Highlights

  • The Canadian government extends the Arctic offshore oil and gas activity moratorium until 2028, freezing existing exploration licenses to protect the environment and support Indigenous self-determination.
  • Amendments to the Beef Cattle Research, Market Development and Promotion Levies Order adjust the levy for Quebec residents selling fed cattle.
  • The CRTC renews broadcasting licenses without a public hearing, a decision upheld by the Governor in Council despite a petition alleging procedural errors.
  • Chicken Farmers of Canada sets new production limits for chicken marketing quotas for specific periods in 2024.
  • The Canadian Turkey Marketing Agency updates turkey production quotas for provinces for the 2023-2024 period.
  • Fines for environmental offences under CEPA 1999 are increased to maintain the effectiveness of the Contraventions Regime.
  • The Contraventions Regulations update fine amounts for offences under the Transportation of Dangerous Goods Act, 1992.
  • Employment Equity Regulations are amended to align with the 2021 National Occupational Classification system.
  • A pilot project provides additional Employment Insurance benefits to seasonal workers in specific regions.
  • The Federal Prompt Payment for Construction Work Act and associated regulations aim to ensure timely payments and effective dispute resolution in the construction industry.
  • The Canadian Firearms Marking Regulations’ implementation is deferred to 2025 to allow further stakeholder engagement.
  • Four First Nations are added to the First Nations Fiscal Management Act, enabling access to financial management services.
  • Sanctions are imposed on individuals from Russia, Iran, and Myanmar for human rights violations under the Sergei Magnitsky Law.
  • Provisions of an Act to amend the Canada Business Corporations Act come into force, increasing corporate transparency regarding individuals with significant control.
  • The Federal Prompt Payment for Construction Work Act establishes a prompt payment and adjudication process for federal construction contracts.
  • Certain provisions of the Fall Economic Statement Implementation Act, 2022, come into force, supporting the elimination of interest on student loans.
  • Canada’s Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations are amended to reduce emissions and increase the percentage of zero-emission vehicles by 2035.
  • ISED is authorized to receive national security information under the Security of Canada Information Disclosure Act to support foreign investment reviews.
  • Canada bans the import of Russian diamonds and jewelry to reduce Russia’s revenue from diamond sales.
  • Additional Russian individuals are sanctioned for participating in sham elections in occupied Ukrainian territories.
  • Amendments to the Species at Risk Act reclassify the Monarch butterfly as endangered and add Western Bumble Bee subspecies to the list.
  • Regulatory amendments eliminate interest accrual on Canada Student Loans and Canada Apprentice Loans.
  • The Vessel Construction and Equipment Regulations update Canadian standards for new vessels and align with international conventions.
  • The Vessel Operation Restriction Regulations enhance safety and environmental protection on Canadian waterways with new restrictions and updated exemptions.

Canada Extends Arctic Offshore Oil and Gas Activity Ban Until 2028

The Canadian government has extended the prohibition on oil and gas activities in Arctic offshore waters until December 31, 2028. This extension ensures the continuation of the moratorium initially announced in 2016 and aims to protect the Arctic environment while allowing for a science-based review of the moratorium to be co-developed with Northern partners, including the governments of Yukon, Northwest Territories, Nunavut, and Indigenous organizations.

The extension freezes the terms of 11 existing exploration licenses in the Beaufort Sea, preventing them from expiring during the moratorium. This measure was taken to maintain the rights of license holders and to support the economic development goals of the Arctic and Northern Policy Framework.

The decision to extend the prohibition was made without pre-publication in the Canada Gazette, Part I, due to ongoing engagement with stakeholders and the necessity of the extension to maintain the suspension of oil and gas activities. The extension aligns with international commitments, such as the United States-Canada Joint Arctic Leaders’ Statement, and supports Indigenous rights to self-determination.

The extension is not expected to impose costs on license holders or small businesses, as no near-term or mid-term oil and gas production was planned. The benefits include environmental protection and the preservation of exploration rights. The extension also complies with international strategies and agreements on Arctic protection and Indigenous rights.

A gender-based analysis plus (GBA+) assessment indicated no significant impacts on minority groups, and the extension supports diversity through affirmative action training programs and hiring policies in the oil sector. The performance of the extension will be tracked using federal and territorial census data.

The amendment to extend the prohibition is effective upon registration, and the government will continue to work with Northern partners on a climate and marine science-based review of the moratorium. [Source]

Amendment to Levy for Quebec Fed Cattle in Interprovincial Trade

The Canadian Beef Cattle Research, Market Development and Promotion Agency has amended the Beef Cattle Research, Market Development and Promotion Levies Order. The amendment changes the levy amount to be paid by a resident of Quebec who sells fed cattle through interprovincial trade, setting it at $8.25. This change is made under the authority of the Farm Products Agencies Act and the Canadian Beef Cattle Research, Market Development and Promotion Agency Proclamation. The National Farm Products Council has approved the amendment, confirming its necessity for the implementation of the promotion and research plan. The Order comes into effect on the day it is registered. [Source]

GIC Upholds CRTC’s License Renewal Decision Without Public Hearing

The Canadian Radio-television and Telecommunications Commission (CRTC) renewed broadcasting licenses for various television and distribution services until August 31, 2026, through Broadcasting Decision CRTC 2023-245. This renewal was part of an administrative process to allow time for the CRTC to update its regulatory frameworks in light of changes to the Broadcasting Act.

