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Fuel Charge Regulations (2018, c. 12, s. 187)

Regulations are current to 2024-05-28 and last amended on 2023-07-01. Previous Versions

Fuel Charge Regulations

2018, c. 12, s. 187

GREENHOUSE GAS POLLUTION PRICING ACT

Registration 2018-06-21

Fuel Charge Regulations

[Enacted by section 187 of chapter 12 of the Statutes of Canada, 2018, in force on assent June 21, 2018.]

Interpretation

Marginal note:Definitions

 The following definitions apply in these Regulations.

Act

Act means the Greenhouse Gas Pollution Pricing Act. (Loi)

bio-aviation fuel

bio-aviation fuel means a particular substance

  • (a) that is derived entirely from biological matter available on a renewable or recurring basis;

  • (b) that may contain water if the proportion of the water does not exceed 1% of the particular substance;

  • (c) that may contain other substances, materials or things that are not described in paragraph (a) or (b) if the combined proportion of those other substances, materials or things does not exceed 6% of the particular substance; and

  • (d) that is suitable for generating power by means of an aircraft engine when used

    • (i) on its own,

    • (ii) after being blended with aviation gasoline or aviation turbo fuel,

    • (iii) after being blended with an aviation gasoline-like blendstock to produce aviation gasoline, or

    • (iv) after being blended with an aviation turbo fuel-like blendstock to produce aviation turbo fuel. (bio-carburant d’aviation)

eligible greenhouse

eligible greenhouse means a greenhouse all or substantially all of which is used for the growing of vegetables, fruits, bedding plants, flowers, ornamental plants, tree seedlings, medicinal plants or other plants. (serre admissible)

eligible greenhouse activity

eligible greenhouse activity means the use of a qualifying greenhouse fuel to heat an eligible greenhouse or to supplement carbon dioxide in an eligible greenhouse in order to grow or produce plants. (activité de serre admissible)

export

export means export from Canada. (exportation)

fuel charge system

fuel charge system has the same meaning as in subsection 168(1) of the Act. (régime de redevance sur les combustibles)

greenhouse operator

greenhouse operator means a person that carries on a business of growing vegetables, fruits, bedding plants, flowers, ornamental plants, tree seedlings, medicinal plants or other plants in eligible greenhouses with a reasonable expectation of profit. (exploitant de serre)

main electrical network

main electrical network means a network for the distribution of electricity that is subject to the standards of the North American Electric Reliability Corporation. (réseau électrique principal)

qualifying greenhouse fuel

qualifying greenhouse fuel means a type of fuel that is marketable natural gas or propane. (combustible de serre admissible)

qualifying power plant fuel

qualifying power plant fuel means a type of fuel that is light fuel oil or marketable natural gas. (combustible de centrale électrique admissible)

remote community

remote community means a geographic area that is not serviced by a main electrical network and that is not serviced by a distribution system. (collectivité éloignée)

remote power plant

remote power plant means a power plant that

  • (a) generates electricity for general distribution to the public in a remote community;

  • (b) is not connected to a main electrical network; and

  • (c) is not connected to a distribution system. (centrale électrique éloignée)

remote power plant operator

remote power plant operator means a person that operates a remote power plant. (exploitant de centrale électrique éloignée)

Marginal note:Definition of marketable natural gas

 For the purposes of the fuel charge system, the definition marketable natural gas in section 3 of the Act is modified as follows:

marketable natural gas

marketable natural gas means natural gas that meets the specifications for pipeline transport and sale for general distribution to the public. (gaz naturel commercialisable)

Application

Marginal note:Aviation fuel that contains bio-aviation fuel

 For the purposes of subsection 8(8) of the Act, if a quantity of fuel that is aviation gasoline or aviation turbo fuel contains a particular proportion of bio-aviation fuel (expressed as a percentage), for the purposes of Part 1 of the Act, the quantity of the fuel is deemed to be the number of litres determined by the formula

A × (100% − B)

where

A
is the number of litres that the fuel would occupy at 15°C; and
B
is the particular proportion.

Marginal note:Natural gas that contains hydrogen

  •  (1) For the purposes of subsection 8(8) of the Act, if a quantity of fuel that is marketable natural gas or non-marketable natural gas contains a particular proportion of hydrogen (expressed as a percentage), for the purposes of Part 1 of the Act, the quantity of the fuel is deemed to be the number of cubic metres determined by the formula

    A × (100% − B)

    where

    A
    is the number of cubic metres that the fuel would occupy at 15°C and 101.325 kPa; and
    B
    is the particular proportion.
  • Marginal note:Natural gas that contains hydrogen and biomethane

    (2) Despite subsection (1) and subsection 8(7) of the Act, for the purposes of subsection 8(8) of the Act, if a quantity of fuel that is marketable natural gas or non-marketable natural gas contains a particular combined proportion of hydrogen and biomethane (expressed as a percentage), for the purposes of Part 1 of the Act, the quantity of the fuel is deemed to be the number of cubic metres determined by the formula

    A × (100% − B)

    where

    A
    is the number of cubic metres that the fuel would occupy at 15°C and 101.325 kPa; and
    B
    is the particular combined proportion.

