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Delay of issuance
The Canadian Energy Regulator may recommend to the Minister that an electricity export application be designated by Governor in Council order and may delay permit issuance during this process. The Commission must avoid duplicating provincial measures, consider effects on other provinces, verify the applicant offered domestic buyers fair access to available electricity at comparable terms, and account for regulatory factors.
Where licence required
Under the Canadian Energy Regulator Act, the Governor in Council may designate electricity export applications and revoke permits within 45 days of issuance. When such an order is made, permits cannot be issued and the application must be processed as a licence application instead.
Issuance
The Canadian Energy Regulator Commission may issue electricity export licences subject to Governor in Council approval. Before issuing, the Commission must consider interprovincial effects, confirm applicants have informed domestic buyers of available quantities and service classes, and given domestic buyers equal opportunity to purchase on comparable terms. Any existing permits are revoked if the export licence is denied.
Conditions — permits
The Canadian Energy Regulator Commission may impose conditions on permits and licences as deemed necessary or in the public interest, with permit conditions limited to matters prescribed by regulations and licence conditions applied at the Commission's discretion.
Compliance
All permits and licences issued under the Canadian Energy Regulator Act are conditional upon compliance with the Act, its regulations, and orders made thereunder.
Variation or transfer of permits or licences
The Canadian Energy Regulator Commission may vary or transfer permits and licences for electricity exportation either upon application or its own initiative. When doing so, the Commission may impose new or modified conditions it deems necessary to fulfil the Act's purposes and provisions.
Suspension or revocation of permits or licences
The Canadian Energy Regulator Commission may suspend or revoke electricity export permits or licences if the holder requests revocation, consents to suspension, or breaches permit conditions. The Commission must provide written notice of alleged contraventions and grant the holder an opportunity to respond before enforcement action.
Order in Council
The Governor in Council may issue orders placing supervision and control of designated oil or gas movement from specified areas under the Canadian Energy Regulator. While such an order is in force, persons moving designated oil or gas from the area must hold a licence under the relevant Division or comply with applicable regulations.
Issuance
The Canadian Energy Regulator Act s. 370 authorizes the Commission to issue licenses permitting movement of designated oil or gas out of designated areas, subject to regulatory conditions and compliance with the Act, its regulations, orders, and applicable provisions of the Energy Administration Act.
Sentencing principles
Section 174 of the Canadian Energy Regulator Act mandates sentencing principles for pipeline offences involving unintended or uncontrolled releases of oil, gas, or commodities. Courts must increase fines based on aggravating factors including harm to human/environmental safety, intentional or reckless conduct, financial motivation, prior non-compliance, and post-offence concealment or failure to mitigate. Courts must provide written reasons if declining to apply identified aggravating factors.
Criteria
Before issuing an oil or gas licence, the Canadian Energy Regulator must consider all relevant factors including equitable distribution of designated oil and gas resources across Canada. Sections 348 to 351 of the Act apply to such licences.
Principle
The Canadian Energy Regulator must give effect to CUSMA, CCFTA, and CCRFTA trade agreements. The Governor in Council may issue binding directions to the Regulator regarding performance of this duty or interpretation of these agreements, which apply to pending matters unless otherwise specified.
Declaration of Governor in Council
The Governor in Council may issue an order declaring that restrictions on exporting energy goods to Chile or Costa Rica are justified under provisions of the Canada-Chile Free Trade Agreement or Canada-Costa Rica Free Trade Agreement.
Request for declaration
The Canadian Energy Regulator may suspend its determination of licence or permit applications for energy exports to Chile or Costa Rica for up to 120 days if it considers restrictions in the public interest and applicable under relevant trade agreements, to allow the Minister to request a Governor in Council order.
Exportation to Chile or Costa Rica
The Canadian Energy Regulator cannot refuse, suspend, revoke or vary licenses or permits for energy goods exported to Chile or Costa Rica if doing so would breach obligations under the Canada-Chile Free Trade Agreement or Canada-Costa Rica Free Trade Agreement, except during suspension orders or with the license holder's consent.
No declaration made
The Canadian Energy Regulator may issue export licences for energy goods to Chile or Costa Rica without meeting standard criteria if the Minister declines to recommend an order, the Governor in Council declines to make one, or no order is issued within 120 days of the export request.
Powers of certain officers
Section 380 of the Canadian Energy Regulator Act grants customs officers enforcement authority over oil and gas imports and exports, conferring all powers under the Customs Act including search, seizure, detention, forfeiture, and condemnation to ensure compliance with export and import controls.
Definitions of oil and gas
Regulation establishes that oil and gas definitions under the Canadian Energy Regulator Act Part reference those defined in subsection 2(1) of the Canada Oil and Gas Operations Act, providing a single consistent definitional framework across both statutes.
