2nd Session, 42nd Legislature
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Bill 35
THE CLIMATE AND GREEN PLAN IMPLEMENTATION ACT, 2020
| Bilingual version (PDF) | Explanatory Note |
(Assented to )
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:
Industrial Greenhouse Gas Emissions Control and Reporting Act
The Industrial Greenhouse Gas Emissions Control and Reporting Act set out in Schedule A is hereby enacted.
The Fuel Tax Amendment Act set out in Schedule B is hereby enacted.
The Income Tax Amendment Act set out in Schedule C is hereby enacted.
Retail Sales Tax Amendment Act
The Retail Sales Tax Amendment Act set out in Schedule D is hereby enacted.
The Tobacco Tax Amendment Act set out in Schedule E is hereby enacted.
Subject to subsection (2), this Act comes into force on the day it receives royal assent.
Coming into force of Schedules
The Schedules to this Act come into force as provided in the coming into force section at the end of each Schedule.
THE INDUSTRIAL GREENHOUSE GAS
EMISSIONS CONTROL AND REPORTING ACT
TABLE OF CONTENTS
Section
1 Purpose
2 Definitions
3 Application to industrial operations
4 Registration
5 Registration certificate
6 Reporting attributable emissions and limits
7 Compensation for excess emissions
8 Emissions offset credits
9 Establishing and administering credit system
10 Performance credits
11 Manitoba offset credits
12 Credits recognized under an agreement
13 Credits must support integrity of system
14 Tracking system
15 Tracking systems may be combined with registries
16 Reporting on revenues received
17 Director
18 Forms
19 Records required by director
20 Inspectors
21 General inspection powers
22 Assisting inspectors
23 Compliance orders
24 Appeal to court
25 Information is confidential
26 Liability protection
27 Service
28 Offences
29 Penalties
30 Convicted person must still comply with order
31 Regulations
32 General or specific application of regulations
33 Incorporation of codes and standards
34 Conditional amendment
35 C.C.S.M. reference
36 Coming into force
THE INDUSTRIAL GREENHOUSE GAS EMISSIONS CONTROL AND REPORTING ACT
INTRODUCTORY PROVISIONS
The purpose of this Act is to reduce greenhouse gas emissions from industrial operations in Manitoba by
(a) establishing a compliance scheme that facilitates cost-effective emissions reductions; and
(b) imposing obligations on those who emit in excess of the limits provided for under the compliance scheme, including requiring a levy to be paid on those excess emissions.
The following definitions apply in this Act.
"approved" means approved by the director. (Version anglaise seulement)
"attributable", in relation to greenhouse gas emissions, means attributable to an industrial operation within the meaning of the regulations. (« attribuable »)
"CO2 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. (« équivalent CO2 »)
"compliance period" means the period prescribed for the purpose of section 6 (reporting attributable emissions and limits). (« période de conformité »)
"court" means the Court of Queen's Bench of Manitoba. (« tribunal »)
"director" means the director appointed under section 17. (« directeur »)
"emissions offset credit" means an emissions offset credit described in subsection 9(2). (« crédit compensatoire »)
"facility" includes
(a) all buildings, structures and stationary items and equipment that
(i) are located or used on a single site,
(ii) are controlled and directed by the same person, and
(iii) function as a single integrated operation; and
(b) mobile equipment used primarily at the site referred to in subclause (a)(i) and that function as part of the integrated operation. (« installation »)
"greenhouse gas" means carbon dioxide, methane, nitrous oxide, sulphur hexafluoride and the prescribed categories of hydrofluorocarbons and perfluorocarbons, and includes any other gas or substance or category of gas or substance prescribed to be a greenhouse gas. (« gaz à effet de serre »)
"greenhouse gas emissions" means greenhouse gas emissions released into the atmosphere measured in CO2 equivalent tonnes. (« émission de gaz à effet de serre »)
"industrial operation" means
(a) a facility or a prescribed undertaking or activity that is subject to this Act as provided for in subsection 3(1); and
(b) a facility, undertaking or activity designated as an industrial operation under subsection 3(3) or (5). (« exploitation industrielle »)
"minister" means the minister appointed by the Lieutenant Governor in Council to administer this Act. (« ministre »)
"operator" means the person considered to be the operator of an industrial operation within the meaning of the regulations. (« exploitant »)
"prescribed" means prescribed by regulation under this Act. (Version anglaise seulement)
Reference to "Act" includes regulations
The term "this Act" includes regulations made under this Act.
Operations consisting of multiple sites
The minister may, by regulation, designate two or more facilities, undertakings or activities that are on contiguous or adjacent sites to be one facility, undertaking or activity for the purpose of this Act if they function in an integrated fashion.
APPLICATION
Act applies to operations with emissions of 50,000 tonnes or more
This Act applies to each facility, and each prescribed undertaking or activity, in Manitoba that has attributable greenhouse gas emissions that equal or exceed 50,000 tonnes in a prescribed period or, if no period is prescribed, in 2018.
Operations with lower emissions may opt in
A person who operates a facility, or engages in an undertaking or activity, in Manitoba that has, in a prescribed period, attributable greenhouse gas emissions of between 10,000 and 50,000 tonnes may apply to the director for designation of the facility, undertaking or activity as an industrial operation.
Director may designate facility, etc. with lower emissions
For the purpose of subsection (2), the director may designate the facility, undertaking or activity as an industrial operation if the director is satisfied that
(a) it operates in an emissions-intensive trade-exposed sector within the meaning of the regulations; and
(b) its attributable greenhouse gas emissions in the prescribed period are between 10,000 and 50,000 tonnes.
New or expanded facility, etc.
A person who operates a new or expanded facility, or engages in a new or expanded undertaking or activity, in Manitoba may apply to the director for designation of the facility, undertaking or activity as an industrial operation.
Director may designate new or expanded facility, etc.
