Canada Energy Regulator
Short name: CER
Canada's federal energy regulator — oversees interprovincial and international pipelines, power lines, energy trade, and offshore renewable energy projects under the Canadian Energy Regulator Act (C-15.1).
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Open in Browser →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.
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.
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.
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.
Application
Section 160 of the Canadian Energy Regulator Act establishes a compensation claims tribunal where persons, organizations, governments, and Indigenous governing bodies may file claims for damages caused by pipeline releases from designated companies within prescribed timeframes. The Tribunal Chairperson must promptly assign claims to panels and notify all relevant parties.
Decision by Governor in Council
Section 186 of the Canadian Energy Regulator Act grants the Governor in Council authority to issue binding orders on pipeline certificate applications following CER recommendations. The Governor may approve certificates with conditions, dismiss applications, or refer recommendations for reconsideration. Orders must include written reasons demonstrating consideration of relevant factors and be issued within 90 days (extendable). Orders are final, must be published in the Canada Gazette within 15 days, and the CER must comply within seven days.
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.
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.
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.
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.
Form of compensation payment if land taken
Under Canadian Energy Regulator Act section 329, when a company takes or leases land, the Regulator must direct compensation payment at the landowner's option as either a lump sum or periodic payments. Interest may be awarded at the prime business loan rate from the date of land entry or when damages first occurred.
Participant funding program
The Canadian Energy Regulator must establish a participant funding program to enable public participation, particularly Indigenous peoples and organizations, in regulatory hearings and proceedings related to energy projects under the Canadian Energy Regulator Act.
Regulations
Section 78 of the Canadian Energy Regulator Act grants the Governor in Council authority to make regulations governing the Minister's power to enter into arrangements under section 77, including rules for procedures, applicable circumstances, required contents, and modifications to statutory or regulatory provisions.
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.
Reports and recommendations to Minister
The Canadian Energy Regulator may submit reports to the Minister recommending measures for control, supervision, conservation, use, marketing and development of energy resources, and for ensuring the safety and security of regulated and abandoned energy facilities.
Request of Minister
The Canadian Energy Regulator must provide ministerial advice and conduct requested studies on energy matters, facility safety, security, and oil and gas export pricing. Publication of such advice, studies, or reports requires prior written ministerial consent.
Statutory Instruments Act
Section 92 of the Canadian Energy Regulator Act exempts orders and directions issued by the Commission, designated officers, or inspection officers from statutory instrument classification when they apply to a single person or entity, a single regulated facility, or are issued immediately for safety, security, environmental protection, or property protection purposes.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Correction or cancellation of notice of violation
Under the Canadian Energy Regulator Act section 126, a designated person may cancel a notice of violation or correct errors within it at any time before the Commission receives a review request regarding that notice.
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.
Payment
Under Canadian Energy Regulator Act section 130, payment of a penalty specified in a notice of violation constitutes an admission of the violation and terminates all related proceedings.
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.
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.
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.
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.
Frivolous or vexatious claims
The Canadian Energy Regulator Act empowers the Tribunal to dismiss compensation claims or reconsideration applications it deems frivolous or vexatious, protecting regulatory resources from non-meritorious proceedings.
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.
Total amount
Section 165 of the Canadian Energy Regulator Act establishes a financial cap on total payments issued by the Regulator under subsection 164(1), limiting them to the portion determined by the Minister of Finance under subsection 171(2).
Limitations
Section 181 of the Canadian Energy Regulator Act requires pipeline companies to obtain prior written Commission approval before selling, transferring, leasing, purchasing, acquiring, or amalgamating pipelines or abandoned pipelines.
Continuation of jurisdiction and obligation
Section 189 of the Canadian Energy Regulator Act clarifies that procedural delays do not strip the Regulator of jurisdiction over applications or reporting obligations, and all actions taken remain valid. The Governor in Council may also issue orders under section 186(1) even after statutory time limits have expired.
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.
Recommendation not to vary or transfer
Under Canadian Energy Regulator Act section 192, if the Commission recommends against varying or transferring an energy certificate, the Governor in Council may issue an order directing the Commission to decline the variation or transfer or to reconsider the matter.
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.
Publication of order
Orders issued by the Canadian Energy Regulator under sections 191 or 192 of the Canadian Energy Regulator Act must be published in the Canada Gazette within 15 days of issuance.
Revocation of certificates — application or consent
The Canadian Energy Regulator may revoke certificates issued under Part 2 of the Act by order, either upon application by the certificate holder or with their written consent.
