Bill C-43

WINDING-UP

34. (1) In this section, “eligible recipient” means an entity that

(a) is established in Canada;

(b) meets the criteria of eligibility established by the Foundation in accordance with any agreement entered into between Her Majesty in right of Canada and the Foundation for the provision of funding by Her Majesty in right of Canada to the Foundation; and

(c) has legal capacity or is composed of organizations each of which has legal capacity.

(2) If the Foundation is wound up or dissolved

(a) its property remaining after its debts and obligations have been satisfied shall be liquidated;

(b) the moneys arising from the liquidation shall be distributed among all the eligible recipients that have received funding from the Foundation and that are, as of the day the distribution begins, carrying on projects that are consistent with the purpose of the Foundation, to be used by them for those or any other projects that are so consistent; and

(c) each of those eligible recipients shall receive an amount that is the same proportion of the moneys arising from the liquidation as the total funding received by that eligible recipient from the Foundation is of the total of all funding that has been provided by the Foundation to all of those eligible recipients.

(3) Despite subsection (2), the Minister may require the Foundation to repay, out of the moneys arising from the liquidation, to the Receiver General for credit to the Consolidated Revenue Fund any amount that is so repayable under the terms or conditions on which public moneys were provided to the Foundation.

77. Section 35 of the Act is replaced by the following:

35. (1) The Board shall appoint an auditor for the Foundation and fix the auditor’s remuneration.

(2) In order to be appointed, the auditor must be

(a) a natural person who

(i) is a member in good standing of an institute or association of accountants incorporated by or under an Act of the legislature of a province,

(ii) has at least five years experience at a senior level in carrying out audits,

(iii) is ordinarily resident in Canada, and

(iv) is independent of the Board, the directors, the officers and, if any, the members of the Foundation; or

(b) a firm of accountants of which the member or employee, jointly designated by the Board and the firm to conduct the audit of the books and records of the Foundation on behalf of the firm, meets the qualifications set out in paragraph (a).

35.1 The accounts and financial transactions of the Foundation shall be audited annually and a report of the audit shall be made to the Board.

78. Section 36 of the Act is replaced by the following:

36. (1) The Board shall, within four months after the end of each fiscal year of the Foundation, submit to the Minister a report, in both official languages, of the activities of the Foundation for that year. The report shall include

(a) the financial statements of the Foundation for that year, prepared in accordance with generally accepted accounting principles, and the auditor’s report on those financial statements;

(b) a detailed statement of its investment activities during that year and its investment portfolio as at the end of that year;

(c) a detailed statement of its funding activities;

(d) a statement of its plans for fulfilling its purpose for the next fiscal year; and

(e) an evaluation of the overall results achieved by the Foundation.

(2) The Minister shall cause a copy of the report to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the Minister receives it.

(3) The Board shall, as soon as is practicable after it is tabled under subsection (2), make the report available for public scrutiny.

79. Section 37 of the Act is replaced by the following:

37. (1) The Board shall, within five years after the coming into force of this section and every five years after that, review the Foundation’s activities and organization and submit a report to the Minister on the activities and organization, including a statement of any changes the Board recommends.

(2) The Minister shall cause a copy of the report to be laid before each House of Parliament on any of the first 15 days on which that House is sitting after the Minister receives it.

80. The English version of the Act is amended by replacing the expressions “Chairman” and “Vice-Chairman” with the expressions “Chairperson” and “Vice-Chairperson”, respectively, wherever they occur in the following provisions:

(a) sections 12 to 14;

(b) section 16; and

(c) section 22.

Coordinating Amendments

81. (1) On the later of the coming into force of section 67 of this Act and section 224 of the Public Service Modernization Act, chapter 22 of the Statutes of Canada, 2003 (in this section referred to as the “other Act”), section 16.1 of the English version of the Asia-Pacific Foundation of Canada Act is replaced by the following:

16.1 A director who is part of the federal public administration does not have the right to vote on any matter before the Board or a committee of the Board.

(2) On the later of the coming into force of section 73 of this Act and section 224 of the other Act, section 27 of the English version of the Asia-Pacific Foundation of Canada Act is replaced by the following:

27. The Foundation is not an agent of Her Majesty and the Chairperson, the other directors, the President and the officers and employees of the Foundation are not, by virtue of their office or employment, part of the federal public administration.

PART 10

AMENDMENT TO THE BUDGET IMPLEMENTATION ACT, 1998

82. Paragraph 27(1)(a) of the Budget Implementation Act, 1998 is replaced by the following:

(a) are Canadian citizens or permanent residents within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act or protected persons within the meaning of subsection 95(2) of that Act;

PART 11

PAYMENTS FOR INFRASTRUCTURE

83. For the fiscal year 2005-2006, pursuant to the Government of Canada’s five-year initiative commonly known as “A New Deal for Cities and Communities”, the Minister of State (Infrastructure and Communities) may, subject to the terms and conditions approved by the Treasury Board, make payments from and out of the Consolidated Revenue Fund in an aggregate amount of not more than six hundred million dollars to provinces, territories and first nations for the purpose of providing funding to municipal and regional governments and related entities, including transit authorities and commissions and first nation communities, for environmentally sustainable infrastructure projects.

84. (1) The Minister of State (Infrastructure and Communities) shall not make a payment to a province, territory or first nation under section 83 unless the Government of Canada has entered into an agreement with the recipient province, territory or first nation.

(2) The Minister of State (Infrastructure and Communities) may, at the request of a provincial or territorial government, make payments under section 83 directly to a municipality, a municipal association or a provincial, territorial or municipal entity.

PART 12

NOVA SCOTIA AND NEWFOUNDLAND AND LABRADOR ADDITIONAL FISCAL EQUALIZATION OFFSET PAYMENTS

Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act

85. The Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act is enacted as follows:

An Act respecting additional fiscal equalization offset payments for Nova Scotia and Newfoundland and Labrador relating to revenues from offshore petroleum resources

SHORT TITLE

1. This Act may be cited as the Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act.

INTERPRETATION

2. The following definitions apply in this Act.

“Canada–Newfoundland and Labrador Arrangement” means the Arrangement between the Government of Canada and the Government of Newfoundland and Labrador on Offshore Revenues signed on February 14, 2005.

“Canada–Nova Scotia Arrangement” means the Arrangement between the Government of Canada and the Government of Nova Scotia on Offshore Revenues signed on February 14, 2005.

“Minister” means the Minister of Finance.

PURPOSE

3. The purpose of this Act is to implement the Canada–Newfoundland and Labrador Arrangement and the Canada–Nova Scotia Arrangement.

PART 1

ADDITIONAL FISCAL EQUALIZATION OFFSET PAYMENTS FOR NOVA SCOTIA

4. The following definitions apply in this Part.

“additional fiscal equalization offset payment” means the payment that may be made under section 6, 7 or 12.

“fiscal equalization offset payment” means the fiscal equalization offset payment that may be made to the Province for a fiscal year under Part V of the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation Act.

