Critical Cyber Systems Protection Act (S.C. 2026, c. 9, s. 11)

Marginal note:Penalty

123 The penalty for a violation is to be determined by taking into account

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  (a) the designated operator’s or other person’s history of compliance or non-compliance with the provisions of this Act or of the regulations;

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  (b) the nature and scope of the violation;

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  (c) whether the designated operator or other person made reasonable efforts to mitigate or reverse the effects of the violation;

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  (d) whether the designated operator or other person derived any competitive or economic benefit from the violation;

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  (e) any other factor prescribed by the regulations; and

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  (f) any other factors that the person designated under section 121 who issued the notice of violation considers relevant.

Marginal note:Payment

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  124 (1) If the designated operator or other person named in the notice of violation pays the penalty set out in the notice, they are deemed to have committed the violation and the proceedings commenced in respect of the violation are ended.

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  Marginal note:Alternatives

  (2) Instead of paying the penalty set out in the notice, the designated operator or other person named in the notice may, in accordance with the notice,

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    (a) make representations to the Commission in respect of the alleged violation or of the penalty; or

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    (b) if the person designated under section 121 offers a compliance agreement, enter into the compliance agreement with the person so designated to ensure the designated operator’s or other person’s compliance with the provision to which the violation relates.

Marginal note:Powers of Commission

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  125 (1) The Commission may designate persons or classes of persons to consider the representations made under paragraph 124(2)(a).

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  Marginal note:Representation to Commission

  (2) The Commission or the person designated under subsection (1) must decide, on a balance of probabilities, after considering any representations made under paragraph 124(2)(a), whether the designated operator or other person committed the violation and, if it so decides, it may, subject to the regulations made under paragraph 135(1)(h), impose the penalty set out in the notice, a lesser penalty or no penalty.

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  Marginal note:Decision

  (3) The Commission or the person designated under subsection (1) must render a decision in writing, including reasons for it and must serve a copy of the decision on the designated operator or other person.

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  Marginal note:Responsibility to pay penalty

  (4) If the Commission or the person designated under subsection (1) decides that the designated operator or other person committed the violation, the designated operator or other person is liable to the penalty as set out in the decision.

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  Marginal note:Effect of payment

  (5) If the designated operator or other person pays the penalty set out in the decision, the Commission or the person designated under subsection (1) must accept the amount as complete satisfaction of the penalty in respect of the violation and the proceedings commenced in respect of the violation are ended.

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  Marginal note:Violation not committed — effect

  (6) If the Commission or the person designated under subsection (1) decides that the designated operator or other person did not commit the violation, the proceedings commenced in respect of it are ended.

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  Marginal note:Federal Court

  (7) Despite section 28 of the Federal Courts Act, the Federal Court has exclusive original jurisdiction to hear and determine an application for judicial review of a decision made under this section by the Commission or the person designated under subsection (1).

Marginal note:Entering into compliance agreements

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  126 (1) If the person designated under section 121 offers to enter into a compliance agreement with the designated operator or other person, the agreement is subject to any terms that the person so designated considers appropriate, including the reduction, in whole or in part, of the penalty for the violation.

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  Marginal note:Representations

  (2) If a compliance agreement is entered into, the designated operator or other person cannot make any representations under paragraph 124(2)(a).

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  Marginal note:Deeming

  (3) A designated operator or other person that enters into a compliance agreement with the person designated under section 121 is deemed to have committed the violation in respect of which the compliance agreement was entered into.

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  Marginal note:Notice of compliance

  (4) If the person designated under section 121 is of the opinion that a designated operator or other person that has entered into a compliance agreement has complied with it, the person so designated must serve a notice to that effect on the designated operator or other person and, on the service of the notice, the proceedings commenced in respect of the violation are ended.

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  Marginal note:Notice of default

  (5) If the person designated under section 121 is of the opinion that a designated operator or other person that has entered into a compliance agreement has not complied with it, the person designated under section 121 must cause the designated operator or other person to be served with a notice of default informing them that

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    (a) they are liable to pay, within the time and in the manner set out in the notice of default, the penalty set out in the notice of violation in respect of which the compliance agreement was entered into, less any amount they paid under the compliance agreement; and

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    (b) the Canadian Energy Regulator may make public the designated operator’s or other person’s name, the nature of the violation, the scope of the non-compliance with the compliance agreement and the penalty payable.

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  Marginal note:Effect of payment

  (6) If a designated operator or other person pays the amount set out in the notice of default within the time and in the manner specified in that notice, the Canadian Energy Regulator must accept the amount as complete satisfaction of the amount owing in respect of the violation and the proceedings commenced in respect of the violation are ended.

Marginal note:Notice of violation — Minister of Transport

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  127 (1) If the Minister of Transport has reasonable grounds to believe that a designated operator or other person has committed a violation, the Minister of Transport may issue a notice of violation to the designated operator or other person. If a notice of violation is issued, the Minister of Transport must cause it to be served on the designated operator or other person.

