BILL 31 – 2008
GREENHOUSE GAS REDUCTION (EMISSIONS STANDARDS) STATUTES AMENDMENT ACT, 2008

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

Environmental Management Act

1 Section 1 (1) of the Environmental Management Act, S.B.C. 2003, c. 53, is amended by adding the following definition:

"greenhouse gas" has the same meaning as in the Greenhouse Gas Reduction Targets Act; .

2 The following Part is added:

Part 6.1 — Greenhouse Gas Reduction

Division 1 — Definitions

Definitions

76.1  For the purposes of this Part:

"attributable", in relation to greenhouse gas emissions, means attributable under the regulations;

"carbon dioxide equivalent" means the mass of carbon dioxide that would produce the same global warming impact as a given mass of another greenhouse gas, as determined in accordance with the regulations;

"coal-based generating facility" means a facility that is prescribed by regulation as a coal-based generating facility;

"compliance period" means the period prescribed by regulation for the purposes of section 76.4 [electricity generation must have net zero emissions];

"electricity generating facility" means a facility that is prescribed by regulation as an electricity generating facility;

"emission offset" means an emission offset, as established, approved or recognized under the regulations for the purpose of

(a) reducing or avoiding greenhouse gas emissions into the atmosphere, or

(b) removing greenhouse gas from the atmosphere;

"existing electricity generating facility" means an electricity generating facility that is prescribed by regulation as an existing electricity generating facility;

"new electricity generating facility" means an electricity generating facility that is not an existing electricity generating facility;

"operator", in relation to a coal-based generating facility or an electricity generating facility, means the person considered under the regulations to be the operator of the facility;

"use of coal for the generation of electricity" includes the use of coal for the production of an energy source that is reasonably expected to be used for the generation of electricity.

Division 2 — Waste Management Facilities

Management of greenhouse gases at
waste management facilities

76.2  The owner or operator of a waste management facility of a prescribed class must manage, in accordance with the regulations, specified greenhouse gases produced from wastes handled at the waste management facility.

Regulations for purposes of Division 2

76.21  (1) Without limiting section 138 (1) [general authority to make regulations], the Lieutenant Governor in Council may make regulations as follows:

(a) specifying greenhouse gases for the purposes of this Division;

(b) prescribing actions that must be taken in relation to either or both of the following:

(i) the management or reduction of specified greenhouse gases;

(ii) the recovery of energy potential from specified greenhouse gases;

(c) regulating and imposing requirements and prohibitions in relation to actions required under paragraph (b);

(d) regulating and imposing requirements and prohibitions for the design, siting and operation of any works, activities or operations related to the management of, or the recovery of energy potential from, greenhouse gases;

(e) exempting any works, activities or operations or any class of persons, works, activities or operations from any or all of the provisions of the regulations in circumstances or on conditions that the Lieutenant Governor in Council prescribes;

(f) imposing monitoring and reporting requirements in relation to

(i) greenhouse gases or the recovery of energy potential from greenhouse gases,

(ii) handling, treating, transporting, discharging or storing greenhouse gases or energy potential recovered from greenhouse gases, and

(iii) places and things that the Lieutenant Governor in Council considers may be affected by the handling, treatment, transportation, discharge or storage of greenhouse gases or energy potential recovered from greenhouse gases,

including. without limitation, prescribing requirements for the publication of information and respecting to whom reports are to be submitted and the timing, form, content, supporting evidence, verification, certification and manner of submission of the reports;

(g) establishing requirements respecting the retention of records that support reports and information required to be provided to the director under this Division;

(h) defining words or expressions used but not defined in this Division.

(2) Section 139 [regulations — general rules] applies for the purpose of making regulations under this Division.

Division 3 — Coal-based Electricity Generation

Coal-based generating facilities — greenhouse
gases must be stored or sequestered

76.3  (1) Subject to subsection (2), the operator of a coal-based generating facility must not introduce or cause or allow to be introduced into the environment emissions of prescribed greenhouse gases from the facility that are attributable to the use of coal for the generation of electricity.

(2) The prohibition in subsection (1) does not apply if an amount of greenhouse gas emissions from the facility that is at least equal to the amount of the emissions referred to in subsection (1), as determined in accordance with the regulations on a carbon dioxide equivalent basis, is captured and stored, or captured and sequestered, in accordance with the regulations.

Compliance reports

76.31  (1) The operator of a coal-based generating facility must submit a report to the director, in accordance with the regulations, respecting

(a) the attributable greenhouse gas emissions referred to in section 76.3 (1), as determined in accordance with the regulations,

(b) if applicable, the capture and storage, or capture and sequestration, of an amount of emissions from the facility under section 76.3 (2), and

(c) any other matter prescribed for the purposes of this Division.

(2) The operator of a coal-based generating facility must submit a supplementary report to the director within the prescribed period after the operator becomes aware that

(a) information in a previous report under this section did not completely and accurately disclose the required information, or

(b) information required to be reported in a previous report has changed.

(3) A supplementary report under this section must be made in accordance with the regulations or, if no specific direction is prescribed, in accordance with the regulations applicable to the report under subsection (1).

(4) The director may

(a) require a report under this section to be audited in accordance with the directions of the director, or conduct or authorize a person to conduct such an audit, and

(b) require the operator of a coal-based generating facility to provide additional information in support of a report under this section.

