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Establishment and composition
The Canadian Energy Regulator is governed by a board of 5–9 directors, including a Chairperson and Vice-Chairperson, with at least one director required to be an Indigenous person.
General or particular application
The Canadian Energy Regulator or a designated officer may issue orders, directions, and impose conditions either generally across all regulated entities or specifically for particular cases or classes of cases, enabling flexible regulatory application.
Governor in Council directions
Section 13 of the Canadian Energy Regulator Act empowers the Governor in Council to issue binding policy directions to the Canadian Energy Regulator on broad matters within its regulatory mandate. All such directions must be published in the Canada Gazette and tabled in Parliament.
Temporary prohibition — ground disturbances
The Canadian Energy Regulator prohibits ground disturbances near international or interprovincial power lines for three working days after a location request is made, or until a later agreed date. The Commission may grant exemptions under appropriate conditions.
Acting Lead Commissioner
The Deputy Lead Commissioner of the Canadian Energy Regulator may assume the Lead Commissioner role during absence, incapacity, or vacancy, but cannot act for more than 90 days without Governor in Council approval.
Where certificate required
Under Canadian Energy Regulator Act section 258, the Governor in Council may designate international power lines by order to require certificate-based regulation instead of permits. Any existing permit must be revoked within 45 days of permit issuance. Once designated, no new permits may be issued and all applications must be processed as certificate applications.
Registration of plans, etc.
Land registrars must receive, preserve, and provide public access to plans, profiles, books of reference, and documents required under the Canadian Energy Regulator Act. Registrars must endorse deposits with date/time stamps, provide certified copies at reasonable fees, and certify proper deposit and execution. Certified copies serve as legal evidence of original documents and their submission time.
Issuance
Section 262 of the Canadian Energy Regulator Act governs certification of international and interprovincial power lines. The Commission may issue certificates if satisfied the power line serves present and future public convenience and necessity, considering environmental effects, safety, Indigenous rights and consultation, health and socioeconomic impacts, and climate commitments. Decisions must be made within 300 days of a complete application, subject to Governor in Council approval within 90 days.
Power lines not works
International and interprovincial power lines subject to Canadian Energy Regulator orders are excluded from the definition of 'work' under the Canadian Navigable Waters Act, removing them from that Act's regulatory jurisdiction.
Application
Section 271 of the Canadian Energy Regulator Act establishes CER jurisdiction over international and interprovincial power lines. The CER may issue permits and certificates for power lines crossing borders or within federal authority, including those crossing navigable waters. The CER may also authorize power line relocations to facilitate facility construction or reconstruction.
Prohibition — construction or ground disturbance
Section 273 of the Canadian Energy Regulator Act prohibits construction, ground disturbance, and vehicle/mobile equipment operation on, across, or under international and interprovincial power lines without CER authorization. Exceptions permit vehicle operation on travelled highways and public roads. The CER Commission may order facility owners to reconstruct, alter, or remove installations that threaten line safety or security.
Prohibition
Operators of international or interprovincial power lines must obtain Canadian Energy Regulator Commission approval before abandoning operations. The Commission may grant abandonment authorization by order upon application by the permit or certificate holder.
Variation or transfer of certificates
The Canadian Energy Regulator may vary or transfer energy certificates issued under the Act either on its own initiative or upon application. The Minister may direct the Regulator to recommend variations to the Governor in Council if deemed in the public interest. The Regulator may impose necessary or appropriate conditions when varying or transferring certificates to effect the Act's purposes.
Use of government agencies
The Canadian Energy Regulator must utilize Government of Canada agencies to obtain technical, economic, and statistical information and advice when exercising its powers and performing duties under sections 80 to 84 of the Canadian Energy Regulator Act.
Suspension or revocation of permits
The Canadian Energy Regulator may suspend or revoke permits by order when a permit holder applies for or consents to suspension/revocation, or when the holder breaches permit conditions. The regulator must provide written notice and an opportunity to be heard before revoking a permit for breach.
Advisory committee
The Canadian Energy Regulator must establish an advisory committee with mandatory representation from First Nations, Inuit, and Métis organizations to enhance Indigenous participation in regulatory decisions affecting pipelines, power lines, offshore renewable energy projects, and abandoned pipelines.