Revocation of certificates — contravention
The Canadian Energy Regulator may revoke a certificate if the holder violates any condition, subject to Governor in Council approval. The regulator must provide written notice of the alleged violation and grant the certificate holder an opportunity to be heard before revocation.
Approval
Pipeline companies must obtain a Canadian Energy Regulator certificate before constructing any pipeline section, comply with all certificate conditions, secure Regulator approval of construction plans and specifications, and deposit certified copies in relevant land registries.
Suspension of certificates
The Canadian Energy Regulator Commission may suspend energy certificates by order if the certificate holder requests suspension, consents to it, or breaches certificate conditions. Before suspending for non-compliance, the Commission must provide written notice and opportunity for the holder to respond.
Plan, profile and book of reference
Energy infrastructure proponents must submit a plan, profile, and book of reference to the Canadian Energy Regulator detailing all land parcels to be acquired or traversed, including parcel identification, dimensions, area, and owner/occupier information. The Regulator may require additional details as necessary.
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.
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.
Conditions
The Canadian Energy Regulator may impose any conditions it deems appropriate when issuing approvals for energy infrastructure projects, enabling tailored regulatory requirements specific to individual applications.
Costs of making representations
The Canadian Energy Regulator Commission may order pipeline companies to reimburse reasonable costs incurred by persons making representations at public hearings concerning pipeline routes, payable on an interim or final basis without delay.
Application of certain provisions
Section 290 of the Canadian Energy Regulator Act applies compliance provisions (sections 315–318 and 341) to international and interprovincial power lines subject to regulatory orders. Permit and certificate holders must comply, except for activities authorized by leave, facilities with existing certificate conditions, navigable water crossings, and authorizations issued before July 3, 2013.
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.
Leave required
Pipeline companies must obtain a leave order from the Canadian Energy Regulator Commission before opening a pipeline or section for transmission of hydrocarbons or other commodities. Leave is granted only when the Commission is satisfied the pipeline can safely operate.
Construction or operation — navigable water
Under Canadian Energy Regulator Act section 218, any person must obtain a certificate or order from the Canadian Energy Regulator before constructing or operating a pipeline that crosses navigable waters in any manner (in, on, over, under, through, or across).
Effects of recommendation on navigation
The Canadian Energy Regulator must consider navigation safety impacts as a material factor when recommending pipeline approvals and making regulatory decisions for pipelines crossing navigable waters.
Existing terms and conditions
Section 222 of the Canadian Energy Regulator Act deems all terms and conditions imposed on pipelines before July 3, 2013 under the National Energy Board Act to be conditions of CER certificates or orders. Pipeline companies must construct pipelines according to previously specified orders, regulations, plans, and specifications, or as directed by the Commission.
Tariff to be filed
Energy transportation companies must file all tariffs and amendments with the Canadian Energy Regulator to ensure transparent disclosure of pricing and service terms for pipeline and energy transportation services.
Commencement of tariff
Under Canadian Energy Regulator Act section 228, pipeline companies filing tariffs must obtain regulatory approval establishing an effective commencement date before charging tolls for transportation services.
Interim tolls
The Canadian Energy Regulator may direct pipeline companies to refund tolls charged above just and reasonable amounts under interim orders, or recover shortfalls through subsequent tolls, with interest determined by the regulator.
Suspension
The Canadian Energy Regulator Commission may suspend application of any tariff or portion thereof before or after it becomes effective, providing regulatory authority over energy infrastructure service charges.
No unjust discrimination
Section 235 of the Canadian Energy Regulator Act requires energy companies to avoid unjust discrimination in tolls, services, or facilities against any person or locality, ensuring fair and equitable access to energy infrastructure.
Prohibition
Section 237 of the Canadian Energy Regulator Act prohibits companies, shippers, and their agents from offering or accepting rebates, concessions, or discriminatory rates for hydrocarbon transmission below published tariffs, and from engaging in false billing, classification, or reporting to circumvent rate requirements. A due diligence defence is available, and prosecution requires prior Commission approval.
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.
Costs and expenses related to abandonment
The Canadian Energy Regulator may require pipeline companies to establish and maintain financial funds or security to ensure they can pay for pipeline abandonment and related costs. The Regulator can direct use of these funds, authorize third parties to access them, realize security to cover abandonment expenses, and allocate any surplus to the Orphan Pipelines Account.
