Forward Regulatory Plan: 2019 to 2021 – Designated Company Cost Recovery Regulations

Enabling act(s)
Canadian Energy Regulator Act; Pipeline Safety Act

Description
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under the National Energy Board Act remain in force under the Canadian Energy Regulator Act (CER Act) until they are repealed or others made in their stead.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.

This regulatory initiative is associated with the CER’s Regulatory Stock Review Plan.

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.

Consultations
Stakeholders were given the opportunity to comment on a regulatory proposal from January 8 to February 14, 2018. Stakeholders will have an opportunity to comment on the proposed draft regulations through the Canada Gazette, Part I process, anticipated in spring 2020.

Information on when these consultation opportunities will occur will be available on the CER’s Consultation and Engagement webpage.

Further information

For further information, please refer to the Proposed Designated Company Cost Recovery Regulations.

Canada Energy Regulator contact information
Rumu Sen
Regulatory Policy
Telephone: (403) 390-6177
Toll Free: 1-800-899-1265
Fax: (403) 292-5503
Email: rumu.sen@cer-rec.gc.ca

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:

• Federal regulatory management
• Learn more about regulatory cooperation

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

• Consulting with Canadians
• Canada Gazette

Date modified:

2019-11-04