Clean Fuel Regulations (SOR/2022-140)

Marginal note:Information to be provided — section 78

83 In the case of a carbon intensity determined in accordance with section 78, an application made under section 80 must contain the information referred to in sections 4 and 6 of Schedule 8.

Marginal note:Information to be provided — section 79

84 In the case of a carbon intensity determined in accordance with section 79, an application made under section 80 must contain the information referred to in sections 5 and 6 of Schedule 8.

Marginal note:Approval

• 85 (1) The Minister must approve a carbon intensity for which an application for approval is made under section 80 if the Minister is satisfied that the determination of the carbon intensity is based on

  • (a) data and results that are verifiable;

  • (b) calculations that do not contain any error that attains any of the quantitative materiality thresholds referred to in paragraph 150(a);

  • (c) unit processes, modelling parameters, background data sets and a methodology that are appropriate for that determination and do not result in an underestimation of the carbon intensity;

  • (d) in the case of a determination made in accordance with section 76 or 77, a methodology that is consistent with ISO Standard 14040, ISO Standard 14044 and the Specifications for Fuel LCA Model CI Calculations; and

  • (e) with respect to an application referred to in section 130, an unqualified opinion issued in accordance with paragraph 154(a) or a qualified opinion issued in accordance with paragraph 154(b).

• Marginal note:Unique alphanumeric identifier

  (2) When the Minister approves the carbon intensity, the Minister must assign it a unique alphanumeric identifier.

Marginal note:End of validity

• 86 (1) The approved carbon intensity of a low-carbon-intensity fuel or material input ceases to be valid if a change is made to the extraction or production processes for the feedstock used to produce the fuel or material input or the production processes and that change is not consistent with the emission factors, input data, background data sets and methodology that were used to determine the carbon intensity and would result in,

  • (a) in the case where the carbon intensity was determined in accordance with paragraph 75(1)(b), production processes that are different than those used to determine the approved carbon intensity of the fuel or material input;

  • (b) in the case where the carbon intensity was determined in accordance with section 76, an actual carbon intensity of the fuel or material input — as specified in the carbon-intensity-pathway report referred to in subsection 123(1) — that is greater than the approved carbon intensity by at least

    • (i) 1 gCO₂e/MJ, if the absolute value of the approved carbon intensity is less than 20 gCO₂e/MJ,

    • (ii) 5%, if the absolute value of the approved carbon intensity is between 20 and 100 gCO₂e/MJ, and

    • (iii) 5 gCO₂e/MJ, if the absolute value of the approved carbon intensity is greater than 100 gCO₂e/MJ; and

  • (c) in the case where the carbon intensity was approved for a CO₂e-emission-reduction project described in paragraph 30(d), fuel production processes or conditions that are different than those indicated in the application made under subsection 80(1) for the approval of the carbon intensity.

• Marginal note:Non-compliance with section 123

  (2) The approved carbon intensity of a fuel or material input ceases to be valid if the registered creator, carbon-intensity contributor or foreign supplier who made the application for approval under subsection 80(1) fails to comply with the requirements set out in section 123.

• Marginal note:Non-compliance with section 124

  (3) The approved carbon intensity of a gaseous or liquid low-carbon-intensity fuel that was produced using a quantity of an eligible feedstock referred to in paragraph 46(1)(b) or (c) ceases to be valid if the registered creator or foreign supplier who made the application for approval under subsection 80(1) fails to comply with the requirements set out in section 124.

• Marginal note:Non-compliance with specific quantification method

  (4) The approved carbon intensity of a co-processed low-carbon-intensity fuel ceases to be valid if a registered creator or foreign supplier referred to in subsection 80(1) fails to comply with the applicable specific emission-reduction quantification method established under subsection 32(1).

• Marginal note:Non-compliance with record requirements

  (5) The approved carbon intensity of a low-carbon-intensity fuel or material input may be invalidated by the Minister if the registered creator, carbon-intensity contributor or foreign supplier who made the application for approval under subsection 80(1) fails to comply with any of the requirements set out in sections 166 and 168 in relation to the approved carbon intensity.

