Third

Session, 48th General Assembly

Elizabeth II, 2018

BILL 44

AN ACT TO AMEND THE MANAGEMENT OF

GREENHOUSE GAS ACT AND THE REVENUE ADMINISTRATION ACT

Received

and Read the First Time ................................................................

Second

Reading ............................................................................................

Committee .....................................................................................................

Third

Reading ...............................................................................................

Royal

Assent .................................................................................................

HONOURABLE TOM

OSBORNE

Minister of Finance

and President of Treasury Board

Ordered to be printed by

the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would amend the Management of Greenhouse Gas Act and the

Revenue Administration Act .

The Management

of Greenhouse Gas Act would be amended to

clarify that performance

credits are earned by an industrial facility for reducing greenhouse gas emissions

at that industrial facility;

apply to the Holyrood

Generating Station;

allow the Lieutenant-Governor

in Council to set greenhouse gas emissions reduction targets for industrial

facilities that emit between 15,000 and 25,000 tonnes of carbon dioxide

equivalent or more of greenhouse gases in a year;

clarify that it is only money that

is received by the minister from enforcement activities and the purchase of

fund credits that are required to be deposited into the Newfoundland and

Labrador Greenhouse Gas Reduction Fund;

require the minister to make

available to the public an annual report relating to the Newfoundland and Labrador Greenhouse Gas

Reduction Fund;

clarify that the advisory

council must provide recommendations before the minister may authorize a

payment from the Newfoundland

and Labrador Greenhouse Gas Reduction Fund;

clarify that the operator not

the owner of an industrial facility is responsible for reporting greenhouse gas

emissions under this Act;

allow the minister to delegate

his or her powers and duties under the Act and the regulations to the Canada-Newfoundland

and Labrador Offshore Petroleum Board in relation to industrial facilities in

the offshore area; and

allow the minister to enter

into an information sharing agreement with the Canada-Newfoundland and Labrador

Offshore Petroleum Board.

The Revenue

Administration Act would be amended to

provide for a 5 cent decrease

in the tax on diesel grade of gasoline and a 4 cent decrease in the tax on

other grades of gasoline; and

introduce a tax on carbon

products effective January 1, 2019.

A BILL

AN ACT TO AMEND THE MANAGEMENT OF

GREENHOUSE GAS ACT AND THE REVENUE ADMINISTRATION ACT

Analysis

MANAGEMENT

OF GREENHOUSE GAS ACT

S.2 Amdt.

Definitions

S.4 Amdt.

Application

S.5 Amdt.

Greenhouse gas emissions reduction target

S.5.1 Added

Opted-in

facility

S.6 Amdt.

Fund

S.7 Amdt.

Payments

from fund

S.10 Amdt.

Mandatory

reporting

S.11 R&S

Calculation

of greenhouse gas emissions

Ss.12.1 & 12.2 Added

12.1 Information sharing agreement

12.2

Delegation by

minister

S.29 Amdt.

Ministerial

regulations

S.30 Amdt.

Lieutenant-Governor

in Council regulations

S.30.1 Added

Transitional

REVENUE

ADMINISTRATION ACT

S.2 Amdt.

Definitions

S.5 Amdt.

Collection

of tax

S.9 Amdt.

Books and records

S.30 R&S

Excess

losses

S.32 Amdt.

Offences

S.37 Amdt.

Powers

of inspectors re: compliance

S.38 Amdt.

Contravention

of Act suspected

S.39 Amdt.

Determination

of compliance Parts III , III.1 & III.2

S.40 Amdt.

Samples

S.41 Amdt.

Contravention

suspected

S.51 R&S

Tax

levied on gasoline

S.56 Amdt.

Tax

S.57 Amdt.

No double tax

Ss.58 to 60 Rep.

58. Power to issue licences

59. Application for

licences

60. Power to suspend, etc.

S.62 Amdt.

Saving provision

Ss.64 & 65 Rep.

64. Retailer to post licence

65. Automatic revocation of licence

Parts III.1 & III.2 Added

PART

III.1

CARBON TAX

72.1 Tax

levied on carbon product

72.2 Carbon

product brought into province

72.3 Carbon

product held for consumption

72.4 Carbon

product not purchased at retail sale

72.5 No

double tax

72.6 Prohibited

sales of carbon product

72.7 Levying

the tax

72.8 Carbon

product delivery

72.9 Meters

required

72.10 Sealed equipment

PART

III.2

LICENCES RE: GASOLINE AND CARBON PRODUCTS

72.11 Issuance of licence

72.12

Application for licence

72.13

Suspension, cancellation & limitation of licence

72.14 Retailer to post licence

72.15

Automatic revocation of licence

30. S.108 Amdt.

Regulations re: gasoline tax

Ss.108.1 & 108.2 Added

108.1

Regulations re: carbon tax

108.2 Regulations

re:

licences under

Part III.2

Transitional

Commencement

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

MANAGEMENT OF GREENHOUSE GAS ACT

SNL2016 cM-1.001

(1) Section 2 of the Management of Greenhouse Gas Act is amended by renumbering paragraph

