Bill 39 - Climate Change Act

BILL 39

Climate Change Act

Preamble

The science of climate change is clear. The Intergovernmental Panel on Climate Change, the leading international body for the assessment of climate change, has projected that an increase in global temperatures of more than 2 ºC will result in irreversible and catastrophic impacts. The current level of greenhouse gas emissions is expected to raise global temperatures by 3.5 ºC before the end of this century. All regions of the planet face this threat. Temperatures in Canada are projected to increase at a rate that is two times faster than the global average. In New Brunswick, climate change is already evident in the form of increased temperatures, increased precipitation and a rising sea level. In the future, New Brunswick can expect an elevated risk of heat-related health concerns, new pests and invasive species, flood damage, coastal erosion, extreme winds and icing of trees and power lines.

The Paris Agreement was adopted on December 12, 2015, by 195 nations, including Canada, under the United Nations Framework Convention on Climate Change. This first legally binding, global climate deal includes a commitment to take necessary steps to limit this century’s global temperature rise to less than 2 ºC above pre-industrial levels and to make vigorous efforts to limit the temperature increase to 1.5 ºC. Fulfilling this commitment will require substantial changes to the global economy, most notably additional, substantial and permanent reductions to greenhouse gas emissions. In Canada, First Ministers released the Pan-Canadian Framework on Clean Growth and Climate Change, thereby demonstrating a commitment to a coordinated, national effort to reduce greenhouse gas emissions.

At its August 2015 meeting, the Conference of the New England Governors and Eastern Canadian Premiers adopted a new regional target for the reduction of greenhouse gas emissions of 35% to 45% below 1990 levels by the year 2030 and confirmed the previous regional targets.

All New Brunswickers have a role to play in addressing climate change, including understanding how New Brunswickers contribute to greenhouse gas emissions and changing their behaviour to reduce those emissions. As such, New Brunswick is committed to making its own contributions to these international, national and regional efforts. In December 2016, the Government of New Brunswick released a new Climate Change Action Plan.

The Climate Change Action Plan provides a clear path forward for reducing greenhouse gas emissions while promoting economic growth and increasing New Brunswick’s resilience to climate change through adaptation. Among other things, the action plan calls for the implementation of a carbon pricing mechanism that takes into account New Brunswick’s unique economic and social circumstances, including trade-exposed, energy-intensive industries, low-income families, consumers and businesses.

Carbon pricing is an efficient and effective way to reduce greenhouse gas emissions and will play an important role in New Brunswick’s transition toward a low-carbon economy. However, carbon pricing alone is not expected to be sufficient to meet the Government of New Brunswick’s greenhouse gas emission target levels. Additional actions will be needed. Consequently, the Government of New Brunswick will pursue complementary initiatives to support and promote the transition to a low-carbon economy.

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

Definitions

1 The following definitions apply in this Act.

“diesel fuel” means a liquid mixture of hydrocarbons obtained from the refining of petroleum to supply diesel engines. (carburant diesel)

“diesel fuel tax” means the tax paid on diesel fuel under subsection 6(1) of the Gasoline and Motive Fuel Tax Act. (taxe sur le carburant diesel)

“diesel fuel tax refund” means a refund of diesel fuel tax that is made by the Minister of Finance under subsection 6(5.2) or (7) of the Gasoline and Motive Fuel Tax Act. (remboursement de la taxe sur le carburant diesel)

“Fund” means the Climate Change Fund established under section 4. (Fonds)

“gasoline” means gasoline as defined in the Gasoline and Motive Fuel Tax Act. (essence)

“gasoline tax” means the tax paid under subsection 3(1) of the Gasoline and Motive Fuel Tax Act. (taxe sur l’essence)

“gasoline tax refund” means a refund of gasoline tax that is made by the Minister of Finance under subsection 3(6) of the Gasoline and Motive Fuel Tax Act. (remboursement de la taxe sur l’essence)

“greenhouse gas” means (gaz à effet de serre)

(a) carbon dioxide (CO2),

(b) methane (CH4),

(d) hydrofluorocarbons (HFCs),

(e) perfluorocarbons (PFCs),

(f) sulphur hexafluoride (SF6),

(g) nitrogen trifluoride (NF3), or

(h) any other gas prescribed by regulation or of a category prescribed by regulation.

“Minister” means the Minister of Environment and Local Government and includes any person designated by the Minister to act on the Minister’s behalf. (ministre)

“Minister of Finance” means Minister as defined in the Gasoline and Motive Fuel Tax Act. (ministre des Finances)

Greenhouse gas emission target levels

2 It is the objective of the Government of New Brunswick that greenhouse gas emissions in the Province be reduced so that they do not exceed

(a) 14.8 megatonnes in 2020,

(b) 10.7 megatonnes in 2030, and

Climate Change Action Plan

3( 1) Before January 1, 2017, the Minister shall prepare a Climate Change Action Plan that sets out actions that will enable the Government of New Brunswick to achieve its greenhouse gas emissions target levels and to increase resiliency to the impacts of climate change.