General rule
Section 238 of the Canadian Energy Regulator Act requires pipeline and commodity transmission companies to disclose liability limitations in filed tariffs, obtain Commission approval, or have regulatory authorization. The Commission determines permissible liability limits and prescribes transmission conditions for hydrocarbons and other commodities.
Regulations
The Governor in Council may establish regulations under the Canadian Energy Regulator Act to prescribe permit conditions, specify application information requirements, define considerations for designating international power lines, and establish procedures for filing elections related to energy regulation.
Security regulations
The Canadian Energy Regulator is authorized to establish security regulations for energy facilities, including physical security standards, security plans, audits, and cybersecurity requirements. Violations are criminal offences with maximum penalties of $500,000 fine and five years imprisonment on indictment, or $100,000 fine and one year imprisonment on summary conviction.
Issuance and service of notice of violation
Section 120 of the Canadian Energy Regulator Act enables designated persons to issue notices of violation to those reasonably believed to have committed regulatory offences. Notices must identify the violator, describe relevant facts, state the penalty amount, and inform recipients of their right to request review and payment procedures. Failure to pay or request review within the specified period results in deemed violation and liability.
Offence and punishment
Section 292 of the Canadian Energy Regulator Act imposes criminal penalties for contraventions of specified regulatory provisions. Indictable convictions carry fines up to CAD $1 million and imprisonment up to five years; summary convictions carry fines up to CAD $100,000 and up to one year imprisonment.
Object of review
Section 128 of the Canadian Energy Regulator Act establishes the administrative review process for regulatory penalties. The Commission or reviewing officer determines whether penalties were correctly calculated per regulations and whether violations occurred, issuing written determinations with reasons. Miscalculated penalties must be corrected. Determinations are final and binding, subject only to judicial review by the Federal Court.
Issuance
The Canadian Energy Regulator may issue authorizations for offshore renewable energy projects and associated power lines. Applications must include prescribed information about proposed works, facilities, and equipment. The regulator must decide within 300 days, considering environmental effects, safety, health, social and economic impacts, Indigenous interests and rights, climate change alignment, and relevant impact assessments before imposing conditions.
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.
Application
Section 264 of the Canadian Energy Regulator Act defines CER jurisdiction over three categories of power lines: international lines with filed elections, unregulated portions of international lines in provinces without designated regulatory agencies, and interprovincial lines subject to regulatory orders.
Right of entry
Section 309 of the Canadian Energy Regulator Act establishes the right for persons to enter and use offshore areas to conduct authorized works, manage abandoned offshore power lines, or develop offshore renewable energy projects. Lawful occupants may restrict access; disputes over entry rights are resolved through arbitration.
Purpose
Section 136 of the Canadian Energy Regulator Act establishes that sections 137–142 reinforce the polluter-pays principle by imposing financial requirements on companies authorized to construct or operate pipelines in Canada.
Damages and compensation
Under the Canadian Energy Regulator Act, companies exercising regulatory powers must minimize operational damage and provide full compensation to affected parties for harm resulting from lawful exercise of those powers.
Chairperson
Section 149 of the Canadian Energy Regulator Act establishes the appointment and governance structure of a Tribunal Chairperson, who is designated by the Governor in Council on ministerial recommendation. The Chairperson allocates work among tribunal members, assigns members to panels, designates panel presiders, and supervises tribunal staff operations.
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.
Hearings
The Canadian Energy Regulator Act requires tribunals conducting regulatory proceedings to hold hearings within Canada at dates, times, and locations determined at the tribunal's discretion.
Construction — facility
Under Canadian Energy Regulator Act section 272, persons constructing international or interprovincial power lines crossing facilities must obtain a CER permit or certificate with facility-related conditions, secure Commission leave, or meet regulatory circumstances. The Commission may impose conditions and grant retroactive leave if work was urgent and prior notice was given.
Conditions — permit
The Canadian Energy Regulator Commission may impose conditions on permits and certificates it issues, including those prescribed by regulations and any others the Commission deems necessary or in the public interest.
Exercise of powers outside Canada
Canadian pipeline companies may exercise their regulatory and operational powers beyond Canada's international boundary, but only to the extent permitted by applicable foreign laws in the jurisdiction where the pipeline operates.
