Government of Canada
Canada is proactively developing the legislative and regulatory framework to enable the development and growth of offshore renewable energy. In October 2024, Bill C-49, An Act to amend the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act?and the Canada-Newfoundland and Labrador Offshore Petroleum Resources Accord Implementation Act?and to make consequential amendments to other Acts reached Royal Assent, establishing the regulatory framework for joint management of offshore renewables. This legislation supports offshore renewable energy projects such as offshore wind, wave, and tidal energy off the coasts of Nova Scotia and Newfoundland and Labrador. It also expands the mandate of the Offshore Petroleum Boards to the Offshore Energy Regulators, serving as the lifecycle regulators for offshore renewable energy projects in the Canada-Nova Scotia and Canada-Newfoundland and Labrador Offshore Accord Areas. ??
In 2024, the Government of Canada finalized and brought into force the federal Canada Offshore Renewable Energy Regulations (CORER), which establish comprehensive requirements related to safety, security, and environmental protection for the offshore renewable energy sector under the Canadian Energy Regulator Act. The CORER provides industry and other stakeholders with a clear understanding of the regulatory expectations and ensure project proponents adopt best practices and best available technologies throughout the lifecycle of offshore renewable energy projects, from site assessment through construction, operations, and finally, decommissioning and abandonment. These federal regulations do not apply to tidal energy projects in Canada’s Bay of Fundy, as these tidal projects fall primarily under the jurisdiction of the provincial government of Nova Scotia.
Forthcoming regulations under the amended Accord Acts will provide similar regulatory certainty under the Canada-Nova Scotia and Canada-Newfoundland and Labrador joint management areas and ensure a coherent offshore renewable regulatory regime across Canada. Through these measures, Canada is establishing the legislative and regulatory regime to enable a competitive and sustainable offshore renewable energy industry while upholding the highest standards for?safety, security, and environmental protection.
In June 2024, Fisheries and Oceans Canada released the Blue Economy Regulatory Roadmap. This roadmap outlines actions the Government of Canada will take to support innovation and economic growth in Canada’s oceans. It focuses on five main areas, one of which is marine renewable energy and environmental protection. The roadmap advances four initiatives under the marine renewable energy and environmental protection theme, including the efforts outlined above to advance marine renewable energy legislation and regulations in the offshore. The remaining initiatives are focused on developing information products to clarify the project review process; exploring opportunities to improve review of clean growth projects; and supporting increased collaboration and coordination among federal departments in support and regulation of marine renewable energy projects. Updates on the progress of initiatives will be provided to partners and stakeholders as they are implemented.
In fall 2024, the Impact Assessment Agency of Canada (IAAC) launched a discussion paper to receive input on a review of the Physical Activities Regulations which includes a threshold for tidal and offshore wind projects to undergo an impact assessment.
In late 2024, the Government of Canada released its final Clean Electricity Regulations and Clean Electricity Strategy, designed to help Canada achieve a net-zero electricity grid by 2035, in close collaboration with provinces, territories, Indigenous partners, industry, and others.
Tidal Energy Task Force
In February 2024, the Task Force on Sustainable Tidal Energy Development in the Bay of Fundy (the “Tidal Energy Taskforce”), an initiative established by the Government of Canada to address regulatory challenges faced by the tidal industry, published its final report. The purpose of the Task Force was to:
build on work to date to clarify requirements for fish protection
improve transparency and methodology of risk assessment and decision making on tidal turbine deployments
reduce turnaround time for regulatory decisions for tidal energy projects in the Bay of Fundy
A key outcome of the Tidal Energy Task Force is the establishment of a “Revised” Staged Approach to authorizations under the federal Fisheries Act. This approach is intended to provide a fifteen-year conditional authorization for the staged deployment of small arrays of tidal devices with clear requirements for fish protection and monitoring. Although designed to address the conditions in Nova Scotia’s Minas Passage, the revised staged approach could be adapted to tidal energy projects elsewhere in the Bay of Fundy.
Other key recommendations and actions from the Tidal Energy Task Force included:
Establishing of a Risk and Monitoring Working Group (“Working Group”) to support improved approaches and technologies for risk assessment and monitoring;
Potentially enhancing the role of the Fundy Ocean Research Centre for Energy (FORCE) as a hub that integrates technical, environmental, and regulatory considerations while fostering innovation, practical applied science, and leadership;
A commitment by Fisheries and Oceans Canada (DFO) to improve the understanding of risk assessment and monitoring by sharing information on its national approach to risk assessment, developing information materials on monitoring requirements for tidal energy proponents, and supporting the Working Group;
Establishment of an oversight committee to track and monitor progress of its deliverables and to provide oversight and accountability to the Risk and Monitoring Working Group.
