Bill 41 - An Act to Amend the Local Governance Act

BILL 41

An Act to Amend the Local Governance Act

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

1 Subsection 1(1) of the Local Governance Act, chapter 18 of the Acts of New Brunswick, 2017, is amended by repealing the definition “generation facility”.

2 Paragraph 68(1)(g) of the Act is amended by striking out “referred to in subsection 8(1)” and substituting “referred to in subsection 8(1) or 116.1(1)”.

3 Subsection 100(6) of the Act is amended by striking out “generation facility” and substituting “clean energy generation facility”.

4 Section 111 of the Act is amended

(a) in the portion preceding the definition “distribution electric utility” by striking out “116” and substituting “116.2”;

(b) by adding the following definitions in alphabetical order:

“clean energy generation facility” means a generation facility that produces electricity from a clean source as defined in the Electricity Act. (installation de production d’énergie propre)

“environmental attributes” means environmental attributes as defined in the Electricity from Renewable Resources Regulation – Electricity Act. (attributs environnementaux)

5 Section 112 of the Act is amended

(a) by repealing subsection (1) and substituting the following:

112( 1) A local government may construct, own or operate a clean energy generation facility in the Province and may use the electricity for its own purposes, sell it in accordance with the Electricity Act or sell the environmental attributes derived from its generation, but shall not distribute it or provide it as a service to its residents.

(b) by repealing subsection (3) and substituting the following:

112( 3) A local government may, for the purposes of subsection (1),

(a) acquire, in the Province, land or an interest in land that is adjacent to the local government or adjacent to a local government that is party to an agreement referred to in paragraph (b) or (c) and use the land for the purposes stated in that subsection,

(b) enter into an agreement with one or more local governments, one or more councils of the band as defined in the Indian Act (Canada), the Crown or any other person where the costs of construction and operation of a clean energy generation facility may be shared by the parties to the agreement, or

(c) enter into an agreement with one or more local governments, one or more councils of the band as defined in the Indian Act (Canada), the Crown or any other person to provide for the joint acquisition, ownership, development, extension, management or operation of a clean energy generation facility or the site of related land within the Province.

112( 4) A local government shall, by a resolution of its council, state its intention to take a measure under subsection (1) or (3).

6 Section 113 of the Act is amended by striking out “generation facility shall” and substituting “clean energy generation facility shall”.

7 The heading “Budget for generation facility” preceding section 114 of the Act is repealed and the following is substituted:

Budget for clean energy generation facility

8 Section 114 of the Act is amended

(a) in subsection (1) by striking out “generation facility” and substituting “clean energy generation facility”.

(b) by repealing subsection (2) and substituting the following:

114( 2) When operating a clean energy generation facility, a local government shall produce a budget with respect to the operation which shall be balanced on either an annual or a four-year basis, in its discretion.

(c) in the portion preceding paragraph (4)(a) by striking out “generation facility” and substituting “clean energy generation facility”;

(d) in the portion preceding paragraph (5)(a) by striking out “generation facility” and substituting “clean energy generation facility”.

9 Section 115 of the Act is amended in the portion preceding paragraph (a) by striking out “generation facility” and substituting “clean energy generation facility”;

10 The heading “Borrowing for generation facility” preceding section 116 of the Act is repealed and the following is substituted:

Borrowing for clean energy generation facility

11 Section 116 of the Act is repealed and the following is substituted:

Borrowing for clean energy generation facility

116 Despite subsection 100(2), a local government may borrow temporarily in each year for current expenditures in respect of the operation of a clean energy generation facility a sum or sums of money not exceeding 50% of the budgeted revenue for that year.

12 The Act is amended by adding after section 116 the following:

Clean energy generation corporation

116.1( 1) A local government may establish a corporation or acquire or hold securities of a corporation to construct or operate a clean energy generation facility in the Province and may use the electricity for its own purposes, sell it in accordance with the Electricity Act or sell the environmental attributes derived from its generation, but shall not distribute it or provide it as a service to its residents.

116.1( 2) For the purposes of subsection (1), a local government may

(a) acquire, in the Province, land or an interest in land that is adjacent to the local government or to a local government that is a party to an agreement under paragraph (b) or (c) and use the land for the purposes stated in that subsection,

116.1( 3) A local government shall, by a resolution of its council, state its intention to take a measure under subsection (1) or (2).

116.1( 4) Any corporation established for the purposes of subsection (1) may be operated for profit, which profits may arise from the sale of electricity or the sale of environmental attributes derived from its generation.

116.1( 5) Sums received by the local government as profits shall be paid into the general operating fund of the local government and shall be used solely for municipal purposes.

116.1( 6) Sections 8 and 112 to 116 do not apply to a local government in the case of a clean energy generation facility referred to in this section.

Delegation to a regional service commission

116.2( 1) For the purposes of constructing or operating a clean energy generation facility referred to in section 112, a local government may delegate to a regional service commission any of its powers referred to in subsection 100(1) or 112(3) or section 116, with the necessary modifications.

116.2( 2) For the purposes of constructing a clean energy generation facility referred to in section 116.1, a local government may delegate to a regional service commission any of its powers referred to in subsection 100(1) or 116.1(2), with the necessary modifications.

116.2( 3) A local government shall make a delegation under subsection (1) or (2) by means of a by-law.

116.2( 4) In the case of a delegation of the power to borrow referred to in subsection 100(1) for the construction of a clean energy generation facility,

(a) paragraph 1.01(2)(a) of the Municipal Capital Borrowing Act applies, with the necessary modifications, to the regional service commission as borrower, and

(b) subsection 1.01(1) of the Municipal Capital Borrowing Act applies to each local government as guarantor.

116.2( 5) No delegation under this section shall take effect unless the regional service commission consents to the delegation by an agreement referred to in section 6 of the Regional Service Delivery Act.

13 Subsection 117(13) of the Act is amended by striking out “A local government” and substituting “Despite subsection 100(2), a local government”.

14 Subsection 191(1) of the Act is amended

(a) by repealing paragraph (aa.2) and substituting the following:

(aa.2) governing agreements under paragraphs 112(3)(b) and (c), including the sharing of costs of construction and operation of a clean energy generation facility, the use or sale of the electricity generated or the sale of environmental attributes derived from its generation;

(b) in paragraph (bb) by striking out “generation facility” and substituting “clean energy generation facility”;

(bb.1) governing agreements under paragraphs 116.1(2)(b) and (c), including the sharing of costs of construction and operation of a clean energy generation facility, the use or sale of the electricity generated or the sale of environmental attributes derived from its generation;

CONSEQUENTIAL AMENDMENTS

15 Subsection 4(1) of New Brunswick Regulation 2018-54 under the Local Governance Act is amended

(a) in paragraph (e) by adding “under subsection 8(1) of the Act or in which it holds securities” after “established by the local government”;

(b) by adding after paragraph (e) the following:

(e.1) the following information with respect to a corporation established by the local government under subsection 116.1(1) of the Act or in which it holds securities:

( i) the name of the corporation,

( ii) the purpose of the corporation, and

( iii) the profits paid by the corporation to the local government;