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Bill C-468

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2nd Session, 39th Parliament,
56 Elizabeth II, 2007
house of commons of canada
BILL C-468
An Act to amend the Canadian Environmental Protection Act, 1999, the Energy Efficiency Act and the Motor Vehicle Fuel Consumption Standards Act (Canada’s Clean Air and Climate Change Act)
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
SHORT TITLE
Short title
1. This Act may be cited as Canada's Clean Air and Climate Change Act.
PART 1
1999, c. 33
AMENDMENTS TO THE CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999
2. (1) The preamble of the Canadian Environmental Protection Act, 1999 is amended by adding the following before the first paragraph:
Preamble
Whereas the Government of Canada is committed to having a national carbon budget;
Whereas the Government of Canada recognizes that air pollution and greenhouse gases constitute a risk to the environment and its biological diversity and to human health, and are matters of national and international concern which cannot be contained within geographic boundaries;
Whereas the Government of Canada recognizes that air pollution and greenhouse gases are matters within the jurisdiction of both the Government of Canada and the governments of the provinces;
Whereas the Government of Canada recognizes that climate change constitutes one of the most serious threats to humanity and to Canada, and poses major risks not only to the environment and the economy, but above all to the health and safety of all people;
Whereas the Government of Canada has an undeniable responsibility to respond to climate change, given that its per capita wealth is among the highest in the world and that some of the most severe impacts of climate change are already being felt in Canada, especially in the Arctic;
Whereas the Government of Canada signed the United Nations Framework Convention on Climate Change which entered into force in 1994, and Parliament ratified in 2002 by a majority vote in the House of Commons and the Senate the Kyoto Protocol which entered into force in 2005 and under which Canada must honour its obligation to reduce its average annual greenhouse gas emissions during the period from 2008 to 2012 to 6% below their level in 1990;
(2) The preamble of the Act is amended by replacing the eighth paragraph with the following:
Whereas the federal regulatory system for toxic substances should be designed to minimize health and environmental risks posed by toxic substances and to encourage the development and use of less hazardous and ultimately non-hazardous substances and technological processes as substitutions for toxic substances;
3. (1) Subsection 3(1) of the Act is amended by adding the following in alphabetical order:
“air”
« air »
“air” includes indoor air.
“air pollutant”
« polluant de l’air »
“air pollutant” means the following substances:
(a) respirable particulate matter less than or equal to 10 microns;
(b) ozone, which has the molecular formula O3;
(c) sulphur dioxide, which has the molecular formula SO2;
(d) nitric oxide, which has the molecular formula NO;
(e) nitrogen dioxide, which has the molecular formula NO2;
(f) volatile organic compounds that participate in atmospheric photochemical reactions;
(g) gaseous ammonia, which has the mo­lecular formula NH3(g);
(h) mercury; and
(i) any other prescribed substance.
“carbon credit”
« crédit carbone »
“carbon credit” means a credit issued pursuant to regulations made under paragraph 94.1(1)(b).
“carbon permit”
« permis d'émissions de carbone »
“carbon permit” means a permit issued pursuant to regulations made under paragraph 94.1(1)(a).
“carbon price”
« prix du carbone »
“carbon price” means the following amount per tonne of carbon dioxide equivalent:
(a) for 2008, $20;
(b) for 2009 and 2010, $25;
(c) for 2011 and 2012, $30; and
(d) for 2013 and after,
(i) an amount equal to or greater than $30 prescribed by the Minister, or
(ii) if no amount is prescribed, the market value for the right to release one tonne of carbon dioxide equivalent.
“domestic offset system”
« système de compensation national »
“domestic offset system” means the system prescribed by regulations made under paragraph 94.1(1)(b).
“greenhouse gas”
« gaz à effet de serre »
“greenhouse gas” means the following substances, as they appear on the List of Toxic Substances in Schedule 1:
(a) carbon dioxide, which has the molecular formula CO2;
(b) methane, which has the molecular formula CH4;
(c) nitrous oxide, which has the molecular formula N2O;
(d) hydrofluorocarbons that have the molec- ular formula CnHxF(2n+2-x) in which 0<n<6;
(e) the following perfluorocarbons:
(i) those that have the molecular formula CnF2n+2 in which 0<n<7, and
(ii) octafluorocyclobutane, which has the molecular formula C4F8;
(f) sulphur hexafluoride, which has the molecular formula SF6; and
(g) any other prescribed substance.
“greenhouse gas emissions trading system”
« système d'échange de droits d'émission de gaz à effet de serre »
“greenhouse gas emissions trading system” means the system prescribed by regulations made under paragraph 94.1(1)(a).
“individual carbon budget”
« budget carbone individuel »
“individual carbon budget” means an individual carbon budget determined by the Minister under subsection 103.02(3).
“individual carbon deficit”
« déficit carbonique individuel »
“individual carbon deficit” means the deficit calculated using the formula prescribed by regulations made under subsection 103.02(5).
“large industrial emitter”
« grand émetteur industriel »
“large industrial emitter” means a person designated by the Minister under subsection 103.05(1).
“national carbon budget”
« budget carbone national »
“national carbon budget” means the national carbon budget determined by the Minister under subsection 103.02(1).
“sectoral carbon budget”
« budget carbone sectoriel »
“sectoral carbon budget” means a sectoral carbon budget determined by the Minister under subsection 103.02(2).
(2) Section 3 of the Act is amended by adding the following after subsection (3):
Product that may release
(4) For the purposes of this Act, a product that may release a substance, including an air pollutant or greenhouse gas, means a product that may do so during a use for which the product was intended.
4. (1) Subsections 10(1) to (9) of the Act are replaced by the following:
Non-application of regulations
10. (1) Except with respect to Her Majesty in right of Canada, the provisions of a regulation made under subsection 93(1) or 103.05(2), paragraph 103.07(2)(b) or subsection 118(1), 140(1), 200(1) or 209(1) or (2) do not apply within the jurisdiction of a government for which there is in force an order, made under subsection (3), declaring that the provisions do not apply within that jurisdiction.
Non-application of regulations
(2) Except with respect to a federal source, the provisions of a regulation made under section 167 or 177 do not apply within the jurisdiction of a government for which there is in force an order, made under subsection (3), declaring that the provisions do not apply within that jurisdiction.
