Canada Energy Regulator 2023–24 Departmental Results Report

• Description
• Progress on results
• Resources required to achieve results
• Related government–wide priorities
• Program inventory

Results Achieved

• Procedural Fairness
  Court decisions on appeals of CER decisions or recommendations based on procedural fairness are a measure of the fairness of a process. The CER continued its strong performance in this area with no decisions overturned on judicial appeal due to procedural fairness.

• Dispute Resolution
  The Dispute Resolution process plays a vital role in how the CER fulfills its mandate to help balance the interests of all Canadians in the stewardship of pipelines and energy development in Canada. Dispute resolution refers to the processes and methods (i.e., the Complaint Resolution Process and Alternative Dispute Resolution (ADR) Process) used to resolve disputes between companies and rights holders, owners and users of lands, Indigenous Peoples, other orders of government, and nongovernmental organizations. By participating in Dispute Resolution processes, parties can directly address their specific concerns about the CER’s regulated facilities. In 2023–24, the CER met 100% of its land matter complaint and ADR service standards.

  Disputes pertain to CER regulated facilities and activities, such as pipeline maintenance and pipeline application hearings. Most of these issues are related to compensation, access to land, damage to property, crossings, construction noise, notification, applications, and detailed route hearings.

Results Achieved

• Infrastructure Applications
  This past fiscal year, the Commission adjudicated 48 infrastructure applications. This included one large infrastructure application – NorthRiver Midstream’s NEBC Connector Project. The Commission recommended that the project be approved, subject to 49 conditions. The Commission also held hearings for Trans Mountain’s applications for a route deviation in the Pípsell (Jacko Lake) area, and for a change in the size and thickness of a 2.3 km segment of pipeline in the Fraser Valley. The Commission adjudicated on another 11 small infrastructure applications, and 19 Onshore Pipeline Regulations (OPR) applications (i.e., Reactivation, Deactivation, and Decommissioning). All infrastructure applications met service standards and legislated time limits. For a complete breakdown of Commission decisions and recommendations, please see the 2023–24 Annual Report of the Commission of the Canada Energy Regulator on the CER website.

• Tolls and Tariffs Applications
  The Commission adjudicated several tolls and tariffs applications in 2023–24, including an application from Trans-Northern Pipelines Inc. for a new Incentive Tolls Settlement Agreement, and an application from NOVA Gas Transmission Ltd. to affirm the toll methodology applicable to the North Montney Mainline. The Commission also ruled on several toll settlement applications, including approving Enbridge's application for the Mainline Tolling Settlement which determined the calculation of tolls for shippers to move their products on the pipeline through December 2028. Through its toll and tariff process improvement initiative^Footnote 1, the Commission finalized several processes, procedures, and templates – resulting in more consistent processes for efficient and transparent adjudication based on best practices. The Commission continues to be occupied with several toll applications, including an application from Trans Mountain to set interim tolls on the Trans Mountain system, post-expansion.

Results Achieved

• Crown Consultation^Footnote 2
  The CER’s approach to Crown consultation occurs primarily through the Commission’s adjudication processes. Indigenous Peoples are encouraged to participate for their views to be heard directly by the Commission. For project applications where the Governor in Council is the final decision–maker, the CER (in its capacity as Crown Consultation Coordinator) conducts supplemental Crown consultation activities with Indigenous communities before, during, and after the Commission’s assessment process. Crown consultation reports are prepared, including recommendations on how to avoid or mitigate the project’s impacts on the rights of Indigenous Peoples, and submitted to the Commission for consideration during the hearing. This helps inform the Commission’s assessment of a project, including a project’s impacts to rights and any accommodation measures, including conditions. The CER also consults Indigenous communities on the Commission’s Recommendation Report to understand if there are any outstanding impacts to rights and whether further accommodation is needed. This helps inform the GIC's decision on the project application.

  The CER conducted a review and learn of the Crown Consultation process for NGTL’s West Path Delivery 2023 Project. Highlights included the benefits of more flexible options for Indigenous communities to participate in project reviews and leveraging federal authorities’ mandates to provide comprehensive mitigations to impacts to the rights and interests of Indigenous Peoples. Many of the learnings were applied and implemented on the NorthRiver Midstream’s NEBC Connector Project, the next project where the CER conducted supplemental Crown consultation.

