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Fourth Session, Thirty-Ninth Legislature

This version is based on the printed bill that was distributed in the Legislature after First Reading.   It is not the official version.   If accuracy is critical, you can obtain a copy of the printed bill from Statutory Publications or view the online bilingual version (PDF).

Bill 17

THE BIOFUELS AMENDMENT ACT


Explanatory Note

(Assented to                                         )

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

C.C.S.M. c. B40 amended

1           The Biofuels Act is amended by this Act.

2(1)        Section 1 is amended by adding the following definition:

"Biodiesel Fund" means the Biodiesel Fund established in section 6.4.1. (« Fonds d'aide à la production de biodiesel »)

2(2)        In section 1 of the French version, the definition « Fonds d'aide à la production d'éthanol » ou « Fonds » is amended by striking out " ou « Fonds »".

3(1)        Subsection 6.1(1) is replaced with the following:

Grant programs to be established by regulation

6.1(1)      The Lieutenant Governor in Council may by regulation establish

(a) an ethanol grant program, to be funded by the Ethanol Fund, to support denatured ethanol production in Manitoba; and

(b) a biodiesel grant program, to be funded by the Biodiesel Fund, to support biodiesel production in Manitoba.

3(2)        Subsection 6.1(2) is amended

(a) in clause (e), by striking out "assessing the need for a grant" and substituting "paying out a grant";

(b) in clause (f), by striking out "a 12-month period" and substituting "one or more prescribed periods"; and

(c) by adding the following after clause (f):

(g) prescribing a date after which no further grants may be made to support

(i) denatured ethanol production, which must be on or before the date the Ethanol Fund is wound up, or

(ii) biodiesel production, which must be on or before the date the Biodiesel Fund is wound up;

(h) respecting any other matter necessary for the operation of the ethanol grant program or the biodiesel grant program.

3(3)        Section 6.1 is further amended by adding the following after subsection (2):

Different regulations for different grant programs

6.1(3)      The regulations made under this section respecting the ethanol grant program may be different from those made in respect of the biodiesel grant program.

4           Section 6.2 is replaced with the following:

Minister may approve or deny grant

6.2(1)      Upon receiving a grant application, the minister may

(a) approve the grant in accordance with the criteria established by regulation; or

(b) deny the grant.

Agreement required

6.2(2)      Upon an application being approved but before a grant is paid out, the minister must require an applicant to enter into an agreement that sets out the following:

(a) the amount or maximum amount of the grant, and the manner in which it will be paid;

(b) any circumstances under which the amount of the grant may be reduced or any part of it must be repaid;

(c) any other terms or conditions that the minister considers appropriate for the payment and administration of the grant.

5           Section 6.4 is amended

(a) in clause (2)(b), by striking out "a grant" and substituting "an ethanol grant";

(b) in subsection (5), by striking out "under this Act" and substituting "from the Ethanol Fund";

(c) in subsection (6), by striking out "pay the grants" and substituting "pay the ethanol grants"; and

(d) in subsection (7) of the English version, by striking out "to be to transferred" and substituting "to be transferred".

6           The following is added after section 6.4 and before the centred heading that follows it:

BIODIESEL FUND

Biodiesel Fund

6.4.1(1)    A fund to be known as the "Biodiesel Fund" is hereby established, within the Consolidated Fund, to support the production of biodiesel in Manitoba.

Credits to Biodiesel Fund

6.4.1(2)    The following amounts are to be paid or credited to the Biodiesel Fund:

(a) for the 12-month period beginning April 1, 2010, and for each of the following four additional 12-month periods after that, the amount determined by the following formula is to be paid or credited from the taxes collected under The Motive Fuel Tax Act for that period:

Credit = $0.14 × L

In this formula,

L is the least of

(i) the number of litres of biodiesel manufactured in Manitoba that were sold during the period, and

(ii) 20 million litres or the prescribed amount;

(b) any portion of a biodiesel grant repaid to or recovered by the minister;

(c) interest earned on amounts credited to the Biodiesel Fund.

Additional credit

6.4.1(3)    The Minister of Finance may pay or credit to the Biodiesel Fund any additional amount authorized by an Act of the Legislature to be so paid and applied out of the Consolidated Fund.

