Acts and Regulations

2013-65 - Electricity from Renewable Resources

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NEW BRUNSWICK
REGULATION 2013-65
under the
Electricity Act
(O.C. 2013-287)
Filed September 24, 2013
Under section 142 of the Electricity Act, the Lieutenant-Governor in Council makes the following Regulation:
Citation
1This Regulation may be cited as the Electricity from Renewable Resources Regulation - Electricity Act.
Definitions
2The following definitions apply in this Regulation.
“approved generation facility” means a generation facility approved by the Minister under section 9. (installation de production approuvée)
“Certification Criteria Document” means the Environmental Choice Program Certification Criteria Document CCD-003, “Electricity - Renewable Low-impact”, dated December 15, 2003, as amended from time to time, and published by TerraChoice Environmental Marketing on behalf of Environment Canada. (document de critères de certification)
“compliance year” means the year beginning on April 1 of one year and ending on March 31 of the following year. (année d’observance)
“eligible electricity” means electricity generated in the Province at any of the following facilities owned and operated by an eligible large industrial enterprise: (électricité admissible)
(a) an approved generation facility;
(b) an eligible facility at which electricity is generated through the combustion of woody biomass or its by-products from the chemical manufacture of pulp, including black and red liquors, for the purposes of cogeneration or producing combined heat and power; or
(c) a facility at which electricity is generated through the combustion of woody biomass or its by-products from the chemical manufacture of pulp, including black and red liquors, for the purposes of cogeneration or producing combined heat and power.
“eligible facility” means a facility that meets the following criteria: (installation admissible)
(a) the facility has an electrical energy requirement of not less than 50 GWh per year;
(b) the facility obtains all or a portion of its electricity on a firm basis from the Corporation; and
(c) 50% or more of the primary products produced by the facility are exported to another province or territory of Canada or elsewhere.
“eligible large industrial enterprise” means an organization, or a group of organizations, that is directly or indirectly owned or controlled by the same person and that(grande entreprise industrielle admissible)
(a) owns and operates an eligible facility, and
(b) owns and operates a facility that generates eligible electricity.
“environmental attributes” means environmental premiums or tradeable credits that are recognized in Canada or elsewhere as being derived from the generation of an amount of electricity from a renewable resource. (attributs environnementaux)
“fiscal year” means the period commencing April 1 of one year and ending March 31 of the following year. (exercice financier)
Electricity from renewable resources
3(1)Subject to section 12, the Corporation shall obtain electricity from eligible large industrial enterprises and approved generation facilities in an amount not less than that prescribed below:
Compliance year
Minimum quantity of
electricity sold by the
Corporation in
the Province
(kWh)
 
