Clean Fuel Regulations (SOR/2022-140)

Marginal note:Registration — carbon-intensity contributor

• 93 (1) A carbon-intensity contributor may register as a carbon-intensity contributor with the Minister by submitting to the Minister a registration report that contains the following information:

  • (a) their name, civic address, postal address, telephone number and, if any, email address;

  • (b) the name, title, civic address, postal address, telephone number and, if any, email address of their authorized agent;

  • (c) the name, title, civic address, postal address, telephone number and, if any, email address of a contact person, unless the contact person is the authorized agent; and

  • (d) with respect to each facility at which renewable natural gas, renewable propane, electricity, biogas or hydrogen is produced,

    • (i) the name, GPS coordinates to the fifth decimal place and, if any, civic address of the facility, and

    • (ii) the type of fuel, energy source or material input produced at the facility.

• Marginal note:Pre-condition for application

  (2) A carbon-intensity contributor may make an application referred to in subsection 80(1), 81(1) or 91(1) only if they are registered as a carbon-intensity contributor with the Minister.

Low-Carbon-Intensity Fuels

Marginal note:Liquid class

• 94 (1) A person who, during a compliance period, produces in Canada or imports into Canada a quantity of liquid low-carbon-intensity fuel that displaces, or was sold to displace, the use of a quantity of fuel in the liquid class may create provisional compliance credits in respect of the liquid class for the compliance period.

• Marginal note:Number of compliance credits

  (2) The number of compliance credits that the person may create for a compliance period in respect of the liquid low-carbon-intensity fuel is determined by the formula

  CI_diff × (Q × D) × 10^-6

  where

  CI_diff

  is the difference between the reference carbon intensity for the liquid class, as set out in item 1, column 2, of Schedule 1, and the carbon intensity of the low-carbon-intensity fuel that is the default carbon intensity referred to in paragraph 75(1)(a), the carbon intensity approved under subsection 85(1) or the actual carbon intensity specified in the carbon-intensity-pathway report referred to in subsection 123(1), as the case may be;

  Q

  is, subject to subsection 45(1), the volume of the low-carbon-intensity fuel that the person produced in Canada using an eligible feedstock or imported into Canada during the compliance period that is used or sold for use in Canada as neat fuel or as part of a blend, expressed in cubic metres; and

  D

  is, at the election of the person, the energy density of the low-carbon-intensity fuel as set out in column 2 of Schedule 2 or as set out in the Specifications for Fuel LCA Model CI Calculations.

Marginal note:Gaseous class

• 95 (1) A person who, during a compliance period, produces in Canada or imports into Canada a quantity of low-carbon-intensity fuel that is biogas, renewable natural gas, renewable propane or hydrogen and that displaces, or was sold to displace, the use of a volume of fuel in the gaseous class may create provisional compliance credits in respect of the gaseous class for the compliance period.

• Marginal note:Excluded gases

  (2) A person must not create provisional compliance credits under subsection (1) for a compliance period by producing or importing

  • (a) biogas that is converted into renewable natural gas;

  • (b) biogas, renewable natural gas, renewable propane or hydrogen for which provisional compliance credits were created by the carrying out of an emission-reduction project referred to in section 30;

  • (c) biogas for which provisional compliance credits were created under section 96; or

  • (d) renewable propane, renewable natural gas or hydrogen for which provisional compliance credits were created under section 100 or 104.

• Marginal note:Exception — biogas used in equipment

  (3) A person must not create provisional compliance credits under subsection (1) for a compliance period in respect of the use of biogas in equipment that produces electricity unless the amount determined by the following formula is greater than 0.7:

  (E_total + H) ÷ (Q × D)

  where

  E_total

  is the total quantity of electricity produced by the equipment, expressed in megajoules;

  H

  is the heat energy produced by the equipment and used or sold, expressed in megajoules;

  Q

  is the quantity of the biogas used in the equipment, expressed in cubic metres; and

  D

  is, at the election of the person, the energy density of the biogas as set out in item 1, column 2, of Schedule 2, as set out in the Specifications for Fuel LCA Model CI Calculations or as measured in accordance with section 162.

