Explanatory Notes

 
Social Service Tax Act

SECTION 1: [Social Service Tax Act, section 68.01] adds a section imposing a levy on purchases of electricity, natural gas, fuel oil and any other prescribed energy products.

SECTION 2: [Social Service Tax Act, section 81] revises the section so that it applies for the purpose of refunds under the proposed section 68.01 (9) of the Act.

SECTION 3: [Social Service Tax Act, section 135.1] provides regulation-making authority in relation to the Innovative Clean Energy Fund levy under the proposed section 68.01 of the Act.

 
Special Accounts Appropriation and Control Act

SECTION 4: [Special Accounts Appropriation and Control Act, section 9.5] establishes the Innovative Clean Energy Fund special account and provides the purposes for which amounts may be paid out of the account.

SECTION 5: [Transitional -- Innovative Clean Energy Fund regulations] provides limited authority for retroactive regulations in relation to the proposed section 68.01 of the Social Service Tax Act.

SECTION 6: [Repeal by regulation] allows the proposed section 68.01 of the Social Service Tax Act, establishing the Innovative Clean Energy Fund levy, and its related regulation-making authority provision to be repealed by regulation.

BILL 30 – 2007
FINANCE STATUTES (INNOVATIVE CLEAN ENERGY FUND) AMENDMENT ACT, 2007

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

 
Social Service Tax Act

1 The Social Service Tax Act, R.S.B.C. 1996, c. 431, is amended by adding the following section to Division 9 of Part 2:

Innovative Clean Energy Fund levy

68.01 (1) In this section:

"energy product" means

(a) electricity,

(b) natural gas,

(c) fuel oil,

(d) propane, and

(e) other tangible personal property prescribed by regulation as an energy product,

but does not include tangible personal property excluded by regulation;

"fuel oil" means any liquid fuel, by whatever name known or sold, containing any derivative of coal, petroleum or natural gas, but does not include propane or butane.

(2) Subject to subsection (6) and the regulations, a levy on the purchase price of energy products is payable in accordance with subsections (3) to (5).

(3) A purchaser of an energy product must pay to the government at the time of making the purchase a levy on the purchase price of the energy product at the applicable rate prescribed by regulation.

(4) If section 11 (1) applies to a person in relation to an energy product, the person must

(a) immediately report the matter in writing to the commissioner,

(b) supply to the commissioner all pertinent information required by the commissioner in respect of the energy product, and

(c) pay to the government, within 23 days or other prescribed period after the last day of the month in which the energy product is brought or sent into, or is delivered in, British Columbia, a levy on the purchase price of the energy product at the applicable rate prescribed by regulation,

and for these purposes section 11 (2) and (2.1) applies.

(5) For certainty, subsections (3) and (4) apply in relation to all deliveries of energy products received on or after the date on which this section comes into force, including deliveries received under a contract entered into before that date.

(6) Fuel taxed under or exempted from tax under the Motor Fuel Tax Act is exempt from a levy under this section.

(7) A levy under this section

(a) is additional to any tax under Division 1 of this Part in respect of that purchase, and

(b) for the purposes of the tax under Division 1 of this Part, is not to be considered as part of the purchase price.

(8) For the purposes of section 9.5 (2) (a) [Innovative Clean Energy Fund] of the Special Accounts Appropriation and Control Act, if requested by the commissioner or if required by the regulations, a vendor or a person referred to in section 93 (1.1) must report to the commissioner the amounts that were required under this section to be paid in relation to their sales of the energy product.

(9) If applicable,

(a) a person who has paid more than the prescribed maximum amount of the levy under this section within the prescribed period of time may, after the end of that period, apply to the commissioner for a refund of the amount paid in excess of that maximum amount, and

(b) on receipt of evidence satisfactory to the commissioner, the commissioner must refund that excess to the person out of the consolidated revenue fund.

2 Section 81 (a) is repealed and the following substituted:

(a) by the person who paid the tax in relation to which the refund is claimed, and .