(

a) as paragraph (a.1) and adding immediately before that paragraph the

following:

(a) "board" means the

Canada-Newfoundland and Labrador Offshore Petroleum Board established under

the Canada-Newfoundland and Labrador

Atlantic Accord Implementation Act ( Canada ) and the Canada-Newfoundland and Labrador Atlantic

Accord Implementation Newfoundland and Labrador Act ;

(2) Section 2 of the Act is amended by adding

immediately after paragraph (

l) the following:

(l.1) "offshore area" means offshore area as defined in the Canada-Newfoundland and Labrador Atlantic

Accord Implementation Newfoundland and Labrador Act ;

(3) Section 2 of the Act is amended by deleting

the word "and" at the end of paragraph (

m) and by adding immediately

after that paragraph the following:

(m.1) "opted-in facility" means an

industrial facility designated under

section 5.1; and

(4) Paragraph 2(

n) of the Act is repealed and the

following substituted:

(n) "performance credit" means a credit

earned by an industrial facility where the industrial facility

(

i) has a greenhouse gas reduction target referred

to in

section 5, and

(ii) reduces its greenhouse gas emissions at the

industrial facility by more than its greenhouse gas emission reduction target.

2. (1) Subsection 4(2) of the Act is repealed and

the following substituted:

(2) Notwithstanding subsection (1), where an

industrial facility emits less than 15,000 tonnes of carbon dioxide equivalent

in 3 consecutive years, the operator of the industrial facility may apply to

the minister for an exemption from this Act.

(2) Subsection 4(4) of the Act is repealed.

3. (1) Subsection 5(1) of the Act is repealed and

the following substituted:

Greenhouse gas

emissions reduction target

(1) The

Lieutenant-Governor in Council may make regulations establishing annual

greenhouse gas emissions reduction targets for

(

a) industrial facilities that emit 25,000 tonnes

of carbon dioxide equivalent or more of greenhouse gases in any year since the

coming into force of this Act; and

(

b) opted-in facilities.

(2) Subsection 5(4) of the Act is repealed and the

following substituted:

(4) The Lieutenant-Governor in Council may make

regulations exempting an industrial facility referred to in paragraph (1)(

a) from

achieving its annual greenhouse gas emissions reduction target where the

industrial facility

(

a) emits less than 25,000 tonnes of carbon

dioxide equivalent or more of greenhouse gases in 3 consecutive years; and

(

b) applies to the minister for an exemption.

4. The Act is amended by adding immediately after

section 5 the following:

Opted-in facility

5.1

(1) An

industrial facility that emits between 15,000 and 25,000 tonnes of carbon

dioxide equivalent of greenhouse gases in a year may apply to the minister to

be designated as an opted-in facility.

(2) The minister may designate an industrial

facility as an opted-in facility where the industrial facility submits, on or

before September 1 of the year preceding the year in which the designation is intended

to be effective,

(

a) an application in the form and manner

determined by the minister;

(

b) an emissions report for the calendar year

preceding the date of application;

(

c) verification of the emissions report referred

to in paragraph (

b) in accordance with the regulations; and

(

d) any other documentation prescribed in the

regulations.

5. (1) Subsection 6(2) of the Act is repealed and

the following substituted:

(2) The minister shall deposit into the fund all

money received by him or her from

(

a) the operators of industrial facilities for the

purchase of fund credits; and

(

b) enforcement activities under this Act and the

regulations.

(2) Section 6 of the Act is amended by adding

immediately after subsection (12) the following:

(13) The minister shall make available to the

public an annual

report with respect to the fund, which shall include

(

a) a list of operators who

received money from the fund and the amount that each operator received;

(

b) information regarding the use of the money

that each operator received from the fund;

(

c) the anticipated reduction in greenhouse gas

emissions as a result of the money each operator received from the fund;

(

d) an update regarding the actual verified

reduction in greenhouse gas emissions as a result of the money each operator received

from the fund;

(

e) the financial statements of the fund;

(

f) the report of the auditor general in relation

to the financial statements of the fund; and

(

g) any other information prescribed in the

regulations.

