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Regulations — Governor in Council
Section 372 of the Canadian Energy Regulator Act authorizes the Governor in Council to establish regulations governing the export licensing, movement, and inspection of designated oil and gas from Canada. The Regulator may prescribe license application requirements, validity periods, export quantities, inspection standards for related equipment and records, and measurement units for oil and gas transportation.
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.
Mandate
The Canadian Energy Regulator's mandate encompasses making transparent decisions and orders on pipelines, power lines, and offshore renewable energy projects; overseeing their construction, operation, and abandonment; setting traffic, tolls, and tariffs; managing oil and gas interests; providing advisory services and dispute resolution; and exercising authority while respecting Indigenous peoples' rights.
Show cause hearing relating to waste
Under the Canadian Energy Regulator Act, the Commission holds show cause hearings on applications by the Chief Conservation Officer regarding waste in oil and gas pool recovery. If waste is found, the Commission may order gas collection, processing, reinjection schemes, or pool repressurizing/recycling, and may shut in non-compliant pools unless approved schemes are operational by specified dates.
Inconsistencies
Section 43 of the Canadian Energy Regulator Act establishes regulatory hierarchy, providing that instructions issued under section 41 and measures taken under section 42(1) take precedence over rules made under section 35 in cases of conflict or inconsistency.
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.
Enforcement of orders
Canadian Energy Regulator decisions and orders may be registered with Federal or provincial superior courts and enforced as court orders by filing a certified copy with the court registrar. If a registered decision is subsequently rescinded or varied, the court order is vacated and the modified decision may be re-registered following standard court procedures.
Quorum
Three commissioners constitute a quorum of the Canadian Energy Regulator Commission, subject to exceptions specified in sections 42(2), 45-47, and 48(2) of the Canadian Energy Regulator Act.
Conflict of Interest Act
Section 22 of the Canadian Energy Regulator Act defines conflict of interest circumstances for the CEO, prohibiting ownership, shareholding, directorship, or involvement in hydrocarbon production, electricity generation/transmission, offshore energy operations, related securities, incompatible employment, and concurrent positions at the Regulator.
Orphan abandoned pipelines
Under the Canadian Energy Regulator Act, a designated officer may designate an abandoned pipeline as an orphan abandoned pipeline when the owning company's directors, officers, or the company itself cannot be located, or when the company is unknown, insolvent, bankrupt, in receivership, or dissolved.
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.
Measures
Section 245 of the Canadian Energy Regulator Act authorizes designated officers to take necessary measures for orphan pipeline abandonment and to delegate authority to employees or third parties. The Regulator, its staff, Crown agents, and authorized third parties are granted liability protection for good-faith actions or omissions during abandonment activities.
Apportionment of work
The Chief Executive Officer of the Canadian Energy Regulator must allocate work tasks and responsibilities among designated officers for powers, duties, and functions specified in regulations made under section 54.
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.
Compensation
Section 90 of the Canadian Energy Regulator Act clarifies that Directors, Commissioners, the Chief Executive Officer, and employees of the Canadian Energy Regulator are covered under the Government Employees Compensation Act and are considered employed in the federal public administration.
If pipeline affixed to any real property or immovables
Section 224 of the Canadian Energy Regulator Act establishes that pipeline sections affixed to real property, utilities, or navigable waters remain the exclusive property of the pipeline company and do not become part of underlying property without written consent and Regulator notice. Pipeline companies retain rights to create liens, mortgages, charges, and security interests on affixed sections under specified regulatory circumstances.
Determining compensation
Section 169 of the Canadian Energy Regulator Act establishes the Tribunal's procedure for determining compensation when amending a decision on reconsideration. The Tribunal must decide whether to award compensation for compensable damage claimed, calculate amounts per regulations accounting for prior payments, and may award authorized costs. Written notice must specify compensation awarded, cost determinations, regulatory reductions, and previously paid amounts.
Notice of non-compliance
Section 108 of the Canadian Energy Regulator Act authorizes inspection officers to issue written notices of non-compliance when they have reasonable grounds to believe a person has violated the Act or its regulations. Notices must identify the recipient, describe the alleged violation with relevant facts and applicable provisions, and provide a defined period for the recipient to submit comments in response.
Prohibition
A person must obtain Canadian Energy Regulator approval of plans, profiles, and books of reference for any international or interprovincial power line section before construction begins, and must deposit certified copies in the relevant land registry offices.
Effect of appeal
An appeal of a Canadian Energy Regulator order does not automatically suspend enforcement, but the Commission may exercise discretion to grant a stay of the order pending the appeal's outcome.
Effects on navigation
The Canadian Energy Regulator must consider effects on navigation safety, including navigation safety itself, when deciding whether to issue certificates, permits, approvals, orders, directions, or exemptions for international or interprovincial power lines that cross navigable waters.
