Renewables, Carbon Storage and Subsurface Reform

Summary#

• The Powering the Economy Act updates Nova Scotia’s energy laws to speed up renewable power and set clear rules for new energy industries. It lets the Minister set renewable electricity targets and require utilities to buy power from offshore projects. It also creates new laws for onshore subsurface energy like petroleum, natural hydrogen, geothermal heat, and carbon storage, and sets levies on offshore renewable projects.
• Key changes include:
  • Lets the Minister set renewable electricity targets, require a minimum share of renewable power for customers, and set reporting rules. IESO (the electricity system operator named in the Act) must follow these targets.
  • Allows the Minister to require a public utility to sign a power purchase agreement (PPA) with an offshore (“submerged land”) electricity project after a call for applications.
  • Creates an Offshore Renewable Energy Revenue system: bidders and licence holders pay amounts set by regulation; operating projects pay an annual levy of $7,000 per megawatt (MW) for 10 years, and then the greater of $7,000/MW or a set percentage of gross revenue.
  • Enacts a Subsurface Energy Resource Extraction Act covering petroleum, natural hydrogen, geothermal, and permanent carbon storage (carbon sequestration). It sets licences and leases, safety and monitoring rules, data reporting, and funds for orphan wells and long‑term carbon storage stewardship.
  • Requires landowner consent for surface access; if consent can’t be obtained, the Minister can order entry or expropriation with compensation (resource value excluded). Hydraulic fracturing (fracking) is only allowed if authorized by regulation.
  • Repeals the old Petroleum Resources Act; updates related laws; extends a deadline for certain “transfer orders” to May 1, 2028; and applies some electricity changes as of October 3, 2025.

What it means for you#

• Electricity customers

  • You may see more renewable power on the grid over time as the Minister sets targets and utilities can be required to buy offshore wind or other renewable power.
  • Utilities will have to report on progress toward renewable targets.

• Homeowners and landowners

  • Companies need your consent to enter your land for drilling, geothermal, disposal wells, or carbon storage. If consent isn’t reached, the Minister can order entry or begin expropriation with compensation. The payment cannot include the value of subsurface resources.
  • Carbon storage projects must monitor for the long term. A special fund will cover post‑closure care, paid for by project operators.
  • Fracking (breaking rock to release oil or gas) remains banned unless government later authorizes it by regulation.

• Workers and local businesses

  • New rules aim to attract investment in offshore wind, natural hydrogen, geothermal, and carbon storage, which could create construction and technical jobs.
  • Some exploration agreements can include provisions to use Nova Scotian labour, goods, and services.

• Communities

  • The Act requires safety, monitoring, and reporting for wells, disposal operations, and carbon storage, including induced‑seismicity (small earthquake) assessments when needed.
  • An orphan‑well fund can help deal with abandoned wells.

• Energy developers and project operators

  • Offshore renewable projects must pay bid and licence amounts (set by regulation) and annual levies: $7,000 per MW of capacity for 10 years, then the greater of $7,000/MW or a percentage of gross revenue (set by regulation).
  • The Minister can reduce or exempt levies by regulation, and can require utilities to enter PPAs with offshore projects selected through a competitive process.
  • Onshore activities (petroleum, hydrogen, geothermal, carbon storage) require licences/leases and detailed authorizations with safety, monitoring, and reporting duties. Serious penalties apply for violations.

• Timelines

  • Certain electricity‑related amendments take effect as of October 3, 2025.
  • Transfer orders under the More Access to Energy Act must be made, and take effect, by May 1, 2028.
  • Most other parts start on a future date set by government proclamation.

Expenses#

No publicly available information.

Proponents' View#

• Sets clear renewable targets and a way to secure long‑term power contracts, helping get offshore wind and other clean projects built.
• Creates a predictable levy and licensing system for offshore renewables, giving Nova Scotia a fair share of revenues.
• Establishes modern rules for hydrogen, geothermal, and carbon storage, which supporters say can attract investment and create good jobs.
• Builds in environmental safeguards: strict authorizations, monitoring, data reporting, and funds for orphan wells and long‑term carbon storage stewardship.
• Keeps flexibility to adjust levies and timelines by regulation, so the province can respond to market changes.

Opponents' View#

• Gives the Minister broad powers to set targets and force utilities to sign PPAs, which critics say could politicize decisions and affect power costs.
• Allows entry orders and expropriation if landowners refuse access, raising concerns about property rights and community impacts, especially in rural areas.
• Enables authorization of fracking and disposal wells by regulation, which some view as opening the door to environmental and seismic risks.
• Lets government reduce or exempt levies, and accept payments “in kind,” which critics say could weaken expected public revenues or reduce transparency.
• Cancels old petroleum licences without compensation (with limited exceptions), which may be seen as unfair to existing rights holders and could invite disputes.