Renewable Fuels Regulations (SOR/2010-189)

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.

PART 3Records and Reporting

General

Marginal note:Ministerial request for samples and information

26 Any person who produces, imports or sells gasoline, diesel fuel, heating distillate oil, other liquid petroleum fuel, renewable fuel or biocrude must, on the Minister’s request, provide to the Minister

• (a) a sample of the fuel or biocrude;

• (b) a copy of any record required to be made by the person under these Regulations;

• (c) the name and civic address of any person from whom the fuel or biocrude was acquired and the date of acquisition; or

• (d) a copy of the measurement standard or method used to determine a volume under these Regulations.

Marginal note:Electronic report or notice

• 27 (1) A report or notice that is required under these Regulations must be sent electronically in the form and format specified by the Minister and must bear the electronic signature of an authorized official.

• Marginal note:Paper report or notice

  (2) If the Minister has not specified an electronic form and format or if it is impractical to send the report or notice electronically in accordance with subsection (1) because of circumstances beyond the control of the person sending the report or notice, they must send it on paper, signed by an authorized official, in the form and format specified by the Minister. However, if no form and format have been so specified, the report or notice may be in any form and format.

• Marginal note:Non-application — auditor’s report

  (3) Subsections (1) and (2) do not apply to the auditor’s report referred to in section 28.

Auditor’s Report

Marginal note:Auditing of records and reports

• 28 (1) A participant, or a producer or importer of renewable fuel, must have their records and reports that are required under these Regulations in respect of each compliance period audited by an auditor. The audit must assess whether the participant’s, the producer’s or the importer’s practices and procedures are, in the auditor’s opinion, appropriate to ensure, and to demonstrate, compliance with these Regulations.

• Marginal note:Conduct of audit

  (1.1) The audit must be conducted by an individual who is an auditor, or who is a member of a firm that is an auditor, and who has demonstrated the knowledge and skills required to conduct the assessments referred to in subsection (1) and in items 3 to 7 of Schedule 3.

• Marginal note:Auditor’s reports

  (2) The participant, the producer or the importer must obtain from the auditor a report in respect of the audit that contains the information set out in Schedule 3. They must, on or before June 30 following the end of the compliance period, send the auditor’s report to the Minister.

• Marginal note:Signature

  (2.1) The auditor’s report must be signed

  • (a) by the auditor, if the auditor is an individual; or

  • (b) by a duly authorized representative of the firm, if the auditor is a firm.

• Marginal note:Signature — alternative

  (2.2) Despite paragraph (2.1)(a), if an individual auditor referred to in that paragraph is a member of a firm, a duly authorized representative of the firm may sign the auditor’s report instead of the individual auditor.

• Marginal note:Non-application — no compliance units created

  (3) Subsections (1) to (2.2) do not apply, in respect of a compliance period,

  • (a) to a producer or importer of a renewable fuel who demonstrates, in supporting documents sent together with a report referred to in subsection 34(4), that no compliance units were created from renewable fuel that they produced or imported during the compliance period; or

  • (b) to an elective participant who demonstrates, in supporting documents sent together with a report referred to in section 33, that

    • (i) under subsection 11(3), they ended their participation in the trading system as of a specified date referred to in that subsection that occurred during the trading period in respect of the compliance period and, during that trading period, they did not transfer any compliance units, or

    • (ii) during that trading period, they neither created nor traded compliance units.

• (4) [Repealed, SOR/2011-143, s. 11]

Primary Suppliers

Marginal note:Records of batches — gasoline pool and distillate pool

29 A primary supplier must make a record of every batch of gasoline, diesel fuel or heating distillate oil that they produce or import during a gasoline compliance period. The record must contain the following information:

• (a) the volume, expressed in litres, of the batch;

• (b) the volume, expressed in litres, of renewable fuel, if any, in the batch;

• (c) whether the batch was finished gasoline, unfinished gasoline, diesel fuel or heating distillate oil;

• (d) the production facility at which the batch was produced or the province via which the importation of the batch occurred;

• (e) the date or dates on which the primary supplier

  • (i) imported the batch,

  • (ii) dispatched the batch from that production facility,

  • (iii) sent the batch to a fuel dispensing device — or the storage tank that services the fuel dispensing device — within that production facility, or

  • (iv) dispensed the batch from that fuel dispensing device;

• (f) if the entire volume of the batch is subtracted under subsection 6(4), the paragraph of that subsection that describes the fuel; and

• (g) if a portion of the volume of the batch is subtracted under subsection 6(4), the paragraph of that subsection that describes the fuel and the volume, expressed in litres, of the portion.

