Energy Supplies Emergency Act (R.S.C., 1985, c. E-9)

Marginal note:Instructions and reports

• 14 (1) The Board shall act under the instructions of the Governor in Council and report to the Minister of Natural Resources from time to time on its activities under this Act.

• Marginal note:Report to Minister

  (2) During any period in which a mandatory allocation program or a rationing program is in effect under this Act, the Board shall report in writing to the Minister of Natural Resources at the end of every month on its activities under this Act in that month.

• Marginal note:Tabling

  (3) All reports referred to in subsection (2) shall be laid before Parliament forthwith on the making thereof or, if Parliament is not then sitting, on any of the first fifteen days next thereafter that Parliament is sitting.

PART IMandatory Allocation of Supplies

Marginal note:Declaring national emergency

• 15 (1) When the Governor in Council is of the opinion that a national emergency exists by reason of actual or anticipated shortages of petroleum or disturbances in the petroleum markets that affect or will affect the national security and welfare and the economic stability of Canada, and that it is necessary in the national interest to conserve the supplies of petroleum products within Canada, the Governor in Council may, by order, so declare and by that order authorize the establishment of a program for the mandatory allocation of petroleum products within Canada in accordance with this Act.

• Marginal note:Effective date

  (2) An order made under subsection (1) is effective on the day on which it is made, but a motion for confirmation of the order shall be laid before each House of Parliament and be considered in accordance with section 46.

• Marginal note:Effect of revocation

  (3) Where an order made under subsection (1) is revoked, any mandatory allocation program instituted as a result of that order immediately terminates, but without prejudice to the previous operation of that program or anything duly done or suffered thereunder or any offence committed or any punishment incurred.

16 to 18 [Repealed, R.S., 1985, c. 22 (4th Supp.), s. 67]

Marginal note:Mandatory allocation program

• 19 (1) Where an order is made under section 15, the Board shall immediately prepare a mandatory allocation program in respect of petroleum to assure sufficient supplies of that product in the various parts of Canada by providing for a national and equitable distribution of petroleum products from the suppliers to the wholesale customers thereof.

• Marginal note:Contents of program

  (2) A mandatory allocation program shall

  • (a) designate the regions in which the program is to operate if it is not to extend to the whole of Canada;

  • (b) specify the petroleum products, the supplies of which are to be controlled under the program;

  • (c) set out the priorities of use or supply, or both, of the controlled product; and

  • (d) outline a system for allocation of supplies of the controlled product.

• Marginal note:Duration

  (3) If approved by the Governor in Council, a mandatory allocation program comes into force on such day as the Governor in Council may, by order, fix and terminates as provided under section 44.

Marginal note:Amending program

• 20 (1) The Governor in Council may, by order, amend a mandatory allocation program

  • (a) by providing that its operation be extended to other regions or all regions of Canada, or that its operation be reduced by excluding regions from the operation of the program;

  • (b) by adding any petroleum product to the program or removing any controlled product from the program; and

  • (c) by changing the priorities of use or supply, or both, of a controlled product and the outline of the system for allocation of supplies of a controlled product as set out or outlined at the commencement of the program.

• Marginal note:Other related products

  (2) The Governor in Council may, by order, add any product that is manufactured wholly or in part from petroleum to the mandatory allocation program and thereupon that product becomes a controlled product for the purpose of the allocation of the supplies thereof in Canada.

21 [Repealed, R.S., 1985, c. 22 (4th Supp.), s. 68]

Marginal note:Allocation of alternative fuels

• 22 (1) Where it is considered necessary to do so for the purpose of conserving the available supplies of such petroleum products as have been included in a mandatory allocation program, the Governor in Council may, by order, amend the mandatory allocation program by adding any alternative fuel thereto and establishing mandatory allocation thereof.

• Marginal note:Application of Act

  (2) When an alternative fuel has been added to the mandatory allocation program, this Act applies, with such modifications as the circumstances require, in respect of the alternative fuel to the like extent as if that alternative fuel were a petroleum product.

• Marginal note:Definition of “alternative fuel”

  (3) In this section, alternative fuel means natural gas and any product obtained therefrom that is capable of being used as a fuel and coal and any product obtained therefrom that is capable of being so used.

Marginal note:Supporting activities

23 Instead of including an alternative fuel, as defined in section 22, within a mandatory allocation program under this Act, the Board may, with the approval of the Governor in Council, enter into arrangements with provincial authorities whereby the alternative fuel will be regulated as to allocation of supply and pricing within the provinces in such manner as will best conserve the supplies within Canada of petroleum products.