6. Subsection 7(1) of the Act is repealed and the

following substituted:

Payments from

fund

(1) Notwithstanding

section 30 of the Financial

Administration Act , the minister may authorize payments from the fund

(

a) where

(

i) an operator submits an application in a form

set by the minister,

(ii) an operator provides proof satisfactory to the

minister that

(

A) the money will be used to achieve a verifiable

reduction in greenhouse gas emissions at an industrial facility within a

reasonable period of time, and

(

B) the reduction referred to in clause (

A) will

be in addition to any greenhouse gas reductions the industrial facility is

required to make to achieve its annual greenhouse gas emission reduction

target, and

(iii) the advisory council makes a recommendation

under subsection 8(1); or

(

b) where the advisory council makes a

recommendation under subsection 6(6) and the minister is satisfied that

(

i) the money will be used to achieve a verifiable

reduction in greenhouse gas emissions at an industrial facility within a

reasonable period of time, and

(ii) the reduction referred to in subparagraph (

i) will be in addition to any greenhouse gas reductions the industrial facility is

required to make to achieve its annual greenhouse gas emission reduction

target.

7. Subsection 10(1) of the Act is repealed and the

following substituted:

Mandatory reporting

(1) An

operator of an industrial facility to which this Act applies shall submit to

the minister annually a report regarding the greenhouse gas emissions released

and containing other information prescribed in the regulations.

Section 11 of the Act is repealed and the

following substituted:

Calculation of

greenhouse gas emissions

11. An operator of an industrial facility shall

calculate its greenhouse gas emissions using the methodology prescribed in the

regulations.

9. The Act is amended by adding immediately after

section 12 the following:

Information

sharing agreement

12.1 The

minister may enter into an information sharing agreement with the board and may

disclose or transfer records to, and share records with, the board in

accordance with the agreement.

Delegation by

minister

12.2 The

minister may, in writing, delegate a power, duty or function conferred or

imposed on him or her under this Act or the regulations to the board in

relation to an industrial facility located in the offshore area.

(1) Section 29 of the Act is amended by adding

immediately after paragraph (

c) the following:

(c.1) respecting the procedure and conduct of the

advisory council, including the establishment of committees;

(2) Section 29 of the Act is amended by adding

immediately after paragraph (

e) the following:

(e.1) respecting applications for designation as an

opted-in facility;

(e.2) respecting the designation of an industrial

facility as an opted-in facility, including the term and revocation of that

designation;

11. Paragraph 30(1)(

a) of the Act is repealed.

12. The Act is amended by adding immediately after

section 30 the following:

Transitional

30.1 Notwithstanding

subsection 5.1(2), the minister may designate an industrial facility as an

opted-in facility effective January 1, 2019 where the industrial facility

submits the documents referred to in paragraphs 5.1(2)(

a) to (

d) on or before

March 1, 2019.

REVENUE ADMINISTRATION ACT

SNL2009 cR-15.01

as amended

(1) Section 2 of the Revenue Administration Act is amended by adding immediately after

paragraph (

h) the following:

(h.1) "carbon product" means a product

listed in subsection 72.1(1);

(2) Section 2 of the Act is amended by adding

immediately after paragraph (

o) the following:

(o.1) "cubic metre" means the unit of

measurement known as the cubic metre and set out in the Weights and Measures Act ( Canada );

(3) Paragraph 2(aa) of the Act is repealed and the

following substituted:

(aa) "gasoline", except in

Part III.1,

includes every liquid or combination of liquids, under whatever name it is

known or sold, that is capable of being used for the purpose of generating

power in an internal combustion engine whether or not the liquid or combination

or a part of it is produced, derived or recovered from petroleum, natural gas,

shale or coal;

(4) Section 2 of the Act is amended by adding

immediately after paragraph (kk) the following:

(kk.1) "litre" means the unit of measurement

known as the litre and set out in the Weights

and Measures Act ( Canada );

(5) Paragraph 2(yy) of the Act is repealed and the

following substituted:

(yy) "outlet" means a station, shop,

establishment, vehicle or other place or thing from or in which gasoline or a

carbon product is kept for sale;

(6) Subparagraph 2(kkk)(iii) of the Act is

repealed and the following substituted:

(iii) gasoline or a carbon product not for resale

but

(

A) for his or her own consumption or use or his

or her own intended consumption or use or for the consumption or use or the

intended consumption or use of other persons at his or her expense, or

(

B) on behalf of or as the agent for a principal

who wishes to acquire the gasoline or carbon product for consumption or use by

that principal or by other persons at the expense of that principal;

(7) Subparagraph 2(mmm)(ii) of the Act is repealed

and the following substituted:

(ii) holds a licence authorizing that person to

sell gasoline or a carbon product or keep gasoline or a carbon product for sale

directly to retail purchasers;

(8) Paragraph 2(nnn) of the Act is repealed and

the following substituted:

(nnn) "sale" means a sale for cash or on

credit or a sale where the price is payable by instalments, and includes a

barter, an exchange and a contract by which at a price or for other consideration

a person gives gasoline, a carbon product, tobacco, a vehicle or tangible

personal property to another;

(9) Section 2 of the Act is amended by adding

immediately after paragraph (ooo) the following:

(ooo.1) "tax-exempt carbon product" means a

carbon product that is not taxed under this Act;