Declaration of equivalent provisions
(3) Subject to subsections (4), (5) and (6), the Governor in Council may, on the recommendation of the Ministers, make an order declaring that the provisions of a regulation made under a provision referred to in subsection (1) or (2) do not apply in an area under the jurisdiction of a government, where the Ministers and the government agree in writing that there are in force by or under the laws applicable to the jurisdiction of the government
(a) provisions, the effects of which will demonstrably provide an equivalent or supe- rior level of protection of the environment and human health based on, amongst other factors, the quantifiable effects of the regulation on the environment and human health and the effective enforcement and compliance of the federal regulation;
(b) provisions, that are similar to sections 17 to 20 for the investigation of alleged offences under environmental legislation of that jurisdiction.
Mechanism
(3.1) An agreement shall include a method of determining whether the terms and conditions of the agreement are being fully met.
Publication of agreements
(4) The Ministers shall publish any agreement referred to in subsection (3) before it is entered into, or give notice of its availability, in the Canada Gazette and in any other manner that the Ministers consider appropriate.
Comments or objections
(5) Within 60 days after the publication of an agreement or notice of its availability under subsection (4), any person may file with the Ministers comments or a notice of objection.
Publication by Ministers of results
(6) After the end of the period of 60 days referred to in subsection (5), the Ministers shall publish in the Canada Gazette and in any other manner that the Ministers consider appropriate a report or a notice of the availability of a report that summarizes how any comments or notices of objection were dealt with.
Publication of final agreements
(7) The Ministers shall publish any agreement referred to in subsection (3) after it is entered into, or give notice of its availability, in the Canada Gazette and in any other manner that the Ministers consider appropriate.
Termination
(8) An agreement made under subsection (3) terminates at the time that is specified in the agreement or by either party giving the other at least three months’ notice.
Revocation of order
(9) The Governor in Council may, on the recommendation of the Ministers, revoke an order made under subsection (3) if the agreement referred to in that subsection terminates or is terminated.
(2) Section 10 of the Act is amended by adding the following after subsection (10):
Regulations
(11) The Governor in Council may, on the recommendation of the Minister, make regulations respecting the circumstances in which and the conditions under which equivalency agreements can be entered into.
5. Section 44 of the Act is amended by adding the following after subsection (4):
Pollution prevention
(5) The Ministers may conduct research and studies relating to the effectiveness of mitigation and control technologies and techniques related to pollution prevention, air pollutants and greenhouse gases.
6. (1) Paragraph 45(a) of the Act is replaced by the following:
(a) conduct research and studies relating to
(i) the role of substances or pollution in illnesses or in health problems,
(ii) the effects on human health from exposure to substances or pollution through the monitoring of biomarkers, and
(iii) mitigation and control technologies and techniques that are related to pollution prevention;
(2) Paragraph 45(c) of the Act is replaced by the following:
(c) distribute available information to inform the public about the effects of substances or pollution on human health.
7. (1) Paragraph 46(1)(g) of the Act is replaced by the following:
(g) fuels that may contribute significantly to air pollution;
(g.1) substances or activities that may contribute to air pollution;
(2) Section 46 of the Act is amended by adding the following after subsection (1):
Verification
(1.1) A notice published under subsection (1) may require that any person described in the notice obtain an independent verification of the information before it is provided.
8. The Act is amended by adding the following after section 53:
Significant area
53.1 (1) The Minister may designate a region as a significant area if in the opinion of the Minister
(a) the region is particularly environmentally vulnerable to the effects of toxic substances; or
(b) a significant volume of toxic substances is released into the environment of the region.
Minister's responsibility
(2) For any significant area designated under subsection (1) or any other area that the Minister considers appropriate, the Minister may
(a) require, by notice published in the Canada Gazette and in any other manner that the Minister considers appropriate, that any person described in that notice provide the Minister with any information that may be in the possession of that person or to which the person may reasonably be expected to have access, for the purpose of learning more about the toxic substances being released into that region; and
(b) identify priorities for research in order to reduce those toxic substances.
Publication
(3) Information provided to the Minister under paragraph (2)(a) shall be published in the national inventory of releases of pollutants under sections 48, 49, 50, 51, 52 and 53.
Saving
(4) Nothing in this section shall prevent either Minister from exercising his or her powers under the Act with respect to a significant area.
9. Subsection 54(4) of the French version of the Act is replaced by the following:
Publication
(4) Il publie les objectifs, directives ou codes de pratique établis au titre du présent article — ou en donne avis — dans la Gazette du Canada et de toute autre façon qu’il estime indiquée.
10. The Act is amended by adding the following after section 63:
Negotiations
Negotiations
63.1 (1) Within 90 days after this section comes into force, the Minister shall enter into negotiations with representatives of provincial and territorial governments, members of aborig-inal, Métis and Inuit communities, and representatives of relevant private sector companies and non-governmental organizations with the objective of creating or designating an inde- pendent agency to be known as the Green Investment Bank of Canada, which is to be responsible for monitoring and regulating the greenhouse gas emissions of large industrial emitters.
