Clean Fuel Regulations (SOR/2022-140)

Marginal note:Producer records

• 59 (1) A person who produces a quantity of low-carbon-intensity fuel using a feedstock referred to in paragraph 46(1)(b) or (c) must retain the following:

  • (a) delivery records, contracts and invoices with respect to each quantity of the feedstock that is brought to any of their facilities;

  • (b) the sales records for all low-carbon-intensity fuel, other than co-processed low-carbon-intensity fuel, that was produced using all or any portion of a quantity of the feedstock;

  • (c) records for all co-processed low-carbon-intensity fuel that demonstrate that it was produced using all or any portion of a quantity of eligible feedstock;

  • (d) a copy of the declaration made under paragraph 57(2)(a) by each person who possessed all or any portion of a quantity of the feedstock immediately before them;

  • (e) any information used to make the calculations referred to in subsections 45(1) and 47(2), the evidence that supports that information and the results of those calculations; and

  • (f) a copy of the certificate referred to in subsection 70(1), if any, that is issued with respect to the feedstock.

• Marginal note:Importer records

  (2) A person who imports into Canada a quantity of low-carbon-intensity fuel must retain the following:

  • (a) delivery records, contracts and invoices with respect to the quantity of low-carbon-intensity fuel;

  • (b) the sales records for that quantity of low-carbon-intensity fuel; and

  • (c) if the low-carbon-intensity fuel is produced using an eligible feedstock referred to in paragraph 46(1)(b) or (c), a copy of the declaration made under subsection 58(3) by the foreign supplier of the fuel.

Marginal note:Non-application

60 Sections 48, 49, 51 to 59 do not apply before January 1, 2024.

Marginal note:Certification

61 An eligible feedstock referred to in paragraph 46(1)(c) may be certified only by a certification body that is eligible under section 63 and that conducts the certification in accordance with sections 64 to 74 and under a certification scheme that is approved by the Minister under section 62.

Marginal note:Approval by Minister

• 62 (1) The Minister may approve a certification scheme if the following conditions are met:

  • (a) the Minister is satisfied that the applicable requirements set out in sections 48 to 52 will be met in respect of all of the feedstock certified using the certification scheme’s procedures;

  • (b) the certification scheme is developed and maintained by a person who is the scheme owner and that person

    • (i) has structures in place for operating and managing the certification scheme,

    • (ii) creates, maintains and has control of adequate documentation for the operation, maintenance and improvement of the certification scheme,

    • (iii) has measures in place to respond to complaints with respect to the certification scheme,

    • (iv) has measures in place to retain records securely for 10 years,

    • (v) creates, maintains and has control of an information management system,

    • (vi) protects the confidentiality of information provided by the parties involved in the certification scheme, and

    • (vii) has developed requirements that comply with sections 63 to 67 for certification bodies, as well as requirements regarding the specific competencies required of certification bodies and the way in which certification bodies are to demonstrate their compliance with those requirements;

  • (c) in the case where the feedstock is harvested in accordance with a forest management plan referred to in section 52, the certification scheme provides that the management plan must be assessed by a specialist in forestry;

  • (d) a plan is in place to review the certification scheme at planned intervals;

  • (e) procedures are in place to review the certification scheme when

    • (i) there is a significant change to the certification scheme, or

    • (ii) a complaint is received that indicates that a review is necessary;

  • (f) procedures, including for considering comments from stakeholders, are in place to ensure that the integrity, exhaustiveness and effectiveness of the certification scheme is verified during reviews;

  • (g) the certification scheme includes procedures to ensure that the following are publicly available:

    • (i) the most recent versions of the certification scheme and documentation for the scheme that are in the common language of each region to which the certification scheme applies,

    • (ii) a list, current to the day, of the feedstock harvesters that are certified under the certification scheme,

    • (iii) a list of certification bodies that are authorized to conduct audits under the certification scheme,

    • (iv) a list of certification bodies that were previously authorized to conduct audits under the certification scheme, including an indication as to whether those bodies are no longer authorized on a permanent or temporary basis, and

    • (v) contact information for the scheme owner;

  • (h) the certification scheme provides that a list of persons who have not complied with the certification scheme must be submitted, on request, to the Minister;

  • (i) in the case of a certification scheme that permits a group of producers to be certified together, the certification scheme requires that