(10) Section 2 of the Act is amended by adding

immediately after paragraph (sss) the following:

(sss.1) "tonne" means the unit of

measurement known as the tonne or metric ton and set out in the Weights and Measures Act ( Canada );

(11) Subparagraph 2(yyy)(

i) of the Act is repealed

and the following substituted:

(

i) for the purpose of Parts III, III.1 and III.2,

means a person who holds a licence issued under this Act authorizing that

person to sell or keep gasoline or a carbon product for sale otherwise than to

retail purchasers, and

14. Subsection 5(1) of the Act is repealed and the

following substituted:

Collection of tax

(1) The

minister may designate a person as an agent of the minister for the collection

of the tax imposed under Parts III, III.1, VIII and IX of this Act.

15. Subsection 9(2) of the Act is repealed and the

following substituted:

(2) In addition to the requirements imposed under

subsection (1), a licensee under

Part III.2 shall keep accounts in the required

form of

(

a) all purchases, sales, deliveries, rebrandings,

transfers and losses of all grades or types of gasoline or carbon products by

that licensee in the province;

(

b) sales and deliveries by that licensee to

points outside the province;

(

c) sales and deliveries of tax-exempt gasoline

and tax-exempt carbon products; and

(

d) quantities on hand and quantities used in the

province by that licensee

and a licensee shall make returns to the

minister in the form, in the manner and at the time prescribed by regulation.

Section 30 of the Act is repealed and the

following substituted:

Excess losses

(1) A

person who has excess unverifiable losses, as determined by this section, shall

pay a penalty equal to the tax that would have been collectable by the person

if the quantity of gasoline or a carbon product that exceeds the threshold

prescribed in the regulations for an unverifiable loss had been sold to a purchaser

liable to pay tax under this Part.

(2) For the purpose of this section,

(

a) the amount of a person's unverifiable losses

of gasoline or a carbon product is the

amount by which the person's available inventory exceeds the amount of gasoline

or a carbon product that the person verifies to have been sold, lost, destroyed,

stolen, contaminated, consumed or distributed; and

(

b) a person has excess unverifiable losses to the

extent that the person's unverifiable losses of gasoline or a carbon product

for a period of 36 continuous months exceeds the amount prescribed in the

regulations of the person's available inventory of gasoline or a carbon product

for that period.

(3) For the purpose of this section, a person's

available inventory of gasoline or a carbon product for a period of 36 months

is calculated using the formula:

A+B-C

where

= the amount of the person's opening

inventory of gasoline or a carbon product at the beginning of the period;

= the amount of gasoline or a carbon

product produced, received or purchased by the person during the period; and

= the amount of the person's closing

inventory of gasoline or a carbon product at the end of the period.

17. Subsection 32(2) of the Act is repealed and the

following substituted:

(2) A person who

(

a) not being a retailer, sells gasoline or a

carbon product to a retail purchaser;

(

b) being a retailer, sells gasoline or a carbon

product to a retail purchaser elsewhere than at the outlet specified in his or

her retailer licence;

(

c) being a wholesaler, sells gasoline or a carbon

product for retail sale to a person who is not a retailer; or

(

d) not being a wholesaler or retailer, sells

gasoline or a carbon product to a retailer

is guilty of an offence.

18. Subsection 37(1) of the Act is repealed and the

following substituted:

Powers of inspectors

re: compliance

(1) An

inspector may, at all reasonable times, for a purpose related to the

administration or enforcement of this Act or the regulations, except Parts III,

III.1, III.2 and IX, inspect or examine the premises, processes, books and

records of a person that the inspector may consider relevant for the purpose of

determining compliance with this Act, and the inspector may, without a warrant,

(

a) enter any premises where

(

i) a business is carried on,

(ii) any property, or books and records are or may

be kept, or

(iii) anything is or is suspected by the inspector

of being done or stored in connection with a tax imposed under this Act;

(

b) make copies, extracts, photographs or videos

the inspector considers necessary;

(

c) require the owner or person in charge of a

premises to give the inspector all reasonable assistance, including the production

of books and records as requested by the inspector, and to answer all proper

questions relating to the administration or enforcement of this Act and, for

that purpose, require the owner or person in charge to attend at the premises

with the inspector; and

(

d) require the owner or person in charge to make

available the means to generate and manipulate books and records that are in

machine readable or electronic form and any other means or information

necessary for the inspector to assess the books and records.

19. Subsections 38(1) and (2) of the Act are

repealed and the following substituted:

Contravention of

Act suspected

(1) Where, during the course of an inspection

or examination under

section 37, or otherwise where an inspector believes on

reasonable grounds that there has been a contravention of this Act or the regulations,

except Parts III, III.1, III.2 and IX, the inspector may, with a warrant issued

under subsection (2), seize and take away any of the books or records that may

be required as evidence of a contravention and may retain those documents until

the time they are required in a court proceeding.

