[38] Bill 21 Royal Assent (PDF)
Bill 21 2006
An Act to enact the
Energy Conservation
Leadership Act, 2006 and
to amend the Electricity Act, 1998,
the Ontario Energy Board Act, 1998
and the Conservation Authorities Act
Note: This Act amends or repeals more than one Act. For the legislative history of these Acts, see Public Statutes - Detailed Legislative History on www.e-Laws.gov.on.ca.
Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:
Contents of this Act
1. This Act consists of this section, sections 2 and 3 and the Schedules to this Act.
Commencement
2. (1) Subject to subsections (2) and (3), this Act comes into force on the day it receives Royal Assent.
Same
(2) The Schedules to this Act come into force as provided in each Schedule.
Same
(3) If a Schedule to this Act provides that any provision comes into force on a day to be named by proclamation of the Lieutenant Governor, a proclamation may apply to one or more of those provisions, and proclamations may be issued at different times with respect to any of those provisions.
Short title
3. The short title of this Act is the Energy Conservation Responsibility Act, 2006.
SCHEDULE A
ENERGY CONSERVATION
LEADERSHIP ACT, 2006
Preamble
The Government of Ontario is committed to removing barriers to, and promoting opportunities for, energy conservation and to using energy efficiently in conducting its affairs.
Definitions
1. In this Act,
"enforcement officer" means a person designated under section 9 as an enforcement officer; ("agent d'exécution")
"prescribed" means prescribed by a regulation made under this Act; ("prescrit")
"public agency" means a ministry of the Government of Ontario or an entity, including a municipality, or class of entities that is prescribed as a public agency. ("organisme public")
Mandatory conservation practices
2. (1) The Lieutenant Governor in Council may, by regulation, require persons who are selling, leasing or otherwise transferring an interest in real property or personal property to provide such information as is prescribed in such circumstances as are prescribed.
Effect of non-compliance
(2) A regulation may provide for consequences if a person fails to comply with a requirement established under this section, including consequences if the non-compliance occurs in the context of an activity for which a permit or other type of authorization is required under any Act.
Same
(3) A regulation may provide for the manner in which any matters required for the purposes of subsection (2) are determined and may authorize an enforcement officer to make the determinations.
Notice of non-compliance
(4) A regulation may provide for the manner in which notice relating to the non-compliance is given to the appropriate official for the purposes of subsection (2).
Permissive designation of goods, services and technologies
3. (1) In order to assist in the removal of barriers and to promote opportunities for energy conservation, the Lieutenant Governor in Council may, by regulation, designate goods, services and technologies.
Effect of designation
(2) A person is permitted to use designated goods, services and technologies in such circumstances as may be prescribed, despite any restriction imposed at law that would otherwise prevent or restrict their use, including a restriction established by a municipal by-law, a condominium by-law, an encumbrance on real property or an agreement.
Same
(3) A restriction imposed at law that would otherwise prevent or restrict the use of designated goods, services or technologies is inoperative.
Exception
(4) Subsections (2) and (3) do not apply with respect to a restriction imposed by an Act or regulation.
Energy conservation plans
4. (1) The Lieutenant Governor in Council may, by regulation, require public agencies to prepare an annual energy conservation plan or, if the regulations so provide, an energy conservation plan respecting such other period as may be prescribed.
Specified targets
(2) The Lieutenant Governor in Council may, by regulation, require a public agency to which subsection (1) applies to achieve prescribed energy conservation targets.
Contents
(3) The plan must be prepared in accordance with such requirements as may be prescribed and must include the following information:
1. An itemized description of the public agency's significant energy-consuming technologies and operations.
2. A summary of annual energy usage for each of the public agency's technologies and operations.
3. A description of current and proposed activities and measures to conserve the energy used by the public agency's technologies and in the public agency's operations and to otherwise reduce the amount of energy used by the public agency.
4. A summary of the progress and achievements in energy conservation and other reductions described in paragraph 3 since the previous plan.
5. Such additional information as may be prescribed.
Publication
(4) The public agency shall publish the plan in accordance with such requirements as may be prescribed.
Implementation
(5) The public agency shall implement the plan and shall do so in accordance with such requirements as may be prescribed.
Joint plans
5. (1) Two or more persons may prepare a joint energy conservation plan and may publish and implement it jointly.
Effect
(2) If the joint plan satisfies the requirements established under section 4, the persons are not required to prepare, publish and implement separate energy conservation plans for the same period.
Duty to consider energy conservation, etc.
