Model CEIP Bylaw

A draft bylaw template for municipalities establishing a Clean Energy Improvement Program under MGA Division 6.1.

DRAFT / MODEL ONLY

This model bylaw is provided as a starting template only. It must be reviewed and adapted by your municipality's legal counsel to ensure compliance with local requirements, existing bylaws, and current legislation. Deep Retrofit Capital does not provide legal advice. This document does not constitute a legal opinion or recommendation.

Model Bylaw Template

Bylaw No. [____]

The [Municipality Name] Clean Energy Improvement Program Bylaw

Preamble

WHEREAS the Government of Alberta enacted An Act to Enable Clean Energy Improvements (Bill 10, SA 2018, c 6), which amended the Municipal Government Act (RSA 2000, c.M-26) to add Division 6.1, authorizing municipalities to establish clean energy improvement programs;

AND WHEREAS the Clean Energy Improvements Regulation (Alta Reg 212/2018, as amended by Alta Reg 153/2020) establishes the framework for such programs;

AND WHEREAS the Council of [Municipality Name] considers it desirable to establish a clean energy improvement program to enable property owners within the municipality to finance eligible energy improvements through a property tax mechanism;

AND WHEREAS the Council of [Municipality Name] wishes to designate a ministerially-approved program administrator to administer the program on behalf of the municipality;

Part 1 -- Definitions

In this bylaw:

"Act"
means the Municipal Government Act, RSA 2000, c.M-26, as amended.
"CEIP"
means the Clean Energy Improvement Program established by this bylaw.
"CEIP Agreement"
means an agreement between the municipality, the program administrator, and a property owner for financing of eligible improvements on the property, as required by Division 6.1 of the Act and the Regulation.
"Council"
means the Council of [Municipality Name].
"Eligible Improvement"
means an improvement to real property that is intended to reduce energy consumption, reduce greenhouse gas emissions, improve energy efficiency, or support renewable energy generation, as prescribed by the Regulation and the eligible improvements list approved by the program administrator.
"Energy Improvement Tax"
means a tax imposed under Division 6.1 of the Act on a property that is the subject of a CEIP Agreement.
"Municipality"
means [Municipality Name].
"Program Administrator"
means the person designated under the Emissions Management and Climate Resilience Act to administer clean energy improvement programs, currently Deep Retrofit Capital Inc., as designated by Ministerial Order 16/2025.
"Property Owner"
means the registered owner(s) of real property within the municipality.
"Regulation"
means the Clean Energy Improvements Regulation, Alta Reg 212/2018, as amended.
"SPIN2"
means the Alberta Land Titles Spatial Information System used for registration of interests against property titles.

Part 2 -- Establishment of CEIP

2.1 The [Municipality Name] Clean Energy Improvement Program is hereby established under Division 6.1 of the Act.

2.2 The purpose of the CEIP is to enable property owners within the municipality to finance eligible improvements to their properties through an energy improvement tax mechanism, administered by a ministerially-designated program administrator.

Part 3 -- Program Administrator

3.1 Deep Retrofit Capital Inc., as designated by the Minister under Ministerial Order 16/2025, is designated as the program administrator for the CEIP.

3.2 The municipality is authorized to enter into an administration agreement with the program administrator on terms approved by Council.

3.3 In the event that the program administrator ceases to hold ministerial designation, Council may by resolution designate another ministerially-designated program administrator.

Part 4 -- Eligible Property Types

4.1 The following property types are eligible to participate in the CEIP:

  • Residential properties
  • Commercial properties
  • Farm properties
  • Non-Designated Industrial properties

4.2 Council may by resolution amend the list of eligible property types.

Part 5 -- Maximum Funding Amounts

5.1 The maximum funding amount per property under the CEIP is as follows:

Property Type Maximum Funding
Residential $50,000
Commercial $1,000,000
Farm $300,000
Non-Designated Industrial $1,000,000

5.2 Non-residential projects exceeding $1,000,000 require approval from the Minister and Council, as prescribed by the Regulation.

Part 6 -- Energy Improvement Tax

6.1 The municipality is authorized to impose an energy improvement tax on any property that is the subject of a CEIP Agreement, in accordance with Division 6.1 of the Act.

6.2 The energy improvement tax shall be collected through the municipality's existing property tax collection process and remitted to the program administrator in accordance with the administration agreement.

6.3 Repayment terms, interest rates, and payment schedules shall be as set out in each individual CEIP Agreement between the property owner, the municipality, and the program administrator.

Part 7 -- Administration Agreement

7.1 The municipality is authorized to enter into an administration agreement with the program administrator that sets out the terms and conditions for program operation, including but not limited to:

  • Roles and responsibilities of the municipality and the program administrator
  • Administration fees (not to exceed 5% of total capital cost)
  • Reporting obligations
  • Data sharing, privacy, and security requirements
  • Term and termination provisions
  • Transition and business continuity provisions

Part 8 -- General Provisions

8.1 All CEIP Agreements shall be registered on the property title through SPIN2 in accordance with the Regulation.

8.2 This bylaw comes into force on the date of final passage.

8.3 If any provision of this bylaw is found to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.

Read a first time this ____ day of ________, 20____

Read a second time this ____ day of ________, 20____

Read a third time and finally passed this ____ day of ________, 20____

Mayor / Reeve

Chief Administrative Officer / Municipal Secretary

Next Steps

This model bylaw is a starting point. To move forward with CEIP adoption:

  1. 1 Have your legal counsel review and adapt the model bylaw
  2. 2 Contact DRC to discuss the administration agreement
  3. 3 Present to council with DRC's fiscal impact analysis
  4. 4 Proceed through your municipality's bylaw adoption process