“fiscal equalization payment” means the fiscal equalization payment that may be made to the Province for a fiscal year under Part I of the Federal-Provincial Fiscal Arrangements Act.

“offshore revenue” in respect of any fiscal year means the aggregate of the following amounts paid to the Province for that fiscal year:

(a) amounts paid under paragraph 219(2)(b) of the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation Act;

(b) amounts paid with respect to the portion of tax under subsection 165(2) and sections 218.1, 220.05, 220.06 and 220.08 of the Excise Tax Act that is attributable to offshore activity in the Nova Scotia offshore area, within the meaning of subsection 123(1) of that Act; and

(c) amounts paid with respect to tax that would be payable under Part III of the Income Tax Act (Nova Scotia), R.S.N.S. 1989, c. 217, as amended from time to time, on taxable capital of a corporation employed in the offshore area within the meaning of section 2 of the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation Act if that area were in the land portion of the Province, unless those amounts have been included in paragraph (a).

“petroleum” has the same meaning as in section 2 of the Canada–Nova Scotia Offshore Petroleum Resources Accord Implementation Act.

“Province” means the Province of Nova Scotia.

5. The Minister shall make a payment to the Province in the amount of $830 million, to allow the Province to reduce its outstanding debt.

6. (1) For the 2004-2005 fiscal year, the Minister shall make an additional fiscal equalization offset payment to the Province in the amount of $30.5 million.

(2) For the 2005-2006 fiscal year, the Minister shall make an additional fiscal equalization offset payment to the Province in the amount of $26.6 million.

7. For each fiscal year between April 1, 2006 and March 31, 2012, the Minister shall make an additional fiscal equalization offset payment to the Province calculated in accordance with section 8.

8. The additional fiscal equalization offset payment that shall be made to the Province for a fiscal year corresponds to the amount determined by the Minister in accordance with the formula

(A - B) - C

where

A      is the fiscal equalization payment that may be made to the Province for the fiscal year under the equalization formula in effect at that time, calculated as if the Province did not have any offshore revenue or petroleum production;

B      is the fiscal equalization payment that may be made to the Province for that fiscal year under the equalization formula in effect at that time; and

C      is the fiscal equalization offset payment for that fiscal year.

9. Despite any other provision of this Act, no payment shall be made under sections 6 to 8 except to the extent that the aggregate of the payments determined under those sections for the fiscal year and the preceding applicable fiscal years exceeds $830 million.

10. For any given fiscal year between April 1, 2006 and March 31, 2012, the Province will not receive the additional fiscal equalization offset payment provided for in section 7 if it does not receive a fiscal equalization payment for that fiscal year.

11. (1) For each fiscal year between April 1, 2006 and March 31, 2011 in which the Province does not receive a fiscal equalization payment, the Minister shall make a transitional payment to the Province equal in amount to the sum that would be payable, under section 219 of the Canada–Newfoundland Atlantic Accord Implementation Act, and that would be determined, under section 220 of that Act, as if those sections applied to that Province’s offshore revenue.

(2) If the Province does not receive a fiscal equalization payment for the 2011-2012 fiscal year, the Minister shall make a transitional payment equal in amount to the sum that would be payable, under section 219 of the Canada–Newfoundland Atlantic Accord Implementation Act, and that would be determined, under section 220 of that Act, as if those sections applied to that Province’s offshore revenue and the amount determined in accordance with paragraph 220(b) of that Act is equal to zero.

(3) For the purpose of this section, the first fiscal year of offshore production is the fiscal year beginning on April 1, 1999.

12. (1) For any fiscal year between April 1, 2012 and March 31, 2020, the Minister shall make additional fiscal equalization offset payments to the Province, determined in accordance with the formula set out in section 8 if

(a) the Province qualified for a fiscal equalization payment in the 2010-2011 or 2011-2012 fiscal year;

(b) the Province’s per capita net debt as of March 31, 2012 was not lower than that of at least four other provinces; and

(c) the Province receives a fiscal equalization payment for that fiscal year.

(2) For the purpose of paragraph (1)(b), “per capita net debt” for a province as of March 31, 2012 means the amount determined by the Minister in accordance with the regulations.

13. For greater certainty, if the Province does not meet the conditions set out in paragraphs 12(1)(a) and (b), it will not receive the additional fiscal equalization offset payment provided for in section 12 for any of the fiscal years between April 1, 2012 and March 31, 2020.

14. (1) If for any fiscal year between April 1, 2012 and March 31, 2020 the Province does not receive an additional fiscal equalization offset payment but it received an additional fiscal equalization offset payment for the previous fiscal year, the Minister shall, for that fiscal year, pay to the Province a transitional payment equal to two thirds of the additional fiscal equalization offset payment it received for the previous fiscal year.

(2) If for any fiscal year between April 1, 2012 and March 31, 2020 the Province does not receive an additional fiscal equalization offset payment and did not receive an additional fiscal equalization offset payment for the previous fiscal year, but received an additional fiscal equalization offset payment for the fiscal year two years before that fiscal year, the Minister shall, for that fiscal year, pay to the Province a transitional payment equal to one third of the additional fiscal equalization offset payment it received for the fiscal year two years before that fiscal year.

15. On or before March 31, 2019, the Minister, on behalf of the Government of Canada, and the minister designated by the Province for the purpose will review the Canada–Nova Scotia Arrangement in accordance with clause 8 of that Arrangement.

16. The Government of Canada shall enter into discussions with the Province if requested to do so by the Province under the terms of clause 9 of the Canada–Nova Scotia Arrangement.

17. A determination, for any fiscal year, of the additional fiscal equalization offset payment for the Province and for any other calculation that is necessary for the purposes of this Part shall be made by the Minister at the same time as the final computation of the amount, if any, of the fiscal equalization payment that is payable to the Province is made for that fiscal year under Part I of the Federal-Provincial Fiscal Arrangements Act.

PART 2

ADDITIONAL FISCAL EQUALIZATION OFFSET PAYMENTS FOR NEWFOUNDLAND AND LABRADOR

18. The following definitions apply in this Part.

“additional fiscal equalization offset payment” means the payment that may be made under section 20, 21 or 26.

“fiscal equalization offset payment” means the fiscal equalization offset payment that may be made to the Province for a fiscal year under Part V of the Canada–Newfoundland Atlantic Accord Implementation Act.

“fiscal equalization payment” means the fiscal equalization payment that may be made to the Province for a fiscal year under Part I of the Federal-Provincial Fiscal Arrangements Act.

“offshore revenue”, in respect of any fiscal year, means the aggregate of the following amounts paid to the Province for that fiscal year:

(a) amounts paid under paragraph 214(2)(b) of the Canada-Newfoundland Atlantic Accord Implementation Act;

(b) amounts paid with respect to the portion of tax under subsection 165(2) and sections 218.1, 220.05, 220.06 and 220.08 of the Excise Tax Act that is attributable to offshore activity in the Newfoundland offshore area, within the meaning of subsection 123(1) of that Act; and

(c) the royalties paid under the Hibernia Development Project Royalty Agreement signed on September 1, 1990, as amended from time to time.

