Finance / Natural Resources
REVISED / Financial assistance for low-income families and paper mills (07/07/06)
NB 880
July 6, 2007
FREDERICTON (CNB) - Finance Minister Victor Boudreau and Natural Resources Minister Donald Arseneault today announced that the New Brunswick government will provide temporary financial assistance for low-income families and paper mills to help them minimize the impact of rising electricity costs, and challenging market conditions.
The finance minister indicated that the Home Energy Assistance program, which provided financial assistance to low-income families, will be renewed. Application forms for the new program will be available on Sept. 1, 2007.
The Home Energy Assistance Program was a one-time payment of $100 designed to help families that had incomes of less than $25,000 in 2005 cope with high energy prices. This program ended June 30, 2007. The program will now be renewed for one more year and the income threshold increased to include families that had incomes up to $28,000 in 2006.
"We understand that the recent decision by the New Brunswick Energy and Utilities Board to grant NB Power the authority to increase its energy rates will have a greater impact on low-income families," Boudreau said. "That is why the government decided to step in and offer temporary assistance that will mitigate the higher cost of energy for low-income New Brunswickers.
"However, all New Brunswickers must understand that the high cost of energy is not a temporary situation and that the best, most economical, long-term solution is energy conservation."
With today's announcement, the government is also offering a new, High Energy Use Tax Rebate to paper mills over the next two years for additional electricity costs resulting from the power rate increase approved by the EUB for the period April 1, 2007 to March 31, 2008, and to offset financial and market pressures. This assistance will be provided through a rebate against provincial property taxes.
While pulp and paper mills are among the highest NB Power electricity consumers in the province, today's rebate is provided to paper mills only, and more specifically, is associated with the electricity consumed in the paper production process at these mills. The paper production process is the most electricity intensive stage of the entire process of making paper.
To be eligible for the rebate, the paper mills must be operating as of March 31, 2008, they must be producing at 85 per cent of their previous years output at a minimum, and they must not have any arrears in their property taxes. To receive the rebate in the second year, the mills must be operating as of March 31, 2009 and meet the same production criteria.
"Our government recognizes that the paper mills are currently going through a difficult period in terms of markets, and we hope that today's announcement of financial assistance, which amounts to an estimated $16 million over two years, will provide the industry a period of time to adjust and to maintain operations in the future," Arseneault said.
"We also hope that this financial assistance will have a positive impact on the province's cities and regions that depend greatly on these mills."
Today's announcement adds to a growing list of programs launched by the provincial government since the beginning of the year in order to assist those facing the heaviest burden from energy cost increases.
"Since January, our government has announced significant investments in program funding for New Brunswick's families, low-income earners and seniors, to help them cope with high energy prices," Boudreau said. "These programs are a winning approach that make New Brunswick a national leader in the delivery of energy efficiency programs. I would encourage people to visit our websites and learn about the many programs that will help them save time, money and energy."
07/07/06
EDITOR'S NOTE: Attached are explanatory notes on the provincial government's various assistance programs designed to address high home and commercial energy costs. MEDIA CONTACTS: Vicky Deschênes, communications, Finance, 506-453-2451; Wade Wilson, communications, Natural Resources, 506-453-2614.
Home Energy Assistance Program (Department of Finance)
- The Home Energy Assistance Program is a one-time payment of $100, which will help low-income families to cope with high energy prices.
- Application forms will be available on Sept. 1, 2007 at Service New Brunswick centres and online at http://www.gnb.ca/finance. The forms will also be available by mail from the Department of Finance, P.O. Box 3000, Centennial Building, Fredericton, NB, E3B 5G5.
- The deadline to apply for the rebate is JUNE 30, 2008.
- To be eligible, applicants must have had a total family income of less than $28,000 in 2006 and be residents of New Brunswick.
- Applicants must provide information on their total family income, and a copy of a recent electricity bill (after July 1, 2007). Only one payment per household (address) will be provided.
- The Department of Finance will process the applications and issue the benefit to qualifying applicants. In extraordinary circumstances, where family income has dropped below $28,000 for 2007 because of a loss of employment or other reasons, an applicant can still be eligible for a rebate.
- For more information, individuals can call 1-800-669-7070, Monday to Friday, 8:15 a.m. to 5 p.m.
Low-Income Seniors' Benefit Program (Department of Finance)
- The Low-Income Seniors' Benefit Program is an annual rebate of $200 issued by the Government of New Brunswick to eligible low-income seniors.
- The benefit doubled on April 1, 2007, from $100 to $200.