Regulations for purposes of Division 3

76.32  (1) Without limiting section 138 (1) [general authority to make regulations], the Lieutenant Governor in Council may make regulations in relation to this Division as follows:

(a) prescribing facilities within a prescribed class, or prescribing specified facilities, as being coal-based generating facilities, including, without limitation, facilities that

(i) generate electricity in part from coal and in part from another energy source,

(ii) from time to time generate electricity from coal,

(iii) do other things in addition to the generation of electricity from coal,

(iv) produce an energy source from coal that is used to generate electricity, including the generation of electricity by another person or at another facility, or

(v) use an energy source referred to in subparagraph (iv) to generate electricity;

(b) respecting who is to be considered the operator of a coal-based generating facility;

(c) establishing the greenhouse gas emissions that are deemed to be attributable to the use of coal for the generation of electricity;

(d) respecting the methodology by which greenhouse gas emissions referred to in paragraph (c) are to be determined;

(e) establishing

(i) acceptable methods and standards, and

(ii) monitoring, reporting and other requirements

in relation to the capture, storage and sequestration of greenhouse gases;

(f) respecting reports under this Division, including, without limitation, prescribing requirements respecting to whom the reports are to be submitted and the timing, form, content, supporting evidence, verification, certification and manner of submission of the reports;

(g) establishing requirements and standards respecting quality assurance of the information provided in the reports under this Division and the data that support the reports, including, without limitation, requirements and standards respecting

(i) monitoring protocols and equipment,

(ii) sampling protocols and equipment, and

(iii) analytical protocols and equipment

that must be used for the purposes of reports under this Division;

(h) establishing requirements respecting the retention of records that support reports and information required to be provided to the director under this Division;

(i) prescribing information that must or may be made public in relation to this Division, other than information referred to in paragraph (a) of the definition of "protected information" in section 76.52 [confidentiality in relation to Divisions 3 and 4];

(j) defining words or expressions used but not defined in this Division.

(2) Section 139 [regulations — general rules] applies for the purpose of making regulations under this Division.

Division 4 — Greenhouse Gas Emissions from Electricity Generation

Electricity generation must have net zero emissions

76.4  For each compliance period, the operator of an electricity generating facility must, in accordance with the regulations,

(a) determine the greenhouse gas emissions attributable to the generation of electricity by the facility for the compliance period, excluding any emissions that are captured and stored, or captured and sequestered, in accordance with the regulations, and

(b) if there are attributable greenhouse gas emissions referred to in paragraph (a) after any applicable exclusion under that provision, no later than the prescribed time after the end of that compliance period, apply emission offsets in accordance with the regulations to net those emissions to zero.

Compliance reports

76.41  (1) The operator of an electricity generating facility must submit a report to the director, in accordance with the regulations, respecting

(a) the attributable greenhouse gas emissions referred to in section 76.4 (a), as determined in accordance with the regulations, including, if applicable, any exclusion referred to in that provision,

(b) compliance with the obligation under section 76.4 (b), and

(c) any other matter prescribed for the purposes of this Division.

(2) The operator of an electricity generating facility must submit a supplementary report to the director within the prescribed period after the operator becomes aware that

(a) information in a previous report under this section did not completely and accurately disclose the required information, or

(b) information required to be reported in a previous report has changed.

(3) A supplementary report under this section must be made in accordance with the regulations or, if no specific direction is prescribed, in accordance with the regulations applicable to the report under subsection (1).

(4) The director may

(a) require a report under this section to be audited in accordance with the directions of the director, or conduct or authorize a person to conduct such an audit, and

(b) require the operator of an electricity generating facility to provide additional information in support of a report under this section.

Application of Division 4

76.42  This Division applies to

(a) new electricity generating facilities,

(b) subject to paragraph (c), existing electricity generating facilities, beginning with the first compliance period that includes all or part of the 2016 calendar year, and

(c) before the compliance period referred to in paragraph (b), existing electricity generating facilities in relation to greenhouse gas emissions that are attributable under the regulations to an expansion of the capacity of a facility where that expansion first generated electricity after February 27, 2007 and meets the prescribed threshold.

Regulations for purposes of Division 4

76.43  (1) Without limiting section 138 (1), the Lieutenant Governor in Council may make regulations in relation to this Division as follows:

(a) prescribing facilities within a prescribed class, or prescribing specified facilities, as being electricity generating facilities, including, without limitation, facilities that do other things in addition to the generation of electricity;

(b) prescribing facilities within a prescribed class, or prescribing specified facilities, as being existing electricity generating facilities on the basis that they were generating electricity on February 27, 2007 or that they generated electricity within a reasonable time period before that date;

(c) prescribing a threshold, by capacity or by generation of electricity, or both, for the purposes of section 76.42 (c);

(d) respecting who is to be considered the operator of an electricity generating facility;

(e) establishing the greenhouse gas emissions that are deemed to be attributable to an electricity generating facility;

(f) respecting the methodology by which greenhouse gas emissions referred to in paragraph (e) are to be determined;

(g) respecting emission offsets for the purposes of this Division, including, without limitation,

(i) establishing one or more systems of emission offsets,

(ii) providing authority for projects or actions to be approved as the basis for emission offsets, including authority to establish the parameters of emission offsets related to projects or actions,

(iii) recognizing as emission offsets for the purposes of this Division

(A) emission offsets under the Greenhouse Gas Reduction Targets Act,

(B) compliance units under the Greenhouse Gas Reduction (Cap and Trade) Act, or

(C) units of systems established by other jurisdictions or organizations, and

(iv) providing when, how and to what extent emission offsets may or must be applied;

(h) respecting reports under this Division, including, without limitation, prescribing requirements respecting to whom the reports are to be submitted and the timing, form, content, supporting evidence, verification, certification and manner of submission of the reports;

(i) establishing requirements and standards respecting quality assurance of the information provided in the reports under this Division and the data that support the reports, including, without limitation, requirements and standards respecting

(i) monitoring protocols and equipment,

(ii) sampling protocols and equipment, and

(iii) analytical protocols and equipment

that must be used for the purposes of reports under this Division;

(j) establishing requirements respecting the retention of records that support reports and information required to be provided to the director under this Division;

(k) prescribing information that must or may be made public in relation to this Division, other than information referred to in paragraph (a) of the definition of "protected information" in section 76.52 [confidentiality in relation to Divisions 3 and 4];

(l) defining words or expressions used but not defined in this Division.

(2) Section 139 [regulations — general rules] applies for the purpose of making regulations under this Division.