• Marginal note:Number of compliance credits

  (4) The number of compliance credits that the person may create for a compliance period in respect of a particular fuel is determined by the formula

  CI_diff × (Q × D) × 10^-6

  where

  CI_diff

  is

  • (a) in the case of biogas, renewable natural gas or hydrogen, the difference between the reference carbon intensity of biogas, renewable natural gas and hydrogen, as set out in item 2, column 2, of Schedule 1, and the carbon intensity that is the default carbon intensity referred to in paragraph 75(1)(a), the carbon intensity approved under subsection 85(1) or the actual carbon intensity specified in the carbon-intensity-pathway report referred to in subsection 123(1), as the case may be, and

  • (b) in the case of renewable propane, the difference between the reference carbon intensity of renewable propane, as set out in item 3, column 2, of Schedule 1, and the carbon intensity that is the default carbon intensity referred to in paragraph 75(1)(a), the carbon intensity approved under subsection 85(1) or the actual carbon intensity specified in the carbon-intensity-pathway report referred to in subsection 123(1), as the case may be;

  Q

  is, subject to subsection 45(1), the quantity of the biogas — other than biogas referred to in paragraph (2)(a) or (2)(c) — or renewable natural gas, renewable propane or hydrogen — other than renewable natural gas, renewable propane or hydrogen referred to in paragraph (2)(d) — that was produced using an eligible feedstock in Canada or imported into Canada by the person during the compliance period and that is used or sold for use in Canada as neat fuel or as part of a blend, expressed in cubic metres in the case of biogas, renewable natural gas or renewable propane and in kilograms in the case of hydrogen; and

  D

  is, at the election of the person, the energy density of the biogas, renewable natural gas, renewable propane or hydrogen as set out in column 2 of Schedule 2, as set out in the Specifications for Fuel LCA Model CI Calculations or, in the case of biogas, as measured in accordance with section 162.

Marginal note:Biogas used to produce electricity

• 96 (1) A person who, during a compliance period, produces in Canada a quantity of biogas that is used in equipment to produce electricity and that displaces the use in Canada of a volume of fuel in the gaseous class in accordance with paragraph 20(b) or (c) may create provisional compliance credits in respect of the gaseous class for the compliance period.

• Marginal note:Electricity produced from biogas

  (2) The carbon intensity of the electricity that the person produces by using biogas in equipment is determined by the formula

  CI_biogas × (Q × D) ÷ E_total

  where

  CI_biogas

  is the carbon intensity of the biogas that is used to produce electricity and that is the default carbon intensity referred to in paragraph 75(1)(a), the carbon intensity approved under subsection 85(1) or the actual carbon intensity specified in the carbon-intensity-pathway report referred to in subsection 123(1), as the case may be;

  Q

  is, subject to subsection 45(1), the quantity of the biogas that is produced using an eligible feedstock and used in the equipment and determined in accordance with the Specifications for Fuel LCA Model CI Calculations, expressed in cubic metres;

  D

  is, at the election of the person, the energy density of the biogas as set out in item 1, column 2, of Schedule 2, as set out in the Specifications for Fuel LCA Model CI Calculations or as measured in accordance with section 162; and

  E_total

  is the total quantity of electricity produced by the equipment from the biogas, expressed in megajoules.

• Marginal note:Number of compliance credits

  (3) The number of compliance credits that a person may create under subsection (1) for a compliance period is determined by the formula

  CI_diff × E × 10^-6

  where

  CI_diff

  is the difference between the carbon intensity of electricity for the province in which the equipment used to produce the electricity is located, as determined in accordance with subsection (4), and the carbon intensity of the electricity produced from biogas, as determined in accordance with subsection (2); and

  E

  is the quantity of electricity that is produced, expressed in megajoules.