Subject to the regulations, the director may designate the new or expanded facility, undertaking or activity as an industrial operation if the director is satisfied that, once fully operational,
(a) it will have attributable greenhouse gas emissions that equal or exceed 50,000 tonnes in a period prescribed for the purpose of subsection (1); or
(b) it
(i) operates, or will operate, in an emissions-intensive trade-exposed sector within the meaning of the regulations, and
(ii) will have attributable greenhouse gas emissions of between 10,000 and 50,000 tonnes in a period prescribed for the purpose of subsection (2).
An application under subsection (2) or (4) must be made in the approved form and at the time and in the manner specified by the director.
COMPLIANCE SCHEME
Registration
Every industrial operation must be registered.
To register, the operator of an industrial operation must apply to the director in the approved form and at the time and in the manner specified by the director.
Director must issue registration certificate
On registering an industrial operation, the director must issue a registration certificate to the operator.
Director may cancel registration certificate
The director may cancel a registration certificate in accordance with the regulations.
Obligations
Reporting attributable emissions and limits
For each compliance period, the operator of an industrial operation must, in accordance with the regulations, submit a report to the director that sets out
(a) the operation's attributable greenhouse gas emissions;
(b) the prescribed greenhouse gas emissions limit that applies to the industrial operation; and
(c) any other prescribed information or information that the director requests in writing.
If required by the regulations, the operator must ensure that the emissions report is verified in accordance with the regulations before it is submitted.
Compensation for excess emissions
If an industrial operation emits greenhouse gases in a quantity that exceeds the greenhouse gas emissions limit that applies to the operation during the compliance period, the operator must compensate for the excess emissions in accordance with subsection (2) and the regulations.
Form and amount of compensation
The operator must compensate for the excess emissions by
(a) remitting emissions offset credits at the rate of one credit for each tonne of greenhouse gas emissions that was emitted in excess of the emissions limit;
(b) paying a levy to the Crown in right of Manitoba at the rate of $25 for each tonne of greenhouse gas emissions that was emitted in excess of the emissions limit; or
(c) remitting emissions offset credits under clause (a) and making a payment under clause (b).
When compensation must be provided
The operator must provide the required compensation by or before the prescribed deadline.
Penalty — failure to provide compensation
If the operator fails to comply with subsection (3), the operator must pay the prescribed penalty in addition to the required compensation.
Emissions Offset Credits
The purpose of emissions offset credits is to enable the operator of an industrial operation that
(a) emits less than the applicable limit of greenhouse gas emissions in a compliance period to earn credits and either hold them for future use or transfer them to others; or
(b) emits more than the applicable greenhouse gas emissions limit to use the credits as a form of compensation for the purpose of subsection 7(2).
Director to establish and administer credit system
The director must establish and administer an emissions offset credit system in accordance with this Act.
Types of emissions offset credits
The system is to be based on the following types of emissions offset credits:
(a) performance credits, which must be issued under section 10;
(b) Manitoba offset credits, which may be provided for in the regulations made under section 11;
(c) recognized credits, which may be provided for in an agreement under section 12.
If an industrial operation's attributable greenhouse gas emissions in a compliance period are below the limit that applies during that period, the director must, in accordance with the regulations, issue to the operator the number of performance credits that equals the difference between that limit and the number of tonnes of greenhouse gases emitted.
The Lieutenant Governor in Council may establish, by regulation, an emissions offset credit system for projects in Manitoba that prevent greenhouse gases from being emitted into the atmosphere or that remove greenhouse gases from the atmosphere.
Regulations re Manitoba offset credits
A regulation made under subsection (1) may include provisions
(a) respecting the issuance of emissions offset credits by the director to persons who are responsible for the projects;
(b) imposing requirements on persons who are responsible for the projects;
(c) respecting the registration and monitoring of the projects;
(d) respecting the records to be created and maintained by persons responsible for the projects, and the reports to be made and submitted to the director by those persons;
(e) respecting the use, transfer, exchange, sale, variation, cancellation and retirement of emissions offset credits;
(f) respecting the creation, operation and management of one or more registries for the tracking of emissions offset credits;
(g) imposing fees on persons who participate in the system or any aspect of it.
Agreements with other jurisdictions
The minister may enter into an agreement with Canada, another province, a territory or a foreign jurisdiction, or an agent of any of them, respecting recognition of credits issued by the other party as emissions offset credits.
Regulations re recognition of credits of others
The Lieutenant Governor in Council may make regulations respecting credits recognized under subsection (1), including regulations
(a) respecting the manner in which and the terms and conditions subject to which recognized credits may be obtained by a person in Manitoba;
(b) respecting the use, transfer, exchange, sale, variation, cancellation and retirement of recognized credits;
(c) respecting the creation, operation and management of one or more registries for the tracking of recognized credits;
(d) imposing fees on persons who use recognized credits or a prescribed registry for such credits.
Credits must support integrity of system
A prescribed Manitoba offset credit or a recognized credit may be used under section 7 only if, in the director's opinion, the credit is issued on the basis — or is converted on such a basis — that one of the credits reasonably represents one tonne of greenhouse gas emissions
(a) not being emitted into the atmosphere; or
(b) being removed from the atmosphere in a prescribed manner.
Tracking System
Tracking emissions offset credits, payments, etc.
The director must establish and maintain a system that tracks
(a) the issuance and the transfer, cancellation, retirement, suspension or revocation of emissions offset credits that are available for use in Manitoba;
(b) excess emissions payments made under subsection 7(2); and
(c) any other transaction or matter specified in the regulations.
Operator must maintain tracking system account
The operator of an industrial operation must open and maintain one or more accounts in the tracking system, as required by the regulations, so that the emissions offset credits that the operator remits, earns or obtains under this Act may be tracked by the director.
To open an account in the tracking system, the operator must apply to the director in the approved form and at the time and in the manner specified by the director.
System must be consistent with regulations
The director must ensure that the tracking system meets the prescribed requirements.
Suspending or revoking credits
To maintain the integrity of the emissions offset credit system, the director may, in prescribed circumstances, suspend or revoke one or more emissions offset credits.
A person is not entitled to be indemnified for a suspended or revoked credit or for a credit that is remitted and then cancelled or retired in accordance with the regulations.
