Acts and Regulations

2006-58 - Electricity from Renewable Resources

Table of contents
Full text
Revoked on 1 October 2013
NEW BRUNSWICK
REGULATION 2006-58
under the
Electricity Act
(O.C. 2006-274)
Filed July 27, 2006
Under section 149 of the Electricity Act, the Lieutenant-Governor in Council makes the following Regulation:
Repealed: 2013, c.7, s.168
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 4. (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 the 31st day of March 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 standard service supplier; 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 in one year and ending March 31 the next year. (exercice financier)
2012-2
Electricity from renewable resources
3(1)Subject to section 7, the standard service supplier 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
standard service supplier in
the Province
(kilowatt-hours)
 
2007
1%
2008
2%
2009
3%
2010
4%
2011
5%
2012
6%
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).
2012-2
Large Industrial Renewable Energy Purchase Program
2012-2
3.1(1)Subject to subsection (2) and section 3.5, the standard service supplier 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.
3.1(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 standard service supplier immediately prior to the eligible large industrial enterprise’s participation in the Large Industrial Renewable Energy Purchase Program.
2012-2
Purchase price for eligible electricity
2012-2
3.2The purchase price that the standard service supplier shall pay for eligible electricity under the Large Industrial Renewable Energy Purchase Program is $95.00 per MWh.
2012-2
Calculation of Canadian average rate
2012-2
3.3(1)On or before March 31 in each year, the Minister shall calculate the Canadian average rate for the next fiscal year.
3.3(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 will be in effect on April 1 for firm electricity in those provinces and territories of Canada selected by the Minister.
2012-2
Target reduction percent
2012-2
3.4On or before March 31 in each year, the Minister shall calculate the target reduction percent for the next fiscal year by:
(a) subtracting the Canadian average rate for firm electricity for the next fiscal year for those customers who are engaged in a particular manufacturing or processing activity from the rate for firm electricity that will be 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 in paragraph (a) by the rate for firm electricity that will be 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 in paragraph (b) by 100.
2012-2
Special measures
2012-2
3.5(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 standard service supplier 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 standard service supplier may alter the eligible facilities’ contracted supply mix that was in place immediately prior to the eligible large industrial enterprise’s participation in the Program by decreasing the proportion of firm electricity and increasing the proportion of interruptible electricity.
3.5(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 standard service supplier obtains eligible electricity from the eligible large industrial enterprise under subsection 3.1(1).
3.5(3)The standard service supplier shall waive any restrictions or penalties that would otherwise apply to an alteration in the eligible facilities’ contracted supply mix under subsection (1).
2012-2
Approval of generation facility
4(1)The Minister shall approve a generation facility for the purposes of section 3 if, upon 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.
4(2)Paragraph 4(1)(b) does not apply to
(a) an embedded generation facility that is connected to the electric power distribution system of the standard service supplier and that began generating electricity on or after April 1, 2001, or
(b) a generation facility operated by a customer of the standard service supplier if the customer has entered into a net metering agreement with the standard service supplier.
Maintaining approval
5In order to retain an approval under section 4, the operator or owner of the generation facility shall
(a) submit a report to the Minister, within 5 months after the end of each compliance year, that states the amount of electricity generated and sold to the standard service supplier 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 in paragraph 4(1)(a), and
(ii) if applicable, that the facility, during the compliance year in question, retained the certification referred to in paragraph 4(1)(b).
Loss of approval
6The Minister shall revoke his or her approval if the generation facility no longer meets the applicable criteria set out in section 4 or if the operator or owner of the facility fails to comply with section 5.
Credits and debits
7(1)If the standard service supplier 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 such 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.
7(2)If the standard service supplier 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.
2012-2
Compliance report
8(1)The standard service supplier shall file a compliance report with the Minister within 5 months after the end of each compliance year.
8(2)The report shall include, but is not limited to following:
(a) the total of its electricity sales in kilowatt-hours 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;
(f) the credits or shortfalls to be carried over to the next compliance year, after the application of section 7.
8(3)The report shall be accompanied by a declaration by the chief executive officer of the standard service supplier, 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.
2012-2
Plan for achieving compliance
9If a shortfall under subsection 7(2) is not eliminated within 3 compliance years after it is incurred, the standard service supplier shall submit to the Minister, by September 1st of the compliance year next following, a plan for eliminating the shortfall within the period of the current and next 2 compliance years.
N.B. This Regulation is consolidated to October 1, 2013.