Bill 10 — Fourth Session, 29Th Legislature, 67 Elizabeth Ii the Legislative Assembly of Alberta Bill 10 An Act To Enable Clean Energy Improvements (Legislature 29, Session 4)

L29 S4 11747

Alberta — Bills

2018 Bill 10 Fourth Session, 29th Legislature, 67 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERTA BILL 10

AN ACT TO ENABLE CLEAN ENERGY IMPROVEMENTS THE MINISTER OF MUNICIPAL AFFAIRS First Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Second Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Committee of the Whole . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Third Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Royal Assent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1 Bill 10 BILL 10 2018

AN ACT TO ENABLE CLEAN ENERGY IMPROVEMENTS ( A s s e n t e d t o , 2 0 1 8 ) HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows: Amends RSA 2000 cM-26 1 The Municipal Government Act is amended by this Act. 2

Section 1(1)(aa) is amended by adding the following after subclause (v): (v.1) a clean energy improvement tax,

1 Explanatory Notes Explanatory Notes 1 Amends

chapter M-26 of the Revised Statutes of Alberta 2000. 2

Section 1(1)(aa) presently reads: 1(1) In this Act, (aa) “tax” means (

i) a property tax, (ii) a business tax, (iii) a business improvement area tax, (iii.1) a community revitalization levy, (iv) a special tax, (

v) a well drilling equipment tax, (vi) a local improvement tax, and (vii) a community aggregate payment levy;

2 3

Section 243(2) is amended by adding the following after clause (e): (e.1) clean energy improvement tax; 4

Section 252 is amended (

a) by renumbering it as

section 252(1); (

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

(2) For the purposes of subsection (1), a borrowing made by a municipality to pay for costs associated with clean energy improvements as defined in

Part 10, Division 6.1 does not count against the debt limit or debt service limit of the municipality. 5

Section 334(3) is repealed and the following is substituted:

(3) Despite subsection (2), a tax notice must show the following, each listed separately from all other tax rates shown on the notice:

2 Explanatory Notes 3

Section 243(2) presently reads:

(2) An operating budget must include the estimated amount of each of the following sources of revenue and transfers: (

a) property tax; (

b) business tax; (

c) business improvement area tax; (c.1) community revitalization levy; (

d) special tax; (

e) well drilling equipment tax; (

f) local improvement tax; (f.1) community aggregate payment levy; (

g) grants; (

h) transfers from the municipality’s accumulated surplus funds or reserves; (

i) any other source. 4

Section 252 presently reads: 252 No municipality may make a borrowing if the borrowing will cause the municipality to exceed its debt limit, unless the borrowing is approved by the Minister. 5

Section 334(3) presently reads:

(3) Despite subsection (2), a tax notice must show, separately from all other tax rates shown on the notice, the tax rates set by the

3 (

a) the tax rates set by the property tax bylaw to raise the revenue to pay the requisitions referred to in

section 326(1)(a)(ii) or (vi); (

b) the tax rate set by a clean energy improvement tax bylaw to raise the revenue required to pay for a clean energy improvement. 6

Section 348(d)(

i) is amended by adding “a clean energy improvement tax,” after “special tax,”. 7 The following is added after

section 390: Division 6.1 Clean Energy Improvement Tax

Interpretation 390.1(1) In this Division, “clean energy improvement” means, subject to the regulations, a renovation, adaptation or installation on eligible private property that (

a) will increase energy efficiency or the use of renewable energy on that property, and (

b) will be paid for in whole or in part by a tax imposed under this Division, but does not include improvements referred to in

section 284(1)(j)(iii) and (iv).

3 Explanatory Notes property tax bylaw to raise the revenue to pay the requisitions referred to in

section 326(1)(a)(ii) or (vi). 6

Section 348(

d) presently reads: 348 Taxes due to a municipality (

d) are a special lien (

i) on land and any improvements to the land, if the tax is a property tax, a community revitalization levy, a special tax, a local improvement tax or a community aggregate payment levy, or (ii) on goods, if the tax is a business tax, a community revitalization levy, a well drilling equipment tax, a community aggregate payment levy or a property tax imposed in respect of a designated manufactured home in a manufactured home community. 7 Division 6.1 Clean Energy Improvement Tax.

(2) For the purposes of this Division, the amount required to recover the costs of a clean energy improvement may include (

a) the capital cost of undertaking the clean energy improvement, (

b) the cost of professional serv ices needed for the clean energy improvement, (

c) a proportionate share of the costs associated with the administration of a clean energy improvement program, (

d) the cost of financing the clean energy improvement, and (

e) other expenses incidental to the undertaking of the clean energy improvement and to the raising of revenue to pay for it. Eligibility of properties for clean energy improvements 390.2 Property is eligible for a clean energy improvement if the property is (

a) located in a municipality that has passed a clean energy improvement tax bylaw, (

b) one of the following types of private property: (

i) residential property; (ii) non-residential property; (iii) agricultural property, and (

c) not designated industrial property. Clean energy improvement tax bylaw 390.3(1) Before a clean energy improvement is made to any property, a council must pass a clean energy improvement tax bylaw.

