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Statutes of Newfoundland and Labrador 2018


CHAPTER 40

AN ACT TO AMEND THE MANAGEMENT OF GREENHOUSE GAS ACT AND THE REVENUE ADMINISTRATION ACT

(Assented to December 5, 2018)

Analysis


              MANAGEMENT OF GREENHOUSE GAS ACT

        1.   S.2 Amdt.
Definitions

        2.   S.4 Amdt.
Application

        3.   S.5 Amdt.
Greenhouse gas emissions reduction target

        4.   S.5.1 Added

              Opted-in facility

        5.   S.6 Amdt.

              Fund

        6.   S.7 Amdt.

              Payments from fund

        7.   S.10 Amdt.

              Mandatory reporting

        8.   S.11 R&S

              Calculation of greenhouse gas emissions

        9.   Ss.12.1 & 12.2 Added

              12.1 Information sharing agreement

              12.2 Delegation by minister

      10.   S.29 Amdt.

              Ministerial regulations

      11.   S.30 Amdt.

              Lieutenant-Governor in Council regulations

      12.   S.30.1 Added

              Transitional           

              REVENUE ADMINISTRATION ACT

            

      13.   S.2 Amdt.
Definitions

      14.   S.5 Amdt.

              Collection of tax

      15.   S.9 Amdt.
Books and records

      16.   S.30 R&S

              Excess losses

      17.   S.32 Amdt.
Offences

      18.   S.37 Amdt.

              Powers of inspectors re: compliance

      19.   S.38 Amdt.

              Contravention of Act suspected

      20.   S.39 Amdt.

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

      21.   S.40 Amdt.

              Samples

      22.   S.41 Amdt.

              Contravention suspected

      23.   S.51 R&S

              Tax levied on gasoline

      24.   S.56 Amdt.
Tax

      25.   S.57 Amdt.
No double tax

      26.   Ss.58 to 60 Rep.     
58.   Power to issue licences
59.   Application for
        licences
60.   Power to suspend, etc.

      27.   S.62 Amdt.
Saving provision

      28.   Ss.64 & 65 Rep.
64.   Retailer to post licence
65.   Automatic revocation             of licence

      29.   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

      31.   Ss.108.1 & 108.2 Added

              108.1 Regulations re: carbon            tax

              108.2 Regulations re:
          licences under Part                III.2

      32.   Transitional           

      33.   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. (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

        5. (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

        7. (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

      10. (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.

 

        8. 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.

 

      10. (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

      13. (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

        5. (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.

 

      16. Section 30 of the Act is repealed and the following substituted:

Excess losses

      30. (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

           A =  the amount of the person's opening inventory of gasoline or a carbon product at the beginning of the period;

           B =  the amount of gasoline or a carbon product produced, received or purchased by the person during the period; and

           C =  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

      37. (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

      38. (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

      39. (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

      40. (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

      41. (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.                      

 

      23. 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

      56. (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

           tp =  the tax payable by the interjurisdictional carrier;

       kms =  the number of kilometres travelled within the province by the fleet during the reporting period;

            d =  the total kilometres travelled in all jurisdictions by the fleet during the reporting period;

             l =  the total number of litres of gasoline consumed by the fleet during the reporting period; and

           tr =  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

           tp =  the tax payable by the interjurisdictional carrier;

       kms =  the number of kilometres travelled within the province by the fleet during the reporting period;

            d =  the total kilometres travelled in all jurisdictions by the fleet during the reporting period;

             l =  the total number of litres of gasoline consumed by the fleet during the reporting period; and

           tr =  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.      

 

      25. 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.                          

 

      30. (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 of 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

      33. (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.