“petroleum” has the same meaning as in section 2 of the Canada–Newfoundland Atlantic Accord Implementation Act.

“Province” means the Province of Newfoundland and Labrador.

19. The Minister shall make a payment to the Province in the amount of $2 billion to allow the Province to reduce its outstanding debt.

20. (1) For the 2004-2005 fiscal year, the Minister shall make an additional fiscal equalization offset payment to the Province in the amount of $133.6 million.

(2) For the 2005-2006 fiscal year, the Minister shall make an additional fiscal equalization offset payment to the Province in the amount of $188.7 million.

21. For each fiscal year between April 1, 2006 and March 31, 2012, the Minister shall make an additional fiscal equalization offset payment to the Province calculated in accordance with section 22.

22. The additional fiscal equalization offset payment that shall be made to the Province for a fiscal year corresponds to the amount determined by the Minister in accordance with the formula

(A - B) - C

where

A      is the fiscal equalization payment that may be made to the Province for the fiscal year under the equalization formula in effect at that time, calculated as if the Province did not have any offshore revenue or petroleum production;

B      is the fiscal equalization payment to the Province for that fiscal year under the equalization formula in effect at that time; and

C      is the fiscal equalization offset payment for that fiscal year.

23. Despite any other provision of this Act, no payment shall be made under sections 20 to 22 by the Minister to the Province except to the extent that the aggregate of the payments determined under those sections for the fiscal year and the preceding applicable fiscal years exceeds $2 billion.

24. For any given fiscal year between April 1, 2006 and March 31, 2012, the Province will not receive the additional fiscal equalization offset payment provided for in section 21 if it does not receive a fiscal equalization payment for that fiscal year.

25. If the Province does not receive a fiscal equalization payment for the 2011-2012 fiscal year, the Minister shall make a transitional payment equal in amount to the sum that would be payable under section 219 of the Canada–Newfoundland Atlantic Accord Implementation Act, and that would be determined, under section 220 of that Act, as if those sections applied to that fiscal year and the amount determined in accordance with paragraph 220(b) of that Act is equal to zero.

26. (1) For any fiscal year between April 1, 2012 and March 31, 2020, the Minister shall make additional fiscal equalization offset payments to the Province, determined in accordance with the formula set out in section 22, if

(a) the Province qualified for a fiscal equalization payment in either of the 2010-2011 or 2011-2012 fiscal years;

(b) the Province’s per capita debt servicing charges as of March 31, 2012 were not lower than those of at least four other provinces; and

(c) the Province receives a fiscal equalization payment for that fiscal year.

(2) For the purpose of paragraph (1)(b), “per capita debt servicing charges” as of March 31, 2012, means the amount determined by the Minister in accordance with the formula

(A - B - C + D) / E

where

A      is the total of a province’s debt servicing charges for the 2011-2012 fiscal year, based on figures published in the fully consolidated audited financial statements presented on a full accrual basis of accounting in the province’s Public Accounts for the 2011-2012 fiscal year, with any necessary adjustments, as required, to include all of the debt charges related to unfunded pension liabilities, post-employment benefits and debt charges of government organizations and entities whose inclusion would be consistent with the accounting principles of full consolidation;

B      is the portion of A, if any, related to borrowings made by a province on behalf of self-supporting government business enterprises that are not dependent on transfers, grants or other direct funding from the province to fund their day-to-day operations or debt repayments;

C      is the portion of A, if any, related to borrowings made by a province on behalf of municipalities that are not in default on their interest payment obligations to the province;

D      is the total of a province’s debt servicing charges for the 2011-2012 fiscal year related to borrowings made by the province on behalf of municipalities that are in default on their interest payment obligations to the province, if these are not already included in A; and

E      is the total population of a province on July 1, 2011 based on the latest Statistics Canada official estimates available as soon as all provinces have released their Public Accounts for the 2011-2012 fiscal year.

27. For greater certainty, if the Province does not meet the conditions set out in paragraphs 26(1)(a) and (b), it will not receive the additional fiscal equalization offset payment provided for in section 26 for any of the fiscal years between April 1, 2012 and March 31, 2020.

28. (1) If for any fiscal year between April 1, 2012 and March 31, 2020 the Province does not receive an additional fiscal equalization offset payment but it received an additional fiscal equalization offset payment for the previous fiscal year, the Minister shall, for that fiscal year, pay to the Province a transitional payment equal to two thirds of the additional fiscal equalization offset payment it received for the previous fiscal year.

(2) If for any fiscal year between April 1, 2012 and March 31, 2020 the Province does not receive an additional fiscal equalization offset payment and did not receive an additional fiscal equalization offset payment for the previous fiscal year, but received an additional fiscal equalization offset payment for the fiscal year two years before that fiscal year, the Minister shall, for that fiscal year, pay to the Province a transitional payment equal to one third of the additional fiscal equalization offset payment it received for the fiscal year two years before that fiscal year.

29. On or before March 31, 2019, the Minister, on behalf of the Government of Canada, and the minister designated by the Province for the purpose will review the Canada–Newfoundland and Labrador Arrangement, in accordance with clause 8 of that Arrangement.

30. The Government of Canada shall enter into discussions with the Province if requested to do so by the Province under the terms of clause 9 of the Canada–Newfoundland and Labrador Arrangement.

31. A determination, for any fiscal year, of the additional fiscal equalization offset payment for the Province and for any other calculation that is necessary to be made for the purposes of this Part shall be made by the Minister at the same time as the final computation of the amount, if any, of the fiscal equalization payment that is payable to the Province is made for that fiscal year under Part I of the Federal-Provincial Fiscal Arrangements Act.

PART 3

GENERAL PROVISIONS

32. The amounts authorized to be paid under this Act shall be paid out of the Consolidated Revenue Fund by the Minister at the time and in the manner, subject to section 33, that the Minister considers appropriate.

33. (1) The Governor in Council may make regulations, on the recommendation of the Minister,

(a) prescribing the time and manner of making any payments under this Act;

(b) respecting the determination of the amount referred to in subsection 12(2);

(c) respecting the determination of any matter that under this Act is to be determined by the Minister; and

(d) prescribing anything that is required or authorized to be prescribed by this Act.

(2) The Minister may recommend the making of a regulation under paragraph (1)(b) only after receipt by the Minister of the approval of the proposed regulation from the minister designated by the Province for that purpose.

Related Amendment to the Budget Implementation Act, 2004

86. Subsections 8(1) to (3) of the Budget Implementation Act, 2004 are replaced by the following:

8. (1) For the fiscal year beginning on April 1, 2004, the Minister of Finance may make a cash payment to the Province of Nova Scotia in the amount of thirty-four million dollars.

(2) For the fiscal year beginning on April 1, 2005, the Minister of Finance may make a cash payment to the Province of Nova Scotia in the amount of four million dollars.

