Thank you very much.
Good afternoon, committee members. Thank you for inviting the Canada Energy Regulator to appear as part of your study on the main estimates.
My name is Tracy Sletto. I'm the CEO of the CER. I am joined today by Jason and Chris, as mentioned. In my opening remarks, I will provide a brief overview of the CER’s mandate and the 2026-27 main estimates, including how our funding is allocated and what it supports in practice.
I would also like to acknowledge that we are meeting on the unceded, ancestral and traditional territory of the Algonquin Anishinabe nation, who have lived on and cared for the land now known as Ottawa since time immemorial.
Before I begin my discussion of the estimates, I will give a brief overview of who we are.
The CER regulates energy infrastructure in a way that prevents harm and ensures the safe, reliable, competitive and environmentally sustainable delivery of energy across Canada. This applies to any pipeline that crosses a provincial or international boundary, and powerlines that cross an international border.
In addition to being a safety regulator, our mandate also includes a key economic role in financial regulation through the oversight of pipeline tolls and tariffs.
The CER regulates exports of energy products and oil and gas exploration and drilling in certain northern and offshore areas of Canada. The CER also has a mandate to provide information on energy matters.
Finally, we provide data and analysis that inform decision-making and dialogue on energy in Canada. All of our work is undertaken in a manner that respects the rights and interests of first nations, Inuit and Métis. In everything we do, safety and environmental oversight are always at the forefront.
The CER's operations are funded from parliamentary appropriations, and the Government of Canada recovers approximately 95% of the CER's cost from regulated industry.
I'd now like to give context to the CER's main estimates for 2026-27.
The CER's planned spending is $119.4 million, allocated across four core responsibilities. Safety and environment oversight accounts for $30.7 million, which supports the setting and enforcing of our expectations for regulated companies across the full life cycle of energy facilities. Energy adjudication receives $29.6 million, supporting the CER's commission decision-making on applications, hearings and regulatory processes. Our engagement core responsibility is funded at $11 million, enabling engagement and consultation with indigenous peoples and stakeholders nationally and regionally through open and responsive dialogue. Energy information receives $5.3 million to support the collecting, monitoring, analyzing and publishing of energy information for Canadians. Lastly, internal services enables the delivery of the four core responsibilities, with $42.9 million dedicated to management oversight, communications, legal, financial and human resource management, and IT functions.
Within these totals, transfer payments represent $10.6 million of the CER's budget. These funds are used specifically to support indigenous peoples and stakeholder participation in CER activities, including adjudication, engagement, safety and environment oversight.
As indicated in our 2026-27 departmental plan, our core responsibilities are guided by four strategic priorities, which are to foster trust and confidence by effectively delivering on our mandate, to enhance Canada’s global competitiveness through leadership in regulatory innovation and best practices, to advance reconciliation and implement the United Nations Declaration on the Rights of Indigenous Peoples and to prepare for the energy future by offering energy expertise.
Throughout 2026-27, we will continue to modernize our regulatory framework and streamline our processes. This includes initiatives identified in the CER’s “Red Tape Review Report”, such as launching a new digital portal, significantly reducing decision timelines for routine pipeline applications, removing outdated and unnecessary reporting requirements, and updating our onshore pipeline regulations.
In closing, I would like to thank you for giving us the opportunity to speak with you today. I very much look forward to your questions.