(2) A Provincial Court judge who is satisfied upon

oath or affirmation there are reasonable grounds for believing there is in or

on a business or private premises anything that may provide evidence with

respect to a suspected offence under this Act, except Parts III, III.1, III.2 and

IX, may issue a warrant authorizing an inspector to enter the premises and to

(

a) search;

(

b) examine the contents of the premises and make

those inquiries that the inspector considers necessary; and

(

c) copy, extract, photograph, video, seize and

take away evidence, books and records

for the purpose of investigating the

suspected offence.

20. Subsection 39(1) of the Act is repealed and the

following substituted:

Determination of

compliance Parts III, III.1 & III.2

(1) An

inspector may, at all reasonable times, for a purpose related to the

administration or enforcement of

Part III, III.1 or III.2 and any regulations

made under those Parts, inspect or examine the premises, processes, books and

records of a person that the inspector may consider relevant for the purpose of

determining compliance with those Parts, and the inspector may, without a

warrant,

(

a) enter any premises where

(

i) a business is carried on,

(ii) any property, or books and records are or may

be kept, or

(iii) anything is or is suspected by the inspector

of being done or stored in connection with a tax imposed under this Act;

(

b) make copies, extracts, photographs or videos

the inspector considers necessary;

(

c) require the owner or person in charge of a

premises to give the inspector all reasonable assistance, including the production

of books and records as requested by the inspector, and to answer all proper

questions relating to the administration or enforcement of

Part III, III.1 or

III.2 and any regulations made under those Parts and, for that purpose, require

the owner or person in charge to attend at the premises with the inspector; and

(

d) require the owner or person in charge to make

available the means to generate and manipulate books and records that are in

machine readable or electronic form and any other means or information

necessary for the inspector to assess the books and records.

21. Subsection 40(1) of the Act is repealed and the

following substituted:

Samples

(1) Where it is reasonably necessary for

the purpose of ensuring compliance with

Part III or III.1 and any regulations

made under those Parts, an inspector may, at reasonable times without a warrant,

(

a) inspect the contents of a tank containing

gasoline or a carbon product including the supply tank of an internal

combustion engine; and

(

b) for the purpose of analysis, take a sample of

gasoline or a carbon product not exceeding the quantity prescribed in the

regulations.

22. Subsections 41(1) and (2) of the Act are repealed

and the following substituted:

Contravention suspected

(1) A

Provincial Court judge who is satisfied by information upon oath or affirmation

that there are reasonable grounds for believing that there is on a premises,

vehicle or other motorized equipment or storage or bulk delivery facility

anything that there are reasonable grounds to believe will give evidence with

respect to an offence under

Part III, III.1 or III.2 and any regulations made

under those Parts may issue a warrant authorizing an inspector named in the

warrant to enter and search the premises, vehicle, or other motorized equipment

or storage or bulk delivery facility, and subject to those conditions that may

be specified in the warrant

(

a) make those inquiries and copies that are

considered necessary;

(

b) seize a sample of gasoline or a carbon product

for evidence or for analysis; or

(

c) seize the whole amount of gasoline or a carbon

product and bring it to a place of safe custody and keep it there until the

court by its judgment has disposed of it, after which, if it is confiscated,

the inspector shall dispose of it as the minister directs.

(2) Where an inspector seizes gasoline or a carbon

product under this Act, he or she may also seize and detain in

safe custody a vehicle, or other motorized equipment in which that gasoline or

carbon product was found or carried until

(

a) the matter has been disposed of and a tax

required to be paid under this Act has been paid; or

(

b) a charge has been laid under this Act and a

deposit or bond in an amount satisfactory to the minister has been provided by

the owner or operator of a vehicle or other motorized equipment so detained.

Section 51 of the Act is repealed and the following

substituted:

Tax levied on

gasoline

51. A

person who acquires gasoline at a retail sale in the province shall pay to the

Crown at the time of the sale

(

a) on propane fuel grade of gasoline, a tax of

$0.07 per litre;

(

b) on gasoline for the operation of sea-going

vessels or boats, other than pleasure craft, a tax of $0.035 per litre;

(

c) on diesel fuel grade of gasoline, a tax of

$0.165 per litre;

(

d) on gasoline for use in an aircraft, a tax of

$0.025 per litre; and

(

e) on all other grades of gasoline, a tax of $0.165

per litre.

24. (1) Subsection 56(1) of the Act is repealed and

the following substituted:

Tax

(1) Notwithstanding

section 51, an interjurisdictional carrier shall pay to the Crown a tax which

shall be calculated by the following formula:

tp = kms

x tr

d/l

where

= the tax payable by the

interjurisdictional carrier;

kms

= the number of kilometres travelled

within the province by the fleet during the reporting period;

= the total kilometres travelled in all jurisdictions

by the fleet during the reporting period;

= the total number of litres of gasoline

consumed by the fleet during the reporting period; and

= the tax rate per litre of gasoline set

out at paragraph 51(c).