PART 13

CANADA EMISSION REDUCTION INCENTIVES AGENCY

Canada Emission Reduction Incentives Agency Act

87. The Canada Emission Reduction Incentives Agency Act is enacted as follows:

An Act to establish the Canada Emission Reduction Incentives Agency

Recognizing that the reduction or removal of greenhouse gases is necessary to fight climate change and can also result in cleaner air, achieve other environmental objectives and advance the competitiveness and efficiency of Canadian industry;

NOW, THEREFORE, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

SHORT TITLE

1. This Act may be cited as the Canada Emission Reduction Incentives Agency Act.

INTERPRETATION

2. The following definitions apply in this Act.

“Agency” means the Canada Emission Reduction Incentives Agency established by section 4.

“compliance unit” means a compliance unit within the meaning of the Kyoto Protocol.

“eligible credit” means an eligible domestic credit or an eligible Kyoto unit.

“eligible domestic credit” means a tradeable unit that is of an eligible class designated by order made under paragraph 3(a).

“eligible Kyoto unit” means any compliance unit that is of an eligible class designated by order made under paragraph 3(b).

“greenhouse gas” means any gas listed in Annex A to the Kyoto Protocol.

“Kyoto Protocol” means the Kyoto Protocol to the United Nations Framework Convention on Climate Change done at Kyoto on December 11, 1997, and includes any decision related to the implementation of that protocol taken by the “Conference of the Parties serving as the Meeting of the Parties to the Kyoto Protocol”, within the meaning of that protocol.

“Minister” means the Minister of the Environment.

INTERPRETATION

2.1 For greater certainty, nothing in this Act limits or affects, expressly or implicitly, the power of a province to provide incentives for the reduction or removal of greenhouse gases through the acquisition, on behalf of the province, before or after they are created, of eligible credits created as a result of the reduction or removal of those gases by any means established by the province.

DESIGNATIONS

3. The Minister may, for the purposes of this Act, by order, designate

(a) as an eligible class for the purposes of the definition “eligible domestic credit” in section 2, any class of tradeable units issued under any program or measure established under section 322 of the Canadian Environmental Protection Act, 1999 ; and

(b) as an eligible class for the purposes of the definition “eligible Kyoto unit” in section 2, any class of compliance unit.

ESTABLISHMENT OF AGENCY

4. (1) There is established a body corporate called the Canada Emission Reduction Incentives Agency, which may exercise powers only as an agent of Her Majesty in right of Canada.

(2) The expression “Climate Fund” may be used to refer to the Agency.

5. (1) The Minister is responsible for and has the overall direction of the Agency.

(2) The Agency must comply with any general or special direction given by the Minister with reference to the carrying out of its object.

(3) The Minister may inquire into any activity of the Agency and has access to any information under the Agency’s control.

(4) The Minister may delegate to any person any power, duty or function conferred on the Minister under this Act, except the power to make orders under section 3 and regulations under subsection 18(2) and the power to delegate under this subsection.

OBJECT

6. The object of the Agency is to provide incentives for the reduction or removal of greenhouses gases through the acquisition, on behalf of the Government of Canada, of eligible credits created as a result of the reduction or removal of those gases.

ORGANIZATION AND HEAD OFFICE

7. The Governor in Council shall appoint a President of the Agency to hold office during pleasure for a renewable term of up to five years.

8. The President is chief executive officer of the Agency and has supervision over and direction of its work and staff.

9. The President may delegate to any person any power, duty or function conferred on the President under this Act.

10. The President is to be paid the remuneration that is fixed by the Governor in Council.

11. The head office of the Agency is to be at the place in Canada that is designated by the Governor in Council.

ADVISORY BOARD

12. (1) The Governor in Council shall appoint an advisory board of not more than 12 members to hold office during pleasure for a term of not more than three years, which term may be renewed for one or more further terms.

(2) The role of the advisory board is to advise the Minister on any matter within the object of the Agency, including

(a) the types of projects that are most likely to result in significant reductions of greenhouse gas emissions and advance the competitiveness and efficiency of Canadian industry; and

(b) market conditions relating to eligible domestic credits and eligible Kyoto units.

(3) The Governor in Council may appoint any person with relevant knowledge or expertise to the advisory board, including persons from the agriculture, energy and forest sectors, environmental groups or provincial or municipal governments, and persons with knowledge or expertise in the markets for domestic and international credits relating to reductions or removals of greenhouse gases.

(3.1) The Minister shall publish the advice given under subsection (2) within 30 days after receiving it from the advisory board.

(4) The Minister shall appoint one of the members as Chairperson of the advisory board.

(5) The members of the advisory board are to be paid, in connection with their work for the advisory board, the remuneration that may be fixed by the Governor in Council.

(6) The members of the advisory board are entitled to be reimbursed, in accordance with Treasury Board directives, the travel, living and other expenses incurred in connection with their work for the advisory board while absent from their ordinary place of residence.

(7) The Chairperson may determine the times and places at which the advisory board will meet, but it must meet at least four times a year.

EMPLOYEES

13. The employees that are necessary for the proper conduct of the work of the Agency are to be appointed in accordance with the Public Service Employment Act.

DUTIES AND POWERS OF THE AGENCY

14. The Agency may enter into contracts and other agreements with any person in Canada or elsewhere, or with any organization or government, including an international organization or the government of a foreign state, in the name of Her Majesty in right of Canada or in its own name.

15. Actions, suits or other legal proceedings in respect of any right or obligation acquired or incurred by the Agency, whether in its own name or in the name of Her Majesty in right of Canada, may be brought or taken by or against the Agency in the name of the Agency in any court that would have jurisdiction if the Agency were not an agent of Her Majesty.

16. The Agency has the authority to acquire eligible credits through its own procurement process despite any provision of any other Act of Parliament.

17. The Agency must use a competitive process to acquire eligible domestic credits to ensure the cost-effectiveness of the acquisition.

18. (1) The Agency must use a competitive process to acquire eligible Kyoto units and must be satisfied that the acquisition of those units is of benefit to Canada, taking into account the factors specified in the regulations.

(2) The Minister may make regulations specifying factors for the purposes of subsection (1).

19. (1) The Agency may, with the approval of the Treasury Board, make payments to acquire eligible domestic credits before they are created if the Agency exercises due diligence and

(a) the credits are to be created in relation to a project that meets criteria established by the Minister;

(b) the Minister is satisfied that it is reasonable to expect that the project will result in reductions or removals of greenhouse gases in the amounts anticipated in the agreement relating to the acquisition; and

(c) the agreement relating to the acquisition contains a provision requiring the repayment of the proportion of the amounts advanced for which no credits are received by the Agency.

(2) If the Agency makes payments to acquire eligible domestic credits before they are created, the amount of reductions or removals of greenhouse gases related to the credits being acquired may be less than or equal to the total amount of reductions or removals of greenhouse gases anticipated from the project for which the credits are created.

20. After acquiring eligible credits in its own name, the Agency must, without delay, take the steps necessary to have them recorded in the name of Her Majesty in right of Canada in any database designated by the Minister.

21. The Agency may enter into contracts, agreements or other arrangements with Her Majesty as if it were not an agent of Her Majesty.

