Summary#
Bill 41 would change New Brunswick’s Local Governance Act to give local governments more ways to develop and manage clean electricity projects. It would allow them to create or invest in corporations, work with other governments and Indigenous councils, and sell electricity or related environmental attributes (such as renewable energy credits). The bill would not allow local governments to distribute the electricity directly to residents as a public service.
- Local governments could build, own, or operate clean energy generation facilities.
- They could use the electricity themselves, sell it under the Electricity Act, or sell its environmental attributes.
- They could create or invest in corporations for these projects. These corporations could operate for profit.
- Profits paid to a local government would have to go into its general operating fund and be used for municipal purposes.
- Local governments could share costs and ownership with other local governments, Indigenous councils, the provincial government, or other parties.
- Regional service commissions could take on some project powers, including certain borrowing powers, if the local governments and commission agree.
The material describes Bill 41 as a first-reading bill introduced on May 12, 2026. No amendment or later version is provided, so it should not be treated as law.
What it means for you#
- Residents: The bill does not allow a local government to distribute project electricity directly to residents or provide it as a local utility service. Any effect on residents would likely come through municipal finances, local projects, or council decisions.
- Local governments: A municipality or other local government could develop a clean energy facility, buy land for it, and make agreements to share construction and operating costs.
- Local government councils: A council would have to pass a resolution stating its intention before taking steps under the new clean-energy powers.
- Regional service commissions: A local government could delegate some powers to a regional service commission through a by-law. The commission would have to agree to the delegation.
- Borrowing: A regional service commission could borrow for construction if that power is delegated. The participating local governments would act as guarantors under the borrowing rules.
- Businesses and partners: Local governments could work with private parties, the provincial government, other local governments, or Indigenous councils. The bill does not set out the terms of those agreements.
- Taxpayers and residents: The bill could expose local governments to project costs or financial risks, depending on the projects they approve. The bill does not set limits on the size or number of projects.
Expenses#
No publicly available information.
- The bill does not provide a government spending estimate or fiscal note.
- Local governments could face costs for land, construction, operations, staffing, financing, and legal or technical services.
- Local governments could share costs with project partners or use borrowing for some expenses.
- A clean energy corporation could earn profits from selling electricity or environmental attributes, but the bill does not predict whether projects would be profitable.
- A local government operating a facility would have to prepare a budget for its operations. That budget would have to balance each year or over a four-year period.
- The bill could create financial risk for local governments that guarantee borrowing by a regional service commission.
Proponents' View#
No specific supporter statements are included in the supplied material.
Possible arguments in favour, based on the bill’s design, include:
- The bill could give local governments more tools to develop clean electricity projects.
- Allowing joint projects could help local governments share construction and operating costs.
- Corporations could give local governments a separate structure for building or operating energy facilities.
- Selling electricity or environmental attributes could create revenue for municipal purposes.
- Regional service commissions could allow several local governments to manage a project together.
- Requiring council resolutions and public reporting of corporate profits could provide some local oversight and financial information.
Opponents' View#
No specific critic statements are included in the supplied material.
Possible concerns, based on the bill’s design, include:
- Local governments could take on construction costs, operating costs, debt, or guarantees for projects that may not be profitable.
- The bill does not provide financial limits, project approval standards, or detailed rules for managing financial risk.
- Allowing corporations to operate for profit could make it harder for residents to see or assess the full financial position of a project.
- The bill allows local governments to sell electricity and environmental attributes but does not explain how prices, contracts, or public reporting would be handled.
- The bill does not clearly explain how residents would participate in decisions about large projects or land purchases beyond council action.
- The bill leaves important details about partnerships with private parties, Indigenous councils, and other governments to agreements and future rules.