When acquiring goods and services
6. (1) The Lieutenant Governor in Council may, by regulation, require public agencies to consider energy conservation and energy efficiency in their acquisition of goods and services and to comply with such requirements as may be prescribed for that purpose.
When making capital investments
(2) The Lieutenant Governor in Council may, by regulation, require public agencies to consider energy conservation and energy efficiency when making capital investments and to comply with such requirements as may be prescribed for that purpose.
Agreements to promote conservation, etc.
7. The Minister of Energy may enter into agreements to promote energy conservation and energy efficiency and the agreements must conform to such requirements as may be prescribed.
Compliance orders
8. (1) This section applies if, in the opinion of an enforcement officer,
(a) a person has contravened or failed to comply with a requirement established under this Act; or
(b) a person has prevented or interfered with another person's permitted use of designated goods, services or technologies under section 3.
Proposal re order
(2) The enforcement officer may propose to order the person to cease committing an act or to perform such acts as, in the enforcement officer's opinion, are necessary to remedy the situation.
Notice of proposal
(3) The enforcement officer shall give written notice of the proposed order to the person, including the reasons for the proposal, and shall also inform the person that he, she or it can request a hearing by the Ontario Energy Board about the proposed order and shall advise the person about the process for requesting the hearing.
Hearing requested
(4) If the person requests a hearing and makes the request in the prescribed manner within 15 days after receiving notice of the proposed order, the Board shall hold a hearing.
Energy conservation guiding objective
(5) Despite subsection 1 (1) of the Ontario Energy Board Act, 1998, for the purpose of a hearing under subsection (4), the Board shall be guided by the objective of promoting energy conservation.
Order of Board
(6) The Board may, by order, direct the enforcement officer to carry out the proposed order or, if the Board considers the proposed order to be unreasonable, the Board may substitute its opinion for that of the enforcement officer and may, by order, direct the enforcement officer not to carry out the proposed order or direct him or her to carry it out with such changes as the Board considers appropriate.
Hearing not requested
(7) If the person does not request a hearing or does not make the request in the prescribed manner within 15 days after receiving notice of the proposed order, the enforcement officer may carry out the proposed order.
Court enforcement
(8) The enforcement officer may file a certified copy of an order made under this section in the Superior Court of Justice and the Court may enforce the order in such manner as the Court considers just in the circumstances.
Designation of enforcement officer
9. The Minister of Energy may, in writing, designate one or more persons who are employed in the Ministry of Energy to act as enforcement officers for the purposes of this Act and may impose such conditions relating to the designation as the Minister considers appropriate.
Regulations
10. (1) The Lieutenant Governor in Council may make regulations prescribing anything that is required or permitted to be prescribed or that is required or permitted to be done in accordance with the regulations or as provided in the regulations.
Classes of persons, etc.
(2) A regulation may create different classes of persons or entities and may establish different entitlements for, or relating to, each class or impose different requirements, conditions or restrictions on, or relating to, each class.
Scope
(3) A regulation may be general or specific in its application.
Exemptions, etc.
(4) A regulation may exempt a class or a person or entity from a specified requirement imposed by the Act or a regulation or provide that a specified provision of the Act or a regulation does not apply to the class, person or entity.
Commencement
11. (1) This section and section 12 come into force on the day the Energy Conservation Responsibility Act, 2006 receives Royal Assent.
Same
(2) Sections 1 to 10 come into force on a day to be named by proclamation of the Lieutenant Governor.
Short title
12. The short title of the Act set out in this Schedule is the Energy Conservation Leadership Act, 2006.
SCHEDULE B
AMENDMENTS TO THE
ELECTRICITY ACT, 1998
1. Subsection 2 (1) of the Electricity Act, 1998 is amended by adding the following definitions:
"smart metering data" means data derived from smart meters, including data related to the consumers' consumption of electricity; ("données des compteurs intelligents")
"Smart Metering Entity" means the corporation incorporated, the limited partnership or the partnership formed or the entity designated pursuant to section 53.7 to accomplish the government's smart metering initiative; ("Entité responsable des compteurs intelligents")
"smart metering initiative" means those policies of the Government of Ontario related to its decision to ensure Ontario electricity consumers are provided, over time, with smart meters; ("initiative des compteurs intelligents")
2. The Act is amended by adding the following Part:
PART IV.2
THE SMART METERING ENTITY
The Smart Metering Entity
53.7 (1) To accomplish the government's policies in relation to its smart metering initiative, the Minister,
(a) may cause the Smart Metering Entity to be incorporated as a corporation under the Business Corporations Act;
(b) may cause the Smart Metering Entity to be formed as a limited partnership under the Limited Partnerships Act;
(c) may cause the Smart Metering Entity to be formed as a partnership; or
(d) may designate an entity by regulation as the Smart Metering Entity.
Name of the Smart Metering Entity
(2) Subject to the Business Corporations Act, the Business Names Act and the Limited Partnerships Act, as applicable, the Smart Metering Entity shall have the name prescribed for it by regulation and the regulation may require that the Smart Metering Entity maintain the prescribed name.
Objects or nature of the business of the Smart Metering Entity
53.8 The objects of the Smart Metering Entity, if it is a corporation, or the nature of its business activities, if the Smart Metering Entity is a limited partnership or a partnership, include, in addition to any other objects or business activities, the following:
1. To plan and implement and, on an ongoing basis, oversee, administer and deliver any part of the smart metering initiative as required by regulation under this or any Act or directive made pursuant to sections 28.3 or 28.4 of the Ontario Energy Board Act, 1998, and, if so authorized, to have the exclusive authority to conduct these activities.
2. To collect and manage and to facilitate the collection and management of information and data and to store the information and data related to the metering of consumers' consumption oruse of electricity in Ontario, including data collected from distributors and, if so authorized, to have the exclusive authority to collect, manage and store the data.
3. To establish, to own or lease and to operate one or more databases to facilitate collecting, managing, storing and retrieving smart metering data.
4. To provide and promote non-discriminatory access, on appropriate terms and subject to any conditions in its licence relating to the protection of privacy, by distributors, retailers, the OPA and other persons,
i. to the information and data referred to in paragraph 2, and
ii. to the telecommunication system that permits the Smart Metering Entity to transfer data about the consumption or use of electricity to and from its databases, including access to its telecommunication equipment, systems and technology and associated equipment, systems and technologies.
5. To own or to lease and to operate equipment, systems and technology, including telecommunication equipment, systems and technology that permit the Smart Metering Entity to transfer data about the consumption or use of electricity to and from its databases, including owning, leasing or operating such equipment, systems and technology and associated equipment, systems and technologies, directly or indirectly, including through one or more subsidiaries, if the Smart Metering Entity is a corporation.
6. To engage in such competitive procurement activities as are necessary to fulfil its objects or business activities.
7. To procure, as and when necessary, meters, metering equipment, systems and technology and any associated equipment, systems and technologies on behalf of distributors, as an agent or otherwise, directly or indirectly, including through one or more subsidiaries, if the Smart Metering Entity is a corporation.
8. To recover, through just and reasonable rates, the costs and an appropriate return approved by the Board associated with the conduct of its activities.
9. To undertake any other objects that are prescribed by regulation.
Status of the Smart Metering Entity
53.9 The Smart Metering Entity is not an agent of Her Majesty for any purpose and, if the Smart Metering Entity is a corporation, its subsidiaries are not agents of Her Majesty for any purpose, despite the Crown Agency Act.
Powers of Smart Metering Entity corporation
53.10 If the Minister incorporates or designates a corporation as the Smart Metering Entity, it shall have the powers of a natural person except as limited under this Act.
Mandatory provisions in articles
53.11 (1) If the Smart Metering Entity is a corporation, its articles of incorporation and of such of its subsidiaries as may be prescribed by regulation must contain the conditions, restrictions, criteria or requirements that are prescribed by regulation.
Application of Business Corporations Act
(2) Despite clause 2 (3) (a) of the Business Corporations Act, the Business Corporations Act applies to the Smart Metering Entity, if it is a corporation, except that a regulation made under this Act may provide for the non-application of provisions of the Business Corporations Act to the Smart Metering Entity.
Smart Metering Entity participation in partnerships, etc.
53.12 (1) Nothing in this Part prevents the Smart Metering Entity, if it is incorporated, from participating in partnerships, limited partnerships, joint ventures or any other transaction or arrangement that may be prescribed by regulation, subject to such conditions or restrictions as may be prescribed by regulation.
Same
(2) For the purpose of subsection (1), the Smart Metering Entity may participate in transactions or arrangements directly or indirectly as a partner, limited partner, general partner or as a participant in a joint venture or may hold an interest in, directly or through one or more subsidiaries, a partnership, limited partnership, joint venture or any other transaction or arrangement.
Reporting requirements
53.13 The Smart Metering Entity shall provide the reports and information to the Minister that the Minister requires.
Collection of consumer information
53.14 In carrying out its objects or business activities, the Smart Metering Entity,
(a) may directly or indirectly collect information and data relating to the consumption or useof electricity from consumers, distributors or any other person; and
(b) may manage and aggregate the data related to consumers' electricity consumption or use.
Reciprocal obligations concerning information
53.15 (1) Distributors, retailers and other persons shall provide the Smart Metering Entity with such information as it requires to fulfil its objects or conduct its business activities.
Restrictions on the Smart Metering Entity
(2) If the Smart Metering Entity has provided access to a distributor, retailer or another person to information under this Part, it shall not engage in a business activity prescribed by regulation if,
(a) the person to whom access has been provided is also engaged in the business activity; and
(b) the access was granted for the purpose of the person engaging in the business activity.
Obligations of distributors, etc., re: installing meters
53.16 (1) When a distributor or any person licensed by the Board to do so installs a smart meter, metering equipment, systems and technology and any associated equipment, systems and technologies or replaces an existing meter, the distributor or person shall use a meter, metering equipment, systems and technology and associated equipment, systems and technologies of a type, class or kind prescribed by regulation or that meets the criteria or requirements prescribed by regulation or mandated by a code issued by the Board or by an order of the Board for the classes of property or classes of consumers prescribed by regulation or required by the Board.
Same
(2) A regulation, code or order referred to in subsection (1) may require that a distributor or other person take certain actions and may require that the actions be taken within a specified time.
Exclusive authority of Board
(3) A regulation referred to in subsection (1) may provide the Board with exclusive authority to approve or authorize the meters, the metering equipment, systems and technology and associated equipment, systems and technologies after a prescribed date.
Obligations of distributors, etc., re: procurement, contracts or arrangements
(4) When a distributor or any person licensed by the Board to conduct the activities referred to in subsection (1) enters into a procurement process, contract or arrangement in relation to the smart metering initiative, the procurement process, contract or arrangement shall meet the criteria or requirements prescribed by regulation or mandated by a code issued by the Board or by an order of the Board.
Sub-metering: condominiums
53.17 (1) Despite the Condominium Act, 1998 and any other Act, a distributor and any other person licensed by the Board to do so shall, in the circumstances prescribed by regulation, install a smart meter, metering equipment, systems and technology and associated equipment, systems and technologies or smart sub-metering systems, equipment and technology and any associated equipment, systems and technologies of a type prescribed by regulation, in a property or class of properties prescribed by regulation at a location prescribed by regulation and for consumers or classes of consumers prescribed by regulation at or within the time prescribed by regulation.
Non-application of registered declaration
(2) If a smart meter or smart sub-metering system is installed in accordance with subsection (1) in respect of a unit of a condominium, the distributor, retailer or any other person licensed to conduct activities referred to in subsection (1) shallbill the consumer based on the consumption or use of electricity by the consumer in respect of the unit despite a registered declaration made in accordance with the Condominium Act, 1998.
Priority over registered declaration
(3) Subsection (2) applies in priority to any registered declaration made in accordance with the Condominium Act, 1998 or any by-law made by a condominium corporation registered in accordance with that Actand shall take priority to the declaration or by-law to the extent of any conflict or inconsistency.
Exclusive authority of Board
(4) A regulation referred to in subsection (1) may provide the Board with exclusive authority to approve or authorize, after a prescribed date,
(a) the smart meter, metering equipment, systems and technology and any associated equipment, systems and technologies; and
(b) the smart sub-metering systems, equipment and technology and any associated equipment, systems and technologies.
Prohibition re: discretionary metering activities
53.18 (1) On and after November 3, 2005, no distributor shall conduct discretionary metering activities unless the distributoris authorized to conduct the activity by this Act, a regulation, an order of the Board or a code issued by the Board or it is required to do so under the Electricity and Gas Inspection Act (Canada).
Definition
(2) For the purpose of this section,
"discretionary metering activity" means the installation, removal, replacement or repair of meters, metering equipment, systems and technology and any associated equipment, systems and technologies which is not mandated by the Electricity and Gas Inspection Act (Canada), by regulation, by an order of the Board or by a code issued by the Board or authorized by a regulation made under this Act.
Procurement contracts, transition
53.19 (1) The Minister may direct the Smart Metering Entity to assume, as of the date the Minister considers appropriate, responsibility for exercising all powers and performing all duties of the Crown, including powers and duties to be exercised and performed through an agency of the Crown,
(a) under any request for proposals, draft request for proposals, another form of procurement solicitation issued by the Crown or through an agency of the Crown or any other initiative pursued by the Crown or through an agency of the Crown, which relate to the government's smart metering initiative that was issued or pursued after November 3, 2005 and before January 1, 2008; and
(b) under any contract that relates to a procurement that was entered into by the Crown or an agency of the Crown pursuant to a request for proposal, a draft request for proposal or another form of procurement solicitation referred to in clause (a).
Release of the Crown, etc.
(2) As of the day specified in the Minister's direction under subsection (1), the Smart Metering Entity shall assume responsibility in accordance with that subsection and the Crown and any Crown agency are released from any and all liabilities and obligations with respect to the matters for which the Smart Metering Entity has assumed responsibility.
Reimbursement of costs incurred by the Crown
53.20 (1) The Smart Metering Entity shall reimburse the Crown or, if so directed by the Minister, an agency of the Crown for costs relating to the Smart Metering Entity, a procurement contractor a matter within the objects of the Smart Metering Entity, if,
(a) the costs were incurred by the Crown or an agency of the Crown after November 3, 2005and before January 1, 2008; or
(b) the liability of the Crown or an agency of the Crown for the costs arose during the period described in clause (a).
Payment of reimbursement
(2) The Smart Metering Entity shall make the reimbursement by making one or more payments in such amount or amounts at such time or times as may be determined by the Minister.
Minister's determinations final
(3) The determinations of the Minister under subsection (2) are final and conclusive and shall not be stayed, varied or set aside by any court.
Regulations
53.21 (1) The Lieutenant Governor in Council may make regulations,
(a) designating an entity as the Smart Metering Entity;
(b) prescribing the name of the Smart Metering Entity;
(c) governing the smart metering initiative;
(d) authorizing the Smart Metering Entity to have exclusive authority to conduct the metering activities referred to in section 53.8;
(e) prescribing objects for the purposes of section 53.8;
(f) governing the collection, use and disclosure of information relating to consumers' consumption or use of electricity, including personal information;
(g) prescribing, for the purposes of subsection 53.11 (1), conditions, restrictions, criteria or requirements to be included in the Smart Metering Entity's articles of incorporation and in the articles of incorporation of such of its subsidiaries as may be prescribed;
(h) prescribing subsidiaries of the Smart Metering Entity for the purposes of subsection 53.11 (1);
(i) prescribing provisions of the Business Corporations Act that do not apply to the Smart Metering Entity or to any of its subsidiaries that are prescribed;
(j) prescribing transactions or arrangements for the purposes of subsection 53.12 (1) and conditions or restrictions that apply to them;
(k) governing smart meters and the installation and maintenance of smart meters, metering equipment, systems and technology and any associated equipment, systems and technologies;
(l) identifying actions to be taken by the Smart Metering Entity, distributors and other persons licensed by the Board in respect of the installation of prescribed meters, metering equipment, systems and technology and any associated equipment, systems and technologiesat prescribed locations throughout Ontario or for prescribed classes of properties and prescribed classes of consumers in priority to other locations or classes of property or classes of consumers and prescribing the time within which such actions must be taken;
(m) prescribing the date for the purpose of subsections 53.16 (3) and 53.17 (4), as the case may be;
(n) prescribing criteria or requirements that the procurement process, contract or arrangement must meet for the purpose of subsection 53.16 (4);
(o) governing the installation of smart meters and smart sub-metering systems for the purposes of section 53.17, including sub-metering equipment and technology and any associated equipment, systems and technologies;
(p) prescribing the circumstances in which smart meters or smart sub-metering systems shall be installed under section 53.17, including sub-metering equipment and technology and any associated equipment, systems and technologies, the property or classes of property in which they are to be installed, the consumers or classes of consumers for which they are to be installed and the time by or within which they must be installed;
(q) authorizing activity as discretionary metering activity for the purpose of section 53.18;
(r) prescribing measures to be taken by the Smart Metering Entity to facilitate the achievement of the targets associated with the smart metering initiative;
(s) identifying specific objectives or criteria applicable to the Smart Metering Entity's metering and telecommunications technologies;
(t) approving, with respect to a class of consumers, meters or a class of meters and metering equipment, systems and technology and associated equipment, systems and technologies to be installed by a distributor or a person licensed by the Board to do so, including approving or fixing the maximum costs of the meters and metering equipment, systems and technology and associated equipment, systems and technologies and specifying criteria which any one of them must meet.
General or specific
(2) A regulation may be general or specific in its application.
Commencement
3. (1) This section comes into force on the day the Energy Conservation Responsibility Act, 2006 receives Royal Assent.
Same
(2) Sections 1 and 2 come into force on a day to be named by proclamation of the Lieutenant Governor.
SCHEDULE C
AMENDMENTS TO THE
ONTARIO ENERGY BOARD ACT, 1998
1. Section 3 of the Ontario Energy Board Act, 1998 is amended by adding the following definitions:
"Smart Metering Entity" means the corporation incorporated, the limited partnership or the partnership formed or the entity designated pursuant to section 53.7 of the Electricity Act, 1998; ("Entité responsable des compteurs intelligents")
"smart metering initiative" means those policies of the Government of Ontario related to its decision to ensure Ontario electricity consumers are provided, over time, with smart meters; ("initiative des compteurs intelligents")
2. The Act is amended by adding the following sections:
Directives re smart metering initiative
28.3 (1) The Minister may issue, and the Board shall implement, directives approved by the Lieutenant Governor in Council relating to the government's smart metering initiative.
Directives re licence conditions
(2) The directives may require the Board, in the manner specified in the directives, to amend conditions in licences issued by the Board that relate to the Smart Metering Entity, distributors, retailers and transmitters or licences issued pursuant to section 57, including the following:
1. Conditions granting the exclusive right to the Smart Metering Entity to carry out any or all of its objects set out in section 53.8 of the Electricity Act, 1998.
2. Conditions granting the exclusive right to store information and data derived from smart meters to the Smart Metering Entity, including conditions in respect of the manner in which the information and data is stored.
3. Conditions providing for performance standards to be achieved by the Smart Metering Entity.
4. Conditions identifying arrangements and agreements, including procurement, service or operating arrangements or agreements, to be entered into by the Smart Metering Entity, distributors, transmitters, retailers or other persons and providing that the arrangements or agreements must contain specific conditions, restrictions, criteria or requirements relating to the arrangements or agreements.
5. Conditions providing for circumstances in which the Smart Metering Entity shall provide a person with access to information and data relating to consumers' consumption or use of electricity collected pursuant to paragraph 2 of section 53.8 of the Electricity Act, 1998, including conditions relating to the protection of privacy.
6. Conditions providing the Smart Metering Entity with the authority to conduct its metering activities in relation to the distribution of gas.
7. Conditions providing the Minister with exclusive authority to approve the base design, requirements, specifications and performance standards for smart meters, metering equipment, systems and technology and associated equipment, systems and technologies or classes of smart meters, equipment, systems and technology to be installed for prescribed classes of property and prescribed classes of consumers.
8. After a date prescribed by regulation made under the Electricity Act, 1998, conditions providing the Board with exclusive authority to approve the base design, requirements, specifications and performance standards for smart meters, metering equipment, systems and technology and associated equipment, systems and technologies or classes of smart meters, equipment, systems and technology to be installed for prescribed classes of property and prescribed classes of consumers.
Directives re amending conditions in licences
(3) A directive may require the Board, in the manner specified in the directive, to amend conditions in licences granted to the Smart Metering Entity, distributors, transmitters, retailers or others granting the Smart Metering Entity exclusive jurisdiction in Ontario with respect to some or all of the activities it is authorized to undertake under Part IV.2 of the Electricity Act, 1998.
Publication
(4) A directive issued under this section shall be published in The Ontario Gazette.
No hearing
(5) The Board shall amend the conditions as required by a directive without holding a hearing.
Directives re regulatory and accounting treatment of costs
28.4 The Minister may issue, and the Board shall implement, directives approved by the Lieutenant Governor in Council in respect of the regulatory and accounting treatment of costs in orders made under section 78 and associated with meters owned before January 1, 2006 to ensure that distributors, transmitters, retailers or other persons are not financially disadvantaged by the implementation of the smart metering initiative.
3. Section 36 of the Act is amended by adding the following subsection:
Order of Board re Smart Metering Entity
(1.1) Neither the Smart Metering Entity nor any other person licensed to do so shall conduct activities relating to the metering of gas except in accordance with an order of the Board, which is not bound by the terms of any contract.
4. Section 57 of the Act is amended by striking out the portion before clause (a) and substituting the following:
Requirement to hold licence
57. Neither the OPA nor the Smart Metering Entity shall exercise their powers or perform their duties under the Electricity Act, 1998 unless licensed to do so under this Part and no other person shall, unless licensed to do so under this Part,
. . . . .
5. (1) Section 78 of the Act is amended by adding the following subsections:
Order re the Smart Metering Entity
(2.1) The Smart Metering Entity shall not charge for meeting its obligations under Part IV.2 of the Electricity Act, 1998 except in accordance with an order of the Board, which is not bound by the terms of any contract.
. . . . .
Rates
(3.0.1) The Board may make orders approving or fixing just and reasonable rates for the Smart Metering Entity in order for it to meet its obligations under this Act or under Part IV.2 of the Electricity Act, 1998.
Orders re deferral or variance accounts
(3.0.2) The Board may make orders permitting the Smart Metering Entity or distributors to establish one or more deferral or variance accounts related to costs associated with the smart metering initiative, in the circumstances prescribed in the regulations.
Orders re recovery of smart metering initiative costs
(3.0.3) The Board may make orders relating to the ability of the Smart Metering Entity, distributors, retailers and other persons to recover costs associated with the smart metering initiative, in the situations or circumstances prescribed by regulation and the orders may require them to meet such conditions or requirements as may be prescribed, including providing for the time over which costs may be recovered.
(2) Subsection 78 (6) of the Act is repealed and the following substituted:
Conditions, etc.
(6) An order under this section may include conditions, classifications or practices applicable to the Smart Metering Entity in respect of meeting its obligations and to the transmission, distribution or retailing of electricity, including rules respecting the calculation of rates.
6. Subsection 88 (1) of the Act is amended by adding the following clauses:
(g.6.1) prescribing the circumstances in which the Board may make orders permitting the Smart Metering Entity or distributors to establish deferral or variance accounts for the purposes of subsection 78 (3.0.2);
(g.6.2) in respect of orders relating to the ability of the Smart Metering Entity, distributors, retailers and other persons to recover costs associated with the smart metering initiative for the purposes of subsection 78 (3.0.3);
7. Clause 112.1 (b) of the Act is repealed and the following substituted:
(b) section 25.33, 25.34, 26, 27, 28, 29, 31, 53.11, 53.13, 53.15, 53.16, 53.17 or 53.18of the Electricity Act, 1998, or any other provision of that Act that is prescribed by the regulations,
Commencement
8. (1) This section comes into force on the day the Energy Conservation Responsibility Act, 2006 receives Royal Assent.
Same
(2) Sections 1 to 7 come into force on a day to be named by proclamation of the Lieutenant Governor.
SCHEDULE D
AMENDMENT TO THE
CONSERVATION AUTHORITIES ACT
1. Subsection 35 (2) of the Conservation Authorities Act is repealed.
Commencement
2. (1) This section comes into force on the day the Energy Conservation Responsibility Act, 2006 receives Royal Assent.
Same
(2) Section 1 comes into force on a day to be named by proclamation of the Lieutenant Governor.
EXPLANATORY NOTE
This Explanatory Note was written as a reader's aid to Bill 21 and does not form part of the law. Bill 21 has been enacted as Chapter 3 of the Statutes of Ontario, 2006.
This Bill contains four Schedules. The purpose of each Schedule is set out below.
Schedule A
Schedule A enacts the Energy Conservation Leadership Act, 2006.
Section 2 of the Act permits the Lieutenant Governor in Council to, by regulation, require persons who are selling, leasing or otherwise transferring an interest in real property or personal property to provide such information as may be prescribed in the circumstances that are prescribed.
Section 3 of the Act authorizes the Lieutenant Governor in Council, in order to assist in the removal of barriers to and to promote opportunities for energy conservation to, by regulation, designate goods, services and technologies. Certain restrictions in law on the use of these goods, services or technologies are declared to be inoperative in the circumstances described in section 3.
Section 4 of the Act authorizes the Lieutenant Governor in Council, by regulation, to require public agencies to establish energy conservation plans. Each energy conservation plan must be published and implemented in accordance with the regulations. Section 5 of the Act authorizes two or more persons to establish, publish and administer joint plans.
Section 6 of the Act authorizes the Lieutenant Governor in Council, by regulation, to require public agencies to consider energy conservation and energy efficiency when they are acquiring goods and services and when they are making capital investments.
Section 7 of the Act authorizes the Minister of Energy to enter into agreements to promote energy conservation.
Section 8 of the Act provides for a compliance order to be issued if a person contravenes or fails to comply with a requirement established under the Act or if a person prevents or interferes with another person's permitted use of designated goods, services, technologies and practices.