GENERAL

22. The President and the members of the advisory board are deemed to be employees for the purposes of the Government Employees Compensation Act and to be employed in the public service of Canada for the purposes of any regulations made under section 9 of the Aeronautics Act.

CORPORATE BUSINESS PLAN

23. (1) As soon as possible after the Agency is established and every year after that, the Agency must submit a corporate business plan to the Minister for approval and the Minister must cause a copy of the plan to be tabled in each House of Parliament on any of the first fifteen days on which that House is sitting after the Minister approves the plan.

(2) The corporate business plan must include a statement of

(a) the Agency’s objectives for the next five years;

(b) the strategies that the Agency intends to use to achieve its objectives, including operational, financial and human resource strategies;

(c) the Agency’s expected performance over that period; and

(d) the Agency’s operating and capital budgets for each year of that period.

AUDIT

24. The Auditor General of Canada is the auditor for the Agency and must

(a) annually audit and provide an opinion to the Agency and the Minister on the financial statements of the Agency; and

(b) provide the Minister and the President with copies of reports of audits carried out under this section.

ANNUAL REPORT

25. (1) The Agency must, before December 31 of each year following the Agency’s first full year of operations, submit an annual report on the operations of the Agency for the preceding fiscal year to the Minister, and the Minister must cause a copy of the report to be tabled in each House of Parliament on any of the first fifteen days on which that House is sitting after the Minister receives it.

(2) The annual report must include

(a) the financial statements of the Agency, prepared in accordance with accounting principles consistent with those applied in preparing the Public Accounts referred to in section 64 of the Financial Administration Act, and the Auditor General of Canada’s opinion on them;

(b) information about the Agency’s performance with respect to the objectives established in the corporate business plan; and

(c) any other information that the Minister may require to be included in it.

Consequential Amendments

Access to Information Act

88. Schedule I to the Access to Information Act is amended by adding the following in alphabetical order under the heading “Other Government Institutions”:

Canada Emission Reduction Incentives Agency

Financial Administration Act

89. Schedule II to the Financial Administration Act is amended by adding the following in alphabetical order:

Canada Emission Reduction Incentives Agency

Privacy Act

90. The schedule to the Privacy Act is amended by adding the following in alphabetical order under the heading “Other Government Institutions”:

Canada Emission Reduction Incentives Agency

Public Service Staff Relations Act

91. Part I of Schedule I to the Public Service Staff Relations Act is amended by adding the following in alphabetical order:

Canada Emission Reduction Incentives Agency

Public Service Superannuation Act

92. Part I of Schedule I to the Public Service Superannuation Act is amended by adding the following in alphabetical order:

Canada Emission Reduction Incentives Agency

Coordinating Amendments

93. (1) On the later of the coming into force of section 87 of this Act and section 11 of the Public Service Modernization Act, chapter 22 of the Statutes of Canada, 2003 (in this section referred to as the “other Act”), Schedule IV to the Financial Administration Act is amended by adding the following in alphabetical order:

Canada Emission Reduction Incentives Agency

(2) If section 11 of the other Act comes into force before section 91 of this Act, then, on the later of the day on which that section 11 comes into force and the day on which this Act receives royal assent, section 91 of this Act and the heading before it are repealed.

94. On the later of the coming into force of section 87 of this Act and section 224 of the Public Service Modernization Act, chapter 22 of the Statutes of Canada, 2003, section 22 of the English version of the Canada Emission Reduction Incentives Agency Act, as enacted by section 87 of this Act, is replaced by the following:

22. The President and the members of the advisory board are deemed to be employees for the purposes of the Government Employees Compensation Act and to be employed in the federal public administration for the purposes of any regulations made under section 9 of the Aeronautics Act.

Coming into Force

95. This Part, other than sections 93 and 94, comes into force on a day to be fixed by order of the Governor in Council.

PART 14

GREENHOUSE GAS TECHNOLOGY INVESTMENT FUND

96. The Greenhouse Gas Technology Investment Fund Act is enacted as follows:

An Act to establish the Greenhouse Gas Technology Investment Fund for the reduction of greenhouse gas emissions and the removal of greenhouse gases from the atmosphere

SHORT TITLE

1. This Act may be cited as the Greenhouse Gas Technology Investment Fund Act.

INTERPRETATION

2. The following definitions apply in this Act.

“eligible contributor” means a person who is subject to requirements — set out in regulations made under any Act of Parliament — respecting emissions of greenhouse gas from industrial sources, other than a person who is a vehicle manufacturer.

“Fund” means the Greenhouse Gas Technology Investment Fund established in section 3.

“greenhouse gas” means any gas listed in Annex A to the Kyoto Protocol to the United Nations Framework Convention on Climate Change done at Kyoto on December 11, 1997, as amended from time to time, to the extent that the amendments are binding on Canada.

“Minister” means the Minister of Natural Resources.

“vehicle” means any vehicle that is capable of being driven or drawn on roads by any means other than muscular power exclusively, but does not include any vehicle designed to run exclusively on rails.

GREENHOUSE GAS TECHNOLOGY INVESTMENT FUND

3. There is established in the accounts of Canada an account to be known as the Greenhouse Gas Technology Investment Fund.

4. There shall be paid into the Consolidated Revenue Fund and credited to the Fund

(a) all amounts contributed to Her Majesty in right of Canada by an eligible contributor for the purpose of

(i) research into, or the development or demonstration of, technologies or processes intended to reduce emissions of greenhouse gases from industrial sources or to remove greenhouse gases from the atmosphere in the course of an industrial operation, or

(ii) creating elements of the infrastructure that are necessary to support research into, or the development or demonstration of, those technologies or processes; and

(b) an amount representing interest of the balance from time to time to the credit of the account at the rate and calculated in the manner that the Governor in Council may, on the recommendation of the Minister of Finance, prescribe.

5. There shall be charged to the Fund the amounts paid out under section 6.

GRANTS OR CONTRIBUTIONS

6. (1) The Minister may, out of the Consolidated Revenue Fund, make grants or contributions in any amount that he or she considers appropriate for any purpose referred to in paragraph 4(a).

(2) In making a grant or contribution, the Minister shall consider

(a) the competitiveness and efficiency of industry;

(b) the sustainable development of Canada’s natural resources;

(c) the development of Canadian scientific and technological capabilities; and

(d) any recommendations made by the standing committee of the House of Commons that normally considers matters related to the environment.

(3) No grant or contribution may be made in excess of the amount of the balance to the credit of the Fund.

ADVISORY BOARD

7. (1) The Governor in Council shall appoint an advisory board of not more than 12 members to hold office during pleasure for a term of not more than three years, which term may be renewed for one or more further terms.

(2) The role of the advisory board is to advise the Minister on any matter respecting the making of grants or contributions for any of the purposes referred to in paragraph 4(a), including the types of projects that are most likely to result in significant reductions of greenhouse gas emissions and the matters referred to in paragraphs 6(2)(a) to (d).

(3) The Minister shall publish the advice given under subsection (2) within 30 days after receiving it from the advisory board.

