CC30 Committee Meeting

The Legislative Committee on Bill C-30 met in a televised session at 9:00 a.m. this day, in Room 253-D, Centre Block, the Chair, Laurie Hawn, presiding.

The Committee resumed its clause-by-clause study of the Bill.

On new Clause 8.1,

“8.1 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, the region

(a) is particularly environmentally vulnerable to the effects of toxic substances; or

(b) generates a significant volume of toxic substances released into the environment.

(2) Following the designation of a region as a “significant area” under subsection (1), the Minister may

(a) establish information-gathering requirements under section 46 for particular substances released in that region; and

(b) identify priorities for research to reduce particular substances.

(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.”

Debate arose thereon.

After debate, by unanimous consent, the amendment was withdrawn.

“8.1 The Act is amended by adding the following after section 53:

53.1 (1) The Minister may, after consulting with affected provinces, territories and first nations, 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.

(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 purposes 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.

(3) Information provided to the Minister under paragraph (2)(a) shall be published in the national inventory of releases of pollutants under section 48.

(4) Nothing in this section shall prevent either Minister from exercising his or her powers under the Act with respect to a significant area.”

Nathan Cullen moved, — That the amendment be amended by deleting the words “, after consulting with affected provinces, territories and first nations, ”

After debate, the question was put on the subamendment of Nathan Cullen and it was agreed to, by a show of hands: YEAS: 10; NAYS: 2.

By unanimous consent, on motion of Nathan Cullen, it was agreed, — That the amendment be amended by replacing, in subsection 3, the words "section 48” with the following:

“sections 48, 49, 50, 51, 52 and 53”

The question was put on the amendment of Brian Jean, as amended, and it was agreed to, by a show of hands: YEAS: 10; NAYS: 2.

Clause 9 carried by a show of hands: YEAS: 12; NAYS: 0.

On Clause 10,

“(1.1) The Minister may not publish the notice referred to in subsection (1) if the notice is directed at a person or class of persons in a province in respect of which a notice referred to in subsection 10.1(1) is issued dealing with the same substances as the notice referred to in subsection (1).”

Debate arose thereon.

By unanimous consent, the amendment was allowed to stand.

By unanimous consent, Clause 10 was allowed to stand.

On new Clause 10.1,

“10.1 The Act is amended by adding the following after section 64:

64.1 (1) For greater certainty, greenhouse gases are subject to specified reductions, over certain periods of time, relating to persons or classes of persons, with specified reporting requirements.

(2) The Governor in Council shall ensure that the Government of Canada honours its commitments under Article 3, paragraph 1, of the Kyoto Protocol, and that medium-term and long-term targets for reducing Canadian greenhouse gases be set at the following levels:

(a) as a medium-term target, to a level that is 25% below the 1990 level by the year 2020; and

(b) as a long-term target, to a level that is 80% below the 1990 level by the year 2050.

(3) The Minister shall, within six months after this Act receives royal assent, and not later than April 30 in each year thereafter, prepare and lay before each House of Parliament a Canadian greenhouse gas emissions target plan for the years 2015, 2020, 2025, 2030, 2035, 2040 and 2045. The plan shall set out

(a) a comprehensive and detailed program to reduce greenhouse gas emissions in Canada to the levels specified in subsection 2;

(b) the specific actions that the Government of Canada should take in each year of the plan;

(c) the scientific, economic and technological evidence and analysis used to establish each greenhouse gas emissions target;

(d) changes in legislation and policy that are required to implement the plan;

(e) the expected reductions in greenhouse gas emissions in Canada estimated to result, from the implementation of the plan, by the year 2012, 2020 and 2050;

(f) the most recent available data on greenhouse gas emissions in Canada;

(g) an explanation of any discrepancy between the actual levels of greenhouse gas emissions and the expected reductions set out in previous plans; and

(h) recommendations for correcting any such discrepancy.

(4) The Minister shall require that, during the period from January 1, 2008 to December 31, 2012, emissions of greenhouse gases from the thermal electricity generating sector, the upstream oil and gas sector and the energy consuming sector, respectively, not exceed a level that is 6% below their 1990 emission levels.