A petition was submitted to the Governor in Council (GIC) by an individual, John P. Roman, claiming that the CRTC made procedural errors by not holding a public hearing and failing to justify this approach in the public interest, as mandated by the Broadcasting Act.

Under section 28 of the Broadcasting Act, the GIC has the authority to set aside or refer a CRTC decision back for reconsideration if it is found to detract from the objectives of Canada’s broadcasting policy. However, after reviewing the petition, the GIC determined that the CRTC’s decision did not undermine these objectives and thus declined to refer the decision back for reconsideration and hearing.

As a result, the CRTC’s decision to renew the broadcasting licenses as stated in Broadcasting Decision CRTC 2023-245 remains in effect. [Source]

New Canadian Chicken Quota Regulations for Early 2024 Production

Chicken Farmers of Canada (CFC) has amended the Canadian Chicken Marketing Quota Regulations to set new limits for the production and marketing of chicken for the period beginning on January 14, 2024, and ending on March 9, 2024. The amendments specify the production subject to federal and provincial quotas, market development quotas, and specialty chicken quotas for each province. The total allocated production for this period across all provinces is 278,640,327 kg for federal and provincial quotas, 7,480,925 kg for market development quotas, and 2,473,052 kg for specialty chicken quotas. These changes are made under the authority of the Farm Products Agencies Act and are approved by the National Farm Products Council, ensuring they align with the marketing plan that CFC is authorized to implement. [Source]

New Chicken Production and Marketing Quota Regulations in Canada for Spring 2024

Chicken Farmers of Canada (CFC) has enacted new regulations that set the production and marketing limits for chicken in Canada for the period starting March 10, 2024, and ending on May 4, 2024. These changes are made under the authority of the Farm Products Agencies Act and follow the procedures outlined in the Operating Agreement for quota allocation changes. The National Farm Products Council has approved these regulations, confirming they are necessary for the marketing plan CFC is authorized to implement.

The amendments specifically update the schedule in the Canadian Chicken Marketing Quota Regulations to reflect new production limits for each province in three categories: production subject to federal and provincial quotas, production subject to federal and provincial market development quotas, and production subject to federal and provincial specialty chicken quotas. The total production limits for this period are set at 285,906,186 kg for regular quotas, 8,813,553 kg for market development quotas, and 2,094,526 kg for specialty chicken quotas. These limits are distributed among the provinces, with Ontario and Quebec having the largest allocations. The regulations will come into effect on March 10, 2024. [Source]

Canadian Turkey Marketing Agency Updates Provincial Quota Regulations for 2023-2024

The Canadian Turkey Marketing Agency has amended the Canadian Turkey Marketing Quota Regulations, 1990, to update the market allotment quotas for turkey producers across various provinces for the control period from April 30, 2023, to April 27, 2024. The amendment reflects significant changes in the size of the turkey market and adjusts the provincial quotas accordingly. The new total market allotment is set at 404,477,798 pounds of turkey, distributed among the provinces with Ontario receiving the largest allotment followed by Quebec, British Columbia, Alberta, Manitoba, Saskatchewan, Nova Scotia, and New Brunswick. The National Farm Products Council has approved these changes, which are deemed necessary for the implementation of the marketing plan that the Agency is authorized to implement. The amendment comes into effect on the day of its registration. [Source]

Canada Increases Fines for Environmental Offences and Updates Contraventions Regulations

The Canadian government has amended the Contraventions Regulations to increase the fines for certain environmental offences under the Canadian Environmental Protection Act, 1999 (CEPA 1999) and its associated regulations. The fines for each designated contravention have been raised from $500 to $1,000. This change is intended to maintain the effectiveness of the Contraventions Regime as a deterrent and to ensure that penalties keep pace with inflation.

Additionally, the amendments involve technical updates to ensure accuracy and consistency in the designation of offences as contraventions. This includes the repeal of 15 offences from the schedule that are primarily administrative in nature or are unenforceable, as well as adjustments to short-form descriptions for clarity.

The Contraventions Act allows for a ticketing procedure as an alternative to the summary conviction process for federal offences, which is less burdensome for both the offender and the justice system. The amendments aim to enhance the credibility of the Contraventions Regime and ensure it remains an effective tool for promoting compliance with environmental laws, thereby contributing to the protection of the environment and the rule of law in Canada.

