BILL 70

An Act to Amend the Gas Distribution Act, 1999

Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:

1 Section 5 of the Gas Distribution Act, 1999, chapter G-2.11 of the Acts of New Brunswick, 1999, is amended

(a)  in subsection (1) by striking out “After January 31, 2000,” and substituting “Between February 1, 2000, and December 31, 2014, both dates inclusive,”;

(b)  by adding after subsection (1) the following:

5( 1.1) After December 31, 2014, an application for a general franchise, a local gas producer franchise, a liquefied natural gas franchise or an application under subsection 6(2) shall be made to the Board.

5( 1.2) After December 31, 2014, an application for a single end use franchise shall be made to the Lieutenant-Governor in Council.

(c)  by adding after subsection (2) the following:

5( 2.1) The Board may grant a general franchise, a local gas producer franchise or a liquefied natural gas franchise to a person who has submitted an application under subsection (1.1).

5( 2.2) Subject to subsection 13.1(1), the Lieutenant-Governor in Council may grant a single end use franchise to a person who has submitted an application under subsection (1.2).

(d)  in subsection (3) by adding “or (2.1)” after “under subsection (2)”;

(e)  by adding after subsection (3) the following:

5( 3.1) The term of a single end use franchise granted under subsection (2.2) shall be not less than twenty years.

(f)  in subsection (4) by adding “or (2.1)” after “under subsection (2)”;

(g)  by adding after subsection (4) the following:

5( 4.1) The grant of a single end use franchise under subsection (2.2) shall be subject to such terms and conditions as the Lieutenant-Governor in Council considers necessary in the public interest.

(h)  in subsection (6) by striking out “The Board may” and substituting “Subject to subsection (6.1), the Board may”;

(i)  by adding after subsection (6) the following:

5( 6.1) The Lieutenant-Governor in Council may assess a processing fee and require an applicant for a single end use franchise to pay this fee.

2 Section 10 of the Act is amended

(a)  by adding after subsection (1) the following:

10( 1.01) After December 31, 2014, subsection (1) does not apply to a single end use franchise agreement.

(b)  by adding after subsection (2) the following:

10( 2.1) After December 31, 2014, subsection (2) does not apply to a single end use franchise agreement.

3 Section 11 of the Act is amended by adding after subsection (1) the following:

11( 1.1) After December 31, 2014, subsection (1) does not apply to a single end use franchise agreement.

4 The Act is amended by adding after section 11.1 the following:

Renewal of single end use franchise agreements

11.2( 1) After December 31, 2014, the Lieutenant-Governor in Council may renew a single end use franchise agreement or extend its terms at any time during the term of the agreement.

11.2( 2) A renewal under subsection (1) shall be for a term of not less than 20 years.

11.2( 3) The Lieutenant-Governor in Council may assess a renewal fee and require a single end use franchise holder whose franchise is renewed to pay this fee.

5 Subsection 13(1) of the Act is amended by striking out “Subject to subsection (1.1),” and substituting “Between February 1, 2000, and December 31, 2014, both dates inclusive, subject to subsection (1.1),”.

6 The Act is amended by adding after section 13 the following:

Application and fee for single end use franchise

13.1( 1) The Lieutenant-Governor in Council may grant, renew or extend a single end use franchise only if the industrial facility for which the application is made has an installed consumption capacity of at least five million gigajoules per year.

13.1( 2) The installed consumption capacity requirement in subsection (1) does not apply to an industrial facility for which a single end use franchise was granted, renewed or extended on or before December 31, 2014.

13.1( 3) The holder of a single end use franchise granted or renewed on or before December 31, 2014, shall pay a franchise fee in accordance with subsection 13(2).

13.1( 4) The holder of a single end use franchise granted or renewed after December 31, 2014 shall pay a franchise fee calculated at a rate of ten cents per gigajoule of gas consumed per year by the industrial facility for which the franchise was granted or renewed.

13.1( 5) The Taxpayer Protection Act does not apply to a fee imposed under subsection (3) or (4).

13.1( 6) The fee imposed under subsection (4) is payable to the Minister of Finance and

(a)  shall be remitted in quarterly payments on January 1, April 1, July 1, and October 1 of each year; and

(b)  shall be accompanied by a written statement from the owner of the transmission line that supplies gas to the single end use franchise holder certifying the amount of gas consumed by the industrial facility in the relevant period.

13.1( 7) After March 31, 2021, a franchise fee imposed under subsection (4) shall be adjusted as of the first day of April each year in accordance with the formula prescribed by regulation.

Natural Gas Distribution Fund

13.2( 1) There is established a fund called the Natural Gas Distribution Fund.

13.2( 2) The purpose of the Natural Gas Distribution Fund is to provide funding to the holder of the general franchise to be applied to its revenue requirement.

13.2( 3) The Minister of Finance shall be the custodian and trustee of the Fund.

13.2( 4) The Fund shall be held for the purposes of this section in a separate account in the Consolidated Fund.

13.2( 5) The fees referred to in subsections 13.1(3) and (4) shall be paid into the Fund.

13.2( 6) All interest arising from the Fund shall be paid into and form part of the Fund.

13.2( 7) Within 30 days after a fee is paid into the Fund under subsection (5), the fee and any interest accrued shall be paid to the general franchise holder.

13.2( 8) The general franchise holder shall apply any amount received under subsection (7) to its revenue requirement for the year following the year the amount is received.

7 Subsection 95(1) of the Act is amended by adding after paragraph (k) the following:

(k.1)  prescribing a formula for the purposes of subsection 13.1(7);