Items to be considered
(2) During the course of the negotiations, the Minister and the provincial ministers shall consider
(a) the establishment of a board to govern the affairs of the agency, to be composed of representatives from the Government of Canada, provincial governments, corporations and not-for-profit organizations;
(b) the establishment, for each large industrial emitter, of a green investment account that the agency will hold in trust for each large industrial emitter;
(c) the making of an annual deposit by each large industrial emitter to its green investment account, the amount of the deposit being calculated to take into account the value of the carbon price multiplied by the individual carbon deficit for that large industrial emitter in the preceding calendar year;
(d) the making of a proposal by a large industrial emitter to the agency in respect of a project to reduce future greenhouse gas emissions by the large industrial emitter;
(e) the evaluation by the agency of a proposal referred to in paragraph (d), the administrative requirements and other matters relating to the approval of that proposal, the withdrawal of funds from the green investment account of a large industrial emitter to finance an approved project, and the evaluation of the progress of approved projects;
(f) the criteria to be applied by the agency in deciding whether to approve a proposal referred to in paragraph (d), including criteria to ensure that approval will be granted only if the large industrial emitter can demonstrate to the satisfaction of the agency that the project contemplated by the proposal
(i) will reduce the annual greenhouse gas emissions of the large industrial emitter in an amount that is proportionate to the withdrawal of funds from the green investment account of the large industrial emitter to finance the project,
(ii) will produce annual greenhouse gas emission reductions that would not have occurred in the absence of the project,
(iii) will produce annual greenhouse gas emission reductions that will not be counted by any other person towards the reduction of its individual carbon deficit, and
(iv) will not result in an increase in greenhouse gas emissions or releases of air pollutants;
(g) the establishment of rules governing deposits in and withdrawals from a green investment account, including rules providing for
(i) the promotion of early action to reduce greenhouse gas emissions,
(ii) the reduction and phasing-out of withdrawals from green investment accounts, and
(iii) the transfer of funds out of a green investment account into a green investment fund managed by the agency if those funds have remained in a green investment account for a period of at least two years without being allocated to an approved project;
(h) where funds are transferred out of the green investment account of a large industrial emitter into a green investment fund, the mandatory expenditure by the agency of the funds for the purpose of maximizing verifiable greenhouse gas emission reductions in Canada, with 50% of the funds being allocated toward a building retrofit revolving fund program and the remaining 50% of the funds being invested in greenhouse gas emission reduction projects, with a minimum of 80% of those remaining funds to be spent on projects in the province or territory in which the large industrial emitter is principally situated;
(i) submitting an annual report by the Minister to both Houses of Parliament that shall include a full disclosure of the value of all green investment accounts, a description and valuation of all approved projects and a complete description of the agency’s activities in the preceding calendar year; and
(j) any other matters necessary to implement the measures referred to in paragraphs (a) to (i).
Report on negotiations
(3) The Minister shall table a report on the progress of the negotiations in both Houses of Parliament six months after this section comes into force and every six months thereafter until the conclusion of the negotiations.
11. The Act is amended by adding the following after section 68:
Assessment and action plan
68.1 (1) Within five years after the coming into force of Canada's Clean Air and Climate Change Act, the Minister shall require an assessment of the following substances and an action plan for achieving their substitution:
(a) known or suspected carcinogens identified by the International Agency for Research on Cancer (IARC), and which have not been identified for the assessment under section 74; and
(b) substances of concern identified by the Minister.
Current substance ceases
(2) Where a substance is slated for safe substitution, that substance shall be phased out of use within ten years after this section comes into force.
12. Subsection 69(2.1) of the Act is replaced by the following:
Saving
(2.1) Nothing in subsection (2) shall prevent either Minister or both Ministers from exercising the powers under subsection (1) at any time after the 60th day following the day an offer is made under subsection (2).
2001, c. 34, s. 29(F)
13. (1) Subsection 71(1) of the Act is replaced by the following:
Notice requiring information, samples or testing
71. (1) Either Minister may, for the purpose of assessing whether a substance is toxic or is capable of becoming toxic, or for the purpose of assessing whether to control, or the manner in which to control, a substance, including a substance specified on the List of Toxic Substances in Schedule 1,
(a) publish in the Canada Gazette and in any other manner that the Minister publishing the notice considers appropriate a notice requiring any person who is described in the notice and who is or was within the period specified in the notice engaged in any activity in­volving the substance to notify that Minister that the person is or was during that period engaged in that activity;
(b) publish in the Canada Gazette and in any other manner that the Minister publishing the notice considers appropriate a notice requiring any person who is described in the notice to provide that Minister with any information and samples referred to in subsection (2) that may be in the person’s possession or to which the person may reasonably be expected to have access; and
(c) subject to section 72, send a written notice to any person who is described in the notice and who is or was within the period specified in the notice engaged in any activity involving the importation or manufacturing of the substance or any product that contains or may release into the environment the substance requiring the person to conduct toxicological and other tests that the Minister sending the notice may specify in the notice and submit the results of the tests to that Minister.
(2) The portion of subsection 71(2) of the English version of the Act before paragraph (a) is replaced by the following:
Contents of notice
(2) A notice published under paragraph (1)(b) may require any information and samples, including
(3) Section 71 of the Act is amended by adding the following after subsection (2):
Contents of notice for paragraph (1)(c)
(2.1) A notice sent under paragraph (1)(c) may specify the methods, test procedures and laboratory practices to be followed for conducting the sampling, analyzing, measuring, monitoring or quantifying of a substance in performing any test referred to in that paragraph.
(4) Subsection 71(4) of the Act is replaced by the following:
Extension of time
(4) Despite subsection (3), the Minister who published or sent the notice may, on request in writing from any person to whom a notice referred to in paragraph (1)(a), (b) or (c) has been directed or sent, extend the time or times within which the person shall comply with the notice.
Manner
(5) The notice may indicate the manner in which the information and samples are to be provided.
14. Section 72 of the Act is replaced by the following:
Exercise of power under paragraph 71(1)(c)
72. Neither Minister may exercise the power under paragraph 71(1)(c) in relation to a substance unless she or he has reason to suspect that the substance is toxic or capable of becoming toxic or it has been determined under this Act that the substance is toxic or capable of becoming toxic.
15. (1) Paragraphs 93(1)(f) and (g) of the Act are replaced by the following:
(f) the purposes for which the substance or a product that contains or may release it into the environment may be imported, manufactured, processed, used, offered for sale or sold;
(g) the manner in which and conditions under which the substance or a product that contains or may release it into the environment may be imported, manufactured, processed or used;
(2) Paragraphs 93(1)(l) to (r) of the Act are replaced by the following:
(l) the total, partial or conditional prohibition of the manufacture, use, processing, sale, offering for sale, import or export of the substance or a product that contains or may release it into the environment;
(m) the total, partial or conditional prohibition of the import or export of a product that is intended to contain the substance;
(n) the quantity or concentration of the substance that may be contained in or released from any product manufactured, imported, exported, offered for sale or sold in Canada;
(o) the manner in which, conditions under which and the purposes for which the substance or a product that contains or may release it into the environment may be advertised or offered for sale;
(p) the manner in which and conditions under which the substance or a product that contains or may release it into the environment may be stored, displayed, handled, transported or offered for transport;
(q) the packaging and labelling of the substance or a product that contains or may release it into the environment;
(r) the manner, conditions, places and method of disposal of the substance or a product that contains or may release it into the environment, including standards for the construction, maintenance and inspection of disposal sites;
(3) Subsection 93(1) of the Act is amended by striking out the word “and” at the end of paragraph (x) and by adding the following after paragraph (x):
(x.1) the monitoring of the substance and the reporting to either Minister of the effects on the environment and human health from releases into the environment of the substances; and
16. The Act is amended by adding the following after section 94:
Regulations
Compulsory regulations
94.1 (1) The Governor in Council shall make regulations
(a) prescribing the creation of a greenhouse gas emissions trading system that includes the requirement for, and the issuing and trading of, transferable carbon permits for the release of any greenhouse gas by large industrial emitters; and
(b) prescribing the creation of a domestic offset system that includes the requirement for, and the issuing and trading of, transferable carbon credits for incremental and verifiable annual greenhouse gas emissions reductions to be used to reduce the individual carbon deficit of large industrial emitters.
