporting where there is not a commensurate benefit or contribution to public health, safety, security, the environment, and other policy objectives.

Theme 2: Eliminating outdated Requirements and Modernizing the Regulatory System for Approved Major Projects

Getting major projects built in Canada is a priority. In the past, the NPA has successfully collaborated with various federal departments and agencies to accelerate decision-making and improve the delivery of project assessments, permits, licenses, and authorizations for the Pre-build portion of the project. However further actions can be taken by advancing targeted legislative and regulatory reforms to eliminate outdated requirements and to modernize certain requirements should the project advance.

Eliminating outdated and modernizing existing Regulatory Requirements on an approved pipeline project

Since 1978, the regulatory regime for major pipeline projects has evolved significantly. Certain requirements are now outdated or could cause unpredictable regulatory administration, as it applies to the remaining 2,100 km of the pipeline project that has been approved. As a result, the NPA will in the short to medium term identify and eliminate or modernize the continuing need for certain regulatory requirements set out in the Act, including the project terms and conditions, as well as its associated statutory instruments.

Legislative and Operational Framework Improvements

Upon the recommendation of the National Energy Board in 1976 to create a separate and independent agency to oversee the planning and construction of the Alaska Highway Natural Gas Pipeline project, the Northern Pipeline Act was passed in 1978 and the Northern Pipeline Agency created. While the NPA successfully oversaw the construction of the project Pre-build and associated expansions, the NPA has been in a ramped-down condition since 2013.

Given the length of time of inactivity, this presents an opportunity to explore the ongoing need for a stand-alone piece of legislation and/or independent agency. While the Northern Pipeline Act has several unique characteristics, including the approval of the project, Crown consultation responsibilities, and the ability to consolidate applicable federal permitting authorities to one minister, there could be options explored in the short term to identify whether alternative approaches should be considered. The NPA Commissioner will provide recommendations to the Minister by the end of 2025–2026.

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Next Steps

The NPA will focus its red tape initiatives with targeted actions planned over the short and medium term, and will:

• Identify and implement reductions or streamlining of internal-to-government reporting requirements commensurate with an Agency that is in a ramped-down condition
• Identify and seek opportunities to reduce and modernize legislative and regulatory requirements that are outdated and burdensome
• Explore options for the ongoing need for a separate legislation and agency to oversee a single pipeline project
• Engage stakeholders—including provinces, territories, Indigenous peoples, and Foothills—on proposed initiatives
• Track and report on progress to the Minister to ensure accountability and transparency.