PART 1Interest Rate

Marginal note:Definitions

 The following definitions apply in this Part.

basic rate

basic rate, in respect of a particular quarter, means the rate that is the simple arithmetic mean, expressed as a percentage per year and rounded to the next higher whole percentage if the mean is not a whole percentage, of all amounts each of which is the average equivalent yield, expressed as a percentage per year, of Government of Canada Treasury Bills that mature approximately three months after their date of issue and that are sold at auctions of Government of Canada Treasury Bills during the first month of the quarter preceding the particular quarter. (taux de base)

quarter

quarter means any period of three consecutive months beginning on January 1, April 1, July 1 or October 1. (trimestre)

Marginal note:Prescribed rates of interest

 For the purposes of Part 1 of the Act, the prescribed rate of interest in effect during a particular quarter is

  • (a) in the case of interest to be paid to the Receiver General, the sum of the basic rate in respect of the particular quarter and 4%;

  • (b) in the case of interest to be paid or applied on an amount payable by the Minister to a person (other than a corporation), the sum of the basic rate in respect of the particular quarter and 2%;

  • (c) in the case of interest to be paid or applied on an amount payable by the Minister to a corporation, the basic rate in respect of the particular quarter; and

  • (d) in any other case, the sum of the basic rate in respect of the particular quarter and 4%.

PART 1.1Adjustment Day

Marginal note:Adjustment day

 For the purposes of the definition adjustment day in section 3 of the Act, the following days are prescribed:

  • (a) July 1, 2019;

  • (a.1) January 1, 2020;

  • (b) April 1, 2020;

  • (c) April 1, 2021;

  • (d) April 1, 2022;

  • (e) April 1, 2023;

  • (e.1) July 1, 2023;

  • (f) April 1, 2024;

  • (g) April 1, 2025;

  • (h) April 1, 2026;

  • (i) April 1, 2027;

  • (j) April 1, 2028;

  • (k) April 1, 2029; and

  • (l) April 1, 2030.

Marginal note:July 1, 2019 — Yukon and Nunavut

 Except if section 10 or 16 applies, for the purposes of the fuel charge system and of applying subsection 38(1) of the Act in respect of the adjustment day that is July 1, 2019, paragraph (a) of the description of B in that subsection is adapted as follows:

  • (a) if the listed province is Yukon or Nunavut, zero, and

Marginal note:January 1, 2020 — Alberta

 Except if section 10 or 16 applies, for the purposes of the fuel charge system and applying subsection 38(1) of the Act in respect of the adjustment day that is January 1, 2020, paragraph (a) of the description of B in that subsection is adapted as follows:

  • (a) if the listed province is Alberta, zero, and

Marginal note:July 1, 2023 — Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and Labrador

 Except if section 10 or 16 applies, for the purposes of the fuel charge system and applying subsection 38(1) of the Act in respect of the adjustment day that is July 1, 2023, paragraph (a) of the description of B in that subsection is adapted as follows:

  • (a) if the listed province is Nova Scotia, New Brunswick, Prince Edward Island or Newfoundland and Labrador, zero, and

PART 1.2Rates of Charge

Marginal note:Prescribed condition — rates after March 31, 2023

  •  (1) For the purposes of paragraph (b) of the definition rate in section 3 of the Act, the rate in respect of a type of fuel, or in respect of combustible waste, for a listed province at a particular time that is after March 31, 2023 is equal to the rate that is set out in whichever column of Table 5 in Schedule 2 to the Act is applicable for the period that includes the particular time and that is opposite that type of fuel or combustible waste, as the case may be, set out in column 2 of that Table.

  • Marginal note:Exception — Yukon and Nunavut

    (2) Despite subsection (1), for the purposes of paragraph (b) of the definition rate in section 3 of the Act, the rate in respect of a type of fuel for a listed province at a particular time that is after March 31, 2023 is equal to zero dollars per litre if

    • (a) the listed province is Yukon or Nunavut; and

    • (b) the type of fuel is aviation gasoline or aviation turbo fuel.

PART 2Registered Specified Rail Carriers

Marginal note:Prescribed persons — rail carriers

 A person listed in the schedule is prescribed for the purposes of paragraph 62(1)(b) of the Act.

PART 3Rebates

Marginal note:Rebate — fuel exported by non-resident

  •  (1) For the purposes of section 48 of the Act, if at a particular time a quantity of fuel is exported by a person that is not resident in Canada and not registered for the purposes of Part 1 of the Act and if the quantity of fuel was delivered at an earlier time to the person in a listed province by a registered distributor in respect of that type of fuel, the Minister must pay a rebate to the registered distributor in respect of the quantity of fuel, the listed province and the reporting period of the registered distributor that includes the particular time if

    • (a) a charge under section 17 of the Act was payable by the registered distributor at the earlier time in respect of the quantity of fuel and the listed province and that charge was taken into account in the determination of the net charge for the reporting period of the registered distributor that includes the earlier time;

    • (b) during the period that begins at the earlier time and ends at the particular time, the quantity of fuel is not further processed, transformed or altered in Canada except to the extent reasonably necessary or incidental to its transportation; and

    • (c) the person provides to the registered distributor, and the registered distributor retains, evidence satisfactory to the Minister of the exportation of the quantity of fuel by the person.

  • Marginal note:Amount of rebate

    (2) For the purposes of section 48 of the Act, the amount of the rebate under subsection (1) is equal to the amount of the charge referred to in paragraph (1)(a).

  • Marginal note:Non-application

    (3) The rebate under subsection (1) is not payable to the extent that the fuel is exported in a supply tank of a vehicle.

  • Marginal note:Non-application

    (4) The rebate under subsection (1) is not payable if the type of fuel is gasoline, kerosene, light fuel oil or propane and the quantity of the fuel that is exported otherwise than in a supply tank of a vehicle does not exceed 1000 L.

 

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