Part 2, Volume 158 #5
Highlights
- Canada has updated offshore petroleum regulations for Newfoundland and Labrador and Nova Scotia to enhance safety, environmental protection, and resource management, allowing for the use of advanced technologies.
- Amendments to administrative monetary penalties have been made in both regions, categorizing violations and corresponding penalties.
- The levy rate for chicken marketing in Ontario has been adjusted.
- The critical habitat for the White Sturgeon in the Nechako River has been protected through a regulatory order.
- The Hatchery Exclusion Regulations have been repealed due to redundancy after modernized hatchery regulations were introduced.
- Marine safety fees have been revised to better recover service costs, affecting vessel registry services with annual adjustments based on the Consumer Price Index.
- The Minister of State (Online Harms) has been assigned to assist the Minister of Canadian Heritage and will also serve as Minister of Justice and Attorney General of Canada.
- Electronic administration and enforcement in the Customs Act have been authorized to streamline border processes.
- Special permits can be issued for activities related to Guatemala that would otherwise be restricted under economic sanctions due to corruption and human rights violations in the country.
Canada-Newfoundland and Labrador Offshore Petroleum Operations Framework Regulations Update
The Canada–Newfoundland and Labrador Offshore Area Petroleum Operations Framework Regulations replace nine outdated offshore petroleum regulations with a consolidated “framework” regulation for the Canada-NL and Canada-NS offshore areas. These new regulations aim to optimize operational safety, environmental protection, and resource management by allowing the use of the best available technologies and methodologies. They establish modern requirements aligned with domestic and international industry codes and standards and codify industry best practices.
The regulations cover various aspects of offshore petroleum activities, including general authorizations, technical requirements for drilling, production, geophysical, geotechnical, and diving activities, and decommissioning and abandonment. They introduce a more technology-neutral approach, providing flexibility for operators to innovate while maintaining high safety standards. The regulations also include stringent requirements for spill-treating agents, emissions reduction, and the design and operation of installations and equipment.
The regulations are expected to reduce the administrative burden on industry and the offshore Board by decreasing the need for regulatory deviations. They will result in a net present benefit, with quantified benefits from reduced administrative costs for industry and the Board, and limited incremental costs for developing certification plans, spill-treating agent monitoring plans, and increased administrative costs for certifying authorities.
The regulations will come into force eight months after publication to allow time for operators and regulators to prepare for implementation. Compliance and enforcement will follow established Board procedures, including inspections, audits, and potential enforcement actions such as orders, penalties, and prosecution. The Boards will provide guidance materials to assist with interpretation and compliance. [Source]
Amendments to Canada–Newfoundland Offshore Petroleum Penalties Regulations
The Canadian government has amended the Canada–Newfoundland and Labrador Offshore Petroleum Administrative Monetary Penalties Regulations. These changes involve updating the classifications of various provisions related to offshore petroleum operations in the Canada–Newfoundland and Labrador Offshore Area. The amendments replace parts 2 to 5 of Schedule 1 with a new list of provisions, each assigned a classification type, either Type A or Type B, which likely corresponds to the severity or category of the penalties. The updated regulations will take effect on the same day as the Canada–Newfoundland and Labrador Offshore Area Petroleum Operations Framework Regulations, or if registered later, on the day of registration. The Minister of Natural Resources recommended these changes, which were approved by the Governor General in Council after consultation and approval from the Provincial Minister for Newfoundland and Labrador. [Source]
Comprehensive Guidelines for Petroleum Operations in Nova Scotia Offshore Areas
The Canada–Nova Scotia Offshore Area Petroleum Operations Framework Regulations establish comprehensive guidelines for petroleum operations in the offshore areas of Nova Scotia. The regulations cover various aspects of operations, including personnel qualifications, management systems, environmental protection, and emergency response.
Key definitions are provided for terms such as “accidental event,” “installation,” and “operator.” The regulations mandate that operators ensure personnel have the necessary experience and qualifications and that a management system is in place to reduce risks, prevent pollution, and ensure the conservation of petroleum resources.
Operators must obtain authorization for petroleum operations, which requires submitting documents like safety and environmental protection plans, contingency plans, and decommissioning and abandonment plans. Specific well approvals are also necessary for well operations, and the regulations outline the requirements for well data acquisition, verification schemes, and development plans.
A certificate of fitness is required for certain installations, and the regulations specify the requirements for certification, including design, construction, and maintenance standards. General requirements for authorized works and activities are detailed, including installation management, safety measures, and documentation availability.
The regulations also address geoscientific, geotechnical, and environmental programs, stipulating measures for equipment, materials, and energy sources. Drilling and production regulations include allocation of areas, well integrity, measurements, and conservation of resources. Specific provisions are made for diving projects and the use of installations, wells, and pipelines.