3( 2) The Minister shall cause the action plan to be made available to the public in the form and the manner that he or she considers appropriate.

3( 3) The action plan may be revised at any time and shall be reviewed at least every five years.

3( 4) If the action plan is revised, the Minister shall cause the revised action plan to be made available to the public in the form and the manner that he or she considers appropriate.

3( 5) The Minister shall prepare a progress report at least once every year outlining the status of the actions set out in the action plan and the outcomes and impacts of carbon pricing policies.

3( 6) The Minister shall cause the progress report to be made available to the public in the form and the manner that he or she considers appropriate.

Climate Change Fund

4( 1) There is established a fund called the Climate Change Fund.

4( 2) The Minister of Finance shall be the custodian of the Fund and the Fund shall be held in trust by the Minister of Finance.

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

4( 4) The Minister of Finance may invest the money in the Fund in the manner authorized by the Trustees Act and may invest in securities issued under the Provincial Loans Act.

4( 5) The Fund may receive direct contributions.

4( 6) When the contributions are made by individuals, partnerships or corporations under subsection (5), the contributions shall be deemed to be gifts to the Crown in right of New Brunswick.

4( 7) Subsection (6) does not apply to contributions made by a department or agency of the Government of New Brunswick or of Canada or a provincial or federal Crown corporation.

4( 8) The Fund shall be credited with the following amounts:

(a) money transferred to the Fund by the Minister of Finance under section 6;

(b) gifts and legacies paid into the Fund;

(d) any amount paid into the Fund in accordance with a regulation made under paragraph 10(d); and

(e) any other money received by the Fund.

4( 9) The assets of the Fund may be used

(a) to pay the costs of measures for

( i) greenhouse gas reduction, limitation, avoidance or capturing;

( ii) the mitigation of the economic and social impact of greenhouse gas emission reduction efforts;

( iii) public education, outreach and engagement related to climate change;

( iv) adaptation to current and future climate conditions;

( v) the development of regional and international partnerships related to climate change and New Brunswick’s participation in such regional and international partnerships;

( vi) research into and the development and demonstration of measures that may lead to greenhouse gas emission reductions or adaptation to current and future climate conditions;

( vii) the development of climate change policy and the measurement, tracking and reporting of climate change initiatives; and

( viii) the attainment of any other purpose related to climate change that is prescribed by regulation; and

(b) to reimburse any department or agency of the Government of New Brunswick or any provincial Crown corporation that makes an advance to cover the costs of measures referred to in paragraph (a).

4( 10) For greater certainty, the assets of the Fund may be used to pay any operating or capital expenditure related to any measure referred to in subsection (9).

4( 11) Payments for the purposes of subsection (9) shall be a charge on and payable out of the Fund.

4( 12) The Minister shall appoint a Climate Change Fund Advisory Board consisting of a chair and not fewer than four members to advise the Minister on matters relating to subsections (8) and (9).

Certification of costs

5( 1) Subject to subsection (2), the Minister shall certify the costs incurred under subsection 4(9) to the Minister of Finance.

5( 2) If the taking of any measure provided for in subsection 4(9) falls under the authority of a minister of the Crown in right of New Brunswick other than the Minister, that other minister shall certify the costs incurred.

5( 3) The Minister of Finance may rely on the costs certified under this section.

Transfer to the Fund of part of the net revenue from the gasoline tax and the diesel fuel tax

6( 1) After collection of the gasoline tax, the Minister of Finance shall without delay transfer into the Fund

(a) for the fiscal year beginning on April 1, 2018, 2.33/15.5 of the net revenue from the gasoline tax;

(b) for the fiscal year beginning on April 1, 2019, 4.65/15.5 of the net revenue from the gasoline tax;

(d) for the fiscal year beginning on April 1, 2021, 9.31/15.5 of the net revenue from the gasoline tax; and

(e) for the fiscal year beginning on April 1, 2022, and subsequent fiscal years, 11.64/15.5 of the net revenue from the gasoline tax.

6( 2) For the purposes of subsection (1), the net revenue from the gasoline tax is determined in accordance with the following formula:

A - (B + C)

where

A is the revenue from the gasoline tax,

B is the amount of gasoline tax refunds, and

C is the revenue from the gasoline tax that is shared pursuant to an agreement made under section 11.1 of the Revenue Administration Act.

