Consultation document: equivalency agreement for the control of greenhouse gas emissions from electricity producers in Nova Scotia

2.1 Provisions that are in force by or under the laws of Nova Scotia, and in particular the Environment Act and the Greenhouse Gas Emissions Regulations^Footnote 1 are equivalent to the provisions of the CEPA and the Reduction of Carbon Dioxide Emissions from Coal-Fired Generation of Electricity Regulations^Footnote 2, for the purposes of section 10 of f, by reason of the fact that the following criteria have been met:

1. Emissions Requirements
   
   1. The effect on emissions levels of the limits, determined in tonnes of carbon dioxide equivalent, that are applicable under the Environment Act and the Greenhouse Gas Emissions Regulations are, for the calendar years 2015 to 2019, equivalent to the effect on emissions levels of the limits imposed under the CEPA and the Reduction of Carbon Dioxide Emissions from Coal-Fired Generation of Electricity Regulations.
      
   2. The effect on emissions levels of the limits, determined in tonnes of carbon dioxide equivalent, that will be applicable under the Environment Act and the Greenhouse Gas Emissions Regulations in accordance with section 4 of this Agreement will be, for the calendar years 2020 to 2030, equivalent to the effect on emissions levels of the limits imposed under the CEPA and the Reduction of Carbon Dioxide Emissions from Coal-Fired Generation of Electricity Regulations.
2. Citizens’ Request for Investigations
   
   Sections 115 and 116 of the Environment Act provide a mechanism similar to that provided in sections 17 to 20 of the CEPA whereby an alleged offence will be investigated on the application of citizens, and a report shall be made by an administrator appointed under the Environment Act to the applicants outlining the progress of the investigation and the action, if any, that is or will be taken.
   
3. Sanctions and Enforcement Programs
   
   The penalty and enforcement provisions of the Environment Act are equivalent to the penalty and enforcement provisions in the CEPA.

3.1 The Parties will share information upon request respecting the administration of this Agreement in order to meet each Minister’s respective reporting obligations to Parliament or to the people of Nova Scotia as the case may be. 

3.2 For the administration of this Agreement, Nova Scotia will provide to Canada:

1. written notification of relevant proposed and actual amendments to the Greenhouse Gas Emissions Regulations and any other statutory and/or regulatory provisions relevant to this Agreement;
   
2. annual reports on the quantity of electricity generated by each coal-fired electricity unit in Nova Scotia;
   
3. annual reports and compliance period reports required under section 5 and 6 of the Greenhouse Gas Emissions Regulations;
   
4. copies of the orders issued, amended, or renewed under the Environment Act concerning the Greenhouse Gas Emissions Regulations;
   
5. approvals, including amendments and renewals of approvals; and
   
6. annual statistics on enforcement actions by Nova Scotia concerning the Greenhouse Gas Emission Regulations.

3.3 For the administration of this Agreement, Canada:

1. will provide to Nova Scotia written notification of relevant proposed and actual amendments to the CEPA and the Reduction of Carbon Dioxide Emissions from Coal-Fired Generation of Electricity Regulations as well as any other statutory and/or regulatory provisions relevant to this Agreement; and
   
2. will enter into discussions with Nova Scotia toward a Memorandum of Agreement that would allow Canada to provide Nova Scotia with annual data on the quantity of greenhouse gas emissions from the electricity sector in Nova Scotia collected by the Minister of the Environment under the CEPA.

3.4 Information gathered for the purpose of complying with this Agreement shall be subject to the provisions of the Freedom of Information and Protection of Privacy Act, SNS 1993, c5, and the Access to Information Act, RSC 1985, cA-1.

4.1 As part of this Agreement Nova Scotia agrees to amend its Greenhouse Gas Emissions Regulations to include mandatory caps or limits on greenhouse gas emissions for electricity producers covered under the Greenhouse Gas Emissions Regulations where that cap or limit:

1. for the years 2015 to 2019, is not higher than the cap or limit for that year as currently set out in the Greenhouse Gas Emissions Regulations;
   
2. for the year 2020 is no higher than 7.5 Mt; and
   
3. for the years 2021 to 2030, follows the pathway set out below:
   1. For the calendar years 2021 to 2024, no higher than the cumulative amount of 27.5 Mt;
   2. For the calendar year 2025, no higher than 6 Mt;
   3. For the calendar years 2026 to 2029, no higher than the cumulative amount of 21.5 Mt; and
   4. For the calendar year 2030, no higher than 4.5 Mt.
      
4. These regulations will be in place on or before January 1, 2016.

4.2 Upon the coming-into-force of the amendment referred to in paragraph 4.1, the Minister of the Environment will recommend to the Governor in Council to make an order declaring that the provisions of the Reduction of Carbon Dioxide Emissions from Coal-Fired Generation of Electricity Regulations do not apply in Nova Scotia.

4.3 The parties agree that, should they develop further regulations relating to GHGs and air pollutants affecting the electricity sector in Nova Scotia, they will use their best efforts to conclude an equivalency agreement respecting those regulations.

5.1 This Agreement comes into force on July 1, 2015 provided that the Governor in Council has made an order pursuant to subsection 10(3) of the CEPA declaring that the provisions of the Reduction of Carbon Dioxide Emissions from Coal-Fired Generation of Electricity Regulations do not apply in Nova Scotia.

5.2 This Agreement terminates on December 31, 2019.

5.3 Should both Parties be in compliance with the Agreement when it terminates, the Parties commit to initiate its renewal, provided that the effect on emissions levels of the limits to be imposed pursuant to the Environment Act and the Greenhouse Gas Emissions Regulations for the years 2020 to 2030 is equivalent to or better than the effect on emissions levels that would result from the application of the Reduction of Carbon Dioxide Emissions from Coal-Fired Generation of Electricity Regulations in Nova Scotia during this period.

5.4 Should this Agreement be terminated before December 31, 2019, Canada will ensure that the Reduction of Carbon Dioxide Emissions from Coal-Fired Generation of Electricity Regulations start applying in Nova Scotia with as little disruption as possible in the circumstances, in a manner that takes into consideration the importance of a reliable supply of electricity that does not place an undue economic burden on Nova Scotia.