(4) The Governor in Council may appoint any person with relevant knowledge or expertise to the advisory board, including persons from industry, institutions of learning and environmental groups.

(5) The Minister shall appoint one of the members as Chairperson of the advisory board.

(6) The members of the advisory board are to be paid, in connection with their work for the advisory board, the remuneration that may be fixed by the Governor in Council.

(7) The members of the advisory board are entitled to be reimbursed, in accordance with Treasury Board directives, the travel, living and other expenses incurred in connection with their work for the advisory board while absent from their ordinary place of residence.

(8) The Chairperson may determine the times and places at which the advisory board will meet, but it must meet at least once a year.

(9) The members of the advisory board are deemed to be employees for the purposes of the Government Employees Compensation Act and to be employed in the federal public administration for the purposes of any regulations made under section 9 of the Aeronautics Act.

TECHNOLOGY INVESTMENT UNITS

8. (1) Subject to subsections (2) to (5), the Minister must create technology investment units in respect of contributions made by eligible contributors to Her Majesty in right of Canada or to any fund designated by the Minister for the purposes of this subsection, for any of the purposes referred to in paragraph 4(a).

(2) The technology investment units are to be created in respect of a contribution by an eligible contributor in a manner that allows them to be recorded in a database established in relation to the emission requirements applicable to the eligible contributor.

(3) Technology investment units may be created only in respect of contributions made on or after January 1, 2008.

(4) Subject to subsection (5), the Governor in Council may, on the recommendation of the Minister of the Environment, make regulations

(a) fixing the amount that must be contributed for technology investment units to be created, or the manner of calculating that amount; and

(b) determining the maximum number of those units that may be created in any period specified in the regulations.

(5) Until December 31, 2012, the maximum amount that may be contributed for a technology investment unit to be created may not be more than $15.

(6) Technology investment units may only be used by the eligible contributor in respect of whom they were created and that eligible contributor may use them only in accordance with any regulations in force that govern the manner in which they may be used to meet requirements relating to emissions of greenhouse gases from industrial sources.

97. This Part comes into force on a day to be fixed by order of the Governor in Council.

PART 15

AMENDMENTS TO THE CANADA DEPOSIT INSURANCE CORPORATION ACT

Canada Deposit Insurance Corporation Act

98. Paragraph 7(b) of the Canada Deposit Insurance Corporation Act is replaced by the following:

(b) to promote and otherwise contribute to the stability of the financial system in Canada; and

99. Paragraph 8(c) of the Act is replaced by the following:

(c) a retail association within the meaning of regulations made under the Cooperative Credit Associations Act.

100. Paragraph 11(2)(e) of the Act is repealed.

101. Paragraph 12(c) of the Act is replaced by the following:

(c) so much of any one deposit as exceeds one hundred thousand dollars.

102. Subsection 13(2) of the Act is replaced by the following:

(2) A deposit made by a person referred to in subsection (1) with an amalgamated institution after the day on which the amalgamated institution is formed shall be insured by the Corporation only to the extent that the aggregate of that person’s deposits with the amalgamated institution, exclusive of the deposit in respect of which the calculation is made, is less than one hundred thousand dollars.

103. Subsection 14(2.4) of the Act is replaced by the following:

(2.4) Where the Corporation makes a payment pursuant to subsection (2), the Corporation may pay, in addition to the amount the Corporation is obliged to pay, interest on that amount at a rate determined in accordance with rules prescribed by the by-laws for the period commencing on the date of the commencement of the winding-up in respect of the member institution that holds the deposit and ending on the date of the making of the payment in respect of the deposit, but the aggregate of the payments made under this subsection and subsection (2) in relation to the deposit shall in no case exceed one hundred thousand dollars.

104. (1) Subsection 17(1) of the Act is replaced by the following:

17. (1) The Corporation shall insure the deposits held by a federal institution in the manner and to the extent provided in this Act and the by-laws.

(1.1) On the application of a provincial institution, the Corporation may insure the deposits held by the institution in the manner and to the extent provided in this Act and the by-laws, if

(a) the Corporation approves the institution for deposit insurance;

(b) the institution is authorized by the province of its incorporation to apply for deposit insurance;

(c) the institution agrees, in carrying on its business, not to exercise powers substantially different from the powers exercisable by a company to which the Trust and Loan Companies Act applies; and

(d) the Corporation is satisfied that at all times the Corporation will have adequate access to information regarding the institution.

(2) Subsection 17(3) of the Act is repealed.

105. Paragraph 29(1)(b) of the Act is replaced by the following:

(b) comment on the operations of the member institution; and

106. Paragraph 30(1)(a) of the Act is repealed.

107. (1) The portion of subsection 31(1) of the Act before paragraph (a) is replaced by the following:

31. (1) Where a report has been sent or delivered under subsection 30(1) and the progress made by the member institution in remedying the breach is not satisfactory to the Corporation, the Corporation shall, by notice,

(2) Paragraph 31(3)(a) of the Act is replaced by the following:

(a) the Corporation is satisfied that the member institution is taking the necessary action to remedy the breach to which the notice relates; or

(3) Subsections 31(4) and (5) of the Act are replaced by the following:

(4) Where a report has been sent or delivered under subsection 30(1) in respect of a federal member institution and the member institution and the Minister have been informed in accordance with subsection (1) by the Corporation that the Corporation is not satisfied with the member institution’s progress in remedying the breach to which the report relates, the Corporation may, unless the Minister advises the Corporation that the Minister is of the opinion that it is not in the public interest to do so, give the member institution not less than thirty days notice of the termination of its policy of deposit insurance.

(5) The policy of deposit insurance of a federal member institution shall terminate on the expiration of the period specified in the notice given under subsection (4) or such later period not exceeding sixty days as the Corporation may determine unless, before the expiration of that period, the Corporation is satisfied that the member institution is taking the necessary action to remedy the breach to which the notice relates.

108. Subsection 3(1.1) of the schedule to the Act is replaced by the following:

(1.1) For greater certainty, where two or more persons are joint owners of two or more deposits, the aggregate of those deposits shall be insured to a maximum of one hundred thousand dollars.

Coming into Force

109. (1) Subject to subsection (2), the provisions of this Part come into force on a day or days to be fixed by order of the Governor in Council.

(2) Sections 101 to 103 and 108 are deemed to have come into force on February 23, 2005.

PART 16

AMENDMENTS TO THE CANADA STUDENT FINANCIAL ASSISTANCE ACT

110. The Canada Student Financial Assist­ance Act is amended by adding the following after section 10:

10.1 (1) All obligations of a borrower in respect of a loan made under an agreement entered into under section 6.1 terminate if the borrower dies.

(2) If a borrower dies before this section comes into force, then all obligations of that borrower in respect of such a loan terminate on the day on which this section comes into force.

111. The Act is amended by adding the following after section 11:

11.1 All obligations of a borrower in respect of a loan made under an agreement entered into under section 6.1 terminate if the Minister is satisfied, on the basis of information specified by the Minister and provided to the Minister by or on behalf of the borrower, that the borrower, by reason of the borrower’s permanent disability, is or will be unable to repay the loan without exceptional hardship, taking into account the borrower’s family income.