Variation of licences or authorizations
The Canadian Energy Regulator Commission or its delegates may modify the conditions of operating licences or authorizations issued under the Canada Oil and Gas Operations Act, providing regulatory flexibility in managing oil and gas operations.
Application to appeals
Section 384 of the Canadian Energy Regulator Act establishes the appellate framework allowing the Commission to review decisions by the Chief Conservation Officer under the Canada Oil and Gas Operations Act. Following an appeal hearing, the Commission may set aside, confirm, or vary orders; direct remedial works to prevent waste or oil/gas escape; or issue other appropriate orders.
Application
Under the Canadian Energy Regulator Act, the Commission must review orders referred by the Chief Safety Officer or Chief Conservation Officer. The Commission may confirm or set aside such orders, with the burden on the requesting party to establish that the order is unnecessary.
Offence and punishment
Section 387 of the Canadian Energy Regulator Act establishes criminal penalties for non-compliance with Commission orders under sections 384-385. Summary conviction carries fines up to $100,000 and/or one year imprisonment; indictable conviction carries fines up to $1,000,000 and/or five years imprisonment. A due diligence defence is available, and Canada Oil and Gas Operations Act provisions apply.
Regulations respecting accounts, etc.
The Canadian Energy Regulator may establish regulations governing accounting practices and record-keeping for pipeline operators, oil/gas/electricity exporters, and licensed entities. Requirements cover account maintenance methods, depreciation accounting, uniform account systems, and submission of records on capital, revenues, expenses and operational matters. Violations are summary offences unless due diligence is demonstrated.
Security regulations
The Canadian Energy Regulator is authorized to establish security regulations for pipelines, international power lines, and offshore renewable energy projects, including standards, plans, and audit requirements. Violations are criminal offences with penalties up to $100,000 and one year imprisonment on summary conviction, or $500,000 and five years on indictment, though a due diligence defence is available.
Review of Act after 10 years
The Canadian Energy Regulator Act mandates a comprehensive parliamentary review of the Act's provisions and operation ten years after its coming into force, to be conducted by a designated Senate, House of Commons, or joint parliamentary committee.
Variation of sanctions
Under Canadian Energy Regulator Act section 176, courts may vary sanctions orders against offenders upon application if circumstances have changed. Courts can modify prohibitions, directions, requirements, or conditions; extend enforcement duration up to one year; reduce duration; or partially or fully relieve compliance obligations after hearing the offender, regulator, and interested parties.
Coming into force and cessation of effect — Commission
Section 67 of the Canadian Energy Regulator Act empowers the Commission, designated officers, and inspection officers to specify effective and cessation dates for authorization documents and orders, or impose conditions controlling their timing. Interim orders may be issued with decisions reserved, except for Part 3 certificates.
Application
Section 382 of the Canadian Energy Regulator Act establishes procedural requirements for Commission decisions on declarations of significant or commercial discovery under the Canada Petroleum Resources Act. The Commission must provide at least 30 days' written notice to affected persons, allow written hearing requests within 30 days, conduct hearings where requested, and publish decision reasons upon request.
Rules
The Canadian Energy Regulator Commission is authorized to establish procedural rules governing its operations, including the powers and duties of commissioners, conduct of hearings, issuance of decisions and orders, and internal administrative procedures.
Recommendations on cooperative measures
The Canadian Energy Regulator may recommend measures to the Minister that it deems necessary or appropriate to facilitate cooperation with governmental and other agencies in Canada and internationally on energy matters, energy sources, and the safety and security of regulated and abandoned facilities.
Voluntary reporting
The Canadian Energy Regulator may establish voluntary reporting systems for alleged non-compliance with the Canadian Energy Regulator Act, subject to Governor in Council approval. Regulations may protect reporter identity, making identity-revealing information privileged and inadmissible in legal or disciplinary proceedings. Reports from protected systems cannot be used against the reporter.
Regulations
Section 221 of the Canadian Energy Regulator Act authorizes the Governor in Council to establish regulations for pipeline sections crossing navigable waters, covering design, construction, operation, safety, security, deviations, relocation, and abandonment. Violations are prosecutable as summary conviction offences.
Power to review, vary or rescind — Commission
Section 69 of the Canadian Energy Regulator Act empowers the Commission and designated/inspection officers to review, vary, rescind decisions and orders, and re-hear applications. This authority excludes operating licences, authorizations under sections 382–383, and development plan approvals under the Canada Oil and Gas Operations Act.