6( 3) After collection of the diesel fuel tax, the Minister of Finance shall without delay transfer into the Fund

(a) for the fiscal year beginning on April 1, 2018, 2.76/21.5 of the net revenue from the diesel fuel tax;

(b) for the fiscal year beginning on April 1, 2019, 5.51/21.5 of the net revenue from the diesel fuel tax;

(d) for the fiscal year beginning on April 1, 2021, 11.03/21.5 of the net revenue from the diesel fuel tax; and

(e) for the fiscal year beginning on April 1, 2022, and subsequent fiscal years, 13.79/21.5 of the net revenue from the diesel fuel tax.

6( 4) For the purposes of subsection (3), the net revenue from the diesel fuel tax is determined in accordance with the following formula:

A - (B + C)

where

A is the revenue from the diesel fuel tax,

B is the amount of diesel fuel tax refunds, and

C is the revenue from the diesel fuel tax that is shared pursuant to an agreement made under section 11.1 of the Revenue Administration Act.

Annual report on Fund

7( 1) In 2019 and every year thereafter, the Minister shall prepare a report on the Fund and provide the report to the appropriate committee of the Legislative Assembly.

7( 2) The report shall set out the following:

(a) a description of each of the amounts credited and charged to the Fund for the year in question;

(b) a description of each of the initiatives with respect to which amounts were charged to the Fund for the year in question;

(c) a description of amounts charged to the Fund to reimburse the Crown in right of New Brunswick for expenditures made by the Crown in right of New Brunswick, directly or indirectly, in connection with the administration and enforcement of this Act and the regulations; and

(d) any other information prescribed by regulation.

Agreements

8( 1) The Minister may enter into an agreement with the government of another province, of a territory, of Canada or of a foreign country or state for a purpose related to this Act.

8( 2) Without limiting the generality of subsection (1), an agreement may provide for

(a) the collection, use and disclosure of information, including personal information, or

(b) the recognition of offset credits granted under similar regulatory schemes for offset credits in other jurisdictions.

8( 3) Without limiting the generality of subsection (1), the Minister may enter into agreements with the Government of Canada with respect to carbon pricing and funds generated from carbon pricing.

Administration

9 The Minister is responsible for the administration of this Act and may designate one or more persons to act on the Minister’s behalf.

Regulations

10 The Lieutenant-Governor in Council may make regulations

(a) prescribing any other gas or any category of gas for the purposes of the definition “greenhouse gas” in section 1;

(b) prescribing any other purpose related to climate change for the purposes of subparagraph 4(9)(a)(viii);

(d) respecting offset credits for the purpose of achieving reductions in greenhouse gas emissions consistent with greenhouse gas emission target levels established in section 2 and the regulations may include, without limitation, provisions

( i) respecting the description and nature of offset credits;

( ii) respecting the creation, the obtention, the distribution, the exchange, the trading, the sale, the use, the variation and the cancellation of offset credits;

( iii) imposing requirements, limits or prohibitions or authorizing the Minister to establish requirements or limits in respect of the creation, the obtention, the distribution, the exchange, the trading, the sale, the use, the variation and the cancellation of offset credits;

( iv) respecting the creation, operation and management of one or more public registries;

( v) imposing fees;

( vi) respecting the recognition of offset credits granted under similar regulatory schemes for offset credits in other jurisdictions;

( vii) respecting the payment into the Fund of any or all amounts payable to the Government of New Brunswick through the operation of the regulations under this paragraph; and

( viii) respecting the imposition, payment and enforcement of administrative penalties for a violation of or failure to comply with regulations made under this paragraph, including,

( A) authorizing the Minister to impose administrative penalties and prescribing the maximum amount that may be imposed;

( B) prescribing provisions of the regulations made under this paragraph for which a notice of administrative penalty may be issued;

( C) prescribing the form of the notice of administrative penalty;

( D) respecting the determination of amounts of administrative penalties, which may vary according to the nature or frequency of the violation or failure to comply, and whether the person in violation or in non-compliance is an individual or a corporation; and

( E) providing an appeal mechanism for persons on whom an administrative penalty has been imposed, including conferring authority on a specified person or body to whom an appeal may be made, including a court;

(e) prescribing fees for the purposes of this Act and the regulations;

(f) defining any word or expression used in this Act but not defined in this Act, for the purposes of this Act, the regulations or both;

(g) respecting any other matter that may be necessary for the proper administration of this Act.

Commencement

11( 1) Subject to subsection (2), this Act or any provision of it comes into force on a day or days to be fixed by proclamation.

11( 2) Subsections 3(1), (2), (3) and (4) of this Act shall be deemed to have come into force on January 1, 2016.