Tracking systems may be combined with registries
If provided for in the regulations, the tracking system established under section 14 may be combined with either the Manitoba offset credits registry or a recognized credits registry or both of them.
REPORTING OF REVENUES
Reporting on revenues received
Revenues received by the government from excess greenhouse gas emissions payments must be reported in accordance with section 67.1.1 of The Financial Administration Act.
ADMINISTRATION AND ENFORCEMENT
Director
A director must be appointed under The Civil Service Act.
The director may delegate to any person, in writing, any of the powers, duties or functions of the director under this Act.
A delegation is subject to the limitations and conditions set out in the delegation.
Director retains powers and duties
The director may continue to exercise a power or perform a duty or function that the director has delegated.
The director may approve forms for use in the administration of this Act and may require them to be used.
The director may require a person to provide records or copies of records that the person is required to make and maintain under this Act for the purpose of
(a) determining compliance with this Act;
(b) verifying the accuracy or completeness of a record, report or other information provided to the director; or
(c) performing any other duty or function that the director considers necessary or advisable in the administration or enforcement of this Act.
A person required to provide records or copies of records under subsection (1) must do so.
Inspectors and Inspections
The minister may appoint any person as an inspector for the purpose of this Act, subject to any terms or conditions the minister considers necessary.
The minister may, on such terms or conditions as the minister may specify, designate a person or class of persons employed by the government as inspectors for the purpose of administering and enforcing this Act.
An inspector exercising a power under this Act must produce identification on request.
Director has inspection powers
The director has the powers of an inspector for the purpose of this Act.
An inspector may, at any reasonable time and where reasonably required to administer this Act or to determine compliance with it,
(a) enter and inspect any premises where the inspector reasonably believes
(i) a greenhouse gas is being, or has been, emitted, or
(ii) records relevant to the administration and enforcement of this Act are maintained;
(b) use or operate any equipment, in or on the premises, or require it to be used or operated, under specific conditions;
(c) conduct any test, take any sample or make any other examination of the premises, a process occurring on the premises or of any thing found in or on the premises;
(d) take photographs or videos or otherwise make a record of the premises or anything in or on the premises;
(e) require any person to provide information or produce any record for examination, auditing or copying; and
(f) take any other steps the inspector considers necessary.
An inspector may be accompanied by one or more persons who may assist the inspector in carrying out the inspection.
Authority to enter private dwelling
An inspector may not enter a private dwelling except with the consent of the owner or occupant or under the authority of a warrant.
The owner or person in charge of the premises being inspected or having custody or control of the relevant records or things must
(a) produce or make available to the inspector any records and things that the inspector requires for the inspection;
(b) provide any assistance or additional information, including personal information, that the inspector reasonably requires to perform the inspection; and
(c) answer any questions related to the purpose of the inspection that are asked of them by the inspector.
In order to inspect records that may be accessed electronically at the place being inspected, the inspector may require the person in charge of the premises or the relevant records to produce the records in the form of a printout or to produce them in an electronically readable format.
An inspector may use equipment at the place being inspected to make copies of relevant records and may remove the copies from the place of inspection for further examination.
Inspector may remove records to make copies
If an inspector is not able to make copies of records at the premises being inspected, the inspector may remove them to make copies, but must give a receipt to the person from whom they were taken and return the originals as soon as practicable.
A copy of a record made under this section and certified to be a true copy by the inspector is, in the absence of evidence to the contrary, admissible in evidence in any proceeding or prosecution as proof of the original record or document and its contents.
Compliance Orders
The director may issue a written order directed to a person if, in the director's opinion, the person fails to comply with a provision of this Act.
An order issued by the director under this section must set out the following:
(a) the name of the person to whom the order is directed;
(b) the measures that the person must take as set out in subsection (3);
(c) the date of the order and the time period within which the person must comply;
(d) the reasons for the order;
(e) a statement that the person has the right to appeal the order.
What a person may be required to do
An order issued by the director under this section may require the person to do either or both of the following:
(a) comply with a provision of this Act;
(b) do or refrain from doing one or more things specified in the order within the specified time period.
A person to whom a compliance order is directed must comply with it within the specified time period, unless the person appeals it in accordance with subsection 24(2).
If a person fails to comply with the order, and the order has not been appealed under subsection 24(2) (or on an appeal, the appeal has not been allowed), the director may apply to the court for an order directing compliance. An application may be made without notice if the court considers it appropriate in the circumstances.
The court may order compliance on any conditions that the court considers appropriate and may make any other order it considers necessary to ensure compliance.
A decision of the director to issue a compliance order under section 23 may be appealed to the court by the person named in the order.
An appeal to the court must be made by filing an application with the court within 14 days after a copy of the director's decision is served on the person. The person must also serve on the director a copy of the application that was filed.
The court may
(a) confirm the director's decision; or
(b) allow the appeal, on any terms and conditions the court considers appropriate.
The court may make any order as to costs that the court considers appropriate.
GENERAL
A person who obtains records or other information that is submitted in accordance with an application or request that is made or an obligation that is imposed under this Act must not disclose the records or information to any person or entity other than for the purposes of administering this Act, for the purposes of a prosecution or if required by law.
The prohibition in subsection (1) does not apply to the disclosure of information that is publicly available or that is required or authorized to be made public under this Act.
No action or proceeding may be brought against the minister, the director, an inspector or any other person acting under the authority of this Act for anything done or omitted to be done, in good faith, in the exercise or intended exercise of a power or duty under this Act.
A notice, order or other document under this Act is sufficiently given or served if it is
(a) delivered personally; or
(b) sent by registered mail, or by another service that provides the sender with proof of delivery, to the intended recipient at that person's last address appearing in the director's records.
A notice, order or other document sent by registered mail or other service that provides proof of delivery is deemed to be given or served five days after the day it was sent.
OFFENCES AND PENALTIES
A person who does any of the following commits an offence:
(a) contravenes a provision of this Act;
(b) fails to comply with an order, other than a court order, issued under this Act;
(c) contravenes a provision of the regulations, the contravention of which is stated in the regulations to be an offence;
(d) hinders, obstructs or interferes with an inspector conducting an inspection, refuses to answer questions on matters relevant to the inspection or provides the inspector with information on matters relevant to the inspection that the person knows to be false or misleading.
