BILL NO. 29

(as introduced)

1st Session, 63rd General Assembly
Nova Scotia
66 Elizabeth II, 2017



Government Bill



Marine Renewable-energy Act
(amended)



The Honourable Geoff MacLellan
Minister of Energy



First Reading: October 5, 2017

(Explanatory Notes)

Second Reading: October 12, 2017

Third Reading: October 20, 2017 (LINK TO BILL AS PASSED)

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Explanatory Notes

Clause 1 amends the definitions of "generator", "order" and "permit area" and adds definitions of "demonstration permit" and "Procurement Administrator".

Clause 2 provides that the provisions of, and the regulations made under, the Marine Renewable-energy Act respecting a call for applications prevail over Section 4B of the Electricity Act and the regulations made under that Section in the event of a conflict.

Clause 3 exempts generators interconnected in accordance with a demonstration permit from the prohibition of interconnecting a generator situated in marine waters outside of a marine renewable-electricity area with the electrical grid of a public utility or an onshore electricity consumer and requires the disconnection of such a generator if the interconnection ceases to be in accordance with a demonstration permit.

Clause 4 provides for the delegation by the Minister of Energy of the authority to issue a call for applications to a Procurement Administrator appointed under the Electricity Act.

Clause 5 governs the delegation of the authority to issue a call for applications but not the authority to issue a licence when the delegate is a Procurement Administrator.

Clause 6 expands the scope of what a licence authorizes its holder to construct, install and operate.

Clause 7 allows for a person to apply for a demonstration permit and restricts the circumstances under which the Minister may approve such a permit.

Clause 8 provides for the issuance of a demonstration permit and requires that the exercise of authority under any permit always be restricted to the permit area specified in the permit.

Clause 9 provides for the terms and conditions applicable to demonstration permits.

Clause 10 requires the Minister to establish performance targets for generators constructed, installed or operated under a demonstration permit when issuing or renewing the permit.

Clause 11 limits a permit holder's exemption from being required to enter into a lease or obtain a licence or other authorization under certain Acts in respect of activities authorized by the permit to activities within an area of marine renewable-energy priority.

Clause 12 reflects a change from some permits having a permit area to all permits having a permit area.

Clause 13 reflects a change from some permits having a permit area to all permits having a permit area.

Clause 14 provides that a demonstration permit may not be extended but may be renewed for multiple terms not exceeding 5 years each, so long as the aggregate of the initial term and any renewals does not exceed 18 years.

Clause 15 transfers the authority to require a licence holder or permit holder to provide security or carry insurance, or do both, from the regulations to the Minister.

Clause 16 deems the holder of a demonstration permit issued in respect of a generator and the public utility that owns the electrical grid to which the generator is to be interconnected to have entered into a power purchase agreement and governs power purchase agreements and the procurement of electricity under such agreements.

Clause 17 amends a heading to include a reference to administrative penalties.

Clause 18 repeals provisions creating a lien when an order of the Minister to recover costs, expenses or charges incurred when investigating a matter in connection with which an order is issued or the contravention of an order and respecting the filing of an order with the Supreme Court of Nova Scotia.

Clause 19 allows the Minister to impose an administrative penalty on a person who contravenes the Act or the regulations, a term or condition of a licence or permit or a ministerial order issued under subsection 58(1) of the Act.

Clause 20 updates a provision governing the service of ministerial orders to include a reference to orders imposing administrative penalties.

Clause 21 clarifies the means by which the Minister may amend or revoke an order.

Clause 22 provides for the filing of certain ministerial orders with the Supreme Court of Nova Scotia for the purpose of making them enforceable in the same manner as a judgment of that Court.

Clause 23 allows royalties, fees and rents to be collected from permit holders as well as licence holders and makes the royalties payable in respect of the use of Crown lands and marine renewable-energy resources—rather than the production of electricity—under a licence or permit.

