Renewable Fuels Regulations (SOR/2010-189)

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.

Registration as a Primary Supplier

Marginal note:Registration

• 9 (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.

PART 2Compliance Unit Trading System

Participants

Marginal note:Who are participants

10 Participants in the trading system are

• (a) primary suppliers; and

• (b) elective participants.

Marginal note:Elective participants

• 11 (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.

Creation of Compliance Units

Marginal note:Participants who may create

• 12 (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

• 13 (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

• 14 (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

• 15 (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.