When a contravention of this Act or a failure to comply continues for more than one day, the person is guilty of a separate offence for each day the offence continues.
Liability of corporate officers and directors
If a corporation commits an offence under this Act, a director or officer of the corporation who authorized, permitted or acquiesced in the commission of the offence is also guilty of an offence, whether or not the corporation has been prosecuted or convicted.
The deadline for beginning a prosecution under this Act is one year after the date on which the director has reasonable and probable grounds to believe that an offence has been committed.
An individual who is guilty of an offence under section 28 is liable on conviction
(a) for a first offence, to a fine of not more than $50,000 or imprisonment for a term not exceeding six months, or both; and
(b) for a second or subsequent offence, to a fine of not more than $100,000 or imprisonment for a term not exceeding six months, or both.
A corporation that is guilty of an offence under section 28 is liable on conviction
(a) for a first offence, to a fine of not more than $250,000; and
(b) for a second or subsequent offence, to a fine of not more than $500,000.
Convicted person must still comply with order
A conviction for the offence of failing to comply with an order does not relieve the person convicted from complying with the order, and the convicting judge may, in addition to imposing a fine, order the person to do any work or action to comply with the order in respect of which the person was convicted, within the time specified in the order.
REGULATIONS
The Lieutenant Governor in Council may make regulations
(a) prescribing a gas or substance or any category of gases or substances to be a greenhouse gas;
(b) prescribing an undertaking or activity to be an industrial operation for the purpose of clause (a) of the definition "industrial operation" in subsection 2(1);
(c) respecting industrial operation designations under section 3, including prescribing criteria for determining if a facility, undertaking or activity operates in an emissions-intensive trade-exposed sector for the purpose of subsections 3(3) and (5);
(d) prescribing the circumstances in which a facility, undertaking or activity in Manitoba becomes or ceases to be an industrial operation under this Act, including regulations governing when an industrial operation becomes subject to the obligations under sections 6 and 7;
(e) respecting the quantification of greenhouse gases that are emitted by a facility, undertaking or activity in Manitoba;
(f) respecting circumstances in which greenhouse gases are deemed to be attributable to a facility, undertaking or activity;
(g) respecting the methodology by which greenhouse gas emissions are to be determined on a CO2 equivalent basis;
(h) respecting reports and verifications referred to in section 6, including establishing eligibility requirements for, and imposing duties on, persons who perform verifications;
(i) respecting greenhouse gas emissions limits referred to in sections 6, 7 and 10;
(j) respecting compliance periods under section 6 and the deadlines for providing compensation under section 7;
(k) respecting the provision of the compensation referred to in section 7;
(l) respecting the correction or updating of information that has been provided under this Act, including providing for the adjustment of compensation under section 7 based on the corrected or updated information, and the timing in which those adjustments must be made;
(m) respecting the methods, including sampling methods, and the equipment that are to be used to obtain information on greenhouse gas emissions and activities related to those emissions;
(n) prescribing the penalty amount for the purpose of subsection 7(4) or a method of calculating it;
(o) respecting the tracking system referred to in section 14 and the accounts in that system;
(p) providing for fees related to the use of the tracking system;
(q) respecting the creation and maintenance of records by operators, persons who verify reports and persons responsible for the projects for which Manitoba offset credits may be issued;
(r) respecting the contravention of a provision in a regulation that constitutes an offence subject to a penalty specified in section 29;
(s) defining words or phrases that are used but not defined in this Act;
(t) prescribing or specifying anything referred to in this Act as being prescribed or specified;
(u) respecting any transitional matter or difficulty that may be encountered in bringing the provisions of this Act into effect;
(v) respecting any matter the Lieutenant Governor in Council considers necessary or advisable to carry out the purpose of this Act.
Consideration of emissions limits elsewhere
In making a regulation under clause (1)(i), the Lieutenant Governor in Council must have regard for the stringency of greenhouse gas emissions limits in other Canadian jurisdictions.
General or specific application
A regulation made under this Act may be general or specific in its application.
Incorporation of codes and standards
A regulation made under this Act may incorporate or adopt by reference, and with any changes that the Lieutenant Governor in Council considers appropriate, all or part of a code, standard, guideline or procedure, as amended before or after the making of the regulation and relating to the subject matter of this Act, whether it is promulgated by any governmental authority or by any association or other body of persons.
Rolling incorporation of codes and standards
If a regulation made under this Act so provides, a code, standard, guideline or procedure incorporated or adopted by reference is a reference to it, as amended from time to time, whether before or after the regulation is made.
This section applies
(a) if Bill 19, introduced in the Second Session of the 42nd Legislature and titled The Public Service Act, receives royal assent; and
(b) when section 13 of that Act comes into force.
Subsection 17(1) is amended by striking out "The Civil Service Act" and substituting "Part 3 of The Public Service Act".
C.C.S.M. REFERENCE AND COMING INTO FORCE
This Act may be referred to as chapter I20 of the Continuing Consolidation of the Statutes of Manitoba.
This Act comes into force
(a) on July 1, 2020, if it receives royal assent before that day; or
(b) on December 1, 2020, if it receives royal assent on or after July 1, 2020.
THE FUEL TAX AMENDMENT ACT
The Fuel Tax Act is amended by this Schedule.
The title is amended by adding "AND CARBON" after "FUEL".
