Renewable Fuels Regulations (SOR/2010-189)

Marginal note:Opting in notice

• 3 (1) Despite section 2, these Regulations apply to a primary supplier, or a producer or importer of renewable fuel, who opts-in by sending a written notice to the Minister requesting that these Regulations are to apply to them. These Regulations so apply as of a day that is specified in the notice, which day must be at least one day after the day on which the notice is sent.

• Marginal note:Information

  (2) The opt-in notice must contain the information set out in Schedule 1 or 6, as the case may be.

• Marginal note:Rescinding opt-in notice

  (3) The primary supplier, or the producer or importer, as the case may be, may rescind the opt-in notice by fulfilling the requirements described in paragraphs 11(3)(a) to (c).

Measurement of volumes

Marginal note:Requirements

• 4 (1) Subject to subsections (2) and (3), any volume that a person is required to record under these Regulations must be determined

  • (a) by one or more measurement devices that comply with the Weights and Measures Act and the regulations made under that Act; or

  • (b) in accordance with a measurement standard or method that is appropriate for that determination and is cited in the American Petroleum Institute’s Manual of Petroleum Measurement Standards.

• Marginal note:Requirements — transitory rule

  (2) A person may, for the 180 days after the coming into force of this section, use a measurement standard or method that deviates from one referred to in paragraph 1(b), if the person describes that deviation in the report on measurement methods sent under section 35.

• Marginal note:Non-application of subsection (1)

  (3) If there is no measurement device, standard or method referred to in subsection (1) that would allow the person to determine the volume in accordance with that subsection, the person must record the volume as accurately determined by another person who is independent of them. They must record the following information obtained from the other person:

  • (a) the name and civic address of the other person;

  • (b) the volume, expressed in litres, as determined by the other person and the type of fuel or biocrude that the volume comprises;

  • (c) the date on which and the location where the determination was made;

  • (d) the measurement device, standard or method used to determine the volume; and

  • (e) the type of renewable fuel in the volume, if any, and the volume of that renewable fuel, expressed in litres.

• Marginal note:Volumetric correction

  (4) A volume referred to in subsection (1) must be corrected to a temperature of 15°C and, in the case of a volume of biocrude, by subtracting the volume of water contained in the biocrude, if any. However, a person who imports a batch of fuel may correct the volume of the batch to 60°F, if the person records that they made the correction.

• Marginal note:Volumetric correction — transitional

  (5) Despite subsection (4), a volume referred to in paragraph (1)(b) or subsection (3) need not, for the 180 days after the coming into force of this section, be corrected to a temperature of 15°C or 60°F.

• Marginal note:When volume determined

  (6) If the volume of a batch of liquid petroleum fuel is to be measured under subsection (1) at a production facility at which it was produced, the volume must be determined as follows:

  • (a) if the batch is dispatched from a production facility that is owned by a primary supplier to another facility that is owned by the primary supplier in a series of railway cars through which the fuel flows

    • (i) on dispatch of the batch from the production facility, or

    • (ii) on receipt of the batch at that other facility;

  • (b) if the batch is dispensed into the fuel tank of a vehicle or other mobile equipment within the production facility

    • (i) on the batch being sent to a fuel dispensing device — or the storage tank that services the fuel dispensing device — within the production facility, or

    • (ii) on the batch being dispensed from that fuel dispensing device; and

  • (c) in any other case, on dispatch of the batch from the production facility.

• Marginal note:Cubic metres rather than litres

  (7) A volume that is to be recorded or reported

  • (a) under section 29 — if the volume is the volume of a batch referred to in subparagraph 29(e)(iii) or (iv) — or under paragraph 32(1)(d) or (2)(d) or any of subsections 32(4), (5) and (8) may be expressed in cubic metres to three decimal places, rather than in litres, if that unit is indicated in the record; and

  • (b) under section 29 — if the volume is a volume not referred to in subparagraph 29(e)(iii) or (iv) — or under any other provision of these Regulations, other than those referred to in paragraph (a), may be expressed in whole cubic metres or in cubic metres to one, two or three decimal places, rather than in litres, if that unit is indicated in the record or report.

• Marginal note:Rounding

  (8) A volume

  • (a) referred to in paragraph (7)(a) that is expressed in cubic metres, is to be rounded to the nearest thousandth of a cubic metre and, if the volume is equidistant between two one-thousandths of a cubic metre, to the higher of them; and

  • (b) referred to in paragraph (7)(b) that is expressed in whole cubic metres or in cubic metres to one, two or three decimal places, is to be rounded, as the case may be, to the nearest whole cubic metre or the nearest one-tenth, one-hundredth, or one-thousandth of a cubic metre and, if the volume is equidistant between two whole cubic metres or two one-tenths, one-hundredths or one-thousandths of a cubic metre, to the higher of them; and

  • (c) referred to in paragraph (7)(a) or (b) that is expressed in litres is to be rounded to the nearest litre and, if the volume is equidistant between two litres, to the higher of them.