Optional regulations
(2) The Governor in Council may make regulations
(a) prescribing persons or classes of persons that may or may not own a carbon permit or a carbon credit;
(b) prescribing rules and procedures for trading carbon permits or carbon credits;
(c) linking the greenhouse gas emissions trading system and the domestic offset system with foreign and international greenhouse gas emissions trading systems that establish incremental and verifiable greenhouse gas emissions reductions and are compliant with the Kyoto Protocol to the United Nations Framework Convention on Climate Change, agreed to on December 11, 1997 at Kyoto, Japan, and ratified by Canada on December 17, 2002, as amended from time to time, including the Joint Implementation and the Clean Development Mechanism; and
(d) prescribing the carbon price for 2013 and after as an amount equal to or greater than $30, taking into consideration foreign and international greenhouse gas emissions trading systems.
Conditions
(3) The Governor in Council shall, in regulations made under paragraph (2)(c),
(a) prohibit the use of prescribed hot air credits to reduce the individual carbon deficit of large industrial emitters; and
(b) ensure, until at least 2010, that not more than 25% of the individual carbon deficit of a large industrial emitter is offset by using credits from foreign and international greenhouse gas emissions trading systems.
Maintaining minimum carbon price
(4) If the Governor in Council does not make regulations under paragraph (2)(d), the Governor in Council may limit the quantity of transferable carbon credits it issues to ensure that the carbon price is not less than $30.
17. Subsection 95(7) of the Act is replaced by the following:
Access to property
(7) Any enforcement officer or other person authorized or required to take any measures under subsection (1) or (5) may enter and have access to any place or property that is the location where a release occurs or is likely to occur or any place or property that is reasonably suspected to be affected by the release, and may do any reasonable things that may be necessary in the circumstances.
18. Subsection 98(1) of the French version of the Act is replaced by the following:
Recouvrement des frais par Sa Majesté
98. (1) Sa Majesté du chef du Canada peut recouvrer les frais directs et indirects occasionnés par la prise des mesures prévues au paragraphe 95(5) auprès des intéressés :
a) visés à l’alinéa 95(2)a);
b) visés à l’alinéa 95(2)b) dans la mesure où, sciemment ou par négligence, ils ont causé le rejet ou y ont contribué.
19. (1) The portion of section 99 of the Act before paragraph (a) is replaced by the following:
Remedial measures
99. Where, in respect of a substance or a product that contains or may release it into the environment, there is a contravention of this Part or any regulation made under this Part, the Minister may, in writing,
(2) Subparagraph 99(a)(ii) of the Act is replaced by the following:
(ii) mail a notice as described in subparagraph (i) to every manufacturer, processor, importer, distributor or retailer of the substance or product, or
20. The Act is amended by adding the following after section 103:
PART 5.1
CLIMATE CHANGE ACTION
Purpose
Purpose
103.01 The purpose of this Part is to reduce Canada’s greenhouse gas emissions to below current and historical levels in order to protect the environment and the well-being of all Canadians, especially the vulnerable members of society and Canadians living in the North.
Canada's National Carbon Budget and Other Carbon Budgets
National carbon budget
103.02 (1) For the purposes of this Act, the national carbon budget is
(a) for each year from 2008 to 2012, a budget that corresponds to Canada’s domestic greenhouse gas emissions level in 1990 less 6%;
(b) for 2020, 2035 and 2050, a budget determined by the Minister that is less than the budget for the previous year and that corresponds to Canada’s domestic greenhouse gas emissions level in 1990 less at least
(i) 20% for 2020,
(ii) 35% for 2035, and
(iii) 60% to 80% for 2050; and
(c) for each year from 2013 to 2019, 2021 to 2024 and 2026 to 2049, a budget determined by the Minister that is less than the budget for the previous year.
Sectoral carbon budgets
(2) For the purposes of this Act, the sectoral carbon budgets are portions of the national carbon budget determined by the Minister to be appropriate for each group of persons that the Minister considers is responsible for a large portion of Canada's greenhouse gas emissions.
Individual carbon budgets
(3) For the purposes of this Act, the individual carbon budgets are portions of the applicable sectoral budgets or, where none apply, of the national carbon budget, determined by the Minister for each large industrial emitter and for any other person that the Minister considers is responsible for a portion of Canada's greenhouse gas emissions, taking into account
(a) early action by the person to reduce greenhouse gas emissions between 1990 and the entry into force of this section;
(b) the possibility for the person to transfer its emission reductions from one of its facilities to another and for the person to trade carbon permits and offsets;
(c) the fair treatment of the person as regards the person's economic growth compared with the applicable average sectoral economic growth; and
(d) any other consideration that the Minister deems appropriate.
Minister's obligations
(4) The Minister shall, at least six months before a national carbon budget, a sectoral carbon budget or an individual carbon budget applies,
(a) determine the national carbon budget, the sectoral carbon budget or the individual carbon budget that the Minister is to determine in accordance with this section; and
(b) publish the budget or give notice of it in the Canada Gazette and in any other manner that the Minister considers appropriate.
Regulations to determine individual carbon deficit
(5) The Minister shall make regulations respecting the calculations to be used to determine the individual carbon deficit of a person, which shall be based on the number of tonnes of carbon dioxide equivalent emitted by the person in a year that is in excess of the individual carbon budget of the person for that year.
Carbon permit
(6) The Minister shall issue, to a person that requires a carbon permit pursuant to regulations made under paragraph 94.1(1)(a), a carbon permit to release an amount of greenhouse gas equivalent to the individual carbon budget of the person.