Section 1 is amended
(a) by repealing the definitions "aviation fuel", "bunker fuel", "litre", "marked fuel" and "marked gasoline";
(b) in the definition "bulk fuel", by adding ", other than solid fuel," after "200 litres of fuel";
(c) by replacing the definitions "applicable rate", "dealer" and "fuel" with the following:
"applicable rate", in relation to a type of fuel, means the applicable rate of tax set out in the fourth column of the table for that type and use of fuel. (« taux applicable »)
"dealer" means a person who, in Manitoba,
(a) sells or offers to sell fuel, other than solid fuel; or
(b) keeps fuel, other than solid fuel, for sale in the course of the person's business. (« marchand »)
"fuel" means a substance referred to in the first column of the table. (« carburant »)
(d) by adding the following definitions:
"basic fuel tax rate", in relation to a type of fuel, means the basic fuel tax rate set out in the second column of the table for that type and use of fuel. (« taux de la taxe de base sur le carburant »)
"carbon tax rate", in relation to a type of fuel, means the carbon tax rate set out in the third column of the table for that type and use of fuel. (« taux de la taxe sur le carbone »)
"commercial", in relation to a flight, means a flight by an aircraft that is registered under the Aeronautics Act (Canada) as a commercial aircraft and is used solely for transporting passengers, cargo or both for gain as an air service licensed under the Canada Transportation Act. (« commercial »)
"interjurisdictional", in relation to a flight, means a flight, or a segment of such a flight,
(a) that departs from a place in Manitoba and has, as its next scheduled stop, a destination outside Manitoba; or
(b) that arrives at a place in Manitoba directly from a location outside Manitoba. (« interterritorial »)
"operator of an industrial operation" means an operator as defined in subsection 2(1) of The Industrial Greenhouse Gas Emissions Control and Reporting Act. (« exploitant d'une exploitation industrielle »)
"table" means the tax rates table set out in section 1 of the Schedule. (« tableau »)
Section 1 is further amended by renumbering it as subsection 1(1) and adding the following as subsections (2) to (4):
The definitions in section 2 of the Schedule apply throughout this Act.
Tax to be calculated according to Schedule
If a tax under this Act is payable at an applicable rate, it is to be calculated in accordance with the Schedule.
In the case of a mixture of two or more fuels or a mixture of fuel and additives, the mixture is deemed to be the type of fuel that is present in the highest proportion.
Subsection 5(1) is amended
(a) in the part before clause (a), by striking out "section 7 (tax on locomotive fuel)" and substituting "sections 7 (tax on locomotive fuel) and 7.1 (tax on solid fuel)"; and
(b) by replacing clause (b) with the following:
(b) must pay the tax at the following time:
(i) in the case of piped gas, when the purchase price is paid or when it becomes payable, whichever is earlier,
(ii) in any other case, at the time of receiving the fuel.
Subsection 6(2) is amended
(a) in clause (a), by striking out "$18" and substituting "$30"; and
(b) in clause (b), by striking out "6.0¢" and substituting "10¢".
Clause 7(b) is replaced with the following:
(b) buys fuel in Manitoba or outside Manitoba for use in locomotive operations in Manitoba;
The following is added after section 7:
A person who, in any calendar year after 2020, buys more than one tonne of solid fuel for use in Manitoba must, before March 20 of the next year,
(a) file with the director an information return in a form approved by the director; and
(b) pay tax on all the solid fuel purchased by the person in that year for use in Manitoba, rounded to the nearest 1/10 of a tonne, at the applicable rate.
If a buyer is not able to satisfy the director that a lower rate applies, the highest applicable rate for a grade of coal applies in determining the tax payable.
Subsection 9(1) is amended by adding "or" at the end of clause (i), striking out "or" at the end of clause (j) and repealing everything after clause (j).
The following is added after subsection 9(2):
Exemptions — fuel used for residential heating
No tax is payable by a buyer of propane, bunker fuel, crude oil, or marked fuel other than marked gasoline, when it is purchased for use only in heating a dwelling unit in which the buyer of the fuel resides.
Section 10 is replaced with the following:
Exemption for fuel in small containers
No tax is payable on a retail purchase of fuel that is prepackaged in a factory-sealed, non-refillable container of 10 litres or less.
The following is added after section 11:
Exemption — piped gas and solid fuel used by large industrial operations
No tax is payable on piped gas or solid fuel when it is bought by an operator of an industrial operation for use only in, and at the site of, the industrial operation.
Exemption — non-covered activities
No tax is payable on a retail purchase of fuel when it
(a) is purchased for use only
(i) as a raw material in an industrial process that produces another fuel or another substance, material or thing,
(ii) as a solvent or cleaner,
(iii) as a diluent in the production or transport of crude bitumen or another substance, material or thing, or
(iv) in prescribed circumstances; and
(b) is not put into a fuel system that produces heat or energy.
Section 12 is replaced with the following:
No tax is payable on a light petroleum distillate that is refined to the 1-K Kerosene standard fixed by the Canadian General Standards Board and is not used as aviation fuel.
Subsection 13(2.1) is amended by adding "commercial" after "non-stop".
The following is added after subsection 13(9):
Carbon tax refund — large industrial operations
For fuel used in, and at the site of, an industrial operation, the operator of the industrial operation is entitled to a refund in the amount by which the tax paid on the fuel exceeds the tax that would have been payable if the applicable rate were the basic fuel tax rate for that fuel.
Subsection 31(1) is amended by adding the following after clause (d):
(d.1) for the purpose of section 11.1 and subsection 13(10), establishing rules for determining whether fuel is used in, and at the site of, an industrial operation;
(d.2) for the purpose of subclause 11.2(a)(iv), prescribing circumstances respecting the use of fuel;
The Schedule is added as a Schedule to The Fuel and Carbon Tax Act.
RELATED AND CONSEQUENTIAL AMENDMENTS
The Biofuels Act is amended by this section.
The definition "fuel supplier" in section 1 is amended by striking out "The Fuel Tax Act" and substituting "The Fuel and Carbon Tax Act".
Clause 6.4(2)(a) is amended
(a) in the part before the formula, by striking out "The Gasoline Tax Act or The Fuel Tax Act" and substituting "The Fuel and Carbon Tax Act";
(b) in subclause (ii) of the description of L in the formula, by striking out "The Gasoline Tax Act or The Fuel Tax Act" and substituting "The Fuel and Carbon Tax Act"; and
(c) by replacing subclause (iii) of the description of L in the formula with the following:
(iii) the number of litres of gasoline and gasoline-based fuels that were sold by fuel suppliers during the period and on which tax was imposed under subsection 5(1) of The Fuel and Carbon Tax Act at the applicable rate (as defined in that Act) for clear gasoline, and was collected and not refunded, multiplied by the prescribed percentage that applies in determining the denatured ethanol sales mandate for that period, or, if another percentage is prescribed, by that other percentage;
Clauses 3(2)(a) and 5(2)(d) of The Civil Remedies Against Organized Crime Act are amended by striking out "The Fuel Tax Act" and substituting "The Fuel and Carbon Tax Act".