  Throughout 2023, the CER conducted supplemental Crown consultation activities for NorthRiver Midstream’s application for the NEBC Connector Project. Crown consultation highlights include:

• For the first time since 2015, the GIC decision on a major infrastructure application with supplemental Crown consultation was completed on time^Footnote 3, without any extensions to legislative timelines. The GIC approved the project and determined that the duty to consult was adequately met and there were no legal challenges to the GIC’s decision.
• The Crown Consultation Coordinator held a total of 71 consultation meetings with Indigenous communities and filed eight substantive consultation submissions during the Commission’s hearing process, including 11 recommendations to the Commission for its consideration based on what the CER, in its role as Crown Consultation Coordinator, heard from Indigenous communities.

The CER initiated supplemental Crown consultation activities for Pouce Coupé Pipe Line Ltd.’s Taylor to Gordondale Project in December 2023 and for Westcoast Energy Inc.’s Sunrise Expansion Program in January 2024. These early Crown consultation activities will help identify areas of concern, as well as opportunities, for Indigenous communities and ways in which the Commission’s hearing process can deepen Indigenous communities’ involvement and input.

• Guidance updates and reviews
  Clear guidance to proponents supports a timely and transparent adjudicative process. The CER continues to exchange information with other federal departments and agencies to ensure guidance to proponents on cumulative effects is clear and consistent. This year, the CER contributed to the Canada Cumulative Effects Compendium, a central platform for sharing federal cumulative effects initiatives.

  The CER continued its multi-year review of the Environmental and Socio–economic Assessment and Lands sections of the Filing Manual, aligning its engagement with the review of the OPR^Footnote 4.

  In 2023–24 the CER also continued to consider and prepare for the energy transition and regulation of hydrogen pipelines by reviewing codes and standards, regulations, and guidance to proponents.

Results Achieved

• Applications Dashboard
  In 2023-24, the CER expanded the use of the external facing Applications Dashboard tool, moving from the pilot phase to a wide deployment. Application Dashboards were launched for all small infrastructure applications and any application associated with a hearing process that was filed this fiscal year. In total, 20 dashboards were created. The Applications Dashboard is a tool that improves access to reliable data and information which allows more informed decision-making, better process transparency and efficiency, and more meaningful engagement for all participants.

• CER Portal
  The CER has delivered the internal pilot release of the CER Portal, a deliverable under the Data and Digital Innovation Strategic Priority. The CER Portal is a secure and integrated access point for the CER's adjudication tools and, eventually, all aspects of the CER-regulated facility lifecycle. When completed, this portal will be used by companies for application and document submissions, as well as by CER staff, the Commission, and participants in CER processes.

• Early Engagement with the Public
  The CER undertook early engagement activities with the general public related to Pouce Coupé Pipe Line Ltd.’s Taylor to Gordondale Project and Westcoast Energy Inc.’s Sunrise Expansion Program. The CER’s early engagement activities focus on educating the public on the CER’s role as a regulator and providing information on the proposed projects and how to participate in the upcoming hearings, including participant funding.

• Description
• Progress on results
• Resources required to achieve results
• Related government-wide priorities
• Program inventory

Results Achieved

• Compliance Verification Activities
  The CER aims to achieve zero incidents, meaning there is no harm to people or the environment on the energy infrastructure it regulates. The CER follows a risk-based approach in planning and conducting Compliance Verification Activities (CVAs). When the activities of regulated companies have the potential to pose greater harm to people or the environment, the CER increases oversight through engagement, inspections, investigations, audits, and enforcement, when necessary.

  In 2023-24, the CER conducted 204 CVAs, including:

  • 104 inspections
  • 20 emergency response exercises
  • 6 management system audits
  • 68 compliance meetings
  • 6 manual reviews

  In addition to CVAs, the CER provides oversight in other ways, such as:

  • analyses of the root causes of incidents to ensure appropriate corrective actions or to identify preventive actions;
  • examination of conditions of authorizations (e.g. orders and certificates) to verify that companies are taking the necessary steps to comply with these conditions;
  • responses to emergencies when they happen to verify that companies are protecting the safety of people and minimizing and remediating any environmental damage;
  • reviews of Operations and Maintenance notifications as part of ongoing oversight of operating facilities; and
  • reviews of contaminated sites documentation to oversee companies' management of contamination and remediation activities.