2013
7%
2014
8%
2015
9%
2016 and onwards
10%
3(2)Electricity obtained from an eligible large industrial enterprise or an approved generation facility that does not include the immediate and unfettered rights of ownership of any and all the environmental attributes associated with its generation shall not be counted towards fulfilling the requirement under subsection (1).
3(3)Despite subsection (2), the electricity obtained from a sanitary landfill that is an approved generation facility is not required to include the immediate and unfettered rights of ownership of any and all the environmental attributes associated with the destruction of methane in order to count towards fulfilling the requirement under subsection (1).
Large Industrial Renewable Energy Purchase Program
4(1)Subject to subsection (2) and section 8, the Corporation shall, in accordance with the Large Industrial Renewable Energy Purchase Program, obtain enough eligible electricity from an eligible large industrial enterprise that the cumulative cost of firm electricity for all of the eligible facilities owned and operated by the eligible large industrial enterprise is reduced by the target reduction percent.
4(2)The target reduction percent for an eligible large industrial enterprise shall be based on the amount of electricity that the eligible facilities owned and operated by the eligible large industrial enterprise were contracted to obtain on a firm basis from the Corporation immediately before the eligible large industrial enterprise’s participation in the Large Industrial Renewable Energy Purchase Program.
Purchase price for eligible electricity
5The purchase price that the Corporation shall pay for eligible electricity under the Large Industrial Renewable Energy Purchase Program is $95.00 per MWh.
Calculation of Canadian average rate
6(1)On or before April 15 in each fiscal year, the Minister shall calculate the Canadian average rate for that fiscal year.
6(2)The Minister shall, using the representative customer load profiles, data and methodologies that the Minister considers to be relevant, calculate the Canadian average rate based on the rates that are in effect on April 1 for firm electricity in those provinces and territories of Canada selected by the Minister.
Target reduction percent
7On or before April 15 in each fiscal year, the Minister shall calculate the target reduction percent for that fiscal year by:
(a) subtracting the Canadian average rate for firm electricity for that fiscal year for those customers who are engaged in a particular manufacturing or processing activity from the rate for firm electricity that is in effect on April 1 for the eligible facilities that are owned and operated by eligible large industrial enterprises and that are engaged in that particular manufacturing or processing activity;
(b) dividing the amount determined under paragraph (a) by the rate for firm electricity that is in effect on April 1 for the eligible facilities that are owned and operated by eligible large industrial enterprises and that are engaged in that particular manufacturing or processing activity; and
(c) multiplying the amount determined under paragraph (b) by 100.
Special measures
8(1)If the facilities owned and operated by an eligible large industrial enterprise are not capable of generating a sufficient amount of eligible electricity that, if sold to the Corporation in accordance with the Large Industrial Renewable Energy Purchase Program, would result in a reduction in the cumulative cost of firm electricity by the target reduction percent for all of the eligible facilities owned and operated by the eligible large industrial enterprise, the Corporation may alter the eligible facilities’ contracted supply mix that was in place immediately before the eligible large industrial enterprise’s participation in the program by decreasing the proportion of firm electricity and increasing the proportion of interruptible electricity.
8(2)The savings achieved in the first year the eligible large industrial enterprise participates in the Large Industrial Renewable Energy Purchase Program as a result of an alteration in the eligible facilities’ contracted supply mix under subsection (1) shall apply in the subsequent years the eligible large industrial enterprise participates in the program and shall be taken into account when the Corporation obtains eligible electricity from the eligible large industrial enterprise under subsection 4(1).
8(3)The Corporation shall waive any restrictions or penalties that would otherwise apply to an alteration in the eligible facilities’ contracted supply mix under subsection (1).
Approval of generation facility
9(1)The Minister shall approve a generation facility for the purposes of section 3 if, on application, the operator of the facility satisfies the Minister that
(a) the facility generates alternative-use electricity, biogas-fuelled electricity, biomass-fuelled electricity, solar-powered electricity, water-powered electricity or wind-powered electricity, as those terms are defined in the Certification Criteria Document, and
(b) the facility is certified under the Environmental Choice Program established by Environment Canada as producing Type III Electricity, as that term is defined in the Certification Criteria Document.
9(2)Paragraph (1)(b) does not apply to
(a) an embedded generation facility that is connected to the electric power distribution system of the Corporation and that began generating electricity on or after April 1, 2001, or
(b) a generation facility operated by a customer of the Corporation if the customer has entered into a net metering agreement with the Corporation.
Maintaining approval
10In order to retain an approval under section 9, the operator or owner of the generation facility shall
(a) submit a report to the Minister, within five months after the end of each compliance year, that states the amount of electricity generated and sold to the Corporation from the facility on a monthly basis, and
(b) provide the Minister with a declaration
(i) that the facility continues to generate electricity of a type referred to in paragraph 9(1)(a), and
(ii) if applicable, that the facility, during the compliance year in question, retained the certification referred to in paragraph 9(1)(b).
Loss of approval
11The Minister shall revoke his or her approval if the generation facility no longer meets the applicable criteria set out in section 9 or if the operator or owner of the facility fails to comply with section 10.
Credits and debits
12(1)If the Corporation obtains electricity from eligible large industrial enterprises and approved generation facilities for a given compliance year in an amount in excess of the amount required to be obtained under subsection 3(1) for the compliance year, it shall
(a) credit the excess amount towards any shortfalls incurred in meeting the amount of electricity required to be obtained in previous compliance years, applying it in chronological order commencing with the earliest incurred shortfall, and
(b) bank any remainder for use as a credit towards another compliance year.
12(2)If the Corporation fails to obtain the amount of electricity required to be obtained under subsection 3(1) from eligible large industrial enterprises and approved generation facilities in a given compliance year, it shall record the shortfall and shall ensure that it is eliminated within three years after the year in which it is incurred.
Compliance report
13(1)The Corporation shall file a compliance report with the Minister within five months after the end of each compliance year.
13(2)The report shall include, but is not limited to the following:
(a) the total electricity sales in kWh for the compliance year;
(b) the minimum percentage requirement for the compliance year as set out in section 3;
(c) the amount of electricity obtained on a monthly basis from each eligible large industrial enterprise and each approved generation facility;
(d) credits carried over from previous compliance years, if any, and a statement as to the year or years in which the credits were recorded;
(e) shortfalls carried over from previous compliance years, if any, and a statement as to the year or years in which the shortfalls were recorded; and
(f) the credits or shortfalls to be carried over to the next compliance year, after the application of section 12.
13(3)The report shall be accompanied by a declaration by the President and Chief Executive Officer, with respect to the electricity referred to in paragraph (2)(c), other than the electricity generated from the destruction of methane and obtained from a sanitary landfill that is an approved generation facility, that the electricity obtained included the immediate and unfettered rights of ownership of any and all the environmental attributes resulting from its generation.
Plan for achieving compliance
14If a shortfall under subsection 12(2) is not eliminated within three compliance years after it is incurred, the Corporation shall submit to the Minister, by September 1 of the compliance year next following, a plan for eliminating the shortfall within the period of the current and next two compliance years.
Commencement
15This Regulation comes into force on October 1, 2013.