The Canada Energy Regulator (CER) is responsible for regulating energy infrastructure and markets in Canada. It oversees pipelines, power lines, energy development and trade. The CER has over 500 specialists from various fields and decades of experience regulating the energy industry. Recent changes to the CER include a new governance structure, greater focus on safety, Indigenous participation, public participation, and timely decision making.
2. 1
Our People
We are the Canada Energy Regulator (CER) formerly known as the National Energy Board.
A group of 500 highly qualified people from across the country and the world. We have six
decades of experience overseeing energy companies and projects in Canada.
Our team is made up of specialists who love the work they do. They include:
• Engineers
• Scientists
• Auditors
• Economists
• Inspectors
• Socio-economic specialists
• Lawyers
3. 2
Our Work
We oversee how energy moves
in Canada.
We are in charge of keeping watch over
the companies operating oil and gas
pipelines and electrical powerlines that
cross a national, provincial or territorial
border.
4. 3
Our Work
We also:
• Review applications for new projects and
upgrades to current ones
• Decide what can be transported in
pipelines and how much companies are
allowed to charge for their services
• Approve the export and import of natural
gas and the export of oil
• Provide people with energy statistics,
analysis and information they can trust
6. 5
CER jurisdiction
Oil & Gas
Pipelines
Electricity
Transmission
Imports, Exports
& Energy
Markets
Exploration and
Production
Offshore
renewables
Construction,
operation, and
abandonment of
interprovincial and
international
pipelines and
related tolls and
tariffs.
Construction and
operation of
international power
lines and
designated
interprovincial
power lines.
Imports and
exports of certain
energy products;
monitoring aspects
of energy supply,
demand,
production,
development and
trade.
Oil and gas
exploration and
production
activities in the
offshore and on
frontier lands not
covered by an
Accord.
Offshore
renewable projects
and offshore
power lines
CER Act, Part 2
and Part 3
CER Act, Part 4 CER Act, Part 7
and Part 1
Canada Oil and
Gas Operations
Act (COGOA)
CER Act, Part 5
7. 6
Business as usual
• The Canadian Energy Regulator Act introduces some changes to how we
operate.
• However, our job as Canada’s energy regulator – and our mission and vision –
remains the same.
• We continue to regulate pipelines, power lines, energy development and trade in
a way that protects the public and the environment while supporting efficient
markets.
• Some of the new legislation reflects good practices we have already started
doing as part of our ongoing commitment to improve and to respond to the
evolving energy industry.
8. 7
Changing to Serve You Better
Along with a new name, there are some changes happening at the
CER:
• A modern governance structure
• Strengthened safety and environmental protection
• Greater Indigenous participation
• More inclusive public participation
• Timely and predictable decisions
9. 8
• A new governance structure with an
independent Commission to adjudicate
projects (i.e. hearings), headed by a Lead
Commissioner.
• A Board of Directors, led by a Chair to
provide strategic oversight.
• A Chief Executive Officer, separate from
the Chair, accountable for leading the
organization and delivering results.
• Designated Officers will be authorized to
make specific technical or administrative
decisions under the CER Act
A modern governance structure
10. 9
Minister of Natural
Resources
Communication
Reporting/Accountable
Advise/Support
Legend
Note: The Board of Directors, CEO, and Commissioners are all Governor in Council appointees
Day-to-day business
Board and Commission support
Deputy Head powers and
accountabilities
Designated Officers
Technical &
administrative decisions
Commissioners
Independent adjudication of
regulated activities
Court of record
Commission annual report
Indigenous Advisory
Committee
Advising on enhancing
Indigenous involvement
in lifecycle regulation
Board of Directors
Governance
Regulator annual report
Board Committees
CEO
Chair Lead Commissioner
Canadian Energy
Regulator
Staff
Support the CER’s overall mandate
of protecting people and the
environment.
11. 10
Strengthened safety and environmental protection
• The CER will continue to enforce
conditions and inspect facilities to
protect people and the environment
• Enhanced inspection and investigation
powers
• Authority to create orphan pipeline
account and take action to safely cease
pipeline operation where the owner
can’t be located, is in receivership,
insolvent, or bankrupt
• We will now be the lifecycle regulator
for offshore renewable energy projects
12. 11
• The CER Act recognizes Indigenous
rights and confirms the Government’s
duty to consult, including a requirement
to assess impacts on these rights and
consider lndigenous knowledge in
decision making.
• At least one member of Board of
Directors and Commissioners must be
Indigenous.