• Construction Oversight of the Trans Mountain Expansion Project
  In 2023-24, construction activities on the Trans Mountain Expansion Project (TMEP) continued across all areas of the Project. The CER continues to hold the company accountable for fulfilling project conditions and for meeting its regulatory obligations and commitments, including as it transitions to the operational phase in 2024-25.

  The CER completed 51 CVAs on TMEP in 2023-24, including inspections, emergency response exercises, and compliance meetings. Indigenous Monitors from the Trans Mountain Expansion - Indigenous Advisory and Monitoring Committee participated in 41 CVAs with CER staff. Review of project condition compliance filings continued throughout the year, including consideration of various relief requests, primarily related to the timing of compliance submissions, but also to variance applications and route deviations.

  During 2023-24, the company received 18 Leave to Open authorizations from the CER, resulting in the company being able to begin operating portions of the Project such as pump stations and expanded terminals. The Leave to Open process is the final determination by the CER that the pipeline or facilities are safe to use and can begin to transport crude oil.

  The company was required to report serious injuries that occurred during construction, near-miss events, and incidents that harmed the environment. Trans Mountain reported five serious injuries in 2023-24, a 69 percent reduction from the previous year. Over half of the injuries reported in 2023-24 involved contact with equipment or materials. The CER followed up on all serious injuries to ensure the company identified causes, corrective actions and preventative actions. Environmental incidents this year were largely construction related, primarily within the themes of sedimentation events, inadvertent fluid releases, and physical alterations related to construction resulting in impacts to watercourses and fish.

  CER Inspection Officers issued five Orders to Trans Mountain during 2023-24 in cases where non- compliances related to Safety, Environmental Protection, or Socio-Economic matters warranted enforcement action.

• Remediation Oversight
  Remediation oversight activities in 2023-24 focused on expanding the efficiency of oversight of the 475 active contaminated sites under CER jurisdiction. Staff conducted 10 CVAs (meetings and field inspections) focused on contaminated sites themes, reviewed 460 annual updates and completed review of 28 Remedial Action Plans, Risk Management Plans and Closure Reports.

  As part of the continual evolution of the Remediation Process, the CER published a bulletin that clarifies its expectations for contents of Remediation Closure Reports called a closure checklist.

• Indigenous Monitoring
  The CER is committed to advancing Reconciliation with Indigenous Peoples and finding new ways to include Indigenous Peoples in the oversight of federally regulated infrastructure, as it builds trust and confidence while strengthening environment and safety oversight. The CER continues to increase the involvement of Indigenous Monitors through several aspects of its compliance verification activities.

  Additionally, the CER collaborated with Indigenous groups and communities, other regulators and regulated companies on processes to improve Indigenous oversight, including Sites of Indigenous Significance and land reclamation.

• Security
  The CER’s Security team conducted 16 CVAs in 2023-24, seven of which focused on cyber security. The CER launched a new cyber security CVA process focused on the cyber security measures that regulated companies have implemented on their operational technology system. Significant work was undertaken to mature the cyber security CVA process, including strengthening the CER’s relationships with stakeholders to better understand the cyber security threats regulated companies are facing, participating in formalized cyber security training, and soliciting feedback from partners on how to continue to mature the CER’s cyber security oversight of regulated companies.

• Emergency Management
  The Emergency Management program conducted 41 CVAs in 2023-24. This included 12 compliance meetings, 20 exercise evaluations, 3 inspections, and 6 emergency procedures manual reviews. Identified trends in emergency response inform updates to internal emergency management work instructions and processes, helping the CER to prepare for and operate effectively during an emergency and to continually improve response readiness.

  An Information Advisory regarding emergency preparedness and response at liquid storage facilities was issued in January 2024. The advisory applies specifically to the processes for hazard identification and analysis, and for the evaluation of risks essential to the development and implementation of controls. This includes pre-fire planning and determining resource requirements for responding to fire incidents that could occur at liquid storage tank facilities. Information advisories are shared directly with regulated companies and published on the CER’s website.

• Audits and Enforcement

  • Management System Audits
    

  The CER’s operational audits evaluate how a company manages its activities. The CER requires all regulated companies to have effective management systems and protection programs.

