Clean Fuel Regulations (SOR/2022-140)

Marginal note:Quarterly credit-creation reports

• 121 (1) A registered creator must submit to the Minister within the following time limits the following reports respecting the creation of compliance credits during a compliance period under paragraph 19(1)(b) or (c), subparagraph 19(1)(d)(iii) or paragraph 20(b) or (c):

  • (a) no later than the June 30 of the compliance period, a report respecting the creation of compliance credits between the January 1 and the March 31 of that compliance period;

  • (b) no later than the September 30 of the compliance period, a report respecting the creation of compliance credits between the April 1 and the June 30 of that compliance period;

  • (c) no later than the December 31 of the compliance period, a report respecting the creation of compliance credits between the July 1 and the September 30 of that compliance period; and

  • (d) no later than the March 31 of the calendar year that follows the end of the compliance period, a report respecting the creation of compliance credits between the October 1 and the December 31 of that compliance period.

• Marginal note:Contents of report

  (2) The credit-creation report for each three-month period referred to in subsection (1) must be signed by the authorized agent of the registered creator and must contain the information referred to in Schedule 12 for the period to which the report relates.

• Marginal note:June 30, 2023 — single report

  (3) The registered creator must combine the reports required under subsection (1) for the compliance period that ends on December 31, 2022 into a single report that contains the information referred to in Schedule 12 for each three-month period referred to in that subsection and submit that report no later than June 30, 2023.

Marginal note:Credit-adjustment report

• 122 (1) A registered creator who creates compliance credits during a compliance period under paragraph 19(1)(b) or (c), subparagraph 19(1)(d)(iii) or paragraph 20(b) or (c) that are the subject of a quarterly credit-creation report submitted under section 121 must submit to the Minister, no later than the June 30 of the year that follows the end of the compliance period, a report on any adjustment of the number of compliance credits that have been deposited into the registered creator’s accounts under subsection 24(1) or (2).

• Marginal note:Contents of report

  (2) The credit-adjustment report must be signed by the authorized agent of the registered creator and include the information that is set out in Schedule 13.

• Marginal note:Non-application

  (3) Subsection (1) does not apply in respect of any compliance period that ends before January 1, 2023.

Marginal note:Carbon-intensity-pathway report

• 123 (1) A registered creator, carbon-intensity contributor or foreign supplier who obtains approval of the carbon intensity of a fuel, energy source or material input under subsection 85(1) must submit to the Minister, for the compliance period during which the approval is obtained and for each compliance period that follows, a carbon-intensity-pathway report no later than the April 30 that follows the end of the compliance period.

• Marginal note:Contents of report

  (2) The carbon-intensity-pathway report must contain the information referred to in Schedule 14 for the compliance period and must be signed by the authorized agent of the registered creator, carbon-intensity contributor or foreign supplier.

• Marginal note:Non-application

  (3) Subsection (1) does not apply in respect of any compliance period that ends before January 1, 2024.

• Marginal note:2024 compliance period

  (4) Despite subsection (1), a registered creator, carbon-intensity contributor or foreign supplier who has received approval of a carbon intensity of a fuel, energy source or material input under subsection 85(1) after July 1, 2024 may, for the compliance period that ends on December 31, 2024, submit the carbon-intensity-pathway report on or before April 30, 2025.

Marginal note:Material balance report

• 124 (1) A registered creator or foreign supplier must submit a material balance report to the Minister no later than the April 30 that follows the end of each compliance period in respect of any gaseous or liquid low-carbon-intensity fuel that has a carbon intensity referred to in subsection 45(2) and was produced using a quantity of an eligible feedstock referred to in paragraph 46(1)(b) or (c).

• Marginal note:Contents of report

  (2) The material balance report must contain the information referred to in Schedule 15 for the compliance period and must be signed by the authorized agent of the registered creator or foreign supplier.

• Marginal note:Non-application

  (3) Subsection (1) does not apply in respect of any compliance period that ends before January 1, 2024.