Climate Change Plan
Climate Change Plan
103.03 (1) Not later than May 31 in each year, from 2013 until 2050, the Minister shall prepare a Climate Change Plan that includes
(a) a description of the measures to be taken under this Act and any other Act to ensure that Canada's domestic greenhouse gas emissions are equal to or less than the national carbon budget, including measures respecting
(i) regulated emission limits and perform-ance standards,
(ii) market-based mechanisms such as emissions trading or offsets,
(iii) spending or fiscal measures or incentives,
(iv) a just transition for workers affected by greenhouse gas emission reductions, and
(v) cooperative measures or agreements with provinces, territories or other governments;
(b) for each measure referred to in paragraph (a),
(i) the date on which it will come into effect, and
(ii) the amount of greenhouse gas emission reductions that have resulted or are expected to result for each year from 2013 to 2050, compared to the levels in the most recently available emission inventory for Canada;
(c) the projected greenhouse gas emission level in Canada for each year from 2013 to 2050, taking into account the measures referred to in paragraph (a), and a comparison of those levels with any international commitments and obligations that the government of Canada may have undertaken to fulfil;
(d) an equitable distribution of greenhouse gas emission reduction levels among the sectors of the economy that contribute to greenhouse gas emissions;
(e) a report describing the implementation of the Climate Change Plan for the previous calendar year; and
(f) a statement indicating whether each measure proposed in the Climate Change Plan for the previous calendar year has been implemented by the date projected in the Plan and, if not, an explanation of the reason why the measure was not implemented and how that failure has been or will be redressed.
Tabling
(2) The Minister shall table each Climate Change Plan in each House of Parliament by the day set out in subsection (1) or on any of the first three days on which that House is sitting after that day.
Methodology for estimating and auditing
103.04 Within six months after the coming into force of this section, the Minister shall, in consultation with other departments, agencies, governments and environmental organizations, develop a reliable methodology for estimating and auditing annual anthropogenic greenhouse gas emissions for Canada as a whole and for each economic sector and large industrial emitter.
Large Industrial Emitters
Designation
103.05 (1) The Minister shall, in consultation with the Governor in Council, designate as “large industrial emitters” persons that the Minister considers are particularly responsible for a large portion of Canada’s greenhouse gas emissions, namely,
(a) persons that are part of the electricity generation sector, including persons that use fossil fuels to produce electricity;
(b) persons that are part of the upstream oil and gas sector, including persons that produce and transport fossil fuels but excluding petroleum refiners and distributors of natural gas to end users; and
(c) persons that are part of energy-intensive industries, including persons that use energy derived from fossil fuels, petroleum refiners and distributors of natural gas to end users.
Sectoral carbon budget
(2) The Minister shall set, for each sector or industry referred to in paragraphs (1)(a) to (c), a sectoral carbon budget under subsection 103.02(2) the sum of which, for each year from 2008 to 2012, shall equal the emissions level for the sector in 1990 less 6%.
PART 5.1.1
GREENHOUSE GASES
Territorial Approach
Application
103.051 (1) Subject to subsections (2), (3) and (4), the Governor in Council may, on the recommendation of the Ministers, make an order declaring that the provisions of an Act or a regulation that relate to greenhouse gases do not apply in an area under the jurisdiction of a government, where the Green Investment Bank of Canada determines by notice in writing, on request from a province, that there are in force by or under the laws applicable to the jurisdiction of the government
(a) provisions respecting the reduction of greenhouse gas emissions the effect of which is equivalent to the reductions required by the national carbon budget and described in section 103.02; and
(b) provisions that are similar to sections 17 to 20 for the investigation of alleged offences under environmental legislation of that jurisdiction.
Notice
(2) The Green Investment Bank of Canada shall publish a notice referred to in subsection (1) before it is issued, or give notice of its availability, in the Canada Gazette and in any other manner that the Bank considers appropriate.
Comments or notice of objection
(3) Within 60 days after publishing the notice or giving notice of its availability under subsection (2), any person may file with the Green Investment Bank of Canada comments or a notice of objection.
Report or notice
(4) After the end of the period of 60 days referred to in subsection (3), the Green Investment Bank of Canada shall publish in the Canada Gazette and in any other manner that the Bank considers appropriate a report or a notice of the availability of a report that summarizes how any comments or notices of objection were dealt with.
Notice
(5) The Green Investment Bank of Canada shall publish any notice referred to in subsection (1) after it is issued, or give notice of its availability, in the Canada Gazette and in any other manner that the Bank considers appropriate.
Revocation of a notice
(6) The Green Investment Bank of Canada may, by giving at least three months' notice, revoke a notice referred to in subsection (1)
(a) on request from one of the parties to the agreement; or
(b) on becoming aware that the conditions set out in subsection (1) are no longer satisfied.
Revocation of an order
(7) The Governor in Council may, on the recommendation of the Ministers, revoke an order made under subsection (1) if the notice referred to in that subsection is revoked under subsection (6).
PART 5.2
AMBIENT AIR QUALITY STANDARDS AND AIR EMISSIONS STANDARDS
Purpose
Purpose
103.06 The purpose of this Part is to protect the health of Canadians and improve the environment by addressing the anthropogenic deterioration of air quality.
Standards
Ambient air quality standards
103.07 (1) For the purpose of carrying out the mandate to promote air quality, the Minister shall issue ambient air quality standards in respect of each air pollutant within six months after the coming into force of this section.
Air emissions standards
(2) The Minister shall, within one year after the coming into force of this section,
(a) geographically divide Canada into zones for the purpose of setting air emissions standards; and
(b) issue, in respect of each air pollutant, air emissions standards that shall apply in all zones in accordance with subsection (4).
Publication of standards
(3) The Minister shall publish the ambient air quality standards and the air emissions stand-ards issued under this section, or give notice of them, in the Canada Gazette and in any other manner that the Minister considers appropriate.
Standard not met
(4) If an ambient air quality standard for a particular air pollutant is not met for a particular zone over a six month period, the air emissions standards shall apply to each industrial emissions facility in that zone.
Exemption
(5) The Minister may, by order, grant an exemption from an air emissions standard for a particular zone or a particular industrial emissions facility if severe economic hardship would result from meeting the standard.
Exemption period
(6) An exemption granted under this section shall apply for a maximum of two years.
Publication
(7) Upon granting an exemption, the Minister shall publish the reasons for the exemption in a public registry.
