BILL NO. 208
1st Session, 64th General Assembly
1 Charles III, 2022
The Honourable Tim Halman
Minister of Environment and Climate Change
First Reading: October 18, 2022
Second Reading: October 27, 2022
Third Reading: November 9, 2022 (LINK TO BILL AS PASSED)
Clause 1 amends the Environment Act to remove a reference to the cap-and-trade program in the regulation-making powers of the Minister of Environment and Climate Change.
Clause 2 repeals the provisions respecting greenhouse gas mitigation and the cap-and-trade program. Some provisions are excepted to allow for varying effective dates.
Clause 3 creates an output-based pricing system for carbon emissions.
Clause 4 removes a cross-reference to a provision being repealed and adds references to offences created in relation to the output-based pricing system.
Clause 5 allows the Supreme Court of Nova Scotia to order an offender with an unfilled compliance obligation to pay the obligation into the Nova Scotia Climate Change Fund.
Clause 6 removes a provision respecting administrative penalties related to the cap-and-trade program.
Clause 7 allows for administrative penalties in relation to the output-based pricing system.
Clause 8 provides for the effective dates of the provisions of this Bill.
1 Subsection 8A(1) of Chapter 1 of the Acts of 1994-95, the Environment Act, as enacted by Chapter 61 of the Acts of 2011 and amended by Chapter 10 of the Acts of 2017, is further amended by striking out subclause (a)(iv).
2 (1) Part XIA of Chapter 1, other than Section 112B and subsection 112P(1), is repealed.
3 Chapter 1 is further amended by adding immediately after Part XIA the following Part:
OUTPUT-BASED PRICING SYSTEM
- 112R In this Part,
(c) "compliance obligation" means any action including compliance options that a regulated facility is required to take under this Act and the regulations if the regulated facility has failed to reduce its emissions of greenhouse gases under subsection 112W(1);
- (i) a fund credit,
- (i) carbon dioxide,
- (i) manufacturing and processing,
- (i) the person who is responsible for an industrial facility's operations as of December 31st of a year, or
(t) "pipeline transmission system" means the portion of a transmission pipeline system within the province, used to transmit carbon dioxide or natural gas, of which the pipelines and associated installations or equipment, including compressor stations, storage installations and compressors, are operated in an integrated way, but excludes straddle plants or other processing installations and pipelines, installations or equipment that are used in the local distribution of natural gas and that are downstream of a metering station;
- (i) an industrial facility that emits fifty thousand tonnes or more of carbon dioxide equivalent of greenhouse gases in any of the three years immediately preceding January 1, 2023, and in any year thereafter, or
112S The Governor in Council may, by regulation, establish a greenhouse gas emissions output-based pricing system to which emission limits, compliance obligations and credits may be created, granted, cancelled or expired for the purpose of contributing to the achievement of provincial greenhouse gas emission targets and the mitigation of costs and impacts of reducing or limiting greenhouse gas emissions.
112T (1) Subject to the approval of the Governor in Council, the Minister may prescribe compliance periods, emission limits and compliance obligations for regulated facilities that the Minister considers appropriate in accordance with this Section and the regulations.
(2) The emission limits, compliance periods and compliance obligations prescribed pursuant to subsection (1) may include compliance options and credits that may be created, granted, cancelled or subject to an expiration date established by the Minister in accordance with this Act and the regulations.
112V (1) Unless exempted by the regulations, the owner or operator of a regulated facility shall register the regulated facility within the time and in the manner and form prescribed by the regulations.
(3) The owner or operator of a regulated facility that meets the criteria and requirements established in the regulations for removal of registration may apply to the Minister in accordance with the regulations requesting removal of its registration.
(4) The Minister may remove a regulated facility from registration pursuant to subsection (3) in accordance with the regulations and subject to such terms and conditions as the Minister considers appropriate.
(2) The Minister shall impose a compliance obligation, in accordance with the regulations, on the owner or operator of a regulated facility that does not reduce its greenhouse gas emissions as required under subsection (1).
(3) The owner or operator of a regulated facility upon which a compliance obligation is imposed shall, within the time prescribed by the regulations, fulfil its obligation in accordance with the regulations.
(2) The owner or operator of a regulated facility or a greenhouse gas emitter referred to in subsection (1) shall calculate its greenhouse gas emissions using the method prescribed by the regulations.
112ZA (1) The Minister may establish and maintain a registry that records the serial numbers of the compliance options issued by the Minister and the obtention, distribution, exchange, trading, sale, use, cancellation and expiration of compliance options, as applicable, and may include such requirements and information as the Minister deems appropriate for the purpose of this Part in accordance with the regulations.
(3) The information recorded in the registry, including personal information as defined in the Freedom of Information and Protection of Privacy Act, may be disclosed and published as authorized by the regulations.
112ZB The Minister may, on behalf of His Majesty in right of the Province and with the approval of the Governor in Council, enter into an agreement with the Government of Canada, the government of a province of Canada, the government of a foreign country or a state thereof or an international organization or an agency thereof for any purpose related to this Part.
(5) Except as may be directed by a court under subsection (f), the Fund may consist of and be credited with any amount from any of the following sources, as determined by the Treasury and Policy Board,
- (i) fees paid in relation to the administration of the output-based pricing system program, or
(6) Any amount that is required to be paid to the Province under clauses (5)(c) to (f) which remains unpaid is a debt due to His Majesty in right of the Province and may be recovered by an action in the name of His Majesty in right of the Province in a court of competent jurisdiction.