(2) Section 56 of the Act is amended by adding

immediately after subsection (1) the following:

(1.1) In addition to the tax payable under

subsection (1), an interjurisdictional carrier who acquires gasoline at a

retail sale in the province shall pay to the Crown at the time of the sale a tax

at a rate that is equal to the rate prescribed for light fuel oil in paragraph

72.1(1)(g).

(1.2) The tax payable under subsection (1.1) shall

be calculated by the following formula:

tp = kms

x tr

d/l

where

= the tax payable by the interjurisdictional

carrier;

kms

= the number of kilometres travelled

within the province by the fleet during the reporting period;

= the total kilometres travelled in all

jurisdictions by the fleet during the reporting period;

= the total number of litres of gasoline

consumed by the fleet during the reporting period; and

= the tax rate per litre of light fuel

oil set out at paragraph 72.1(1)(g).

(3) Subsections 56(2) to (4) of the Act are

repealed and the following substituted:

(2) For the purpose of collecting the tax referred

to in subsections (1) and (1.2), an interjurisdictional carrier who acquires

gasoline at a retail sale in the province shall pay tax to the Crown as

required in

section 51 and subsection (1.1).

(3) Where the amount of tax paid under subsection

(2) during the reporting period exceeds the amount due under subsection (1) and

(1.2), the minister may refund the difference to the interjurisdictional

carrier or may pay over the difference to another jurisdiction which has entered

into an agreement with the minister under

section 72.

(4) Where the amount of tax paid under subsection

(2) is less than the amount due under subsection (1) and (1.2), the

interjurisdictional carrier shall pay the difference in amount to the minister

at the time prescribed by regulation for filing the return for that reporting

period.

Section 57 of the Act is amended by renumbering

it as subsection 57(1) and adding immediately after that subsection the following:

(2) Notwithstanding subsection (1), a tax imposed

under subsection 56(1) and (1.2) may be imposed on the same gasoline.

(3) Nothing in this

section prevents a tax from

being imposed under

section 51 and subsection 72.1(1) on the same gasoline or

carbon product.

26. Sections 58 to 60 of the Act are repealed.

27. Subsection 62(2) of the Act is repealed and the

following substituted:

(2) A person mentioned in subsection (1) shall not

rebrand products described in subsection (1) and sell them for consumption in

internal combustion engines, whether as taxable gasoline or otherwise, unless

that person is in possession of a wholesaler licence issued under

Part III.2.

28. Sections 64 and 65 of the Act are repealed.

29. The Act is amended by adding immediately after

section

72 the following:

PART III.1

CARBON TAX

Tax levied on

carbon product

72.1

(1) In addition to the tax that may be payable under

section 51, a person who acquires a

carbon product at a retail sale in the province shall pay to the Crown at the

time of the sale

(

a) on butane, a tax of $0.0356 per litre;

(

b) on ethane, a tax of $0.0204 per litre;

(

c) on gas liquids, a tax of $0.0333 per litre;

(

d) on gasoline, a tax of $0.0442 per litre;

(

e) on heavy fuel oil, a tax of $0.0637 per litre;

(

f) on kerosene, a tax of $0.0516 per litre;

(

g) on light fuel oil, a tax of $0.0537 per litre;

(

h) on methanol, a tax of $0.0220 per litre;

(

i) on naphtha, a tax of $0.0451 per litre;

(

j) on petroleum coke, a tax of $0.0767 per litre;

(

k) on pentanes plus, a tax of $0.0356 per litre;

(

l) on propane, a tax of $0.0310 per litre;

(

m) on coke oven gas, a tax of $0.0140 per cubic

metre;

(

n) on marketable natural gas, a tax of $0.0391

per cubic metre;

(

o) on non-marketable natural gas, a tax of $0.0517

per cubic metre;

(

p) on still gas, a tax of $0.0540 per cubic

metre;

(

q) on coke, a tax of $63.59 a tonne;

(

r) on high heat value coal, a tax of $45.03 a

tonne;

(

s) on low heat value coal, a tax of $35.45 a

tonne; and

(

t) on combustible waste, a tax of $39.95 a tonne.

(2) In this Part, "coke", "coke

oven gas", "combustible waste", "gas liquids",

"gasoline", "heavy fuel oil", "high heat value

coal", "kerosene", "light fuel oil", low heat value

coal", "marketable natural gas", "methanol",

"naphtha", "non-marketable natural gas", "pentanes

plus", "petroleum coke" and "still gas" have the same

meaning as in

section 3 of the Greenhouse

Gas Pollution Pricing Act (Canada).