Division 5 — General

This Part does not affect authority under other Parts

76.5  Nothing in this Part affects the authority to deal with greenhouse gases under any other Part of this Act.

Inspection powers for purposes of Divisions 3 and 4

76.51  (1) Without limiting the powers of an officer under any other provision of this Act, for the purposes of ensuring compliance with Division 3 [Coal-based Electricity Generation] or 4 [Greenhouse Gas Emissions from Electricity Generation] of this Part, and the regulations under either of those Divisions, an officer may enter land or premises, except premises or a part of premises occupied solely as a private residence, at any reasonable time to conduct an inspection related to

(a) the capture and storage, or capture and sequestration, of greenhouse gas emissions under either of those Divisions,

(b) the production of electricity that may be subject to either of those Divisions, or

(c) a project or action approved as the basis for emission offsets under section 76.43 (1) (g) [regulations in relation to emission offsets].

(2) An officer who enters on land or premises under subsection (1) may do any of the following:

(a) examine and take away copies of records relating to a matter referred to in subsection (1) (a) to (c);

(b) inspect, analyze, measure, sample or test the land or premises, or any article or substance located on or in the land or premises, in relation to a matter referred to in subsection (1) (a) to (c);

(c) take away samples of land, premises, articles or substances;

(d) require that anything related to a matter referred to in subsection (1) (a) to (c) be operated, used or set in motion under conditions specified by the officer;

(e) use a computer system at the place that is being inspected to examine data, contained in or available to the computer system, related to a matter referred to in subsection (1) (a) to (c);

(f) record or copy by any method any information related to a matter referred to in subsection (1) (a) to (c);

(g) use any machine, structure, material or equipment in the place that is being inspected as is necessary to carry out the inspection;

(h) use copying equipment located at the place that is being inspected to make copies to take away;

(i) take photographs or make audio or video records.

(3) An officer who enters land or premises in accordance with this section

(a) may take along the persons and equipment that the officer considers may be necessary for the purposes of the inspection, and

(b) on request, must provide proof of identity to a person present on the land or premises entered.

(4) A person who is the subject of an inspection under this section, or who is or was a director, receiver, receiver manager, officer, employee, banker, auditor or agent of a person who is the subject of an inspection under this section, on request of an officer, must

(a) produce, without charge or unreasonable delay, for examination by the officer any record relating to a matter referred to in subsection (1) (a) to (c), and

(b) provide the officer with information relevant to the purposes of the inspection.

Confidentiality in relation to Divisions 3 and 4

76.52  (1) In this section:

"protected information" means information that would reveal

(a) trade secrets of a third party, or

(b) commercial, financial, labour relations, scientific or technical information of or about a third party;

"third party" has the same meaning as in the Freedom of Information and Protection of Privacy Act;

"trade secret" has the same meaning as in the Freedom of Information and Protection of Privacy Act.

(2) Subject to this section, a person who has access to protected information that is in the custody or under the control of the government through

(a) reports required to be provided by an operator under Division 3 [Coal-based Electricity Generation] or 4 [Greenhouse Gas Emissions from Electricity Generation] of this Part, or

(b) the exercise of powers under section 76.51 [inspection powers for purposes of Divisions 3 and 4] or Part 9 [Compliance] in relation to Division 3 or 4 of this Part,

must not disclose the protected information to any other person.

(3) The prohibition in subsection (2) does not apply to disclosure of the following information:

(a) information that is publicly available;

(b) information respecting the matters referred to in section 76.31 (1) (a) and (b) [Division 3 compliance reports];

(c) information respecting the matters referred to in section 76.41 (1) (a) and (b) [Division 4 compliance reports];

(d) information that is required or authorized to be made public under this Act.

(4) The prohibition in subsection (2) does not apply to disclosure in the following circumstances:

(a) if required under Part 2 [Freedom of Information] of the Freedom of Information and Protection of Privacy Act;

(b) in the course of administering or enforcing this Act or a prescribed enactment;

(c) for the purpose of court proceedings;

(d) with the consent of the person, group of persons or organization that is the third party in relation to the protected information.

3 Section 99 is amended by striking out "and" at the end of paragraph (f), by adding ", and" at the end of paragraph (g) and by adding the following paragraph:

(h) determining non-compliance under section 115.2 [imposed administrative penalties — failure to apply emission offsets] and the extent of that non-compliance.

4 Section 100 (2) is repealed and the following substituted:

(2) For certainty,

(a) a decision under this Act of the Lieutenant Governor in Council or the minister is not appealable to the appeal board, and

(b) for the purposes of this Division, there is no decision under section 115.1 [automatic administrative penalties — failure to apply emission offsets].

5 Section 109 (6) is amended by striking out "A person who is or was" and substituting "A person who is the subject of an inspection under this section or who is or was".

6 Section 114 is repealed and the following substituted:

Restraining orders

114  (1) If a person, by carrying on an activity or operation, contravenes any of the following, the activity or operation may be restrained in a proceeding brought by the minister in the Supreme Court:

(a) section 6 [waste disposal];

(b) section 9 [hazardous waste storage and disposal];

(c) section 10 [transportation of hazardous waste];

(d) a suspension or cancellation made under section 18 [suspension or cancellation of permits and approvals];

(e) an order made under Part 4 [Contaminated Site Remediation];

(f) section 76.2 [management of greenhouse gases at waste management facilities];

(g) section 76.3 (1) [coal-based generating facilities — greenhouse gases must be stored or sequestered].

(2) The making of an order by the court under subsection (1) in relation to a matter does not interfere with the imposition of a penalty in respect of an offence in relation to the same contravention.

7 Section 115 (8) is repealed.

8 The following sections are added:

Automatic administrative penalties —
failure to apply emission offsets

115.1  (1) If a report under section 76.41 [compliance reports in relation to electricity generation] indicates that the operator of the electricity generating facility has not complied with the obligation under section 76.4 (b) [obligation to have net zero emissions] within the prescribed time, the operator is subject to the administrative penalty established by the regulations.

(2) An administrative penalty under this section must be paid to the government on or before the date on which the applicable report under section 76.41 is due.

Imposed administrative penalties —
failure to apply emission offsets

115.2  (1) The director must take action under this section, in accordance with the regulations,

(a) if the director is satisfied on a balance of probabilities that

(i) the greenhouse gas emissions attributable to an electricity generating facility for the compliance period were different from those reported under section 76.41 [compliance reports in relation to electricity generation], and

(ii) as a consequence, the operator has not complied with the obligation under section 76.4 (b) [obligation to have net zero emissions] within the prescribed time, or

(b) if

(i) the operator of an electricity generating facility fails to submit a report in accordance with section  76.41, and

(ii) the director is satisfied on a balance of probabilities that the operator has not complied with the obligation under section 76.4 (b) [obligation to have net zero emissions] within the prescribed time.