Support operations must ensure the availability of support craft for emergency response and the adherence to safety zones. Reporting requirements are outlined for incidents, records, and various operational aspects. Finally, the regulations specify the repeal of previous regulations and the effective date of the new framework. [Source]
Amendments to Canada-Nova Scotia Offshore Petroleum Penalties Regulations
The Canadian government has amended the Canada-Nova Scotia Offshore Petroleum Administrative Monetary Penalties Regulations. These changes involve updating Parts 2 to 4 of Schedule 1, which detail various provisions and their classifications related to the Canada–Nova Scotia Offshore Area Petroleum Operations Framework Regulations. The amendments classify each provision as either Type A or Type B, which likely corresponds to the severity and penalties associated with non-compliance. The updated regulations will take effect on the same day as the Canada–Nova Scotia Offshore Area Petroleum Operations Framework Regulations, or if registered later, on the day of registration. [Source]
Adjustment of Levy Rate for Ontario Chicken Producers by Chicken Farmers of Canada
Chicken Farmers of Canada (CFC) has amended the Canadian Chicken Marketing Levies Order to adjust the levy rate for chicken producers in Ontario. The new levy rate is set at 2.69 cents per chicken marketed in interprovincial or export trade. This change is made under the authority of the Farm Products Agencies Act and is approved by the National Farm Products Council as necessary for the implementation of the marketing plan that CFC is authorized to implement. The amendment comes into effect on the day it is registered. [Source]
Protection Measures for White Sturgeon in Nechako River Enhanced by Updated Order
The Critical Habitat of the White Sturgeon (Acipenser transmontanus) Nechako River Population Order is a regulatory measure enacted to protect the critical habitat of the endangered White Sturgeon in the Nechako River system in British Columbia, Canada. The Order applies the prohibition against the destruction of the species’ critical habitat as identified in the recovery strategy, except for the portion within the Nechako River Bird Sanctuary. The Order is jointly issued by the Minister of the Environment and the Minister of Fisheries and Oceans, acknowledging the role of the Parks Canada Agency as a competent authority for the species, particularly concerning the Fort St. James National Historic Site. The 2016 Order was replaced to correct the omission of the Parks Canada Agency’s role. The critical habitat remains as originally identified in the 2014 recovery strategy and protected by the 2016 Order. Should new information arise, the recovery strategy and corresponding Order will be updated. The replacement Order does not introduce new costs to businesses or the government, and the one-for-one rule and small business lens analysis confirm no impact on small businesses. [Source]
Canada Simplifies Hatchery Regulations and Reduces Administrative Costs
The Canadian Minister of Agriculture and Agri-Food has repealed the Hatchery Exclusion Regulations, which previously set criteria for excluding certain buildings from being defined as “hatcheries” under the Health of Animals Act. This repeal is a follow-up to the modernized regulations for hatcheries, which were introduced to consolidate various requirements for hatcheries and supply flocks into a single set of regulations. The modernized regulations now contain new criteria for hatchery licensing, making the Hatchery Exclusion Regulations redundant.
The modernized regulations define a hatchery as an entity that receives eggs from a supply flock, incubates eggs for commercial poultry production, and has a capacity of at least 1,000 eggs. If a hatchery does not meet these criteria, it is automatically excluded from licensing requirements. The repeal of the Hatchery Exclusion Regulations is an administrative step to finalize the consolidation process that began with the introduction of the modernized regulations.
Consultations with industry stakeholders were conducted during the development of the modernized regulations, and the decision to repeal the Hatchery Exclusion Regulations was supported by these stakeholders. The repeal does not have any significant cost or benefit impact on stakeholders or the government. However, it does result in administrative relief for six hatcheries that are no longer required to be licensed by the Canadian Food Inspection Agency (CFIA). This relief is now being reported under the one-for-one rule, which measures the administrative cost changes for businesses due to regulation.
The one-for-one rule analysis shows a reduction in administrative costs for the six affected hatcheries, which no longer need to keep records of Salmonella testing or accompany inspectors during inspections. The estimated annualized administrative cost reduction is $1,873 in total, or $312 per business.
The CFIA will incorporate information about the repeal of the Hatchery Exclusion Regulations into communication materials related to the enforcement of the modernized regulations for hatcheries. Dr. Boubacar Sidibe, the National Manager of the Animal Health Directorate, is the contact person for further information. [Source]
Canada Updates Marine Safety Fees Regulations for Vessel Registry Services
The Canadian government has updated the Marine Safety Fees Regulations to include revised fees for vessel registry services, which will now be adjusted annually based on the Consumer Price Index. The changes aim to recover a greater portion of the costs associated with providing these services, shifting the financial burden from taxpayers to the direct beneficiaries, such as vessel owners. The amendments introduce fees for some services that were previously free, adjust existing fees, and consolidate all marine safety fees into one regulation for easier access by clients.
The updated fees will be implemented on April 1, 2024, and will apply to both the Large Vessel Register (LVR) and the Small Vessel Register (SVR), with the goal of improving consistency between the two. The changes will also streamline the renewal process for vessel registrations, requiring owners to provide updated information, which will help maintain accurate vessel ownership records for various government agencies.