• Marginal note:Rounding — percentages of volume

  (9) The percentage of a volume of renewable fuel that is determined for the purpose of the definition high-renewable-content fuel in subsection 1(1) or of subsection 17(1) is to be rounded to the nearest whole number percentage and, if the percentage is equidistant between two whole number percentages, to the nearest even whole number percentage.

PART 1Requirements Pertaining to Gasoline, Diesel Fuel and Heating Distillate Oil

Prescribed Quantities of Renewable Fuel

Marginal note:Gasoline pool

• 5 (1) For the purpose of section 139 of the Act, the quantity of renewable fuel, expressed as a volume in litres, calculated in accordance with subsection 8(1), must be at least 5% of the volume, expressed in litres, of a primary supplier’s gasoline pool for each gasoline compliance period.

• Marginal note:Distillate pool

  (2) For the purpose of section 139 of the Act, the quantity of renewable fuel, expressed as a volume in litres, calculated in accordance with subsection 8(2), must be at least 2% of the volume, expressed in litres, of a primary supplier’s distillate pool for each distillate compliance period.

Gasoline Pool and Distillate Pool

Marginal note:Gasoline pool

• 6 (1) A primary supplier’s gasoline pool for a gasoline compliance period is the total volume of the batches of gasoline that they

  • (a) produce at a production facility and, during the gasoline compliance period, either

    • (i) dispatch from the production facility, or

    • (ii) dispense into the fuel tank of a vehicle or other mobile equipment within the production facility; and

  • (b) import during the gasoline compliance period.

• Marginal note:Distillate pool

  (2) A primary supplier’s distillate pool for a distillate compliance period is the total volume of the batches of diesel fuel and heating distillate oil that they

  • (a) produce at a production facility and, during the distillate compliance period, either

    • (i) dispatch from the production facility, or

    • (ii) dispense into the fuel tank of a vehicle or other mobile equipment within the production facility; and

  • (b) import during the distillate compliance period.

• Marginal note:Batches produced from other batches

  (3) Despite subsections (1) and (2), if a primary supplier produces a batch of gasoline, diesel fuel or heating distillate oil at any of their production facilities from other batches of gasoline, diesel fuel or heating distillate oil, as the case may be, received at that production facility, only that portion of the volume of the batch that exceeds the volume of the other batches is counted for the determination of the total volume in their pool. The primary supplier must, under section 29, record this excess portion as if that excess portion were the batch mentioned under that section.

• Marginal note:Excluded volumes

  (4) Despite subsections (1) and (2), a primary supplier may, before carrying forward any compliance units under section 21 or 22, subtract from their gasoline pool or distillate pool, as the case may be, the volume of a batch, or of a portion of the batch, of fuel in their pool if they make, before the end of the trading period in respect of the compliance period, a record that establishes that the volume was a volume of one of the following types of fuel:

  • (a) gasoline, diesel fuel or heating distillate oil, as the case may be, sold for or delivered for use in aircraft;

  • (b) gasoline, diesel fuel or heating distillate oil, as the case may be, sold for or delivered for use in competition vehicles;

  • (c) gasoline, diesel fuel or heating distillate oil, as the case may be, sold for or delivered for use in scientific research;

  • (d) gasoline, diesel fuel or heating distillate oil, as the case may be, sold for or delivered for use as feedstock in the production of chemicals, other than fuels, in a chemical manufacturing facility;

  • (e) diesel fuel or heating distillate oil, as the case may be, sold for or delivered for use in military combat equipment;

  • (f) diesel fuel or heating distillate oil, as the case may be, represented as kerosene and sold for or delivered for use in unvented space heaters, wick-fed illuminating lamps, or flue-connected stoves and heaters;

  • (f.1) diesel fuel or heating distillate oil, as the case may be, sold for or delivered for use for space heating purposes;

  • (g) gasoline, diesel fuel or heating distillate oil, as the case may be, sold for or delivered for use in Newfoundland and Labrador, the Northwest Territories, Yukon, Nunavut and that part of Quebec that is north of latitude 60°N;

  • (h) on or before December 31, 2012, diesel fuel or heating distillate oil, as the case may be, sold for or delivered for use in Nova Scotia, New Brunswick, Prince Edward Island and that part of Quebec that is on or south of latitude 60°N;

  • (h.1) during the period that begins on January 1, 2013 and that ends on June 30, 2013, diesel fuel or heating distillate oil, as the case may be, sold for or delivered for use in Nova Scotia, New Brunswick and Prince Edward Island;

  • (i) gasoline, diesel fuel or heating distillate oil, as the case may be, for export; and

  • (j) gasoline, diesel fuel or heating distillate oil, as the case may be, in transit through Canada, from a place outside Canada to another place outside Canada.

• Marginal note:Exclusion of renewable fuel

  (5) Despite subsections (1) and (2), a primary supplier may subtract from their gasoline pool or distillate pool, as the case may be, a volume of renewable fuel that is in a batch of fuel in the pool or in an excess portion of a batch of fuel referred to in subsection (3) in the pool if they have a record that establishes that that volume is renewable fuel.

