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Renewable Fuels Regulations (SOR/2010-189)

Regulations are current to 2019-08-28 and last amended on 2013-10-25. Previous Versions

PART 2Compliance Unit Trading System (continued)

Creation of Compliance Units (continued)

Marginal note:Limitation

  •  (1) Despite sections 13 to 15, no compliance unit may be created in respect of

    • (a) a resulting blended batch or imported batch of gasoline, or a batch of gasoline produced from biocrude used as feedstock, if the volume of renewable fuel in the batch comprises more than 85% of the total volume of the batch;

    • (b) a resulting blended batch or imported batch of liquid petroleum fuel other than gasoline, or a batch of liquid petroleum fuel other than gasoline produced from biocrude used as feedstock, if the volume of renewable fuel in the batch comprises more than 80% of the total volume of the batch; and

    • (c) a batch of renewable fuel that results from blending.

  • Marginal note:Limitation — municipal solid waste

    (2) Despite sections 13 to 16, no compliance unit may be created in respect of renewable fuel, or biocrude, that was in whole or in part produced from municipal solid waste unless the participant has records that demonstrate that the municipal solid waste

    • (a) has a biogenic carbon content, based on random sampling done at least once every three years, of greater than 50% of the total carbon content, by mass; and

    • (b) is sorted and pre-processed at a facility that has removed all but trace quantities of any pesticides, paints, petroleum oils, solvents, sludges that contain heavy metals, material from tires or radioactive, corrosive, explosive or infectious materials.

Ownership of Compliance Units

Marginal note:Ownership of compliance units

  •  (1) On creation, a compliance unit is owned by the participant who created it.

  • Marginal note:Single owner

    (2) At any given time, a compliance unit may only have a single owner.

Marginal note:Maximum number of gasoline compliance units

  •  (1) Subject to subsection (3), the number of gasoline compliance units in respect of a gasoline compliance period that a primary supplier may own at the end of each month during the gasoline compliance period must not exceed the greater of

    • (a) six multiplied by the number of litres in the primary supplier’s gasoline pool at the end of that month, determined as if the compliance period ended at the end of that month, and

    • (b) 0.01 multiplied by the number of litres in the primary supplier’s gasoline pool for the preceding gasoline compliance period.

  • Marginal note:Maximum number of distillate compliance units

    (2) Subject to subsection (3), the number of distillate compliance units in respect of a distillate compliance period that a primary supplier may own at the end of each month during the distillate compliance period must not exceed the greater of

    • (a) six multiplied by the number of litres in the primary supplier’s distillate pool at the end of that month, determined as if the compliance period ended at the end of that month, and

    • (b) 0.004 multiplied by the number of litres

      • (i) in the case of the first distillate compliance period, in the primary supplier’s distillate pool determined using the pre-distillate compliance period as if it were the distillate compliance period in question, and

      • (ii) in any other case, in the primary supplier’s distillate pool for the preceding distillate compliance period.

  • Marginal note:Number of compliance units deemed not included

    (3) For the purpose of subsection (1) or (2), the number of gasoline compliance units or distillate compliance units, as the case may be, that a primary supplier owns at the end of a month is deemed not to include the number of those compliance units, in respect of the compliance period in question, that, during the next month, they transferred in trade that were in excess of those that they received in trade.

  • Marginal note:Subsection 6(4) read out

    (4) For the purpose of the determination referred to in subsection (1) or (2), section 6 is to be read without reference to its subsection (4).

  • SOR/2013-187, s. 5

Trading of Compliance Units

Marginal note:To primary suppliers

  •  (1) A compliance unit may only be transferred in trade to a primary supplier.

  • Marginal note:When trading permitted

    (2) Only a compliance unit created during, or carried forward into, a compliance period may be transferred in trade, and only if the trade occurs during the trading period in respect of the compliance period.

Carry Forward of Compliance Units

Marginal note:Carry forward — primary suppliers (gasoline)

  •  (1) Before the end of the trading period in respect of a gasoline compliance period, a primary supplier may carry forward their surplus gasoline compliance units — up to a maximum of 0.01 multiplied by the number of litres in their gasoline pool for that gasoline compliance period — into the next gasoline compliance period.

  • Marginal note:Surplus gasoline compliance units

    (2) The number of surplus gasoline compliance units referred to in subsection (1) is the number that equals the number of litres determined according to the following formula:

    RFG – (0.05 × PG)

    where

    RFG
    is the volume, expressed in litres, that the primary supplier determined for RFG in accordance with subsection 8(1) for that gasoline compliance period; and
    PG
    is the number of litres in the primary supplier’s gasoline pool for that gasoline compliance period, as determined in accordance with section 6.
  • SOR/2011-143, s. 7(E)

Marginal note:Carry forward — primary suppliers (distillate)

  •  (1) Before the end of the trading period in respect of a distillate compliance period, a primary supplier may carry forward their surplus distillate compliance units — up to a maximum of 0.004 multiplied by the number of litres in their distillate pool for that distillate compliance period — into the next distillate compliance period.

  • Marginal note:Surplus distillate compliance units

    (2) The number of surplus distillate compliance units referred to in subsection (1) is the number that equals the number of litres determined according to the following formula:

    RFD – (0.02 × PD)

    where

    RFD
    is the volume, expressed in litres, that the primary supplier determined for RFD in accordance with subsection 8(2) for that distillate compliance period; and
    PD
    is the number of litres in the primary supplier’s distillate pool for that distillate compliance period, as determined in accordance with section 6.
  • (3) [Repealed, SOR/2011-143, s. 8]

  • SOR/2011-143, s. 8

Marginal note:Carry forward into first distillate compliance period

  •  (1) On September 30, 2011, a primary supplier may carry forward into the first distillate compliance period distillate compliance units that they own that were created before July 1, 2011 and that have not been assigned, under subsection 7(3), as the value for DtGDG in subsection 8(1). The number of distillate compliance units that may be so carried forward must not exceed 0.004 multiplied by the number of litres in the primary supplier’s distillate pool determined using the pre-distillate compliance period as if it were the distillate compliance period in question.

  • Marginal note:Identification

    (2) A record referred to in section 31 or subsection 32(6) or a report referred to in section 33 or 39 that is related to the creation, transfer in trade, receipt in trade, carrying forward, cancellation, or assignment under subsection 7(3) as the value for DtGDG in subsection 8(1), of distillate compliance units — in the period that begins on July 1, 2011 and that ends on September 30, 2011 — must identify the number of those distillate compliance units that were created

    • (a) in that period; and

    • (b) before July 1, 2011.

  • Marginal note:Written statement

    (3) A participant who — in the period that begins on July 1, 2011 and that ends on September 30, 2011 — transfers in trade distillate compliance units must, on the transfer, provide to the primary supplier who receives in trade those distillate compliance units a written statement that indicates the number of those distillate compliance units that were created

    • (a) in that period; and

    • (b) before July 1, 2011.

  • SOR/2011-143, s. 9

Marginal note:Carry forward — elective participants

 An elective participant may, before the end of the trading period in respect of a compliance period, carry forward their compliance units — up to a maximum of the number of compliance units that they created during the compliance period — into the next compliance period. For greater certainty, no distillate compliance units may be carried forward by an elective participant into the first distillate compliance period.

  • SOR/2011-143, s. 9
 
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