CC30 Committee Meeting

The Legislative Committee on Bill C-30 met in a televised session at 3:33 p.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.

After debate, by unanimous consent, Clause 15 was allowed to stand.

After debate, Clause 16 carried by a show of hands: YEAS: 11; NAYS: 0.

After debate, Clause 17 carried by a show of hands: YEAS: 12; NAYS: 0.

At 3:43 p.m., the sitting was suspended.

At 3:45 p.m., the sitting resumed.

By unanimous consent, the Committee reverted to Clause 15 previously stood.

After debate, Clause 15 carried by a show of hands: YEAS: 12; NAYS: 0.

On Clause 18,

“following after section 103:

PART 5.1

CLIMATE CHANGE ACTION

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

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.

(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.

(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.

(4) The Minister shall, at least six months before a national, sectoral or individual carbon budget applies,

(a) determine the national, sectoral or 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.

(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.

(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

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 performance 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.

(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.

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

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.

(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

103.051 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.

(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.

(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.

(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.

(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.

(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.

(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

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

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.

(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);

(3) The Minister shall publish the ambient air quality standards and the air emissions standards issued under this section, or give notice of them, in the Canada Gazette and in any other manner that the Minister considers appropriate.

(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.

(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.

(6) An exemption granted under this section shall apply for a maximum of two years.

(7) Upon granting an exemption, the Minister shall publish the reasons for the exemption in a public registry.

(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.

(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.

(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.

(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 standards 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.”

Debate arose thereon.

A point of order was raised regarding the procedural admissibility of the amendment.

Debate arose thereon.

At 4:34 p.m., the sitting was suspended.

At 4:41 p.m., the sitting resumed.

The Chair ruled the amendment admissible.

Whereupon, Brian Jean appealed the decision of the Chair.

The question: "Shall the decision of the Chair be sustained?" was put and the decision was sustained on the following recorded division: YEAS: Bernard Bigras, Nathan Cullen, John Godfrey, Mark Holland, Marcel Lussier, David J. McGuinty, Francis Scarpaleggia — 7; NAYS: Brian Jean, Fabian Manning, Christian Paradis, Mark Warawa, Jeff Watson — 5.

The question was put on the amendment of David J. McGuinty and it was agreed to on the following recorded division: YEAS: Bernard Bigras, Nathan Cullen, John Godfrey, Mark Holland, Marcel Lussier, David J. McGuinty, Francis Scarpaleggia — 7; NAYS: Brian Jean, Fabian Manning, Christian Paradis, Mark Warawa, Jeff Watson — 5.

Clause 18, as amended, carried.

Clause 19 carried.

Clause 20 carried.

Clause 21 carried.

At 5:10 p.m., the sitting was suspended.

At 5:12 p.m., the sitting resumed.

After debate, by unanimous consent, Clause 22 was allowed to stand.

Clause 23 carried.

After debate, by unanimous consent, Clause 24 was allowed to stand.

Clause 25 carried.

Clause 26 carried.

On Clause 27,

“who fails to remit a tradeable unit—other than a tradeable unit in respect of greenhouse gases—to the

Debate arose thereon.

At 5:22 p.m., the Committee adjourned to the call of the Chair.