Marginal note:Compliance-credit revenue report

• 125 (1) A registered creator who is a charging-network operator must submit to the Minister, for each compliance period, a report respecting revenue received from the transfer of compliance credits that specifies

  • (a) the amount of revenue received during the compliance period from the transfer of compliance credits created under subsection 102(1), no later than the July 31 that follows the end of the compliance period; and

  • (b) the use that they made, during the compliance period and the following two compliance periods, of the revenue referred to in paragraph (a), no later than the July 31 that follows the end of the third compliance period.

• Marginal note:Contents of report

  (2) The compliance-credit revenue report required under subsection (1) must contain the information referred to in Schedule 16 and must be signed by the authorized agent of the registered creator.

• Marginal note:Non-application

  (3) Subsection (1) does not apply in respect of any compliance period that ends before January 1, 2023.

Marginal note:Compliance-credit balance report

• 126 (1) A registered creator or a primary supplier must submit to the Minister a compliance-credit balance report no later than the August 15 that follows the end of a compliance period.

• Marginal note:Contents of report

  (2) The compliance-credit balance report must contain the information referred to in Schedule 17 with respect to compliance credits in the registered creator’s or primary supplier’s accounts on the day on which the report is submitted and must be signed by the authorized agent of the registered creator or primary supplier, as the case may be.

• Marginal note:Non-application

  (3) Subsection (1) does not apply in respect of any compliance period that ends before January 1, 2023.

Marginal note:Compliance report

• 127 (1) A registered primary supplier must, no later than the July 31 that follows the end of each compliance period, submit a report to the Minister with respect to their compliance for the compliance period with the volumetric requirements set out in subsections 6(1) and 7(1) and the total reduction requirement.

• Marginal note:Contents of report

  (2) The compliance report must contain the information referred to in Schedule 18 for the compliance period and be signed by the authorized agent of the primary supplier.

• Marginal note:Non-application

  (3) Subsection (1) does not apply in respect of any compliance period that ends before July 1, 2023.

Marginal note:Complementary compliance report

• 128 (1) A registered primary supplier who, by the July 31 that follows the end of a compliance period, has not satisfied the total reduction requirement must submit to the Minister a complementary compliance report no later than the December 15 that follows the end of the compliance period.

• Marginal note:Contents of report

  (2) The complementary compliance report must contain the information referred to in Schedule 19 for the compliance period and must be signed by the authorized agent of the primary supplier.

• Marginal note:Non-application

  (3) Subsection (1) does not apply in respect of any compliance period that ends before July 1, 2023.

Verification

Obligation to Verify

Marginal note:Condition of eligibility — reports and applications

129 A report or application that is referred to in either section 130 or 131 is ineligible if it is not verified in accordance with the requirements set out in sections 132 to 154.

Marginal note:Verification of applications

• 130 (1) A person who makes either of the following applications must have the application verified by a verification body and must submit the verification report prepared by the body with that application:

  • (a) an application made under subsection 80(1) in respect of a carbon intensity determined in accordance with any of sections 76 to 79; or

  • (b) an application made under subsection 91(1) for the temporary approval of a carbon intensity.

• Marginal note:Non-application

  (2) Subsection (1) does not apply in respect of an application made before June 30, 2024.

Marginal note:Verification of reports

• 131 (1) A person who is required to submit a report under any of section 120, subsection 121(3) and sections 122 to 125 and 127 and 128 must have it verified by a verification body and obtain a verification report prepared by the body.

• Marginal note:Exception

  (2) However, a report is not required to be verified if,

  • (a) in the case of a report submitted under section 120, subsection 121(3) or section 122, no compliance credits were created during the compliance period to which the report relates; or

  • (b) in the case of a report submitted under section 125, no revenue was created from the transfer of compliance credits during the compliance period to which the report relates or the two preceding compliance periods.

