National Energy Board Act

 

The National Energy Board Act is the primary federal legislation governing energy activities in Canada.  The Act regulates the following activities:

 

·         The construction and operation of pipelines and electrical transmission lines that cross provincial boundaries;

·         Imports and exports (trade) in oil, gas and electricity;

·         Traffic, tolls and tariffs for energy transmission;

·         The implementation of free trade agreements with other nations, as those agreements relate to energy trading; and

·         Inter-provincial trading in oil and gas

 

Pipelines, powerlines and other power projects located in B.C. that do not cross the boundaries of the province are regulated by the provincial government.

 

The National Energy Board, an independent agency and court of record established under Part I of the Act, is charged with the responsibility to review and decide the various applications for licenses, approvals and certificates required under the Act, and to make determinations on tariffs and other energy-related matters.

 

Pipelines, and some electrical transmission lines, may not be operated unless a Certificate of Public Convenience and Necessity has been issued by the Board.  The Board is required to hold a public hearing to inquire into the matter; after which the Board makes a determination on whether to grant the certificate, by considering whether it is satisfied that the operation “is and will be required by the present and future public convenience and necessity.”

 

Public hearings are also required for determinations on whether to issue a licence for the exportation of gas or electricity, or for the importation of gas; or whether to grant leave to abandon the operation of a pipeline.  The Board may also hold a hearing into any other matter if it considers it advisable to do so.  The NEB Rules of Practice and Procedure, 1995 set out the rules of practice for the conduct of the hearings.

 

Regulations made under the Act require the proponents of a pipeline, powerline or other project requiring NEB approval to submit an environmental impact statement for consideration along with their application.  In addition, the public can draw environmental and other concerns to the Board’s attention through the hearing process. 

 

The Board is empowered to set terms and conditions on CPCNs and licences that respond to environmental and other concerns.  Again, the public may ask the Board to set strong terms that address watershed protection issues. 

 

Because of their significant scope and potential impact, energy-related projects frequently trigger not only an NEB hearing but also a hearing under the Canadian Environmental Assessment Act.  In those cases, the NEB and the Canadian Environmental Assessment Agency may conduct a joint panel hearing.

 

A decision of the Board can be appealed to the Federal Court of Appeal within 30 days of the decision and with the permission of that court.

 

Related pages of the Guide:

 

·         Oil and gas extraction

 

·         Linear Development

 

·         Canadian Environmental Assessment Act

 

Links for more information:

 

·         Link to text of National Energy Board Act and Regulations.

 

·         National Energy Board website.  Especially the pdf-formatted publication “How to participate in a Public Hearing.”

 

·         Other Acts, Regulations and Agreements related to the NEB.

 

·         NEB Rules of Practice and Procedure, 1995.