Canadian Energy Law : Lawyers & Attorneys for Environmental Energy Law

Patrick Duffy

On October 19, 2006, the federal government introduced Bill C-30, Canada's Clean Air Act, for first reading in Parliament. The proposed legislation sets the legislative framework for implementing what the government refers to as "an integrated, nationally consistent approach to reducing emissions of air pollutants and greenhouse gases."

In the Notice of Intent that accompanies Bill C-30, the federal government has stated that it will adopt fixed caps for air pollutants and is committed to achieving an absolute reduction in greenhouse gases emissions of between 45% and 65% from 2003 levels by 2050. The federal government will ask the National Round Table on the Environment and the Economy (NRTEE) for advice on the specific emission-reduction targets to be selected and scenarios for how the target could be achieved.

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Glenn Zacher

On October 2, 2006, the Ontario Energy Board released its Report with Respect to Decision-Making Processes at the OEB, a document that is bound to stir debate. The report was prepared pursuant to the OEB's "efficiency agenda" and aims to reform the Board's adjudicative decision-making processes.

The Board states that the purpose of the reforms is to ensure that the Board's decision-making processes are transparent and open, while at the same time being "more focused on relevant issues, timely and results oriented." The Report proposes reforms in four areas:

• adjudicative hearings;
• pre-hearing processes;
• role of staff; and
• role of parties.

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The Ontario government has revived the transfer tax exemption for transfers of electricity assets within the public sector. The move is designed to encourage consolidations among municipal electrical utilities. To qualify, the transfer must be made to a municipal corporation, a municipal electricity utility, Hydro One Inc. or Ontario Power Generation Inc. or a subsidiary of either of them, that is exempt from federal income tax under subsection 149 (1) of the Income Tax Act (Canada).

The exemption applies to transfers made after October 16, 2006 where an application for approval is made to the Ontario Energy Board before October 17, 2008 and a written agreement to make the transfer is complete before October 17, 2008 and is not materially changed after that date.

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