(2) In the circumstances referred to in subsection (1), the director must serve the operator with an administrative penalty notice

(a) identifying the operator's non-compliance as determined by the director, and

(b) requiring the operator to pay the administrative penalty established by the regulations for the purposes of section 115.1 and specified in the notice.

(3) An operator served with an administrative penalty notice under subsection (2) is subject to an administrative penalty as follows:

(a) if the operator admits in writing the non-compliance and its extent as determined by the director, the penalty indicated in the notice is imposed at the time of that admission;

(b) if the time for appealing the determination of non-compliance or its extent under section 101 [time limit for commencing appeal] has elapsed and no appeal has been commenced, the penalty indicated in the notice is imposed at the end of the time for appealing;

(c) if the non-compliance or its extent as determined by the director is appealed and under the final determination of the appeal the operator is subject to an administrative penalty, the penalty specified in the final determination is imposed at the time of that final determination.

(4) An administrative penalty imposed under this section must be paid within the prescribed time after the penalty is imposed and in accordance with any other prescribed requirements.

9 Sections 116 and 117 are repealed and the following substituted:

Relationship between administrative penalties and offences

116  (1) Subject to subsections (2) and (4),

(a) if a director issues an administrative penalty notice to a person in respect of a contravention or failure referred to in section 115 (1), a prosecution for an offence under this Act in respect of the same contravention or failure may not be brought against the person, and

(b) a person who has been charged with an offence under this Act may not be subject to an administrative penalty in respect of the circumstances that gave rise to the charge.

(2) A person may be prosecuted under this Act for a contravention or failure in relation to any of the following, even though an administrative penalty has been imposed under section 115 in respect of the same contravention or failure:

(a) section 76.3 [coal-based generating facilities — greenhouse gases must be stored or sequestered];

(b) section 76.31 (1), (2) or (3) [compliance reports in relation to coal-based generating facilities];

(c) a regulation under section 76.32 [regulations for purposes of Division 3 of Part 6.1];

(d) section 76.41 (1), (2) or (3) [compliance reports in relation to electricity generation];

(e) a regulation under section 76.43 [regulations for purposes of Division 4 of Part 6.1].

(3) In imposing a sentence for an offence under this Act, the court may consider an administrative penalty imposed in relation to the same matter.

(4) An administrative penalty under section 115 may not be imposed on a person for a contravention or failure referred to in subsection (2) of this section in relation to which the person has been convicted of an offence.

Recovery of administrative penalties

117  (1) Subject to a decision of the appeal board cancelling a determination under section 115 (1) [administrative penalties] or 115.2 [imposed administrative penalties — failure to apply emission offsets], an administrative penalty under this Act may be recovered as a debt due to the government.

(2) If a person fails to pay an administrative penalty as required under this Act, a director may file a certificate in a court that has jurisdiction and, on filing, the certificate has the same force and effect, and all proceedings may be taken on it, as if it were a judgment of the court with which it is filed.

(3) A certificate under subsection (2) may be in the prescribed form, must be signed by the director filing the certificate and must contain

(a) the name of the person who is liable for the administrative penalty,

(b) particulars of the administrative penalty, and

(c) the amount of the administrative penalty.

10 Section 119 (1) is amended by adding the following paragraphs:

(b.1) in relation to administrative penalties under section 115.1 [automatic administrative penalties — failure to apply emission offsets],

(i) prescribing the administrative penalty, or the manner of calculating the administrative penalty,

(ii) respecting the manner and process for paying an administrative penalty, and

(iii) prescribing the consequences of failing to pay an administrative penalty, which may include, but are not limited to, the imposition of additional administrative penalties;

(b.2) in relation to administrative penalties under section 115.2 [imposed administrative penalties — failure to apply emission offsets],

(i) respecting the time limit, manner and process for paying an administrative penalty,

(ii) prescribing the form and content of an administrative penalty notice,

(iii) prescribing a limitation period for imposing an administrative penalty and evidentiary matters in relation to that period,

(iv) prescribing procedures to be applied by the director in making a determination of non-compliance,

(v) establishing procedures for providing a person on whom a notice of an administrative penalty has been served with an opportunity to make representations, which may include opportunities that do not involve an oral hearing,

(vi) prescribing the consequences of failing to pay an administrative penalty, which may include, but are not limited to, the imposition of additional administrative penalties, and

(vii) providing for the publication of information respecting the imposition of an administrative penalty.

11 Section 120 (2) and (3) is repealed and the following substituted:

(2) A person who contravenes any of the following commits an offence and is liable on conviction to a fine not exceeding $200 000 or imprisonment for not more than 6 months, or both:

(a) section 9 (3) [hazardous waste storage and disposal];

(b) section 10 (1) (a), (b) or (c) or (2) [transportation of hazardous waste];

(c) section 11 [packaging, product containers and disposable products];

(d) section 72 (1) or (2) [control of air contaminants];

(e) section 76.52 (2) [confidentiality in relation to Divisions 3 and 4 of Part 6.1];

(f) section 79 (5) [spill prevention and reporting];

(g) section 131 (1) [confidentiality];

(h) a regulation under section 74 (1) (i), (j) or (k) [motor vehicle and engine emission regulations]

(3) A person who contravenes any of the following commits an offence and is liable on conviction to a fine not exceeding $1 000 000 or imprisonment for not more than 6 months, or both:

(a) section 6 (2), (3) or (4) [waste disposal];

(b) section 7 (1) or (2) [hazardous waste — confinement];

(c) section 8 [hazardous waste disposal facility];

(d) section 9 (1) or (4) [hazardous waste storage and disposal];

(e) section 76.2 [management of greenhouse gases at waste management facilities];

(f) section 76.3 (1) [coal-based generating facilities — greenhouse gases must be stored or sequestered];

(g) section 76.31 (1), (2) or (3) [compliance reports in relation to coal-based generating facilities];

(h) section 76.41 (1), (2) or (3) [compliance reports in relation to electricity generating facilities].

