The Canada Energy Regulator oversees federally regulated energy projects and ensures companies follow established rules. From pipelines to power lines, this agency enforces compliance for companies and communities.
This article covers what the Canada Energy Regulator does and its impact on Canadians. Consulting with an energy lawyer can help you understand how this regulator may affect your projects.
What does the Canada Energy Regulator do?
The Canada Energy Regulator (CER) is the government entity that oversees the federally regulated energy projects across the country. This covers the following if they cross provincial or international borders:
- pipelines
- power lines
- offshore renewable energy projects
- abandoned pipelines
The CER reviews applications for new projects, ensures legal compliance, and oversees closure and decommissioning of energy infrastructure.
The CER also enforces safety and environmental rules that companies must follow. It inspects sites, checks safety plans, and requires companies to address any issues.
In the event of an emergency, such as an environmental incident, the Canada Energy Regulator coordinates with other agencies and requires companies to respond promptly. The CER can hold companies liable for damages.
The CER also consults with the public and Indigenous communities regarding energy projects throughout their life cycle. People can take part in hearings, share their concerns, and ask questions about these projects. The CER also considers potential impacts on land, water, and traditional activities before making decisions.
Watch this video from the CER to learn more about what it does and what it regulates:
Consult the best energy lawyers for electricity in Canada as ranked by Lexpert if you need help with anything related to energy law or the CER.
How does the Canada Energy Regulator oversee energy projects?
As outlined in the Canadian Energy Regulator Act (the CER Act) and other regulations, the CER regulates pipelines and power lines that cross provincial or international borders. While some responsibilities may overlap with provincial regulators, the CER's jurisdiction is limited to interprovincial and international projects. Consult an energy lawyer for more information.
Laws and regulations administered by the CER
Aside from the CER Act, there are several laws that the CER is responsible for or administers jointly with the other regulatory bodies. These laws include:
- Canada Oil and Gas Operations Act
- Canada Petroleum Resources Act
- Canadian Environmental Protection Act, 1999
- Energy Administration Act
- Impact Assessment Act
- Oil and Gas Operations Act
- Petroleum Resources Act
The CER also administers the regulations issued under these federal laws.
Construction, operation, and abandonment
As stated in the CER Act, the CER oversees the construction, operation, and abandonment of:
- pipelines
- powerlines, including interprovincial, international, and offshore powerlines
- offshore renewable energy projects
This means that the CER is involved from project approval through closure and decommissioning. The CER's jurisdiction includes:
Application to build a project
Applications to construct a federally regulated pipeline, powerline, or energy project must be submitted to the CER. It will then:
- assessments: review the proposed project and evaluate the company's engagement activities
- conduct hearings: public hearings will be conducted, where the affected and concerned communities can voice their concerns
- consult Indigenous Peoples: along with the public hearings, the CER consults with the affected Indigenous communities
Both the affected public and Indigenous Peoples can also submit a Statement of Concern within 21 days after the company files its application. The statement outlines concerns and views related to the proposed project.
New applications are accessible to the public using this tool from the Canada Energy Regulator's website.
Impose conditions on companies
During the application process, the CER can impose specific conditions on energy companies, including submission of environmental protection plans, construction schedules, and species-specific studies.
The CER verifies compliance with these conditions through inspections, audits, compliance meetings, report reviews, and emergency response exercises.
Compliance verification activity (CVA)
CVAs are investigations in which the Canada Energy Regulator verifies the compliance of the company in the areas such as:
- safety management
- damage prevention
- environmental protection
- integrity management
- emergency management
The CER prioritizes CVAs for projects with a high risk of compliance violations or major construction work. The same approach applies to audits.
Enforcement actions
If non-compliance is found during a CVA or an audit, the CER can issue or impose the following, which can gradually escalate depending on the severity of the issue:
- notice of non-compliance
- inspection officer order
- administrative monetary penalties
- warning letter
- commission order
- letter of direction
- revocation or suspension of authorization
- prosecution and filing of a case in court
Incident oversight
When an incident happens, the CER may do any of the following to ensure the safety of the people and the environment:
- investigate the incident
- initiate an emergency response
- take an enforcement action
Incidents at CER-regulated pipelines and facilities can involve any or a combination of:
- adverse environmental effects
- explosions
- fatalities
- fires
- operation beyond design limits
- release of substance/s
- serious injuries
Here's video statement from the Canada Energy Regulator on the Minell Pipeline incident in 2021, showing how it responds to emergencies and their aftermath:
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Abandonment of pipelines
When a company wants to abandon, deactivate, or decommission a pipeline, the CER Act states that the company must:
- apply with the CER, providing the information required under the CER Filing Manual
- send notice to the following, stating that an abandonment application has been filed:
- the landowners where the pipeline passes
- potentially impacted Indigenous Peoples
Upon request, a public hearing may be held. The CER can also conduct audits and investigations to ensure that the abandonment does not endanger people and the environment.
Who are the officers of the Canada Energy Regulator?
The CER is managed by a chief executive officer (CEO) and a board of directors. The CEO is responsible for the CER's day-to-day business, while the board sets the regulator's policies and ensures it follows Canadian laws and standards. One of the members of the board must be an Indigenous person, as required by the CER Act.
Adjunct to the board is the Indigenous Advisory Committee (IAC). The IAC advises the board on the participation of Indigenous Peoples on energy projects.
Part of the CER are seven commissioners, where at least one must also be an Indigenous person. These commissioners can:
- review applications for new energy projects
- inquire, conduct hearings, and decide about any incident or violation
How can lawyers assist clients with the Canada Energy Regulator?
Energy lawyers can assist clients with many aspects of energy law, including federal and provincial regulations affecting energy projects. This includes dealing with multiple regulators, such as the CER and other provincial regulatory bodies.
Here are some of the things that you can reach out to an energy lawyer for, when it comes to the Canada Energy Regulator:
- explain CER rules: lawyers can help clients understand what the CER expects from companies and landowners, explain the rules for new projects and changes to existing ones, and how to take part in hearings
- guide during consultations: when Indigenous rights or land use are involved, lawyers can guide clients through the consultation process, help gather the right documents, and ensure their clients' voices are heard
- representation matters: lawyers can represent clients in hearings or help them respond to questions from the regulator if incidents happen, since they know how to present evidence, ask questions, and protect their clients' interests
Legal support from energy lawyers can help projects run smoothly, prevent penalties, and assure communities of their safety.
The Canada Energy Regulator: All about pipelines and powerlines
Understanding the Canada Energy Regulator helps communities and businesses make smart choices. It clarifies where to seek guidance on regulated energy projects and related safety or environmental concerns.
For those facing energy projects or looking for advice, legal guidance can make the process easier. With this regulator in place, be assured that energy projects are monitored and regulated.
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