(2) Targets prescribed under subsection (1) may include specific greenhouse gas emission reduction or emission limitation targets for such class of activities as the Governor in Council considers appropriate.
112ZE No later than two years after the end of the period in respect of which provincial greenhouse gas emission reduction targets are prescribed pursuant to subsection 112ZD(1), the Minister shall table in the Assembly a report on the progress made in achieving the targets if the Assembly is then sitting or, where it is not then sitting, file the report with the Clerk of the Assembly.
112ZF (1) No later than one year following the end of the first compliance period prescribed by the regulations, the Minister shall release and publish a progress report on the output-based pricing system and thereafter, shall release an annual progress report on the system.
112ZG (1) At such times and in such manner as the regulations may prescribe, the Minister may require that the owner of a regulated facility submit any other information, records or reports required by the Minister in accordance with the regulations.
(3) The owner or operator of a regulated facility shall maintain any information, records or reports referred to in subsection (1) for the period prescribed by the regulations and allow the records to be audited in accordance with the regulations.
112ZH (1) The Minister may make regulations establishing standards in respect of all matters under this Part in which the Governor in Council has authority to make a regulation, excluding those matters referred to in clauses 112ZJ(1)(c) and (y).
(3) A standard authorized by this Section may incorporate by reference, in whole or in part, any regulatory instrument, code, other standard, procedure or guideline as it is amended from time to time before or after the making of the standard or as it read at a fixed time, and may require compliance with the regulatory instrument, code, standard, procedure or guideline so incorporated.
(4) Regulations or a standard made under this Section may vary in respect of different processes, greenhouse gases, facilities, businesses, sectors or products in respect of different categories of processes, greenhouse gases, facilities, businesses, sectors or products.
(5) Where there is a conflict or inconsistency between a regulation made by the Governor in Council under this Part and a standard made by the Minister under this Part, the regulation made by the Governor in Council prevails.
(6) The Minister may in accordance with the regulations made under Section 112ZJ prescribe the criteria, conditions and circumstances for when an exemption from a requirement or provision under this Part, the regulations or standards may apply.
(f) respecting the issuance of performance credits, including the setting of greenhouse gas emission reductions thresholds that must be reached by a regulated facility in order to be awarded a performance credit;
(h) respecting the registration of regulated facilities including the information, dates, manner and procedures to be followed and the terms and conditions and deadlines by which regulated facilities must register;
(l) respecting the imposition of requirements, terms, conditions, limits or prohibitions in respect of the creation, registration, obtention, distribution, exchange, trading, sale, use, variation, cancellation and expiration dates of compliance options and credits;
(p) respecting the designation of an industrial facility as an opted-in facility, including the threshold criteria for designation under Section 112U, the manner and form of application, deadlines, term and revocation of that designation;
(q) respecting the reduction of greenhouse gas emissions by regulated facilities including establishing the bases on which regulated facilities are required to reduce their greenhouse gas emissions including on an absolute basis or an emissions-intensity basis;
(s) respecting the monitoring of greenhouse gas emissions, the submission of greenhouse gas emission reports and the verification of these reports including the time, content and means by which the report must be submitted;
- (i) fees paid in relation to the administration of the output-based pricing system,
(2) A regulation made under subsection (1) may be of general application or may apply to such class or classes of matters or things as the Governor in Council determines and there may be different regulations with respect to different classes of matters or things.
(4) A regulation made under subsection (1) may incorporate by reference, in whole or in part, any regulatory instrument, any code, any standard established by the Minister or other standard, any procedure or any guideline as it is amended from time to time before or after the making of the regulation or as it read at a fixed time and may require compliance with the regulatory instrument, code, standard, procedure or guideline so incorporated.
(2) Section 158 of Chapter 1, as amended by Chapter 30 of the Acts of 2006, Chapter 61 of the Acts of 2011 and Chapter 10 of the Acts of 2017, is further amended by adding immediately after clause (hb) the following clause:
- (hc) contravenes subsection 112V(2) or 112W(4);
- (hc) directing an offender who has an unfulfilled compliance obligation under Part XIB to fulfil the compliance obligation by making a payment to the Province or to the Nova Scotia Climate Change Fund, as defined in Part XIB, of the amount of the compliance obligation, including any additional amounts imposed pursuant to Section 161;
7 Chapter 1 is further amended by adding immediately after Section 170A the following Section:
- 170B (1) Where the Minister is satisfied on reasonable grounds that a person has contravened Part XIB or the regulations made under that Part, the Minister may order the person to pay an administrative penalty.
(3) An order to pay an administrative penalty must be served on the person to whom it is addressed in accordance with, and must contain the information prescribed by, the regulations and, upon being served, becomes due and payable.
(5) Where a person contravenes Part XIB or the regulations made under that Part on more than one day, the person is liable to be ordered to pay an additional administrative penalty for each day on which the person continues the contravention.
(7) An order to pay an administrative penalty may be filed with the Supreme Court in accordance with the Nova Scotia Civil Procedure Rules and, upon being filed, is enforceable in the same manner as a judgment of the Supreme Court.
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