Section 12: Renewable Energy Credits1. The Minister may establish a system of renewable energy credits to encourage the development and use of renewable energy resources in Canada.2. A renewable energy credit shall be issued for each unit of electricity generated from a renewable energy resource.3. The Minister may establish criteria for the eligibility of renewable energy resources for the issuance of renewable energy credits.4. The Minister may establish a trading system for renewable energy credits, where credits may be bought and sold between parties.5. The Minister may establish penalties for non-compliance with the renewable energy credit system, including fines and revocation of licenses or permits.6. The Minister shall report annually to Parliament on the effectiveness of the renewable energy credit system in promoting the development and use of renewable energy resources in Canada.

Section 12 of the Canadian Renewable Energy Act allows the Minister to establish a system of renewable energy credits to encourage the development and use of renewable energy resources in Canada. The purpose of this article is to provide a detailed analysis of the legal framework surrounding renewable energy credits in Canada.

Facts: The Canadian government has been actively promoting the development and use of renewable energy resources as part of its commitment to reducing greenhouse gas emissions and combatting climate change. Section 12 of the Renewable Energy Act provides a legal framework for the establishment of a renewable energy credit system, which incentivizes the generation of electricity from renewable sources.

Relevant laws: The Renewable Energy Act is the primary statute governing renewable energy credits in Canada. Other relevant laws include the Canadian Environmental Protection Act, which regulates emissions from electricity generation facilities, and the Canadian Energy Regulator Act, which regulates the transmission and distribution of electricity across Canada.

Application of laws to facts: Under Section 12, a renewable energy credit is issued for each unit of electricity generated from a renewable energy resource. The Minister may establish criteria for the eligibility of renewable energy resources for the issuance of credits. The Minister may also establish a trading system for renewable energy credits, where credits may be bought and sold between parties. Non-compliance with the renewable energy credit system may result in penalties, including fines and revocation of licenses or permits. The Minister is required to report annually to Parliament on the effectiveness of the renewable energy credit system.

Key legal issues or questions: The key legal issues surrounding renewable energy credits in Canada include the criteria for eligibility, the establishment of a trading system, and penalties for non-compliance. There may also be questions regarding the effectiveness of the system in promoting the development and use of renewable energy resources.

Likely outcome: The likely outcome of any legal challenges to the renewable energy credit system will depend on the specific facts and circumstances of each case. However, given the Canadian government’s commitment to reducing greenhouse gas emissions and promoting renewable energy, it is likely that the courts would uphold the legality of the system.

Alternatives or different interpretations: There may be alternative interpretations of the Renewable Energy Act and its provisions regarding renewable energy credits. For example, some stakeholders may argue that the eligibility criteria are too restrictive, or that the penalties for non-compliance are too severe.

Risks and uncertainties: The main risk associated with the renewable energy credit system is that it may not be effective in promoting the development and use of renewable energy resources. There is also a risk of legal challenges to the system, which could result in delays or changes to the legal framework.

Advice to the client: Based on the current legal framework, it is advisable for clients to comply with the renewable energy credit system and to take advantage of any incentives or benefits provided by the system. Clients should also monitor any changes to the legal framework and adjust their strategies accordingly.

Related case laws and judgments: Some relevant case laws and judgments related to renewable energy credits in Canada include the Ontario Court of Appeal’s decision in Canadian Solar Solutions Inc. v. Minister of Energy, which upheld the constitutionality of Ontario’s feed-in tariff program, and the Supreme Court of Canada’s decision in West Moberly First Nations v. British Columbia (Chief Inspector of Mines), which recognized the duty to consult and accommodate Indigenous peoples in relation to resource development projects.