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

Interpretation

Marginal note:Definitions

1 The following definitions apply in these Regulations.

Act

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

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)

PART 1Interest Rate

Marginal note:Definitions

2 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

3 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

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

• (a) July 1, 2019;

• (b) April 1, 2020;

• (c) April 1, 2021; and

• (d) April 1, 2022.

Marginal note:July 1, 2019 — Yukon and Nunavut

3.2 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

PART 2Registered Specified Rail Carriers

Marginal note:Prescribed persons — rail carriers

4 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

• 5 (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.

PART 4Fishers

Marginal note:Prescribed listed provinces — fishers

6 For the purposes of subparagraph 17(2)(a)(iii.1) of the Act, the following listed provinces are prescribed:

• (a) Ontario;

• (b) [Repealed, SOR/2020-261, s. 5]

• (c) Manitoba;

• (d) Saskatchewan;

• (e) Yukon; and

• (f) Nunavut.

PART 5Greenhouse Operators

Marginal note:Charge — diversion by greenhouse operator

• 7 (1) For the purposes of section 26 of the Act, if at any time fuel that is qualifying greenhouse fuel is delivered in a listed province by a registered distributor in respect of that type of fuel to a particular person that is a greenhouse operator and an exemption certificate referred to in subsection 9(1) applies in respect of the delivery in accordance with section 36 of the Act, the particular person must pay a charge in respect of the fuel and the listed province in the amount determined under subsection (6) to the extent that, at a later time, the fuel is

  • (a) used by the particular person in the listed province otherwise than in eligible greenhouse activities; or

  • (b) delivered by the particular person to another person unless the other person is a registered distributor in respect of that type of fuel and an exemption certificate applies in respect of the delivery in accordance with section 36 of the Act.

• Marginal note:When charge payable

  (2) For the purposes of section 26 of the Act, the charge referred to in subsection (1) becomes payable at the later time referred to in that subsection.

• Marginal note:Charge not payable

  (3) For the purposes of section 27 of the Act, the charge referred to in subsection (1) is not payable if the particular person is not, at the later time referred to in that subsection, a greenhouse operator or if a charge is payable under section 37 of the Act in respect of the fuel.

• Marginal note:Charge — ceasing to be a greenhouse operator

  (4) For the purposes of section 26 of the Act, if at any time fuel that is qualifying greenhouse fuel is delivered in a listed province by a registered distributor in respect of that type of fuel to a particular person that is a greenhouse operator, if an exemption certificate referred to in subsection 9(1) applies in respect of the delivery in accordance with section 36 of the Act and if the particular person ceases, at a later time, to be a greenhouse operator, the particular person must pay a charge in respect of the fuel and the listed province in the amount determined under subsection (6) to the extent that, at the later time, the fuel is held in the listed province by the particular person. The charge becomes payable at the later time.

• Marginal note:Charge not payable

  (5) For the purposes of section 27 of the Act, the charge referred to in subsection (4) is not payable if

  • (a) at the later time referred to in that subsection, the particular person is registered as a distributor in respect of that type of fuel;

  • (b) at the later time referred to in that subsection, the particular person is a registered emitter, but only to the extent that, at the later time, the fuel is held at, or is in transit to, a covered facility of the particular person; or

  • (c) a charge is payable under section 37 of the Act in respect of the fuel.

• Marginal note:Amount of charge

  (6) For the purposes of section 26 of the Act, the amount of the charge payable under subsection (1) or (4) in respect of the fuel and the listed province is equal to the amount determined by the formula:

  A × B × 0.8

  where

  A

  is the quantity of the fuel in respect of which the charge becomes payable; and

  B

  is the rate in respect of fuel of that type for the listed province applicable at the time the charge becomes payable.

Marginal note:Exemption certificate — greenhouse operator

8 For the purposes of subparagraph 36(1)(b)(viii) of the Act, a greenhouse operator is a prescribed person and the prescribed circumstances are that the fuel is for use exclusively in eligible greenhouse activities.

Marginal note:Application — delivery to greenhouse operator

• 9 (1) For the purposes of subsection 40(3) of the Act, the amount of a charge in respect of fuel and a listed province payable under subsection 17(1) of the Act is to be determined in accordance with this section if

  • (a) the fuel is a qualifying greenhouse fuel;

  • (b) the other person referred to in subsection 17(1) of the Act is a greenhouse operator at the particular time referred to in that subsection;

  • (c) an exemption certificate applies in respect of the delivery referred to in subsection 17(1) of the Act in accordance with section 36 of the Act; and

  • (d) the exemption certificate includes a declaration by the other person that the other person is a greenhouse operator and that the fuel is for use exclusively in eligible greenhouse activities.

• Marginal note:Amount of charge

  (2) If subsection (1) applies, the amount of the charge payable in respect of the fuel and the listed province is equal to the amount determined by the formula:

  A × B × 0.2

  where

  A

  is the quantity of the fuel in respect of which the charge becomes payable; and

  B

  is the rate in respect of fuel of that type for the listed province applicable at the time the charge becomes payable.

Marginal note:Amount of charge — adjustment day

10 For the purposes of the fuel charge system and of applying subsection 38(1) of the Act in respect of fuel that is a qualifying greenhouse fuel and that is held at the beginning of an adjustment day in a listed province by a person that is a greenhouse operator, the formula in that subsection and the descriptions in that formula are adapted as follows:

[A − (0.8 × B)] × (C − D)

where

A

is the quantity of the fuel;

B

is the quantity of the fuel that was delivered to the person by a registered distributor in respect of that type of fuel and in respect of which an exemption certificate referred to in subsection 9(1) of the Fuel Charge Regulations applies in respect of the delivery in accordance with section 36;

C

is the rate in respect of fuel of that type for the listed province applicable on the adjustment day; and

D

is

• (a) zero, if

  • (i) the adjustment day is commencement day, or

  • (ii) the adjustment day is July 1, 2019 and the listed province is Yukon or Nunavut, and

• (b) the rate in respect of fuel of that type for the listed province applicable on the day before the adjustment day, in any other case.