• Marginal note:Submission of verification report

  (3) The person referred to in subsection (1) must submit the verification report to the Minister together with the report to which it relates.

Marginal note:Declarations

132 A person who is having either of the following reports verified must submit a copy of all the declarations referred to in paragraph 57(2)(a) to the verification body:

• (a) a report submitted under section 120, 121 or 122 that indicates that compliance credits were created by the carrying out of a CO₂e-emission-reduction project described in paragraph 30(d) or under any of sections 94 to 96, 99, 100 and 104, as the case may be, by the production in Canada or import into Canada of a low-carbon-intensity fuel after December 31, 2022; or

• (b) a report submitted under section 124.

Marginal note:Contents of verification report

133 The verification report must contain the information referred to in Schedule 20.

Marginal note:Management system and processes

134 The books and records related to a verification that must be retained in accordance with subsection 166(2) include any that

• (a) support the information contained in the application or the report being verified and allow that information to be recreated;

• (b) demonstrate that the application or the report being verified meets the requirements of these Regulations;

• (c) contain information that relates to the functioning of the verification body’s management system and processes and its compliance with that system and those processes during the period during which the verification was being conducted;

• (d) contain information with respect to the members of the team that conducted the verification and the role that each member performed with respect to the verification; or

• (e) describe the scope of the verification.

Marginal note:Submission of all reports

135 A person who makes an application or submits a report that is the subject of a verification report, including in the case where the verification results in the disclaimer that is referred to in paragraph 154(d), must submit to the Minister all verification reports that they have previously obtained with respect to the application or the report.

Marginal note:Monitoring plan

• 136 (1) A person who is having an application or a report verified must prepare a monitoring plan, keep it up to date and submit it with the application or the report to the verification body.

• Marginal note:Contents of plan

  (2) The monitoring plan must contain the information referred to in Schedule 21.

Requirements Respecting Verification Bodies

Marginal note:Accredited body

137 The verification of an application or a report must be conducted by an accredited verification body whose accreditation is neither suspended nor revoked.

Marginal note:Eligibility conditions for accreditation

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

  • (a) meets the requirements set out in International Standard ISO/IEC 17029, entitled Conformity assessment — General principles and requirements for validation and verification bodies and International Standard ISO 14065, entitled General principles and requirements for bodies validating and verifying environmental information, both of which are published by the International Organization for Standardization;

  • (b) meets any requirements set out in Part 1 of the Methods for Verification and Certification; and

  • (c) employs a verification team that meets the requirements set out in International Standard ISO 14066, entitled Greenhouse gases — Competence requirements for greenhouse gas validation teams and verification teams, published by the International Organization for Standardization.

• Marginal note:Designation of accreditation body

  (2) The Minister may designate an accreditation body as a designated accreditation body referred to in subsection (1) if it is a member of the International Accreditation Forum and meets the requirements set out in ISO/IEC Standard 17011.

Marginal note:Independent reviewer

139 For the purposes of subclause 9.6 of the Standards referred to in paragraph 138(1)(a), the person who conducts the review must be an independent reviewer who

• (a) has, at a minimum, the same competencies as those of a team leader, as set out in subclause 7.3.9 of ISO Standard 14065 referred to in that paragraph; and

• (b) is an employee of the verification body.

Marginal note:Technical accreditation

• 140 (1) A verification must be conducted by a verification body that is accredited, in accordance with section 138, as a verification body that is competent in any of the following areas that are applicable to the application or the report being verified:

  • (a) the production, import, distribution and delivery of fossil fuels, including hydrogen that is produced from such fuels;

  • (b) the production, import, distribution and delivery of low-carbon-intensity fuels, other than hydrogen;

  • (c) the production and distribution of electricity and any transactions related to electricity;

  • (d) the production, import, distribution and delivery of hydrogen from renewable sources.

• Marginal note:Definition of distribution

  (2) For the purposes of subsection (1), distribution includes distribution at a fuelling station.