2024–25 Departmental Results Report – Supplementary Information Tables – Regulatory and Permitting Efficiency for Clean Growth Projects

The Cabinet Directive on Regulatory and Permitting Efficiency for Clean Growth Projects focuses on the federal efforts needed to accelerate regulatory efficiency for clean growth projects. It is intended to help get clean growth projects built faster by accelerating decision-making related to these projects.

Section 1. Overview of the Canada Energy Regulator’s Role in Supporting Regulatory and Permitting Efficiency

Making decisions or recommendations to the Governor in Council on applications, which include impact assessments, using processes that are fair, transparent, timely and accessible. These applications pertain to pipelines and related facilities, international power lines, offshore renewable energy, tolls and tariffs, compensation disputes resolution, energy exports and imports, and oil and gas exploration and drilling in certain northern and offshore areas of Canada.

Section 2. Results for Thematic Areas of the Cabinet Directive

The Canadian Energy Regulator Act (CER Act) establishes the Commission of the Canada Energy Regulator and sets its mandate to exercise adjudicative functions in an independent manner. The Commission decides these matters in a predictable and timely manner to provide certainty to investors and stakeholders, drive innovation and support sound projects that create jobs for, and provide energy to, Canadians.

Theme 1: Strengthening service standards

Results Achieved:

During 2024-25, the Commission released 606 decisions on applications related to infrastructure, tolls and tariffs, export licences and orders, frontier exploration and production, leave to open orders and other matters that spanned the energy infrastructure lifecycle.

The Commission processed all applications within the CER Act legislated time limits, meeting the CER’s Departmental Results Framework target of 100 per cent for adjudication decisions and recommendations made within legislated time limits and service standards. Since 2019, the CER has met its legislated time limits for infrastructure project reviews 99 per cent of the time, with no missed time limits since the 2020-21 reporting period. The CER has also met service standards 98 per cent of the time since the 2020-21 fiscal year.

The Commission strives to exceed time limits by setting and meeting service standards that define shorter time limits for certain types of applications. Last year, the Commission met these service standards for routine applications under section 214 of the CER Act by releasing decisions for these types of applications in 40, 90 or 120 days instead of the 130, 210 or 300 days mandated in time limits.

In 2024-25, the Commission reduced the time to decision for CER Act section 214 applications through such initiatives as refining the notification process and reducing the amount of time required to determine the completeness of applications. This initiative substantially reduced the number of days from application receipt to completeness, from 78 days in 2022-23 to 35 days in 2023-24, and a further reduction to 30 days during this reporting period. Consequently, the average number of days for a Commission decision was reduced to 111 days in 2024-25, down from 128 days in 2023-24.

This past fiscal year, the CER received two applications for pipeline certificates under section 183 of the CER Act (large pipeline projects). While no recommendation has been issued for these projects, the Commission routinely meets the 450-day legislated time limit and CER service standards for these types of projects. Since the CER Act came into force, the Commission has averaged 416 days to review large pipeline projects.

Since the CER Act came into force, no Commission decisions have been overturned by a higher court, illustrating the strength and robustness of Commission assessments and decisions. This provides certainty to investors and stakeholders, drives innovation and enables the carrying out of sound projects that create jobs for Canadians.

The CER is exploring further streamlining of its adjudication process for projects of low or negligible risk. In 2024-25, the CER undertook engagement with regulated industry, Indigenous peoples, and interested stakeholders around a Rapid Review Process aimed at creating criteria, processes, and filing guidance that capture activities that may be of negligible-risk or low-risk, with the aim of issuing faster decisions based on risk.

Departmental Result Indicator Target Date to achieve target Actual Result
Percentage of adjudication decisions and recommendations that are made within legislated time limits and service standards. Exactly 100% March 2025

2022-23: 100%

2023-24: 100%

2024-25: 100%

The CER has Memoranda of Understanding (MOUs) with Environment and Climate Change Canada, Fisheries and Oceans Canada (DFO), Natural Resources Canada and Transport Canada. The CER also has MOUs with other federal, territorial and provincial boards and agencies for specific purposes. The MOU between the CER and DFO is specifically about authorizations under the Fisheries Act. The CER is responsible for reviewing any work, undertaking, or activity within the CER’s jurisdiction against the Fisheries Act and Species at Risk Act, and refer anything to DFO that may require authorization or permitting. Last fiscal, the CER reviewed 89 works, undertakings, or activities, referring one to DFO for additional review and permitting. The CER encourages federal authorities to rely on the engagement records provided in the CER’s regulatory processes to enhance permitting efficiency and timeliness.

Theme 2: Providing timely guidance to proponents

Results Achieved :

The Commission has a broad mandate under the CER Act and may consider matters that appear to the Commission to be directly related to the pipeline and relevant to its decisions or recommendations. The Commission is responsible for assessing, among other things, the environmental and socio-economic effects of energy projects within its jurisdiction. The CER Act outlines the factors that the Commission must consider when making a decision or recommendation for certain projects, including pipeline and powerline projects. In particular, a factor that the Commission must take into account is the consideration of environmental obligations and the Government of Canada’s climate change commitments.