Subsequent exemption
(8) A subsequent exemption may be granted only if it can be demonstrated that there has been significant progress within the zone or industrial emissions facility in respect of the overall level of emissions of the air pollutant that is subject to the exemption.
Cross-juridictional pollution
(9) In the event that the primary source of air pollution in a particular zone is a source outside the zone’s province, the Governor in Council shall formally notify the outside jurisdiction and attempt to address the cross-jurisdictional pollution.
Five-year review
(10) The Minister shall review the ambient air quality standards and the air emissions standards at least every five years to ensure their consistency with best practices and international standards.
Report
(11) The Minister shall, within 60 days after the end of each fiscal year, prepare and cause to be laid before each House of Parliament a report for that year on
(a) air pollution and air quality, including the attainment of the ambient air quality stand-ards and the air emissions standards for each zone;
(b) the effectiveness of measures taken by the Government of Canada and other governments to attain the standards; and
(c) the measures that the Minister will take to assist in attaining those standards.
21. The Act is amended by adding the following after section 138:
Information Gathering
Notice requiring testing
138.1 (1) For the purpose of assessing whether to control, or the manner in which to control, a fuel or an element, component or additive in a fuel, the Minister of Health may send a written notice to any person who is described in the notice and who is or was within the period specified in the notice engaged in any activity involving the importation or manufacturing of the fuel or element, component or additive requiring the person to conduct any research and studies on the effects of the fuel or element, component or additive, including the effects of their combustion, on human life or health and submit the results to the Minister of Health.
Contents of notice
(2) A notice sent under subsection (1) may specify the methods, test procedures and laboratory practices to be followed for conducting the sampling, analyzing, measuring, monitoring or quantifying of a fuel or an element, component or additive in a fuel in performing any research and studies referred to in that subsection.
Compliance with notice
(3) Every person to whom a notice referred to in subsection (1) is sent shall comply with the notice within the time specified in the notice.
Extension of time
(4) Despite subsection (3), the Minister of Health may, on request in writing from any person to whom a notice referred to in subsection (1) has been sent, extend the time or times within which the person shall comply with the notice.
Manner
(5) The notice may indicate the manner in which the information is to be provided.
Requirement to retain information
(6) Any person required to provide the Minister of Health with information under this section shall keep copies of the required information, together with any calculations, measurements and other data on which the information is based, for a period of seven years from the date the information was provided.
22. Paragraphs 139(2)(b) to (d) of the Act are replaced by the following:
(b) subject to the regulations, the fuel is produced or sold for export and there is written evidence establishing that the fuel will be exported;
(c) subject to the regulations, the fuel is being produced or imported and there is written evidence establishing that the fuel will meet the requirements of subsection (1) before the fuel is used or sold;
(d) subject to the regulations, the fuel is being imported in a fuel tank that supplies the engine of a conveyance that is used for transportation by water, land or air; or
(e) subject to the regulations, the total quantity of fuel produced or imported by that person is less than 400 cubic meters per year.
23. (1) Subsection 140(1) of the Act is amended by adding the following after paragraph (c):
(c.1) the manner in which and conditions under which fuels may be blended;
(2) Paragraph 140(1)(e) of the Act is replaced by the following:
(e) the keeping of books and records by persons who produce, sell, import or blend fuel;
(3) The portion of paragraph 140(1)(g) of the Act before subparagraph (i) is replaced by the following:
(g) the submission by persons who produce, sell, import or blend fuel of information regarding
(4) Subparagraph 140(1)(g)(iii) of the Act is replaced by the following:
(iii) the adverse effects from the use of the fuel, or any additive contained in the fuel, on the environment, on human life or health, on combustion technology and on emission control equipment, and
(5) Subsection 140(1) of the Act is amended by striking out the word “and” at the end of paragraph (i), by adding the word “and” at the end of paragraph (j) and by adding the following after paragraph (j):
(k) the submission of reports on the quantity of fuel produced or sold for export.
(6) Subsection 140(3) of the Act is replaced by the following:
Inoperability
(3) A regulation made under subsection (1) may make paragraphs 139(2)(b) to (e) inoperable in respect of the regulation.
Exemption
(3.1) Regulations made under subsection (1) may exempt from the provisions of a regulation certain fuels based on their use or conditions of use.
24. Paragraph 143(b) of the Act is replaced by the following:
(b) the fuel conforms to the requirements for that fuel provided for by regulations made under section 145 and any requirements that are applicable to that fuel and that may be provided for by regulations made under subsection 93(1), paragraph 103.07(2)(b) or subsection 140(1);
25. Section 146 of the Act is replaced by the following:
Variations
Variations in fuels
146. A regulation made under this Division may distinguish among fuels according to their manufacturing process, commercial designation, feedstocks, source, physical or chemical properties, class, use, conditions of use or place or time of year of use.
26. The portion of section 195 of the Act before paragraph (a) is replaced by the following:
Research
195. Despite subsection 36(3) of the Fisheries Act, subsection 123(1) and regulations made under paragraphs 93(1)(a), (b), (c) and (d), 103.07(2)(b) and 209(2)(a), (b), (c) and (d), the Minister may
27. Paragraph 199(1)(a) of the Act is replaced by the following:
(a) a substance or group of substances on the List of Toxic Substances in Schedule 1 or an air pollutant or greenhouse gas; or
28. Paragraphs 218(1)(a) and (b) of the Act are replaced by the following:
(a) there can be found in the place a substance to which this Act applies or a product that contains or may release such a substance into the environment;
(b) a fuel to which this Act applies is being or has been produced or blended, or can be found, in the place;
29. Section 272 of the Act is amended by adding the following after subsection (2):
Penalty
(2.1) Despite subsection (2), every person who fails to remit a tradeable unit to the Minister, and in so doing commits an offence under subsection (1), is liable
(a) on conviction on indictment, to the prescribed fine, if applicable, or to imprisonment for a term of not more than three years, or to both; and
(b) on summary conviction, to the prescribed fine, if applicable, or to imprisonment for a term of not more than six months, or to both.
30. The Act is amended by adding the following after section 277:
Environmental Damages Fund
277.1 Subject to regulations made under section 278, all fines received by the Receiver General in respect of the commission of an offence under this Act or the execution of an order in relation to this Act shall be credited to the Environmental Damages Fund, an account in the accounts of Canada.