The amendments were subject to a public consultation process, and the feedback received was considered in finalizing the changes. The amendments will come into force on the day they are registered. Enforcement officers will have an updated tool to enforce compliance, and the management of the Contraventions Regime will remain cost-neutral for the provinces administering it on behalf of the federal government. [Source]

Canada Updates Fines for Transportation of Dangerous Goods Offences

The Canadian government has amended the Contraventions Regulations to update the fine amounts for offences under the Transportation of Dangerous Goods Act, 1992 (TDGA). The fines, which had not been increased for over 15 years, are being raised to ensure they remain an effective deterrent. The amendments reflect the distinction between criminal offences and regulatory offences, allowing for a ticketing procedure that is less onerous than the summary conviction process in the Criminal Code.

The updated fines range from $2,000 to $4,000, with the specific amount depending on the nature and potential risk associated with the offence. For example, the fine for failing to report the loss or theft of dangerous goods has increased from $1,000 to $4,000.

Transport Canada consulted with various stakeholders, including law enforcement personnel, regional managers, and the National Compliance Working Group, which consists of representatives from provinces and territories. The feedback was generally supportive, although there were concerns about the proposed fines being higher than those in some provinces. As a result, the fine amounts were adjusted before the final proposal.

The amendments aim to maintain public safety in the transportation of dangerous goods and provide enforcement officers with an effective tool to promote compliance. The changes are expected to be cost-neutral for the government, as the costs associated with administering the Contraventions Regime are offset by the fines collected. There are no new administrative or compliance burdens for small businesses, and the one-for-one rule does not apply. The amendments do not result from international regulatory cooperation and do not require a strategic environmental assessment or a gender-based analysis plus (GBA+). The new regulations will take effect on the day they are registered. [Source]

Amendments to Canadian Employment Equity Regulations Reflect 2021 NOC Update

The Canadian Employment Equity Regulations have been amended to align with the 2021 National Occupational Classification (NOC). This update is necessary because the NOC, which is used for collecting and analyzing labor market data, underwent a major revision in 2021, expanding from 500 to 516 unit groups and introducing a new five-digit codification system. The amendments to the Employment Equity Regulations will ensure federally regulated private-sector employers can accurately report on workforce representation and pay gaps among four designated groups: women, Indigenous peoples, persons with disabilities, and members of visible minorities.

The changes to the regulations involve updating the unit groups listed in Schedule II to reflect the titles and codes of the 2021 NOC. This will help employers categorize their employees into the correct Employment Equity Occupational Groups for reporting purposes. The Labour Program will automatically classify the NOC categories into the 14 Employment Equity Occupational Groups through the Workplace Equity Information Management System, simplifying the process for employers.

No consultations were conducted for this amendment as employers are already expected to be familiar with the NOC changes, which are part of regular updates every five years. The amendments do not introduce new reporting requirements or costs for employers or the government. The updated regulations will come into force on January 1, 2024, and employers will be notified in advance. Compliance will be ensured through the Labour Program’s existing processes, which will now incorporate the updated NOC unit groups. [Source]

Additional EI Benefits for Seasonal Workers Through Canadian Pilot Project No. 22

The Canadian Employment Insurance Commission has introduced Pilot Project No. 22, which aims to provide additional weeks of Employment Insurance (EI) benefits to seasonal workers affected by low unemployment rates. This project applies to claimants whose benefit periods start between September 10, 2023, and September 7, 2024, and who meet specific conditions related to seasonal employment.

The project is a response to the challenges faced by seasonal workers, who often struggle to find employment during off-seasons, especially in areas with limited job opportunities. A decrease in regional unemployment rates can lead to a reduction in the number of weeks of EI benefits available to these workers, potentially resulting in income gaps.

To qualify for the additional benefits, claimants must reside in one of 13 targeted economic regions and have a history of seasonal EI claims. The pilot project offers up to four extra weeks of benefits, in addition to the five weeks provided by an existing temporary measure, with a cap of 45 weeks of benefits.

The pilot project is expected to cost approximately $66.5 million in additional benefits, with administrative costs estimated at $2.1 million. These costs will be recovered through increased EI premiums over a seven-year period, with a minimal impact on premium rates.

The pilot project is part of broader consultations on EI modernization and aims to mitigate the impact of reduced benefit entitlements due to lower unemployment rates. It also seeks to gather information to inform future program changes. The project does not impose new administrative burdens on businesses and is not expected to have modern treaty implications or require Indigenous engagement. The implementation includes minor adjustments to EI processing systems and procedures, with the goal of maintaining service standards for claim processing. Compliance and enforcement will follow existing authorities within the EI program. [Source]

Canada Enacts Federal Prompt Payment Legislation for Construction Industry

The Canadian government has enacted the Federal Prompt Payment for Construction Work Act to ensure timely payments within the construction industry. This legislation mandates that federal government payments to contractors are due within 28 days of receiving a proper invoice, with subsequent payments to subcontractors due within seven days thereafter, continuing down the payment chain. To address disputes over payment, the Act introduces an adjudication process for swift resolution.

