Clean Fuel Regulations (SOR/2022-140)
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Regulations are current to 2024-10-30 and last amended on 2024-09-30. Previous Versions
Compliance Credits (continued)
Creation (continued)
Displacement of Fossil Fuel Usage (continued)
Marginal note:Exemption — no net expansion
54 (1) The Minister may, on application from the national level of government of a country, exempt a feedstock that is a crop from the application of section 51 if the Minister is satisfied that the country from which the feedstock originates has not, since July 1, 2020, undergone a net expansion of agricultural land, taking into account the following factors:
(a) any net expansion since July 1, 2020 to the national borders within which agricultural land is measured;
(b) the total amount of land within those national borders that was agricultural land on July 1, 2020;
(c) data from the preceding year on the harvesting of land, including satellite data, aerial photography, census data and agricultural survey data;
(d) data on the use of land to harvest crops between July 1, 2020 and the beginning of the preceding year, including satellite data, aerial photography, census data and agricultural survey data;
(e) any factors that have had or may have an effect on the use of agricultural land within those national borders, including agricultural practices, economic considerations and the content, efficacy and enforcement of applicable laws;
(f) the method of identifying which entity will gather and analyze data and submit it to the Minister, as well as the reliability and credibility of that entity;
(g) evidence with respect to whether the data and methods used to evaluate the net expansion of agricultural land are reliable and transparent;
(h) any comments from the public that the Minister receives; and
(i) any information that is necessary to determine whether the country from which the feedstock originates has, since July 1, 2020, undergone a net expansion of agricultural land.
Marginal note:Conditions
(2) The exemption must not be granted by the Minister unless
(a) the national level of government of the country from which the feedstock originates has provided to the Minister, in English or French, information in respect of the factors referred to in paragraphs (1)(a) to (g) and (i);
(b) the national level of government of the country from which the feedstock originates has provided to the Minister a letter, in English or French, that is signed by an individual with a role comparable to a Minister who is responsible for the part of the government with primary expertise in agricultural land-use patterns and agricultural practices, data and statistics and, in the letter, the individual confirms that
(i) all supporting data for the factors referred to in paragraphs (1)(a) to (g) and (i) have been reviewed by that part of the government, and
(ii) the data supports the conclusion that the country from which the feedstock originates has not, since July 1, 2020, undergone a net expansion of agricultural land; and
(c) information in respect of the factors referred to in paragraphs (1)(a) to (g) and (i) has been published on the Department of the Environment’s website and the public has been given an opportunity to submit comments with respect to that information and the proposed exemption for a period of at least 60 days.
Marginal note:Period of validity
(3) The exemption takes effect on the day on which it is granted and ceases to be valid one year after that day, unless the Minister grants a subsequent exemption under subsection (1).
Marginal note:Publication
(4) The Minister must publish on the Department of the Environment’s website, for each exemption that is granted under subsection (1) with respect to a feedstock, a notice of the exemption that sets out the name of the country from which the feedstock originates and the date on which the exemption takes effect.
Marginal note:Exemption — other laws
55 (1) The Minister may, on application from a national or subnational level of government of a country, exempt a feedstock that originates from that country from the application of subsection 48(1), section 49 or subparagraph 52(c)(i), (ii), (iii) or (iv) if the Minister is satisfied that the feedstock is
(a) in the case of subsection 48(1), subject to laws that effectively prohibit the harvesting of the feedstock in any area that provides a habitat for any rare, vulnerable or threatened species;
(b) in the case of section 49, subject to laws that effectively require it to be harvested and transported in accordance with measures to monitor, prevent and control the introduction, spread and establishment of damaging agents, such as pests, invasive species and disease;
(c) in the case of subparagraph 52(c)(i), subject to laws that
(i) effectively promote timely forest regeneration of the land where the feedstock is harvested to its pre-harvesting condition using species of trees that are ecologically suited to the site and drawn, if possible, from native species or local genotypes, and
(ii) include enforcement requirements for forest regeneration on the land where the feedstock is harvested;
(d) in the case of subparagraph 52(c)(ii), subject to laws that