12 Section 131 is amended by adding the following subsection:

(1.1) Subsection (1) does not apply to information that is subject to section 76.52 [confidentiality in relation to Divisions 3 and 4 of Part 6.1].

Forest Act

13 Section 1 (1) of the Forest Act, R.S.B.C. 1996, c. 157, is amended

(a) by adding the following definitions:

"fibre recovery permit" means a fibre recovery permit issued under a fibre supply licence to cut entered into under this Act;

"fibre supply licence to cut" means a licence to cut entered into under section 47.3 (1) (b) (ii) or 47.71 (6);

"forestry licence to cut" means a licence to cut entered into under section 47.6 (2), (2.1), (2.11), (2.2), (3), (4), (4.1) or (5);

"master licence to cut" means a licence to cut entered into under section 47.4 (2) (b);

"occupant licence to cut" means a licence to cut entered into under section 47.4 (2) (a); , and

(b) by repealing the definition of "licence to cut" and substituting the following:

"licence to cut" means

(a) a master licence to cut,

(b) an occupant licence to cut,

(c) a forestry licence to cut, and

(d) a fibre supply licence to cut; .

14 Section 8 (5) is amended by striking out "and" at the end of paragraph (a) and by adding the following paragraph:

(a.1) different areas of Crown land within a timber supply area or tree farm licence area, and .

15 The following sections are added:

Direct award of forest licence to produce bioenergy

13.1  (1) In this section and in sections 13.2 and 47.6:

"bioenergy" means energy derived from Crown timber;

"bioenergy supply contract" means an energy supply contract as defined in section 68 of the Utilities Commission Act

(a) under which bioenergy is sold to the British Columbia Hydro and Power Authority, and

(b) that is designated by the minister under section 13.2 (a) as a bioenergy supply contract;

"commercial operation date" means the date determined under a bioenergy supply contract as the commercial operation date;

"eligible bioenergy application" means an application for a non-replaceable forest licence under this section that

(a) is made by an applicant

(i) who is the seller of bioenergy under a bioenergy supply contract, and

(ii) whom the minister or a person authorized by the minister considers to be qualified to perform the obligations specified under subsection (2) (c),

(b) conforms to subsection (2), and

(c) is not rejected under section 81 (3) or refused under section 81 (5).

(2) An application for a non-replaceable forest licence under this section must

(a) be in the form required by the minister or a person authorized by the minister,

(b) specify an allowable annual cut for the forest licence that is considered by the minister to be consistent with the maximum allowable annual cut for a timber supply area specified by the minister under section 13.2 (b), and

(c) include any information that the minister or a person authorized by the minister may require about the applicant's qualifications to

(i) carry out timber harvesting operations under the licence, or

(ii) perform specified obligations

(A) under the licence, or

(B) in respect of the licence or its holder, under this Act or another enactment.

(3) On receipt of an eligible bioenergy application, the minister or a person authorized by the minister must approve the application.

(4) The approval of an eligible bioenergy application under subsection (3) is revoked

(a) if the British Columbia Hydro and Power Authority or the applicant terminates the bioenergy supply contract before the commercial operation date, or

(b) if

(i) an approved eligible bioenergy application is rejected under section 81 (3) or refused under section 81 (5), and

(ii) the applicant has not brought the application into compliance with section 81 (3) or (5), as applicable, within 90 days following the commercial operation date.

(5) The regional manager and the applicant of an approved eligible bioenergy application must enter into a non-replaceable forest licence on or after the commercial operation date if, on the commercial operation date, the application

(a) is not rejected under section 81 (3) or refused under section 81 (5), or

(b) is rejected under section 81 (3) or refused under section 81 (5) but is brought into compliance with section 81 (3) or (5), as applicable, within 90 days following the commercial operation date.

(6) If the applicant refuses to enter into a forest licence under subsection (5)

(a) the approval of the eligible bioenergy application under subsection (3) is revoked, and

(b) the minister or a person authorized by the minister may increase the allowable annual cut specified in an existing forest licence entered into under this section by the volume of the allowable annual cut that was to be specified in the forest licence the applicant refused to enter into under subsection (5).

(7) In addition to setting out the matters described in section 14, a forest licence entered into under subsection (5)

(a) must provide that timber harvested under the licence is restricted to a type of timber or terrain, or portion of a timber supply area, and

(b) may include other terms and conditions that the minister considers are necessary or desirable in relation to the bioenergy supply contract.

Designation of bioenergy supply contracts
and specification of allowable annual cut

13.2  For the purposes of section 13.1, the minister may

(a) designate an energy supply contract as a bioenergy supply contract, and

(b) specify the maximum allowable annual cut in a timber supply area that may be subject to one or more bioenergy supply contracts.

16 Section 47.3 is amended

(a) in subsection (1) by striking out "woodlot licence or forestry licence to cut if the licence" and substituting "woodlot licence, forestry licence to cut or fibre supply licence to cut if",

(b) in subsection (1) (a) by adding "the licence" before "provides that it is entered into",

(c) in subsection (1) (b) by adding "the licence" before "is entered into" and in subparagraph (iii) by striking out "economic measures." and substituting "economic measures, or",

(d) in subsection (1) by adding the following paragraph:

(c) in the case of a fibre supply licence to cut, the licence is entered into with the applicant of an eligible bioenergy application approved under section 13.1 (3) on or after the date the application is approved if, in the opinion of the minister, Crown timber is required for the purpose of

(i) achieving the commercial operation date as set out in the bioenergy supply contract associated with the application, or

(ii) supplying Crown timber to the power plant described in the bioenergy supply contract associated with the application until timber is obtained under the forest licence entered into under section 13.1 (5). ,

(e) in subsection (3) (b) by striking out "community salvage licence or forestry licence to cut." and substituting "community salvage licence, forestry licence to cut or fibre supply licence to cut.",

(f) in subsection (4) (a) by striking out "community salvage licence or a forestry licence to cut," and substituting "community salvage licence, a forestry licence to cut or a fibre supply licence to cut,", and

(g) by adding the following subsections:

(5) Despite section 47.72 (1) (a), after a fibre supply licence to cut has been entered into under subsection (1) (c) of this section, the regional manager or district manager may, if it furthers the objectives set out in subsection (1) (c) (i) or (ii), and with the consent of the holder of the licence to cut, extend the term of that licence to cut.