To harmonize federal and provincial regulations and reduce confusion in the industry, the government has designated certain provinces where their own prompt payment legislation will apply instead of the federal law, provided they meet specific criteria outlined in the Federal Prompt Payment for Construction Work Regulations. Currently, Ontario, Saskatchewan, and Alberta have qualified and are designated under this order.

The construction industry is a significant part of Canada’s economy, and delayed payments have been a longstanding issue. The new federal legislation, along with the designation of provincial regimes, aims to provide consistency and clarity across jurisdictions, benefiting the industry, including small businesses, by allowing them to operate under a single legislative framework for prompt payment.

The Order Designating Provinces does not introduce new costs to the industry and is exempt from prepublication. It aligns with ongoing provincial and territorial initiatives and does not have implications on modern treaties or environmental issues, as it solely addresses payment and adjudication processes. The implementation of the federal construction prompt payment regime requires the regulations to be in force, the creation of an Adjudicator Authority, revisions to the standard government construction contract, and the enforcement of the Act. Compliance with the designation is not considered an issue since legislative changes are typically lengthy processes. [Source]

Canada’s Federal Prompt Payment for Construction Work Regulations Overview

The Federal Prompt Payment for Construction Work Regulations establish criteria and processes to ensure timely payments within the construction industry in Canada. Provinces can be designated under the Act if they have similar laws for invoicing, payment timelines, notices of non-payment, and adjudication processes. The regulations exclude certain days from payment time calculations, such as holidays, Saturdays, and recognized construction holidays.

Interest on overdue payments is calculated as simple interest at the average bank rate plus 3% per year from the due date until payment is received. Adjudicators may be excused from determining disputes in cases of consolidation with other disputes, revocation by agreement, conflict of interest, or other incapacitating circumstances.

The regulations aim to streamline the implementation of the Act, providing clarity on the designation of provinces, time limits, interest calculations, and adjudication circumstances. They were developed in consultation with industry stakeholders and are designed to benefit the construction industry, which is predominantly composed of small businesses. The regulations are expected to improve payment practices, reduce dispute resolution costs, and indirectly benefit the economy by enabling firms to take on more business and potentially hire more workers. Compliance and enforcement will be monitored by the Adjudicator Authority. [Source]

Federal Regulations for Prompt Payment and Dispute Resolution in Canadian Construction Industry

The Federal Prompt Payment for Construction Work Regulations (Dispute Resolution) establish the adjudication process for resolving payment disputes in the Canadian construction industry. The regulations specify the requirements for a proper invoice, which must include contractor details, the period covered, contract number, description of services or materials, amount payable, and payment terms.

An adjudicator, who must be impartial and have relevant construction industry experience, is responsible for resolving disputes. The Adjudicator Authority oversees the training, certification, and conduct of adjudicators, maintains a list of certified adjudicators, and establishes a fee schedule.

The adjudication process begins with a Notice of Adjudication. Parties have four days to agree on an adjudicator or request the Adjudicator Authority to appoint one. The adjudicator can request documents, conduct investigations, and must make a determination within 20 days, extendable by up to five days with consent from all parties.

The adjudicator’s written determination is binding unless a written agreement is reached or a court order or arbitral award sets it aside. The adjudicator may correct typographical errors within five days of the determination. The regulations exclude certain periods from the computation of time, such as holidays and construction holidays recognized by provincial governments.

The regulations aim to ensure prompt payment throughout the construction supply chain, improve consistency across jurisdictions, and provide a cost-effective dispute resolution mechanism. They are designed to benefit the construction industry, which consists mainly of small and medium-sized enterprises. The regulations are part of a broader effort to modernize payment practices in federal construction contracts. [Source]

Deferral of Canadian Firearms Marking Regulations to 2025

The Canadian Firearms Marking Regulations, initially set to come into force on December 1, 2023, have been deferred to December 1, 2025. This delay allows for further engagement with industry stakeholders and provides manufacturers and importers with additional time to prepare for compliance with the regulatory requirements.

The marking of firearms is crucial for tracing crime guns and combating illicit activities such as trafficking. It is also a key element in fulfilling Canada’s international commitments to treaties aimed at countering illegal firearm production and movement. The regulations require firearms manufactured in or imported into Canada to be permanently marked with specific information for identification and tracing purposes.

The coming-into-force date has been postponed multiple times since the regulations were first introduced in 2004, largely due to changes in the legal framework governing firearms, including the dissolution of the long-gun registry. The implementation of Bill C-71, which mandates record-keeping by firearms businesses, has laid the groundwork for the regulations to eventually take effect.

The amendment to defer the regulations does not introduce additional regulatory burdens, and therefore, no prepublication comment period was deemed necessary. The deferral is not expected to impact Indigenous peoples or modern treaty obligations.

The delay carries some societal costs and reputational risks, as it postpones the benefits of firearm markings for law enforcement tracing efforts and delays compliance with international obligations. However, it benefits the industry by allowing time to adjust business processes and ensure regulatory compliance.

