On Wednesday, Aug. 28, the National Energy Board (NEB) became the Canada Energy Regulator (CER). For further information please visit our Implementing the Canadian Energy Regulator Act information page

Forward Regulatory Plan: 2019 to 2021 – Section 335 Cost Apportionment Regulatory Tool

Enabling act(s)
Proposed Canadian Energy Regulator Act

Description
On 8 February 2018, Bill C-69 was tabled in Parliament. If passed, Bill C-69 will, among other things, replace the National Energy Board Act (NEB Act) with the Canadian Energy Regulator Act (CER Act). To ensure the efficient functioning of the CER Act, should it become law, anticipatory regulations are being developed. In the meantime, the National Energy Board (NEB) continues to implement existing legislation and related regulations remain in force.

The proposed CER Act would create the Canadian Energy Regulator (CER or Regulator) and a Commission with the powers, duties and functions required for providing regulatory oversight of federally regulated energy infrastructure and transmission. The CER Act provides the Regulator with the authority to, with the approval of Governor in Council, make regulations that address the apportionment of costs directly incurred by parties working near CER-regulated pipelines (these could relate to construction or ground disturbances). The Act also provides the authority for the Commission to give this direction through order.

This regulatory initiative is associated with the National Energy Board’s stock review plan.

Regulatory cooperation efforts (domestic and international)
As part of their overall engagement efforts, departmental staff will consult with provincial and federal regulators with similar cost apportionment regulatory authorities to learn best practices and help inform regulatory development and implementation plans.

Potential impacts on Canadians, including businesses
The implementation of a cost apportionment regulatory tool would impact CER-regulated companies and those who wish to do work near CER-regulated pipelines (i.e., land owners, rights holders, and municipal governments). It is not expected to affect Canadians at large or involve significant impacts on international trade or investment.

Consultations
This regulatory initiative is in the early stages of development. Early engagement with targeted stakeholders to scope the regulatory project will commence in winter-spring 2019. Following this scoping phase, the National Energy Board and Natural Resources Canada will release a Discussion Paper to obtain feedback on the proposed regulatory approach, anticipated in fall 2019.

Information on when consultation opportunities will occur will appear on Natural Resources Canada’s Public Consultation Opportunities webpage and the NEB’s Consultation and Engagement webpage.

Further information

National Energy Board contact information
Melissa Mathieson
Regulatory Policy
Telephone: (403) 870-4572
Toll Free: 1-800-899-1265
Fax: (403) 292-5503
Email: melissa.mathieson@neb.one.gc.ca

Date the regulatory initiative was first included in the Forward Regulatory Plan
April 1, 2019

Consult the Canadian 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 Canadian 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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