The Pipeline Safety Act received Royal Assent and will come take effect in 12 months. The goal of the law is to improve Canada’s pipeline safety system by:
- Enshrining the “polluter pays” principle
- Ensuring companies remain responsible for abandoned pipelines
- Requiring a portion of each company’s financial resources to be readily accessible to ensure rapid response to any incident
- Providing NEB authority to take control of incident response and cleanup in exceptional circumstances, if a company is unable or unwilling to do so
- Implementing “no fault” or absolute liability for all companies operating pipelines, set at $1 billion for companies operating major oil pipelines
- Giving governments the ability to pursue pipeline operators for the costs of environmental damages.