Clean Fuel Regulations (SOR/2022-140)

Marginal note:Reduction — July 31

• 18 (1) In order to reduce a deferred portion of the reduction requirements in accordance with section 11, the primary supplier must, during the period that begins on the day after a compliance period expires and ends on the July 31 that follows that day, use the following compliance credits that are in their accounts opened under section 28 and that exceed the number required to satisfy the reduction requirements for the compliance period that ended most recently:

  • (a) subject to subsection 15(1), all of the compliance credits that they created by contributing to a registered emission-reduction funding program in accordance with paragraph 118(1)(a);

  • (b) subject to subsections 15(2) and (3), any compliance credits in their account opened under paragraph 28(b); and

  • (c) subject to subsection 15(3), any compliance credits in their account opened under paragraph 28(a).

• Marginal note:Election

  (2) If the primary supplier has more credits than the number required to satisfy the deferred portion of the reduction requirements in accordance with subsection (1), they may elect to use any number of compliance credits referred to in paragraphs (1)(b) and (c) to satisfy the deferred portion of the reduction requirements.

• Marginal note:Reduction — December 15

  (3) Subject to subsection 15(1), if a primary supplier, on the August 1 that follows the end of a compliance period, has not satisfied the deferred portion of the reduction requirements for a previous compliance period in accordance with subsection (2), the primary supplier must, no later than the following December 15, reduce the deferred portion of the reduction requirements by using all of the compliance credits in their account opened under paragraph 28(a) — that were transferred to them through the compliance-credit clearance mechanism under section 112 or that they created by contributing to a registered emission-reduction funding program in accordance with paragraph 118(1)(b) — that exceed the number of compliance credits required to satisfy their reduction requirements for the compliance period that ended most recently.

• Marginal note:Multiple compliance periods

  (4) If a primary supplier has not satisfied the deferred portion of the reduction requirements for more than one previous compliance period, they must not use any compliance credits to reduce the deferred portion of the reduction requirements in accordance with subsection (1) or (3) for a particular compliance period unless they have satisfied the deferred portion of the reduction requirements for every compliance period that precedes that particular compliance period.

• Marginal note:Non-application

  (5) Subsections (1) to (4) do not apply before January 1, 2025.