Renewable Fuels Regulations (SOR/2010-189)

Marginal note:Neat renewable fuel — gasoline compliance units

• 16 (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

• 17 (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

• 18 (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

• 19 (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).

Trading of Compliance Units

Marginal note:To primary suppliers

• 20 (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)

• 21 (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:

  RF_G – (0.05 × P_G)

  where

  RF_G

  is the volume, expressed in litres, that the primary supplier determined for RF_G in accordance with subsection 8(1) for that gasoline compliance period; and

  P_G

  is the number of litres in the primary supplier’s gasoline pool for that gasoline compliance period, as determined in accordance with section 6.

Marginal note:Carry forward — primary suppliers (distillate)

• 22 (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:

  RF_D – (0.02 × P_D)

  where

  RF_D

  is the volume, expressed in litres, that the primary supplier determined for RF_D in accordance with subsection 8(2) for that distillate compliance period; and

  P_D

  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]

Marginal note:Carry forward into first distillate compliance period

• 22.1 (1) On September 30, 2011, a primary supplier may carry forward into the first distillate compliance period distillate compliance units that they own that were created before July 1, 2011 and that have not been assigned, under subsection 7(3), as the value for DtG_DG in subsection 8(1). The number of distillate compliance units that may be so carried forward must not exceed 0.004 multiplied by the number of litres in the primary supplier’s distillate pool determined using the pre-distillate compliance period as if it were the distillate compliance period in question.

• Marginal note:Identification

  (2) A record referred to in section 31 or subsection 32(6) or a report referred to in section 33 or 39 that is related to the creation, transfer in trade, receipt in trade, carrying forward, cancellation, or assignment under subsection 7(3) as the value for DtG_DG in subsection 8(1), of distillate compliance units — in the period that begins on July 1, 2011 and that ends on September 30, 2011 — must identify the number of those distillate compliance units that were created

  • (a) in that period; and

  • (b) before July 1, 2011.

• Marginal note:Written statement

  (3) A participant who — in the period that begins on July 1, 2011 and that ends on September 30, 2011 — transfers in trade distillate compliance units must, on the transfer, provide to the primary supplier who receives in trade those distillate compliance units a written statement that indicates the number of those distillate compliance units that were created

  • (a) in that period; and

  • (b) before July 1, 2011.

Marginal note:Carry forward — elective participants

23 An elective participant may, before the end of the trading period in respect of a compliance period, carry forward their compliance units — up to a maximum of the number of compliance units that they created during the compliance period — into the next compliance period. For greater certainty, no distillate compliance units may be carried forward by an elective participant into the first distillate compliance period.

Carry Back of Compliance Units

Marginal note:Carry back

• 24 (1) Subject to subsection (2), during the last three months of a trading period in respect of a compliance period, a primary supplier may carry back into the compliance period some, or all, of their compliance units.

• Marginal note:Maximum carried back

  (2) The maximum number of compliance units that may be carried back is

  • (a) for gasoline compliance units, 0.0025 multiplied by the number of litres in the primary supplier’s gasoline pool for the gasoline compliance period; and

  • (b) for distillate compliance units, 0.001 multiplied by the number of litres in the primary supplier’s distillate pool for the distillate compliance period.

Cancellation of Compliance Units

Marginal note:Carry back

• 25 (1) For each compliance unit that a primary supplier carried back into a compliance period, the primary supplier must, before the end of the trading period in respect of the compliance period, cancel from their compliance units that remain after that carrying back

  • (a) two gasoline compliance units for each gasoline compliance unit carried back; and

  • (b) two distillate compliance units for each distillate compliance unit carried back.

• Marginal note:Exports

  (2) For each litre of renewable fuel content in a batch of liquid petroleum fuel exported by a participant, or by one of their affiliates who is not a participant, during a compliance period, the participant must, before the end of the trading period in respect of the compliance period, cancel compliance units that were created during, or carried forward or carried back into, the compliance period as follows:

  • (a) one distillate compliance unit, if the liquid petroleum fuel was diesel fuel or heating distillate oil; and

  • (b) one gasoline compliance unit or one distillate compliance unit, in any other case.

• Marginal note:Excess compliance units

  (3) If, at the end of a month, a primary supplier owns a number of compliance units in respect of a compliance period in excess of the maximum permitted under section 19 for the month, that number of their compliance units in respect of the compliance period is cancelled at the end of the next month.

• Marginal note:Unused compliance units

  (4) At the end of the trading period in respect of a compliance period, a compliance unit in respect of the compliance period that is neither used nor carried forward is cancelled.

• Marginal note:Biocrude as feedstock

  (5) If, during a compliance period, a primary supplier produces a liquid petroleum fuel at a facility that uses biocrude as a feedstock and subsequently the primary supplier, or an affiliate of the primary supplier, exports a volume of the fuel during the trading period in respect of the compliance period, the primary supplier must — except for any of that volume that the primary supplier demonstrates was produced from feedstock that did not include any biocrude — cancel before the end of that trading period

  • (a) for exported diesel fuel or heating distillate oil, a number of distillate compliance units equal to the number of distillate compliance units created under subsections 15(1) and (2) during the compliance period as a result of the use of biocrude as feedstock to produce liquid petroleum fuel at the facility multiplied by the volume of the exported fuel and divided by the sum of the volume of diesel fuel and heating distillate oil produced at the facility during the compliance period; and

  • (b) in any other case, a number of gasoline compliance units equal to the number of gasoline compliance units created under subsection 15(2) during the compliance period as a result of the use of biocrude as feedstock to produce liquid petroleum fuel at the facility multiplied by the volume of the exported fuel and divided by the sum of the volume of fuel, other than diesel fuel and heating distillate oil, produced at the facility during the compliance period.

• Marginal note:December 1, 2011 — distillate compliance units

  (6) As of October 1, 2011, all of a participant’s distillate compliance units that they own and that were created before July 1, 2011 are cancelled unless they have been carried forward under subsection 22.1(1) or assigned, under subsection 7(3), as the value for DtG_DG in subsection 8(1) for the first gasoline compliance period.