• An Indigenous Advisory Committee, with
membership representing First Nations,
Inuit, and Metis interests, will enhance
Indigenous involvement in energy
projects.
Greater Indigenous participation
13. 12
• The CER has a mandate emphasizing
inclusive public participation and
transparency. For example, the CER:
• Allows any member of the public to
have an opportunity to express their
views during a hearing
• Has expanded its public participation
funding program to cover hearings
and any steps leading up to those
hearings
• Has clear authority to offer alternative
dispute resolution, including issues
related to compensation
More inclusive public participation
14. 13
• Specific administrative and technical
decisions will be made by CER expert
staff relying on a streamlined process
using a new position of Designated
Officers.
• Small and medium-size projects are
reviewed by the CER and go through a
full impact assessment within 10 and 15
months respectively.
• Large projects go through an integrated
review process led by the new Impact
Assessment Agency of Canada with CER
technical support.
Timely and predictable decisions
15. 14
Designated (large) projects
• The threshold for large projects under the federal Impact Assessment Act are pipelines
projects with more than 75 km of new right-of-way.
• Designated (large) projects go through a review process led by the Impact Assessment
Agency, with the support of CER technical expertise and at least one Commissioner on the
review panel.
• Designated (large) projects are subject to an early engagement process of 180 days (6
months), and a time limit of 300 days (10 months), with the possibility of extending to 600
days (20 months) for a panel to provide its recommendation report to Cabinet, subject to
possible extensions.
• After a designated project is approved, the CER leads the Crown consultation for the
construction and operations phases of a project.
• The CER, as the lifecycle regulator, enforces conditions and inspects facilities to ensure
people and the environment are protected.
16. 15
Non-Designated (small and medium projects)
• Small projects include pipeline projects of less than 40 km. They are reviewed by the CER
and go through a full impact assessment within 10 months.
• Medium projects include pipelines projects of more than 40 km, but with less than 75 km of
new right-of-way. They are reviewed by the CER, and go through a full impact assessment
within 15 months, and must be approved by Cabinet.
• Non-designated (small and medium) projects also include an early engagement phase,
which would take two to four months, depending on the size of the project.
• The CER acts as Crown Consultation Coordinator for non-designated projects – from
application through to operation and eventual abandonment.
• Being the Crown Consultation Coordinator means that the organization leads and
coordinates consultation activities in relation to a project on behalf of the Government of
Canada as a whole.
The CER’s Regulatory Framework is based on the legislation set by Parliament; the key pieces are the Canadian Energy Regulator Act, and the Canada Oil and Gas Operations Act. Under these two Acts, the CER regulates:
the construction, operation, and abandonment of interprovincial and international pipelines and related tolls and tariffs (CER Act, Parts 2,3);
the construction and operation of international power lines and designated interprovincial power lines (Part 4);
imports and imports of natural gas and exports of crude oil, natural gas, natural gas liquids, refined petroleum products, and electricity (Part 7);
oil and gas exploration and production activities in the offshore and on frontier lands not covered by a federal accord with provincial or territorial governments; and addition, with the introduction of the CER Act (COGOA);
offshore renewable projects and offshore power lines (CER Act, Part 5).
Anticipatory; no business or applications in this sector yet. The CER will develop a regulatory framework, to be ready.
The CER also monitors aspects of energy supply, demand, production, development, and trade, and it does this through its Energy Information Program (CER Act, Part 1).
This diagram outlines the CER’s governance structure. Solid lines represent reporting relationships, dotted lines represent the provision of advice and support, and the blue arrows represent communication pathways between different individuals or parts of the governance structure.
The CER governance structure includes:
A Board of Directors that provides governance at the level of strategic direction and advice, led by the Chair.
Commissioners responsible for independent adjudication of regulated activities, led by a Lead Commissioner.
A Chief Executive Officer responsible for the management of the day to day business of the CER
The Board of Directors, Commissioners, and the CEO are all Governor in Council appointees.
Board of Directors will be composed of between 5 and 9 Directors. Directors are appointed by the Governor-in-Council on a part-time basis during pleasure for a maximum term of 5 years.
The Commission is composed of a maximum of 7 full time Commissioners and a complement of part-time Commissioners. Commissioners are appointed by the Governor-in-Council during good behavior for a term not exceeding six years.
Both the Board of Directors and the Commission must have at least one Indigenous person amongst its members.
The CEO is appointed by the Governor-in-Council on the recommendation of the Minister following consultation with the Board of Directors The CEO holds office on a full-time basis during pleasure for a term of up to 6 years.