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Canadian Energy Regulator Act (S.C. 2019, c. 28, s. 10)

Act current to 2022-06-20 and last amended on 2020-07-01. Previous Versions

PART 7Exports and Imports (continued)

DIVISION 2Electricity (continued)

Issuance of Licences

Marginal note:Issuance

  •  (1) The Commission may, subject to the approval of the Governor in Council, issue a licence for the exportation of electricity in relation to which an order made under section 360 is in force.

  • Marginal note:Criteria

    (2) Before issuing a licence, the Commission must take into account

    • (a) the effect of the exportation of the electricity on provinces other than from which the electricity is to be exported;

    • (b) whether the applicant has

      • (i) informed those who have declared an interest in buying electricity for consumption in Canada of the quantities and classes of service available for sale, and

      • (ii) given an opportunity to buy electricity on conditions as favourable as the conditions specified in the application to those who, within a reasonable time after being so informed, demonstrate an intention to buy electricity for consumption in Canada; and

    • (c) any factors that are specified in the regulations.

  • Marginal note:Revocation of permit

    (3) Any permit issued in respect of an application for a permit for the exportation of electricity in relation to which an order made under section 360 is in force and that is not revoked by the order is revoked on the Commission’s deciding not to issue a licence for that exportation.

Conditions of Permits and Licences

Marginal note:Conditions — permits

  •  (1) The Commission may make a permit issued under section 356 subject to any conditions respecting the matters prescribed by the regulations that it considers necessary or in the public interest.

  • Marginal note:Conditions — licences

    (2) The Commission may make a licence issued under section 361 subject to any conditions that it considers appropriate.

Marginal note:Compliance

 Every permit and licence is subject to the condition that the provisions of this Act and its regulations, as well as every order made under this Act, will be complied with.

Marginal note:Period of validity

 The period of validity of a permit or licence must not exceed 30 years.

Marginal note:Variation or transfer of permits or licences

  •  (1) The Commission may, on application or its own initiative, vary a permit or licence issued in respect of the exportation of electricity and may, on application, transfer such a permit or licence.

  • Marginal note:Conditions

    (2) In varying or transferring a permit or licence, the Commission may impose — in addition to or in lieu of any conditions to which the permit or licence was previously subject — any conditions that the Commission considers necessary or appropriate in order to give effect to the purposes and provisions of this Act.

Marginal note:Suspension or revocation of permits or licences

  •  (1) The Commission may, by order, suspend or revoke a permit or licence issued in respect of the exportation of electricity if the holder applies for or consents to the revocation or suspension or the holder has contravened a condition of the permit or licence.

  • Marginal note:Notice

    (2) The Commission must not make an order under subsection (1) for a contravention unless the Commission provides the holder of the permit or licence with notice of the alleged contravention and gives the holder an opportunity to be heard.

Regulations

Marginal note:Regulations — Governor in Council

  •  (1) The Governor in Council may make regulations for the purposes of this Division, including regulations

    • (a) prescribing matters in respect of which conditions may be imposed on permits;

    • (b) specifying factors that the Commission must take into account in deciding whether to recommend to the Minister that an application for a permit for the exportation of electricity be designated by order of the Governor in Council under section 360;

    • (c) specifying factors that the Commission must take into account in deciding whether to issue a licence for the exportation of electricity in relation to which an order made under section 360 is in force; and

    • (d) the inspection of any instruments, devices, plant, equipment, books, records or accounts or any other thing used for or in connection with the exportation of electricity.

  • Marginal note:Regulations — Regulator

    (2) The Regulator may make regulations prescribing

    • (a) the information to be provided with applications for permits for the exportation of electricity; and

    • (b) units of measurement and measuring instruments or devices to be used in connection with the exportation of electricity.

