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Definitions
Section 2 of the Canadian Energy Regulator Act establishes statutory definitions for federal energy infrastructure regulation, including abandoned facilities and pipelines, oil and gas exports and imports, ground disturbance thresholds for pipeline protection, and incorporates Indigenous governing bodies and knowledge in energy decision-making processes.
Matters to be taken into account
The Canadian Energy Regulator must consider all written submissions and public hearing representations when approving pipeline construction plans, routes, and methods. The Regulator may approve sections where no submissions have been filed.
Rules
The Canadian Energy Regulator Tribunal may establish procedural rules governing compensation claims and reconsideration applications, including filing procedures, required information, hearing conduct, evidence formats, and quorum requirements.
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.
Section 3
This section has been repealed and contains no active regulatory content.
Financial resources
Applicants for Canadian Energy Regulator authorizations must demonstrate sufficient financial resources to cover Commission-determined amounts through prescribed forms or Regulator-specified methods. Proof must remain valid throughout the duration of authorized work or activity.
Purpose of Act
The Canadian Energy Regulator Act establishes federal regulatory authority over pipelines, power lines, offshore renewable energy facilities, and oil and gas exploration and exploitation. It mandates safe, secure, and efficient construction, operation, and abandonment while protecting people, property, and the environment, regulates energy product trade, and ensures fair, transparent, and efficient regulatory decision-making processes.
Conflict of Interest Act
Canadian Energy Regulator directors must disclose conflicts of interest, including direct involvement in hydrocarbon, electricity, or offshore energy production, trading, transmission, import/export; holdings of securities in energy corporations; and outside employment inconsistent with regulatory duties.
Vacancy
A vacancy on the board of directors of the Canadian Energy Regulator does not impair the authority or legal right of the remaining directors to act and conduct business.
Orders and prohibitions
The Canadian Energy Regulator Commission may issue binding orders requiring compliance with the CER Act and authorization conditions, and may prohibit activities that violate the Act or breach authorization terms or Commission directives.
Instructions regarding timeliness
The Lead Commissioner of the Canadian Energy Regulator may issue procedural instructions to commissioners handling applications to ensure timely processing and resolution of matters before the Commission.
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.
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.
Relief
The Canadian Energy Regulator Commission may grant applications wholly or partially and may impose additional or alternative relief beyond what was requested. This discretionary authority does not apply to certificate applications under Part 3 of the Act.
Suspension or revocation
The Canadian Energy Regulator may suspend or revoke an authorization by order if the holder requests it, consents to it, or breaches a condition. Before revoking for breach, the regulator must provide written notice and opportunity to be heard.
Powers of Regulator
Section 116 of the Canadian Energy Regulator Act grants the Regulator authority to establish standardized forms and short-form descriptions for violation notices, permits the Commission to designate persons to conduct regulatory reviews, and allows the Chief Executive Officer to designate officers authorized to issue violation notices.
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.
Regulations imposing fees, etc.
Section 142 of the Canadian Energy Regulator Act authorizes the regulator to impose fees, levies, and charges on pipeline operators to recover government costs from commodity release incidents. Primary liability falls on the responsible operator; if recovery is insufficient, fees extend to other operators transporting the same or similar commodities. Regulations prescribe fee calculation methods and interest rates on unpaid amounts, which become recoverable debts to the Crown.
Orders
The Canadian Energy Regulator Commission may issue orders governing the design, construction, operation, and abandonment of facilities crossing interprovincial and international power lines. Orders authorize facility crossings, regulate ground disturbances, govern vehicle operation, allocate construction costs, and specify activities. The Regulator may also make complementary regulations with Governor in Council approval.
Regulations
The Governor in Council may establish regulations governing offshore renewable energy projects and power lines, addressing safety, security, and environmental protection. Regulations may prohibit introduction of specified substances or forms of energy, establish record management and disclosure requirements, and provide arbitration procedures for disputes.
Variation of licences
The Canadian Energy Regulator Commission may vary licences issued under the Act either on its own initiative or upon application. Non-minor or non-technical variations require ministerial approval if deemed in the public interest. The Commission may impose new or modified conditions as necessary to fulfil the Act's purposes.
Reasonable care
Facility holders under the Canadian Energy Regulator Act must exercise all reasonable care to ensure the safety and security of persons, regulated and abandoned facilities, property, and the environment.
Payment by Regulator
Administrative provision requiring the Canadian Energy Regulator to pay remuneration and expenses for board members and staff as prescribed by the Canadian Energy Regulator Act.
Powers
The Canadian Energy Regulator Tribunal possesses the powers of a superior court within its jurisdiction, including authority to compel witness attendance, administer oaths, examine witnesses, demand document production, and enforce orders. The Tribunal is not bound by formal rules of evidence but must respect legal privileges recognized under evidence law.
Examinations
Under Canadian Energy Regulator Act section 156, a Tribunal may require claimants or applicants to undergo medical or other examinations deemed reasonably necessary for adjudicating compensation claims or reconsideration applications.
Written submissions
Under Canadian Energy Regulator Act section 158, a Tribunal may examine and adjudicate compensation claims or reconsideration applications based solely on written submissions, without requiring oral hearings.
Interim award of compensation
Under the Canadian Energy Regulator Act, a Tribunal may award interim compensation for compensation claims if authorized by regulations, and must notify the Regulator of the awarded amount.
