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Clean Fuel Regulations (SOR/2022-140)

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Regulations are current to 2024-02-06

Compliance Credits (continued)

Creation (continued)

Displacement of Fossil Fuel Usage (continued)

Marginal note:Other circumstances of non-conformity

  •  (1) A certification scheme may, if a producer of a feedstock has not complied with the scheme in circumstances other than those referred to in subsections 71(1) and 72(1), provide for a period during which the producer must take corrective action with respect to the circumstances of non-conformity.

  • Marginal note:Time limit for corrective action

    (2) The period within which the producer must take the corrective action ends on the earlier of

    • (a) the day on which the next surveillance audit of the feedstock is to be conducted, 

    • (b) the day on which the certification is renewed,

    • (c) the day that is 12 months after the day on which the producer of the feedstock is notified of the non-conformity by the certification body, and

    • (d) the day specified by the certification scheme.

Marginal note:Prior certification under another certification scheme

 An application for the certification of a feedstock must contain the following information:

  • (a) a statement as to whether the feedstock has, in the previous five years, been the subject of a certification under another certification scheme;

  • (b) all relevant information relating to a certification of the feedstock under another certification scheme, including audit reports and any decisions to suspend or revoke the certification during the previous five years, as well as the reasons for any suspension or revocation; and

  • (c) a statement specifying the reasons for which any producer of the feedstock withdrew from another certification scheme before the first surveillance audit.

Determination of Carbon Intensity

Marginal note:Low-carbon-intensity fuel

  •  (1) The carbon intensity of a low-carbon-intensity fuel, other than hydrogen produced from a fossil fuel, and the carbon intensity of a material input that is a renewable natural gas, biogas, renewable propane or hydrogen, other than hydrogen produced from a fossil fuel, is, at the election of the registered creator or foreign supplier,

    • (a) the default carbon intensity referred to in section 1 of Schedule 6; or

    • (b) determined by the formula

      CIf + CIp + CIcl + CIe + CItd + CIc

      where

      CIf
      is the quantity of CO2e emissions set out in section 2 of Schedule 6 that represents the quantity of CO2e that is associated with the extraction or production, as the case may be, of the feedstock from which the fuel or material input is produced, per megajoule of energy produced,
      CIp
      is the quantity of CO2e emissions set out in section 3 of Schedule 6 that represents the quantity of CO2e that is released during the production of the fuel or material input from the feedstock, the transportation of the feedstock and intermediary products used to produce the fuel or material input and the distribution of the fuel or material input to end users, per megajoule of energy produced,
      CIcl
      is the quantity of CO2e emissions set out in section 4 of Schedule 6 that represents the quantity of CO2e that is released during the compression or liquefaction of the fuel or material input, per megajoule of energy produced,
      CIe
      is the quantity of CO2e emissions set out in section 5 of Schedule 6 that represents the additional quantity of CO2e that is associated with the production of electricity used during the production of the fuel or material input, per megajoule of energy produced,
      CItd
      is the quantity of CO2e emissions set out in section 6 of Schedule 6 that represents the additional quantity of CO2e that is released during the transportation of the feedstock and intermediary products used to produce the fuel or material input and the distribution of the fuel or material input to end users, per megajoule of energy produced, in the case of a total transportation distance of no less than 1500 km, and
      CIc
      is the quantity of CO2e emissions set out in section 7 of Schedule 6 that represents the quantity of CO2e that is released during the combustion of the fuel or the use of the material input, per megajoule of energy produced.
  • Marginal note:Use limited to 12 months

    (2) The default carbon intensity referred to in paragraph (1)(a) must not be used to create compliance credits for a period of more than 12 consecutive months or more than 12 months during two consecutive compliance periods, unless the Minister, at the written request of the registered creator, approves the use of that carbon intensity for any longer period specified by the Minister.

  • Marginal note:Use pending approval

    (3) However, in the case of an application under subsection 80(1) for the approval of a carbon intensity determined in accordance with paragraph (1)(b) or subsection 76(1), the applicant may use the default carbon intensity referred to in paragraph (1)(a) to create compliance credits during the period beginning on the day on which the application is made and ending on the day on which the carbon intensity is approved under subsection 85(1), even if that period is longer than 12 consecutive months.

  • Marginal note:Input data for less than three months

    (4) A registered creator or foreign supplier may elect to use the carbon intensity referred to in paragraph (1)(b) if they have input data, for a period of less than three consecutive months, derived from the activities referred to in the definition carbon intensity in subsection 1(1) that are carried out over the life cycle of the fuel or the life cycle of the material input, as the case may be.

  • Marginal note:Use limited to three compliance periods

    (5) The carbon intensity referred to in paragraph (1)(b) must not be used to create credits other than for a period of no more than three consecutive compliance periods.