Payment of grant out of the Biodiesel Fund

6.4.1(4)    On the requisition of the minister for a grant of money to be paid from the Biodiesel Fund, the Minister of Finance must pay it out of the Biodiesel Fund.

Transfer for general purposes

6.4.1(5)    The Minister of Finance may, with the approval of the Lieutenant Governor in Council, transfer out of the Biodiesel Fund and treat as general revenue of the government all or any part of the amount standing to the credit of the Biodiesel Fund that is not required to pay the biodiesel grants approved by the minister responsible for the grants.

Winding-up of Biodiesel Fund

6.4.1(6)    On or after March 31, 2017, the Lieutenant Governor in Council may require the Biodiesel Fund to be wound up and the balance, if any, to be transferred out of the Biodiesel Fund and treated as general revenue of the government.

Fiscal year

6.4.1(7)    The fiscal year of the Biodiesel Fund ends on March 31 of each year.

7(1)        The centred heading before section 7 is amended by striking out "GASOHOL".

7(2)        Section 7 is amended

(a) in subsection (1) of the English version, by striking out "gasoline based" and substituting "gasoline-based"; and

(b) in subsections (1) and (1.1), by striking out "A fuel supplier" and substituting "Subject to the regulations, a fuel supplier".

8(1)        Subsection 19(1) is amended

(a) by replacing clause (b.5) with the following:

(b.5) respecting the Ethanol Fund and the Biodiesel Fund, and the administration of each of the funds;

(b.5.1) prescribing one or more periods, which may overlap, for the purposes of clause 6.1(2)(f);

(b) by adding the following after clause (c):

(c.1) prescribing an amount for the purpose of subclause (ii) of "L" in the formula in subsection 6.4.1(2);

(c) by adding the following after subsection (f.2):

(f.3) for a reporting period or part of a reporting period, exempting from the calculations respecting a shortfall or penalty under section 7 some or all of a fuel supplier's or class of fuel suppliers' sales of the following:

(i) gasoline or gasoline-based fuel,

(ii) a prescribed motive fuel or class of motive fuel;

(f.4) exempting a fuel supplier or classes of fuel suppliers from paying a penalty under section 7;

8(2)        The following is added after subsection 19(1):

Provisions re exemptions

19(1.1)     A regulation under clauses (1)(f.3) and (f.4)

(a) may establish circumstances in which an exemption applies, and may set conditions or restrictions on the application of an exemption; and

(b) is sufficiently described if an exemption is determined in accordance with an area indicated on a map adopted or incorporated by reference in the regulation.

Application

19(1.2)     A regulation made under this section may be general or particular in its application and may apply to one or more classes of persons, and to the whole or any part of the province.

Retroactive exemption

19(1.3)     An exemption prescribed under clause (1)(f.3) may be made to apply retroactively to the date of the coming into force of the sales mandate for denatured ethanol or for biodiesel.

Reporting and penalty re retroactive exemption

19(1.4)     A fuel supplier who is subject to an exemption under subsection (1.3) must, in accordance with the regulations,

(a) for each reporting period to which the exemption applies, file an amended report respecting sales of

(i) gasoline or gasoline-based fuel, or

(ii) a prescribed motive fuel or class of motive fuel; and

(b) calculate the shortfall in respect of the sales of denatured ethanol or biodiesel and remit the penalty, if any.

8(3)        Subsection 19(5) is repealed.

Consequential amendments, C.C.S.M. c. M220

9           The Motive Fuel Tax Act is amended

(a) by repealing the definition "biodiesel" in section 1; and

(b) by repealing subsection 2.1(8).

S.M. 2003, c. 5 (unproclaimed provision repealed)

10          Section 6.6, as enacted by The Biofuels Act, S.M. 2003, c. 5, is repealed.

Coming into force

11(1)       Subject to subsection (2), this Act comes into force on the day it receives royal assent.

11(2)       Section 9 is deemed to have come into force on April 1, 2010.

Explanatory Note

This Bill creates the Biodiesel Fund, which is to be funded by a portion of provincial tax revenues collected under The Motive Fuel Tax Act. The fund is to be used to pay grants to persons who produce biodiesel in Manitoba.

In light of the Biodiesel Fund, the tax exemption for biodiesel in The Motive Fuel Tax Act is repealed.

The Bill also enables regulations to be made that exempt fuel suppliers from the sales mandate for biodiesel and denatured ethanol.