Fuel Charge Regulations (2018, c. 12, s. 187)

Marginal note:Rebate — fuel removed from listed province

• 5.1 (1) For the purposes of section 48 of the Act, if a quantity of fuel is, at a particular time, removed from a listed province and brought into another province by a person that is neither registered nor required to be registered as a distributor in respect of that type of fuel and if the quantity of fuel was delivered in the listed province at an earlier time to the person by a registered distributor in respect of that type of fuel, the Minister must pay a rebate to the registered distributor in respect of the quantity of fuel, the listed province and the reporting period of the registered distributor that includes the particular time if the following conditions are met:

  • (a) a charge under section 17 of the Act was payable by the registered distributor 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 reporting period of the registered distributor that includes the earlier time;

  • (b) during the period that begins at the earlier time and ends at the particular time, the quantity of fuel is not further processed, transformed or altered in the listed province except to the extent reasonably necessary or incidental to its transportation;

  • (c) if the other province is a listed province, a charge under section 19 or 20 of the Act was payable by the person at the particular time in respect of the quantity of fuel and the other province and that charge was taken into account in the determination of the net charge for the reporting period of the person that includes the particular time; and

  • (d) the person provides to the registered distributor, and the registered distributor retains, evidence satisfactory to the Minister that the quantity of fuel was removed at the particular time from the listed province and that the conditions in paragraph (b) and, if applicable, paragraph (c) are met.

• Marginal note:Amount of rebate

  (2) For the purposes of section 48 of the Act, the amount of the rebate under subsection (1) is equal to the amount of the charge referred to in paragraph (1)(a).

• Marginal note:Non-application — supply tank

  (3) The rebate under subsection (1) is not payable to the extent that the fuel is removed from a listed province in a supply tank of a vehicle.

• Marginal note:Non-application — small quantity

  (4) The rebate under subsection (1) is not payable if the type of fuel is gasoline, kerosene, light fuel oil or propane and the quantity of the fuel that is removed from a listed province otherwise than in a supply tank of a vehicle does not exceed 1000 L.

PART 4Fishers

Marginal note:Prescribed listed provinces — fishers

6 For the purposes of subparagraph 17(2)(a)(iii.1) of the Act, the following listed provinces are prescribed:

• (a) Ontario;

• (b) Nova Scotia;

• (b.1) New Brunswick;

• (c) Manitoba;

• (c.1) Prince Edward Island;

• (d) Saskatchewan;

• (d.1) Alberta;

• (d.2) Newfoundland and Labrador;

• (e) Yukon; and

• (f) Nunavut.

PART 5Greenhouse Operators

Marginal note:Charge — diversion by greenhouse operator

• 7 (1) For the purposes of section 26 of the Act, if at any time fuel that is qualifying greenhouse fuel is delivered in a listed province by a registered distributor in respect of that type of fuel to a particular person that is a greenhouse operator and an exemption certificate referred to in subsection 9(1) applies in respect of the delivery in accordance with section 36 of the Act, the particular person must pay a charge in respect of the fuel and the listed province in the amount determined under subsection (6) to the extent that, at a later time, the fuel is

  • (a) used by the particular person in the listed province otherwise than in eligible greenhouse activities; or

  • (b) delivered by the particular person to another person unless the other person is a registered distributor in respect of that type of fuel and an exemption certificate applies in respect of the delivery in accordance with section 36 of the Act.

• Marginal note:When charge payable

  (2) For the purposes of section 26 of the Act, the charge referred to in subsection (1) becomes payable at the later time referred to in that subsection.

• Marginal note:Charge not payable

  (3) For the purposes of section 27 of the Act, the charge referred to in subsection (1) is not payable if the particular person is not, at the later time referred to in that subsection, a greenhouse operator or if a charge is payable under section 37 of the Act in respect of the fuel.

• Marginal note:Charge — ceasing to be a greenhouse operator

  (4) For the purposes of section 26 of the Act, if at any time fuel that is qualifying greenhouse fuel is delivered in a listed province by a registered distributor in respect of that type of fuel to a particular person that is a greenhouse operator, if an exemption certificate referred to in subsection 9(1) applies in respect of the delivery in accordance with section 36 of the Act and if the particular person ceases, at a later time, to be a greenhouse operator, the particular person must pay a charge in respect of the fuel and the listed province in the amount determined under subsection (6) to the extent that, at the later time, the fuel is held in the listed province by the particular person. The charge becomes payable at the later time.

• Marginal note:Charge not payable

  (5) For the purposes of section 27 of the Act, the charge referred to in subsection (4) is not payable if

  • (a) at the later time referred to in that subsection, the particular person is registered as a distributor in respect of that type of fuel;

  • (b) at the later time referred to in that subsection, the particular person is a registered emitter, but only to the extent that, at the later time, the fuel is held at, or is in transit to, a covered facility of the particular person; or

  • (c) a charge is payable under section 37 of the Act in respect of the fuel.

• Marginal note:Amount of charge

  (6) For the purposes of section 26 of the Act, the amount of the charge payable under subsection (1) or (4) in respect of the fuel and the listed province is equal to the amount determined by the formula:

  A × B × 0.8

  where

  A

  is the quantity of the fuel in respect of which the charge becomes payable; and

  B

  is the rate in respect of fuel of that type for the listed province applicable at the time the charge becomes payable.

Marginal note:Exemption certificate — greenhouse operator

8 For the purposes of subparagraph 36(1)(b)(viii) of the Act, a greenhouse operator is a prescribed person and the prescribed circumstances are that the fuel is for use exclusively in eligible greenhouse activities.

