The National Energy Board (NEB) was created in 1959 under Prime Minister Diefenbaker, and was tasked with making recommendations about “the policies which will best serve the national interest in relation to the export of energy and sources of energy from Canada” and “aspects of energy policy coming within the jurisdiction of Parliament as it may be desirable to entrust to such a Board.”
Today, the NEB regulates:
- The construction, operation, and abandonment of pipelines that cross international borders or provincial boundaries, as well as the associated pipeline tolls and tariffs;
- The construction and operation of international power lines and designated inter-provincial power lines;
- Imports of natural gas and exports of crude oil, natural gas liquids, natural gas, refined petroleum products and electricity; and
- Oil and gas exploration not otherwise regulated by provinces.
In 2012, omnibus bills C-38 and C-45 amended the NEB Act and increased the mandate of the NEB to include environmental assessments for certain projects. The NEB Act was also amended to include time limits on proceedings, as well as limits on public participation.
In the past several years, the role of energy regulators has expanded dramatically. Regulators must now consider Indigenous consultation and accommodation (although the extent of that consultation is subject to litigation before the SCC), and public input and interest has also increased dramatically as issues under the NEB’s purview are increasingly part of the national dialogue (i.e. pipelines).
The NEB has struggled to fulfill this expanded mandate, which is much broader than originally envisioned in the 1950s. Further, allegations of conflict of interest and close ties to the industry it is meant to regulate have caused many to describe it as an ‘industry captured regulator.’
This broad mistrust of the NEB caused the Prime Minister to issue the Minister of Natural Resources a mandate letter that includes a commitment to “modernize the National Energy Board to ensure that its composition reflects regional views and has sufficient expertise in fields such as environmental science, community development, and Indigenous traditional knowledge.”
Recently, the NEB has come under intense public scrutiny – notably for their controversial review of Kinder Morgan’s Trans Mountain Expansion (TMEX), and the recent recusal of the panel and CEO Peter Watson from the Energy East pipeline review, following the revelations of secret meetings with former premier Jean Charest, who was working for Energy East proponent Trans Canada Pipelines at the time.
As many commenters have stated, the NEB is broken and is in urgent need of an overhaul. The NEB modernization is an opportunity to fix it.
This review is looking at issues that are specific to the NEB and fall outside the separate review of Canada's federal environmental assessment processes. It is an opportunity to strengthen the regulatory process and ensure that Canada continues to have a modern, efficient and effective regulator. Specifically, the review is focused on:
- Governance and structure
- Mandate and future opportunities
- Decision-making on major projects
- Compliance, enforcement, and ongoing monitoring
- Engagement with Indigenous peoples
- Public participation
- June 20, 2016 – The draft Terms of Reference for the NEB Expert Panel were made available for public review and comment for 30 days
- November 8, 2016 – The federal government announced the Expert Panel and revised Terms of Reference for the NEB review
- January 25, 2016 – NEB Modernization Engagement sessions begin (see below for full list of events and locations).
- March 31, 2017 – Deadline for submitting comments via the Expert Panel's online portal
- May 15, 2017 – NEB review provides its report and recommendations to the Minister of Natural Resources.
Ways to participate
In early 2017, the National Energy Board Modernization Expert Panel invited Canadians to participate in engagement sessions held across the country. In addition, the public was invited to provide written and online comments on the Discussion Papers that cover key themes related to NEB Modernization.
For more information about the Panel’s consultation and what they heard, visit the NEB Modernization website.
- What is the Charest Affair, and why should I care?
(National Observer, August 29, 2016)
An analysis of the controversy surrounding the NEB review of the Energy East pipeline proposal.
- National Energy Board is a Captured Regulator in Urgent Need of Overhaul
(Desmog Canada, September 9, 2016)
Marc Eliesen, a senior energy executive who once served as CEO of BC Hydro, explains why he quit his role as an intervenor in the federal review of Kinder Morgan's Trans Mountain pipeline and oil tanker expansion project.
- Blogs on the NEB: