Vol. 150, No. 10 — May 18, 2016

Registration

SI/2016-23 May 18, 2016

ENERGY SAFETY AND SECURITY ACT

Order Fixing January 1, 2017 as the Day on which Certain Provisions of the Nuclear Liability and Compensation Act Come into Force

P.C. 2016-302 May 6, 2016

His Excellency the Governor General in Council, on the recommendation of the Minister of Natural Resources,

EXPLANATORY NOTE

(This note is not part of the Order.)

Proposal

To set a coming into force date of January 1, 2017, for the Nuclear Liability and Compensation Act (Part 2 of the Energy Safety and Security Act), on the recommendation of the Minister of Natural Resources, pursuant to subsection 129(1) of the Energy Safety and Security Act.

Objective

The objective is to set a coming into force date of January 1, 2017, for the Nuclear Liability and Compensation Act.

Background

The Nuclear Liability and Compensation Act (the Act) is intended to replace the current Nuclear Liability Act to provide a stronger legislative framework that will better address the question of liability and compensation after a nuclear incident. The Act, as part 2 of the Energy Safety and Security Act received royal assent on February 26, 2015.

Nuclear installations that are subject to the Act will include nuclear power plants, research reactors, nuclear fuel processing plants, as well as facilities for managing used nuclear fuel.

The Act establishes that operators of nuclear installations are absolutely and exclusively liable for nuclear damage resulting from a nuclear accident at their installation.

Before the Act can come into force, key regulations need to be finalized in the Canada Gazette, Part II; financial security mechanisms need to be approved by the Minister of Natural Resources pursuant to sections 28, 29 and 31 of the Act; and sufficient time must be given to operators of nuclear installations to select their respective mix of financial security mechanisms.

Implications

A coming into force date of January 1, 2017, for the Act will permit sufficient time for the finalization of regulations, financial security mechanisms, and for operators of nuclear installations to select their respective mix of financial security mechanisms.

Consultation

The Department of Natural Resources has held extensive consultations with the main groups affected by the proposal, namely the operators of nuclear installations, provincial governments of nuclear power generating provinces (i.e. Ontario, New Brunswick and Quebec), and the nuclear insurers.

Departmental contact

Jacques Hénault
Advisor
Nuclear Liability
Energy Sector
Natural Resources Canada
Telephone: 343-292-6184
Email: jacques.henault@canada.ca