Canadian Energy Regulator Act (S.C. 2019, c. 28, s. 10)

PART 1Canadian Energy Regulator

Marginal note:Definition of document of authorization

9 In this Part, document of authorization means a certificate issued under Part 3 or 4, a permit issued under Part 4 or 7, an authorization issued under Part 5, a licence issued under Part 7 or an order made under section 214.

Establishment and Mandate

Marginal note:Canadian Energy Regulator

• 10 (1) A corporation is established to be called the Canadian Energy Regulator.

• Marginal note:Agent of Her Majesty

  (2) The Regulator is for all purposes an agent of Her Majesty in right of Canada.

• Marginal note:Head office and other offices

  (3) The head office of the Regulator is to be in Calgary, Alberta. The Regulator’s Chief Executive Officer may open or close other offices after consulting the board of directors.

• Marginal note:For greater certainty

  (4) For greater certainty, the opening or closing of an office does not change the conditions of appointment of a director or commissioner.

Marginal note:Mandate

11 The Regulator’s mandate includes

• (a) making transparent decisions, orders and recommendations with respect to pipelines, power lines, offshore renewable energy projects and abandoned pipelines;

• (b) overseeing the construction, operation and abandonment of pipelines, interprovincial power lines and international power lines and overseeing work and activities authorized under Part 5 as well as abandoned facilities;

• (c) making orders with respect to traffic, tolls and tariffs and overseeing matters relating to traffic, tolls and tariffs;

• (d) making decisions and orders and giving directions under Part 8 with respect to oil and gas interests, production and conservation;

• (e) advising and reporting on energy matters;

• (f) providing alternative dispute resolution processes;

• (g) exercising powers and performing duties and functions that are conferred on the Regulator under any other Act of Parliament; and

• (h) exercising its powers and performing its duties and functions in a manner that respects the Government of Canada’s commitments with respect to the rights of the Indigenous peoples of Canada.

Marginal note:Jurisdiction — Inuvialuit Settlement Region

• 12 (1) Until March 31, 2034, the Regulator is to be the regulator — under any law of the Legislature of the Northwest Territories that is made under paragraph 19(1)(a), (b) or (c) of the Northwest Territories Act — in respect of that portion of the Inuvialuit Settlement Region, as defined in section 2 of the Canada Oil and Gas Operations Act, that is situated in the onshore as defined in section 2 of the Northwest Territories Act.

• Marginal note:Successive periods and termination

  (2) After March 31, 2034, the Government of Canada and the Government of the Northwest Territories may agree that the Regulator is to continue to be the regulator for one or more periods of 20 years each; they may also, before the expiry of each successive period, agree to its earlier termination.

Marginal note:Governor in Council directions

• 13 (1) The Governor in Council may, by order, give to the Regulator directions of general application on broad policy matters with respect to the Regulator’s mandate.

• Marginal note:Directions binding

  (2) An order made under subsection (1) is binding on the Regulator.

• Marginal note:Publication and tabling

  (3) A copy of each order made under subsection (1) must be published in the Canada Gazette and tabled in each House of Parliament.

Board of Directors

Marginal note:Establishment and composition

• 14 (1) The Regulator is to have a board of directors consisting of at least five but not more than nine directors, including a Chairperson and a Vice-Chairperson.

• Marginal note:Indigenous representation

  (2) At least one of the directors must be an Indigenous person.

Marginal note:Appointment

• 15 (1) The Chairperson, Vice-Chairperson and the other directors are to be appointed by the Governor in Council to hold office on a part-time basis and during pleasure for a term not exceeding five years.

• Marginal note:Reappointment

  (2) A director may be reappointed in the same or another capacity for one or more terms of up to five years each.

• Marginal note:Eligibility — directors

  (3) A person is not eligible to be a director if they are the Chief Executive Officer, a commissioner or an employee of the Regulator.

• Marginal note:Eligibility — Chairperson and Vice-Chairperson

  (4) A person is not eligible to be Chairperson or Vice-Chairperson unless they are a Canadian citizen or permanent resident as defined in subsection 2(1) of the Immigration and Refugee Protection Act.