The Royal Canadian Mounted Police (RCMP) and Public Safety Canada will inform relevant parties of the deferral and prepare them for the new coming-into-force date. Non-compliance with the marking requirements after December 1, 2025, could result in manufacturers and importers being out of compliance with their business or firearms licenses. [Source]

Expansion of First Nations Fiscal Management Act to Include Four New First Nations

The Canadian Minister of Crown-Indigenous Relations has approved an order to amend the schedule to the First Nations Fiscal Management Act (FNFMA) to include four additional First Nations: Liard First Nation, Loon River Cree, Pabineau, and Wolf Lake. This amendment enables these First Nations to access services provided by the national First Nation institutions established under the FNFMA, such as the First Nations Finance Authority, the First Nations Tax Commission, and the First Nations Financial Management Board.

The FNFMA, which came into force on April 1, 2006, aims to support economic development and well-being in First Nation communities by enhancing their property taxation, creating a bond financing regime, and supporting financial management capacity. By being added to the schedule, the four First Nations can now choose to implement property tax systems, seek certification for financial management, and access bond financing for infrastructure and economic development projects.

The order was made in response to requests from the councils of the respective First Nations and did not require additional consultations as the communities had already been engaged. The initiative does not have regulatory costs, does not impose compliance costs on small businesses, and is not part of a regulatory cooperation work plan. No environmental effects or gender-based analysis plus (GBA+) issues have been identified for this initiative.

The inclusion of these First Nations in the FNFMA schedule is expected to have positive impacts on their communities by providing more tools for revenue generation, accountability standards, and access to capital markets, which can lead to improved economic development and community well-being. There are no compliance and enforcement requirements associated with the amendment, and no direct costs are associated with adding a First Nation to the schedule. [Source]

Canada Expands Sanctions Under Magnitsky Law Against Human Rights Violators in Russia, Iran, and Myanmar

The Canadian government has amended the Justice for Victims of Corrupt Foreign Officials Regulations to add seven individuals to the sanctions list under the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law). These individuals are implicated in human rights violations in Russia, Iran, and Myanmar.

In Chechnya, officials conducted purges against LGBTQI+ individuals, involving kidnapping, torture, and extrajudicial killings. The listed individuals are associated with these actions, including a parliament speaker, a deputy minister, and heads of security and police agencies.

In Iran, two officials are sanctioned for their involvement in the torture and death of Iranian-Canadian photojournalist Zahra Kazemi in 2003. Despite her death following brutal treatment in custody, no one has been held accountable.

In Myanmar, the military leader responsible for orchestrating human rights violations against pro-democracy supporters and civilians since the 2021 coup is also sanctioned. His forces have committed acts such as deliberate targeting of civilians and attacks on civilian infrastructure.

The objective of these sanctions is to condemn human rights violations, combat impunity, and deter similar actions. The sanctions are targeted at individuals rather than entire countries, aiming to minimize unintended impacts on vulnerable groups.

The sanctions require Canadian financial institutions to freeze assets and prohibit transactions with the listed individuals. The Royal Canadian Mounted Police enforce the regulations, with penalties for non-compliance including fines and imprisonment. The Canada Border Services Agency also plays a role in enforcement. The listed individuals are additionally inadmissible to Canada under immigration law. [Source]

Canada Sets Date for Enhanced Corporate Transparency Measures

The Canadian government has set January 22, 2024, as the date for certain provisions of an Act to amend the Canada Business Corporations Act (CBCA) to come into force. These amendments aim to increase corporate transparency by requiring CBCA corporations to collect and disclose additional information about individuals with significant control (ISCs) over the corporation. The Director appointed under the CBCA will be authorized to make some of this ISC information publicly available, including the individual’s name, address, and details of their control over the corporation.

The amendments also grant the Director additional compliance powers, such as the ability to dissolve a corporation or refuse compliance certificates if a corporation fails to meet its ISC filing obligations. Protections are included for individuals under 18, those declared incapable, and those whose safety could be jeopardized by public disclosure of their information.

The changes are part of Canada’s commitment to international standards on beneficial ownership and corporate control transparency. The government has engaged with stakeholders, including business and professional associations, and will continue to do so during the implementation process. [Source]

Canada Implements Federal Prompt Payment for Construction Work Act

The Canadian government has enacted the Federal Prompt Payment for Construction Work Act to ensure timely payments within the federal construction supply chain and to introduce an effective adjudication process for payment disputes. The Act mandates that the federal government must pay contractors within 28 days of receiving a proper invoice, and contractors must then pay their subcontractors within 7 days, continuing down the chain. If disputes arise, the Act provides for an adjudication process to resolve them.

To implement this regime, four elements were necessary: the Act itself, accompanying Regulations to detail the adjudication process and other specifics, the establishment of a Federal Adjudicator Authority, and revisions to the standard Government of Canada construction contract to align with the new payment timelines and dispute resolution method.