DIVISION 3Interprovincial Oil and Gas Trade

Interpretation

Marginal note:Definitions

 The following definitions apply in this Division.

designated area

designated area means any of the following, as referred to in an order made under subsection 369(1),

  • (a) a province;

  • (b) Sable Island; or

  • (c) any area of land, not within a province, that belongs to Her Majesty in right of Canada or in respect of which Her Majesty in right of Canada has the right to dispose of or exploit the natural resources and that is situated in submarine areas in the internal waters of Canada, the territorial sea of Canada or the continental shelf of Canada. (région désignée)

designated oil or gas

designated oil or gas means oil or gas, or both, or any quality or kind of oil or gas, or both, that is the subject of an order made under subsection 369(1). (pétrole ou gaz désigné)

movement

movement, in respect of oil or gas, excludes an exportation. (acheminement)

Control by Regulator

Marginal note:Order in Council

  •  (1) The Governor in Council may, by order, give the supervision and control of the movement of designated oil or gas out of a designated area to the Regulator.

  • Marginal note:Licence required

    (2) While an order made under subsection (1) remains in force, a person must not move designated oil or gas out of the designated area except in accordance with a licence issued under this Division or as authorized under the regulations made under this Division.

Issuance of Licences

Marginal note:Issuance

  •  (1) Subject to the regulations, the Commission may, on any conditions that it may impose, issue a licence to any person permitting the movement of designated oil or gas out of the designated area.

  • Marginal note:Compliance

    (2) Every licence is subject to the conditions that

    • (a) the provisions of this Act and its regulations, as well as every order made under this Act, will be complied with; and

    • (b) the provisions of the Energy Administration Act and its regulations that are applicable to the designated oil or gas in respect of which the licence is issued will be complied with.

Marginal note:Criteria

  •  (1) Before issuing a licence, the Commission must take into account all factors that it considers relevant, including the equitable distribution of designated oil or gas in Canada.

  • Marginal note:Variation, transfer, suspension and revocation of licences

    (2) Sections 348 to 351 apply in respect of a licence issued under this Division.

Regulations

Marginal note:Regulations — Governor in Council

  •  (1) The Governor in Council may make regulations for the purposes of this Division, including regulations

    • (a) respecting the period of validity of licences, the approval required for the issuance of licences, the quantities that may be moved out of the designated area under the authority of a licence and any other conditions to which licences may be subject; and

    • (b) prescribing the inspection of any instruments, devices, plant, equipment, books, records or accounts or any other thing used for or in connection with the movement of designated oil or gas out of the designated area.

  • Marginal note:Regulations — Regulator

    (2) The Regulator may make regulations prescribing

    • (a) the information to be provided by applicants for licences and the procedure to be followed in applying for and issuing licences; and

    • (b) units of measurement and measuring instruments or devices to be used in connection with the movement of designated oil or gas out of the designated area.

DIVISION 4Implementation of Free Trade Agreements

Marginal note:Definitions

 The following definitions apply in this Division.

CCFTA

CCFTA has the same meaning as Agreement as defined in subsection 2(1) of the Canada-Chile Free Trade Agreement Implementation Act. (ALÉCC)

CCRFTA

CCRFTA has the same meaning as Agreement as defined in subsection 2(1) of the Canada — Costa Rica Free Trade Agreement Implementation Act. (ALÉCCR)

CUSMA

CUSMA has the meaning assigned by the definition Agreement in section 2 of the Canada–United States–Mexico Agreement Implementation Act. (ACEUM)

energy goods

energy goods means any goods for the exportation of which a licence or permit issued under this Part or an order made under the regulations is required. (produits énergétiques)

NAFTA

NAFTA[Repealed, 2020, c. 1, s. 208]

Marginal note:Principle

  •  (1) In exercising its powers and performing its duties and functions, the Regulator must give effect to CUSMA, the CCFTA and the CCRFTA.

  • Marginal note:Directions

    (2) The Governor in Council may, either on the recommendation of the Minister made at the request of the Regulator or on the Governor in Council’s own motion, give directions respecting the manner in which the Regulator is to perform the duty imposed on it by subsection (1) or the interpretation to be given to CUSMA, the CCFTA or the CCRFTA by the Regulator for the purposes of this Act.

  • Marginal note:Effect

    (3) A direction issued under subsection (2) is binding on the Regulator from the time it comes into force and, unless it provides otherwise, applies in respect of matters pending before the Regulator at that time.

  • Marginal note:Request of Regulator

    (4) The Regulator may, in order to request the issuance of a direction under subsection (2), suspend the determination of any matter of which it is seized.