Offence and punishment — duty to assist and orders
Section 112 of the Canadian Energy Regulator Act establishes criminal penalties for non-compliance with CER duties and orders. Violations of section 103(4) or failure to comply with section 109 orders result in fines up to $1,000,000 and/or five years imprisonment on indictment, or up to $100,000 and/or one year on summary conviction. Contraventions of sections 106 and 107 carry summary conviction fines of up to $100,000 for first offences and up to $300,000 for subsequent offences.
Report
The Canadian Energy Regulator must prepare a report within 450 days on pipeline certificate applications, recommending approval or denial based on public convenience and necessity. The evaluation must consider environmental and cumulative effects, safety, Indigenous interests and rights, market feasibility, economic viability, financial capacity, and alignment with Canada's climate commitments.
Compliance
All permits and certificates issued under the Canadian Energy Regulator Act must comply with the Act, its regulations, and applicable federal and provincial orders made under this Act or provincial laws. Non-compliance constitutes a violation of permit and certificate terms.
Order to reconsider
The Canadian Energy Regulator Act grants the Governor in Council authority to order the Commission to reconsider prior decisions, optionally specifying factors and timelines for completion. If reconsideration results in changed recommendations, the Commission must report those changes to the Governor in Council.
Order designating Minister
Administrative provision enabling the Governor in Council to designate a federal minister responsible for administering the Canadian Energy Regulator Act.
Orders of Commission
The Canadian Energy Regulator may issue orders determining compensation for pipeline and abandoned pipeline projects, including land acquisition, leasing, use restrictions, and damages from company activities during planning, construction, operation, or abandonment phases, with compensation assessments guided by statutory factors.
Definitions
Section 93 of the Canadian Energy Regulator Act defines key terms for pipeline claims proceedings: compensable damage (costs, losses, and damages awarded by the Tribunal), holder (entities holding certificates, permits, or authorizations for regulated facilities, pipelines, power lines, or abandonment permits), and Tribunal (the pipeline claims tribunal).
Proof of violation
Section 119 of the Canadian Energy Regulator Act establishes that a corporation may be held liable for violations committed by its employees, agents, or mandataries without requiring identification or separate prosecution of the individual actor.
Debts to Her Majesty
Administrative provision under the Canadian Energy Regulator Act establishing that penalties imposed by the regulator are debts owed to the Crown, recoverable through Federal Court or other competent jurisdiction. Enforcement actions must be commenced within five years of the debt's due date.
Recovery of loss, damage, costs, expenses
Section 137 of the Canadian Energy Regulator Act imposes joint and several liability on pipeline operators and contractors for unintended or uncontrolled releases of oil, gas, or other commodities. Liable parties must cover actual losses, response costs, and loss of non-use value. Liability is capped at $1 billion for major pipelines (≥250,000 barrels/day capacity); smaller pipelines face prescribed regulatory amounts. Claims recover in Canadian courts with priority ranking favoring actual loss over cost recovery, which ranks above non-use value claims.
Regulations
The Governor in Council may establish regulations delegating technical and administrative powers, duties, and functions of the Canadian Energy Regulator to designated officers, including specifying the circumstances and procedures for their exercise.
Amount to be paid
Section 164 of the Canadian Energy Regulator Act specifies payment obligations for the Regulator to compensate claimants. The Regulator must pay interim and final compensation amounts, costs, and interest (accrued at the Income Tax Act refund rate) within prescribed timeframes, as well as tribunal-awarded fees and travel expenses as authorized by regulations.
Grounds
Tribunal decisions under the Canadian Energy Regulator Act are final and binding, subject only to judicial review under the Federal Courts Act on limited grounds including lack of jurisdiction, procedural fairness, and patent unreasonableness.
Examination of site of mining operations
Under the Canadian Energy Regulator Act, pipeline companies may enter mining or prospecting sites within or near their rights-of-way with 24 hours' written notice and regulatory authorization to inspect whether operations pose safety or security risks to the pipeline or persons. Companies may use site equipment to measure distances from the pipeline to operations.
Determinations regarding compensation
Under Canadian Energy Regulator Act section 327, the Commission determines compensation disputes between energy companies and landowners when parties cannot agree. The Commission considers market value of acquired lands, changes in value over time, loss of use, adverse effects on remaining lands, nuisance and noise from operations, potential damage from company activities, livestock/property loss, relocation difficulties, and other relevant circumstances.
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.