• Marginal note:Remuneration and expenses

  (5) A director is to be paid the remuneration that is fixed by the Governor in Council and is entitled to be paid reasonable travel and other expenses while performing their duties and functions under this Act while absent from their ordinary place of residence.

Marginal note:Conflict of Interest Act

16 For the purposes of the Conflict of Interest Act, the circumstances in which a director is in a conflict of interest while exercising the powers or performing the duties and functions of a director include

• (a) engaging in, as owner, shareholder, director, officer, partner or in any other way, the business of producing, selling, buying, transmitting, exporting, importing or otherwise dealing in hydrocarbons, electricity or offshore energy;

• (b) holding any bond, debenture or other security of a corporation engaged in any such business; and

• (c) holding other employment that is inconsistent with their powers, duties and functions or with any provision of this Act or a regulation made under it.

Marginal note:Role of the board of directors

• 17 (1) The board of directors is responsible for the governance of the Regulator and its governance functions include providing strategic direction and advice to the Regulator. The board of directors must not however give directions or provide advice with respect to any particular decision, order or recommendation that is made by the Commission or a commissioner.

• Marginal note:By-laws

  (2) The board of directors may make by-laws respecting the conduct of its meetings and the general conduct of its activities.

• Marginal note:Quorum

  (3) A majority of the directors holding office, including the Chairperson, constitutes a quorum of the board of directors.

Marginal note:Annual report

• 18 (1) The board of directors must, within 120 days after the end of each fiscal year, submit to the Minister a report on the Regulator’s activities under this Act for that fiscal year, and the Minister must cause the report to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the day on which the report is received.

• Marginal note:Other reports

  (2) The board of directors may submit a report to the Minister on the Regulator’s activities if the board considers it appropriate to do so.

• Marginal note:Definition of fiscal year

  (3) For the purposes of subsection (1), fiscal year means the period beginning on April 1 in one year and ending on March 31 in the next year.

Marginal note:Role of Chairperson

• 19 (1) The Chairperson presides over meetings of the board of directors and may perform any duties or functions that are assigned to him or her by the board.

• Marginal note:Acting Chairperson

  (2) If the Chairperson is absent or is unable to act or if there is a vacancy in that office, the Vice-Chairperson acts as Chairperson.

• Marginal note:Governor in Council approval

  (3) The Vice-Chairperson is not authorized to act as Chairperson for a period of more than 90 days without the approval of the Governor in Council.

Marginal note:Vacancy

20 A vacancy in the board of directors does not impair the right of the remaining directors to act.

Chief Executive Officer

Marginal note:Appointment

• 21 (1) The Chief Executive Officer of the Regulator is to be appointed by the Governor in Council on the recommendation of the Minister after the Minister has consulted the directors.

• Marginal note:Term

  (2) The Chief Executive Officer is to hold office on a full-time basis during pleasure for a term of up to six years.

• Marginal note:Reappointment

  (3) The Chief Executive Officer may be reappointed for one or more terms of up to six years each. However, the Chief Executive Officer is to serve no more than 10 years in office in total.

• Marginal note:Eligibility

  (4) A person is not eligible to be the Chief Executive Officer unless they are a Canadian citizen or permanent resident as defined in subsection 2(1) of the Immigration and Refugee Protection Act.

• Marginal note:Eligibility

  (5) A director is not eligible to be the Chief Executive Officer.

• Marginal note:Remuneration and expenses

  (6) The Chief Executive Officer is to be paid the remuneration that is fixed by the Governor in Council and is entitled to be paid reasonable travel and other expenses while performing his or her duties and functions under this Act while absent from his or her ordinary place of work.