Clause 24 removes the authority to make regulations prescribing circumstances in which a licence holder or permit holder is required to provide security or carry insurance, adds regulation-making powers respecting administrative penalties and revises the regulation-making powers respecting royalties, fees and rents to reflect the changed basis on which such royalties, fees and rents are payable.

Clause 25 replaces the Schedule to the Act that sets out the boundaries of the FORCE Marine Renewable-electricity Area.

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An Act to Amend Chapter 32
of the Acts of 2015,
the Marine Renewable-energy Act

Be it enacted by the Governor and Assembly as follows:

1 Subsection 3(1) of Chapter 32 of the Acts of 2015, the Marine Renewable-energy Act, is amended by

(a) adding immediately after clause (d) the following clause:

(b) adding ", or any collectively operated arrangement of devices or technologies," immediately after "technology" in the first line of clause (h);

(c) striking out "or 59(1)" in the second line of clause (t) and substituting ", 59(1) or 59A(1)";

(d) striking out ", if any," in the first line of clause (v); and

(e) adding immediately after clause (v) the following clause:

2 Chapter 32 is further amended by adding immediately after Section 4 the following Section:

3 Section 24 of Chapter 32 is amended by adding "(1)" immediately after the Section number and adding the following subsections:

4 Chapter 32 is further amended by adding immediately after Section 26 the following Section:

5 Section 27 of Chapter 32 is amended by adding immediately after subsection (2) the following subsection:

6 Subsection 29(1) of Chapter 32 is amended by adding ", including any cable or other equipment or structure owned by the licence holder and used or intended to be used with the generators" immediately after "generators" in the last line.

7 (1) Subsection 35(1) of Chapter 32 is repealed and the following subsection substituted:

(2) Section 35 of Chapter 32 is further amended by adding immediately after subsection (6) the following subsection:

8 (1) Subsection 36(1) of Chapter 32 is amended by

(a) striking out "or" at the end of clause (a);

(b) striking out the period at the end of clause (b) and substituting "; or"; and

(c) adding immediately following clause (b) the following clause:

(2) Subsection 36(2) of Chapter 32 is amended by striking out "may be restricted to an" in the second line and substituting "shall be restricted to the".

9 (1) Clause 38(1)(a) of Chapter 32 is amended by

(a) striking out "and" at the end of subclause (iv); and

(b) adding immediately after subclause (iv) the following subclause:

(2) Subsection 38(2) of Chapter 32 is amended by

(a) striking out "issued under clause 36(1)(a)" in the first line and substituting "to undertake an activity referred to in clause 36(1)(a) or (c)"; and

(b) striking out "unconnected" in the first line of clause (a).

(3) Section 38 of Chapter 32 is further amended by adding immediately after subsection (2) the following subsection:

10 Chapter 32 is further amended by adding immediately after Section 38 the following Section:

11 Section 39 of Chapter 32 is amended by adding "within an area of marine renewable-energy priority" immediately after "permit" in the last line.

12 Subsection 40(1) of Chapter 32 is amended by striking out "Where a permit area is established for a permit" in the first line and substituting "When the permit area of a permit is established".

13 Clause 41(b) of Chapter 32 is amended by striking out "where applicable,".

14 (1) Subsection 42(1) of Chapter 32 is amended by striking out "The" in the first line and substituting "Subject to this Section, the".

(2) Section 42 is further amended by adding immediately after subsection (1) the following subsections:

15 Subsection 43(1) of Chapter 32 is amended by

(a) striking out "Where required to do so by the regulations, a" in the first line and substituting "A"; and

(b) adding ", as may be required by the Minister" immediately after "both" in the last line.

16 Chapter 32 is further amended by adding immediately after Section 49 the following heading and Section:

POWER PURCHASE AGREEMENTS FOR GENERATORS
UNDER DEMONSTRATION PERMITS

17 The heading immediately before Section 58 of Chapter 32 is amended by adding "AND ADMINISTRATIVE PENALTIES" immediately after "ORDERS".