The Regulations will take effect following the Governor in Council’s order, and the Federal Adjudicator Authority has been established with trained and certified adjudicators. The standard construction contract has been updated accordingly. Existing federal construction contracts will have one year to adjust to the new requirements if they end more than a year after the Act and Regulations come into force.

Provinces with similar prompt payment regimes will be designated, and federal construction work in those provinces will default to the provincial regime. Currently, Ontario, Saskatchewan, and Alberta are the designated provinces.

The Act aims to improve the delivery of federal real property projects by reducing payment dispute risks and work stoppages, ensuring timely payments to small and medium enterprises, including indigenous firms, and fostering more opportunities for apprenticeships and technology investment.

Stakeholder engagement sessions and consultations with industry organizations and provinces have been conducted to align practices and seek national consistency, with ongoing discussions through the Regulatory Reconciliation and Cooperation Table – Prompt Payment Working Group. [Source]

Canada Enacts Provisions for Interest-Free Student and Apprentice Loans

The Canadian government has enacted an order to bring into force certain provisions of the Fall Economic Statement Implementation Act, 2022, which support the permanent elimination of interest accrual on Canada Student Loans and Canada Apprentice Loans. This order specifies that the provisions will come into effect the day after the order is made. The objective is to align the Canada Student Loans Act, Canada Student Financial Assistance Act, and Apprentice Loans Act with the new policy by repealing or amending regulation-making authorities and related provisions that are no longer applicable. The legislative changes were necessary because, although the interest elimination became effective on April 1, 2023, other parts of the Acts still referenced scenarios where interest payments on loans could occur, leading to inconsistencies. The amendments also ensure that any interest accrued before the interest elimination will still be considered in calculations for alternative payments to non-participating provinces and territories. These updates are considered housekeeping measures to remove outdated references to interest-related regulations, aiming to prevent confusion among stakeholders. No consultations were held as the amendments are administrative in nature. [Source]

Canada Sets Zero-Emission Vehicle Targets for 2035 in Updated Greenhouse Gas Emission Regulations

Canada has amended its Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations to reduce greenhouse gas emissions from these vehicles. The amendments set emission standards aligned with the United States and introduce requirements for an increasing percentage of new light-duty vehicles to be zero-emission vehicles (ZEVs), leading to all new passenger automobiles and light trucks being ZEVs by model year 2035. The regulations include a system of compliance units related to ZEVs, allowing companies to earn credits for exceeding ZEV targets or by investing in ZEV charging infrastructure. Companies that fall short of targets will incur deficits that must be offset within a limited timeframe. The amendments also include provisions for calculating and rounding emissions numbers, updating references, and making other technical adjustments.

The regulations aim to contribute to Canada’s climate commitments, including a 40-45% reduction in GHG emissions below 2005 levels by 2030 and net-zero emissions by 2050. The cost-benefit analysis projects incremental costs for ZEVs and chargers but anticipates significant net energy savings and GHG emission reductions, resulting in net benefits. The amendments are expected to reduce air pollutants, leading to improved health outcomes. They also consider the impact on various subpopulations, including those in rural and northern communities, and include measures to support the transition to ZEVs and the expansion of charging infrastructure.

The amendments align with similar ZEV targets in British Columbia, Quebec, California, and other jurisdictions. They will be enforced under the Canadian Environmental Protection Act, 1999, with regulated parties required to submit reports and maintain evidence of conformity. The Department of the Environment will update guidance material and reporting systems to assist regulated parties in understanding and complying with the new requirements. The performance of the amendments will be monitored through annual reports from manufacturers and importers, and the Department will conduct tests to verify compliance. [Source]

Amendment Authorizes ISED to Receive National Security Information Under SCIDA

The Canadian Government has authorized Innovation, Science and Economic Development Canada (ISED) to receive information relevant to national security under the Security of Canada Information Disclosure Act (SCIDA). This amendment to Schedule 3 of the SCIDA allows ISED to lawfully obtain information from federal partners to support its responsibilities, particularly concerning national security reviews of foreign investments under the Investment Canada Act (ICA).

The SCIDA, which came into force in June 2019, aims to protect Canada against activities that undermine its security by facilitating the sharing of information between government institutions. The Act sets a higher threshold for information disclosure, requiring that it must contribute to the recipient institution’s national security responsibilities. It also mandates record-keeping of disclosures and annual reporting to the National Security and Intelligence Review Agency (NSIRA).

Previously, ISED could not receive information under SCIDA, as it was not listed in Schedule 3. This limited its ability to assess national security threats effectively, especially in the context of foreign investments. The amendment closes this gap, enhancing the government’s capacity to safeguard national security and economic well-being.

The Order does not change the Act’s framework or Canadians’ rights and freedoms and does not grant additional collection powers to the government. ISED will now be subject to the same reporting, review, and oversight mechanisms as other institutions listed in Schedule 3.

Consultations for this amendment were internal, focusing on challenges among federal national security partners. The Order is not expected to have significant costs or require additional staff, as ISED will use existing resources and receive training from Public Safety Canada on responsible information sharing.