Subsection 3(1) of The Emissions Tax on Coal and Petroleum Coke Act is amended, in the part before clause (a), by adding "before 2021" after "any calendar year".
The Financial Administration Act is amended by this section.
Clause 67.1(1)(a) is replaced with the following:
(a) as fuel tax revenue, the government's tax revenue for the fiscal year under The Fuel and Carbon Tax Act, other than
(i) the tax on aviation fuel,
(ii) the tax on fuel used in locomotive operations within the meaning of that Act, and
(iii) revenue derived from the application of the carbon tax rate to any type of fuel under that Act;
The following is added after section 67.1:
Within six months after the end of each fiscal year beginning after 2020, the Minister of Finance must prepare a report that sets out
(a) the government's carbon pricing revenue, being the total of
(i) its revenue for that year derived from the application of the carbon tax rate to any type of fuel under The Fuel and Carbon Tax Act, and
(ii) its revenue for that year received under clause 7(2)(b) of The Industrial Greenhouse Gas Emissions Control and Reporting Act; and
(b) the estimated amount of tax revenue reductions resulting from tax changes made, in whole or in part, to offset the government's carbon pricing revenue received.
Each report after the first report must also show the government's carbon pricing revenue and offsetting tax changes on a cumulative basis.
The Minister of Finance must table the report in the Legislative Assembly along with his or her report under section 67.
Report to be included in public accounts
The report referred to in subsection (1) must be included in the public accounts each fiscal year.
The Tax Administration and Miscellaneous Taxes Act is amended by this section.
Subsection 1(1) is amended
(a) by replacing the definition "marked fuel" with the following:
"marked fuel" means fuel that is dyed or otherwise marked in accordance with the regulations made under The Fuel and Carbon Tax Act. (« carburant marqué »)
(b) in the definition "tax Act", by replacing clause (b) with the following:
(b) The Fuel and Carbon Tax Act;
The following provisions are amended by striking out "The Fuel Tax Act" and substituting "The Fuel and Carbon Tax Act":
(a) subsection 1(1) in the definitions "bulk fuel", "carrier licence" and "fuel";
(b) clauses 10(2)(d) and 17(2)(b);
(c) subsection 25(1);
(d) subsection 25(2) in the part before clause (a);
(e) subsection 31(1) in the part before clause (a) and in clauses (a) and (b);
(f) subsection 34(6);
(g) clauses 77(1)(a), (b), (c) and (g);
(h) clauses 77(2)(a) and (a.1) in the part before subclause (i);
(i) clauses 79(1)(a), (b) and (d).
This Act comes into force
(a) on July 1, 2020, if it receives royal assent before that day; or
(b) on December 1, 2020, if it receives royal assent on or after July 1, 2020.
SCHEDULE
(Section 5)
The following table sets out the rates of tax on fuel.
| types and uses of fuel | basic fuel tax rate | carbon tax rate1 | applicable rate2 (basic + carbon tax rates) |
|
| Aviation fuel | purchased with a permit and delivered directly into the fuel tanks of an aircraft for an interjurisdictional commercial passenger flight | 3.2 ¢/l | 0 ¢/l | 3.2 ¢/l |
| purchased with a permit and delivered directly into the fuel tanks of an aircraft for an interjurisdictional commercial cargo flight | 1.5 ¢/l | 0 ¢/l | 1.5 ¢/l | |
| purchased without a permit for an interjurisdictional commercial cargo flight or delivered directly into the fuel tanks of an aircraft for any other commercial cargo flight | 1.5 ¢/l | 6.22 ¢/l | 7.72 ¢/l | |
| other | 3.2 ¢/l | 6.22 ¢/l | 9.42 ¢/l | |
| Bunker fuel | used for heating | 1.7 ¢/l | 7.97 ¢/l | 9.67 ¢/l |
| other | 14.0 ¢/l | 7.97 ¢/l | 21.97 ¢/l | |
| Butane | 3.0 ¢/l | 4.45 ¢/l | 7.45 ¢/l | |
| 6.0 ¢/kg | 8.90 ¢/kg | 14.90 ¢/kg | ||
| Diesel3 | used for locomotive operation | 6.3 ¢/l | 6.74 ¢/l | 13.04 ¢/l |
| marked and used for heating | 1.9 ¢/l | 6.74 ¢/l | 8.64 ¢/l | |
| clear diesel (not for locomotive operation) | 14.0 ¢/l | 6.74 ¢/l | 20.74 ¢/l | |
| Ethane | 14.0 ¢/l | 2.55 ¢/l | 16.55 ¢/l | |
| Gas liquids | 14.0 ¢/l | 3.81 ¢/l | 17.81 ¢/l | |
| Gasoline3 | marked and used for heating | 1.9 ¢/l | 5.30 ¢/l | 7.20 ¢/l |
| marked and used for any other permitted purpose | 3.0 ¢/l | 0 ¢/l | 3.0 ¢/l | |
| clear gasoline | 14.0 ¢/l | 5.30 ¢/l | 19.30 ¢/l | |
| Heavy fuel oil | 14.0 ¢/l | 7.97 ¢/l | 21.97 ¢/l | |
| Kerosene | 14.0 ¢/l | 6.45 ¢/l | 20.45 ¢/l | |
| Methanol | 14.0 ¢/l | 2.71 ¢/l | 16.71 ¢/l | |
| Naphtha | 14.0 ¢/l | 5.64 ¢/l | 19.64 ¢/l | |
| Natural gas | piped gas | N/A | 4.74 ¢/m3 | 4.74 ¢/m3 |
| used for motor vehicle operation | 10.0 ¢/m3 | 4.74 ¢/m3 | 14.74 ¢/m3 | |
| other | 10.0 ¢/m3 | 4.74 ¢/m3 | 14.74 ¢/m3 | |
| Pentanes plus | 14.0 ¢/l | 5.11 ¢/l | 19.11 ¢/l | |
| Propane | 3.0 ¢/l | 3.87 ¢/l | 6.87 ¢/l | |
| 6.0 ¢/kg | 7.74 ¢/kg | 13.74 ¢/kg | ||
| Solid fuel | lignite coal | N/A | 36.47 $/t | 36.47 $/t |
| sub-bituminous coal | N/A | 46.79 $/t | 46.79 $/t | |
| bituminous coal | N/A | 54.57 $/t | 54.57 $/t | |
| other grades of coal, including anthracite | N/A | 59.72 $/t | 59.72 $/t | |
| coke, including petroleum coke | N/A | 79.49 $/t | 79.49 $/t | |
| combustible waste | N/A | 55.88 $/t | 55.88 $/t | |
| Other — any other substance that may be used to generate power by means of an internal combustion or turbine engine, or for heating | 14.0 ¢/l | rate determined under s. 4 | 14.0 ¢/l + [carbon tax rate] |
|
Notes:
