Transition to the Canada Energy Regulator
The Canadian Energy Regulator Act, which was passed by Parliament in the summer of 2019, established the Canada Energy Regulator as the country’s new federal energy regulator.
Along with a new name, the legislation put in place a modern governance structure. A Board of Directors, led by a Chairperson, provides strategic oversight. An independent Commission, headed by a Lead Commissioner, makes adjudicative decisions. A Chief Executive Officer leads the CER’s day-to-day business and affairs and has the responsibilities of a deputy head.
The legislation also brought a clear emphasis on safety and environmental protection, reconciliation with Indigenous peoples, enhancing Canada’s global competitiveness, driving innovation, and strong oversight of pipelines, powerlines and future offshore renewable energy projects.
Planning for the implementation of the CER Act began within the organization well in advance of August 2019. The goal was to foster integrated leadership across all CER programs to ensure successful implementation of the legislation and all related policy changes.
The Canadian Energy Regulator Act…established the Canada Energy Regulator as the country's new federal energy regulator
In addition to a modernized governance structure, the key themes for change in becoming the CER include:
Timely and predictable decisions
The CER Act introduces a number of changes to federal processes for project review and decisions. Non-designated pipeline projects that are less than 40 km in length will be reviewed by the CER and go through a full impact assessment within 10 months. Projects that are between 40 km and 75 km in length will be reviewed by the CER and be subject to a full impact assessment within 15 months, after which Cabinet can decide whether a Certificate should be issued. Projects requiring more than 75 km of new right-of-way are designated under the Impact Assessment Act and will be reviewed by a panel under that legislation, which results in a recommendation to Cabinet as to whether a Certificate should be issued.
Designated projects, such as those consisting of pipeline projects with more than 75 km on new right-of-way will go through an integrated review process led by the Impact Assessment Agency of Canada (IAAC) with the support of the CER, and are approved by Cabinet.
Project reviews include a more robust early engagement phase, to better identify and respond to project-related concerns of Indigenous peoples and stakeholders. They also include new or updated factors to be considered in impact assessments, including consideration of gender-based analysis, climate change, Indigenous knowledge and impacts to Indigenous rights.
Strengthened safety and environmental protection
The CER continues to enforce conditions, inspect facilities and conduct other oversight activities to protect people and the environment. The CER Act enhances inspection and investigation powers. It also provides the authority to create an orphan pipeline account and take action to safely cease operation of a pipeline if the owner cannot be located or is in receivership, insolvent, or bankrupt. The CER will also be the lifecycle regulator for future offshore renewable energy projects.
Greater Indigenous participation
The CER Act ensures greater Indigenous participation through recognition of Indigenous rights and confirmation of the Government’s duty to consult, including a requirement to assess impacts on these rights and consider Indigenous knowledge in decision making.
The CER Act ensures greater Indigenous participation in the CER through its requirement that at least one member of its Board of Directors and one Commissioner be Indigenous.
The Act also calls for the establishment of an Indigenous Advisory Committee (IAC), which will be launched in 2020-21. The IAC will play a critical role, providing strategic advice to the Board of Directors on the regulatory work of the CER and on developing the framework for an enduring relationship between Indigenous peoples and the organization.
More inclusive public participation
Public participation in CER processes will be inclusive and any member of the public will have an opportunity to express their views during a hearing. In addition, the participant funding program is updating funding maximums to align with participation levels for eligible hearings, and will be expanded to include CER led early engagement activities with Indigenous peoples.
The transition to the CER has been a significant achievement as it helped develop momentum for the organization as it began its journey to build an energy regulatory system that inspires trust and public confidence on the part of all Canadians.