eligible heating activity

eligible heating activity means the use of light fuel oil exclusively for providing heat to a home, building or similar structure but not for generating heat in an industrial process, including a commercial process that involves removing moisture from a good. (activité de chauffage admissible)

Marginal note:Amount of charge — adjustment day

16 Subject to section 31, 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 power plant fuel and that is held at the beginning of an adjustment day in a listed province by a person that is a remote power plant operator, the formula in that subsection and the descriptions in that formula are adapted as follows:

PART 10Eligible Heating Activities after November 8, 2023 and before April 2027

Marginal note:Charge not payable — delivery for use in eligible heating activities

29 For the purposes of section 27 of the Act, no charge is payable under subsection 17(1) of the Act in respect of a quantity of light fuel oil that is delivered by a registered distributor in respect of light fuel oil to a person if the light fuel oil is for use exclusively in eligible heating activities, the person is not a registered distributor in respect of light fuel oil and the quantity of light fuel oil is delivered to the person after November 8, 2023 but before April 2027.

Marginal note:Charge — diversion from eligible heating activities

• 30 (1) For the purposes of section 26 of the Act, if at any time light fuel oil is delivered in a listed province by a registered distributor in respect of light fuel oil to a person and no charge is payable in respect of the delivery of the light fuel oil because of section 29, the person must pay a charge in respect of the light fuel oil and the listed province in the amount determined under section 40 of the Act to the extent that, at a later time, the light fuel oil is

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

  • (b) delivered by the person to another person unless the other person is the registered distributor 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:Amount of charge — adjustment day before April 2, 2027

31 For the purposes of the fuel charge system and of applying subsection 38(1) of the Act in respect of light fuel oil that is held in a listed province by a person at the beginning of an adjustment day that is after November 8, 2023 and before April 2, 2027, the formula in that subsection and the descriptions in that formula are adapted as follows:

[(A − B) − C] × (D − E)

where

A

is the quantity of the fuel;

B

is the quantity of the fuel that is held by the person for use exclusively in eligible heating activities;

C

is

• (a) if the person is a remote power plant operator, the quantity of the fuel that

  • (i)  was delivered to the person by a registered distributor in respect of that type of fuel and in respect of which an exemption certificate applies in respect of the delivery in accordance with section 36, and

  • (ii) is not included in the determination of B, and

• (b) in any other case, zero;

D

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

E

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

Marginal note:Registration — delivery for use in eligible heating activities

32 For the purposes of paragraph 55(3)(c) of the Act, a person may apply before April 2027 under subsection 55(3) of the Act to be registered as a distributor in respect of light fuel oil if the person carries on the business of selling, delivering or distributing light fuel oil and, in the ordinary course of that business, delivers in a listed province light fuel oil that is for use in eligible heating activities.