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  Marginal note:Contents of notice of violation

  (2) The notice of violation must name the designated operator or other person that is alleged to have committed the violation, identify the alleged violation and set out

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    (a) the penalty for the violation that the designated operator or other person is liable to pay;

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    (b) the right of the designated operator or other person, within 30 days after the notice is served or within any longer period that the Minister of Transport specifies, to pay the penalty and the manner for doing so;

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    (c) the right of the designated operator or other person, within 30 days after the notice is served or within any longer period that the Tribunal on application may allow, to file a request to review under paragraph 129(2)(a) with respect to the violation or the proposed penalty, or both; and

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    (d) the fact that, if the designated operator or other person does not pay the penalty or file a request to review with the Tribunal in accordance with the notice, the designated operator or other person will be deemed to have committed the violation and be liable to the penalty set out in the notice.

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  Marginal note:Correction or cancellation of notice of violation

  (3) At any time before the designated operator or other person files a request to review with the Tribunal under paragraph 129(2)(a) or enters into a compliance agreement with the Minister of Transport, the notice of violation may be canceled by the Minister of Transport or an error in it may be corrected.

Marginal note:Penalty

128 The penalty for a violation is to be determined by taking into account

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  (a) the designated operator’s or other person’s history of compliance or non-compliance with the provisions of this Act or of the regulations;

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  (b) the nature and scope of the violation;

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  (c) whether the designated operator or other person made reasonable efforts to mitigate or reverse the effects of the violation;

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  (d) whether the designated operator or other person derived any competitive or economic benefit from the violation;

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  (e) any other factor prescribed by the regulations; and

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  (f) any other factors that the Minister of Transport considers relevant.

Marginal note:Payment

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  129 (1) If the designated operator or other person named in the notice of violation pays the penalty set out in the notice, they are deemed to have committed the violation and the proceedings commenced in respect of the violation are ended.

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  Marginal note:Alternatives

  (2) Instead of paying the penalty set out in the notice, the designated operator or other person named in the notice may, in accordance with the notice,

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    (a) file a request for a review with the Tribunal in respect of the alleged violation or of the penalty; or

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    (b) if the Minister of Transport offers a compliance agreement, enter into the compliance agreement with the Minister of Transport to ensure the designated operator’s or other person’s compliance with the provision to which the violation relates.

Marginal note:Time and place of review

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  130 (1) On receipt of the request referred to in paragraph 129(2)(a), the Tribunal must appoint a time and place for the review and notify the Minister of Transport and the designated operator or other person who filed the request of the time and place in writing.

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  Marginal note:Review procedure

  (2) The member of the Tribunal who is assigned to conduct the review must provide the Minister of Transport and the designated operator or other person that filed the request with an opportunity that is consistent with procedural fairness and natural justice to present evidence and make representations.

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  Marginal note:Burden of proof

  (3) The Minister of Transport has the burden of establishing on a balance of probabilities that the designated operator or other person committed a violation.

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  Marginal note:Designated operator or other person not compelled to testify

  (4) A designated operator or other person that is alleged to have committed a violation is not required to give any evidence or testimony in the matter.

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  Marginal note:Disclosure of confidential information

  (5) For the purpose of a review requested under paragraph 129(2)(a), the Minister of Transport or the designated operator or other person may disclose confidential information to the Tribunal.

Marginal note:Determination by Tribunal member

131 In making a determination at the conclusion of a review, the member of the Tribunal who conducts the review must, without delay, inform the Minister of Transport and the designated operator or other person

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  (a) that the designated operator or other person has not committed a violation, in which case no further proceedings under this Act are to be taken against the designated operator or other person in respect of the alleged violation; or

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  (b) that the designated operator or other person has committed a violation, in which case the member must also inform the Minister of Transport and the designated operator or other person of the amount determined by the member, subject to section 128 and the regulations made under paragraph 135(1)(h), to be payable to the Tribunal by or on behalf of the designated operator or other person and the period within which it must be paid.

Marginal note:Right of appeal

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  132 (1) Within 30 days after a determination is made under section 131, the Minister of Transport or designated operator or other person affected by the determination may appeal the determination to the Tribunal.

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  Marginal note:Loss of right of appeal

  (2) A party who does not appear at a review hearing is not entitled to appeal the determination, unless the party establishes that there was sufficient reason to justify their absence.

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  Marginal note:Disposition of appeal

  (3) The appeal panel of the Tribunal that is assigned to hear an appeal may dismiss it or allow it and, in allowing the appeal, may substitute its decision for the determination.

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  Marginal note:Finding of violation

  (4) If the appeal panel finds that a designated operator or other person has committed a violation, the panel must immediately inform the designated operator or other person, as the case may be, and the Minister of Transport of the finding and, subject to any regulations made under paragraph 135(1)(h), of the amount determined by the panel to be payable to the Tribunal by or on behalf of the designated operator or other person, as the case may be, in respect of the violation and the time within which it must be paid.

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  Marginal note:Finding of no violation

  (5) If the appeal panel finds that a designated operator or other person has not committed a violation, the panel must immediately inform the designated operator or other person, as the case may be, and the Minister of Transport of the finding.