Province Introduces Legislation to Power the Economy

CANADA, February 24 - New legislation will help Nova Scotians benefit from the jobs and investments that come with clean energy and natural resource development.

Premier Tim Houston introduced the Powering the Economy Act today, February 24. It secures financial benefits from offshore wind, allows more subsurface energy resources to be developed safely, and continues modernizing Nova Scotia’s electricity system.

“This legislation makes sure Nova Scotians reap the full benefits of offshore wind and onshore natural resources and that our electricity system is serving us well, now and in the future,” said Premier Houston. “Offshore wind is a game-changer that will help pay for the services Nova Scotians deserve. We also see great opportunities in emerging sectors like natural hydrogen and carbon storage, and we’re making sure we’re ready to regulate them.”

The bill creates the new Offshore Renewable Energy Revenue Act to provide a revenue framework for offshore wind projects. One levy is set in the legislation, and another will be set in regulations to reflect market conditions. Bid fees will be set in regulations.

The bill also repeals the Petroleum Resources Act and replaces it with new legislation that addresses emerging natural resource opportunities. In addition to resources such as onshore oil and gas, the new Subsurface Energy Resource Extraction Act will also regulate geothermal, natural hydrogen, helium and carbon storage projects.

Two changes in the bill relate to the Independent Energy System Operator (IESO Nova Scotia). Under the More Access to Energy Act, it will have more time to finish moving staff, equipment and responsibilities from Nova Scotia Power.

Under the Electricity Act, renewable electricity targets can be set for IESO Nova Scotia, which is taking over responsibility for procuring clean energy for the grid. As Nova Scotia Power moves out of electricity generation, those targets will be removed from the utility’s requirements.

Quick Facts:

• under regulations, offshore wind bid applications will require a $250,000 refundable fee, and winning offshore wind bidders will pay a $750,000 non-refundable licence fee
• under Offshore Renewable Energy Revenue Act, developers will pay an annual levy of $7,000 per megawatt for the first 10 years of commercial operations
• after 10 years, the Province can continue applying the $7,000 levy or apply a levy set in regulations that reflects a percentage of gross revenue – whichever is greater
• the original deadline to complete the transition from Nova Scotia Power to IESO Nova Scotia was October 2026; the new deadline is May 1, 2028
• the bill clarifies that, if Nova Scotia Power is granted a power purchase agreement for any offshore wind energy, the utility must purchase all the electricity outlined in that agreement

Additional Resources:

Bills tabled in the legislature are available at: https://nslegislature.ca/legislative-business/bills-statutes/bills/assembly-65-session-1

Nova Scotia’s Clean Power Plan: https://novascotia.ca/clean-power-plan/

More Access to Energy Act: https://nslegislature.ca/sites/default/files/legc/statutes/more%20access%20to%20energy.pdf

Electricity Act: https://nslegislature.ca/sites/default/files/legc/statutes/electricity.pdf

IESO Nova Scotia: https://ieso-ns.ca/