EXPLANATORY NOTE
This Explanatory Note was written as a reader’s aid to Bill 36 and does not form part of the law. Bill 36 has been enacted as Chapter 23 of the Statutes of Ontario, 2022.
SCHEDULE 1
ELECTRICITY ACT, 1998
The Schedule adds a new Part II.1 to the Electricity Act, 1998, respecting the transfer of clean energy credits, as defined in the Part. The Part establishes a framework for the recognition of environmental attributes, as defined in the Part, as clean energy credits on a clean energy credit registry that is established or designated by the Independent Electricity System Operator (IESO). Clean energy credits can only be transferred to specified electricity consumers if the credits are recognized on the clean energy credit registry and other specified transfer requirements are met. The Part also sets out requirements and restrictions respecting the retirement of clean energy credits on the clean energy credit registry.
The Part requires the IESO, Ontario Power Generation Inc. and other persons or entities that the regulations made by the Minister under the Part may specify to make certain environmental attributes available for transfer. It also creates authority for regulations that may restrict persons or entities from making environmental attributes available for transfer.
Any person or entity that makes environmental attributes available for transfer (transferors), and any consumer who intends to purchase or acquire a clean energy credit (transferees), must register with the clean energy credit registry.
In addition to requiring the IESO to establish or designate a clean energy credit registry for the purposes of the Part, the IESO is authorized to create registry rules in relation to the use of the registry. The IESO is also subject to related annual reporting requirements.
The IESO and Ontario Power Generation Inc. are required to apply their proceeds from the transfer of their clean energy credits as directed by the regulations made by the Minister of Energy under the Part.
Complementary amendments are made to other provisions of the Act, and to the Ontario Energy Board Act, 1998.
SCHEDULE 2
FUEL TAX ACT
Subsection 2 (1.1) of the Fuel Tax Act currently provides for a reduction of the tax payable by purchasers of clear fuel if the tax is payable during the period beginning on July 1, 2022 and ending on December 31, 2022. The subsection is amended to provide that the period ends on December 31, 2023.
SCHEDULE 3
GASOLINE TAX ACT
Subsection 2 (1.1) of the Gasoline Tax Act currently provides for a reduction of the tax payable by purchasers of gasoline if the tax is payable during the period beginning on July 1, 2022 and ending on December 31, 2022. The subsection is amended to provide that the period ends on December 31, 2023.
SCHEDULE 4
INTERIM APPROPRIATION FOR 2023-2024 ACT, 2022
The Schedule enacts the Interim Appropriation for 2023-2024 Act, 2022, which authorizes expenditures pending the voting of supply for the fiscal year ending on March 31, 2024 up to specified maximum amounts. All expenditures made or recognized under the Act must be charged to the proper appropriation following the voting of supply for the fiscal year ending on March 31, 2024.
SCHEDULE 5
LEGISLATIVE ASSEMBLY ACT
The Legislative Assembly Act is amended to repeal subsection 61 (1.3). The subsection would end the salary freeze for members of the Legislative Assembly in the second fiscal year after the Province’s total revenues exceed or equal its total expenses.
A consequential amendment is made to section 3 of the Executive Council Act to provide that, for the purposes of that section, the salaries of members of the Assembly are to be calculated in accordance with the rules set out in section 61 of the Legislative Assembly Act.
SCHEDULE 6
ONTARIO GUARANTEED ANNUAL INCOME ACT
The Ontario Guaranteed Annual Income Act is amended to provide that for the period beginning on January 1, 2023 and ending on December 31, 2023, the amount payable to an eligible recipient under the Act is double what the Act otherwise provides for.
SCHEDULE 7
PENSION BENEFITS ACT
Section 10 of the Pension Benefits Act governs the contents of a pension plan.
The Schedule amends section 10 to set out the circumstances in which a collective agreement is included as a document that creates and supports a pension plan.
The Schedule also amends section 10 to require that the documents that create and support a pension plan must set out the pension plan’s funding policy and its governance policy. Initially this requirement applies with respect to pension plans that provide any target benefits (see subsection 1 (2) of the Schedule). The Schedule provides for this requirement to be amended so that it applies with respect to all pension plans (see subsection 1 (3) of the Schedule). These requirements each come into force on a day to be named by proclamation, and transitional matters are provided for in each case.
A not-yet-in-force amendment to section 10 is repealed.
SCHEDULE 8
SECURITIES ACT
Section 143 of the Securities Act is amended with respect to the rules made by the Ontario Securities Commission. Under the new provisions, the rules may authorize or require that a document that is to be delivered, forwarded, distributed or sent to a person or company under specified provisions of the Act be made available to the person or company in another way instead. If a document is made available in such a manner, it is deemed to have been received on the day and at the time, if any, determined under the rules.
SCHEDULE 9
SUPPLEMENTARY INTERIM APPROPRIATION FOR 2022-2023 ACT, 2022
The Schedule enacts the Supplementary Interim Appropriation for 2022-2023 Act, 2022, which authorizes expenditures pending the voting of supply for the fiscal year ending on March 31, 2023 up to specified maximum amounts. The expenditures authorized are in addition to those authorized under the Interim Appropriation for 2022-2023 Act, 2021. All expenditures made or recognized under the Interim Appropriation for 2022-2023 Act, 2021 and this Act must be charged to the proper appropriation following the voting of supply for the fiscal year ending on March 31, 2023.
SCHEDULE 10
TAXATION ACT, 2007
The Schedule amends section 92 of the Taxation Act, 2007, which currently provides for the Ontario production services tax credit. In particular, subsection 92 (5.7) of the Act sets out conditions that an expenditure must meet for the expenditure to be considered an eligible tangible property expenditure in respect of a qualifying corporation’s tax year. Section 92 is amended to provide for different conditions that apply to expenditures for the lease of real property in specific circumstances. These conditions apply to such expenditures incurred after November 14, 2022. In addition, amendments are made to limit the total amount of such expenditures that can be used to determine the qualifying corporation’s eligible tangible property expenditure for a taxation year.