• Marginal note:Carbon intensity — province

  (4) The carbon intensity of electricity for the province in which the equipment that uses biogas to produce electricity is located is the lessor of the following amounts:

  • (a) the amount set out for that province in section 9 of Schedule 6;

  • (b) the amount set out for that province in the Specifications for Fuel LCA Model CI Calculations; and

  • (c) 96 g/MJ.

Marginal note:Multiple feedstocks

• 97 (1) A low-carbon-intensity fuel that is produced using more than one type of feedstock is considered to be multiple fuels for the purposes of paragraph 30(d) and sections 94 to 96, 100 and 104 and the quantity of each type of fuel is equal to the proportion of the low-carbon-intensity fuel that is produced using each type of feedstock.

• Marginal note:Determination of proportion

  (2) The registered creator must determine the proportion of a low-carbon-intensity fuel that is produced using each type of feedstock in accordance with the Specifications for Fuel LCA Model CI Calculations.

• Marginal note:Co-processed low-carbon-intensity fuel

  (3) The registered creator must determine the proportion of a co-processed low-carbon-intensity fuel that is produced using each type of feedstock in accordance with the applicable specific emission-reduction quantification method established under subsection 32(1).

Fuel or Other Energy Source for Vehicles

Marginal note:Gas for vehicles

• 98 (1) The owner or operator of a fuelling station who, during a compliance period, displaces the use of a fuel in the liquid class by supplying propane, compressed natural gas or liquefied natural gas for use in Canada as a fuel for a vehicle may create provisional compliance credits in respect of the liquid class for the compliance period.

• Marginal note:Number of compliance credits

  (2) The number of compliance credits that an owner or operator may create under subsection (1) for a compliance period is determined by the formula

  CI_diff × (Q × D) × 10^-6

  where

  CI_diff

  is the difference between

  • (a) the reference carbon intensity for the liquid class, as set out in item 1, column 2, of Schedule 1, and

  • (b) the carbon intensity of the propane, compressed natural gas or liquefied natural gas that is determined in accordance with subsection 75(6), that is approved under subsection 85(1) or that is the actual carbon intensity specified in the carbon-intensity-pathway report referred to in subsection 123(1), as the case may be;

  Q

  is the difference between

  • (a) the total quantity of the fuel that contains propane, compressed natural gas or liquefied natural gas that is supplied for use as a fuel for a vehicle, as measured by a meter,

    • (i) expressed in cubic metres of fuel in the liquid state, in the case of fuel that contains propane,

    • (ii) expressed in cubic metres, in the case of fuel that contains compressed natural gas, and

    • (iii) expressed in kilograms, in the case fuel that contains liquefied natural gas; and

  • (b) the quantity of the following, as determined from the supporting documents referred to in subsection 99(2):

    • (i) renewable propane or co-processed low-carbon-intensity propane supplied for use as a fuel for a vehicle, expressed in cubic metres of fuel in the liquid state, if the fuel that is supplied contains propane, renewable propane or co-processed low-carbon-intensity propane, and

    • (ii) renewable natural gas supplied for use as a fuel for a vehicle, expressed in cubic metres, if the fuel that is supplied contains compressed natural gas, or

    • (iii) renewable natural gas supplied for use as a fuel for a vehicle, expressed in kilograms, if the fuel that is supplied contains liquefied natural gas; and

  D

  is, at the election of the owner or operator, the energy density of the propane, compressed natural gas or liquefied natural gas, as the case may be, as set out in column 2 of Schedule 2 or as set out in the Specifications for Fuel LCA Model CI Calculations.

Marginal note:Renewable gaseous fuel

• 99 (1) The owner or operator of a fuelling station who, during a compliance period, displaces the use of a fuel in the liquid class by supplying low-carbon-intensity fuel that is renewable propane, co-processed low-carbon intensity propane, compressed renewable natural gas or liquefied renewable natural gas for use in Canada as a fuel for a vehicle must not create provisional compliance credits in respect of the liquid class for the compliance period unless they possess the supporting documents that are referred to in subsection (2).