31. The Act is amended by adding the following after section 278:
Regulations
278.01 The Governor in Council may, in the exercise of a regulation-making power under section 326, make regulations prescribing the method of calculating the fine in respect of the offence referred to in subsection 272(2.1), including establishing a minimum and maximum amount payable for each tradeable unit that is not remitted to the Minister.
32. Paragraph 310(2)(b) of the Act is replaced by the following:
(b) shall prescribe the fine to be paid or the method of calculating the fine; and
33. The portion of section 325 of the Act before paragraph (a) is replaced by the following:
Regulations for systems relating to deposits and refunds
325. The Governor in Council may, in the exercise of a regulation-making power under subsection 93(1) or 103.05(2), paragraph 103.07(2)(b), or section 118 or 209, make regulations respecting systems relating to deposits and refunds, including, but not limited to, regulations providing for, or imposing requirements respecting,
34. The portion of section 326 of the Act before paragraph (c) is replaced by the following:
Regulations for tradeable units systems
326. The Governor in Council may, in the exercise of a regulation-making power under subsection 93(1) or section 118, 140, 167, 177 or 209, make regulations respecting systems relating to tradeable units, including regulations providing for, or imposing requirements respecting,
(a) a substance, a product that contains or may release a substance into the environment or a work, undertaking, activity or source in relation to which the system is established;
(b) the methods and procedures for conducting the sampling, analyzing, testing, measuring, monitoring or quantifying under the system;
35. Subsection 330(3.1) of the Act is replaced by the following:
Variation
(3.1) A regulation made under subsection  93(1) or section 140, 167, 177 or 326 may be made applicable in only a part or parts of Canada, including any province, in order to protect the environment, its biological diversity or human health or to achieve national consistency in environmental quality.
Variation
(3.2) A regulation made under subsection 93(1) or section 167, 177 or 326 may distinguish among persons, works, undertakings or activities according to any factors that, in the opinion of the Governor in Council, will allow for the making of a regulation that provides for satisfactory protection of the environment or human life or health, including
(a) quantities of releases;
(b) production capacity;
(c) technology or techniques used; and
(d) in the case of works or undertakings, the date of commencement of their operation or the date on which any major alterations are completed.
Limitation of Part 7
(3.3) Nothing in Part 7 shall be construed so as to prevent the making of regulations under Part 5 or 5.1.
2004, c. 15, s. 31
36. Subsection 332(1) of the Act is replaced by the following:
Publication of proposed orders and regulations
332. (1) The Minister shall publish in the Canada Gazette a copy of every order, regulation or instrument proposed to be made by the Minister or the Governor in Council under subsection 6(4), 10(11), 65(2), 67(1), 81(7), 89(1) or 90(1) or (2), section 92.1, subsection 93(1), section 97, 100 or 102, subsection 103.05(2), paragraph 103.07(2)(b), subsection 106(7), 114(1), 115(1), 118(1) or 130(4), section 135, subsection 140(1), 145(1), 156(1) or 160(1), section 167, 177, 191 or 200, subsection 209(1), section 210, 242, 278, 278.01, 309, 310, 319, 325, 326, 327 or 328 or subsection 330(4).
37. Section 333 of the Act is amended by adding the following after subsection (2):
Establishment of board of review
(2.1) Where a person or government files with the Minister, within the time specified, a notice of objection under subsection 332(2) with respect to regulations proposed to be made under subsection 10(11) the Minister may establish a board of review to inquire into the matter.
PART 2
1992, c. 36
AMENDMENTS TO THE ENERGY EFFICIENCY ACT
38. The Energy Efficiency Act is amended by replacing, before section 1, the words “Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:” with the following:
Preamble
WHEREAS the Government of Canada is committed to ensuring sustained improvement in the efficient use of energy in all sectors of the Canadian economy;
NOW, THEREFORE, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
39. The Act is amended by adding the following after section 2:
Meaning of “class”
2.1 For greater certainty, a reference in this Act to a “class” in relation to energy-using products includes classes based on common energy-consuming characteristics, the intended use of the products or the conditions under which the products are normally used.
40. Subsection 4(1) of the Act is replaced by the following:
Interprovincial trade and importation
4. (1) No dealer shall, for the purpose of sale or lease, ship an energy-using product from one province to another province, or import an energy-using product into Canada, unless
(a) the product complies with the energy efficiency standard; and
(b) the product or its package is labelled in accordance with the regulations, if any.
41. Section 5 of the Act is replaced by the following:
Information provided by dealers
5. (1) Every dealer who ships or imports energy-using products as described in subsection 4(1) shall provide to the Minister, in the prescribed form and manner and at the prescribed time, prescribed information respecting those products, including their energy efficiency, their shipment or their importation.
Exceptions
(2) A dealer is not required to provide prescribed information in respect of the energy efficiency of any particular energy-using prod­ucts if the Minister is satisfied that
(a) the information has previously been provided under subsection (1); or
(b) information has previously been provided under subsection (1) in respect of the energy efficiency of comparable energy-using prod­ucts that differ from those products only in a manner that does not relate to energy efficiency.
42. Sections 7 and 8 of the Act are replaced by the following:
Retention of documents and records
7. Every dealer required by section 5 to provide prescribed information to the Minister shall keep, at the dealer’s place of business or other prescribed place in Canada, documents and records sufficient to enable the Minister to verify the accuracy and completeness of the information provided.
Period of retention
8. Every dealer required by section 7 to keep documents and records shall, unless authorized by the Minister, retain every such document or record until the expiry of six years after the day on which the prescribed information was provided to the Minister.
43. (1) Paragraph 20(1)(a) of the Act is replaced by the following:
(a) prescribing as an energy-using product any manufactured product, or class of manufactured products, that is designed to operate using electricity, oil, natural gas or any other form or source of energy or that affects or controls energy consumption;
(2) Paragraph 20(1)(b) of the English version of the Act is replaced by the following:
(b) prescribing energy efficiency standards for energy-using products or classes of energy-using products;
(3) Paragraph 20(1)(c) of the Act is replaced by the following:
(c) respecting the labelling of energy-using products or their packages, or classes of energy-using products or their packages;
(4) Section 20 of the Act is amended by adding the following after subsection (2):
Energy efficiency standards
(3) Within four years after the day on which this subsection comes into force, the Governor in Council shall, in consultation with the provinces and territories, make regulations establishing energy efficiency standards for all energy-using products the use of which has a significant or an increasing impact on energy consumption in Canada.