  • Marginal note:Fossil fuels

    (6) For the purposes of subsections 98(2), 99(3) and (4) and 104(2), the carbon intensity of a fuel that is hydrogen, propane, natural gas, liquefied natural gas and compressed natural gas is, at the election of the registered creator, the amount set out in

    • (a) section 8 of Schedule 6; or

    • (b) the Specifications for Fuel LCA Model CI Calculations.

  • Marginal note:Electricity

    (7) The carbon intensity of electricity for a province in which a charging station is located is, at the election of the registered creator, the amount set out for that province in

    • (a) section 9 of Schedule 6; or

    • (b) the Specifications for Fuel LCA Model CI Calculations.

Marginal note:Fuel LCA Model — registered creator or foreign supplier

  •  (1) A registered creator or foreign supplier may elect to determine the carbon intensity of a low-carbon-intensity fuel, or the carbon intensity of a material input that is a renewable natural gas, biogas, renewable propane or hydrogen, using the Fuel LCA Model in accordance with the option set out in either paragraph (3)(a) or (b), if they have input data, for a period of 24 consecutive months during the period of 30 months that immediately precedes the day on which they make the election, derived from the activities referred to in the definition carbon intensity in subsection 1(1) that are carried out over the life cycle of the fuel or material input, as the case may be.

  • Marginal note:Carbon-intensity contributor

    (2) A carbon-intensity contributor may elect to determine the carbon intensity of a low-carbon-intensity fuel or material input that is a renewable natural gas, biogas, renewable propane or hydrogen in accordance with the option set out in either paragraph (3)(a) or (b), if they have input data, for a period of 24 consecutive months during the period of 30 months that immediately precedes the day on which they make the election, derived from the activities referred to in the definition carbon intensity in subsection 1(1) that are carried out over the life cycle of the fuel or material input, as the case may be.

  • Marginal note:Options on election

    (3) The carbon intensity may be determined based on the input data referred to in subsection (1) or (2) in accordance with either of the following options:

    • (a) an existing pathway from the Fuel LCA Model; or

    • (b) a new pathway created by the registered creator, carbon-intensity contributor or foreign supplier from the Fuel LCA Model, in the case where

      • (i) the fuel or material input is not indicated in the Fuel LCA Model,

      • (ii) the feedstock used to produce the fuel or material input is not indicated in the Fuel LCA Model, or

      • (iii) the criteria provided in the Specifications for Fuel LCA Model CI Calculations for creating a new pathway are met.

Marginal note:Fuel LCA Model — co-processed low-carbon-intensity fuel

 A registered creator or foreign supplier must determine the carbon intensity of a co-processed low-carbon-intensity fuel using the Fuel LCA Model in accordance with the applicable specific emission-reduction quantification method established under subsection 32(1) and either of the following options:

  • (a) an existing pathway from the Fuel LCA Model; or

  • (b) a new pathway created by the registered creator or foreign supplier from the Fuel LCA Model, in the case where

    • (i) the fuel is not indicated in the Fuel LCA Model,

    • (ii) the feedstock used to produce the fuel is not indicated in the Fuel LCA Model, or

    • (iii) the criteria provided in the Specifications for Fuel LCA Model CI Calculations for creating a new pathway are met.

Marginal note:Compressed and liquefied gases

  •  (1) Instead of determining the carbon intensity of propane, liquefied natural gas or compressed natural gas in accordance with subsection 75(6), a registered creator may elect to make that determination using the Fuel LCA Model in accordance with the option set out in either paragraph (3)(a) or (b), if they have input data, for a period of 24 consecutive months during the period of 30 months that immediately precedes the day on which they make the election, respecting the operation of a fuelling station or the liquefaction process for propane, renewable propane, co-processed low-carbon intensity propane, compressed natural gas, renewable compressed natural gas, liquefied natural gas or renewable liquefied natural gas.

  • Marginal note:Renewable fuels

    (2) In the case of renewable propane, co-processed low-carbon-intensity propane, renewable compressed natural gas and renewable liquefied natural gas, the determination is to be made as if

    • (a) the renewable propane or co-processed low-carbon-intensity propane were propane;

    • (b) the renewable compressed natural gas were compressed natural gas; or

    • (c) the liquefied renewable natural gas were liquefied natural gas.

  • Marginal note:Options on election

    (3) The carbon intensity may be determined based on the input data referred to in subsection (1) in accordance with either of the following options:

    • (a) an existing pathway from the Fuel LCA Model; or

    • (b) a new pathway created by the registered creator or foreign supplier from the Fuel LCA Model, in the case where

      • (i) the fuel is not indicated in the Fuel LCA Model,

      • (ii) the feedstock used to produce the fuel is not indicated in the Fuel LCA Model, or

      • (iii) the criteria provided in the Specifications for Fuel LCA Model CI Calculations for creating a new pathway are met.