  In 2023-24, the CER conducted six operational audits: three addressing control room management and three covering damage prevention. Three of those audits scored over 90%, which reflects the degree to which companies demonstrate compliance with audited regulatory requirements. The CER also oversaw the implementation of corrective and preventive action plans to address deficiencies identified in the previous year’s audits. An Information Advisory summarizing the previous year 2022-23 audit findings was also issued to all companies, so that the entire regulated sector can benefit and apply the learnings from the audits, if applicable, as part of their own continual improvement commitment

  The CER publishes management system audit reports and related documents on its Compliance and Enforcement webpage.

  • Administrative Monetary Penalties

  Administrative Monetary Penalties (AMPs) provide the CER with a flexible enforcement tool to promote compliance with legislation, regulations, decisions, permits, orders, licenses or certificate conditions. The CER issued one AMP in 2023-24, to Minell Pipeline Ltd., for the pipeline contact causing release of approximately 84,000 m3 of natural gas.

• Safety Culture
  The CER has committed to building an improved understanding of safety culture across the pipeline industry. In 2023-24, the CER developed and implemented its latest three-year Safety Culture strategy and workplan. Efforts through 2026 will continue to focus on two goals:

  • System-wide influence: The CER will take a system-wide approach to influencing a positive safety culture across industry that supports effective management of threats to people and the environment.
  • Company performance: The CER will enhance company understanding and detection of underlying human and organizational factors to support improved risk management and safety culture maturity.

  This year, the CER developed and published Human and Organizational Performance guidance and tools for use by industry with work underway to launch complementary interactive e-learning modules (CER Safety Culture Learning Portal). The CER also facilitated industry-wide learning through annual workshops with regulated companies, including two sessions designed specifically for Chief Executive Officers and executive leaders. This year, the CER continued its outreach activities, including leadership and participation in the North American Regulators Working Group on Safety Culture.

• Regulatory Framework Program
  The Regulatory Framework program delivers the CER’s regulatory policy functions and is dedicated to implementing a Regulatory Framework that is robust, clear, transparent, coherent and consistent. To achieve this goal, the CER works with a broad range of stakeholders and rights holders to continually improve regulatory tools; ensuring regulations that are in force remain appropriate and regulatory documents, policies and guidance achieve their intended purpose. In 2023-24, the CER advanced work on various projects described in our Regulatory Framework Plan. This included work to update regulations, guidance and standards.

  The CER’s largest regulatory project continues to be the updates to the OPR and the Filing Manual. In 2023-24, the CER continued to engage on updates to the OPR and to analyze the feedback that has been provided to date. In April 2023 the CER issued a "What We Heard” report which reflected, at a high level, what we heard from Indigenous Peoples, regulated companies, landowners, and other stakeholders in the first phase of engagement on the project. Through Phase 1 engagement and ongoing IAMC collaboration, a plain language Backgrounder and 13 Topic Papers to support engagement in Phase 2 are now published on the CER Dialogue page, along with a call for proposals for funding for Indigenous-led engagement, to be followed by a series of information sessions and workshops. Our goal is to update the OPR to reflect best practices since they were first published and address areas where our regulations were historically silent - such as Indigenous rights and interests, socio-economic impacts, and company engagement processes.

  Updates to the Filing Manual will help to ensure companies have a clear understanding of the information needed to inform effective decision-making as part of the CER’s adjudicative processes, which helps improve transparency and timeliness of processes.

• Abandonment Cost Estimates and Set Aside and Collection Mechanism Review
  As part of the CER’s financial compliance program, the second five-year review of Abandonment Cost Estimates (ACE) and first Set Aside and Collection Mechanism review was initiated in 2021. In Part 1 of the review, the Commission applied a new CER-developed method based on Geographic Information Systems to calculate Base Case 2021 ACEs for each company. On 15 June 2023, at the conclusion of Part 1 of the review, the Commission issued its report and each company’s Base Case 2021 ACE. On 27 March 2024, the Commission released its reasons and approved new ACEs for companies with CER-regulated pipeline systems. The Commission provided higher, future-proofed dollar values for company ACEs for companies holding letters of credit or surety bonds.

• Description
• Progress on results
• Resources required to achieve results
• Related government-wide priorities
• Program inventory

• Description
• Progress on results
• Resources required to achieve results
• Related government–wide priorities
• Program inventory

Results Achieved

• National Engagement Strategy
  The CER implemented its National Engagement Strategy, a deliverable of both the Trust and Confidence and Reconciliation Strategic Priorities, which includes a National Engagement Framework, a national plan and an Indigenous Engagement Blueprint. The Strategy supported the organization in:

  • leveraging relationships established at the regional and national levels to better understand the views and concerns that inform our decisions and work;
  • conducting engagement in a coordinated manner toward common objectives while embracing reconciliation;
  • sharing the information we collect through engagement to improve our work; and
  • equipping staff with the knowledge, skills, and tools to engage meaningfully.

The application of the National Engagement Strategy is supported by the Engagement Centre of Expertise, a formalized structure designed to support staff in their Indigenous and stakeholder engagement efforts.

• Grants and Contributions
  Since April 2023, the CER expanded the use of grants and contributions beyond Participant Funding to three additional funding streams^Footnote 11 : Policy Dialogue, Research, and Indigenous Capacity Support. The funding administered this year was in support of the following:

  Participant funding – facilitates participation in many adjudication processes and related Crown consultation for energy projects, including:

  • Contribution and Post-Decision Grant to participate in hearing and/or Crown Consultation activities for NorthRiver Midstream’s NEBC Connector Project;
  • Grant for early engagement with Crown Consultation Coordinator on Pouce Coupé Pipe Line Ltd.’s Taylor to Gordondale Project and Westcoast Inc.’s Sunrise Expansion Program;
  • Grant for impacted communities to participate in hearing for Imperial Oil’s Variance Application for Operations Authorization and Application for Line 490 Replacement Activities; and
  • Grant to participate in Part 2 of the Abandonment Cost Estimates and Set Aside and Collection Mechanism Review.

  Policy Dialogue – supports engagement on regulations, policy and energy information products, including:

  • Grants and contributions to enable engagement planning with the Indigenous Advisory and Monitoring Committees on the OPR and Filing Manuals Review;
  • Contribution to engage on implementing the United Nations Declaration on the Rights of Indigenous Peoples;
  • Grant to enable feedback on CER’s Market Snapshot series; and
  • Contribution for members of the Indigenous Advisory Committee.

  Indigenous Capacity Support - enables involvement in lifecycle oversight activities and related Indigenous monitoring committees.

  • Grant for co-writing and technical workshop to co-develop a mechanism aimed at increasing Indigenous involvement in the CER’s compliance and oversight activities for the NOVA Gas Transmission Ltd. (NGTL) System.

Results Achieved

• Indigenous Engagement
  The CER’s work with the Trans Mountain Expansion and Line 3 Indigenous Advisory Monitoring Committees (IAMCs) represents essential steps toward building trust and mutual capacity between the CER, Indigenous Peoples and communities impacted by CER-regulated infrastructure. The CER is confident that the enhanced involvement of First Nations, Inuit, and Métis communities will continue to bring meaningful changes to how the CER works.

  The CER continued to work with Indigenous communities to co-develop a mechanism aimed at increasing Indigenous involvement in the CER’s compliance and oversight activities for the NGTL System. In 2023-24, the CER published a report that was co-written by Indigenous participants and CER staff summarizing what was discussed during the leadership meetings that took place in 2022-23. Over the last year, the CER also met with technical staff from participating Indigenous communities to define the governance, structure, and approach for the collaborative mechanism. A summary report, co-written with Indigenous participants, will be released in fall 2024 and will guide the drafting of the terms of reference and the implementation of this initiative.

  In spring 2023, the CER co-developed a workshop with members from both the Trans Mountain Expansion and Line 3 IAMCs, including the materials, to test an approach for Phase 2 engagement on the OPR. The workshop was held in June 2023 and gave the CER invaluable feedback on its approach to engagement. The CER committed to working with the IAMCs, both to refine future engagement approaches, and on specific regulatory options for the regulations and guidance.

  The CER implemented a process to protect historical hearing transcripts and audio files (1977 to the present), upon request from First Nations, Inuit, and Métis communities who participated in hearings. This process was developed with guidance from Elders and Knowledge Keepers from Treaty 7 and urban Elders living in Calgary, as well as from First Nations archivists in Alberta and British Columbia, and best practices emerging in the field of Reconciliation and Information Management. One request for historical protection has been fulfilled, and two others are under way. As recommended in federal policy instruments on Indigenous Data Sovereignty, this returns control to Indigenous Nations over knowledge they shared with the regulator.

  Lastly, the CER’s Indigenous Cultural Intelligence and Change Management Framework has guided individual and organization-wide transformative change at the CER. The CER continues to build its Indigenous cultural intelligence through learning opportunities on the history of Indigenous Peoples, including their cultural and treaty rights.

• Stakeholder Engagement
  The CER supported several engagement initiatives designed to gather the input of Canadians and influence the CER’s decisions and work, as well as provide insight and information to enhance damage prevention and safety outcomes. These included delivering initiatives with safety at the forefront and collaborating with and representing regulatory stakeholders on the Canadian Common Ground Alliance Damage Prevention Senate. It also included presenting the CER “big picture” aggregate data analytics from contravention reports to identify trends, issues and focus areas, and holding damage prevention workshops with industry participants. The CER hosted four virtual workshops in the past two years aimed at improving safety outcomes and creating meaningful dialogue, with over 100 people attending each workshop.

  The CER leads the Land Matters Group (LMG) Advisory Committee, a forum for members to exchange information on the protection of the rights and interests of landowners while supporting the goal of achieving regulatory excellence. For the first time in four years, the committee met in person to discuss land related initiatives led by the CER, and provide feedback based on the needs and interests of the stakeholder groups they represent. They also reviewed the current terms of reference and work plan for the purpose of developing new priorities for the next three years. The LMG News, a quarterly e-newsletter distributed to the membership, is posted on the CER website.

• Over the past year, the CER conducted engagement that delivered relevant information, met intended objectives, and reduced barriers to participation. The CER recognizes that building trust-based relationships fosters a better understanding of broad perspectives and issues important to Canadians. The CER will continue to use transparent and accountable engagement practices to improve its operations.
• The CER performed outreach to Indigenous partners, landowners, industry and other stakeholders to learn how to best engage with them. The CER continued to conduct targeted engagement activities in a way that reflects and incorporates feedback to optimize our reach to diverse stakeholders.
• The LMG Advisory Committee continued to expand its membership by being more inclusive with new members representing a greater number of regions and more diversified with the addition of the electricity sector within the industry group.
• The CER introduced a new internal assessment to collect feedback that supplemented the standard external participant survey. The new internal assessment recognizes that different methods for gaining feedback from participants are used across the organization such as narratives, customized surveys, and ad hoc comments. The CER implemented this new process and collected quarterly data starting in 2023-24. The new process aligns with the engagement principles of transparency, relevancy, inclusiveness, accountability, and adaptability.

Information on the CER’s contributions to Canada’s Federal Implementation Plan on the 2030 Agenda and the Federal Sustainable Development Strategy can be found in our 2023 to 2027 Departmental Sustainable Development Strategy. Details on the CER’s progress in contributing to the 2030 Agenda and the Federal Sustainable Development Strategy can be found in our 2023-2024 Departmental Sustainable Development Strategy Report, which will be available November 2024 on the CER’s website

• The CER explored and expanded the use of online participatory engagement tools, feedback mechanisms and data-mining techniques. This helps the CER better identify and share information at the community level so that the organization has the right information when meeting with Indigenous communities and stakeholders about community-specific issues.
• The CER has been actively using CER Dialogue to deliver online engagement working with discussion forums, idea boards and surveys, and to seek comments and feedback regarding CER programs, regulatory changes and publications.
• The CER expanded the use of CER Dialogue to create project workspaces for the LMG Advisory Committee and Regulated Industry Engagement that only registered participants had access to. New project pages were created to facilitate online engagement for the review and update of the OPR, Event Reporting Guidelines, and other projects.

• Description
• Progress on results
• Resources required to achieve results
• Contracts awarded to Indigenous businesses

• Spending
• Funding
• Financial statement highlights
• Human resources

Variance between 2024-25 planned spending and 2025-26 planned spending

The 2025-26 planned spending is $10.48 million lower than the 2024-25 planned spending mainly due to:

• a decrease of $6.94 million mainly related to a related to a Budget 2022 funding for regulatory renewal activities including net-zero modelling, as well as funding to implement the Impact Assessment Act;
• a decrease of $2.46 million related Grants and Contributions;
• a decrease of $0.66 million mainly related to employee benefit plan costs; and
• a decrease of $0.42 million related to Refocusing Government Spending Initiative.

Variance between 2025-26 planned spending and 2026-27 planned spending

The 2026-27 planned spending is $1.07 million lower than the 2025-26 planned spending primarily related to the Refocusing Government Spending Initiative.

This bar chart shows the CER’s six year (voted and statutory) spending trend. It includes actual spending for the fiscal years 2021-22 through 2023-24 and planned spending for the fiscal years 2024-25 through 2026-27.

This bar chart shows the CER’s six-year spending trend. It includes actual spending for the fiscal years 2021-22 through 2023-24 and planned spending for the years 2024-25 to 2026-27. Amounts are depicted by Voted and Statutory amounts. An explanation of spending variances is provided below Table 1: Actual three-year spending on core responsibilities and internal services and Table 2: Planned three-year spending on core responsibilities and internal services.

The CER is funded through Parliamentary appropriations. The Government of Canada currently recovers a large majority of the appropriation from the industry the CER regulates. All collections from cost recovery invoices are deposited to the account of the Receiver General for Canada and credited to the Consolidated Revenue Fund.

Pipeline and power line companies that hold authorizations under the CER Act are subject to cost recovery. Applications before the CER for new facilities are not subject to cost recovery until the facility is placed into service, unless the company does not have any prior facilities regulated by the CER in which case a one-time levy is assessed following the authorization of construction.

Cost recovery is carried out on a calendar year basis.

Variance between 2021-22 actual full-time equivalents and 2022-23 actual full-time equivalents

The increase of 12.5 full-time equivalents from 2021-22 to 2022-23 is primarily due to:

• an increase of 40.1 full-time equivalents related to a Budget 2022 funding for regulatory renewal activities including Indigenous engagement and net-zero modelling; as well as funding to implement the Impact Assessment Act;
• a decrease of 10.3 full-time equivalents related to a funding to improve the CER’s ability to interpret and make data available digitally to Canadians;
• a decrease of 6.1 full-time equivalents related to changes across the organization to meet operational requirements;
• a decrease of 5.8 full-time equivalents related to a Budget 2018 initiative to transition to new impact assessment and regulatory processes; and
• a decrease of 5.4 full-time equivalents related to Budget 2017 Indigenous Advisory and Monitoring Committees.

Variance between 2022-23 actual full-time equivalents and 2023-24 actual full-time equivalents

There was an insignificant decrease of 0.3 full-time equivalents from 2022-23 to 2023-24.

Variance between 2024-25 planned full-time equivalents and 2025-26 planned full-time equivalents

The decrease of 34.0 planned full-time equivalents from 2024-25 to 2025-26 is primarily due to a Budget 2022 funding for regulatory renewal activities, including Indigenous engagement and net-zero modelling as well as funding to implement the Impact Assessment Act.

Appropriate minister:
The Honourable Jonathan Wilkinson, P.C., M.P.

Institutional head:
Tracy Sletto

Ministerial portfolio:
Energy and Natural Resources

Enabling instrument:
Canadian Energy Regulator Act

Year of incorporation / commencement:
2019

Other:
The CER Act came into force on 28 August 2019.

Headquarters:
Calgary

Mailing address:
Suite 210, 517 10th Avenue SW
Calgary, Alberta T2R 0A8

Office Telephone:
403-292-4800

Toll free:
1-800-899-1265

Fax:
403-292-5503

Toll free fax:
1-877-288-8803

Email:
info@cer-rec.gc.ca

Website:
www.cer-rec.gc.ca

appropriation (crédit):
Any authority of Parliament to pay money out of the Consolidated Revenue Fund.

budgetary expenditures (dépenses budgétaires):
Operating and capital expenditures; transfer payments to other levels of government, departments or individuals; and payments to Crown corporations.

core responsibility (responsabilité essentielle):
An enduring function or role performed by a department. The intentions of the department with respect to a core responsibility are reflected in one or more related departmental results that the department seeks to contribute to or influence.

Departmental Plan (plan ministériel):
A report on the plans and expected performance of an appropriated department over a 3-year period. Departmental Plans are usually tabled in Parliament each spring.

departmental priority (priorité):
A plan or project that a department has chosen to focus and report on during the planning period. Priorities represent the things that are most important or what must be done first to support the achievement of the desired departmental results.

departmental result (résultat ministériel):
A consequence or outcome that a department seeks to achieve. A departmental result is often outside departments’ immediate control, but it should be influenced by program-level outcomes.

departmental result indicator (indicateur de résultat ministériel):
A quantitative measure of progress on a departmental result.

departmental results framework (cadre ministériel des résultats):
A framework that connects the department’s core responsibilities to its departmental results and departmental result indicators.

