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

Issuance of Permits

Marginal note:Issuance

• 356 (1) Except in the case of an application designated by order of the Governor in Council under section 360, the Commission must, on application to it and without holding a public hearing, issue a permit authorizing the exportation of electricity.

• Marginal note:Information

  (2) The application must be accompanied by any information prescribed by regulation.

Marginal note:Publication

• 357 (1) The applicant must cause a notice of the application to be published in the Canada Gazette and in any other publication that the Commission considers appropriate.

• Marginal note:Waiver

  (2) The Commission may waive the requirement set out in subsection (1) if it considers that there is a critical shortage of electricity outside Canada caused by terrorist activity, as defined in subsection 83.01(1) of the Criminal Code.

Marginal note:Further information

358 The Commission may, within a reasonable time after the publication of the notice, require the applicant to provide any additional information that the Commission considers necessary to determine whether to make a recommendation under section 359.

Marginal note:Delay of issuance

• 359 (1) The Commission may make a recommendation to the Minister, which it must make public, that an application for exportation of electricity be designated by order of the Governor in Council under section 360 and may delay issuing a permit during any period that is necessary for the purpose of making such an order.

• Marginal note:Criteria

  (2) In determining whether to make a recommendation, the Commission must seek to avoid the duplication of measures taken in respect of the exportation by the applicant and the government of the province from which the electricity is to be exported and must take into account

  • (a) the effect of the exportation of the electricity on provinces other than that 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.

Orders

Marginal note:Where licence required

• 360 (1) The Governor in Council may make orders

  • (a) designating an application for exportation of electricity as an application in respect of which section 361 applies; and

  • (b) revoking any permit issued in respect of the exportation.

• Marginal note:Time limit

  (2) No order may be made under subsection (1) more than 45 days after the day on which a permit is issued in respect of the application.

• Marginal note:Effect of order

  (3) If an order is made under subsection (1),

  • (a) a permit must not be issued in respect of the application; and

  • (b) any application in respect of the exportation must be dealt with as an application for a licence.

Issuance of Licences

Marginal note:Issuance

• 361 (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

• 362 (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

363 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

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

Marginal note:Variation or transfer of permits or licences

• 365 (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

• 366 (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

• 367 (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

368 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

• 369 (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

• 370 (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

• 371 (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

• 372 (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.