Carbon product

brought into province

72.2

(1) A

person other than an interjurisdictional carrier, who brings a carbon product into

the province, or who receives delivery of a carbon product in the province, for

that person's own consumption or use as a consumer, shall immediately report

the matter in writing to the minister.

(2) A person who is required to make a report

under subsection (1) shall supply with the report to the minister the invoice

for the carbon product and all other pertinent information that may be required

by the minister in respect of the consumption or use of the carbon product.

(3) A person who is required to make a report

under subsection (1) shall pay to the Crown, at the same time as the report, a

tax in the amount that would be payable if the carbon product had been purchased

at a retail sale in the province by that person.

(4) This

section does not apply to a person

visiting the province as a tourist who brings into the province a carbon

product in accordance with and not exceeding the quantity prescribed by the

regulations.

Carbon product

held for consumption

72.3 A

person who has or keeps in that person's possession or under that person's

control a carbon product in respect of which no tax has been paid under this

Act and that he or she has, keeps or controls for himself or herself as a

consumer shall immediately pay to the Crown a tax in the amount that would be

payable if the carbon product had been purchased at a retail sale in the

province by that person.

Carbon product

not purchased at retail sale

72.4

(1) A

person who consumes or uses a carbon product originally acquired by that person

at a sale other than a retail sale and in respect of which no tax has been paid

under this Act shall, as soon as that person consumes or uses that carbon

product, pay to the Crown a tax in the amount that would be payable if the carbon

product had been purchased at a retail sale in the province by that person.

(2) Where a person who is not a collector acquires

a tax-exempt carbon product for resale, that person shall report that fact to

the minister.

(3) Where a person makes a report to the minister

under subsection (2) and

(

a) sells a quantity of that carbon product in

circumstances in which it would stop being a tax-exempt carbon product; or

(

b) consumes or uses a quantity of that carbon

product in circumstances in which it would stop being a tax-exempt carbon

product,

that person shall collect and pay over, or

pay, as the case may require, to the Crown, a tax in the amount that would be

payable if the carbon product had been purchased in the first instance by that

person at a retail sale in the province.

No double tax

72.5.

(1) Sections 72.1 to 72.4 do not authorize

the imposition of a tax under this Act more than once upon the same carbon

product.

(2) Nothing in this

section prevents a tax from

being imposed under

section 51 and subsection 72.1(1) on the same gasoline or

carbon product.

Prohibited sales

of carbon product

72.6

(1) A

person shall not offer for sale, keep for sale or sell a carbon product in the

province, except under the authority conferred by a licence issued to that person.

(2) A wholesaler shall not sell a carbon product

at a retail sale, unless the wholesaler also holds a valid retailer licence.

(3) A wholesaler shall not sell a carbon product

to a person for resale at a retail sale, unless that person holds a valid

retailer licence issued to that person.

(4) A retailer shall not sell or keep a carbon

product for retail sale unless the carbon product has been purchased by that

retailer from a wholesaler or another retailer.

Levying the tax

72.7

(1) At

the time of a sale of a carbon product to a retail purchaser the person making

the sale shall levy and collect the tax imposed by this Act and shall, in

accordance with the regulations, pay over the tax so collected to the collector

from whom the carbon product was acquired or, where the minister so requires,

directly to the minister.

(2) Where money by way of tax is collected on a

carbon product that was sold to a retail purchaser but acquired by the seller

otherwise than from a collector, that money shall be paid over to the minister

at the time and in the manner prescribed by the regulations.

(3) A person selling a carbon product to a retail

purchaser shall, on the request of the retail purchaser, deliver to the retail

purchaser an invoice showing the quantity of the carbon product sold to the

retail purchaser and the amount of the tax paid.

Carbon product delivery

72.8 The

driver of a vehicle engaged in transporting or delivering a carbon product

(

a) shall have in his or her possession in that

vehicle at all times an invoice or bill of lading respecting the carbon

products being carried on or by the vehicle and correctly identifying each

carbon product and the quantity of each carbon product loaded;

(

b) shall, when requested to do so by an

inspector, produce the invoice or bill of lading mentioned in paragraph (a);

and

(

c) shall not deliver a tax-exempt carbon product unless

the person to whom the carbon product is being delivered produces a tax-exemption

permit issued under the regulations.

Meters required

72.9

(1) The

minister may require a collector or another person dealing with a carbon

product to install at that person's expense automatic meters or other equipment

approved by the minister, and that person may use the information supplied by the

approved meters or equipment to establish the quantities of a carbon product

refined, acquired, delivered or sold.

(2) The minister shall be notified immediately by

the person who operates equipment approved under subsection (1) when meter

heads are changed on the equipment and that person shall at the time report the

old and new meter readings to the minister.