1. The carbon tax rate for a type of fuel is calculated in the manner set out in clause 4(b) of this Schedule.
2. The applicable rate does not reflect any exemption set out in sections 9 to 12.1 of this Act.
3. The carbon tax rates for gasoline and diesel have been adjusted to reflect the biodiesel and denatured ethanol content mandated by The Biofuels Act.
The following definitions apply in this Schedule.
"aviation fuel" means a substance suitable for generating power by means of an aircraft engine, including a turbine engine. (« carburant aviation »)
"bunker fuel" means a crude oil distillate having a viscosity of greater than 5.5 centistokes at 40 C and that, when used for heating, requires or would ordinarily require preheating. (« mazout »)
"clear" means not marked. (« incolore »)
"combustible waste" means tires or asphalt shingles, whether in whole or in part, that are burned to produce heat or energy. (« déchet combustible »)
"diesel" means a substance that is sold or represented as diesel suitable for generating power by means of a diesel engine or as heating oil and that is not any other type of fuel. (« diesel »)
"gas liquids" means a mixture — the exact composition of which is unknown — of two or more of ethane, propane, butane or pentanes plus, whether in gaseous or liquid form, that is obtained from processing natural gas or crude oil. (« liquides de gaz »)
"gasoline" means a substance that is suitable for generating power by means of an internal combustion engine other than a diesel engine, and that is not any other type of fuel. (« essence »)
"heavy fuel oil" means a substance that is made up of a distillate or a residual of crude oil and that has a viscosity greater than 14 centistokes at 50°C. (« mazout lourd »)
"kerosene" means a light petroleum distillate that meets the requirements of the National Standard of Canada CAN/CGSB–3.3, Kerosene, as amended from time to time, but does not include aviation fuel. (« kérosène »)
"locomotive operation" means the operation of a railway locomotive and includes the operation of any equipment attached directly to the railway locomotive's fuel supply system. (« exploitation d'une locomotive »)
"marked" means dyed or otherwise marked in accordance with the regulations. (« marqué »)
"methanol" means its normal scientific meaning but does not include methanol derived entirely from biological matter available on a renewable or recurring basis. (« méthanol »)
"naphtha" means a refined or partially refined petroleum fraction with an approximate boiling temperature between 50°C and 204°C. (« naphta »)
"natural gas" means natural gas that consists of at least 90% methane and that meets the specifications for pipeline transport and sale for general distribution to the public. (« gaz naturel »)
"pentanes plus" means a substance that is obtained from the production or processing of raw gas, condensate or crude oil, that is not any other type of fuel and that is
(a) pentane;
(b) hydrocarbons heavier than pentane; or
(c) a combination of pentane and heavier hydrocarbons. (« pentanes plus »)
"petroleum coke" includes
(a) a carbonaceous solid produced from an oil refinery coke unit or an oil or bitumen upgrader coker unit;
(b) a carbonaceous solid produced from a cracking process, including coking, fluid coking, flexicoking and delayed coking; or
(c) any substance commonly referred to as "green coke" or "fuel grade coke". (« coke de pétrole »)
"piped gas" means piped gas as defined in The Retail Sales Tax Act. (« gaz canalisé »)
"purchased with a permit", in relation to a purchase of aviation fuel, means that the buyer's permit to purchase the fuel at the applicable rate specified for that type of purchase is presented to the seller at the time of purchase. (« acheté avec un permis »)
"solid fuel" means
(a) coal;
(b) coke; and
(c) combustible waste. (« combustible solide »)
"standard reference conditions" means
(a) in the case of a gas, a temperature of 15°C and an atmospheric pressure of 101.325 kPa; and
(b) in the case of a liquid, a temperature of 15°C. (« conditions normales »)
For calculating the amount of tax payable for a fuel, a quantity of fuel to be measured in litres or cubic metres is to be measured at standard reference conditions.
Determining when certain substances are separate fuels
For calculating the amount of tax payable,
(a) ethane, propane, butane and pentanes plus are separate fuels when they have been processed and are identifiable as separate fuels as a result of processing; and
(b) gas liquids are a separate fuel when the gas liquids are separated from natural gas or crude oil for the first time as a result of processing and have not been
(i) separated into ethane, propane, butane or pentanes plus as a result of processing, or
(ii) separated into ethane, propane, butane or pentanes plus as a result of processing and then remixed into a blend of one or more of the fuels.
Carbon tax rate for other fuels
The carbon tax rate in the last row of the table must
(a) be determined by the director; and
(b) reflect a rate of $25 per tonne of greenhouse gas emissions, on a CO2 equivalent basis, as determined according to the most recent version of the following, as available at the time the determination is made:
(i) the National Inventory Report: Greenhouse Gas Sources and Sinks in Canada published by Environment and Climate Change Canada,
(ii) the Emission Factors for Greenhouse Gas Inventories, as published by United States Environmental Protection Agency.