• Marginal note:End of validity — certain gases

  (6) The approved carbon intensity of propane, liquefied natural gas or compressed natural gas determined in accordance with section 78 ceases to be valid if a change is made to the compression or liquefaction process for the fuel and that change is not consistent with the emission factors, input data, background data sets and methodology that were used to determine the carbon intensity and would result in an actual carbon intensity of the fuel — as specified in the carbon-intensity-pathway report referred to in subsection 123(1) — that is greater than the approved carbon intensity by at least

  • (a) 1 gCO₂e/MJ, if the absolute value of the approved carbon intensity is less than 20 gCO₂e/MJ;

  • (b) 5%, if the absolute value of the approved carbon intensity is between 20 and 100 gCO₂e/MJ; and

  • (c) 5 gCO₂e/MJ, if the absolute value of the approved carbon intensity is greater than 100 gCO₂e/MJ.

• Marginal note:End of validity — electricity

  (7) The approved carbon intensity of electricity determined in accordance with section 79 ceases to be valid if a change is made to the source and quantity of electricity supplied to electric vehicles or facilities and that change would result in an actual carbon intensity of the electricity — as specified in the carbon-intensity-pathway report referred to in subsection 123(1) — that is greater than the approved carbon intensity by at least

  • (a) 1 gCO₂e/MJ, if the absolute value of the approved carbon intensity is less than 20 gCO₂e/MJ;

  • (b) 5%, if the absolute value of the approved carbon intensity is between 20 and 100 gCO₂e/MJ; and

  • (c) 5 gCO₂e/MJ, if the absolute value of the approved carbon intensity is greater than 100 gCO₂e/MJ.

• Marginal note:Transferred carbon intensity

  (8) The approved carbon intensity of a fuel or material input ceases to be valid if the registered creator, carbon-intensity contributor or foreign supplier who made the application for the approval of that carbon intensity under subsection 80(1) has determined it by using a carbon intensity that ceases to be valid under any of subsections (1) to (7).

• Marginal note:End of validity — December 31, 2025

  (9) A carbon intensity determined in accordance with any of sections 76 to 79 that was approved by the Minister before July 1, 2024 ceases to be valid on December 31, 2025. The registered creator, carbon-intensity contributor or foreign supplier may, on or after July 1, 2024, submit a new application to the Minister for the approval of the carbon intensity under subsection 80(1).

Marginal note:New application

• 87 (1) A registered creator or foreign supplier may apply to replace a carbon intensity approved by the Minister under subsection 85(1) with the actual carbon intensity determined in accordance with section 76, 78 or 79, in the case where the actual carbon intensity — as specified in the carbon-intensity-pathway report referred to in subsection 123(1) — is lower than the approved carbon intensity and the difference between the two intensities is at least

  • (a) 1 gCO₂e/MJ, if the absolute value of the approved carbon intensity is less than 20 gCO₂e/MJ;

  • (b) 5%, if the absolute value of the approved carbon intensity is between 20 and 100 gCO₂e/MJ; and

  • (c) 5 gCO₂e/MJ, if the absolute value of the approved carbon intensity is greater than 100 gCO₂e/MJ.

• Marginal note:New application — carbon-intensity contributor

  (2) A carbon-intensity contributor may apply to replace a carbon intensity that has been approved by the Minister under subsection 85(1) with the actual carbon intensity determined in accordance with section 76 or 79 in the case where the actual carbon intensity — as specified in the carbon-intensity-pathway report referred to in subsection 123(1) — is lower than the approved carbon intensity and the difference between the two intensities is at least

  • (a) 1 gCO₂e/MJ, if the absolute value of the approved carbon intensity is less than 20 gCO₂e/MJ;

  • (b) 5%, if the absolute value of the approved carbon intensity is between 20 and 100 gCO₂e/MJ; and

  • (c) 5 gCO₂e/MJ, if the absolute value of the approved carbon intensity is greater than 100 gCO₂e/MJ.

Marginal note:Adjustment of credits

• 88 (1) A registered creator may — in the first annual credit-creation report that they submit under section 120 or first credit-adjustment report that they submit under section 122 following the approval under subsection 85(1) of the carbon intensity of a fuel or energy source determined in accordance with section 76, 78 or 79 — request that compliance credits be created for the three compliance periods preceding the approval of the carbon intensity if

  • (a) the carbon intensity indicated in that credit-creation report or that credit-adjustment report was determined in accordance with section 75 or was temporarily approved under subsection 91(4);

  • (b) the fuel for which the carbon intensity was approved under subsection 85(1) is produced from the same type of feedstock and in the same production process as the fuel or electricity used during the preceding compliance periods for which a credit adjustment is requested; and

  • (c) the carbon intensity that was approved under subsection 85(1) was determined in accordance with section 76, 78 or 79 after July 1, 2024.

