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Renewable Fuels Regulations (SOR/2010-189)

Regulations are current to 2023-01-25 and last amended on 2022-06-21. Previous Versions

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

Registration as a Primary Supplier

Marginal note:Registration

  •  (1) A primary supplier must register by sending to the Minister a registration report that contains the information set out in Schedule 1 at least one day before, during any period of 12 consecutive months in a gasoline compliance period, they produce without any importation or import without any production, or produce and import in total, their 400th m3

    • (a) of gasoline; or

    • (b) of diesel fuel or heating distillate oil, or any combination of them.

  • Marginal note:Change of information

    (2) If the information provided in the registration report — other than the information referred to in paragraph 1(b) or (c) of Schedule 1 — changes, the primary supplier must send a notice to the Minister that provides the updated information no later than five days after the change.

  • SOR/2011-143, s. 5

PART 2Compliance Unit Trading System

Participants

Marginal note:Who are participants

 Participants in the trading system are

  • (a) primary suppliers; and

  • (b) elective participants.

Marginal note:Elective participants

  •  (1) An elective participant is a person other than a primary supplier who

    • (a) does one or more of the following:

      • (i) blends, in Canada, renewable fuel with liquid petroleum fuel,

      • (ii) produces, in Canada, a liquid petroleum fuel — other than gasoline, diesel fuel and heating distillate oil — by using biocrude as a feedstock,

      • (iii) imports into Canada a liquid petroleum fuel — other than gasoline, diesel fuel and heating distillate oil — that has renewable fuel content,

      • (iv) sells, in Canada, neat renewable fuel to a neat renewable fuel consumer for use as fuel in a combustion device, and

      • (v) uses, as fuel in a combustion device in Canada, neat renewable fuel that they produced or imported; and

    • (b) registers by sending to the Minister a registration report that contains the information set out in Schedule 2 at least one day before they first create a compliance unit.

  • Marginal note:Change of information

    (2) If the information provided in the registration report — other than the information referred to in paragraph 1(b) or (c) of Schedule 2 — changes, the elective participant must send a notice to the Minister that provides the updated information no later than five days after the change.

  • Marginal note:End of participation

    (3) An elective participant may end their participation in the trading system if they

    • (a) send to the Minister a notice stating that they will end their participation as of a specified date;

    • (b) provide any report or notice that is required by these Regulations; and

    • (c) cancel, as of that specified date, all their compliance units.

  • Marginal note:Becoming a primary supplier

    (4) Despite subsection (3), when an elective participant becomes a primary supplier

    • (a) they cease to be an elective participant; and

    • (b) they retain their compliance units.

  • SOR/2011-143, s. 6
  • SOR/2013-187, s. 4

Creation of Compliance Units

Marginal note:Participants who may create

  •  (1) Only the following participants may create a compliance unit:

    • (a) the owner of the blended fuel on its blending referred to in section 13;

    • (b) the importer of the batch referred to in section14;

    • (c) the user of biocrude as feedstock to produce the fuel referred to in section 15; or

    • (d) the seller of the neat renewable fuel, or the participant, referred to in section 16.

  • Marginal note:Single creator

    (2) If there is more than one person described in any of paragraphs (1)(a) to (d), the creator of the compliance unit is the participant who, under a written agreement between all those persons, is designated to be the creator of the compliance unit. Without that agreement, no compliance unit is created.

Marginal note:Blending in Canada — gasoline compliance units

  •  (1) Subject to subsection (3), a single gasoline compliance unit is created for each litre of renewable fuel on its blending in Canada with a batch of liquid petroleum fuel other than diesel fuel or heating distillate oil.

  • Marginal note:Blending in Canada — distillate compliance units

    (2) Subject to subsection (3), a single distillate compliance unit is created for each litre of renewable fuel on its blending in Canada with a batch of diesel fuel or heating distillate oil.

  • Marginal note:Confirmation of creation

    (3) The creation of a compliance unit under subsection (1) or (2) is confirmed on the making of a record

    • (a) of the information set out in subsection 32(1) related to the resulting blended batch and, if the resulting blended batch is high-renewable-content fuel, subsection 32(3); and

    • (b) referred to in section 31 of its creation.

  • Marginal note:No recording, no creation

    (4) Without that recording, the compliance unit is deemed never to have been created.

