Greenhouse Gas Pollution Pricing Act

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.