Review
(4) The standards referred to in subsection (3) shall be reviewed by the Governor in Council at least once in every three years to ensure that the energy efficiency standards provided for by the standards are at least equivalent to the levels set by the most stringent standards applicable in other jurisdictions in North America.
PART 3
R.S., c. M-9
AMENDMENTS TO THE MOTOR VEHICLE FUEL CONSUMPTION STANDARDS ACT
44. The Motor Vehicle Fuel Consumption Standards Act is amended by adding, after the long title, the following:
Preamble
WHEREAS the Government of Canada is committed to a clean environment, healthy Canadians, and the reduction of domestic greenhouse gas emissions;
AND WHEREAS the Government of Canada is committed to having fuel consumption standards that meet or exceed international best practices;
NOW, THEREFORE, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
45. Section 3 of the Act is replaced by the following:
Fuel consumption standard
3. (1) The Governor in Council shall make regulations prescribing, for the purposes of section 11, a fuel consumption standard that meets or exceeds international best practices for any prescribed class of motor vehicle for any year.
Method of establishing standard
(2) A regulation made under subsection (1) may prescribe a method of establishing the fuel consumption standard, including one that permits the use of factors that vary from company to company, such as factors related to the number or size of motor vehicles sold in Canada by each company in the year to which the standard applies.
Publication and coming into force
(3) Regulations made under subsection (1) shall be published in the Canada Gazette within one year after the coming into force of this section and shall come into force on the expiry of the existing Memorandum of Understanding between the Government of Canada and the Canadian Automotive Industry Respecting Automobile Greenhouse Gas Emissions.
Benchmarking of standards
(4) Starting in 2011, the fuel consumption standards prescribed under this section shall be benchmarked against leading standards in other jurisdictions considering technical feasibility.
46. Section 5 of the Act is replaced by the following:
Regulations design and development
5. Prior to the publication of a proposed regulation under section 4, the Minister, the Minister of Natural Resources, the Minister of the Environment and the Minister of Industry shall undertake a regulations design and development exercise which includes participation from provinces and territories, labour organizations, environmental organizations, companies and other interested persons.
47. The Act is amended by adding the following after section 22:
Regulations regarding labelling
22.1 (1) The Governor in Council shall develop regulations regarding a fuel efficiency labelling scheme for motor vehicles.
Displaying fuel efficiency rating
(2) Regulations made under subsection (1) shall require all motor vehicles intended for sale in Canada to prominently display a verified fuel efficiency rating that clearly shows the vehicle's performance relative to the best and worst in its class and best and worst overall.
Coming into force of regulations
(3) Regulations made under subsection (1) shall come into force within six months after the coming into force of this section.
48. Section 24 of the Act is replaced by the following:
Entry into a place
24. (1) For the purposes of this Act and the regulations, an inspector may at any reasonable time enter any place if the inspector has reasonable grounds to believe that the place contains
(a) a motor vehicle of a class for which a fuel consumption standard has been prescribed and that is
(i) owned by a company or a consignee of imported motor vehicles, or
(ii) situated on the premises of a company or a consignee of imported motor vehicles;
(b) a component of a motor vehicle of a class for which a fuel consumption standard has been prescribed; or
(c) any record described in section 21.
Powers of inspectors
(2) In carrying out an inspection of a place under this section, an inspector may
(a) examine any motor vehicle, any component of a motor vehicle, any records or any other thing relevant to the administration or enforcement of this Act that is found in the place;
(b) open and examine any package found in that place that the inspector believes on reasonable grounds contains any component of a motor vehicle or any records; and
(c) require any person to produce for inspection any books, reports, test data, control records, shipping bills, bills of lading or other documents or papers that the inspector believes on reasonable grounds contain any information relevant to the administration or enforcement of this Act, and make copies or extracts of them.
Operation of computer system and copying equipment
(3) In carrying out an inspection of a place under this section, an inspector may
(a) use or cause to be used any computer system at the place to examine any data contained in or available to the computer system;
(b) reproduce any record or cause it to be reproduced from the data in the form of a printout or other intelligible output;
(c) take a printout or other output for examination or copying; and
(d) use or cause to be used any copying equipment at the place to make copies of the record.
Dwelling-place
(4) An inspector may not enter a dwelling-place without the consent of its occupant except under the authority of a warrant.
Warrant for inspection of dwelling-place
(5) A justice may issue a warrant authorizing the inspector named in it to carry out an inspection of a dwelling-place subject to any conditions that may be specified in the warrant, and authorizing any other person named in it to accompany the inspector and exercise any power specified in the warrant, if on ex parte application the justice is satisfied by information on oath that
(a) the conditions for entry described in subsection (1) exist in relation to the dwelling-place;
(b) entry to the dwelling-place is necessary for any purpose relating to the administration or enforcement of this Act; and
(c) entry to the dwelling-place has been refused or there are reasonable grounds to believe that entry will be refused.
Assistance to inspectors
(6) The owner or person in charge of a place entered by an inspector pursuant to subsection (1) and every person found in it shall give the inspector all reasonable assistance to enable the inspector to carry out their duties under this Act, and shall furnish the inspector with any information they may reasonably require with respect to the administration or enforcement of this Act.
1994, c. 41, par. 37(1)(r)
49. Subsection 27(2) of the Act is replaced by the following:
Certain exceptions
(2) Information obtained under this Act may be communicated, disclosed or made available for the purposes of the administration or enforcement of this Act or legal proceedings related to it and may be communicated, disclosed or made available to the Minister of Natural Resources.
1994, c. 41, s. 37
50. Section 39 of the Act is replaced by the following:
Coming into force
39. This Act comes into force 30 days after the Bill introduced in the 2nd session of the 39th Parliament and entitled An Act to amend the Canadian Environmental Protection Act, 1999, the Energy Efficiency Act and the Motor Vehicle Fuel Consumption Standards Act (Canada's Clean Air and Climate Change Act) receives royal assent.
COMING INTO FORCE
Coming into force
51. This Act comes into force 30 days after the day on which it receives royal assent.
Published under authority of the Speaker of the House of Commons
Available from:
Publishing and Depository Services
Public Works and Government Services Canada