The Order is not expected to impact small businesses, modern treaty obligations, or have environmental effects. It does not result from international regulatory cooperation. The rationale for the Order is to strengthen Canada’s response to national security threats and improve information sharing among government institutions. The Order will be enforced through existing mechanisms, with NSIRA reviewing disclosures and publishing annual reports. [Source]

Canada Bans Import of Russian Diamonds and Jewelry to Penalize Invasion of Ukraine

Canada has amended its Special Economic Measures (Russia) Regulations to further penalize Russia for its invasion of Ukraine by banning the import of Russian diamonds and related jewelry products. This move aligns with the G7’s commitment to reduce Russia’s revenue from diamond sales, which is significant given Russia’s status as a leading diamond producer. The amendments prohibit the direct import of various diamond products and jewelry from Russia, including both natural and synthetic diamonds, as well as articles of jewelry and watches with precious metal components.

The import ban is expected to have minimal economic impact on Canada, as imports of the banned products from Russia have already significantly decreased due to previous sanctions and the removal of Russia’s Most-Favoured-Nation tariff status. The amendments could create some costs for businesses needing to source from alternative markets or apply for permits for otherwise prohibited transactions, but these costs are expected to be low.

The sanctions are targeted and are not expected to significantly affect vulnerable groups or have important environmental effects. They are enforceable by the Royal Canadian Mounted Police and Canada Border Services Agency, with penalties for non-compliance including fines and imprisonment. The regulations came into force upon registration. [Source]

Canada Expands Sanctions on Russian Individuals Over Sham Elections in Ukraine

Canada has amended its Special Economic Measures (Russia) Regulations to include 30 additional Russian individuals who participated in what are considered sham elections in Russian-occupied territories of Ukraine. These individuals are now subject to a broad dealings ban, effectively freezing their assets and prohibiting transactions with them. This action is part of Canada’s ongoing response to Russia’s invasion of Ukraine and aims to impose economic costs on Russia, undermine its military aggression, and align with sanctions imposed by international partners. The Canadian government has committed over $9.5 billion in assistance to Ukraine since 2022, including military aid, economic support, and humanitarian assistance. The sanctions are intended to pressure individuals directly supporting Russia’s violation of Ukraine’s sovereignty and territorial integrity. The enforcement of these sanctions falls under the authority of the Royal Canadian Mounted Police (RCMP) and Canada Border Services Agency (CBSA), with penalties for non-compliance including fines and imprisonment. [Source]

Canada Enhances Protection for Monarch Butterfly and Western Bumble Bee Subspecies Under SARA

The Canadian government has amended Schedule 1 of the Species at Risk Act (SARA) to provide greater protection for certain species. The Monarch butterfly has been reclassified from “special concern” to “endangered,” and two subspecies of the Western Bumble Bee, the mckayi and occidentalis, have been added as “special concern” and “threatened,” respectively. These changes aim to ensure these species receive appropriate protections due to risks to their survival.

The Monarch butterfly is threatened by habitat degradation in its overwintering locations, herbicide use affecting its food source (milkweed), and other factors. The Western Bumble Bee subspecies face threats from pesticide use, habitat change, and disease transmission from other bee species. The occidentalis subspecies is also affected by development and agricultural intensification in certain regions.

The listing of these species triggers mandatory recovery planning and protection measures under SARA. For endangered and threatened species, this includes immediate legal protections on federal lands and the development of recovery strategies and action plans. For species of special concern, a management plan is required to proactively manage the species.

The regulatory impact analysis indicates that the benefits of protecting these species, such as biodiversity and ecosystem services like pollination, outweigh the costs. Costs associated with the Order are expected to be under $10 million over ten years, including the development of recovery strategies, action plans, management plans, permit applications, and compliance promotion.

The Order supports Canada’s commitment to the Convention on Biological Diversity and the Federal Sustainable Development Strategy’s goal to protect species at risk. It also has implications for impact assessments of projects and may disproportionately affect Indigenous peoples and agricultural businesses on federal lands due to the application of general prohibitions.

A strategic environmental assessment concluded that the Order would have positive environmental effects, and a gender-based analysis plus (GBA+) found that the main factor determining impact is the region of residence, with Indigenous peoples potentially more affected due to the application of general prohibitions on First Nation reserves. The Order is expected to have a positive impact on biodiversity and ecosystem health. [Source]

Canada Eliminates Interest on Student and Apprentice Loans

The Canadian government has made regulatory amendments to align with legislative changes that permanently eliminate the accrual of interest on Canada Student Loans (CSLs) and Canada Apprentice Loans (CALs). These changes, which came into effect on April 1, 2023, are designed to reduce confusion among stakeholders and make loan repayment terms clearer for borrowers. The amendments affect the Canada Student Financial Assistance Regulations (CSFAR), Canada Student Loans Regulations (CSLR), and Apprentice Loans Regulations (ALR), ensuring that borrowers are still responsible for any interest accrued prior to April 1, 2023.