Marginal note:Annual report

30 For each compliance period during which a primary supplier produces or imports gasoline, diesel fuel or heating distillate oil, they must, on or before April 30 following the end of the compliance period, send a report to the Minister that contains the information set out in Schedule 4 for the compliance period.

Participants

Marginal note:Compliance unit account book

• 31 (1) For the trading period in respect of each compliance period, a participant must, in a compliance unit account book, make a record of the gasoline compliance units and of the distillate compliance units, as the case may be, that they

  • (a) created during, carried forward or carried back into, or carried forward or carried back from, the compliance period;

  • (b) transferred in trade, received in trade or cancelled during the trading period in respect of the compliance period; or

  • (c) for distillate compliance units, used to establish compliance with subsection 5(1) for a gasoline compliance period because they were assigned, under subsection 7(3), as the value for DtG_DG in subsection 8(1).

• Marginal note:Information

  (2) The participant must, in the compliance unit account book for each month of the trading period in respect of a compliance period, make a record of the month and year and — in respect of any compliance units created during, carried forward or carried back into, or carried forward or carried back from, the compliance period — a record of

  • (a) for each blending facility at which the participant created compliance units, the number of compliance units created as a result of the blending of renewable fuel with liquid petroleum fuel;

  • (b) for each province via which the participant imported liquid petroleum fuel with renewable fuel content, the number of compliance units they created as a result of that importation;

  • (c) for each production facility, the number of compliance units that the participant created as a result of the production of liquid petroleum fuel from biocrude used as feedstock;

  • (d) the number of compliance units that the participant created under section 16 in respect of neat renewable fuel;

  • (e) for each other participant from whom the participant received in trade compliance units, the number of compliance units so received;

  • (f) for each primary supplier to whom the participant transferred in trade compliance units, the number of compliance units so transferred;

  • (g) the number of compliance units that the participant carried forward under sections 21 to 23;

  • (h) the number of compliance units that the participant carried back under subsection 24(1);

  • (i) the number of compliance units that the participant cancelled under subsection 25(1);

  • (j) for each province via which exportation occurred, the number of compliance units that the participant cancelled under subsection 25(2);

  • (k) the number of their compliance units cancelled under subsection 25(3);

  • (l) the number of their compliance units cancelled under subsection 25(4);

  • (l.1) the number of their compliance units cancelled under subsection 25(5);

  • (l.2) the number of their compliance units cancelled under subsection 25(6);

  • (m) in the case of an elective participant who ends their participation in the trading system, the number of compliance units cancelled on the date on which they ended their participation;

  • (n) in the case of a primary supplier, the number they assigned, if any, under subsection 7(3), as the value for DtG_DG in subsection 8(1); and

  • (o) the date on which the record was made.

• Marginal note:When record made

  (3) The record must be made within 30 days after the end of the month for which the information is required to be recorded.

• Marginal note:Cumulative information

  (4) In addition, the record must, for each period that begins on the first day of the compliance period and ends at the end of the month in respect of which the information is required to be recorded, include

  • (a) the number of compliance units referred to in each of paragraphs (2)(a) to (n);

  • (b) the number of compliance units that the participant created, carried forward, carried back, transferred in trade, received in trade or cancelled, as the case may be; and

  • (c) the balance of the participant’s compliance units.

• Marginal note:Format

  (5) The compliance unit account book must be in the form and format specified by the Minister. However, if no form and format is so specified, it may be in any form and format.