DISCUSSION PAPER
MANDATE AND REGULATORY FRAMEWORK
TOPIC: The mandate of the National Energy Board (NEB), and the regulatory framework within which the
Board operates.
CONTEXT: The NEB was established in 1959 as Canada’s national energy regulator. Its core responsibilities
are energy adjudication,1 safety and environmental oversight, energy information and engagement. The
NEB reports to Parliament through the Minister of Natural Resources. The NEB has a specific mandate as
set out in the National Energy Board Act (NEB Act), as well as responsibilities and authorities under other
federal legislation.
Mandate
The main responsibilities of the NEB are established in the NEB Act and include the regulation of:
 The construction, operation and abandonment of pipelines that cross international borders or
provincial/territorial boundaries, as well as setting of the associated tolls and tariffs;
 The construction, operation and abandonment of international and designated interprovincial
power lines; and
 Imports of natural gas and exports of crude oil, natural gas liquids, natural gas, refined petroleum
products and electricity.
The NEB oversees approximately 73,000 kilometres of international or interprovincial pipelines and
approximately 1,400 kilometres of international power lines.
The NEB also monitors aspects of energy supply, demand, production, development and trade, and
publishes assessments to inform Canadians on trends, events and issues that may affect Canadian energy
markets. Through its Energy Information Program, the Board produces independent and fact-based energy
information for Canadians.2
Additionally, in specified areas, the NEB has regulatory responsibilities for oil and gas exploration and
production activities under the NEB Act, Canada Oil and Gas Operations Act, the Canada Petroleum
Resources Act, and the Northwest Territories Oil and Gas Operations Act and Petroleum Resources Act,3
including offshore areas outside Newfoundland and Nova Scotia. However, no federal regime has yet been
established for other emerging offshore energy sources such as offshore renewables or other emerging
forms of renewable energy.
The NEB conducts a science-based environmental assessment during its review of applications for projects
under its jurisdiction. For certain projects, the NEB also conducts environmental assessments as required by
federal legislation, such as the Canadian Environmental Assessment Act, 2012 (CEAA 2012), the Mackenzie
Valley Resource Management Act, and the Inuvialuit Final Agreement or the Nunavut Land Claims
Agreement.4
1
In its adjudicative role, the NEB must decide or recommend if a project is in the Canadian public interest. See the
discussion paper on Determining the Canadian Public Interest for further details.
2
See the discussion paper on Energy Information, Reports, and Advice for further details.
3
Matters related to legislation other than the NEB Act are not explicitly within the scope of the NEB Modernization
review. However, the Panel may take Northern approaches and frameworks into consideration in developing its
report and recommendations on the structure, role, and mandate of the NEB pursuant to the NEB Act.
4
Federal environmental assessment processes, including CEAA 2012, are the subject of a different review process
being conducted by an Expert Panel appointed by the Minister of Environment and Climate Change. Information
about this review can be found on that Expert Panel’s website: http://eareview-examenee.ca/.
Discussion Paper
Regulatory Framework
The NEB’s regulatory mandate extends over the lifecycle of a project – from the planning and application
assessment and authorization,5 through construction and operations,6 and finally abandonment.
The NEB fulfills its mandate through its regulatory framework, by setting and enforcing regulatory
requirements and expectations for its regulated companies. Requirements within the NEB’s regulatory
framework include legislation (e.g. NEB Act), regulations (e.g. NEB Onshore Pipeline Regulations) and other
binding regulatory tools such as NEB Orders and terms and conditions to approvals. The NEB also relies on
non-binding regulatory tools such as guidance documents to provide clarity to regulated companies on
means of achieving compliance (e.g. NEB Filing Manual, Guidance Notes).
DISCUSSION QUESTIONS:
1. What are your views on the NEB’s existing mandate?
2. Are there any areas over which the NEB’s mandate should be changed?
3. Are there emerging areas for which the NEB’s mandate should be expanded? If so, what are
they?
5
See the discussion paper on The Hearing Process, for further details on the application phase.
See the discussion papers on: (i) Safety and Environmental Protection, and (ii) Emergency Prevention Preparedness
and Response: Tools and Requirements for further details on the operations phase.
6
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