• Marginal note:Reduction for use of biocrude — gasoline

  (6) A primary supplier may subtract from their gasoline pool for a gasoline compliance period 20% of the volume, if any, of biocrude, other than triglyceride-derived biocrude, that they used as feedstock to produce liquid petroleum fuel during the gasoline compliance period.

• Marginal note:Reduction for use of biocrude — distillate

  (7) A primary supplier may subtract from their distillate pool for a distillate compliance period

  • (a) 20% of the volume, if any, of biocrude, other than triglyceride-derived biocrude, that they used as feedstock to produce liquid petroleum fuel during the distillate compliance period; and

  • (b) 85% of the volume, if any, of triglyceride-derived biocrude that they used as feedstock to produce liquid petroleum fuel during the distillate compliance period.

Use of Compliance Units

Marginal note:Representing renewable fuel

• 7 (1) Compliance units, which represent litres of renewable fuel, created under Part 2 are used to establish compliance with section 5.

• Marginal note:Use of compliance units

  (2) A compliance unit may only be used once to establish compliance with section 5 and only in respect of the compliance period during which it was created under any of sections 13 to 16 or into which it was carried forward or carried back under any of sections 21 to 24.

• Marginal note:Use of distillate compliance units for gasoline compliance

  (3) Distillate compliance units may be used to establish compliance with subsection 5(1) for a gasoline compliance period to the extent that they are assigned as the value for DtG_DG in subsection 8(1).

Volume of Renewable Fuel

Marginal note:Gasoline pool

• 8 (1) The volume of renewable fuel in a primary supplier’s gasoline pool for a gasoline compliance period is to be determined in accordance with the equation

  RF_G = Cre_G + Rec_G – Tr_G – Can_G + CF_G + CB_G + DtG_DG

  where

  RF_G

  is the volume, expressed in litres, of renewable fuel in their gasoline pool;

  Cre_G

  is the volume, expressed in litres, that is equal to the number of gasoline compliance units that they created during the gasoline compliance period;

  Rec_G

  is the volume, expressed in litres, that is equal to the number of gasoline compliance units, in respect of the gasoline compliance period, that they received in trade;

  Tr_G

  is the volume, expressed in litres, that is equal to the number of gasoline compliance units, in respect of the gasoline compliance period, that they transferred in trade to another primary supplier;

  Can_G

  is the volume, expressed in litres, that is equal to the number of gasoline compliance units, in respect of the gasoline compliance period, that they are required to cancel;

  CF_G

  is the volume, expressed in litres, that is equal to the number of gasoline compliance units that they carried forward into the gasoline compliance period;

  CB_G

  is the volume, expressed in litres, that is equal to the number of gasoline compliance units that they carried back into the gasoline compliance period, minus the volume, expressed in litres, that is equal to the number of gasoline compliance units that they carried back from the gasoline compliance period into the preceding gasoline compliance period; and

  DtG_DG

  is the volume, expressed in litres, that is equal to the number, if any, of distillate compliance units that they assign as the value for DtG_DG for the gasoline compliance period.

• Marginal note:Distillate pool

  (2) The volume of renewable fuel in a primary supplier’s distillate pool for a distillate compliance period is to be determined in accordance with the equation

  RF_D = Cre_D + Rec_D – Tr_D – Can_D + CF_D + CB_D – DtG_DD

  where

  RF_D

  is the volume, expressed in litres, of renewable fuel in their distillate pool;

  Cre_D

  is the volume, expressed in litres, that is equal to the number of distillate compliance units that they created during the distillate compliance period;

  Rec_D

  is the volume, expressed in litres, that is equal to the number of distillate compliance units, in respect of the distillate compliance period, that they received in trade;

  Tr_D

  is the volume, expressed in litres, that is equal to the number of distillate compliance units, in respect of the distillate compliance period, that they transferred in trade to another primary supplier;

  Can_D

  is the volume, expressed in litres, that is equal to the number of distillate compliance units, in respect of the distillate compliance period, that they are required to cancel;

  CF_D

  is the volume, expressed in litres, that is equal to the number of distillate compliance units that they carried forward into the distillate compliance period;

  CB_D

  is the volume, expressed in litres, that is equal to the number of distillate compliance units that they carried back into the distillate compliance period, minus the volume, expressed in litres, that is equal to the number of distillate compliance units that they carried back from the distillate compliance period into the preceding distillate compliance period; and

  DtG_DD

  is the volume, expressed in litres, that is equal to

  • (a) for distillate compliance periods other than the first and second ones, the value that they assigned for DtG_DG in subsection (1) for the gasoline compliance period that is the same period as the distillate compliance period,

  • (b) for the first distillate compliance period, the total of the values that they assigned for DtG_DG in subsection (1) for gasoline compliance periods that overlapped with the first distillate compliance period, and

  • (c) for the second distillate compliance period, the total of the values that they assigned for DtG_DG in subsection (1) for gasoline compliance periods that overlapped with the second distillate compliance period.