Marginal note:Electricity

  •  (1) A registered creator or carbon-intensity contributor may elect to determine, in accordance with subsection (3), the carbon intensity of the electricity supplied to electric vehicles by a charging station that is not intended primarily for use by the occupants of a private dwelling-place if they have input data respecting the source and quantity of that electricity for a period of 24 consecutive months during the period of 30 months that immediately precedes the day on which they make the election.

  • Marginal note:Electricity — fuelling station or facility

    (2) A registered creator or carbon-intensity contributor may elect to determine, in accordance with subsection (3), the carbon intensity of the electricity supplied to a fuelling station or facility if they have input data respecting the source and quantity of that electricity for a period of 24 consecutive months during the period of 30 months that immediately precedes the day on which they make the election.

  • Marginal note:Options on election

    (3) The carbon intensity may be determined based on the input data referred to in subsection (1) or (2) in accordance with either of the following options:

    • (a) an existing pathway from the Fuel LCA Model; or

    • (b) a new pathway created by the registered creator or carbon-intensity contributor from the Fuel LCA Model, in the case where the source of the electricity is not indicated in the Fuel LCA Model or where the criteria indicated in the Specifications for Fuel LCA Model CI Calculations for creating a new pathway are met.

Marginal note:Application for approval of carbon intensity

  •  (1) A registered creator, carbon-intensity contributor or foreign supplier may apply to the Minister for the approval of a carbon intensity determined in accordance with paragraph 75(1)(b) or any of sections 76 to 79, as the case may be.

  • Marginal note:Carbon-intensity additional value

    (2) In the case of an application for the approval of a carbon intensity determined in accordance with section 76, 78 or 79, the registered creator, carbon-intensity contributor or foreign supplier may add an additional value to that carbon intensity, in which case the carbon intensity that is the subject of the application for approval would be the sum of the additional value and the carbon intensity determined using the Fuel LCA Model.

  • Marginal note:Imported fuel

    (3) Despite subsection (1), in the case of a fuel produced outside Canada and imported into Canada in respect of which compliance credits are created under paragraph 19(1)(b) or 20(b) or when a CO2e-emission-reduction project described in paragraph 30(d) is carried out, only the foreign supplier of the fuel may make the application for the approval of the carbon intensity.

  • Marginal note:Distinct application — each feedstock

    (4) A distinct application for the approval of a carbon intensity is required for each type of feedstock that is used to produce a low-carbon-intensity fuel or a material input that is renewable natural gas, biogas, renewable propane or hydrogen, including in the case where two or more types of feedstock are used simultaneously to produce the low-carbon-intensity fuel or the material input.

Marginal note:Pathway approval

  •  (1) Before making an application under subsection 80(1) for the approval of a carbon intensity based on a new pathway referred to in paragraph 76(3)(b), 77(b), 78(3)(b) or 79(3)(b), the registered creator, carbon-intensity contributor or foreign supplier must apply to the Minister for the approval of the new pathway.

  • Marginal note:Application

    (2) The application for the approval of a new pathway must include the information referred to in Schedule 7.

  • Marginal note:Approval

    (3) The Minister must approve the new pathway if the Minister is satisfied that the pathway is based on

    • (a) a plan to collect verifiable data and results;

    • (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 the pathway; and

    • (d) a methodology that is consistent with ISO Standard 14040, ISO Standard 14044 and the Specifications for Fuel LCA Model CI Calculations.

  • Marginal note:Unique alphanumeric identifier

    (4) When the Minister approves the new pathway, the Minister must assign a unique alphanumeric identifier to it.

Marginal note:Information to be provided

  •  (1) An application made under section 80 in respect of a carbon intensity determined in accordance with paragraph 75(1)(b) or section 76 or 77 must contain the information referred to in section 1 of Schedule 8.

  • Marginal note:Additional information — paragraph 75(1)(b)

    (2) In the case of a carbon intensity determined in accordance with paragraph 75(1)(b), the application must also contain the information referred to in section 2 of Schedule 8.

  • Marginal note:Additional information — section 76

    (3) In the case of a carbon intensity determined in accordance with section 76, the application must also contain the information referred to in sections 3 and 6 of Schedule 8, as well as any information specified in any applicable emission-reduction quantification method established under subsection 31(1) or 32(1).

  • Marginal note:Additional information — section 77

    (4) In the case of a carbon intensity determined in accordance with section 77, the application must also contain the information referred to in sections 3 and 6 of Schedule 8, as well as any information specified in any applicable specific emission-reduction quantification method established under subsection 32(1).

 

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