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Jurisdiction
The Canadian Energy Regulator has exclusive jurisdiction to investigate non-compliance with the Act and authorization conditions, inquire into accidents involving pipelines, abandoned pipelines, international power lines, and offshore renewable energy projects, and issue findings, recommendations, and orders in the public interest.
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.
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.
Order designating Minister
Administrative provision enabling the Governor in Council to designate a federal minister responsible for administering the Canadian Energy Regulator Act.
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.
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.
Vacancy
A vacancy in the Canadian Energy Regulator Commission does not impair the authority of remaining commissioners to perform their regulatory functions and duties.
Role of Lead Commissioner
Section 38 of the Canadian Energy Regulator Act defines the Lead Commissioner's administrative responsibilities, including managing Commission operations, distributing work among commissioners, and forming panels of at least three commissioners to exercise regulatory powers and perform duties.
Non-application
Section 44 of the Canadian Energy Regulator Act exempts designated projects undergoing federal impact assessment from sections 41 and 42, ensuring such projects are regulated exclusively through the Impact Assessment Act framework without dual regulatory processes.
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.
Grounds for making order
Section 109 of the Canadian Energy Regulator Act authorizes inspection officers to issue orders directing persons to cease contraventions, implement compliance measures, or prevent hazards to safety, security, property, or the environment. Orders may suspend facility operations until remediation is complete, with mandatory written notice and reporting to the Commission.
Definitions
Section 113 of the Canadian Energy Regulator Act establishes legal privilege protection for voice and video recordings of operating personnel at regulated energy facilities. Recordings are privileged and non-disclosable except when requested by the Regulator for accident inquiries, by coroners for investigations, or when courts determine public interest in justice outweighs privilege. Recordings cannot be used in disciplinary proceedings against facility operators or employees.
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.
Liability of directors, officers, etc.
Directors, officers, agents, and mandataries of corporations are personally liable for penalties under the Canadian Energy Regulator Act if they directed, authorized, assented to, acquiesced in, or participated in a violation of the Act, regardless of whether the corporation itself is prosecuted.
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.
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.
Certain defences not available
Section 121 of the Canadian Energy Regulator Act removes due diligence and honest belief as available defences for persons cited in violation notices. Common law justifications and excuses remain applicable if consistent with the Act.
Continuing violation
Under the Canadian Energy Regulator Act section 122, a violation that persists across multiple days is treated as a separate violation for each day of non-compliance, creating cumulative daily liability for continuing infractions.
Limitation period or prescription
The Canadian Energy Regulator must issue a notice of violation within two years from the date a violation occurs; no enforcement action may proceed after this two-year limitation period expires.
Right to request review
Under Canadian Energy Regulator Act section 125, any person served with a violation notice may request Commission review of the penalty amount or violation facts within 30 days of service, or within any extended period the Commission permits.
Review
The Canadian Energy Regulator Commission must conduct or arrange reviews of violation notices upon request. When a violation notice was issued by a designated person under the CER Act, the Commission must conduct the review directly without delegation.
Failure to act
Under Canadian Energy Regulator Act s. 131, failure to pay an imposed penalty or request a review within the timeframe specified in s. 125 constitutes admission of the violation, leaving the person liable for the penalty.
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.
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.
Establishment of Tribunal
Section 143 of the Canadian Energy Regulator Act authorizes the Governor in Council to establish a pipeline claims tribunal to examine and adjudicate compensation claims arising from pipeline releases. The tribunal may only be established if deemed in the public interest based on extent of damage, estimated costs, and administrative advantages. The tribunal must operate equitably without discrimination based on nationality or residence.
Jurisdiction of courts
Section 144 of the Canadian Energy Regulator Act clarifies that regulatory provisions do not restrict court jurisdiction over pipeline release matters, preserving judicial authority in such cases.
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.
Immunity
Section 148 of the Canadian Energy Regulator Act grants civil immunity to Tribunal members for actions or omissions undertaken in the exercise or purported exercise of their powers, duties, or functions.
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.
Staff
Section 150 of the Canadian Energy Regulator Act authorizes the Tribunal to employ necessary staff, define their duties and employment conditions, and set compensation with Treasury Board approval.
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.
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.
Replacement of commissioner during hearing
Procedural rule under the Canadian Energy Regulator Act allowing the Lead Commissioner to designate a replacement commissioner to continue hearings or render decisions if the assigned commissioner becomes unable to act or resigns during proceedings or between hearing conclusion and decision issuance.
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.
Violation or offence
Section 123 of the Canadian Energy Regulator Act establishes that violations and offences are mutually exclusive enforcement mechanisms. Regulators must choose to pursue a given act or omission as either an administrative violation or a criminal offence, but not both. Violations are excluded from Criminal Code section 126.
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.
Admissibility of documents
Under Canadian Energy Regulator Act section 134, documents appearing to be notices issued under subsection 120(1) are presumed authentic and constitute proof of their contents in violation proceedings unless contrary evidence is presented.
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.
Powers of liquidators, trustees, etc.
Section 5 of the Canadian Energy Regulator Act expands the definition of 'company' for regulatory purposes to include liquidators, receivers, managers, and trustees authorized to operate businesses; persons operating pre-1953 pipelines or exempted pipelines; Quebec court-appointed administrators; and successors handling abandoned pipelines.
Appointment
Section 15 of the Canadian Energy Regulator Act establishes procedures for appointing the CER's Chairperson, Vice-Chairperson, and directors by the Governor in Council on a part-time basis for terms up to five years, with reappointment eligibility. Appointees must be Canadian citizens or permanent residents and cannot simultaneously hold positions as CER employees, commissioners, or Chief Executive Officer.
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.
Binding on Her Majesty
Section 7 of the Canadian Energy Regulator Act establishes that the Act applies to and binds Her Majesty in right of Canada and the provinces, ensuring federal and provincial governments are subject to the same regulatory obligations as private entities in energy regulation matters.
Designation
Under Canadian Energy Regulator Act s. 141, the Governor in Council may designate pipeline operators whose companies experience unintended or uncontrolled releases of oil, gas, or commodities if they lack financial resources to cover response costs and compensation or fail to comply with regulatory orders. The Regulator may conduct response actions, authorize third parties with liability protection, and recover expenses from pooled financial arrangements or by reimbursing governments and Indigenous bodies.
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.
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.
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.
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.
Designation of inspection officers
The Canadian Energy Regulator's CEO may designate inspection officers to enforce safety, security, environmental, and property protection regulations at regulated and abandoned energy facilities. All designated officers must be provided with a certificate of authority and must produce it upon request.
Public notice
The Canadian Energy Regulator must immediately notify the public when a compensation tribunal is established, including publication in the Canada Gazette detailing the tribunal's purpose and procedures for filing compensation claims.