18 Subsections 59(2) and (3) of Chapter 32 are repealed.

19 Chapter 32 is further amended by adding immediately after Section 59 the following Section:

20 Subsection 60(1) of Chapter 32 is amended by striking out "or 59(1)" in the second line and substituting ", 59(1) or 59A(1)".

21 (1) Subsection 62(1) of Chapter 32 is amended by adding ", by order," immediately after "may" in the first line.

(2) Subsection 62(2) of Chapter 32 is amended by striking out "amended or revoked" in the first line and substituting "issued".

22 Chapter 32 is further amended by adding immediately after Section 62 the following Section:

23 Section 63 of Chapter 32 is repealed and the following Section substituted:

24 (1) Subsection 71(1) of Chapter 32 is amended by

(a) striking out clause (o); and

(b) striking out clause (v) and substituting the following clauses:

(2) Subsection 71(2) of Chapter 32 is amended by

(a) striking out clause (m); and

(b) striking out clause (t) and substituting the following clause:

25 Schedule C of Chapter 32 is repealed and the following Schedule substituted:

SCHEDULE C

FORCE MARINE
RENEWABLE-ELECTRICITY AREA

All those certain parcels of land covered by water near Black Rock, Cumberland County, Nova Scotia, Parcel "A" and Parcel "B" as shown on "Plan of Survey of Parcels 'A' & 'B' Submerged Crown Land, Minas Channel (Black Rock), Cumberland County, Nova Scotia" bearing field plot No. P-125/16, dated 22 December 2016, prepared by W.B. MacDonald NSLS for Order of Survey S-043/16 filed at the Department of Natural Resources Office, Halifax, Nova Scotia, and particularly described as follows:

BEGINNING at a point located South 46° 08' 37" East a distance of 572.525 metres from Nova Scotia coordinate monument number 15028;

THENCE North 61° 45' 00" East a distance of 37 metres more or less to a point at ordinary high water mark as shown on the plan;

THENCE southeasterly along a portion of the shore of Minas Channel at ordinary high water mark a distance of 100 metres more or less to a point;

THENCE South 10° 30' 46" West a distance of 46 metres more or less to a point located South 55° 34' 00" East a distance of 134.544 metres from the point of beginning;

THENCE South 10° 30' 46" West a distance of 309.867 metres to a point;

THENCE South 53° 38' 38" West a distance of 699.837 metres to a point;

THENCE South 87° 26' 14" West a distance of 724.802 metres to a point;

THENCE South 00° 00' 00" West a distance of 100.721 metres to a point;

THENCE North 90° 00' 00" West a distance of 1599.579 metres to a point;

THENCE North 00° 00' 00" West a distance of 999.491 metres to a point;

THENCE South 90° 00'00" East a distance of 1599.579 metres to a point;

THENCE South 00° 00' 00" West a distance of 87.741 metres to a point;

THENCE North 83° 52' 39" East a distance of 440.788 metres to a point;

THENCE South 75° 55'1 1" East a distance of 598.049 metres to a point;

THENCE North 61° 45' 00" East a distance of 243.960 metres to the PLACE OF BEGINNING.

Excepting thereout all that parcel of land and land covered by water, internal to Parcel "B" and shown on the plan as "Crown Land reserved from lease", particularly described as follows:

BEGINNING on the east boundary of Parcel "A" at a point located North 00° 00' 00" East a distance of 157.341 metres from the southwest corner of Parcel "B" as shown on the plan;

THENCE North 50° 55' 40" East a distance of 400.910 metres to a point;

THENCE North 77° 15' 17" East a distance of 352.098 metres to a point;

THENCE South 76° 59' 26" East a distance of 397.796 metres to a point;

THENCE South 53° 38' 38" West a distance of 348.761 metres to a point;

THENCE South 87° 26' 14" West a distance of 762.145 metres to the PLACE OF BEGINNING.

The lands so described, comprising Parcels "A" and "B", contain a total area of 232.060 Hectares more or less.

Bearings are referred from the modified transverse mercator grid north, central meridian 64°30' West longitude.

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