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.

Preamble

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

Definitions

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:

1. 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
2. as an eligible class for the purposes of the definition "eligible Kyoto unit" in section 2, any class of compliance unit.

Establishment Of Agency

Establishment

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.

Climate Fund

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

Minister responsible

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

Ministerial direction

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

Minister’s power of inquiry

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

Delegation by Minister

(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

Appointment of President

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.

President’s powers

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

Delegation by President

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

Remuneration

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

Head office

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

Appointment of members

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.

Role of advisory board

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

1. 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
2. market conditions relating to eligible domestic credits and eligible Kyoto units.

Representation

(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.

Publication

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

Chairperson

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

Remuneration

(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.

Travel, living and other expenses

(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.

Meetings

(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

Contracts and agreements

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.

Legal proceedings

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.

Procurement process

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

Competitive process — eligible domestic credits

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

Competitive process — eligible Kyoto units

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.

Regulations

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

Advance payment for eligible domestic credits

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

1. the credits are to be created in relation to a project that meets criteria established by the Minister;
2. 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
3. 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.

Credits may be in relation to less than anticipated total

(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.

Credits to be recorded

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.

Contracts with Her Majesty

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

Accident compensation

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

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.

Contents of corporate business plan

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

1. the Agency’s objectives for the next five years;
2. the strategies that the Agency intends to use to achieve its objectives, including operational, financial and human resource strategies;
3. the Agency’s expected performance over that period; and
4. the Agency’s operating and capital budgets for each year of that period.

Audit

Annual audit

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

1. annually audit and provide an opinion to the Agency and the Minister on the financial statements of the Agency; and
2. provide the Minister and the President with copies of reports of audits carried out under this section.

Annual Report

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.

Form and contents

(2) The annual report must include:

1. 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;
2. information about the Agency’s performance with respect to the objectives established in the corporate business plan; and
3. any other information that the Minister may require to be included in it.

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Consequential Amendments

R.S., c. A-1 -- 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 / Agence canadienne pour l’incitation à la réduction des émissions.

R.S., c. F-11 -- 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 / Agence canadienne pour l’incitation à la réduction des émissions .

R.S., c. P-21 -- 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 / Agence canadienne pour l’incitation à la réduction des émissions .

R.S., c. P-35 -- 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 / Agence canadienne pour l’incitation à la réduction des émissions.

R.S., c. P-36 -- 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 / Agence canadienne pour l’incitation à la réduction des émissions

Coordinating Amendments

2003, c. 22

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 / Agence canadienne pour l’incitation à la réduction des émissions.

(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.

2003, c. 22

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:

Accident compensation

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

Order in council

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.

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Learn More about the Canada Emission Reduction Incentives Agency.