The CER’s Filing Manual outlines the Commission’s expectations on what information should be included in an application for a potential project and is based on the factors identified in the CER Act. The CER’s Filing Manual includes the biophysical and socio-economic elements that should be considered by a proponent in developing an application. In April 2023, after an encompassing engagement period, the CER released its Greenhouse Gas Emissions and Climate Change Supplemental Guidance, to provide guidance to proponents on how this new factor should be considered in project applications, and to support transparency, predictability, and efficiency in its regulatory processes.

In 2024-25, the CER continued to update its filing requirements and guidance in support of a transparent and efficient process for applicants. In conjunction with the CER’s Onshore Pipeline Regulations Review, an extensive public engagement period was launched to review the Environmental and Socio-economic Assessment (Guide A.2) and Lands (Guide A.4) sections of the Filing Manual. Updates will be informed by written comments received on 13 topic-specific discussion papers, information sessions, and workshops with industry, Indigenous communities and other interested parties. Feedback is being analyzed, and updated draft sections are expected to be available in late 2025. One area of interest for the CER’s Filing Manual review is climate change resiliency.

Theme 3: Coordinating consultation with Indigenous Peoples

Results Achieved:

The CER Act designates the CER as an agent of the Crown. The Government of Canada has also tasked the CER to act as Crown Consultation Coordinator for projects in its jurisdiction.

Crown consultation occurs primarily through the Commission’s assessment process. The Commission has the technical expertise and mandate to consider and address project impacts, including those affecting the rights and interests of Indigenous Peoples. For this reason, Indigenous Peoples are encouraged to participate directly in the Commission’s process to identify issues, concerns, or potential mitigation measures with respect to potential impacts of a proposed project. The Commission provides opportunities for Indigenous Peoples to fully participate in its regulatory hearing processes and share their views about a proposed project. This includes sharing Indigenous knowledge orally, and if requested, confidentially to inform the Commission’s deliberations on a project. The CER also offers Process Advisors to support Indigenous Peoples’ participation in a hearing. Process Advisors host informational workshops and sessions to help participants prepare for a CER process. They are available to support throughout the hearing process. The CER also has an Elder’s Room available to participants during a hearing. This room can be used to smudge, offer prayers, or as a place to rest before or after a participant’s appearance. The CER acknowledges and supports the diverse cultural protocols of Indigenous Peoples and remains committed to providing a respectful environment throughout its hearing process.

For certain applications, typically those that require a decision by the Governor in Council, the CER may conduct additional Crown consultation activities with potentially impacted Indigenous communities to supplement and complement the Commission’s process. These activities are carried out by the CER in its role as Crown Consultation Coordinator (CCC). The CCC also coordinates other federal and provincial government departments through working groups to support a whole of government response to concerns and potential impacts identified by Indigenous communities, as appropriate. To-date the CER has conducted these activities only for proposed project applications filed with the CER under section 183 of the CER Act, such as, starting in 2023-2024 and ongoing through 2024-2025, the Pouce Coupé Pipe Line Ltd. Taylor to Gordondale Pipeline Project (T2G Project) in Alberta and British Columbia and the Westcoast Energy Inc. Sunrise Expansion Program (Sunrise Project) in British Columbia. The CER’s Early Engagement Guide provides proponents with the CER’s expectations, including filing requirements, guidance and expectations for engagement with Indigenous communities, during the early engagement phase for projects within the CER’s jurisdiction. The CCC also meets regularly with proponents starting in Early Engagement and throughout the assessment of their applications to ensure open dialogue and to work to understand, consider and where appropriate, work toward addressing concerns of Indigenous communities.

The CCC, works to determine how any impacts or concerns raised by Indigenous Peoples that may involve other areas of federal or provincial responsibility may be addressed. The CCC’s whole-of-government approach includes regular meetings with other federal departments, territories and/or provinces to provide updates on discussions with Indigenous communities, to discuss information on impacts to rights or concerns raised by Indigenous communities and may include joint meetings with Indigenous communities.

Where potential topics or concerns raised are within another department’s mandate or expertise, the CCC seeks input from that department to include in submissions to the Commission and/or the Minister of Energy and Natural Resources to support a Governor in Council decision on projects.

In 2024-2025, the CCC consulted Indigenous Peoples regarding the Sunrise Project and T2G Project. As a result of these consultations, the CCC provided information on the concerns and potential impacts of the Projects identified by Indigenous communities through its submissions on the record. The direct dialogue with Indigenous communities informed suggestions for the Commission’s consideration. As part of the hearings, the Commission provided Indigenous Peoples, for each project, an opportunity to comment on draft potential conditions and organized a workshop to review those conditions with participants. The Commission also established a comment process on potential process steps, including on completeness for both projects. At the end of 2024-25, both projects are still being assessed by the Commission.

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