2023–24 Annual Report of the Canada Energy Regulator

2023–24 Annual Report of the Canada Energy Regulator [PDF 2281 KB]

Copyright/Permission to Reproduce

ISSN 2563-3155

Aerial panoramic of highway during a colorful sunset in fall

Table of Contents

Executive Summary

The Canada Energy Regulator (CER) is Canada’s federal energy regulator. We regulate more than 71,000 kilometres of pipeline in Canada. The CER also regulates 86 international power lines, pipeline tolls and tariffs, energy exports as well as oil and gas exploration and drilling, and offshore renewable energy in certain northern and offshore areas of Canada.

The CER is guided by a Strategic Plan that includes a Mission, Vision and four interconnected Strategic Priorities: Trust and Confidence, Reconciliation, Competitiveness and Data and Digital Innovation. In 2023-24, we launched a National Engagement Plan, advanced our Diversity and Belonging Roadmap, and carried out an internal culture assessment. We co–developed a measure in the Government of Canada’s Action Plan to achieve the objectives of the United Nations Declaration on the Rights of Indigenous Peoples. We are engaging directly with industry and piloting new ways to improve the predictability and efficiency of regulatory processes. Digital solutions and data-driven insights are now integral to how we deliver CER programs.

The CER enforces some of the strictest safety and environmental standards in the world. In 2023-24, we completed 104 inspections, 20 emergency response exercises and 6 Management System Audits, among other activities. Much of this work was completed alongside Indigenous Monitors. Last year, we launched a new cyber security compliance program and we also issued an Information Advisory regarding emergency preparedness and response at liquid storage facilities. As part of our prevention work, we developed Human and Organizational Performance guidance and tools for use by industry.

Over the last year, there has been considerable attention on the Trans Mountain Expansion Project. In 2023-24, the CER held the company accountable for fulfilling project conditions and for meeting its regulatory obligations and commitments. CER staff completed 51 compliance verification activities on the project. Trans Mountain reported five serious injuries, a 69 percent reduction from the previous year. The CER issued five Inspection Officer Orders to the company.

Last year, the Commission of the CER reviewed 48 infrastructure applications, including one large infrastructure application and 11 small infrastructure applications - all within service standards and legislated time limits. The Commission considered Trans Mountain applications for a route deviation and a change in the size and thickness of a segment of pipeline. The Commission also ruled on several toll settlement applications and reviewed 38 applications for exploration and production-related activities in the Northwest Territories.

The CER consults with Indigenous communities early and throughout our review process. We completed Crown consultation activities on the NorthRiver Midstream NEBC Connector Project to support a Governor in Council (GIC) decision within the established 90-day time limit. This marked the first time since 2015 that a major pipeline project with supplemental Crown consultation was approved with no extensions to the 90-day GIC time limit.

In June 2023, the CER released Canada’s Energy Future 2023: Energy Supply and Demand Projections to 2050. The report focuses on the challenge of achieving net-zero greenhouse gas emissions by 2050 and was widely shared around the world.

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Message from the Chairperson

George Vegh – Chairperson, Board of Directors of the Canada Energy Regulator

As the Chairperson of the Canada Energy Regulator (CER) Board of Directors, I am pleased to share the CER’s Annual Report for 2023-24. The Board is responsible for the governance of the CER, including providing strategic direction and advice to the CER. This responsibility includes the privilege of presenting the Annual Report of the organization.

The CER, Canada’s federal energy regulator, plays a critical role in keeping energy moving safely across the country and sharing important energy information in the public interest. This report provides an overview of the CER’s activities and achievements from the past year, which marks the final year of the CER’s inaugural, three-year Strategic Plan.

Over the past year, the CER has continued to effectively deliver on its mandate and made significant progress towards delivering on its strategic priorities. This includes, for example, the CER releasing its flagship Energy Futures Report, Canada’s Energy Future 2023: Energy Supply and Demand Projections to 2050 and the Board and the Indigenous Advisory Committee (IAC) continuing to work together towards an agenda of change to advance Reconciliation.

The achievements of the organization reflect the commitment, support, and technical excellence of the CER’s staff, who are recognized in Canada and worldwide as experts in their fields. They bring their very best to the CER every day, in service to Canadians. The Board offers its sincere thanks to all the CER’s staff for their dedication.

While work continued over the past year to complete the final deliverables identified in the plan, the Board turned its attention to developing and approving the 2024–2027 Strategic Plan. This new plan benefited from advice of the IAC and thoughtful input from staff, the Commission of the CER, as well as Natural Resources Canada leadership. I am proud of the work that has gone into the 2024-2027 Strategic Plan and look forward to the implementation of our four Strategic Priorities: Trust and Confidence, Reconciliation and Implementation of the United Nations Declaration, Competitiveness and Regulatory Excellence and Preparing for the Energy Future. I am confident this is the right plan to help focus on the key actions and impacts required to meet the CER’s regulatory mandate.