Marginal note:Declaration of Governor in Council

 The Governor in Council may, by order, declare that the maintenance or introduction of a restriction on the exportation to Chile or Costa Rica of energy goods or of any quality, kind or class of energy goods is justified under Article C-13 of the CCFTA or Article III.11 of the CCRFTA, as the case may be.

Marginal note:Request for declaration

 If, in the course of determining an application for a licence or permit, or determining whether to make an order, for the exportation to Chile or Costa Rica of energy goods or of any quality, kind or class of energy goods, the Commission considers that the maintenance or introduction of a restriction on that exportation is in the public interest and that subparagraph 1(a), (b) or (c) of Article C-13 of the CCFTA or subparagraph 1(a), (b) or (c) of Article III.11 of the CCRFTA, as the case may be, would apply as a consequence of the restriction, the Commission may, in order to request that the Minister recommend to the Governor in Council that an order be made under section 375 in respect of the relevant energy goods, suspend the determination until not later than 120 days after the day on which the request is made.

Marginal note:Exportation to Chile or Costa Rica

  •  (1) The Commission may neither refuse to issue a licence or permit or make an order nor suspend, revoke or vary a licence, permit or order for the exportation to Chile or Costa Rica of energy goods or of any quality, kind or class of energy goods if that refusal, revocation, suspension or variation would constitute the maintenance or introduction of a restriction on that exportation as a consequence of which subparagraph 1(a), (b) or (c) of Article C-13 of the CCFTA or subparagraph 1(a), (b) or (c) of Article III.11 of the CCRFTA, as the case may be, would apply.

  • Marginal note:Exception

    (2) Subsection (1) does not apply in respect of the exportation to Chile or Costa Rica of any energy goods, or of any quality, kind or class of energy goods, referred to in an order made under section 375 while the order is in force.

  • Marginal note:Application or consent

    (3) Despite subsection (1), the Commission may suspend, revoke or vary a licence, permit or order if the holder of the licence, the holder of the permit or the person named in the order, as the case may be, applies for or consents to the suspension or revocation.

Marginal note:No declaration made

 Despite not being satisfied that the criteria set out in section 345 have been met, the Commission may issue a licence for the exportation to Chile or Costa Rica of any energy goods, or of any quality, kind or class of energy goods, referred to in a request made under section 376 if

  • (a) the Minister declines to recommend to the Governor in Council that an order be made under section 375;

  • (b) the Governor in Council declines to make the order; or

  • (c) no order is made within 120 days after the day on which the request is made.

DIVISION 5Offences and Punishment

Marginal note:Offence and punishment

  •  (1) Every person who contravenes any of the provisions of this Part or the regulations made under this Part is guilty of an offence and liable

    • (a) on summary conviction, to a fine not exceeding $100,000 or to imprisonment for a term not exceeding one year, or to both; or

    • (b) on conviction on indictment, to a fine not exceeding $1,000,000 or to imprisonment for a term not exceeding five years, or to both.

  • Marginal note:Due diligence

    (2) A person is not to be found guilty of an offence under subsection (1) if they establish that they exercised due diligence to prevent the commission of the offence.

  • Marginal note:Officers, directors, agents and mandataries

    (3) If a corporation commits an offence under subsection (1), any officer or director, or agent or mandatary, of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence whether or not the corporation has been prosecuted or convicted.

  • Marginal note:Proof of offence

    (4) In any prosecution for an offence under subsection (1), it is sufficient proof of the offence to show that it was committed by an employee, or an agent or mandatary, of the accused, whether or not the employee, or agent or mandatary, is identified or has been prosecuted for the offence, unless the accused establishes that the offence was committed without the knowledge or consent of the accused and that the accused exercised due diligence to prevent its commission.

  • Marginal note:Continuing offence

    (5) If an offence under subsection (1) is committed on more than one day, it is deemed to be a separate offence for each day on which the offence is committed or continued.

  • Marginal note:Limitation period or prescription

    (6) Proceedings by way of summary conviction in respect of an offence under subsection (1) may be instituted at any time within but not later than one year after the day on which the subject matter of the proceedings arose.

 
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