THE INCOME TAX AMENDMENT ACT
The Income Tax Act is amended by this Schedule.
Clause 7.2(1.1)(b) is amended by striking out "7/8" and substituting "6/7".
Subsection 7.2(1.2) is amended
(a) in the part before clause (a), by striking out "7/8" and substituting "6/7"; and
(b) by striking out "and" at the end of clause (b), adding "and" at the end of clause (c) and adding the following after clause (c):
(d) "7/8" in respect of property acquired after June 30, 2019, and before July 1, 2020.
Clauses (a) and (b) of the definition "investment tax credit" in subsection 7.2(2) are amended, in the part before subclause (i), by striking out "8%" and substituting "7%".
Subsection 7.2(2.6) is amended
(a) in the part before clause (a), by striking out "8%" and substituting "7%"; and
(b) by striking out "and" at the end of clause (a), adding "and" at the end of clause (b) and adding the following after clause (b):
(c) "8%" in respect of property acquired after June 30, 2019, and before July 1, 2020.
This Act comes into force
(a) on July 1, 2020, if it receives royal assent before that day; or
(b) on December 1, 2020, if it receives royal assent on or after July 1, 2020.
THE RETAIL SALES TAX AMENDMENT ACT
The Retail Sales Tax Act is amended by this Schedule.
Subsection 1(1) is amended
(a) by replacing the definition "general sales tax rate" with the following:
"general sales tax rate" means
(a) if the tax becomes payable before July 1, 2013, 7%,
(b) if the tax becomes payable after June 30, 2013, and before July 1, 2019, 8%,
(c) if the tax becomes payable after June 30, 2019, and before July 1, 2020, 7%, and
(d) if the tax becomes payable after June 30, 2020, 6%; (« taux général de taxe de vente »)
(b) in the definition ""purchase price" or "sale price"" by replacing subclause (c)(i) with the following:
(i) a tax under this Act or The Fuel and Carbon Tax Act,
(c) by repealing the definition "infrastructure funding period".
Subclauses 2(1.1)(a)(i) and (ii) are replaced with the following:
(i) 4%, if the tax becomes payable before July 1, 2013,
(ii) 4.5%, if the tax becomes payable after June 30, 2013, and before July 1, 2019,
(iii) 4%, if the tax becomes payable after June 30, 2019, and before July 1, 2020, and
(iv) 3.5%, if the tax becomes payable after June 30, 2020; and
Subsection 2(1.2) is amended, in the part before clause (a), by striking out "1.4%" and substituting "1.2%".
Subsection 2.2(11) is replaced with the following:
Calculation of tax reduction — date of purchase
The reference to "the general sales tax rate" in clause (9)(c) is to be read as
(a) 7%, if the tax on the purchased vehicle becomes payable before July 1, 2013;
(b) 8%, if the tax on the purchased vehicle becomes payable after June 30, 2013, and before July 1, 2019; and
(c) 7%, if the tax on the purchased vehicle becomes payable after June 30, 2019, and before July 1, 2020.
Subsection 2.3(5) is amended by replacing the table with the following:
| Calendar Year | Tax Rate For Vehicle other than a Bus | Tax Rate For Bus |
| the acquisition year | 2.823% | 1.765% |
| the calendar year following the acquisition year | 2.268% | 1.418% |
| the second calendar year following the acquisition year | 1.866% | 1.166% |
| the third calendar year following the acquisition year | 1.575% | .984% |
| the fourth calendar year following the acquisition year | 1.369% | .855% |
| the fifth calendar year following the acquisition year | 1.352% | .844% |
| the sixth calendar year following the acquisition year | 1.293% | .808% |
| the seventh calendar year following the acquisition year | 1.274% | .795% |
| the eighth calendar year following the acquisition year | 1.283% | .801% |
| the ninth and subsequent calendar years following the acquisition year | 1.314% | .821% |
Subsection 2.3(5.1) is repealed.
Subsection 2.3(6) is amended, in the description of R in the formula, by striking out everything after "subsection (5)".
Subsection 3(4) is amended
(a) in the part before clause (a), by striking out "fuel, as defined in The Fuel Tax Act" and substituting "fuel as defined in The Fuel and Carbon Tax Act, other than solid fuel as defined in that Act and piped gas"; and
(b) in clause (a), by striking out "section 10" and substituting "section 10 or 11.2".
Subsection 26(10.1) is replaced with the following:
Calculation of tax refund — date of purchase
The reference to "the general sales tax rate" in clauses (4)(b), (8)(b) and (9)(b) is to be read as
(a) 7%, if the tax on the vehicle or aircraft purchased becomes payable before July 1, 2013;
(b) 8%, if the tax on the vehicle or aircraft purchased becomes payable after June 30, 2013, and before July 1, 2019; and
(c) 7%, if the tax on the vehicle or aircraft purchased becomes payable after June 30, 2019, and before July 1, 2020.
Consequential amendment, C.C.S.M. c. T2
Subsection 14(3.1) of The Tax Administration and Miscellaneous Taxes Act is replaced with the following:
The reference to "9.15%" in subsection (3) is to be read as "10.15%" during the period of July 1, 2013 to June 30, 2019.
This Act comes into force
(a) on July 1, 2020, if it receives royal assent before that day; or
(b) on December 1, 2020, if it receives royal assent on or after July 1, 2020.
THE TOBACCO TAX AMENDMENT ACT
The Tobacco Tax Act is amended by this Schedule.
Subsection 2(1) is amended
(a) in clause (a), by striking out "30¢" and substituting "30.5¢";
(b) in clause (c), by striking out "27.5¢" and substituting "28¢";
(c) in clause (c.1), by striking out "45.5¢" and substituting "46¢"; and
(d) in clause (d), by striking out "29¢" and substituting "29.5¢".
This Act comes into force
(a) on July 1, 2020, if it receives royal assent before that day; or
(b) on December 1, 2020, if it receives royal assent on or after July 1, 2020.