Departmental Results Report (rapport sur les résultats ministériels):
A report on a department’s actual accomplishments against the plans, priorities and expected results set out in the corresponding Departmental Plan.

Full-time equivalent (équivalent temps plein):
A measure of the extent to which an employee represents a full person-year charge against a departmental budget. For a particular position, the full-time equivalent figure is the ratio of number of hours the person actually works divided by the standard number of hours set out in the person’s collective agreement.

gender-based analysis plus (GBA Plus) (analyse comparative entre les sexes plus [ACS Plus]):
An analytical tool used to assess how different groups of women, men, and gender-diverse people experience policies, programs, and other initiatives. GBA Plus is a process for understanding who is impacted by the issue or opportunity being addressed by the initiative; identifying how the initiative could be tailored to meet the diverse needs of the people most impacted; and anticipating and mitigating any barriers to accessing or benefitting from the initiative. GBA Plus is an intersectional analysis that goes beyond biological (sex) and socio-cultural (gender) differences to consider other factors, such as age, disability, education, ethnicity, economic status, geography (including rurality), language, race, religion, and sexual orientation.

government-wide priorities (priorités pangouvernementales):
For the purpose of the 2022-23 Departmental Results Report, government-wide priorities are the high-level themes outlining the government’s agenda in the November 23, 2021, Speech from the Throne: building a healthier today and tomorrow; growing a more resilient economy; bolder climate action; fighting harder for safer communities; standing up for diversity and inclusion; moving faster on the path to reconciliation; and fighting for a secure, just and equitable world.

horizontal initiative (initiative horizontale):
An initiative where two or more federal departments are given funding to pursue a shared outcome, often linked to a government priority.

Indigenous business (entreprise autochtones):
For the purpose of the Directive on the Management of Procurement Appendix E: Mandatory Procedures for Contracts Awarded to Indigenous Businesses and the Government of Canada’s commitment that a mandatory minimum target of 5% of the total value of contracts is awarded to Indigenous businesses, a department that meets the definition and requirements as defined by the Indigenous Business Directory.

non budgetary expenditures (dépenses non budgétaires):
Net outlays and receipts related to loans, investments, and advances, which change the composition of the financial assets of the Government of Canada.

performance (rendement):
What a department did with its resources to achieve its results, how well those results compare to what the department intended to achieve, and how well lessons learned have been identified.

performance indicator (indicateur de rendement):
A qualitative or quantitative means of measuring an output or outcome, with the intention of gauging the performance of a department, program, policy, or initiative respecting expected results.

plan (plan):
The articulation of strategic choices, which provides information on how a department intends to achieve its priorities and associated results. Generally, a plan will explain the logic behind the strategies chosen and tend to focus on actions that lead to the expected result.

planned spending (dépenses prévues):
For Departmental Plans and Departmental Results Reports, planned spending refers to those amounts presented in Main Estimates. A department is expected to be aware of the authorities that it has sought and received. The determination of planned spending is a departmental responsibility, and departments must be able to defend the expenditure and accrual numbers presented in their Departmental Plans and Departmental Results Reports.

program (programme):
Individual or groups of services, activities or combinations thereof that are managed together within the department and focus on a specific set of outputs, outcomes or service levels.

program inventory (répertoire des programmes):
Identifies all the department’s programs and describes how resources are organized to contribute to the department’s core responsibilities and results.

result (résultat):
A consequence attributed, in part, to a department, policy, program or initiative. Results are not within the control of a single department, policy, program or initiative; instead they are within the area of the department’s influence.

statutory expenditures (dépenses législatives):
Expenditures that Parliament has approved through legislation other than appropriation acts. The legislation sets out the purpose of the expenditures and the terms and conditions under which they may be made.

target (cible):
A measurable performance or success level that a department, program or initiative plans to achieve within a specified time period. Targets can be either quantitative or qualitative.

voted expenditures (dépenses votées):
Expenditures that Parliament approves annually through an appropriation act. The vote wording becomes the governing conditions under which these expenditures may be made.