• Marginal note:Number of adjusted compliance credits

  (2) The number of compliance credits that may be created by a registered creator under subsection (1) is equal to the difference between

  • (a) the maximum number of compliance credits that would be created for the three compliance periods preceding the approval of the carbon intensity using the information contained in the report that they submit under section 120 or 122 in respect of those compliance periods and using the carbon intensity that was determined in accordance with section 76, 78 or 79, as the case may be, and

  • (b) the total number of compliance credits that were created by the registered creator for the three compliance periods preceding the approval of the carbon intensity using the carbon intensity that was determined in accordance with section 75 or that was temporarily approved under subsection 91(4), as the case may be.

Marginal note:Adjustment — actual carbon intensity

89 A registered creator may — in the credit-adjustment report that they submit under subsection 122(1) — request that any compliance credits that were created for a compliance period using the carbon intensity that was determined in accordance with section 76 and approved under subsection 85(1) be adjusted based on the actual carbon intensity of the fuel as specified in the carbon-intensity-pathway report that they submit under subsection 123(1) for that compliance period.

Marginal note:Adjustment after June 30, 2024

• 90 (1) If an approved carbon intensity determined in accordance with section 76, 77, 78 or 79 ceases to be valid on December 31, 2025 through the operation of subsection 86(9) and the registered creator, carbon-intensity contributor or foreign supplier made, before September 30, 2025, a new application to the Minister under subsection 80(1) for approval of the carbon intensity, the registered creator may — in the first annual credit-creation report that they submit under section 120 or first credit-adjustment report that they submit under section 122 following the approval under subsection 85(1) of the carbon intensity — request that compliance credits be created for the period beginning on the day on which they became eligible to create compliance credits under subsection 25(2) or 25(3) or paragraph 31(2)(b) or 32(2)(d), as the case may be, and ending on the day on which the new application is approved by the Minister.

• Marginal note:Number of adjusted compliance credits

  (2) The number of compliance credits that may be created under subsection (1) is equal to the difference between

  • (a) the maximum number of compliance credits that would be created by the registered creator for the period referred to in subsection (1) using the information contained in the report that they submit under section 120 or 121 in respect of the compliance periods that fall within that period and using the carbon intensity that was determined in accordance with any of sections 76 to 79, as the case may be, and

  • (b) the total number of compliance credits that were created by the registered creator for the period referred to in subsection (1) using the carbon intensity that they used to create compliance credits before June 30, 2024.

Marginal note:Application for temporary approval

• 91 (1) A registered creator or foreign supplier who has data on the operation of a facility for a period of 3 or more consecutive months, but no more than 24 consecutive months, with respect to the activities referred to in the definition carbon intensity in subsection 1(1) may apply for temporary approval of a carbon intensity.

• Marginal note:Determination of carbon intensity

  (2) The carbon intensity is to be determined in accordance with section 76, 78 or 79, as the case may be, using the data for the period referred to in subsection (1) instead of the data for 24 consecutive months that is required by those sections.

• Marginal note:Application

  (3) The application must be made in accordance with sections 80 to 84.

• Marginal note:Temporary approval

  (4) The Minister must grant temporary approval of the carbon intensity if the Minister is satisfied that the determination of the carbon intensity is based on the factors set out in subsection 85(1).

• Marginal note:Unique alphanumeric identifier

  (5) The Minister must assign a unique alphanumeric identifier to the temporarily approved carbon intensity.

• Marginal note:Equivalent to approved carbon intensity

  (6) The temporarily approved carbon intensity is to be treated as if it were approved under subsection 85(1) until

  • (a) the day that is 24 months after the day on which the temporary approval is granted, in the case where the registered creator or foreign supplier who applied for temporary approval has not applied for approval of that carbon intensity under section 80; or

  • (b) the day on which the Minister approves the carbon intensity under subsection 85(1), in any other case.

• Marginal note:Period of validity

  (7) The temporarily approved carbon intensity ceases to be valid on the day referred to in paragraph (6)(a) or (b), as the case may be, or on any earlier day on which there is a change to the extraction or production processes for the feedstock used to produce the fuel or to the fuel production processes and the change is not consistent with the emission factors, input data, background data sets or methodology that were used to determine the temporarily approved carbon intensity.

Marginal note:Registration of foreign supplier

• 92 (1) A foreign supplier may register as a foreign supplier 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 they produce low-carbon-intensity fuel,

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

    • (ii) the type of low-carbon-intensity fuel produced at the facility.

• Marginal note:Pre-condition for application

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