Nova Scotia
In September 2024, the Government of Nova Scotia introduced Bill 471 – Advancing Nova Scotia Opportunities Act, an important piece of legislation to help ensure offshore wind and tidal energy developments can contribute to achieving the province’s clean electricity and net zero goals.
The Bill proposed amendments to the Marine Renewable-energy Act that create more flexibility for tidal energy development by creating the ability to split an existing license into two or more licenses. This ability provides greater alignment with other federal and provincial regulatory requirements and creates more options for industry to plan and deliver projects, while maintaining existing requirements for environmental protection. The Bill reached Royal Assent on September 20th.
MARKET INCENTIVES
Government of Canada
As opportunities and interest in Canada’s marine renewable energy sector increase, the Government of Canada’s 2024 Budget outlined measures that will help support and drive project development and growth in ocean energy sectors. These measures include the launch of the Clean Economy Investment Tax Credits through the finalization of legislative processes. These include a refundable 15% Clean Electricity Investment Tax Credit for eligible investments in wave, tidal, and other clean electricity technologies, a refundable 30% Clean Manufacturing Investment Tax Credit for new machinery and equipment used to manufacture or process key clean technologies, and extract, process, or recycle key critical minerals, including renewable energy equipment, and a refundable 30% Clean Technology Investment Tax Credit for investments in eligible property such as machinery and equipment used to manufacture or process clean technologies.
PUBLIC FUNDING PROGRAMMES
Under its climate action plan, “A Healthy Environment and a Healthy Economy,” the Government of Canada launched the Smart Renewables and Electrification Pathways Program (SREPs) – a program providing up to $964 million over four years (from April 2021 to April 2025) for smart renewable energy and electrical grid modernization projects. This program is targeted at significantly reducing greenhouse gas emissions by encouraging the replacement of fossil-fuel generated electricity with renewables that can provide essential grid services while supporting Canada’s equitable transition to an electrified economy. Marine renewable projects are eligible for this program, and registrations and applications are currently open.
SREPs supports marine renewable energy projects under an “Emerging Technologies” program stream. Projects must have a 4 MW capacity or greater. If the project is Indigenous-owned the minimize size requirement is 500 kW. Up to 30% of project costs can be covered under SREPs to a maximum of $50 million.
Consenting processes
MARINE SPATIAL PLANNING POLICY
At the federal level, there is no existing marine spatial planning policy for ocean energy. Spatial planning for ocean energy takes place only in the province of Nova Scotia.
Pre-selected areas for tidal current energy development have been selected in the province of Nova Scotia, in the Bay of Fundy.
Site selection was determined, in-part, by a Strategic Environmental Assessment (SEA) on tidal energy development in the Bay of Fundy (FORCE). Resource assessments were also considered as part of the site selection. Another area in Nova Scotia that recently underwent a SEA is Cape Breton Island, inclusive of the Bras d’Or Lakes.
The Oceans Act, Canada’s Oceans Strategy, and the Policy and Operational Framework for Integrated Management of Estuarine, Coastal and Marine Environments in Canada provide the policy framework and guide Canada’s approach to oceans management. Integrated Management efforts in Canada are being undertaken through an area-based approach that supports marine planning, management and decision-making at appropriate spatial scales, from regional to site-specific.
AUTHORITIES INVOLVED
The authorities involved in the consenting process are:
• Federal authorities: Fisheries and Oceans Canada, Transport Canada, Environment Canada, Canadian Environmental Assessment Agency, Employment and Social Development Canada, Public Works and Government Services, Aboriginal Affairs and Northern Development Canada.
• Province of Nova Scotia: Department of Energy, Department of Natural Resources, Department of Fisheries and Aquaculture, Department of Environment, Department of Labour and Advanced Education, Office of Aboriginal Affairs.
• Members of Nova Scotia’s Federal/Provincial One Window Committee on Tidal Energy:
- Federal: Atlantic Canada Opportunities Agency, Transport Canada, Natural Resources Canada, Fisheries and Oceans Canada, Canadian Environmental Assessment Agency, Environment Canada, Aboriginal Affairs and Northern Development Canada;
- Provincial: Energy, Natural Resources, Aboriginal Affairs, Fisheries and Aquaculture, Labour and Advanced Education, Environment, Economic and Rural Development and Tourism.
CONSENTING PROCESS
Within the province of Nova Scotia, the Department of Energy is responsible for managing the consenting process through a “one window committee” process, consisting of federal and provincial government departments/agencies with an interest in the marine environment and ocean energy.