(i) effectively prevent adverse effects on naturally regenerating stands containing multi-layered canopies with trees near their maximum longevity as well as standing and fallen dead trees and forest debris at varying stages of decomposition, and
(ii) include enforcement requirements for the purpose of protecting stands described in subparagraph 52(c)(ii);
(e) in the case of subparagraph 52(c)(iii) as it relates to soil, subject to laws that
(i) effectively require that forest management and related activities be carried out on the land where the feedstock is harvested in a manner that prevents adverse effects on the quantity and quality of the soil and mitigates any adverse effects that do occur, and
(ii) include enforcement requirements for the purpose of preventing adverse effects on the quantity and quality of the soil;
(f) in the case of subparagraph 52(c)(iii) as it relates to surface and ground water resources, subject to laws that
(i) effectively require that forest management and related activities be carried out on the land where the feedstock is harvested in a manner that prevents adverse effects on the quantity and quality of surface and ground water resources and mitigates any adverse effects that do occur, and
(ii) include enforcement requirements for the purpose of preventing adverse effects on the quantity and quality of surface and ground water resources;
(g) in the case of subparagraph 52(c)(iii) as it relates to biodiversity, subject to laws that
(i) effectively require that forest management and related activities be carried out on the land where the feedstock is harvested in a manner that prevents adverse effects on biodiversity and mitigates any adverse effects that do occur, and
(ii) include enforcement requirements for the purpose of preventing adverse effects on biodiversity; and
(h) in the case of subparagraph 52(c)(iv), subject to laws that
(i) effectively require that forest management and related activities be carried out on the land where the feedstock is harvested in a manner that maintains the connectivity of watercourses, and
(ii) include enforcement requirements for the purpose of maintaining the connectivity of watercourses.
Marginal note:Language of documents
(2) Any information or document that is relevant to the Minister’s decision regarding whether to exempt a feedstock under subsection (1) must be provided to the Minister in English or French.
Marginal note:Period of validity
(3) An exemption granted under subsection (1) ceases to be valid on the ier of
(a) the day that is seven years after the day on which the exemption is granted by the Minister, and
(b) the day on which the Minister determines that, following the granting of the exemption, amendments have been made to the laws applicable to the exempted feedstock and, taking into account such amendments, the Minister is no longer satisfied that the laws meet the conditions referred to in subsection (1).
Marginal note:Publication
(4) The Minister must publish on the Department of the Environment’s website, for each exemption that is granted under subsection (1) with respect to a feedstock, a notice of the exemption that sets out the title of the laws to which the feedstock is subject and the date on which the exemption takes effect.
Marginal note:Low-carbon-intensity fuel
56 A person must not use a quantity of low-carbon-intensity fuel to create compliance credits by carrying out a CO2e-emission-reduction project described in paragraph 30(d) or to create compliance credits under any of sections 94 to 96, 99, 100 and 104, unless
(a) the fuel is produced from a quantity of an eligible feedstock that is referred to in paragraph 46(1)(a) and the conditions set out in subsection 57(1) are met in respect of the feedstock; or
(b) the fuel is produced from a quantity of an eligible feedstock that is referred to in paragraph 46(1)(b) or (c), the conditions set out in subsection 57(2) are met in respect of the feedstock and the registered creator who produced the fuel or the foreign supplier ensures that, for each period referred to in subsection 45(3), the quantity of the eligible feedstock that is used at each of their facilities to produce the fuel is less than or equal to the quantity determined by the formula set out in subsection 47(2).
Marginal note:Producer or importer — paragraph 46(1)(a)
57 (1) A feedstock referred to in paragraph 46(1)(a) is not eligible unless
(a) the registered creator ensures that any person who produces a low-carbon-intensity fuel using the feedstock retains the following records:
(i) delivery records, contracts and invoices with respect to each quantity of the feedstock that is brought to any of their facilities,
(ii) sales records for all low-carbon-intensity fuel, other than co-processed low-carbon-intensity fuel, that was produced using all or any portion of a quantity of the feedstock, and
(iii) records for all co-processed low-carbon-intensity fuel that demonstrate that it was produced using all or any portion of a quantity of eligible feedstock; and
(b) the registered creator who imports into Canada a quantity of a low-carbon-intensity fuel produced using the feedstock retains the following records with respect the quantity of low-carbon-intensity fuel:
(i) delivery records, contracts and invoices, and
(ii) sales records.