Marginal note:Conflict of Interest Act

22 For the purposes of the Conflict of Interest Act, the circumstances in which the Chief Executive Officer is in a conflict of interest while exercising the powers or performing the duties and functions of the Chief Executive Officer include

• (a) engaging in, as owner, shareholder, director, officer, partner or in any other way, the business of producing, selling, buying, transmitting, exporting, importing or otherwise dealing in hydrocarbons, electricity or offshore energy;

• (b) holding any bond, debenture or other security of a corporation engaged in any such business;

• (c) holding other employment that is inconsistent with the Chief Executive Officer’s powers, duties and functions or with any provision of this Act or a regulation made under it; and

• (d) holding office as a commissioner or being employed by the Regulator.

Marginal note:Role of Chief Executive Officer

• 23 (1) The Chief Executive Officer is responsible for the management of the Regulator’s day-to-day business and affairs, including the supervision of its employees and their work. The Chief Executive Officer must not however give directions with respect to any particular decision, order or recommendation that is made by the Commission or a commissioner.

• Marginal note:Rank of deputy head

  (2) The Chief Executive Officer has the rank and the powers of a deputy head of a department.

• Marginal note:Acting Chief Executive Officer

  (3) If the Chief Executive Officer is absent or unable to act or if there is a vacancy in that office, an executive of the Regulator designated by the Minister acts as Chief Executive Officer.

• Marginal note:Governor in Council approval

  (4) The executive referred to in subsection (3) is not authorized to act as Chief Executive Officer for a period of more than 90 days without the approval of the Governor in Council.

Marginal note:Designated officers

24 The Chief Executive Officer may designate employees of the Regulator as designated officers.

Marginal note:For greater certainty

25 For greater certainty, the Chief Executive Officer is responsible for the provision of the support services and the facilities that are needed by the Commission to exercise its powers and perform its duties and functions in accordance with the rules that apply to its work.

Commission

Composition and Appointments

Marginal note:Commission

• 26 (1) The Regulator is to have a Commission that consists of up to seven full-time commissioners. It may also include a complement of part-time commissioners.

• Marginal note:Indigenous representation

  (2) At least one of the full-time commissioners must be an Indigenous person.

Marginal note:Quorum

27 Subject to subsection 42(2), sections 45 to 47 and subsection 48(2), three commissioners constitutes a quorum of the Commission.

Marginal note:Appointment

• 28 (1) The commissioners are to be appointed by the Governor in Council to hold office during good behaviour for a term not exceeding six years.

• Marginal note:Reappointment

  (2) A commissioner may be reappointed for one or more terms of up to six years each. However, a commissioner is to serve no more than 10 years in office in total.

• Marginal note:Removal

  (3) The Governor in Council may remove a commissioner for cause.

• Marginal note:Eligibility

  (4) A person is not eligible to be a commissioner unless they are a Canadian citizen or permanent resident as defined in subsection 2(1) of the Immigration and Refugee Protection Act.

• Marginal note:Eligibility

  (5) A director is not eligible to be a commissioner.

• Marginal note:Remuneration and expenses — full-time commissioner

  (6) A full-time commissioner is to be paid the remuneration that is fixed by the Governor in Council and is entitled to be paid reasonable travel and other expenses while performing their duties and functions under this Act while absent from their ordinary place of work.

• Marginal note:Remuneration and expenses — part-time commissioner

  (7) A part-time commissioner is to be paid the remuneration that is fixed by the Governor in Council and is entitled to be paid reasonable travel and other expenses while performing their duties and functions under this Act while absent from their ordinary place of residence.

Marginal note:Conflict of Interest Act

29 For the purposes of the Conflict of Interest Act, the circumstances in which a commissioner is in a conflict of interest while exercising the powers or performing the duties and functions of a commissioner include

• (a) engaging in, as owner, shareholder, director, officer, partner or in any other way, the business of producing, selling, buying, transmitting, exporting, importing or otherwise dealing in hydrocarbons, electricity or offshore energy;

• (b) holding any bond, debenture or other security of a corporation engaged in any such business;

• (c) holding other employment that is inconsistent with their powers, duties and functions or with any provision of this Act or a regulation made under it; and

• (d) holding office as the Chief Executive Officer or being employed by the Regulator.