Marginal note:Electric power

24 The Board may, with the approval of the Governor in Council, enter into arrangements with provincial authorities for the regulation and pricing by those provincial authorities of the supplies of electric power produced or used within a province for the purpose of reducing the demands on the available supplies within Canada of a petroleum product.

Marginal note:Regulations

• 25 (1) With the approval of the Governor in Council, the Board may make such regulations as may be necessary in the opinion of the Board to carry out effectively a mandatory allocation program for any controlled product and, without limiting the generality of the foregoing, may make regulations

  • (a) authorizing the Board to prescribe by order the dates when the allocation of supplies of a particular controlled product will commence;

  • (b) respecting the manner in which available supplies of a controlled product are to be determined and apportioned to wholesale customers;

  • (c) respecting the assigning of suppliers for wholesale customers and the extent to which those assigned suppliers must supply the wholesale customers with any controlled product;

  • (d) respecting the accumulation, storage and disposal of reserve supplies and inventory of any controlled product;

  • (e) respecting the supplying of information relating to past, present and forecast sales and purchases of the controlled product by suppliers and wholesale customers;

  • (f) respecting the keeping of accounts relating to the sales and purchases of any controlled product by suppliers and wholesale customers, and the making of those accounts available to the Board and its agents or mandataries;

  • (g) respecting the prohibiting or limiting of the sale of a controlled product by or to, or the purchase of a controlled product by, a wholesale customer in cases where the controlled product may be used in a wasteful or non-essential use and prescribing wasteful and non-essential uses of the controlled product;

  • (h) respecting the quality characteristics required of any controlled product being supplied to a class of wholesale customers or for a particular use;

  • (i) respecting such modification or revocation of existing contracts for the supply of any controlled product by suppliers and wholesale customers as may be necessary to make an allocation of supplies of the controlled product effective, and providing a means of determining what type of supply contract should be modified or revoked and in what circumstances;

  • (j) respecting the transfer of supplies of any controlled product between suppliers and between suppliers and wholesale customers and the transfer of wholesale customers between suppliers to achieve an equitable balance of sales among suppliers or to preserve the existing market position of suppliers in so far as practicable;

  • (k) respecting pooling and other arrangements that may be made by and between suppliers to supply wholesale customers for which those suppliers may have allocation obligations, and providing guidelines therefor in respect of price, quality and quantity provisions in contracts affected by those arrangements;

  • (l) respecting the prices at which any controlled product may be sold by suppliers to wholesale customers in particular market areas or generally and the charges for transportation between market areas except for transportation by means of a pipeline in respect of which there is in force a certificate or other authority to operate a pipeline issued under the Canadian Energy Regulator Act;

  • (m) determining market areas for any controlled product;

  • (n) respecting credit terms or payment schedules for wholesale customers required to assure the continuance, as nearly as may be, of the normal business practices of suppliers of any controlled product in a market area during the period of mandatory allocation of the controlled product;

  • (o) authorizing the reduction or withholding by suppliers of supplies of any controlled product to wholesale customers until any orders of the Board made pursuant to any regulations have been complied with;

  • (p) respecting the amelioration of hardship in particular cases arising out of inequities in or distortions of the allocation of supplies of any controlled product because of special circumstances;

  • (q) ensuring, in so far as practicable, the maintenance of supplies of the controlled product to independent retailers of that product consistent with any priorities of use established by the Board;

  • (r) providing for the making by the Board of such orders as may be necessary to effect any of the purposes for which regulations may be made under this section; and

  • (s) respecting such other matters or things, whether or not of a like kind to those referred to in paragraphs (a) to (r), as the Board considers necessary for the purpose of carrying out a mandatory allocation program for a controlled product.

• Marginal note:Extent of authority

  (2) A regulation under this Act may be conditional or unconditional, qualified or unqualified, and may be general or restricted to a specified area or a specified controlled product, a specified supplier or wholesale customer or a specified mediate or immediate use of a controlled product.

Marginal note:Regulating imports

• 26 (1) Where the Governor in Council considers it expedient to do so, he may order the Board to regulate the importation of any controlled product into Canada indefinitely or for such period as may be specified in the order.

• Marginal note:Regulations

  (2) For the purpose of carrying out an order under subsection (1), the Board may make regulations

  • (a) respecting the quantities and qualities of any controlled product imported or to be imported during such periods as may be prescribed by the Board;

  • (b) respecting the storage of imported supplies of any controlled product in market areas; and

  • (c) respecting such other matters or things in relation to the importation of the controlled product as may be necessary to support a mandatory allocation program for the controlled product.

• Marginal note:Consultation with Canadian Energy Regulator

  (3) Before making regulations under this section, the Board shall consult with the Canadian Energy Regulator to determine the extent to which that Board is regulating the importation of the controlled product in respect of which regulations are to be made under this section.