The new fees are expected to result in a net cost to vessel owners of $6.97 million over ten years, with the majority of the impact on users of the LVR. The regulations will affect over 18,000 small businesses, with a total net cost of $6.93 million over the same period. The one-for-one rule applies, as the Vessels Registry Fees Tariff will be repealed, and the proposal is considered a title out under the rule.
The government has engaged in consultations with stakeholders, including the Canadian Marine Advisory Council and Indigenous communities, to gather feedback on the proposed fee changes. The strategic environmental assessment concluded that the regulations are not expected to have significant environmental effects. The implementation of the regulations will be supported by the development of a modernized IT system to improve service delivery. Compliance with the new fees will be enforced through education, outreach, and administrative monetary penalties if necessary. [Source]
Arif Virani Appointed as Minister of State for Online Harms and Minister of Justice and Attorney General of Canada
The Governor General of Canada, upon the Prime Minister’s recommendation, has assigned the Honourable Arif Virani, Minister of State (Online Harms), to assist the Minister of Canadian Heritage with their responsibilities. This assignment is made under the authority of the Ministries and Ministers of State Act. Arif Virani will also hold the title of Minister of Justice and Attorney General of Canada. [Source]
Canada Modernizes Customs Act for Electronic Border Services
The Canadian government has enacted provisions of the Budget Implementation Act, 2022, No. 1, which introduce amendments to the Customs Act to facilitate electronic administration and enforcement. These changes authorize the Canada Border Services Agency (CBSA) and trade partners to use electronic communication, moving away from paper-based processes to improve efficiency at the border for travelers and commercial entities. The amendments include an overarching provision for electronic administration, clarify the Minister’s authority to specify electronic means for reporting and payment, and ensure consistency in language between English and French texts.
The CBSA is responsible for border services that balance national security with the free flow of goods and people. The Customs Act, which has been amended several times, does not impose duties but provides the framework for their collection. The new amendments will allow for earlier implementation of electronic processes in areas not affected by the CBSA Assessment and Revenue Management (CARM) system, benefiting stakeholders by simplifying processes.
The changes support the government’s digitalization efforts and will enable the CBSA to meet demands for improved service delivery using technology. This includes reducing in-person interactions and streamlining border clearance processes. Decisions at the border will continue to be made by CBSA officers, but technology will facilitate compliance and allow officers to focus on higher-risk travelers and goods.
The CBSA has already made strides in electronic service delivery, such as the advance declaration feature in ArriveCAN for travelers. The full operation of the CARM project will further enable electronic submission of commercial goods declarations. The amendments will not have differential impacts based on demographic factors and do not entail financial implications for stakeholders or the government.
Stakeholders have been consulted and are supportive of the transition to electronic processes. The CBSA has also found electronic communication beneficial in administering its recourse program, leading to improved efficiency and client satisfaction. The new online portal for administrative reviews is expected to launch within the 2024 to 2025 fiscal year, replacing email communication and aligning with the Policy on Service and Digital’s requirements for online services. [Source]
Authorization of Permits for Restricted Activities with Guatemala Under Economic Sanctions Regulations
The Governor General of Canada, with advice from the Minister of Foreign Affairs and under the Special Economic Measures Act, has authorized the Minister of Foreign Affairs to issue permits. These permits allow individuals or entities in Canada, or Canadians abroad, to engage in activities or transactions that would otherwise be restricted or prohibited by the Special Economic Measures (Guatemala) Regulations. This authorization enables certain dealings with Guatemala that would not be permitted under the current economic sanctions, provided that a permit is obtained. [Source]
Canada Imposes Sanctions on Guatemala for Corruption and Human Rights Violations
Canada has implemented the Special Economic Measures (Guatemala) Regulations in response to significant corruption and systematic human rights violations in Guatemala. The regulations target individuals and entities involved in these activities, prohibiting Canadians and Canadian entities from dealing with their property, facilitating transactions, or providing services to them. The listed individuals are also deemed inadmissible to Canada under immigration law.
The regulations exempt certain transactions, such as those under pre-existing contracts, loan repayments, and payments related to pensions or disability. Entities in Canada must determine if they control property owned by listed persons and report any findings to the RCMP or CSIS.
Listed individuals can apply to the Minister of Foreign Affairs to be removed from the sanctions list if there is a material change in circumstances. Additionally, a Permit Authorization Order allows the Minister to issue permits for activities otherwise prohibited by the regulations.
The measures aim to support the democratically elected government of Guatemala, deter future corruption, and uphold the rule of law and democratic processes. The sanctions are expected to have minimal impact on Canadian businesses and trade with Guatemala. Compliance and enforcement of the regulations will be managed by Canadian law enforcement agencies, with penalties for violations including fines and imprisonment. [Source]