(6) The extension of the term of a fibre supply licence to cut under subsection (5) must not result in the total term of the licence to cut exceeding 10 years.

17 Section 47.4 (1) is repealed.

18 Section 47.6 is amended

(a) by repealing subsection (1),

(b) by repealing subsection (2) (a),

(c) by adding the following subsections:

(2.11) The district manager may enter into a forestry licence to cut if

(a) the forestry licence to cut authorizes its holder, in specified areas within the area or areas of Crown land identified in the forestry licence to cut, to do any of the following:

(i) remove Crown timber;

(ii) process felled Crown timber into chips or other products and remove those products, and

(b) the district manager has received notification of harvest completion for the specified areas referred to in paragraph (a) that are to be subject to the forestry licence to cut from the holder of an agreement listed in section 12 who is required to provide notification in accordance with a regulation made under section 151.6 (2).

(4.1) The regional manager or district manager may enter into a forestry licence to cut with the applicant of an eligible bioenergy application approved under section 13.1 (3) on or after the date the application is approved if, in the opinion of the regional manager or district manager, Crown timber is required for the purpose of

(a) achieving the commercial operation date as set out in the bioenergy supply contract associated with the application, or

(b) supplying Crown timber to the power plant described in the bioenergy supply contract associated with the application until timber is obtained under the forest licence entered into under section 13.1 (5). , and

(d) in subsection (2.2) by striking out "subsection (2) (a) or (c)" and substituting "subsection (2) (c) or (d)".

19 Section 47.7 is amended

(a) by repealing paragraph (b) and substituting the following:

(b) must describe one or more areas of land and identify for each area whether the holder may do one or more of the following:

(i) harvest Crown timber;

(ii) cut Crown timber;

(iii) remove Crown timber;

(iv) process Crown timber and remove the processed timber, , and

(b) by striking out "and" at the end of paragraph (g) and adding the following paragraph:

(g.1) may include provisions specifying one or more standard making bodies and requiring the holder of the licence to conduct its operations under the licence in accordance with principles, standards and criteria established by the standard making body or bodies, and .

20 The following sections are added to Division 8.2 of Part 3:

Applications for fibre supply licence to cut

47.71  (1) On request or on his or her own initiative the regional manager or district manager, by advertising in the prescribed manner, may invite applications for a fibre supply licence to cut.

(2) An application for a fibre supply licence to cut must

(a) be made to the district manager or regional manager, and

(b) meet prescribed requirements.

(3) The regional manager or district manager must evaluate applications for a fibre supply licence to cut in accordance with prescribed requirements.

(4) After evaluating applications under subsection (3), the person who evaluated the applications may

(a) approve an application, or

(b) decline to approve all applications.

(5) If an applicant whose application is approved under subsection (4) neglects or declines to enter into the fibre supply licence to cut, the regional manager or district manager may

(a) approve the next best application, or

(b) at the discretion of the minister, refuse to approve any of the applications.

(6) The regional manager or district manager must enter into a fibre supply licence to cut with every person whose application is approved under subsection (4) or (5).

Content of a fibre supply licence to cut

47.72  (1) A fibre supply licence to cut

(a) must be for a term not exceeding 5 years,

(b) must require its holder to pay to the government, in addition to other amounts payable under this Act, stumpage under Part 7,

(c) must provide for fibre recovery permits to be issued by the district manager, or a forest officer authorized by the district manager, within the limits provided in the fibre supply licence to cut and subject to this Act and the Forest and Range Practices Act, to authorize its holder in specified areas within the area or areas of land identified in the fibre supply licence to cut to do any of the following:

(i) remove Crown timber;

(ii) process felled Crown timber into chips or other products and remove those products,

(d) may include provisions specifying one or more standard making bodies and requiring the holder of the fibre supply licence to cut to conduct its operations under the fibre supply licence to cut in accordance with principles, standards and criteria established by the standard making body or bodies,

(e) may include other terms and conditions, consistent with this Act, the Forest and Range Practices Act, the Wildfire Act and any regulations or standards made under those Acts, determined by the regional manager or district manager, and

(f) may include other terms and conditions that the regional manager or district manager considers necessary or desirable respecting operations under the fibre supply licence to cut as they relate to the holder of an agreement listed in section 12 who is required to provide notification in accordance with a regulation made under section 151.6 (2).

(2) The district manager or the forest officer authorized by the district manager must not issue to the holder of a fibre supply licence to cut a fibre recovery permit for an area described in subsection (1) (c) unless the district manager has received notification of harvest completion for the specified areas referred to in subsection (1) (c) that are to be subject to the fibre recovery permit from the holder of an agreement listed in section 12 who is required to provide notification in accordance with a regulation made under section 151.6 (2).

Volume deemed to be harvested under
licence for cut control purposes

47.73  (1) Subject to subsection (2) and for the purposes of paragraph (a) of the definition of "volume of timber harvested" in section 75.1 (1), the amount of timber that

(a) is merchantable Crown timber, and

(b) is removed under

(i) a forestry licence to cut entered into under section 47.6 (2.11), or

(ii) a fibre recovery permit issued under a fibre supply licence to cut

is deemed to be harvested under the agreement of the agreement holder who gave the notification of harvest completion referred to in

(c) section 47.6 (2.11) (b) in the case of a forestry licence to cut, or

(d) section 47.72 (2) in the case of a fibre supply licence to cut.

(2) Subsection (1) does not apply if the amount of timber removed or harvested under the forestry licence to cut or removed under the fibre recovery permit has already been attributed to the agreement referred to in subsection (1) for the purposes of paragraph (a) of the definition of "volume of timber harvested" in section 75.1 (1).

21 The heading to Division 8.3 of Part 3 is repealed and the following substituted:

Division 8.3 — Disposition of Timber Acquired under Forestry Revitalization Act or Subject to Waste Assessment .