Definitions
This section establishes key definitions under the Canadian Energy Regulator Act for regulatory jurisdiction and scope. 'Designated area' includes Canadian provinces, Sable Island, and federal submarine territories where Canada controls resource rights. 'Designated oil or gas' refers to specific oil or gas products subject to regulatory orders. 'Movement' covers domestic transportation of oil or gas but excludes exports.
Definition of document of authorization
Section 9 of the Canadian Energy Regulator Act defines 'document of authorization' as regulatory instruments issued by the CER, including certificates, permits, authorizations, licenses, and orders that establish the legal framework for energy infrastructure regulation in Canada.
Regulations
Section 333 of the Canadian Energy Regulator Act grants the Regulator authority to establish regulations governing land acquisition, leasing, expropriation, and compensation for energy projects. The regulations may address compensation procedures, notice service requirements, acquisition processes, agreement terms, approval criteria, and filing of voluntary landowner agreements.
Consent of Yukon first nation or Governor in Council
Under Canadian Energy Regulator Act section 318, energy companies must obtain consent from relevant Yukon First Nations or the Gwich'in Tribal Council before using settlement land or Tetlit Gwich'in Yukon land. If consent is denied, the Governor in Council may authorize use after a public hearing with notice to affected parties. Companies must compensate First Nations for land use or injurious effects from pipeline construction.
Methods of acquisition or lease
Canadian pipeline companies acquiring or leasing land must include contractual provisions for compensation (lump-sum or periodic payments reviewed every five years), operational damages, indemnification (excluding owner gross negligence or willful misconduct), land-use restrictions, and compensation for adverse effects on remaining lands.
Abandoned facilities
Under Canadian Energy Regulator Act section 101, persons must obtain authorization from a designated officer before contacting, altering, or removing abandoned energy facilities. The Regulator may establish regulations and the Commission may issue orders specifying circumstances in which such authorization is not required.
Offence and punishment
Section 223 of the Canadian Energy Regulator Act establishes criminal penalties for contraventions of reporting and operational requirements. Indictable offences carry fines up to CAD $1,000,000 and/or imprisonment up to five years; summary convictions carry fines up to CAD $100,000 and/or imprisonment up to one year.
Commission
The Canadian Energy Regulator shall comprise up to seven full-time commissioners, with provision for part-time members, and must include at least one Indigenous full-time commissioner.
Lead Commissioner’s powers
Section 49 of the Canadian Energy Regulator Act preserves the Lead Commissioner's independent authority to issue corrective and preventive enforcement measures against energy sector entities, ensuring regulatory discretion is not constrained by procedural requirements elsewhere in the Act.
Section 3
This section has been repealed and contains no active regulatory content.
Annual report
The Canadian Energy Regulator's board must submit an annual report to the Minister within 120 days of each fiscal year end (March 31), detailing the Regulator's activities. The Minister must table the report in Parliament within 15 sitting days of receipt.
Pooled fund
Canadian pipeline operators may satisfy financial liability requirements for commodity releases by participating in a regulated pooled fund established by authorized pipeline companies. Operators must maintain additional reserves equal to any shortfall between their liability requirements and pooled fund access. The Governor in Council may establish regulations governing minimum fund levels, contribution and withdrawal limits, and participation conditions.
Conflict of Interest Act
Canadian Energy Regulator commissioners must disclose conflicts of interest including direct involvement in hydrocarbon, electricity, or offshore energy production, trading, transmission, or import/export; holdings in energy corporation securities; incompatible employment; or employment with the Regulator itself.
Notice of proposed acquisition or lease of lands
Pipeline companies must notify all identifiable landowners of lands required for pipeline construction or operation, providing detailed descriptions of required lands, compensation valuations, route approval procedures, and dispute resolution options. Pre-notice agreements are void, and companies are liable for all damages if they subsequently abandon acquisition or lease plans.
Role of the board of directors
Section 17 of the Canadian Energy Regulator Act establishes the board of directors' governance role, requiring it to provide strategic direction and advice to the Regulator while being prohibited from influencing specific Commission decisions or recommendations. The board may establish bylaws for its operations, with quorum defined as a majority of directors including the Chairperson.
Appointment
Section 28 of the Canadian Energy Regulator Act establishes the appointment and governance framework for CER commissioners. Commissioners are appointed by the Governor in Council for terms up to six years, with a maximum total tenure of ten years. Appointees must be Canadian citizens or permanent residents and cannot be directors. The Governor in Council sets remuneration and covers reasonable travel and other expenses.
Annual report
The Canadian Energy Regulator must submit an annual report to the Minister within 120 days following each fiscal year ending March 31, detailing its activities under the Act. The Minister must present the report to Parliament within 15 sitting days of receipt. Additional reports may be submitted at the regulator's discretion.