Regulations Amending Certain Regulations Made Under the National Energy Board Act: SOR/2020-51
Canada Gazette, Part II, Volume 154, Number 7
SOR/2020-51 March 16, 2020
CANADIAN ENERGY REGULATOR ACT
P.C. 2020-143 March 13, 2020
Her Excellency the Governor General in Council, on the recommendation of the Minister of Natural Resources, pursuant to paragraph 389(1)(c) of the Canadian Energy Regulator Act footnote a, approves the annexed Regulations Amending Certain Regulations Made Under the National Energy Board Act, made by the Canadian Energy Regulator.
The Canadian Energy Regulator, pursuant to paragraph 389(1)(c) of the Canadian Energy Regulator Act footnote a, makes the annexed Regulations Amending Certain Regulations Made Under the National Energy Board Act.
Calgary, November 25, 2019
Chief of Staff and Corporate Secretary, Canadian Energy Regulator
Regulations Amending Certain Regulations Made Under the National Energy Board Act
Oil Pipeline Uniform Accounting Regulations
1 Schedule VII to the Oil Pipeline Uniform Accounting Regulations footnote 1 is replaced by the following:
Group 1 Companies
- Enbridge Pipelines Inc.
- Enbridge Pipelines (NW) Inc.
- Kinder Morgan Cochin ULC
- Trans Mountain Pipeline ULC
- Trans-Northern Pipelines Inc.
- TransCanada Keystone Pipeline GP Ltd.
Gas Pipeline Uniform Accounting Regulations
2 Schedule VIII to the Gas Pipeline Uniform Accounting Regulations footnote 2 is replaced by the following:
Group 1 Companies
- Alliance Pipeline Ltd.
- Foothills Pipe Lines Ltd.
- Maritimes & Northeast Pipeline Management Ltd.
- NOVA Gas Transmission Ltd.
- TransCanada PipeLines Limited
- Trans Québec & Maritimes Pipeline Inc.
- Westcoast Energy Inc., carrying on business as Spectra Energy Transmission
Coming into Force
3 These Regulations come into force on the day on which they are registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Regulations.)
An Act to enact the Impact Assessment Act and the Canadian Energy Regulator Act, to amend the Navigation Protection Act and to make consequential amendments to other Acts repeals the National Energy Board Act (NEB Act) and replaces it with the Canadian Energy Regulator Act (CER Act). At the same time the National Energy Board (NEB) will be replaced with the Canadian Energy Regulator (CER). The CER, similar to the NEB, provides regulatory oversight over the full lifecycle of certain federal energy infrastructure including pipelines that cross interprovincial and international borders and international and designated interprovincial power lines; the regulator is also responsible for ensuring that its regulated infrastructure is constructed, operated and abandoned in a manner that is safe, secure, efficient, and protects people, property and the environment.
Regulations made under the NEB Act remain in force following the repeal of the NEB Act, due to paragraph 44(g) of the Interpretation Act. This provision provides that all regulations made under a repealed enactment remain in force and are deemed to have been made under the new enactment that replaces it (i.e. the CER Act), in so far as they are not inconsistent with the new enactment (and until such time as the former regulations are replaced or expressly repealed).
Two of these regulations made under the NEB Act, the Oil Pipeline Uniform Accounting Regulations (OPUAR) and the Gas Pipeline Uniform Accounting Regulations (GPUAR), have schedules that require updating to ensure clarity and certainty for regulated companies. This is not a substantive change, but rather a codification of what is currently happening in practice.
The CER will regulate companies that own and/or operate interprovincial or international pipelines. The OPUAR and the GPUAR (together, the Regulations), made by the CER with the Governor in Council approval, provide standardized accounting for assets and expenses subject to CER regulation.
For financial regulation purposes, the companies are divided into two groups:
- Group 1 consists of those pipeline companies with extensive systems and several third-party shippers; and
- Group 2 consists of the remaining pipeline companies that operate smaller, less complex pipelines with few or no third-party shippers.
The Regulations contain specific requirements for Group 1 companies and Group 2 companies. The schedules attached to the Regulations also provide a list of the Group 1 oil and gas companies.
