Greenhouse Gas Pollution Pricing Act (S.C. 2018, c. 12, s. 186)

SUBDIVISION CExemption Certificate

Marginal note:Exemption certificate

• 36 (1) If fuel is delivered to a person by another person, an exemption certificate applies in respect of the delivery, for the purposes of this Part, only if

  • (a) the certificate is made in prescribed form containing prescribed information;

  • (b) the certificate includes a declaration by the person

    • (i) that the person is a registered distributor in respect of that type of fuel,

    • (ii) that the person is a registered specified air carrier in respect of that type of fuel,

    • (iii) that the person is a registered specified marine carrier in respect of that type of fuel,

    • (iv) that the person is a registered specified rail carrier in respect of that type of fuel,

    • (v) that the person is a registered emitter and that the fuel is for use at a covered facility of the person,

    • (vi) that the person is a registered user in respect of that type of fuel and that the fuel is for use in a non-covered activity,

    • (vii) that the person is a farmer, that the location at which the fuel is delivered is a farm, that the fuel is for use exclusively in the operation of eligible farming machinery or of an auxiliary component of eligible farming machinery and that all or substantially all of the fuel is for use in the course of eligible farming activities,

    • (vii.1) that the person is a fisher, that the fuel is for use exclusively in the operation of an eligible fishing vessel and that all or substantially all of the fuel is for use in the course of eligible fishing activities, or

    • (viii) that the person is a prescribed person, a person of a prescribed class or a person meeting prescribed conditions and that prescribed circumstances exist;

  • (c) the person provides, in a manner satisfactory to the Minister, the certificate in respect of the delivery to the other person; and

  • (d) the other person retains the certificate and indicates to the person, in a manner satisfactory to the Minister, that the delivery is subject to the certificate.

• Marginal note:Exemption certificate does not apply

  (1.1) Despite subsection (1), if fuel is delivered to a fisher in a listed province that is not prescribed for the purposes of subparagraph 17(2)(a)(iii.1), an exemption certificate does not apply in respect of the delivery.

• Marginal note:Exemption certificate — regulations

  (2) Despite subsection (1), if prescribed circumstances exist or prescribed conditions are met, an exemption certificate applies, for the purposes of this Part, in respect of a delivery of fuel in accordance with prescribed rules.

Marginal note:Charge — false declaration

• 37 (1) If a particular person delivers fuel in a listed province to another person at a particular time, if an exemption certificate applies in respect of the delivery in accordance with subsection 36(1) and if the declaration referred to in paragraph 36(1)(b) is, at the particular time, false, the following rules apply:

  • (a) the other person must pay to Her Majesty in right of Canada a charge in respect of the fuel and the listed province in the amount determined under section 40;

  • (b) the other person is liable to pay, in addition to any other penalty under this Part, a penalty equal to 25% of the amount of the charge under paragraph (a) payable in respect of the fuel; and

  • (c) if the particular person knows, or ought to have known, that the declaration is, at the particular time, false, the particular person and the other person are jointly and severally, or solidarily, liable for the payment of the charge in respect of the fuel and the listed province under paragraph (a), the penalty under paragraph (b) and any related interest and penalties.

• Marginal note:When charge payable

  (2) The charge under subsection (1) becomes payable at the particular time referred to in that subsection.

SUBDIVISION DApplication of Charge in Special Circumstances

Marginal note:Charge — fuel held on adjustment day

• 38 (1) Subject to subsection (3), every person that holds a quantity of a type of fuel in a listed province at the beginning of an adjustment day must pay to Her Majesty in right of Canada a charge in respect of the fuel and the listed province in the amount determined by the formula

  A – B

  where

  A

  is the amount that would be the amount of a charge in respect of the quantity of the fuel and the listed province determined under section 40 if that charge had become payable on the adjustment day; and

  B

  is

  • (a) if the adjustment day is commencement day, zero, and

  • (b) in any other case, the amount that would be the amount of a charge in respect of the quantity of the fuel and the listed province determined under section 40 if that charge had become payable on the day before the adjustment day.