Sealed equipment

72.10

(1) The

minister may place a seal in the approved form or a lock on a meter or

mechanical injection system, drum or receptacle containing a carbon product,

notwithstanding where that meter, system, drum or receptacle is located.

(2) It is an offence to remove an approved seal or

lock placed on a meter, mechanical injection system, drum or receptacle without

first obtaining authority from the minister to do so.

PART III.2

LICENCES RE: GASOLINE AND CARBON PRODUCTS

Issuance of licence

72.11

(1) The

minister may issue to a person

(

a) a retailer licence authorizing that person to

sell or keep gasoline or a carbon product for sale directly to retail

purchasers at that outlet only as may be specified in that licence; or

(

b) a wholesaler licence authorizing that person

to sell or keep gasoline or a carbon product for sale otherwise than directly

to retail purchasers.

(2) Where, in the minister's sole discretion, the

minister considers it desirable to do so, the minister may issue both a

retailer licence and a wholesaler licence to a person.

(3) The minister may, for cause, refuse to issue a

licence to a person.

Application for

licence

72.12 An

application for a licence shall be

(

a) submitted to the minister in the form and

manner set by the minister; and

(

b) accompanied by the fee as may be set by the minister.

Suspension, cancellation

& limitation of licence

72.13 The

minister may, for cause,

(

a) suspend or cancel a licence;

(

b) limit the operation of a licence as to the grade

or type of gasoline or carbon product to be sold by the licensee or as to the

location where gasoline or a carbon product may be sold or apply both of those

limitations in respect of the operation of a licence; or

(

c) limit the operation of a licence in another

manner.

Retailer to post

licence

72.14 A

retailer shall post the retailer's licence and keep it posted in a conspicuous

place at the retail outlet or in other places that may be prescribed by the

regulations.

Automatic revocation

of licence

72.15 Where

a licensee stops carrying on a business of selling gasoline or a carbon product

in respect of which a licence was issued to the licensee under this Act, that

licence is automatically revoked and shall be returned, by the person to whom

it was issued or that person's personal representative, to the minister within

15 days of the date that business stops being carried on.

(1) Paragraph 108(

a) of the Act is repealed.

(2) Paragraph

108(

i) of the Act is repealed.

(3) Section 108 of the Act is amended by adding

immediately after paragraph (

j) the following:

(j.1) prescribing thresholds for unverifiable losses

and amounts for excess unverifiable losses relating to gasoline for the purposes

section 30;

(j.2) prescribing a quantity of gasoline for the

purposes of paragraph 40(1)(b);

(4) Paragraphs 108(

p) and (

q) of the Act are

repealed.

31. The Act is amended by adding immediately after

section 108 following:

Regulations re: carbon

tax

108.1 The

Lieutenant-Governor in Council may make regulations

(

a) prescribing reporting periods, the manner in

which returns and reports shall be filed and the tax shall be paid or remitted;

(

b) prescribing thresholds for unverifiable losses

and amounts for excess unverifiable losses relating to carbon products for the

purposes of

section 30;

(

c) prescribing a quantity of a carbon product for

the purposes of paragraph 40(1)(b);

(

d) exempting from this Act a carbon product used

for a purpose specified in the regulations;

(

e) providing that a carbon product of a

prescribed quantity brought into the province by a tourist is to be exempted

from this Act and prescribing the quantity to and the condition under which the

exemption is to apply;

(

f) exempting a class of persons from the payment

of the tax and defining the extent and conditions under which the exemption

will be provided;

(

g) authorizing and regulating tax exemption

permits to be issued to persons or classes of persons exempted, by this or

another Act or otherwise, from the payment of tax under this Act and

prescribing the contents of the permits, the periods for which they may be

issued, and authorizing the issue of the permits by the minister or other

persons; and

(

h) authorizing the issue of tax-exemption permits,

subject to those rules that the minister may prescribe, to refuse to issue the

permits and to suspend or cancel the permits in the circumstances that the

minister may prescribe.

Regulations re:

licences under

Part III.2

108.2 The

Lieutenant-Governor in Council may make regulations

(

a) prescribing the returns and statements to be

made by licensees and other persons, the information to be given in the returns

and statements, and by whom and in what manner they are to be made;

(

b) prescribing the date before which all

applications for licences may be made and the expiry date of licences;

(

c) designating the places at which retailers are

to post and keep licences posted; and

(

d) requiring licensees to indicate the grade or

type and price of gasoline or a carbon product offered for sale.

Transitional

32. A licence relating to the sale of gasoline

issued before the coming into force of this Act shall, until that licence

expires or is reissued,

(

a) be

considered to include carbon products; and

(

b) continue

in force as if it were issued under

Part III.2.

Commencement

(1) This Act, except subsection 2(2) and

section

11, comes into force January 1, 2019.

(2) Subsection

2(2) and

section 11 are considered to have come into force on March 7, 2017.

Queen's Printer