Forward Regulatory Plan: Designated Company Cost Recovery Regulations

Enabling act(s)
Canadian Energy Regulator Act (CER Act)

On 28 August 2019, the National Energy Board became the Canada Energy Regulator (CER). Regulations made under the National Energy Board Act remain in force under the Canadian Energy Regulator Act (CER Act) until they are repealed or others made in their stead. New regulations and updates to existing regulations are being implemented through a phased approach.

On June 18, 2015, the Pipeline Safety Act received Royal Assent. The Pipeline Safety Act requires the CER to make regulations to recover costs, expenses and damages associated with a pipeline release when a company has been “designated” by the Governor in Council (GIC). GIC may designate a company if there is a pipeline release and the responsible company: (i) is unable to pay the costs, expenses and damages associated with the release; or (ii) does not comply with a CER order related to the release. The regulations will help ensure that such costs will be recovered from the designated company and other specified companies.

Regulatory cooperation efforts (domestic and international)
There are no regulatory cooperation efforts related to this proposal. It does not impact other governments, including other countries, provinces, or territories.

Potential impacts on Canadians, including businesses
The proposed regulation is expected to prevent a situation wherein taxpayers are responsible for paying the charges back to the Consolidated Revenue Fund in a designated company situation.

A Regulatory Proposal was published for public comment in 2018, and five letters of comment were received. Further engagement on the Designated Company Cost Recovery Regulations is anticipated to resume pending the development of the CER Cost Recovery Regulations. The CER Cost Recovery Regulations are expected to inform the development of this proposal. Information on consultation opportunities will appear on the CER’s Consultation and Engagement Activities webpage.

Further information

Canada Energy Regulator contact information
Rumu Sen
Regulatory Policy
Telephone: (403) 390-6177
Toll Free Telephone: 1-800-899-1265
Toll Free Fax: 1-877-288-8803

Date the regulatory initiative was first included in the Forward Regulatory Plan
October 1, 2016

Consult the Canada Energy Regulator’s Acts and Regulations web page for:

  • a list of acts and regulations administered by the Canada Energy Regulator
  • further information on the Canada Energy Regulator’s implementation of government-wide regulatory management initiatives

Consult the following for links to the Cabinet Directive on Regulation and supporting policies and guidance, and for information on government-wide regulatory initiatives implemented by departments and agencies across the Government of Canada:

To learn about upcoming or ongoing consultations on proposed federal regulations, visit:

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