In addition, I would like to acknowledge the contributions of Cassie Doyle. Cassie served as the founding Chairperson of the Board of Directors until 2023 and has stayed on as a Director to support the strong continuity of governance. I am grateful for Cassie’s leadership, strategic advice and steady hand as the organization transitioned to become the CER.

On behalf of the Board of Directors, I respectfully submit the CER’s 2023–24 Annual Report to the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources.

Original signed by

George Vegh
Chairperson
Board of Directors of the Canada Energy Regulator

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Message from the Chief Executive Officer

Tracy Sletto - Chief Executive Officer, Canada Energy Regulator

As CEO of the Canada Energy Regulator, I am very proud of this organization and what we have accomplished over the past year. We are a safety and an economic regulator. Safety and environmental protection are at the core of what we do, and we have some of the highest safety standards in the world. We also have an important economic regulatory role with respect to energy tolls, tariffs, exports, as well as an energy information mandate to provide data and analysis that informs decision-making. This year, we will celebrate the five year anniversary of becoming the CER, a modern regulator focused on preventing harm – in all its forms – while enabling the safe and efficient transmission of energy across the country. Our fifth anniversary offers us a chance to both take stock of where we’ve been and look forward to what’s ahead.

To meet the needs of Canadians, a regulator must evolve and change. At the CER we are committed to working differently than we have in the past. As part of the CER’s first strategic plan, we focused on four Strategic Priorities: Trust and Confidence; Reconciliation; Competitiveness; and Data and Digital Innovation. As we look ahead to the next three years, we will continue to prioritize activities that build Trust and Confidence; advance Reconciliation and Implement the United Nations Declaration on the Rights of Indigenous Peoples (UN Declaration); demonstrate Regulatory Excellence and Competitiveness; and support the Energy Future.

We understand that effective and efficient regulatory and permitting processes are critical in supporting Canada’s competitiveness and the energy transition – and we’re doing our part. For example, last year, we cut the timelines for our initial reviews of small infrastructure applications from an average of 80 days to 30 days. We were also pleased to complete Crown consultation activities on the NorthRiver Midstream NEBC Connector Project to support a Governor in Council (GIC) decision within the established 90-day time limit. This marked the first time since 2015 that a major pipeline project with supplemental Crown consultation was approved with no extensions to the 90-day GIC time limit. This was due, in large part, to the approach taken on engagement and consultation to ensure issues were identified and addressed early and throughout the Commission of the CER’s robust hearing process - including new and innovative steps.

We know that the energy system is changing, and we will ensure we are ready to regulate in that changing environment, with the technical expertise, technology, workforce, and partnerships we need to position us as a modern regulator and leader. Timely and efficient regulatory processes and decisions are based on having an effective regulatory framework, and wise practices in engagement and consultation – notably recognizing the rights of First Nations, Inuit and Métis communities and our deep commitment to implement the United Nations Declaration on the Rights of Indigenous Peoples.

We are proud of our commitment to United Nations Declaration on the Rights of Indigenous Peoples Act (UN Declaration Act) Action Plan Measure 34, which was announced last June, and our continued partnerships with, and support for, the Trans Mountain Expansion and Line 3 Indigenous Advisory Monitoring Committees (IAMCs). We recently issued a report on our work to co-develop a collaborative mechanism aimed at increasing Indigenous involvement in the CER’s compliance and oversight activities for the NOVA Gas Transmission Ltd. (NGTL) System. There is more intensive engagement work to be done, and these activities are all important steps forward on the CER’s journey of Reconciliation and building partnerships with First Nations, Inuit, and Métis communities, governments, and organizations across Canada.

The CER’s commitment to doing things differently extends to all aspects of its work, including our role in providing timely and relevant energy information. In 2023-24, we produced Canada’s Energy Future 2023: Energy Supply and Demand Projections to 2050 which marked the first time the CER fully modeled net-zero GHG emissions by 2050. The report received extensive public attention and in December, our Chief Economist and I joined the Canadian delegation at COP28 in Dubai to be part of the global conversation about energy transition.