22 The following section is added to Division 8.3 of Part 3:

Disposition of timber not harvested or removed under an agreement

47.9  Timber that is not harvested or removed under an agreement listed in section 12 and in respect of which a notification must be given in accordance with a regulation made under section 151.6 (2) may be the subject of

(a) a forestry licence to cut entered into under section 47.6 (2.11), or

(b) a fibre supply licence to cut.

23 Section 69 (1) is amended by striking out "timber or terrain or from different parts of Crown land or private land within the tree farm licence area" and substituting "timber or terrain in different parts of Crown land or private land within the tree farm licence area or from different areas of Crown land within the tree farm licence area".

24 Section 72 is amended

(a) in subsection (1) by striking out "timber licence or" and substituting "timber licence, community forest agreement or", and

(b) by adding the following subsection:

(10) Subsection (9) does not apply if the amount of timber harvested under the forestry licence to cut has already been attributed to the tree farm licence, community forest agreement or woodlot licence of the person to whom a notice is sent under subsection (4) for the purposes of paragraph (a) of the definition of "volume of timber harvested" in section 75.1 (1).

25 Section 73 is amended by adding the following subsection:

(9) Subsection (8) does not apply if the amount of timber harvested under the forestry licence to cut has already been attributed to the forest licence of the person to whom a notice is sent under subsection (3) for the purposes of paragraph (a) of the definition of "volume of timber harvested" in section 75.1 (1).

26 The following Division is added to Part 4:

Division 3.01 — Allowable Annual Cut Partition

Definitions

75.01  In this Division:

"allowable annual cut partition" means the portion of the allowable annual cut determined under section 8 (1) for a timber supply area or tree farm licence area that is attributed by the chief forester under section 8 (5) to

(a) a type of timber or terrain in parts of Crown land within the timber supply area or tree farm licence area,

(b) different areas of Crown land within the timber supply area or tree farm licence area, and

(c) a type of timber or terrain in different parts of private land within the tree farm licence area;

"base-level allowable annual cut" means the allowable annual cut that is prescribed for the purposes of this Division;

"exempted licence" means a licence that

(a) specifies an allowable annual cut that is less than the base-level allowable annual cut,

(b) is a non-replaceable forest licence that meets prescribed conditions, or

(c) is identified as an exempted licence in the regulations by the number of the particular licence;

"harvested volume" means the total of the following volumes, less downward adjustments to those volumes for grade as prescribed by regulation, other than a downward adjustment prescribed under section 75.1 (3) (a) (ii), attributed to a licence referred to in section 75.02 that is not an exempted licence, in cut control statements issued on behalf of the government during the period of a minister's order under section 75.02 (1) or (2):

(a) the volume of timber cut under the licence and under road permits associated with the licence;

(b) the volume of timber estimated to be wasted or damaged under the licence and under road permits associated with the licence;

(c) the volume of timber attributed to the licence by the regional manager or district manager under a regulation made under section 75.1 (3) (b) or 75.11 (2) (a) if the licences subject to the attribution are within the same timber supply area or tree farm licence area.

Partition order

75.02  (1) If the chief forester specifies an allowable annual cut partition for a timber supply area, the minister, by order, may, if he or she considers it necessary to ensure the attribution specified in the partition is carried out, specify a limit on the harvested volume under all forest licences and forestry licences to cut in the timber supply area that are not exempted licences for

(a) a type of timber or terrain in parts of Crown land within the timber supply area, or

(b) different areas of Crown land within the timber supply area.

(2) If the chief forester specifies an allowable annual cut partition for a tree farm licence area, the minister, by order, may, if he or she considers it necessary to ensure the attribution specified in the partition is carried out, specify a limit on the harvested volume under the tree farm licence and all forest licences and forestry licences to cut in the tree farm licence area that are not exempted licences for

(a) a type of timber or terrain in parts of Crown land within the tree farm licence area,

(b) different areas of Crown land within the tree farm licence area, or

(c) a type of timber or terrain in different parts of private land within the tree farm licence area.

(3) An order made under subsection (1) or (2) must

(a) except in prescribed circumstances, be made within one year of the date

(i) the allowable annual cut partition relating to the order was specified by the chief forester under section 8 (5), or

(ii) the chief forester postpones an allowable annual cut determination under section 8 (3.1) for which an allowable annual cut partition was specified,

(b) be for a term not exceeding 5 years,

(c) specify the allowable annual cut partition relating to the order, and

(d) specify the harvested volume limit, as determined in accordance with the regulations, that licence holders may not exceed.

(4) The regional manager must serve a copy of an order made under subsection (1) on the holder of a licence to which the order relates, but the order is not invalid only because it is not served.

(5) Subject to section 75.04, all persons who hold a licence referred to in subsection (1) or (2) of this section must ensure that the harvested volume under the licence does not, during the term of an order under subsection (1) or (2) of this section, whichever is applicable, exceed the harvested volume limit specified in the order.

Waiver of order

75.03  (1) On request of the holder of a licence referred to in section 75.02 (1) or (2), the minister may waive the order if the minister is satisfied that the reasons for the waiver meet prescribed criteria.

(2) A request under subsection (1) must

(a) be submitted within 60 days after the date the minister made the order,

(b) be signed by, or on behalf of, the requesting person, and

(c) specify the reasons for the request.

Revocation or amendment of order

75.04  The minister may revoke or amend an order made under section 75.02 (1) or (2).

Consolidation or subdivision of licences subject to an order

75.05  (1) In this section, "licence" means a licence referred to in section 75.02 (1) or (2) that is not an exempted licence.

(2) If a licence is replaced under section 19 or 39 by 2 or more other licences, the harvested volume that, before the replacement, was charged to the replaced licence must be charged to the other licences by allocating that volume among the other licences by the method set out in subsection (3).

(3) The part of the harvested volume to be allocated among each of the other licences must be determined by multiplying that volume by the fraction obtained by dividing the allowable annual cut of that other licence by the allowable annual cut of the replaced licence.