Marginal note:Importation — gasoline compliance units

  •  (1) Subject to subsection (3), a single gasoline compliance unit is created for each litre of renewable fuel that is contained in a batch of liquid petroleum fuel, other than diesel fuel or heating distillate oil, on its importation into Canada.

  • Marginal note:Importation — distillate compliance units

    (2) Subject to subsection (3), a single distillate compliance unit is created for each litre of renewable fuel that is contained in a batch of diesel fuel, or heating distillate oil, on its importation into Canada.

  • Marginal note:Confirmation of creation

    (3) The creation of a compliance unit under subsection (1) or (2) is confirmed on the making of a record

    • (a) of the information set out in subsection 32(2) related to the imported batch and, if the imported batch is high-renewable-content fuel, subsection 32(3); and

    • (b) referred to in section 31 of its creation.

  • Marginal note:No recording, no creation

    (4) Without that recording, the compliance unit is deemed never to have been created.

Marginal note:Triglyceride-derived biocrude

  •  (1) Subject to subsection (3), 17 distillate compliance units are created for each 20 litres of triglyceride-derived biocrude on its use as feedstock to produce liquid petroleum fuel in Canada.

  • Marginal note:Other biocrude

    (2) Subject to subsection (3), a single gasoline compliance unit and a single distillate compliance unit are created for each five litres of biocrude, other than triglyceride-derived biocrude, on its use as feedstock to produce liquid petroleum fuel in Canada.

  • Marginal note:Confirmation of creation

    (3) The creation of a compliance unit under subsection (1) or (2) is confirmed on the making of a record

    • (a) of the information set out in subsection 32(4) related to the use of biocrude as feedstock; and

    • (b) referred to in section 31 of its creation.

  • Marginal note:No recording, no creation

    (4) Without that recording, the compliance unit is deemed never to have been created.

Marginal note:Neat renewable fuel — gasoline compliance units

  •  (1) Subject to subsection (3), a single gasoline compliance unit is created for each litre of a batch of neat renewable fuel on its

    • (a) sale in Canada to a neat renewable fuel consumer for use as fuel in a combustion device other than a diesel engine or domestic-type burner; or

    • (b) use in Canada as fuel in a combustion device other than a diesel engine or domestic-type burner by a participant who produced or imported the fuel.

  • Marginal note:Neat renewable fuel — distillate compliance units

    (2) Subject to subsection (3), a single distillate compliance unit is created for each litre of a batch of neat renewable fuel on its

    • (a) sale in Canada to a neat renewable fuel consumer for use as fuel in a diesel engine or domestic-type burner; or

    • (b) use in Canada as fuel in a diesel engine or domestic-type burner by a participant who produced or imported the fuel.

  • Marginal note:Confirmation of creation

    (3) The creation of a compliance unit under subsection (1) or (2) is confirmed on the making of a record

    • (a) of the information set out in subsection 32(5) related to the sale for use, or the use, as fuel in a combustion device of the batch of neat renewable fuel, as the case may be; and

    • (b) referred to in section 31 of its creation.

  • Marginal note:No recording, no creation

    (4) Without that recording, the compliance unit is deemed never to have been created.

Marginal note:Limitation

  •  (1) Despite sections 13 to 15, no compliance unit may be created in respect of

    • (a) a resulting blended batch or imported batch of gasoline, or a batch of gasoline produced from biocrude used as feedstock, if the volume of renewable fuel in the batch comprises more than 85% of the total volume of the batch;

    • (b) a resulting blended batch or imported batch of liquid petroleum fuel other than gasoline, or a batch of liquid petroleum fuel other than gasoline produced from biocrude used as feedstock, if the volume of renewable fuel in the batch comprises more than 80% of the total volume of the batch; and

    • (c) a batch of renewable fuel that results from blending.

  • Marginal note:Limitation — municipal solid waste

    (2) Despite sections 13 to 16, no compliance unit may be created in respect of renewable fuel, or biocrude, that was in whole or in part produced from municipal solid waste unless the participant has records that demonstrate that the municipal solid waste

    • (a) has a biogenic carbon content, based on random sampling done at least once every three years, of greater than 50% of the total carbon content, by mass; and

    • (b) is sorted and pre-processed at a facility that has removed all but trace quantities of any pesticides, paints, petroleum oils, solvents, sludges that contain heavy metals, material from tires or radioactive, corrosive, explosive or infectious materials.