• Marginal note:Exception

  (2) Subsection (1) does not apply to a quantity of fuel held by a person if the fuel was delivered to the person by a registered distributor in respect of that type of fuel and

  • (a) the person is a registered emitter and the fuel is held at, or is in transit to, a covered facility of the person;

  • (b) the person is a registered user in respect of that type of fuel and an exemption certificate applies in respect of the delivery in accordance with section 36;

  • (c) the person is a farmer, the fuel is a qualifying farming fuel, and an exemption certificate applies in respect of the delivery in accordance with section 36; or

  • (d) the person is a fisher, the fuel is a qualifying fishing fuel, and an exemption certificate applies in respect of the delivery in accordance with section 36.

• Marginal note:When charge payable

  (3) The charge under subsection (1) becomes payable on the adjustment day.

• Marginal note:Charge not payable

  (4) A charge under subsection (1) in respect of a quantity of a type of fuel held at the beginning of an adjustment day by a person in a listed province is not payable

  • (a) if the person is

    • (i) a registered distributor in respect of that type of fuel,

    • (ii) a registered specified air carrier in respect of that type of fuel,

    • (iii) a registered specified marine carrier in respect of that type of fuel, or

    • (iv) a registered specified rail carrier in respect of that type of fuel;

  • (b) the fuel is, in accordance with the Ships’ Stores Regulations, designated as ships’ stores for use on board a conveyance of a class prescribed under those regulations; or

  • (c) the amount of the charge is less than $1,000.

• Marginal note:Requirement to determine quantity of fuel

  (5) Every person that holds fuel (other than in a supply tank of a vehicle) in a listed province at the beginning of an adjustment day and that is, or that can reasonably be expected to be, liable to pay a charge under this section in respect of the fuel and the listed province must determine the quantity of fuel of that type held in the listed province by that person at the beginning of the adjustment day.

Marginal note:Charge — ceasing to be registered

• 39 (1) If a person holds, at a particular time, a quantity of a type of fuel in a listed province, if the person was immediately before the particular time registered as a distributor, specified air carrier, specified marine carrier or specified rail carrier in respect of that type of fuel and if the Minister cancels that registration at the particular time, the person must pay to Her Majesty in right of Canada a charge in respect of the fuel and the listed province in the amount determined under section 40, unless the Minister also registers the person at the particular time as

  • (a) a distributor in respect of that type of fuel;

  • (b) a specified air carrier in respect of that type of fuel;

  • (c) a specified marine carrier in respect of that type of fuel; or

  • (d) a specified rail carrier in respect of that type of fuel.

• Marginal note:Exception

  (2) Subsection (1) does not apply to fuel that is held by the person referred to in that subsection if that person is a registered emitter at the particular time but only to the extent that the fuel is, at the particular time, held by the person at, or is in transit to, a covered facility of the person.

• Marginal note:When charge payable

  (3) The charge under subsection (1) becomes payable at the particular time referred to in that subsection.

SUBDIVISION EAmount of Charge

Marginal note:Charge amount — fuel

• 40 (1) The amount of a charge payable under this Division (other than section 38) in respect of fuel and a listed province is equal to the amount determined by the formula

  A × B

  where

  A

  is

  • (a) if the charge becomes payable under section 34, the net fuel quantity,

  • (b) if the charge becomes payable under section 35, the annual net fuel adjustment, or

  • (c) in any other case, the quantity of the fuel in respect of which the charge becomes payable; and

  B

  is

  • (a) if the charge becomes payable under section 35, the rate in respect of fuel of that type for the listed province applicable on December 31 of the calendar year that precedes the calendar year that includes the time at which the charge becomes payable, and

  • (b) in any other case, the rate in respect of fuel of that type for the listed province applicable at the time the charge becomes payable.

• Marginal note:Charge amount — mixture

  (2) Despite subsection (1), if a manner is prescribed in respect of a mixture that is deemed to be fuel of a prescribed type under subsection 16(2), the amount of a charge payable under this Division in respect of such a mixture is equal to the amount determined in prescribed manner.

• Marginal note:Charge amount — regulations

  (3) Despite subsection (1), if prescribed circumstances exist or prescribed conditions are met, the amount of a charge payable under this Division in respect of fuel and a listed province is equal to the amount determined in prescribed manner.