The CSLR amendments include the repeal of provisions that calculate interest rates for guaranteed CSLs and the removal of the requirement to publish these rates annually. The ALR amendments establish a new process for determining loan repayment dates independent of interest accrual.

The Master Student Financial Assistance Agreement (MSFAA) and the Canada Apprentice Loan Application and Agreement (CALAA) will also be updated to reflect these changes. The amendments are expected to have a positive impact on all student borrowers by making loan repayment more affordable, particularly benefiting women who represent the majority of CSL borrowers and men who are the majority of CAL recipients.

The regulatory amendments have no incremental costs, as the costs associated with the elimination of interest on student and apprentice loans are already accounted for by the legislative changes. The amendments will not impact Canadian small businesses and do not require the one-for-one rule as there is no change in administrative burden. They are also not related to any regulatory cooperation forums and do not have implications for modern treaties or Indigenous peoples. A gender-based analysis indicates that the elimination of interest accrual will benefit borrowers, especially recent graduates and those with high debt loads or repayment difficulties. The changes will be implemented upon registration of the regulations. [Source]

Canada Updates Vessel Construction and Equipment Regulations for Enhanced Maritime Safety

The Vessel Construction and Equipment Regulations consolidate and update Canadian requirements for the construction and equipment of new vessels 24 meters or more in length, excluding fishing vessels and pleasure craft. These regulations align domestic standards with international ones, particularly the International Convention for the Safety of Life at Sea (SOLAS), and incorporate by reference various codes, resolutions, and recognized organization rules. They also address safety concerns raised by the Transportation Safety Board of Canada regarding the carriage of child- and infant-sized lifejackets.

Grandfathering provisions allow most existing vessels to comply with the regulations in place at the time of their construction, with some exceptions. For instance, passenger vessels must carry infant-sized lifejackets and fit all lifejackets with personal locator lights if operating after sunset and before sunrise. Vessels with outdated on-load release mechanisms must upgrade to comply with the LSA Code.

The regulations are expected to reduce administrative burdens and costs by eliminating the need for certain Marine Technical Review Board exemption requests. They also introduce higher penalties for non-compliance to improve enforcement effectiveness. The estimated net cost of the regulations is $0.95 million over ten years, with benefits expected to outweigh these costs due to increased safety and compliance.

The regulations repeal four existing regulations and introduce administrative monetary penalties for violations. They will be enforced by Transport Canada inspectors and recognized organizations. The regulations are part of Transport Canada’s Regulatory Review Roadmap, aiming to reduce regulatory barriers and support innovation in the marine industry. [Source]

Enhancements to Canadian Vessel Operation Restrictions for Safety and Environmental Protection

The Regulations Amending the Vessel Operation Restriction Regulations (VORR) introduce several changes to enhance safety, protect the environment, and address public interest concerns on Canadian waterways. Key amendments include:

  1. Engine Power Limits: The restriction on engine power for vessels is no longer limited to public parks and controlled access bodies of water. Local authorities can now set engine power limits on any body of water to address safety and environmental risks.

  2. Updating Exemptions: The VORR now explicitly exempts persons with federal fishing licenses from certain restrictions, aligning them with those holding provincial licenses. Additionally, Indigenous peoples exercising rights recognized by section 35 of the Constitution Act, 1982, are explicitly exempted from certain restrictions.

  3. Technical Requirements on Signage: The VORR removes specific sections detailing signage requirements and incorporates by reference a Transport Publication (TP 15400E) that provides updated signage guidance. This allows for more efficient communication and implementation of signage requirements.

  4. Wake Surfing Restriction: Wake surfing is removed from the general towing restrictions schedule and given its own schedule. This allows local authorities to specifically target wake surfing activities without restricting other towing activities.

  5. New Restrictions: The VORR introduces 21 new restrictions on six bodies of water to address local safety, environmental, and public interest issues. These include speed limits and prohibitions on vessel operations in certain areas.

  6. Designation Authority: Enforcement officers employed by the Windsor Port Authority are designated to enforce the VORR within their jurisdiction. Additionally, updates are made to reflect current titles and department names for enforcement officers in Saskatchewan and Quebec.

  7. Administrative Corrections: Minor errors and inconsistencies in the text of the VORR, such as geographical coordinates, are corrected to ensure clarity and accuracy.

The Regulations are expected to incur costs for local authorities and the government, mainly related to the preparation and submission of applications for new restrictions, signage installation, and enforcement training. However, these costs are deemed to be outweighed by the benefits of increased safety, environmental protection, and public interest alignment. The Regulations do not apply the one-for-one rule, as they do not change the administrative burden for businesses. A strategic environmental assessment concluded that no significant environmental effects are anticipated, and a gender-based analysis plus assessment identified that the wake surfing restrictions may disproportionately affect youth. The Regulations come into force on the day of their registration. [Source]

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