Ownership of Compliance Units

Marginal note:Ownership of compliance units

  •  (1) On creation, a compliance unit is owned by the participant who created it.

  • Marginal note:Single owner

    (2) At any given time, a compliance unit may only have a single owner.

Marginal note:Maximum number of gasoline compliance units

  •  (1) Subject to subsection (3), the number of gasoline compliance units in respect of a gasoline compliance period that a primary supplier may own at the end of each month during the gasoline compliance period must not exceed the greater of

    • (a) six multiplied by the number of litres in the primary supplier’s gasoline pool at the end of that month, determined as if the compliance period ended at the end of that month, and

    • (b) 0.01 multiplied by the number of litres in the primary supplier’s gasoline pool for the preceding gasoline compliance period.

  • Marginal note:Maximum number of distillate compliance units

    (2) Subject to subsection (3), the number of distillate compliance units in respect of a distillate compliance period that a primary supplier may own at the end of each month during the distillate compliance period must not exceed the greater of

    • (a) six multiplied by the number of litres in the primary supplier’s distillate pool at the end of that month, determined as if the compliance period ended at the end of that month, and

    • (b) 0.004 multiplied by the number of litres

      • (i) in the case of the first distillate compliance period, in the primary supplier’s distillate pool determined using the pre-distillate compliance period as if it were the distillate compliance period in question, and

      • (ii) in any other case, in the primary supplier’s distillate pool for the preceding distillate compliance period.

  • Marginal note:Number of compliance units deemed not included

    (3) For the purpose of subsection (1) or (2), the number of gasoline compliance units or distillate compliance units, as the case may be, that a primary supplier owns at the end of a month is deemed not to include the number of those compliance units, in respect of the compliance period in question, that, during the next month, they transferred in trade that were in excess of those that they received in trade.

  • Marginal note:Subsection 6(4) read out

    (4) For the purpose of the determination referred to in subsection (1) or (2), section 6 is to be read without reference to its subsection (4).

  • SOR/2013-187, s. 5

Trading of Compliance Units

Marginal note:To primary suppliers

  •  (1) A compliance unit may only be transferred in trade to a primary supplier.

  • Marginal note:When trading permitted

    (2) Only a compliance unit created during, or carried forward into, a compliance period may be transferred in trade, and only if the trade occurs during the trading period in respect of the compliance period.

Carry Forward of Compliance Units

Marginal note:Carry forward — primary suppliers (gasoline)

  •  (1) Before the end of the trading period in respect of a gasoline compliance period, a primary supplier may carry forward their surplus gasoline compliance units — up to a maximum of 0.01 multiplied by the number of litres in their gasoline pool for that gasoline compliance period — into the next gasoline compliance period.

  • Marginal note:Surplus gasoline compliance units

    (2) The number of surplus gasoline compliance units referred to in subsection (1) is the number that equals the number of litres determined according to the following formula:

    RFG – (0.05 × PG)

    where

    RFG
    is the volume, expressed in litres, that the primary supplier determined for RFG in accordance with subsection 8(1) for that gasoline compliance period; and
    PG
    is the number of litres in the primary supplier’s gasoline pool for that gasoline compliance period, as determined in accordance with section 6.
  • SOR/2011-143, s. 7(E)

Marginal note:Carry forward — primary suppliers (distillate)

  •  (1) Before the end of the trading period in respect of a distillate compliance period, a primary supplier may carry forward their surplus distillate compliance units — up to a maximum of 0.004 multiplied by the number of litres in their distillate pool for that distillate compliance period — into the next distillate compliance period.

  • Marginal note:Surplus distillate compliance units

    (2) The number of surplus distillate compliance units referred to in subsection (1) is the number that equals the number of litres determined according to the following formula:

    RFD – (0.02 × PD)

    where

    RFD
    is the volume, expressed in litres, that the primary supplier determined for RFD in accordance with subsection 8(2) for that distillate compliance period; and
    PD
    is the number of litres in the primary supplier’s distillate pool for that distillate compliance period, as determined in accordance with section 6.
  • (3) [Repealed, SOR/2011-143, s. 8]

  • SOR/2011-143, s. 8
 
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