112. (1) Paragraph (c) of the description of B in the definition “net costs” in subsection 14(6) of the Act is replaced by the following:

(c) the amount of the outstanding principal and interest in respect of all loans referred to in paragraph (a) for which the borrower’s obligations have terminated in that loan year as a result of the death or disability of the borrower, and

(2) Paragraph (c) of the description of B in the definition “total program net costs” in subsection 14(6) of the Act is replaced by the following:

(c) the amount of the outstanding principal and interest in respect of all loans referred to in paragraph (a) for which the borrower’s obligations have terminated in that loan year as a result of the death or disability of the borrower, and

(3) Paragraph 14(7)(c) of the Act is replaced by the following:

(c) in respect of loans made under an agreement entered into under section 6.1, amounts in relation to a termination of a borrower’s obligations under section 10.1 or 11.1 or to a reduction in the outstanding principal resulting from the operation of regulations made under paragraph 15(o), other than regulations that provide for the repayment of student loans by borrowers on an income-contingent basis; and

PART 17

AMENDMENTS TO THE CURRENCY ACT

Exchange Fund Account

113. Section 17 of the Currency Act is replaced by the following:

17. The special account in the name of the Minister known as the Exchange Fund Account, established to aid in the control and protection of the external value of the monetary unit of Canada, is continued and all assets acquired and held by or on behalf of the Minister in the Exchange Fund Account continue to be so held.

17.1 (1) The Minister may establish a policy concerning the investment of the assets held in the Exchange Fund Account, including concerning the acquisition of assets to be held in the Exchange Fund Account, based on principles that a person of ordinary prudence would apply in dealing with the property of others.

(2) The Minister may not delegate the power to establish the policy.

(3) The Statutory Instruments Act does not apply to the policy.

17.2 (1) The Minister may acquire or borrow assets to be held in the Exchange Fund Account, and sell or lend those assets, in order to carry out the policy.

(2) The Minister may carry out any transaction of a financial nature concerning assets held in the Exchange Fund Account that is in accordance with the policy.

(3) The Minister may appoint agents and mandataries to perform services concerning the Exchange Fund Account.

(4) The Minister may delegate the powers set out in subsections (1) to (3) only in writing.

17.3 All amounts received by the Minister from transactions carried out under subsections 17.2(1) and (2) shall be credited to the Exchange Fund Account.

114. Sections 19 to 21 of the Act are replaced by the following:

19. The Minister may authorize advances to the Exchange Fund Account out of the Consolidated Revenue Fund on any terms and conditions that the Minister considers appropriate.

20. (1) Within three months after the end of each fiscal year, the amount of the net income of the Exchange Fund Account for the fiscal year, expressed in dollars, shall be paid into the Consolidated Revenue Fund if the net income for the year is a positive amount, and shall be charged to that Fund if the net income for the year is a negative amount.

(2) The net income of the Exchange Fund Account for a fiscal year shall be determined in accordance with accounting principles consistent with those applied in preparing the Public Accounts referred to in section 64 of the Financial Administration Act.

21. (1) The Minister shall cause to be tabled before each House of Parliament a report on the operation of the Exchange Fund Account for each fiscal year within the first 60 days on which that House is sitting after the end of that fiscal year.

(2) The report referred to in subsection (1) shall include

(a) a summary of the policy established under subsection 17.1(1);

(b) the objectives of the Exchange Fund Account for that fiscal year, and a statement of whether those objectives have been met;

(c) the objectives of the Exchange Fund Account for the current fiscal year;

(d) the financial statements of the Exchange Fund Account;

(e) a list of the agents and mandataries appointed by the Minister under subsection 17.2(3); and

(f) the Auditor General of Canada’s report referred to in subsection 22(2).

115. Subsection 22(2) of the Act is replaced by the following:

(2) In each fiscal year, the Auditor General of Canada shall audit the Exchange Fund Account and the transactions connected with the Account in any manner that he or she thinks proper and report to the Minister on the results of the audit.

116. Section 23 of the Act is repealed.

Transitional Provisions

117. The 15-month period that begins after the last calendar year for which the net income of the Exchange Fund Account was paid into or charged to the Consolidated Revenue Fund under section 20 of the Currency Act, as it read before the coming into force of this Part, is deemed to be the first fiscal year to which section 20 of that Act, as enacted by section 114 of this Act, applies.

118. The 15-month period that begins after the last calendar year for which the Minister of Finance reported to Parliament under section 21 of the Currency Act, as it read before the coming into force of this Part, is deemed to be the first fiscal year to which section 21 of that Act, as enacted by section 114 of this Act, applies.

Coming into Force

119. This Part comes into force on a day to be fixed by order of the Governor in Council.

PART 18

AMENDMENTS TO THE DEPARTMENT OF PUBLIC WORKS AND GOVERNMENT SERVICES ACT

Department of Public Works and Government Services Act

120. Section 2 of the Department of Public Works and Government Services Act is amended by adding the following in alphabetical order:

“materiel” includes goods;

121. Paragraphs 6(b) and (c) of the Act are replaced by the following:

(b) the acquisition and provision of services, including construction services, for departments;

(c) the planning and organizing of the provision of materiel and services, including construction services, required by departments;

122. Paragraphs 7(1)(b) and (c) of the Act are replaced by the following:

(b) acquire materiel and services, including construction services, in accordance with any applicable regulations relating to government contracts;

(c) plan and organize the provision of materiel and related services to departments including construction services, the preparation of specifications and standards, the cataloguing of materiel, the determination of aggregate requirements for materiel, the assuring of quality of materiel, and the maintenance, distribution, storage and disposal of materiel and other activities associated with the management of materiel; and

123. Section 9 of the Act is replaced by the following:

9. Subject to any conditions that may be imposed by the Treasury Board or any regulations that the Treasury Board may make for the purposes of this section, the Minister shall exercise the powers in relation to the acquisition and provision of materiel and services, including construction services but not including legal services, for the use of any department that are conferred on any minister or other authority under any Act of Parliament or any other law, except to the extent that those powers have been delegated by the Minister.

124. Section 20 of the Act is replaced by the following:

20. Despite subsection 32(1) of the Financial Administration Act but subject to any conditions that may be imposed by the Governor in Council or the Treasury Board and any regulations that the Governor in Council or the Treasury Board may make for the purposes of this section, the Minister may, on behalf of the Government of Canada, enter into contracts for the performance of any matter or thing that falls within the ambit of the Minister’s powers, duties or functions.

Coming into Force

125. This Part comes into force on a day to be fixed by order of the Governor in Council.

PART 19

AMENDMENTS RELATED TO THE PREMIUM RATE PROVIDED FOR UNDER THE EMPLOYMENT INSURANCE ACT

Employment Insurance Act

126. Sections 66 to 67 of the Employment Insurance Act are replaced by the following:

65.3 (1) The chief actuary referred to in section 31 of the Department of Human Resources Development Act shall determine the premium rate for a year that, in the chief actuary’s opinion, based on the information provided by the Minister of Finance under section 66.2 and taking into account any regulations made under section 69, should generate just enough premium revenue during that year to cover the payments that will be made under subsection 77(1) during that year.