Marginal note:Eligibility — paragraph 46(1)(b) or (c)
(2) A feedstock referred to in paragraph 46(1)(b) or (c) is not eligible unless
(a) declarations are made by the following persons in accordance with any of subsections 58(1) to (4) at least once every year:
(i) every person who possesses all or any portion of a quantity of the feedstock when it is mixed with another quantity of any feedstock,
(ii) every person who possesses all or any portion of a quantity of the feedstock when it is processed,
(iii) every person who possesses all or any portion of a quantity of the feedstock when it is divided into multiple portions,
(iv) the person who is responsible for obtaining all or any portion of a quantity of the feedstock from its first point of use or disposal, in the case of a feedstock referred to in paragraph 46(1)(b), and
(v) the person who is responsible for harvesting all or any portion of a quantity of the feedstock, in the case of a feedstock referred to in paragraph 46(1)(c);
(b) the registered creator or foreign supplier ensures that any person who harvests, mixes, processes, divides or obtains all or any portion of a quantity of the feedstock retains
(i) the declaration that they made under paragraph (a),
(ii) a copy of the declaration made under paragraph (a), if any, by the person who possessed that quantity immediately before they did, and
(iii) records that establish the quantity of the feedstock that enters and is removed from the site where it is harvested, mixed, processed, divided or obtained;
(c) the registered creator or foreign supplier retains records in accordance with subsection 59(1);
(d) the registered creator who imports into Canada a low-carbon-intensity fuel that was produced using the feedstock retains records in accordance with subsection 59(2); and
(e) the registered creator or foreign supplier has a methodology in place to determine whether, each time a quantity of the feedstock is removed from the site where it is harvested, mixed, processed, divided or obtained, the quantity that is removed from the site is less than or equal to the quantity determined by the formula set out in subsection 47(1).
Marginal note:Declaration by harvester
58 (1) A declaration made by a person referred to in subparagraph 57(2)(a)(v) must contain the following information:
(a) their name, civic address, postal address, telephone number and, if any, email address;
(b) if an authorized agent is making the declaration on behalf of the person, the name, civic address, postal address, telephone number and, if any, email address of the authorized agent;
(c) the GPS coordinates to the fifth decimal place and, if any, civic address of the site where the feedstock that is the subject of the declaration was harvested;
(d) an indication of whether any part of that site is on land referred to in subsection 48(1) and, if so, confirmation that they have a record of the Minister’s authorization under subsection 48(2);
(e) if the feedstock is sold, the name and civic and postal address of the person to whom it is sold;
(f) the type of the feedstock;
(g) the quantity of the feedstock that is sold, expressed in kilograms or cubic metres, as applicable;
(h) a confirmation that the requirements set out in section 48 are met with respect to the feedstock or that the feedstock is the subject of an exemption granted under paragraph 55(1)(a);
(i) a confirmation that the requirements set out in section 49 are met with respect to the feedstock or that feedstock is the subject of an exemption granted under paragraph 55(1)(b);
(j) if the feedstock is a crop, a confirmation that it was not harvested on land described in section 51 or is the subject of an exemption granted under subsection 53(1) or 54(1);
(k) if the feedstock is derived from forest biomass, a confirmation that
(i) it was harvested in accordance with the requirements set out in paragraph 52(c)(i) or is the subject of an exemption granted under paragraph 55(1)(c),
(ii) it was harvested in accordance with the requirements set out in subparagraph 52(c)(ii) or is the subject of an exemption granted under paragraph 55(1)(d),
(iii) it was harvested in accordance with the requirements set out in subparagraph 52(c)(iii) as it relates to soil or is the subject of an exemption granted under paragraph 55(1)(e),
(iv) it was harvested in accordance with the requirements set out in subparagraph 52(c)(iii) as it relates to surface and ground water resources or is the subject of an exemption granted under paragraph 55(1)(f),
(v) it was harvested in accordance with the requirements set out in subparagraph 52(c)(iii) as it relates to biodiversity or is the subject of an exemption granted under paragraph 55(1)(g), and
(vi) it was harvested in accordance with the requirements set out in subparagraph 52(c)(iv) or is the subject of an exemption granted under paragraph 55(1)(h);
(l) if the feedstock is a crop, a confirmation that it meets the requirements set out in section 50;
(m) the unique identifier for the declaration that they use for their internal accounting purposes;
(n) the date on which the declaration is made; and
(o) the signature of the person or their authorized agent.