Section 9 of the Act provides for the designation of enforcement officers for the purposes of the Act.
Schedule B
Schedule B enacts amendments to the Electricity Act, 1998 to support the government's smart metering initiative. Section 1 of the Schedule defines certain terms in respect of the smart metering initiative. Section 2 enacts Part IV.2 of the Act, the Smart Metering Entity. Part IV.2 is composed of sections 53.7 to 53.21 of the Act.
Section 53.7 permits the Minister to establish the Smart Metering Entity in a number of ways, including through incorporation, forming a limited partnership, forming a partnership or designating an entity by regulation as the Smart Metering Entity.
The objects in the case of a corporation or the nature of its business operations in the case of a partnership are set for the Smart Metering Entity in section 53.8. Neither the Smart Metering Entity nor any of its subsidiaries are agents of Her Majesty for any purpose (section 53.9). If the Smart Metering Entity is a corporation, it has the powers of a natural person except as limited under the Act (section 53.10).
If the Smart Metering Entity is a corporation, regulations may require that its articles of incorporation and those of any prescribed subsidiary must contain prescribed conditions, restrictions, criteria or requirements (subsection 53.11 (1)). Nothing in the Part prevents the Smart Metering Entity, if it is incorporated, from participating in partnerships, limited partnerships, joint ventures or other transactions or arrangements, subject to prescribed conditions or restrictions (subsection 53.12 (1)). The Smart Metering Entity is required to provide the reports and information that the Minister requires (section 53.13).
In carrying out its objects or business activities, the Smart Metering Entity may collect information and data related to the consumption or use of electricity and may manage and aggregate the data (section 53.14).
Distributors, retailers and other persons are required to provide the Smart Metering Entity with the information it requires to fulfil its objects or conduct its business (subsection 53.15 (1)).
Distributors and other licensed persons are required to install specified meters for prescribed or required classes of property within the required time (section 53.16).
Despite the Condominium Act, 1998, distributors and other licensed persons may be required to install smart meters in the prescribed circumstances. If a smart meter is required to be installed in respect of a unit of a condominium, the consumer shall be billed based on the consumption or use of electricity despite a registered declaration made in accordance with the Condominium Act, 1998 (section 53.17).
Distributors and other persons are prohibited from conducting discretionary metering activities as of the date the Bill is introduced (subsection 53.18 (1)).
The Minister of Energy may require the Smart Metering Entity to assume responsibility for requests for proposals or similar requests that are issued after the Bill is introduced or for contracts that relate to procurement that were entered into by the Crown or a Crown agency as the result of such a request for proposal (subsection 53.19 (1)).
The Smart Metering Entity is required to reimburse the Crown or an agency of the Crown for costs incurred in relation to the Smart Metering Entity, a procurement contract or a matter within its objects where the costs were incurred between the November 3, 2005 and January 1, 2008. The Minister shall make a determination of these costs (section 53.20).
The Lieutenant Governor in Council is given broad powers to make regulations with respect to the Smart Metering Entity and the smart metering initiative (section 53.21).
Schedule C
Schedule C enacts technical amendments to the Ontario Energy Board Act, 1998 that are consequential to the creation of the Smart Metering Entity by the amendments to the Electricity Act, 1998, as enacted by Schedule B, and to the implementation of the government's smart metering initiative.
The Schedule amends the Act by adding section 28.3. This section permits the Minister to issue Cabinet-approved directives, which the Board must implement, that relate to the government's smart metering initiatives. The directives may require the Board to amend conditions in licences issued by the Board. Directives may also be issued with respect to regulatory and accounting treatment of costs to ensure that distributors, transmitters, retailers or other persons are not financially disadvantaged by the implementation of the government's smart metering initiative (section 28.4).
Section 36 of the Act is amended by adding a subsection that prohibits the Smart Metering Entity from conducting its activities relating to the metering of gas except in accordance with an order of the Board.
Section 57 of the Act is amended so that the Smart Metering Entity cannot exercise its powers or duties under the Electricity Act, 1998 unless it is licensed to do so under the Ontario Energy Board Act, 1998.
There are amendments to section 78 of the Act dealing with the Smart Metering Entity recovering its costs.
Clause 112.1 (b) of the Act is amended by adding certain of the provisions of the Electricity Act, 1998 enacted by Schedule B to the list of enforceable provisions.
Schedule D
Schedule D repeals subsection 35 (2) the Conservation Authorities Act. The effect of the repeal is to permit conservation authorities to market or sell water power created upon lands vested in them.