Determining compensation
Under Canadian Energy Regulator Act section 163, a Tribunal determines whether to award compensation for claimed compensable damage, calculates amounts per regulations, and may award costs if authorized. The Tribunal must notify all parties of its decision, specifying compensation and cost amounts, any regulatory reductions, and previously paid amounts.
Regulations — Tribunal
Section 172 of the Canadian Energy Regulator Act grants the Governor in Council authority to establish regulations governing the Canadian Energy Regulator Tribunal, covering member appointment conditions, conflict of interest rules, chairperson powers and duties, procedures for member transitions, staff employment terms, and operational governance to enable the Tribunal's functions.
Orders of court
Court order provision under the Canadian Energy Regulator Act enabling judges to impose remedies on persons convicted of offences involving actual or potential unintended releases of oil, gas, or commodities from pipelines. Available remedies include operational prohibitions, environmental monitoring and audits, restoration, community service, publication of facts, notification requirements, financial penalties, compliance bonds, and educational donations, with orders valid for up to three years.
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.
Immunity
Inspection officers appointed under the Canadian Energy Regulator Act are granted civil immunity for actions or omissions made in good faith while exercising their statutory powers and performing duties under the Act.
Subsequent applications with leave
Section 177 of the Canadian Energy Regulator Act establishes that once a court has heard an application under subsection 176(1) against an offender, no further applications under section 176 against the same offender may be made without obtaining court permission.
Recovery of fines and amounts
Section 178 of the Canadian Energy Regulator Act allows prosecutors to enforce unpaid fines or court-ordered compensation by filing convictions or orders as civil judgments in any Canadian court, enabling collection through standard civil enforcement procedures.
Assets of company subject to executions
Section 341 of the Canadian Energy Regulator Act clarifies that the Act does not restrict financial or legal transactions involving company assets, including court-ordered asset sales, creation of liens, mortgages, and enforcement of security interests. Such transactions remain subject to applicable provincial laws where the property is located.
Role of Chief Executive Officer
Section 23 of the Canadian Energy Regulator Act establishes the Chief Executive Officer's responsibilities for managing the regulator's day-to-day operations and supervising employees, while explicitly prohibiting direction of specific Commission decisions. The CEO holds deputy head rank with corresponding departmental powers, and interim executives may serve up to 90 days pending Governor in Council approval.
Application for certificate
Pipeline companies applying to the Canadian Energy Regulator for a certificate must submit detailed maps showing the pipeline's general location along with required plans and specifications. Applicants must file copies with provincial attorneys general, and the Regulator must ensure public notice through newspaper publication or other appropriate media.
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.
Order to reconsider
Section 184 of the Canadian Energy Regulator Act enables the Governor in Council to order the Commission to reconsider its report recommendations or conditions. Orders are binding and must be published in the Canada Gazette within 15 days. The Commission must submit a reconsideration report confirming, modifying, or replacing recommendations and conditions while addressing all necessary public interest factors. The reconsideration report is final unless another order is issued.
Recommendation to vary or transfer
Under the Canadian Energy Regulator Act section 191, the Governor in Council may issue orders directing the Commission to vary or transfer energy certificates as recommended, decline the variation or transfer, or direct reconsideration of the matter.
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.
Order to reconsider
Section 193 of the Canadian Energy Regulator Act grants the Governor in Council authority to order the Commission to reconsider its decisions, with discretion to specify factors for consideration and completion timelines. The Commission must report any resulting changes to its recommendations back to the Governor in Council.
Duty to consider — Commission
The Canadian Energy Regulator and its designated officers must consider potential adverse effects on Indigenous rights recognized under section 35 of the Canadian Constitution when making decisions, orders, or recommendations under the Canadian Energy Regulator Act.
Inconsistencies
Section 79 of the Canadian Energy Regulator Act establishes a conflict-resolution hierarchy: arrangements under section 77 prevail over those under section 76 to the extent of any inconsistency between them.
Study and review
The Canadian Energy Regulator must continuously study and review energy exploration, production, processing, transmission, transportation, distribution, and trade activities both domestically and internationally, and oversee the safety and security of regulated and abandoned facilities.
Orders
The Canadian Energy Regulator may issue orders requiring facility holders to repair, reconstruct, or alter regulated facilities to ensure safety, security, and environmental protection. Orders can be directed at Indigenous bodies, governments, third parties, and others. Non-compliance authorizes the Regulator to take direct action or engage third parties, with liability protection for good-faith interventions.
Exemption orders
The Canadian Energy Regulator Commission may issue conditional exemption orders relieving regulated facility holders from specific regulatory provisions when necessary to ensure safety and security of persons and facilities, protect property, or safeguard the environment.
Prohibition — obstruction
Section 106 of the Canadian Energy Regulator Act prohibits any person from obstructing or hindering inspection officers while they exercise their powers or perform their duties and functions under the Act.
Prohibition — false statements or information
Section 107 of the Canadian Energy Regulator Act prohibits knowingly making false or misleading statements or providing false information to inspection officers exercising regulatory powers regarding energy matters.
Regulations
Section 98 of the Canadian Energy Regulator Act empowers the Governor in Council to establish regulations requiring pipeline operators to monitor facilities and implement preparedness and response measures for unintended or uncontrolled releases of oil, gas, or other commodities.