Marginal note:Certification
(2) If a feedstock referred to in paragraph 46(1)(c) is certified by a certification body in accordance with section 61, the declaration must be accompanied by a copy of the certificate and contain
(a) an indication of the requirements set out in sections 48 to 52 that the certified feedstock meets;
(b) the name of the certification scheme under which it was certified;
(c) the name of the certification body that certified the feedstock; and
(d) the day referred to in paragraph 70(2)(c) or (d) on which the certificate is expected to cease to be valid.
Marginal note:Declaration — foreign supplier
(3) A declaration made by a foreign supplier must contain the following information:
(a) the name, civic address, postal address, telephone number and, if any, email address of the foreign supplier;
(b) if an authorized agent is making the declaration on behalf of the foreign supplier, the name, civic address, postal address, telephone number and, if any, email address of the authorized agent;
(c) the GPS coordinates to the fifth decimal place and, if any, civic address of the site where the mixing, processing or division, as the case may be, of the quantity of the feedstock was carried out or of the site where the quantity was obtained;
(d) the type of the feedstock that is used;
(e) the quantity of the feedstock that is used at the site referred to in paragraph (c) by the person mixing, processing, dividing or obtaining feedstock to produce low-carbon-intensity fuel, expressed in kilograms or cubic metres, as applicable;
(f) a confirmation that the requirements set out in subsection 47(2) were met with respect to any portion of the quantity of feedstock that was used to produce low-carbon-intensity fuel and that the foreign supplier has retained evidence of the compliance at the site where the low-carbon-intensity fuel was produced;
(g) a confirmation that the requirements set out in sections 48 to 52 are met with respect to the feedstock except if it is exempted under any of sections 53 to 55;
(h) the total quantity of low-carbon-intensity fuel that the foreign supplier produced outside Canada and that they sold for import into Canada;
(i) a confirmation that the foreign supplier is in compliance with subsection 59(1);
(j) in the case of a person who is the producer of the low-carbon-intensity fuel made using the feedstock, any alphanumeric identifier assigned to the fuel’s carbon intensity;
(k) the unique identifier for the declaration that the foreign supplier uses for their internal accounting purposes;
(l) the date on which the declaration is made; and
(m) the signature of the foreign supplier or their authorized agent.
Marginal note:Declaration by other person
(4) A declaration made by a person referred to in any of subparagraphs 57(2)(a)(i) to (iv), other than a registered creator or foreign supplier, must contain the following information:
(a) the name, civic address, postal address, telephone number and, if any, email address of the person;
(b) if an authorized agent is making the declaration on behalf of the person, the name, civic address, postal address, telephone number and, if any, email address of the authorized agent;
(c) the GPS coordinates to the fifth decimal place and, if any, civic address of the site where the mixing, processing or division, as the case may be, of the quantity of the feedstock was carried out or of the site where the quantity was obtained;
(d) if the feedstock is sold, the name and civic and postal address of the person to whom it was sold;
(e) the type of the feedstock;
(f) the quantity of the feedstock that is removed from the site referred to in paragraph (c), expressed in kilograms or cubic metres, as applicable;
(g) a confirmation that, when the feedstock was removed from that site or was mixed, divided or obtained at that site, the requirements set out in subsection 47(1) were met with respect to the feedstock and that the person who mixed, divided or obtained the feedstock has retained evidence of compliance at that site;
(h) a confirmation that the requirements set out in sections 48 to 52 are met with respect to the feedstock except if it is exempted under any of sections 53 to 55;;
(i) in the case of a declaration referred to in subparagraph 57(2)(a)(iv) with respect to a quantity of a feedstock that is referred to in any of subparagraphs 46(1)(b)(ii) to (vi), a confirmation that the feedstock meets the requirements set out in section 50;
(j) in the case of a declaration referred to in subparagraph 57(2)(a)(iv), a confirmation that they have retained at the site referred to in paragraph (c), for each quantity of feedstock referred to in any of subparagraphs 46(1)(b)(iv) to (vi), delivery records, contracts and invoices that describe the location where that feedstock was first used;
(k) the unique identifier for the declaration that they use for their internal accounting purposes;
(l) the date on which the declaration is made; and
(m) the signature of the person or their authorized representative.
Marginal note:Unique identifier
(5) The unique identifier referred to in paragraphs (1)(m), (3)(k) and (4)(k) must be unique to each declaration and indicate the lot number of the feedstock to which it applies. It must be used in all records related to material balances at the site to which it applies.
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