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Volume 59, No. 15

214/2016

The British Columbia Gazette,

Part II

August 23, 2016

B.C. Reg. 214/2016 , deposited August 19, 2016, under the CLEAN ENERGY ACT [section 35]. Order in Council 609/2016, approved and ordered August 19, 2016.

On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that the Greenhouse Gas Reduction (Clean Energy) Regulation, B.C. Reg. 102/2012, is amended as set out in the attached Schedule.

— W. R. BENNETT, Minister of Energy and Mines and Minister Responsible for Core Review ; M. POLAK, Presiding Member of the Executive Council .

Schedule

Section 1 of the Greenhouse Gas Reduction (Clean Energy) Regulation, B.C. Reg. 102/2012, is amended

(

a) by repealing the definition of “eligible vehicle” and substituting the following:

“eligible vehicle or machine” means

(

a) a specified vehicle,

(

b) a marine vehicle,

(

c) an asphalt paver,

(

d) a fracture pump unit,

(

e) a mine haul truck, and

(

f) a locomotive

that uses, as a fuel source, compressed natural gas or liquefied natural gas; ,

(

b) by adding the following definition:

“operating costs” , in relation to a fuelling station or to distribution or storage infrastructure, means

(

a) operating and maintenance expenses,

(

b) electricity expenses,

(

c) interest expenses,

(

d) taxes, including property taxes,

(

e) return on equity,

(

f) extraordinary retirement costs, and

(

g) amounts with respect to the depreciation of the

(

i) capital costs,

(ii) construction carrying costs,

(iii) feasibility and development costs,

(iv) sustaining capital costs, and

(

v) decommissioning and salvaging costs

determined with reference to the remaining service life of the fuelling station or distribution or storage infrastructure, as estimated by the commission in setting rates; , and

(

c) in the definition of “undertaking period” by striking out “ March 31, 2018. ” and substituting “ March 31, 2022. ”

Section 2 (0.1) is amended in the definition of “early adopter vehicle”

(

a) by striking out “ “early adopter vehicle” ” and substituting “ “early adopter vehicle or machine” ”,

(

b) by adding “ or machine ” after “ eligible vehicle ”,

(

c) in paragraph (

a) by striking out “ 5, 6 and 7 ” and substituting “ 5 through 11 ”, and

(

d) in the table in paragraph (

b) by repealing the item beginning with “ Shipping, passenger transportation ” and adding the following items as indicated:

Column 1

Market Segment

Column 2

Contracted Demand (GJ)

Column 3

Number of Persons who Receive Grants or Zero-Interest Loans

Asphalt paving services

100 000

Fracture pump unit services

200 000

Shipping, passenger transportation or commercial services by marine vehicle that

will use fuel purchased from a public utility

1.5 million

Street sweeping services

100 000

Section 2 (1) is amended

(

a) by striking out “ A public utility’s undertaking ” and substituting “ Subject to subsection 3.3, a public utility’s undertaking ”,

(

b) by striking out “ eligible vehicle ” wherever it appears and substituting “ eligible vehicle or machine ”,

(

c) by repealing the table in paragraph (

b) and substituting the following:

Year of Undertaking

Percentage of the difference between the cost of the eligible vehicle or machine

and the cost of a comparable vehicle that uses gasoline or diesel

(

d) in paragraph (

c) by striking out “ $62 million ” and substituting “ $107.9 million ”, and

(

e) by repealing paragraph (c) (ii) (A).

Section 2 (1.1) is amended by striking out “ eligible vehicle ” and substituting “ eligible vehicle or machine ”.

Section 2 (1.2) is amended

(

a) by striking out “ eligible vehicle ” and substituting “ eligible vehicle or machine ”,

(

b) in paragraphs (

a) and (

b) by striking out “ 5, 6 and 7 ” in both places and substituting “ 5 through 11 ” and by striking out “ early adopter vehicle ” in both places and substituting “ early adopter vehicle or machine ”,

(

c) in paragraph (

a) by striking out “ 50% ” and substituting “ 50 ”,

(

d) in paragraph (

b) by striking out “ 20% ” and substituting “ 20 ”, and

(

e) by adding the following subsection:

(1.3) Despite subsections (1) (a) (

i) and (1.1), grants or loans referred to in

subsection (1) in relation to an early adopter vehicle or machine respecting the market

segment described in the table in paragraph (

b) of the definition of “earlier adopter

vehicle or machine” as “Shipping, passenger transportation or commercial services

by marine vehicle that will use fuel purchased from a public utility” may be made

to persons who are not in British Columbia.

Section 2 (2) and (3) is amended

(

a) in paragraph (

a) by striking out “ April 1, 2018 ” in both places and substituting “ March 31, 2022 ”,

(

b) in paragraph (c) (

i) by striking out “ energy provided at each station is provided to ” in both places and substituting “ station’s forecast total operating costs for the first 5 years of the operation

are recovered from ”, and

(

c) in paragraph (c) (ii) by striking out “ energy provided at each station is provided to ” in both places and substituting “ station’s forecast total operating costs for the first 7 years of the operation

are recovered from ”.

Section 2 (3.1) is amended

(

a) by striking out “ A public utility’s undertaking ” and substituting “ Subject to subsection 3.3, a public utility’s undertaking ”,

(

b) in paragraph (b) (i) (

A) by striking out “ 30 ” and substituting “ 50 ”, and

(

c) by adding the following subsections:

(3.2) Subject to subsection 3.3, a public utility’s undertaking that is in the

class defined as follows is a prescribed undertaking for the purposes of

section 18

of the Act:

(

a) the public utility provides, through an open and competitive application process,

grants or zero-interest loans to persons in British Columbia for

(

i) the purchase or lease of generators, boilers, burners or kilns that use, as

a fuel source, compressed natural gas or liquefied natural gas, or

(ii) the conversion of generators, boilers, burners or kilns to use, as a fuel

source, compressed natural gas or liquefied natural gas

if the generators, boilers, burners or kilns will be operated at a location that,

at the time of the expenditure, is not

(iii) within the authority’s integrated area, or

(iv) connected to a natural gas transmission or distribution system;

(

b) the total expenditures on the undertaking during the undertaking period, other

than expenditures on administration, marketing, training and education, do not exceed

$6.1 million.

(3.3) The undertakings referred to in subsections (1) and (3.2) are prescribed

undertakings for the purposes of

section 18 of the Act only if the total combined

expenditures on the two undertakings, during the undertaking period on administration,

marketing, training and education, do not exceed $8.1 million.

(3.4) A public utility’s undertaking that is in the class defined as follows is

a prescribed undertaking for the purposes of

section 18 of the Act:

(

a) the public utility, before March 31, 2022, enters into a binding commitment

(

i) construct and operate, or

(ii) purchase and operate

LNG distribution and storage infrastructure in British Columbia, including LNG

rail tank cars and ISO containers, for the purpose of reducing greenhouse gas emissions;

(

b) total expenditures on the undertaking during the undertaking period, including

expenditures on administration, marketing, training and education, do not exceed $15 million,

and

(

c) at least

(i) 80% of the forecast total operating costs of the distribution and storage

infrastructure for the first 5 years of the operation are recovered from one or more

persons under a take-or-pay agreement with a minimum term of 5 years, or

(ii) 60% of the forecast total operating costs of the distribution and storage

infrastructure for the first 7 years of the operation are recovered from one or more

persons under a take-or-pay agreement with a minimum term of 7 years.

Section 2 (4) is amended by striking out “ and (3.1), ” and substituting “ , (3.1), (3.2) and (3.4), ”.

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