All of our work is done by people, and our focus on continuing to build and deliver a positive organizational culture and high-performing organization is driven by our commitment to ensuring we have an inclusive and supportive workplace. In 2023–24, we released our progress report on the actions identified in the Clerk’s Call to Action on Anti-Racism, Equity, and Inclusion in the Federal Public Service. We have made significant strides forward, while acknowledging there is still more work to do. We also introduced new polices and guidelines to fully implement a long-term hybrid approach at the CER – as we, along with all other places of work, develop new ways of working with purposeful flexibility.

It has been a year of change at the CER. In addition to my appointment as CEO on 15 December 2023, last year we welcomed a new Chair of our Board of Directors, new members to our Board of Directors and Indigenous Advisory Committee, and several new senior executives – all with new and complementary talents, experiences, and perspectives. Proud to be part of this outstanding team, I look to the year ahead with optimism, determination, and a sense of confidence that we have what we need to be the regulator we want to be.

Lastly, I would like to acknowledge Gitane De Silva, who left the CER in 2023. Gitane was the CER’s first permanent CEO, appointed amid the global COVID-19 pandemic, who guided the organization with a steady hand for three years. I would also like to thank Cassie Doyle, the first chair of the CER’s Board of Directors, who stepped down from that role last summer. On behalf of the CER, I would like to express our deep appreciation for their commitment to public service. And of course, none of our accomplishments would be possible without the expertise, creativity, and commitment of the CER’s 550 staff nor the partnerships and advice we receive from those with whom we work every day.

With my thanks and appreciation,

Original signed by:

Tracy Sletto
Chief Executive Officer
Canada Energy Regulator

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Message from the Indigenous Advisory Committee Chairperson

Tribal Chief Tyrone McNeil - Chairperson, Indigenous Advisory Committee

When the Canadian Energy Regulator Act came into force in 2019, the Regulator was required to establish an advisory committee for the purpose of enhancing the involvement of Indigenous Peoples and Indigenous organizations in the CER’s regulatory oversight. Since its inception, the Indigenous Advisory Committee has provided strategic advice to the CER on building new relationships with First Nations, Inuit, and Métis communities and meaningfully advancing Reconciliation.

Working together, the IAC, the CER’s Board of Directors and its senior executive team have identified and embraced structural and systemic changes that reflect a deepened understanding of First Nation, Inuit, and Métis rights as they pertain to the mandate of the CER.

Following the initial formation of the IAC, we began with a very ambitious and robust three-year Work Plan. During 2023, we wrapped up the third year of our Work Plan and began shifting our attention towards its next iteration. In reflecting back on the original Work Plan, we decided to take a higher-level strategic approach. This will help us to leverage and utilize the different strengths that each Committee member possesses. In our fourth year as a committee, we see the tangible impacts of our advice on how the CER does its work.

The IAC’s work is grounded by meaningful relationships. We are particularly proud of our contributions to help shape and guide the development of Action Plan Measure (APM) 34. APM 34 is one of 181 specific measures included in the action plan that will guide the Government of Canada’s implementation of the United Nations Declaration on the Rights of Indigenous Peoples Act. The goal of this measure is to enhance the involvement of Indigenous Peoples in the CER’s regulatory work. Developed in collaboration with Natural Resources Canada and the Trans Mountain Expansion – Indigenous Advisory and Monitoring Committee (TMX-IAMC), the IAC provided crucial advice for both the creation of this measure and continues to help shape the principles that will guide its implementation.

As the CER continues to develop and enhance its approach to Crown consultation for energy projects, the IAC has focused its advice on the importance of co-developing solutions and incorporating Indigenous worldviews. Underlining this work is a commitment to developing meaningful and ongoing relationships with Indigenous Peoples. Supported by the expert guidance and advice of the IAC, it is these relationships that will drive continued transformational change at the CER.

Throughout 2023, the IAC has been closely involved in the CER’s strategic planning process for the organization’s next three-year plan. On advice from the IAC, the CER considered how Indigenous nations, peoples and communities are recognized, respected, and included in the work to advance the CER’s Strategic Priorities. The Committee is pleased to see elements of cultural intelligence, including a recognition of the importance of taking a distinctions-based approach for considering First Nations, Inuit, and Métis perspectives, woven throughout the Strategic Plan.

The CER has listened and taken to heart the advice of the IAC to systemically increase the cultural intelligence of the regulator across all elements and levels of its structure. Change takes time, and it is not always easy. We know there is more to do – but we are moving ahead in a good way, together.

Looking back, I am proud of what we have accomplished over the past year and since the IAC was created. I look forward to continuing this work of enhancing the involvement of Indigenous Peoples in the CER’s regulatory processes. We have a continued opportunity to make a real and positive difference, and we intend to pursue it.

Original signed by

Tribal Chief Tyrone McNeil
Chairperson
Indigenous Advisory Committee


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