    • (i) the producers in the group use similar production systems and information management systems and harvest feedstock of the same type and in areas that are near each other and have similar climatic conditions, and

    • (ii) there be clear conditions and procedures for a producer to join the group;

  • (j) the certification scheme sets out the measures that a certification body must take if a feedstock producer fails to comply with the certification scheme, including

    • (i) the denial of an application for certification or the revocation of a certificate in accordance with section 71, or the denial of an application for certification or the suspension of a certificate in accordance with section 72, in the circumstances indicated by the certification scheme, and

    • (ii) the establishment of procedures in respect of corrective actions that must be taken with respect to the circumstances of non-conformity referred to in section 73;

  • (k) the certification scheme includes conditions on the ways in which a feedstock harvester may use certificates issued under it; and

  • (l) the certification scheme owner monitors the use of certificates issued under the certification scheme.

• Marginal note:End of approval

  (2) A certification scheme ceases to be approved on the earlier of

  • (a) sixty days after the day on which there is a change to the scope of the scheme, unless the scheme owner notifies the Minister of the change and the Minister determines that, despite the change, the scheme continues to meet the conditions for approval,

  • (b) sixty days after the day on which there is a change to any procedure set out in the scheme on which the Minister’s approval was based, unless the scheme owner notifies the Minister of the change and the Minister determines that, despite the change, the scheme continues to meet the conditions for approval,

  • (c) the first anniversary of the day on which the scheme was most recently approved by the Minister unless, before that anniversary, the scheme owner submits a report that contains the information referred to in Schedule 5 to the Minister concerning the operation of the certification scheme during the preceding year,

  • (d) the first anniversary of the day on which the scheme owner most recently submitted a report that contains the information referred to in Schedule 5 to the Minister concerning the operation of the certification scheme within the preceding year, and

  • (e) the fifth anniversary of the day on which the scheme was most recently approved by the Minister.

Marginal note:Eligibility conditions for accreditation

• 63 (1) A person is eligible to be accredited as a certification body by the Standards Council of Canada, the American National Standards Institute (ANSI) National Accreditation Board or a designated accreditation body if the person

  • (a) meets the applicable requirements set out in ISO/IEC Standard 17065 or, in the case of a certification body that assesses a forest management plan referred to in section 52, meets the applicable requirements set out in ISO/IEC Standard 17021-1; and

  • (b) demonstrates that they comply with the competency requirements of the certification scheme for which they are to be accredited.

• Marginal note:Designation of accreditation body

  (2) The Minister may designate an accreditation body as a designated accreditation body if it is a member of the International Accreditation Forum or an equivalent body and meets the requirements set out in ISO/IEC Standard 17011.

• Marginal note:Suspended or revoked accreditation

  (3) The certification of a feedstock must not be conducted by a certification body whose accreditation is suspended or revoked.

Marginal note:No outsourcing

64 It is not permitted to outsource any of the activities that are carried out as part of the certification of a feedstock.

Marginal note:Consecutive certifications

65 The certification of a feedstock must be conducted by a team that does not include any individual who has contributed to the certification of the feedstock for five consecutive compliance periods, unless three compliance periods have elapsed since the most recent of those consecutive compliance periods.

Marginal note:Certification team — members

• 66 (1) A certification team must consist only of members who meet the requirements of clause 7 of ISO Standard 19011 and must include the following individuals:

  • (a) a team leader who is competent with respect to the feedstock being certified;

  • (b) if it is relevant to the feedstock being certified, at least one specialist in forestry or agriculture, as the case may be, who is recognized as a forestry engineer, professional forester, agricultural engineer or agrologist by

    • (i) a Canadian professional association, in the case of forestry or agriculture that occurs in Canada, and

    • (ii) a relevant national authority of the country in which the forestry or agriculture occurs, in any other case; and

  • (c) if it is relevant to the feedstock being certified, at least one specialist in biodiversity who holds a bachelor’s degree in biology, natural sciences or environmental sciences granted by a Canadian university, or an equivalent degree granted by a university outside Canada.

• Marginal note:Person responsible for making decision

  (2) The person responsible for making a certification decision must have, at a minimum, the same competencies as those set out for an audit team leader in subclause 7.2.3.4 of ISO Standard 19011.

