Clean Fuel Regulations (SOR/2022-140)

Marginal note:Transfer through clearance mechanism

• 112 (1) A participant must not transfer any compliance credits through the compliance-credit clearance mechanism to a primary supplier unless the transfer request referred to in subsection 106(2) has been submitted to the Minister, along with a compliance report under subsection 127(1) indicating that the primary supplier has not satisfied the total reduction requirement for the compliance period to which the report relates by using all their compliance credits in accordance with subsection 13(1), (2) or (4). The transfer of compliance credits to that primary supplier must occur during the period beginning on the August 31 that follows the end of that compliance period and ending on the following October 31.

• Marginal note:Acquisition of compliance credits by primary supplier

  (2) A primary supplier who has submitted a report under subsection 127(1) indicating that they have not satisfied the total reduction requirement for the compliance period to which the report relates by using all their compliance credits in accordance with subsection 13(1), (2) or (4) must acquire, by transfer through the compliance-credit clearance mechanism, the number of compliance credits determined in accordance with subsection (5) for that compliance period.

• Marginal note:Maximum price

  (3) A participant who has pledged to offer to transfer a compliance credit must accept an offer to acquire the compliance credit by transfer through the compliance-credit clearance mechanism if the compliance credit is in their account and the price offered for the transfer is equal to or less than the amount determined by the formula

  $300 × (CPI_A ÷ CPI_B)

  where

  CPI_A

  is the average Consumer Price Index for the calendar year to which the compliance period relates, as published by Statistics Canada under the Statistics Act; and

  CPI_B

  is the average Consumer Price Index for the 12 months of the year 2022, as published by Statistics Canada under the Statistics Act.

• Marginal note:Prohibition

  (4) A participant who has pledged to offer to transfer a compliance credit must not accept an offer to acquire the compliance credit by transfer through the compliance-credit clearance mechanism if the amount offered for the transfer is higher than the amount determined in accordance with subsection (3).

• Marginal note:Credits per primary supplier

  (5) A primary supplier must not acquire a greater number of compliance credits by transfer through the compliance-credit clearance mechanism than the lesser of

  • (a) the total number of compliance credits that they require in order to satisfy the total reduction requirement as indicated in the compliance report that they submitted under subsection 127(1), and

  • (b) the number determined by the formula

    C × (R_p ÷ R_t)

    where

    C

    is the total number of compliance credits from all participants that are subject to any pledges made under subsection 110(1),

    R_p

    is the total number of compliance credits that the primary supplier requires in order to satisfy the total reduction requirement, and

    R_t

    is the total number of compliance credits that all primary suppliers require in order to satisfy the total reduction requirement.