At the federal level, authorizations required prior to the approval of marine renewable energy projects include land use, project activities, transmission, occupational health and safety, operational safety, environmental protection and navigation.
At the provincial level, in Nova Scotia projects are not able to proceed in an area that has not undergone a SEA.
At FORCE testing site, projects must be approved by the Minister of Energy and are selected through a competitive Request for Proposal process.
A key piece to Nova Scotia’s Marine Renewable Energy Act is the creation of a licensing and permitting system that will oversee the development of marine renewable energy projects. Any generator proceeding in a priority area without an approval will be in violation of the Act. A license will allow a project developer to carry out the business of extracting energy within a ‘marine renewable-electricity area’ (i.e., an area designated for development) through single or multiple devices. A permit will be issued to a temporary deployment of a device for the purposes of testing and demonstration. This system will ensure that projects proceed only after undergoing a thorough review by the Government and subject to effective Government oversight and monitoring.
ENVIRONMENTAL IMPACT ASSESSMENT
The Canadian version of an Environmental Impact Assessment (EIA), is typically required for projects.
A federal Environmental Assessment is required for tidal current projects 50 MW or greater. Tidal current projects less than 50 MW do not require a federal Environmental Assessment. If the tidal current project is located on federal lands (i.e. the federal seabed), then a federal Environmental Analysis is required. Tidal current projects less than 50 MW and located on provincial lands (i.e. the provincial seabed), are only subject to a provincial Environmental Assessment. In Nova Scotia, a provincial Environmental Assessment is required for tidal current projects greater than 2 MW. Projects can be subject to Environmental Assessments below these thresholds at either the federal or provincial level, subject to Ministerial discretion.
The Canadian Environmental Assessment Agency is the federal authority responsible for a federal Environmental Assessment.
Environmental Assessments usually require ongoing environmental effects monitoring throughout the lifecycle of a project.
LEGISLATION AND REGULATION
There is no legislation or regulations designed solely for the licensing of renewable energy activity in the offshore.
Nova Scotia’s Electricity Act and Renewable Electricity Regulations outline two paths for the development of tidal energy projects: at a community level and large-scale R&D level. The Regulations outline a comprehensive application process that projects must undergo in order to receive one of two feed-in tariff rates.
In 2011, Canada’s Federal Government established the Marine Renewable Energy Enabling Measures program to develop and present to Cabinet, by March 2016, a federal policy framework for administering marine renewable energy activities.
The Government of Nova Scotia passed the Marine Renewable Energy Act in 2015, which applies to Nova Scotia’s Bay of Fundy and the Bras d’Or lakes. This legislation ensures that marine renewable energy projects, including in-stream tidal, tidal range, offshore wind, wave and ocean currents, are developed in a manner that respects the environment and the interests of local communities; ensures increased consultation and provides for the safe, responsible and strategic development of the industry; and establishes a licensing and permitting system for the placement of marine renewable energy generators in those areas.
CONSULTATION
Consultations can occur as part of the SEA process.
Nova Scotia also undergoes engagement with stakeholders, ratepayers, and taxpayers primarily at the SEA stage, but also throughout the lifecycle of the project.
Statutory consultation required:
At the federal level, the Government of Canada has a legal duty to consult Aboriginal people when there are potential or established Aboriginal or treaty rights that may be adversely impacted by a contemplated Crown conduct, such as a marine renewable project approval.
Like the Government of Canada, the Government of Nova Scotia has a duty to consult with the First Nations of Nova Scotia, the Mi’kmaq.
Informal consultation activities:
There are two cooperative mechanisms for Canada and Nova Scotia Mi’kmaq consultation—the Canada-Nova Scotia Memorandum of Understanding (MOU) on Consultation Cooperation and the tri-partite Mi’kmaq/Nova Scotia/Canada Consultation Terms of Reference (TOR).
The Nova Scotia Department of Energy leads an Energy Consultation Table with the participation of federal authorities and the Mi'kmaq where provincial energy issues are discussed.
GUIDANCE AND ADVICE
The One Window Committee, along with the Province of Nova Scotia’s Marine Renewable Energy Strategy provide guidance to developers on potential permits/approvals, and review processes.
TEST CENTERS
The Fundy Ocean Research Centre for Energy (FORCE) has an approved Environmental Assessment for its full site, inclusive of its four deployment berths. As such, developers at the site do not have to undergo individual EAs. Developers are still required to provide applications to other relevant regulatory agencies.
The OES is organised under the auspices of the International Energy Agency (IEA) but is functionally and legally autonomous. Views, findings and publications of the OES do not necessarily represent the views or policies of the IEA Secretariat or its individual member countries.