(2) If the Minister has announced, on or before October 14 of the previous year, any changes to payments to be made under paragraph 77(1)(a), (b) or (c) for a year, the chief actuary shall, at the request of the Minister, take into account those changes and make another determination of the premium rate that, in the chief actuary’s opinion, based on the information provided by the Minister of Finance under section 66.2 and taking into account any regulations made under section 69, should generate just enough premium revenue during that year to cover the payments that would be made under subsection 77(1) during that year if the changes were to commence on the date specified by the Minister.

(3) The chief actuary shall provide to the Commission a report setting out the premium rate determined under subsection (1) or (2) for a year, on or before October 14 of the previous year, and the Commission shall, as soon as possible after receiving the report, make it available to the public.

66. (1) Subject to subsection (2) and sections 66.1 and 66.3, the Commission shall set the premium rate for a year, taking into account

(a) the principle that the premium rate should generate just enough premium revenue during that year to cover the payments that will be made under subsection 77(1) during that year, based on the information provided by the Minister of Finance under section 66.2, taking into account any regulations made under section 69, and considering any changes to payments made under subsection 77(1) that have been announced by the Minister;

(b) the report of the chief actuary to the Commission for that year; and

(c) any public input.

(2) The premium rate for a year may not be increased or decreased by more than fifteen one-hundredths of one per cent (0.15%) relative to the premium rate for the previous year.

(3) The Commission shall set the premium rate for a year on or before November 14 in the previous year.

66.1 For 2006 and 2007, the premium rate in each year may not be greater than 1.95%.

66.2 The Minister of Finance shall, on or before September 30 of a year, provide to the chief actuary and the Commission the most current forecast values of the economic variables that are relevant to the determination, under section 65.3 or under subsection 66(1), as the case may be, of a premium rate for the following year.

66.3 Subject to subsection 66(2) and section 66.1, on the joint recommendation of the Minister and the Minister of Finance, the Governor in Council may, on or before November 30 in a year, substitute a premium rate for the following year that is different from the one set by the Commission under subsection 66(1), if the Governor in Council considers it to be in the public interest.

66.4 If the calculation of a premium rate under section 65.3, 66 or 66.3 results in a rate that includes a fraction of one per cent, the resulting percentage is to be rounded to the nearest one-hundredth of one per cent or, if the resulting percentage is equidistant from two one-hundredths of one percent, to the higher of them.

66.5 The Statutory Instruments Act does not apply in respect of a premium rate set under section 66 or 66.3 or the premiums determined under sections 67 and 68. However, the premium rates must, as soon as possible, be published by the Commission in Part I of the Canada Gazette.

66.6 For greater certainty, the User Fees Act does not apply in respect of the premium rate set under section 66 or 66.3 or the premiums determined under sections 67 and 68.

67. Subject to section 70, a person employed in insurable employment shall pay, by deduction as provided in subsection 82(1), a premium equal to their insurable earnings multiplied by the premium rate set under section 66 or 66.3, as the case may be.

Department of Human Resources Development Act

127. Section 31 of the Department of Human Resources Development Act is amended by adding the following after subsection (1):

(1.1) The employee or officer who holds the position of chief actuary shall be under the direction of the Commission in the performance of the chief actuary’s functions under section 65.3 of the Employment Insurance Act.

128. The Act is amended by adding the following after section 31:

31.1 Despite section 31, the Commission may, as it considers necessary for the purpose of assisting it in setting the premium rate under section 66 of the Employment Insurance Act, contract for the services of persons who have specialized knowledge and may fix and pay the remuneration and expenses of those persons.

Coordinating Amendments

129. (1) Subsections (2) and (3) apply if Bill C-23, introduced in the 1st session of the 38th Parliament and entitled the Department of Human Resources and Skills Development Act (in this section referred to as the “other Act”), receives royal assent.

(2) On the later of the coming into force of section 126 of this Act and section 28 of the other Act,

(a) section 28 of the other Act is amended by adding the following after subsection (1):

(1.1) The employee or officer who holds the position of chief actuary shall be under the direction of the Commission in the performance of the chief actuary’s functions under section 65.3 of the Employment Insurance Act.

(b) the other Act is amended by adding the following after section 28:

28.1 Despite section 28, the Commission may, as it considers necessary for the purpose of assisting it in setting the premium rate under section 66 of the Employment Insurance Act, contract for the services of persons who have specialized knowledge and may fix and pay the remuneration and expenses of those persons.

(c) subsection 65.3(1) of the Employment Insurance Act is replaced by the following:

65.3 (1) The chief actuary referred to in section 28 of the Department of Human Resources and Skills Development Act shall determine the premium rate for a year that, in the chief actuary’s opinion, based on the information provided by the Minister of Finance under section 66.2 and taking into account any regulations made under section 69, should generate just enough premium revenue during that year to cover the payments that will be made under subsection 77(1) during that year.

(3) If section 28 of the other Act comes into force before sections 127 and 128 of this Act, then, on the day on which this Act receives royal assent, the heading before section 127 and sections 127 and 128 of this Act are repealed.

PART 20

AMENDMENTS TO THE EMPLOYMENT INSURANCE ACT (PROVINCIAL PLANS)

130. Section 23 of the Employment Insurance Act is amended by adding the following after subsection (3.4):

(3.5) If benefits are payable to a claimant for the reasons set out in this section and any allowances, money or other benefits are payable to the claimant for the same reasons under a provincial law, the benefits payable to the claimant under this Act are to be reduced or eliminated as prescribed.

131. The Act is amended by adding the following after section 153.1:

PART VIII.2

REGULATIONS — PROVINCIAL PLANS

153.2 (1) Despite any other provisions of this Act, if the Government of Canada has entered into an agreement with a province in respect of a provincial law that has the effect of reducing or eliminating special benefits payable as described in subsection 69(2), the Commission may, with the approval of the Governor in Council, for the purposes of implementing the agreement and taking into account the application or effect of the provincial law, make any regulations that it considers necessary, including regulations

(a) respecting the manner in which and the extent to which any provision of this Act or the regulations applies; and

(b) adapting any provision of this Act or the regulations.

(2) The regulations may provide for

(a) the making of any financial adjustments and for the crediting or charging of the amount of any of those adjustments to the Employment Insurance Account, including

(i) refunds of overpayments with respect to employees’ premiums,

(ii) adjustment payments between the prov­ince and the Government of Canada with respect to premiums, and

(iii) reimbursement by the province of benefits paid by the Government of Canada in accordance with any administrative agreement between the province and the Government of Canada;

(b) the exchange of any information obtained under the provincial law or this Act; and

(c) the administration of benefits payable under this Act to persons employed or residing in the province or who have made a claim under the provincial law, and the increase or decrease in the amount of benefits payable and in the number of weeks for which benefits may be paid under this Act to and in respect of those persons.

PART 21