Marginal note:Charge amount — combustible waste

• 41 (1) The amount of a charge payable under section 25 in respect of combustible waste and a listed province is equal to the amount determined by the formula

  A × B

  where

  A

  is the quantity, expressed as a weight measured in tonnes, of the combustible waste; and

  B

  is the rate in respect of combustible waste for the listed province applicable at the time the charge becomes payable.

• Marginal note:Charge amount — regulations

  (2) Despite subsection (1), if prescribed circumstances exist or prescribed conditions are met, the amount of a charge payable in respect of combustible waste and a listed province is equal to the amount determined in prescribed manner.

DIVISION 3Rebates

Marginal note:Statutory recovery rights

42 Except as specifically provided under this Part, the Customs Act or the Financial Administration Act, no person has a right to recover any money paid to Her Majesty in right of Canada as or on account of, or that has been taken into account by Her Majesty in right of Canada as, an amount payable under this Part.

Marginal note:Rebate — fuel removed from listed province

• 43 (1) If at a particular time a person that is a registered emitter or is, in respect of that type of fuel, a registered user, a registered importer, registered air carrier, registered marine carrier or registered rail carrier removes a quantity of fuel of that type from a listed province, the Minister must pay to the person a rebate in respect of the quantity of fuel, the listed province and the reporting period of the person that includes the particular time if, at an earlier time in a particular reporting period,

  • (a) the person brought the quantity of fuel into the listed province from a place in Canada or imported the fuel at a location in the listed province, a charge under section 19 or 20 was payable by the person at the earlier time in respect of the fuel and the listed province and

    • (i) if that charge was payable under section 19 or subsection 20(2), that charge was taken into account in the determination of the net charge for the particular reporting period of the person, or

    • (ii) if that charge was payable under subsection 20(3), that charge was paid in accordance with subsection 20(4);

  • (b) the person removed the quantity of fuel from a covered facility of the person in the listed province and a charge under subsection 22(1) or (2)

    • (i) became payable by the person at the earlier time in respect of the quantity of fuel and the listed province, and

    • (ii) is taken into account in the determination of the net charge for the particular reporting period of the person; or

  • (c) the quantity of fuel was held by the person at, or the quantity of fuel was in transit to, a facility or property of the person in the listed province that ceased, at the earlier time, to be a covered facility of the person and a charge under subsection 22(4) or (5)

    • (i) became payable by the person at the earlier time in respect of the quantity of fuel and the listed province, and

    • (ii) is taken into account in the determination of the net charge for the particular reporting period of the person.

• Marginal note:Amount of rebate

  (2) The amount of the rebate under subsection (1) is equal to the amount of the charge referred to in whichever of paragraphs (1)(a) to (c) applies.

Marginal note:Rebate — fuel brought to covered facility

• 44 (1) If at a particular time a person is a registered emitter and brings a quantity of fuel to a covered facility of the person in a listed province for use at a covered facility of the person in the listed province, the Minister must pay to the person a rebate in respect of the fuel, the listed province and the reporting period of the person that includes the particular time if, at an earlier time in a particular reporting period,

  • (a) the person brought the quantity of fuel into the listed province from a place in Canada or imported the fuel at a location in the listed province, a charge under section 19 or 20 was payable by the person at the earlier time in respect of the quantity of fuel and the listed province and

    • (i) if that charge was payable under section 19 or subsection 20(2), that charge was taken into account in the determination of the net charge for the particular reporting period of the person, or

    • (ii) if that charge was payable under subsection 20(3), the charge was paid in accordance with subsection 20(4);

  • (b) the person removed the quantity of fuel from a covered facility of the person in the listed province, a charge under subsection 22(1) or (2) was payable by the person at the earlier time in respect of the quantity of fuel and the listed province and that charge was taken into account in the determination of the net charge for the particular reporting period of the person; or

  • (c) the quantity of fuel was held by the person at, or the quantity of fuel was in transit to, a facility or property of the person in the listed province that ceased, at the earlier time, to be a covered facility of the person and a charge under subsection 22(4) or (5)

    • (i) became payable by the person at the earlier time in respect of the quantity of fuel and the listed province, and

    • (ii) is taken into account in the determination of the net charge for the particular reporting period of the person.

• Marginal note:Amount of rebate

  (2) The amount of the rebate under subsection (1) is equal to the amount of the charge referred to in whichever of paragraphs (1)(a) to (c) applies.