The schedules in the Regulations containing the lists of Group 1 companies are not, however, up to date. Schedule VIII of the GPUAR and Schedule VII of the OPUAR require updating, as these Regulations will remain in force under the CER Act.
The objective of the Regulations Amending Certain Regulations Made Under the National Energy Board Act (the Amending Regulations) is to update the schedules in regulations that contain the lists of Group 1 oil and gas companies, subject to financial regulation.
The authority for these Regulations, previously made under section 129 of the NEB Act, appears in section 389 of the CER Act.
The Amending Regulations update the list of Group 1 oil companies in Schedule VII of the OPUAR and the list of Group 1 gas companies in Schedule VIII of the GPUAR. The CER maintains a list of Group 1 and Group 2 companies on its website.
Schedule VII of the OPUAR is replaced by the following:
- Enbridge Pipelines Inc. (added)
- Enbridge Pipelines (NW) Inc. (added)
- Kinder Morgan Cochin ULC (formerly Cochin Pipe Lines Ltd.)
- Trans Mountain Pipeline ULC (formerly Trans Mountain Pipe Line Company Ltd.)
- Trans-Northern Pipelines Inc. (no change)
- TransCanada Keystone Pipeline GP Ltd. (added)
Please note that Interprovincial Pipe Line Limited and Interprovincial Pipe Line (NW) Limited are removed as these companies are no longer regulated entities.
Schedule VIII of the GPUAR is replaced by the following:
- Alliance Pipeline Ltd. (added)
- Foothills Pipe Lines Ltd. (no change)
- Maritimes & Northeast Pipeline Management Ltd. (added)
- NOVA Gas Transmission Ltd. (added)
- TransCanada PipeLines Limited (no change)
- Trans Québec and Maritimes Pipeline Inc. (no change)
- Westcoast Energy Inc., carrying on business as Spectra Energy Transmission (formerly Westcoast Transmission Company Limited).
Please note that Alberta Natural Gas Company Ltd. is removed, as it is no longer a regulated entity.
The Amending Regulations are administrative updates and no consultations have been undertaken. There is no direct impact or change for regulated entities.
Modern treaty obligations and Indigenous engagement and consultation
The Amending Regulations impact Indigenous peoples in the same way that they impact all Canadians subject to the Regulations.
An option of not putting the Amending Regulations in place was considered. However, given the potential lack of clarity and certainty for regulated companies during the transition period to the CER, it was determined that the Amending Regulations were the appropriate instrument.
Costs and benefits
There are no costs associated with the Amending Regulations. The benefit is that the lists of Group 1 oil and gas companies are updated and correct in the Regulations. The Regulations now more accurately reflect what is occurring in practice.
Small business lens
The small business lens does not apply to the Amending Regulations, as there are no costs to small business.
The one-for-one rule does not apply to the Amending Regulations, as there is no change in administrative costs or burden to business.
Regulatory cooperation and alignment
The Amending Regulations do not involve or impact regulatory cooperation or alignment.
Strategic environmental assessment
In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that a strategic environmental assessment is not required.
Gender-based analysis plus
No gender-based analysis plus (GBA+) impacts have been identified for the Amending Regulations.
The Regulations contain specific requirements for Group 1 companies and specific requirements for Group 2 companies. The schedules attached to the Regulations provide a list of the Group 1 companies and these lists are not current; this is because some of the regulated companies have changed names, some regulated companies no longer exist, and some new companies have become federally regulated. Therefore, Schedule VIII of the GPUAR and Schedule VII of the OPUAR require updating as these Regulations continue under the CER Act.
The amendments help to correct or improve the regulatory base and provide clarity and certainty regarding the continued application of the Regulations as they are currently applied.
Implementation, compliance and enforcement, and service standards
The Amending Regulations will update the lists in the Regulations of oil and gas Group 1 companies regulated by the CER. Communications with respect to the continuity of the application of the Regulations will be included in CER communications at the coming into force of the CER Act.
Regulatory Policy Team
Canadian Energy Regulator
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