(2) A clean energy improvement tax bylaw authorizes the council to impose a clean energy improvement tax in respect of a clean energy improvement made to a single property to raise revenue to

4 Explanatory Notes

5 pay the amount required to recover the costs of that clean energy improvement.

(3) A clean energy improvement tax bylaw must, subject to the regulations, (

a) indicate that, where a municipality has entered into a clean energy improvement agreement with the owner of a property, a clean energy improvement tax will be charged based on the clean energy improvement agreement, (

b) set the tax rate or rates to be imposed in respect of clean energy improvements, (

c) indicate the process by which the owner of a property can apply to the municipality for a clean energy improvement, (

d) include any other information the council considers necessary or advisable, and (

e) include any requirements imposed by the regulations.

(4) Before giving second reading to a proposed clean energy improvement tax bylaw, the council must hold a public hearing with respect to the proposed bylaw in accordance with

section 230 after giving notice of it in accordance with

section 606. Clean energy improvement agreement 390.4(1) A municipality and the owner of a property shall enter into a clean energy improvement agreement before a clean energy improvement is made to that property.

(2) A clean energy improvement agreement must, subject to the regulations, (

a) describe the proposed clean energy improvement, (

b) identify the property in respect of which the clean energy improvement tax will be imposed, (

c) indicate that the owner of the property will be liable to pay the clean energy improvement tax,

5 Explanatory Notes

6 (

d) include the amount required to recover the costs of the clean energy improvement and the method of calculation used to determine that amount, (

e) state the period over which the amount required to recover the costs of the clean energy improvement will be paid, (

f) state the portion of the amo unt required to recover the costs of the clean energy improvement to be paid (

i) by the municipality, (ii) from revenue raised by the clean energy improvement tax, and (iii) from other sources of revenue, (

g) describe how the clean energy improvement tax will be revised in the event of a subdivision of the property or a consolidation of the property with any other property, and (

h) include any other information the municipality considers necessary or advisable. Person liable to pay clean energy improvement tax 390.5 The person liable to pay a tax imposed in accordance with a clean energy improvement tax bylaw is the owner of the property in respect of which the tax is imposed. Paying off a clean energy improvement tax 390.6 The owner of a property that is subject to a clean energy improvement agreement may pay the remaining amount required to recover the costs of the clean energy improvement before a clean energy improvement tax is imposed.

Refinancing of debt by council 390.7 If, after a clean energy improvement agreement has been made, the council refinances the debt created to pay for the clean energy improvement that is the subject of that agreement at an interest rate other than the rate estimated when the clean energy improvement agreement was made, the council, with respect to future years, may revise the amount required to recover the costs of the clean energy improvement included in that agreement to reflect the change in the interest rate.

6 Explanatory Notes

7 Petitions 390.8 An elector of a municipality may petition that municipality to (

a) establish a clean energy improvement program, or (

b) discontinue a clean en ergy improvement program. Regulations 390.9 The Minister may make regulations respecting clean energy improvements, including, without limitation, regulations (

a) respecting eligibility requirements for clean energy improvements; (

b) respecting clean energy improvement agreements; (

c) respecting clean energy improvement tax bylaws; (

d) respecting types of renovations, adaptations or installations for which clean energy improvement agreements may be made and types of renovations, adaptations or installations for which clean energy improvement agreements may not be made; (

e) respecting the disclosure of clean energy improvement agreements to prospective purchasers of property; (

f) respecting limits on the number of improvements to a single property or a type of eligible property for which a tax may be imposed under this Division; (

g) respecting limits on the capital costs of undertaking clean energy improvements on a single property or a type of eligible property under this Division; (

h) respecting clean energy improvement programs, including the administration of clean energy improvement programs. 8

Section 410(

e) is amended by adding “a clean energy improvement tax,” after “special tax,”.

7 Explanatory Notes 8

Section 410(

e) presently reads: 410 In this Division,

8 9 This Act comes into force on Proclamation.

8 Explanatory Notes (e) “tax” means a property tax, a community revitalization levy, a special tax, a local improvement tax or a community aggregate payment levy; 9 Coming into force.

RECORD OF DEBATE Stage Date Member From To Questions and Comments From To Stage Date Member From To Questions and Comments From To Stage Date Member From To Questions and Comments From To Stage Date Member From To Questions and Comments From To Title: 2018 (29th, 4th) Bill 10,

An Act to Enable Clean Energy Improvements

Document details

Collection	Alberta — Bills
Citation	L29 S4 11747
Type	bill
Volume / chapter	L29 S4 11747
Language	en
Format	json
Source	PROVINCIAL
Identifier	6c44eafd4b87bc61687d56474922d168b8f2614f

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