(5) The Ministers shall make regulations such that key industrial sectors – including fossil-fuel fired electricity generation, upstream oil and gas, downstream petroleum, base metal smelting, iron and steel, cement forest products and chemicals production – reduce greenhouse gas emissions beginning no later than January 2008.

(6) The Minister may require pollution prevention plans pursuant to section 56.”

Debate arose thereon.

A point of order was raised as to the procedural admissibility of the amendment.

At 9:55 a.m., the sitting was suspended.

At 10:06 a.m., the sitting resumed.

The Chair ruled the proposed amendment admissible.

The Committee resumed consideration of the amendment.

After debate, the question was put on the amendment of Nathan Cullen and it was negatived on the following recorded division: YEAS: Nathan Cullen — 1; NAYS: Bernard Bigras, Rick Dykstra, John Godfrey, Mark Holland, Brian Jean, Marcel Lussier, Fabian Manning, David J. McGuinty, Francis Scarpaleggia, Mark Warawa, Jeff Watson — 11.

At 10:50 a.m., the sitting was suspended.

At 10:56 a.m., the sitting resumed.

Mark Warawa moved, — That the Committee do now adjourn.

The question was put on the motion and it was negatived, by a show of hands: YEAS: 5; NAYS: 7.

At 11:01 a.m., the sitting was suspended.

At 11:11 a.m., the sitting resumed.

“10.1 The Act is amended by adding the following after section 64:

64.1 The Governor in Council may establish a greenhouse gas reduction Transition Fund to provide transition assistance to dislocated workers and communities affected by fuel consumption standard requirements. Transition assistance may take the form of

(a) grants to employers, employer associations and representatives of employees

(i) to provide training, adjustment assistance, and employment services to dislocated workers, and

(ii) to make income-maintenance and needs-related payments to dislocated workers; and

(b) grants to local governments to assist communities in attracting new employers or providing essential local government services.”

Debate arose thereon.

The Chair ruled the proposed amendment inadmissible because it infringed on the financial initiative of the Crown, as provided on page 655 of House of Commons Procedure and Practice.

“10.1 The Act is amended by adding the following after section 68:

68.1 (1) Within five years after the coming into force of Canada's Clean Air Act, the Minister shall require an assessment of the following substances and an action plan for achieving their substitution:

(a) the substances listed in Schedule 1;

(b) known or suspected carcinogens identified by the International Agency for Research on Cancer (IARC); and

(c) substances of concern identified as a result of the Government of Canada's Challenge to Industry and listed in Schedule 1.1.

(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.”

Debate arose thereon.

By unanimous consent, the amendment was allowed to stand.

“10.1 The Act is amended by adding the following after section 63:

NEGOTIATIONS

63.1 (1) Within ninety days after this section comes into force, the Minister shall enter into negotiations with representatives of provincial and territorial governments, members of aboriginal, Métis and Inuit communities, and representatives of relevant private sector companies and non-governmental organizations with the objective of creating or designating an independent 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.

(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 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 industrial fund, the mandatory expenditure by the agency of those funds for the purpose of furthering the progress to reduce greenhouse gas emissions in Canada, a target of 50% of which will go into a building retrofit revolving fund program, the remaining 50% to be invested in greenhouse gas reduction projects with a minimum of 80% of the funds to be spent on projects in the province or territory in which the large industrial emitter is principally situated.

(h)(i) Funds shall be allocated in a manner that maximizes verifiable GHG emission reductions.

(i) 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).

(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.”

Debate arose thereon.

The question was put on the amendment of David J. McGuinty and it was agreed to, by a show of hands: YEAS: 7; NAYS: 5.

Clause 11 carried.

Clause 12 carried.

Clause 13 carried.

After debate, by unanimous consent, Clause 14 was allowed to stand.

On new Clause 14.1,

“14.1 The Act is amended by adding the following after section 94:

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.

(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.

(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.

(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.”

After debate, the question was put on the amendment of David J. McGuinty and it was agreed to, by a show of hands: YEAS: 7; NAYS: 5.

At 11:00 a.m., the Committee adjourned to the call of the Chair.