Draft Regulations Amending the Fuel Charge Regulations
Amendments
1 The heading before section 1 of the Fuel Charge Regulations is replaced by the following:
Interpretation and Application
2 Section 1 of the Regulations is amended by adding the following in alphabetical order:
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)
3 The Regulations are amended by adding the following after section 1:
Definition of marketable natural gas
1.1 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 means natural gas that meets the specifications for pipeline transport and sale for general distribution to the public. (gaz naturel commercialisable)
Aviation fuel that contains bio-aviation fuel
1.2 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.
Natural gas that contains hydrogen
1.3 (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.
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.
4 The Regulations are amended by adding the following after section 5:
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 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 satisfied.
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).
Non-application
(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.
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 removed from a listed province otherwise than in a supply tank of a vehicle does not exceed 1000 L.
5 The Regulations are amended by adding the following after section 27:
Combustible waste burned at covered facility
28 For the purposes of section 27 of the Act, no charge is payable under section 25 of the Act in respect of combustible waste that is burned in a listed province by a person if the person is a registered emitter and the combustible waste is burned at a covered facility.
Application
6 Sections 1 and 2 and sections 1.2 and 1.3 of the Fuel Charge Regulations, as made by section 3, are deemed to have come into force on the day after Announcement Date.
7 Section 1.1 of the Fuel Charge Regulations, as made by section 3, is deemed to have come into force on January 1, 2020.
8 Section 4 applies in respect of fuel that is removed from a listed province after Announcement Date if the fuel was delivered by a registered distributor after that date.
9 Section 5 applies in respect of combustible waste burned after Announcement Date.
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