Orphan pipelines
Under the Canadian Energy Regulator Act, a designated officer may declare a pipeline an orphan pipeline if the certificate-holding company cannot be located, is unknown, insolvent, bankrupt, in receivership, or dissolved. Persons named in prior regulatory orders or authorized under Special Acts are deemed certificate holders for orphan pipeline designation purposes.
Prohibition
Persons are prohibited from constructing or operating any section or part of an international power line without first obtaining a permit under section 248 or a certificate under section 262 of the Canadian Energy Regulator Act.
Issuance
The Canadian Energy Regulator must issue permits for construction and operation of international power lines upon application, subject to the Impact Assessment Act, unless the project is designated by Governor in Council order or an alternative regulatory election applies. Applicants must provide all information specified in regulations.
Publication
Energy project applicants must publish notices of their applications in the Canada Gazette and other CER-designated publications. The Commission may waive this publication requirement if a critical electricity shortage is caused by terrorist activity as defined in the Criminal Code.
Powers, duties and functions of provincial regulatory agency
Provincial regulatory agencies designated under the Canadian Energy Regulator Act possess equivalent authority over international power lines within their jurisdiction as they do over interprovincial electricity transmission lines, including discretionary power to refuse approvals even if such refusal prevents line construction or operation.
Paramountcy
Federal permits and certificates issued under the Canadian Energy Regulator Act, along with applicable Acts of Parliament, take precedence over conflicting provincial laws when applied to federally regulated energy projects, establishing federal regulatory supremacy.
Further information
The Canadian Energy Regulator may require applicants to submit additional information beyond standard application materials within a reasonable timeframe if deemed necessary to support the regulator's recommendation decision under the Canadian Energy Regulator Act.
Recommendation and delay of issuance
The Canadian Energy Regulator may recommend to the Minister that an international power line be designated by Governor in Council order and may delay permit issuance during this process. The Regulator must avoid duplicating provincial measures and must consider interprovincial effects, environmental impacts, and regulatory factors when deciding whether to recommend designation.
Where certificate required
Under Canadian Energy Regulator Act section 261, the Governor in Council may designate interprovincial power lines requiring certificates. No person may construct or operate a designated interprovincial power line without a valid certificate issued under section 262. The Governor may specify considerations the Commission must regard when deciding whether to issue certificates.
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.
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.
Construction or operation
A person must obtain a permit under section 248 or a certificate under the Canadian Energy Regulator Act before constructing or operating an international or interprovincial power line that crosses navigable waters.
Regulations
The Governor in Council may establish joint regulations with the Ministers of Energy and Transport governing the design, construction, operation, deviations, relocation, safety, security, and abandonment of international and interprovincial power lines that cross navigable waters in Canada.
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.
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.
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.
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.
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.
Recommendation not to vary or transfer
Under Canadian Energy Regulator Act section 282, the Governor in Council may issue an order directing the Commission to refuse variation or transfer of a pipeline certificate or to reconsider the matter when the Commission recommends against such action.
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.
Publication of order
Orders issued by the Canadian Energy Regulator under sections 281 or 282 must be published in the Canada Gazette within 15 days of issuance.
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.
Regulations — excluded periods
The Canadian Energy Regulator may establish regulations defining circumstances under which periods can be excluded from calculating regulatory time limits for permit and authorization decisions, providing administrative flexibility in processing timelines for energy projects.
Variation or transfer
The Canadian Energy Regulator Commission may vary or transfer energy authorizations either on its own motion or upon application, and may impose new, modified, or additional conditions as part of such variations or transfers.
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.
Recovery of loss, etc., caused by debris
Section 302 of the Canadian Energy Regulator Act establishes strict liability for losses, damages, and costs arising from debris generated during authorized energy work. Authorization holders are liable up to $1 billion (with reduced limits in Arctic Waters), while parties responsible for debris are jointly and severally liable based on fault. Claims prioritize personal losses, then government costs, then non-use value losses (recoverable only by government).
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.
Proof of financial responsibility
Under Canadian Energy Regulator Act section 304, applicants for CER authorization must provide proof of financial responsibility (letter of credit, guarantee, indemnity bond, or other acceptable form). This proof must remain in force throughout the authorized activity. The Regulator may draw on these funds for eligible claims, with amounts recovered offset against subsequent legal liability awards.
Application of sections 317 and 318
Section 307 of the Canadian Energy Regulator Act extends regulatory sections 317 and 318 to offshore renewable energy projects and offshore power lines by substituting references to companies with persons and pipelines with offshore facilities, ensuring equivalent regulatory requirements.
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.