Marginal note:Application — delivery to greenhouse operator

• 9 (1) For the purposes of subsection 40(3) of the Act, the amount of a charge in respect of fuel and a listed province payable under subsection 17(1) of the Act is to be determined in accordance with this section if

  • (a) the fuel is a qualifying greenhouse fuel;

  • (b) the other person referred to in subsection 17(1) of the Act is a greenhouse operator at the particular time referred to in that subsection;

  • (c) an exemption certificate applies in respect of the delivery referred to in subsection 17(1) of the Act in accordance with section 36 of the Act; and

  • (d) the exemption certificate includes a declaration by the other person that the other person is a greenhouse operator and that the fuel is for use exclusively in eligible greenhouse activities.

• Marginal note:Amount of charge

  (2) If subsection (1) applies, the amount of the charge payable in respect of the fuel and the listed province is equal to the amount determined by the formula:

  A × B × 0.2

  where

  A

  is the quantity of the fuel in respect of which the charge becomes payable; and

  B

  is the rate in respect of fuel of that type for the listed province applicable at the time the charge becomes payable.

Marginal note:Amount of charge — adjustment day

10 For the purposes of the fuel charge system and of applying subsection 38(1) of the Act in respect of fuel that is a qualifying greenhouse fuel and that is held at the beginning of an adjustment day in a listed province by a person that is a greenhouse operator, the formula in that subsection and the descriptions in that formula are adapted as follows:

[A − (0.8 × B)] × (C − D)

where

A

is the quantity of the fuel;

B

is the quantity of the fuel that was delivered to the person by a registered distributor in respect of that type of fuel and in respect of which an exemption certificate referred to in subsection 9(1) of the Fuel Charge Regulations applies in respect of the delivery in accordance with section 36;

C

is the rate in respect of fuel of that type for the listed province applicable on the adjustment day; and

D

is

• (a) zero, if

  • (i) the adjustment day is commencement day,

  • (ii) the adjustment day is July 1, 2019 and the listed province is Yukon or Nunavut,

  • (iii) the adjustment day is January 1, 2020 and the listed province is Alberta, or

  • (iv) the adjustment day is July 1, 2023 and the listed province is Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, and

• (b) the rate in respect of fuel of that type for the listed province applicable on the day before the adjustment day, in any other case.

Marginal note:Registration — delivery to greenhouse operator

11 For the purposes of paragraph 55(3)(c) of the Act, a person may apply under subsection 55(3) of the Act to be registered as a distributor in respect of a type of fuel that is a qualifying greenhouse fuel if the person carries on the business of selling, delivering or distributing fuel of that type and, in the ordinary course of that business, delivers fuel of that type in a listed province to a greenhouse operator.

PART 6Remote Power Plant Operators

Marginal note:Charge not payable — remote power plant operator

12 For the purposes of subparagraph 17(2)(a)(iv) of the Act, a charge is not payable in respect of fuel that is a qualifying power plant fuel if the fuel is delivered by a registered distributor in respect of that type of fuel to a remote power plant operator and an exemption certificate applies in respect of the delivery in accordance with section 36 of the Act.

Marginal note:Charge — diversion by remote power plant operator

• 13 (1) For the purposes of section 26 of the Act, if at any time fuel that is a qualifying power plant fuel is delivered in a listed province by a registered distributor in respect of that type of fuel to a particular person that is a remote power plant operator and an exemption certificate applies in respect of the delivery in accordance with section 36 of the Act, the particular person must pay a charge in respect of the fuel and the listed province in the amount determined under section 40 of the Act to the extent that, at a later time, the fuel is

  • (a) used by the particular person in the listed province otherwise than in the operation of a remote power plant or otherwise than at the location of a remote power plant; or

  • (b) delivered by the particular person to another person unless the other person is a registered distributor in respect of that type of fuel and an exemption certificate applies in respect of the delivery in accordance with section 36 of the Act.

• Marginal note:When charge payable

  (2) For the purposes of section 26 of the Act, the charge referred to in subsection (1) becomes payable at the later time referred to in that subsection.

• Marginal note:Charge not payable

  (3) For the purposes of section 27 of the Act, the charge referred to in subsection (1) is not payable if the particular person is not, at the later time referred to in that subsection, a remote power plant operator or if a charge is payable under section 37 of the Act in respect of the fuel.

• Marginal note:Charge — ceasing to be a remote power plant operator

  (4) For the purposes of section 26 of the Act, if at any time fuel that is a qualifying power plant fuel is delivered in a listed province by a registered distributor in respect of that type of fuel to a particular person that is a remote power plant operator, if an exemption certificate applies in respect of the delivery in accordance with section 36 of the Act and if the particular person ceases, at a later time, to be a remote power plant operator, the particular person must pay a charge in respect of the fuel and the listed province in the amount determined under section 40 of the Act to the extent that, at the later time, the fuel is held in the listed province by the particular person. The charge becomes payable at the later time.

• Marginal note:Charge not payable

  (5) For the purposes of section 27 of the Act, the charge referred to in subsection (4) is not payable if

  • (a) at the later time referred to in that subsection, the particular person is registered as a distributor in respect of that type of fuel;

  • (b) at the later time referred to in that subsection, the particular person is a registered emitter, but only to the extent that, at the later time, the fuel is held at, or is in transit to, a covered facility of the particular person; or

  • (c) a charge is payable under section 37 of the Act in respect of the fuel.

Marginal note:Charge not payable — remote power plant operator

14 For the purposes of section 27 of the Act, no charge is payable under subsection 18(1) of the Act in respect of fuel used by a person if the person is a remote power plant operator, the fuel is a qualifying power plant fuel and the fuel is used at the location of a remote power plant in the operation of the remote power plant.