Marginal note:Applicable standards for certification

• 67 (1) A certification body must conduct a certification in accordance with the Methods for Verification and Certification and with

  • (a) ISO/IEC Standard 17065 or, in the case where the feedstock is harvested in accordance with a forest management plan referred to in section 52, ISO/IEC Standard 17021-1; and

  • (b) ISO Standard 19011.

• Marginal note:Interpretation of ISO/IEC Standard 17065

  (2) For the purposes of ISO/IEC Standard 17065

  • (a) a reference to a “product requirement” in subclause 3.8 of that Standard is to be read as a reference to the requirements set out in sections 48 to 52 of these Regulations; and

  • (b) a reference to a “location” in that Standard is to be read as a reference to a farm, forest or any other place where the feedstock is harvested.
    

• Marginal note:Interpretation of ISO/IEC Standard 17021-1

  (3) For the purposes of ISO/IEC Standard 17021-1,

  • (a) a reference to an “audit criteria” in subclause 9.2.1 of that Standard is to be read as a reference to the requirements set out in section 52 of these Regulations; and

  • (b) a reference to a “site” in that Standard is to be read as a reference to a farm, forest or any other place where the feedstock is harvested.
    

Marginal note:Annual surveillance audit

68 The certification of a feedstock conducted by a certification body must include an annual surveillance audit to ensure that the feedstock is harvested in accordance with the requirements of sections 48 to 52.

Marginal note:Site visits

• 69 (1) The certification of a feedstock conducted by a certification body must include a site visit if it is the first certification of the feedstock or if, in the case of any subsequent audit, the risk of any non-conformity with the certification scheme is high.

• Marginal note:Remote audits

  (2) A site visit is not required during the conduct of a surveillance audit if

  • (a) the collection of data may be done remotely in a manner that reduces, to a reasonable level, the risk of failing to detect any non-conformity with the certification scheme; or

  • (b) the risk of any non-conformity with the certification scheme is low.

Marginal note:Unambiguous identification

• 70 (1) A certificate issued by a certification body must unambiguously identify the feedstock to which it applies.

• Marginal note:End of certification

  (2) The certificate ceases to be valid on the earlier of

  • (a) the day on which a certification body, on the basis of an audit it conducted, is no longer satisfied that the applicable requirements set out in sections 48 to 52 are met,

  • (b) the day that is the first anniversary of the day on which the most recent audit was conducted by the certification body,

  • (c) the day that is the fifth anniversary of the day on which the certificate was issued, and

  • (d) the day specified by the certification scheme under which the certification body conducts the certification.

Marginal note:Denial or revocation

• 71 (1) If any of the following circumstances occur with respect to a feedstock, an application for the certification of the feedstock must be denied or, in the case where a certificate has been issued for the feedstock, the certificate must be revoked:

  • (a) the applicable requirements set out in sections 48 to 52 are not met with respect to the feedstock and the situation cannot be rectified by corrective action;

  • (b) the producer of the feedstock fails to comply with the certification scheme and the situation cannot be rectified by taking corrective action;

  • (c) the producer of the feedstock fails to comply with the certification scheme in a manner that undermines the integrity of the certification scheme.

• Marginal note:New application for certification

  (2) The producer of a feedstock in respect of which an application for certification has been denied, or a certificate has been revoked, under subsection (1) may submit a new application for certification of the feedstock after the end of the period specified by the certification scheme.

Marginal note:Denial or suspension of certification

• 72 (1) If any of the following circumstances occur with respect to a feedstock, an application for the certification of the feedstock must be denied or, in the case where a certificate has been issued for the feedstock, the certificate must be suspended:

  • (a) the applicable requirements set out in sections 48 to 52 are not met with respect to the feedstock and the situation can be rectified by taking corrective action;

  • (b) the producer of the feedstock repeatedly fails to comply with the certification scheme, including in the following cases:

    • (i) more than 5% of the evidence that is provided to the certification body and included in a representative sample contains gaps or errors,

    • (ii) the producer fails to disclose their participation in other certification schemes during the certification process, or

    • (iii) the producer fails to provide the certification body with any relevant information.

• Marginal note:Duration of suspension

  (2) The suspension of the certificate begins on the day on which the producer of the feedstock is notified of the suspension and ends after 90 days.

• Marginal note:Revocation

  (3) The certificate must be revoked at the end of the 90‑day suspension period if the producer of the feedstock has not taken corrective action with respect to the situation that resulted in the suspension.