- Application forms for the 2007 Low-Income Seniors' Benefit will be available at Service New Brunswick centres and online at http://www.gnb.ca/finance. Completed applications can be returned to the Department of Finance, P.O. Box 3000, Centennial Building, Fredericton, N.B. E3B 5G5.
- To be eligible for the benefit, seniors must have been residents of New Brunswick on December 31, 2006 and received one of these federal benefits:
- The Guaranteed Income Supplement (65 years or older);
- The Allowance for Survivor Program (between 60-64 years old);
- The Allowance Program (between 60-64 years old).
- Where both spouses received the Guaranteed Income Supplement and resided in the same household, only one payment will be provided. Seniors who are eligible for the $200 Low-Income Seniors' Benefit have until November 30 to submit their application for 2007.
Enhanced Programs for Low-Income Families (Department of Family and Community Services)
Regular Fuel Supplement
- The supplement is designed to assist social assistance clients with winter heating costs from November to April of each year.
- To qualify, social assistance clients should have a mortgage or a rental payment of over $100 per month.
Income Supplement Benefit
- The monthly benefit is provided to social assistance clients with at least one dependent under 19 years of age, and who pay more than 30 per cent of their income toward rent.
Housing Heating Allowance
- The monthly allowance is provided to households receiving a rent subsidy, or individuals living in non-profit housing, and is determined by the size of the unit.
- Residents use only 30 per cent of their household income to pay rent. In situations where heating costs are not included in the rent, a heating allowance is provided.
Emergency Fuel Supplement
- The supplement is provided to relieve some of the hardship caused by heating costs. The once-per-calendar-year benefit of up to $270 is provided to qualifying families.
- This supplement has been expanded to include social assistance recipients who are not eligible for the Regular Fuel Supplement, Income Supplement, or a heating allowance.
Energy Efficiency Retrofit Program
- The Energy Efficiency Retrofit Program, a program currently offered to low-income households, is delivered through a partnership of the Department of Family and Community Services and Efficiency NB, and is available to both homeowners and owners of residential rental properties occupied by low-income tenants.
- The program provides financial assistance in the form of a non-repayable grant for energy-efficiency upgrades such as energy-efficient heating systems, air sealing, insulation, ventilation systems, and, in some instances, windows and doors.
- Efficiency NB will provide energy audits on homes, at no cost to eligible homeowners.
Programs for Home Energy Efficiency (Efficiency NB)
The Expanded Existing Homes Upgrades Program offers homeowners a grant of up to $2000 or an interest free loan of up to $10,000 to make energy efficient improvements to their home.
The Multiple Unit Residential Building Program (MURB) provides financial assistance to small apartment owners who want to make their buildings more energy-efficient. This provincial program is the first of its kind in Canada.
The Energy Efficiency Retrofit Program for low-income households provides free home energy evaluations and a provincial grant of up to $4,500 towards energy-efficient upgrades to individual homes and $1,500 per unit for low-income apartments and rooming houses.
The New Homes Program provides financial assistance to support the construction of new homes built to the EnerGuide 80 or R2000 certification. Additional incentives are available under this program for homeowners who choose non-electric central heating options as well as an Energy Star lighting and appliance package.
Financial Assistance Program for Small and Medium Businesses (Efficiency NB)
The Bright Ideas program provides premium energy-efficient lighting products at the same cost or less than standard lighting products by providing direct incentives to electrical distributors.
For existing buildings, the Energy Smart - Commercial Buildings Retrofit Incentive Program offers commercial building owners financial incentives of up to $2,000 towards an evaluation to determine the range of potential energy efficiency upgrades, and an incentive up to a maximum of $50,000 towards energy retrofit project costs.
With the Start Smart - New Commercial Buildings Incentive Program, financial incentives of up to $60,000 are provided to offset the additional costs associated with designing sustainable high-efficiency buildings.
Industrial Energy Efficiency Program (Efficiency NB)
- This program allows large businesses to implement custom solutions to match the best energy efficiency opportunities of individual companies.
- Financial incentives will focus on, but are not be restricted to: opportunity identification; improved building capacity at the plant level by providing plant specific training and support for improved technical and management best practices; business case development for energy efficiency projects; sub-metering; and on a project by project basis, additional funding to help strategic projects meet company return on investment targets.
- Companies participating in this industrial program, which is managed by Efficiency NB, may also be eligible for financial assistance such as loans, loan guarantees, and/or strategic assistance from Business New Brunswick.
07/07/06