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

PART 1.2Rates of Charge

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

• 3.4 (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

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.

Marginal note:Rebate — fuel removed from listed province

• 5.1 (1) For the purposes of section 48 of the Act, if a quantity of fuel is, at a particular time, removed from a listed province and brought into another province by a person that is neither registered nor required to be registered as a distributor in respect of that type of fuel and if the quantity of fuel was delivered in the listed province at an earlier time to the person 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 the following conditions are met:

  • (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 the listed province except to the extent reasonably necessary or incidental to its transportation;

  • (c) if the other province is a listed province, a charge under section 19 or 20 of the Act was payable by the person at the particular time in respect of the quantity of fuel and the other province and that charge was taken into account in the determination of the net charge for the reporting period of the person that includes the particular time; and

  • (d) the person provides to the registered distributor, and the registered distributor retains, evidence satisfactory to the Minister that the quantity of fuel was removed at the particular time from the listed province and that the conditions in paragraph (b) and, if applicable, paragraph (c) are met.

• 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 — supply tank

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

• Marginal note:Non-application — small quantity

  (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 removed from a listed province 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) Nova Scotia;

• (b.1) New Brunswick;

• (c) Manitoba;

• (c.1) Prince Edward Island;

• (d) Saskatchewan;

• (d.1) Alberta;

• (d.2) Newfoundland and Labrador;

• (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.