• Marginal note:Supporting documents

  (2) The supporting documents must

  • (a) establish that the fuel was physically supplied to the fuelling station or was supplied to the fuelling station by means of a contractual agreement;

  • (b) indicate the quantity of the fuel that was produced, subject to subsection 45(1), using eligible feedstock that was supplied to the fuelling station by the producer of the fuel during the compliance period and indicate the name of the person from whom the fuel was purchased;

  • (c) if the carbon intensity of the fuel has been approved by the Minister under subsection 85(1), indicate that carbon intensity and the alphanumeric identifier assigned to that carbon intensity under subsection 85(2);

  • (d) if the carbon intensity of the fuel has not been approved by the Minister under subsection 85(1), indicate the name of the producer of the fuel, their civic address, postal address, telephone number and, if any, their email address and the name, GPS coordinates to the fifth decimal place and, if any, the civic address of the facility at which the fuel was produced; and

  • (e) if the fuel was supplied by means of a contractual agreement, establish that there is a physical connection between the fuelling station and the producer of the fuel and that the quantity of the fuel supplied to vehicles at the fuelling station during the compliance period does not exceed the quantity of the fuel produced by the producer of the fuel and injected in a pipeline during the compliance period.

• Marginal note:Number of compliance credits

  (3) The number of compliance credits that the owner or operator of a fuelling station that supplies a low-carbon-intensity fuel that is compressed renewable natural gas or liquefied renewable natural gas may create for a compliance period is determined by the formula

  (CI_diff1 + CI_diff2) × (Q × D) × 10^-6

  where

  CI_diff1

  is the difference between

  • (a) the reference carbon intensity for the liquid class, as set out in item 1, column 2, of Schedule 1, and

  • (b) the carbon intensity of the compressed renewable natural gas or liquefied renewable natural gas that is determined in accordance with subsection 75(6), that is approved under subsection 85(1) or that is the actual carbon intensity specified in the carbon-intensity-pathway report referred to in subsection 123(1), as the case may be;

  CI_diff2

  is the difference between

  • (a) the carbon intensity of natural gas that is determined in accordance with subsection 75(6), and

  • (b) the reference carbon intensity of renewable natural gas, as set out in item 2, column 2, of Schedule 1;

  Q

  is, subject to subsection 45(1), the quantity of the renewable natural gas supplied to the vehicles, expressed in cubic metres in the case of compressed renewable natural gas or in kilograms in the case of liquefied renewable natural gas, as determined from the supporting documents referred to in subsection (2); and

  D

  is, at the election of the owner or operator, the energy density of renewable natural gas as set out in item 2, column 2, of Schedule 2 or as set out in the Specifications for Fuel LCA Model CI Calculations.

• Marginal note:Renewable propane

  (4) The number of compliance credits that the owner or operator of a fuelling station that supplies a low-carbon-intensity fuel that is renewable propane or co-processed low-carbon intensity propane may create for a compliance period is determined by the formula

  (CI_diff1 + CI_diff2) × (Q × D) × 10^-6

  where

  CI_diff1

  is the difference between

  • (a) the reference carbon intensity for the liquid class, as set out in item 1, column 2, of Schedule 1, and

  • (b) the carbon intensity of the propane that is determined in accordance with subsection 75(6), that is approved under subsection 85(1) or that is the actual carbon intensity specified in the carbon-intensity-pathway report referred to in subsection 123(1), as the case may be;

  CI_diff2

  is the difference between

  • (a) the carbon intensity of propane, as determined in accordance with subsection 75(6), and

  • (b) the reference carbon intensity of renewable propane, as set out in item 3, column 2, of Schedule 1;

  Q

  is, subject to subsection 45(1), the quantity of the renewable propane or co-processed low-carbon intensity propane supplied to the vehicles, expressed in cubic metres of fuel in the liquid state, as determined from the supporting documents referred to in subsection (2); and

  D

  is, at the election of the owner or operator, the energy density of renewable propane as set out in item 7, column 2, of Schedule 2 or in the Specifications for Fuel LCA Model CI Calculations.