Regulations
The Governor in Council may establish regulations defining circumstances under which Indigenous knowledge shared confidentially with the Canadian Energy Regulator may be disclosed without written consent, balancing regulatory transparency with Indigenous rights protection.
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.
Revocation of certificates — contravention
The Canadian Energy Regulator may revoke certificates issued under the Act if the holder breaches any condition, provided written notice of the alleged breach is issued and the holder is given an opportunity to respond before revocation.
Commission of violation
Under Canadian Energy Regulator Act section 117, any person who contravenes or fails to comply with designated provisions, orders, decisions, or conditions commits a violation subject to penalties determined by regulation. Penalties are designed to promote compliance rather than punish.
Public Service Superannuation Act
Section 91 of the Canadian Energy Regulator Act defines superannuation eligibility under the Public Service Superannuation Act, extending coverage to full-time commissioners, the CEO, and Regulator employees while explicitly excluding part-time commissioners and directors.
Definitions
Section 296 of the Canadian Energy Regulator Act establishes definitions for Part 2, defining 'authorization' as permission issued under section 298 and 'debris' as facilities, equipment, or systems placed during authorized work that were abandoned without authorization or displaced during operations. Provincial references in Part 2 apply to onshore areas of the Northwest Territories as defined in the Northwest Territories Act.
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.
Powers of company
Section 313 of the Canadian Energy Regulator Act grants pipeline companies authority to survey land, acquire property, construct pipelines across public and private holdings, interconnect with other infrastructure, erect supporting structures, and transport hydrocarbons and other commodities, subject to regulatory approval and applicable legislation.
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.
Regulations
Section 96 of the Canadian Energy Regulator Act authorizes the Regulator to establish regulations governing the design, construction, operation, and abandonment of interprovincial and international pipelines and designated power lines. Regulations must address surveillance, monitoring, safety, security, and environmental protection, and require operators to maintain management systems that incorporate human and organizational factors.
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.
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.
Tenure
Section 147 of the Canadian Energy Regulator Act defines tenure provisions for Tribunal members, establishing that they hold office during good behaviour and may be removed by the Governor in Council for cause or if the Tribunal has no ongoing work.
Definitions
Section 373 of the Canadian Energy Regulator Act defines key terms for the division governing energy exports, including references to free trade agreements (CCFTA, CCRFTA, CUSMA) and defines 'energy goods' as commodities requiring a licence, permit, or regulatory order for exportation under this Part.
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.
Staff and facilities
The Canadian Energy Regulator must provide tribunals with professional, technical, secretarial, clerical, and other necessary assistance, along with facilities and supplies required for tribunals to exercise their regulatory powers and perform their duties.
Statutory Instruments Act
Orders issued by the Canadian Energy Regulator Commission under this Part are explicitly excluded from the definition of statutory instruments under the Statutory Instruments Act, clarifying the regulatory status of CER orders.
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.
Application — Special Act lands
Under the Canadian Energy Regulator Act, any provision or regulation that applies to ordinary lands automatically extends to Special Act lands, ensuring uniform regulatory oversight and compliance requirements across all land categories within the regulator's jurisdiction.
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.
Reasons
The Canadian Energy Regulator and its designated officers must issue written reasons for all decisions and orders, which must be made publicly available except for decisions concerning only internal administrative matters.
Appeal to Commission
Section 71 of the Canadian Energy Regulator Act establishes the right to appeal decisions or orders made by designated or inspection officers to the Commission, which may dismiss, allow, vary, or rescind the decision or order.
For greater certainty
Issuance of a Canadian Energy Regulator certificate or approval of plans, profiles, and books of reference does not exempt regulated companies from compliance with other provisions of the Canadian Energy Regulator Act.
Impact Assessment Act
The Canadian Energy Regulator must rule on exemption applications for federally-designated projects within seven days of the impact assessment decision statement being published. Standard procedural timelines are suspended during this expedited review period.
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.
Measures to meet time limit
Section 42 of the Canadian Energy Regulator Act grants the Lead Commissioner authority to take administrative measures to ensure prescribed time limits for energy applications are met, including removing or reassigning commissioners, adjusting panel composition, or designating a single commissioner to handle the application.
Order designating Minister
Administrative provision enabling the Governor in Council to designate a federal minister responsible for administering the Canadian Energy Regulator Act.
Regulations — Governor in Council
The Governor in Council and Canadian Energy Regulator are authorized to establish regulations governing electricity export permits and licences, including permit conditions, factors for permit designation and licence issuance decisions, inspection protocols for equipment and records, application information requirements, and measurement standards for electricity exportation.
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.