3 The following section is added:

Regulations in relation to Innovative Clean Energy Fund levies

135.1 (1) The Lieutenant Governor in Council may make regulations in relation to section 68.01 [Innovative Clean Energy Fund levy] as follows:

(a) prescribing tangible personal property as an energy product;

(b) excluding tangible personal property from the definition of "energy product";

(c) prescribing rates for a levy under the section;

(d) establishing reporting requirements for the purposes of subsection (8) of the section;

(e) prescribing a maximum amount and period of time for the purposes of subsection (9) of the section;

(f) exempting one or more classes of persons or purchases from the levy under the section, subject to any terms and conditions established by the regulation;

(g) providing that a levy under that section no longer applies in relation to an energy product.

(2) Regulations under subsection (1) may be different for one or more of the following:

(a) different energy products;

(b) different classes of persons;

(c) different classes of use of energy products;

(d) different classes of distribution or delivery of energy products.

 
Special Accounts Appropriation and Control Act

4 The Special Accounts Appropriation and Control Act, R.S.B.C. 1996, c. 436, is amended by adding the following section:

Innovative Clean Energy Fund special account

9.5 (1) A special account, to be known as the Innovative Clean Energy Fund special account, is established.

(2) The special account consists of the following:

(a) for each quarter of the fiscal year, an amount that the Minister of Finance, by written estimate, estimates to be equal to all the revenue received during that quarter that has been derived from levies under section 68.01 of the Social Service Tax Act;

(b) any other amounts received by the government for payment into the special account.

(3) Despite section 21 (3) of the Financial Administration Act, the minister charged with the administration of this section may pay money out of the special account for the following purposes:

(a) for projects, programs or initiatives that minister considers will

(i) address specific British Columbia energy issues, or related environmental issues that have been identified by the government and

(ii) do one or more of the following:

(A) support the development or adoption of pre-commercial clean energy technologies, or of clean energy technologies not currently used in British Columbia;

(B) reduce the environmental impact of the use, production, generation, storage, transmission, delivery, provision or conversion of energy;

(C) demonstrate or promote British Columbia clean energy technologies that have good potential for market demand in other jurisdictions;

(D) reduce the cost or improve the reliability of clean energy sources or associated technology;

(E) support energy efficiency or conservation;

(b) with the approval of the Minister of Finance, for the administration of the special account.

 
Transitional and Repeal

Transitional -- Innovative Clean Energy Fund regulations

5 If made before December 31, 2007, regulations under section 135.1 of the Social Service Tax Act may be made retroactive to a date on or after the date on which that section comes into force, and if made retroactive are deemed to have come into force on the specified date.

Repeal by regulation

6 Sections 68.01 and 135.1 of the Social Service Tax Act may be repealed by regulation of the Lieutenant Governor in Council.

Commencement

7 This Act comes into force by regulation of the Lieutenant Governor in Council.

 
Explanatory Notes

 
Social Service Tax Act

SECTION 1: [Social Service Tax Act, section 68.01] adds a section imposing a levy on purchases of electricity, natural gas, fuel oil and any other prescribed energy products.

SECTION 2: [Social Service Tax Act, section 81] revises the section so that it applies for the purpose of refunds under the proposed section 68.01 (9) of the Act.

SECTION 3: [Social Service Tax Act, section 135.1] provides regulation-making authority in relation to the Innovative Clean Energy Fund levy under the proposed section 68.01 of the Act.

 
Special Accounts Appropriation and Control Act

SECTION 4: [Special Accounts Appropriation and Control Act, section 9.5] establishes the Innovative Clean Energy Fund special account and provides the purposes for which amounts may be paid out of the account.

SECTION 5: [Transitional -- Innovative Clean Energy Fund regulations] provides limited authority for retroactive regulations in relation to the proposed section 68.01 of the Social Service Tax Act.

SECTION 6: [Repeal by regulation] allows the proposed section 68.01 of the Social Service Tax Act, establishing the Innovative Clean Energy Fund levy, and its related regulation-making authority provision to be repealed by regulation.