September 15, 2015
Energy infrastructure owners in Canada are facing increased liability for environmental damage under a revised regulatory system. The regulations—including an increase of absolute liability from $30 million to $1 billion—are stirring debate among legal experts around the potential impact on current and future infrastructure projects. Leading energy lawyer and co-head of our Infrastructure and Energy Practice Krista Hill was quoted in a Lexpert piece analyzing the effects of the stricter regulatory regime on the industry. Below is an excerpt of the article.
Krista Hill, a nuclear-industry expert with Torys LLP in Toronto, says the response will likely be different among public utilities, which will “definitely” require increased insurance or other security to offset the risks of increased absolute liability. But Hill adds that the Energy Safety and Security Act has been welcomed by the nuclear industry, whose governing safety legislation was decades old. “The structure of the old act was similar, but the amount of the absolute liability has been increased to keep it in line with international norms and conventions,” she says.
To read the full article, click here.