(4) If 2 or more licences are replaced under section 19 or 39 by one other licence, the harvested volume that before the replacement was charged to the replaced licences must be charged to the other licence.

(5) The minister must amend an order made under section 75.02 (1) or (2) to account for an allocation of volume under subsection (2) of this section or a charging of volume under subsection (4) of this section.

Penalty for non-compliance with minister's order

75.06  (1) If the harvested volume limit imposed by an order under section 75.02 (1) or (2) is exceeded, the licence holder must pay to the government the penalty determined under subsection (2) of this section.

(2) The penalty under subsection (1) is the product of

(a) the volume of harvested timber that exceeds the harvested volume limit as determined in accordance with the regulations, and

(b) the prescribed rate.

(3) A penalty under this section is in addition to stumpage payable or another penalty under this Act or another enactment.

Relief from penalty

75.07  (1) On request of the holder of a licence referred to in section 75.02 (1) or (2), the minister may grant relief from a penalty imposed under section 75.06 if the minister is satisfied that the reasons for the relief meet prescribed criteria.

(2) A request under subsection (1) must

(a) be submitted within 90 days after the date the penalty is imposed under section 75.06 (1),

(b) be signed by, or on behalf of, the requesting person, and

(c) specify the reasons for the request.

27 Section 75.1 (3) (a) is repealed and the following substituted:

(a) prescribing percentages or amounts by which the timber volumes attributed to a licence in statements referred to in that definition must be adjusted downward to take into account

(i) grades and species of timber, or

(ii) uses of timber

included in the volumes described in subsection (2) (a) and (b), .

28 Section 80 (3) is amended by striking out "under section 75.1," and substituting "under section 75.02, 75.1,".

29 Section 94 is amended by adding the following subsection:

(3.1) If, at the place where timber is yarded to a landing or roadside, the timber is processed under a forestry licence to cut entered into under section 47.6 (2.11) or a fibre supply licence to cut, the processed timber may be scaled at a location specified by the regional manager or district manager or a forest officer authorized by either of them.

30 Section 96 (1) (b) is repealed and the following substituted:

(b) must express the scale

(i) in cubic metres unless subparagraph (ii) applies, or

(ii) for special forest products referred to in section 94 (3) or processed timber referred to in section 94 (3.1), in the unit of metric measure required by the minister.

31 Section 103.1 is amended by adding the following subsections:

(4) Despite subsections (1) to (3), the Lieutenant Governor in Council may make regulations specifying circumstances under which waste assessments are payable to the government in respect of merchantable Crown timber that could have been cut and removed under the agreement but, at the agreement holder's discretion, is not cut and removed.

(5) If a provision in an agreement entered into under this Act conflicts or is inconsistent with a regulation made under subsection (4), the regulation prevails.

32 Section 109 (2) (h) is amended by striking out "section 151 (2) (e)" and substituting "section 151 (11) or (12)".

33 Section 151 is amended

(a) in subsection (2) (d) by striking out "timber after harvesting," and substituting "timber after harvesting or of timber products,",

(b) in subsection (2) (d) (i) and (iii) by adding "or timber products" after "timber",

(c) by repealing subsection (2) (e), and

(d) by adding the following subsections:

(11) The Lieutenant Governor in Council may make regulations respecting deposits and security of any kind, including but not limited to money, to be provided by the holder of an agreement listed in section 12 or a pulpwood agreement, to ensure the performance of an obligation under this Act or the agreement, the Forest and Range Practices Act, the Wildfire Act or the Forest Practices Code of British Columbia Act.

(12) Without limiting subsection (11), the Lieutenant Governor in Council may make regulations respecting the following:

(a) the type of security that is acceptable or unacceptable;

(b) the form and content of the security;

(c) the circumstances under which the security may be realized.

34 The following section is added:

Regulation making power for fibre supply and forestry licence to cut

151.6  (1) The Lieutenant Governor in Council may make regulations he or she considers necessary or desirable for the purpose of prescribing requirements for a forestry licence to cut entered into under section 47.6 (2.11) or a fibre supply licence to cut, including but not limited to regulations

(a) prescribing additional provisions to supplement the provisions of

(i) Division 8.2 of Part 3 of this Act, or

(ii) the regulations made for that Division

as the provisions apply in respect of that licence to cut or its holder,

(b) varying provisions of that Division or of regulations made for that Division as the provisions apply in respect of that licence to cut or its holder,

(c) providing that specified provisions of that Division or of regulations made for that Division do not apply to or in respect of that licence to cut or its holder, and

(d) imposing conditions for the purpose of regulations made under this section.

(2) Without limiting subsection (1) and for the purposes of sections 47.6 (2.11) (b) and 47.72 (2), the Lieutenant Governor in Council may make regulations as follows:

(a) requiring the holder of an agreement listed in section 12 to give written notification to the district manager respecting harvest completion;

(b) respecting time requirements for the notification;

(c) respecting content requirements for the notification including, without limitation,

(i) a declaration in respect of timber that is not harvested or removed under the agreement indicating the amount of that timber the agreement holder

(A) plans to sell, trade or use for commercial purposes, and

(B) does not plan to sell, trade or use for commercial purposes,

(ii) an estimate of the amount of timber referred to in subparagraph (i) (B) that is at all landings or roadsides,

(iii) a list of the activities the agreement holder has planned for the site area that are to be subject to the fibre recovery permit for a specified period, and

(iv) a description of any of the agreement holder's forest management concerns;

(d) if an agreement holder indicates in accordance with paragraph (c) (i) that the holder plans to sell, trade or use for commercial purposes timber that was not harvested or removed, requiring the holder to sell, trade or use that timber as declared;

(e) prohibiting an agreement holder from destroying timber referred to in paragraph (c) (i) in specified circumstances.

Forest and Range Practices Act

35 Section 108 (5) of the Forest and Range Practices Act, S.B.C. 2002, c. 69, is amended by striking out "subsection (1) (b)" and substituting "subsection (1) (d)".

36 Section 204 (3) is amended by striking out "section 47.4 (1)" and substituting "section 1 (1)".

Commencement

37  The provisions of this Act referred to in column 1 of the following table come into force as set out in column 2 of the table: