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Clean Fuel Regulations (SOR/2022-140)

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Regulations are current to 2024-05-01

Clean Fuel Regulations

SOR/2022-140

CANADIAN ENVIRONMENTAL PROTECTION ACT, 1999

Registration 2022-06-21

Clean Fuel Regulations

P.C. 2022-704 2022-06-20

Whereas, under subsection 332(1)Footnote a of the Canadian Environmental Protection Act, 1999Footnote b, the Minister of the Environment published in the Canada Gazette, Part I, on December 19, 2020, a copy of the proposed Clean Fuel Regulations, substantially in the annexed form, and persons were given an opportunity to file comments with respect to the proposed Regulations or to file a notice of objection requesting that a board of review be established and stating the reasons for the objection;

Whereas the Governor in Council is of the opinion that the proposed Regulations could make a significant contribution to the prevention of, or a reduction in, air pollution resulting, directly or indirectly, from the combustion of liquid fossil fuels;

And whereas, under subsection 140(4) of that Act, before recommending the proposed Regulations, the Minister of the Environment offered to consult with the governments of the provinces and the members of the National Advisory Committee who are representatives of Aboriginal governments;

Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of the Environment, makes the annexed Clean Fuel Regulations under sections 140Footnote c and 326 and subsection 330(2) of the Canadian Environmental Protection Act, 1999Footnote b and subsection 5(1) of the Environmental Violations Administrative Monetary Penalties ActFootnote d.

Interpretation

Marginal note:Definitions

  •  (1) The following definitions apply in these Regulations.

    account holder

    account holder, with respect to any account opened under section 28, means the primary supplier or registered creator for whom the Minister opened the account. (titulaire)

    Act

    Act means the Canadian Environmental Protection Act, 1999. (Loi)

    authorized agent

    authorized agent means, 

    • (a) in respect of a corporation, any officer of the corporation who is authorized to act on its behalf;

    • (b) in respect of an individual, that individual or any person authorized to act on behalf of that individual; and

    • (c) in respect of any other entity, any person authorized to act on behalf of that entity. (agent autorisé)

    baseline carbon intensity

    baseline carbon intensity means the weighted average carbon intensity of the gasoline or diesel used in Canada for the year 2016, as set out in subsection 5(3). (intensité en carbone de base)

    biogas

    biogas means a gaseous mixture that is recovered from the anaerobic decomposition of biomass and that consists primarily of methane and carbon dioxide and contains other constituents that prevent it from meeting the standard for injection into the nearest natural gas pipeline. (biogaz)

    biomass

    biomass means the biodegradable fraction of products, waste and residues of a biological origin — including plant and animal substances — originating from agriculture, forestry and other industries, such as fishing and aquaculture, as well as the fraction of waste, including industrial and municipal waste, of a biological origin. (biomasse)

    carbon intensity

    carbon intensity, in relation to a fuel, energy source, or material input that is renewable natural gas, biogas, renewable propane or hydrogen, means the quantity in grams of CO2e per megajoule of energy contained in that fuel, energy source or material input that is released over the life cycle of that fuel, energy source or material input, including during the activities carried out during the stages of the life cycle, such as

    • (a) the extraction or production of the feedstock used to produce the fuel, energy source or material input;

    • (b) the processing, refining or upgrading of the feedstock to produce the fuel, energy source or material input;

    • (c) the transportation or distribution of the feedstock, of intermediary products or of the fuel, energy source or material input; and

    • (d) the combustion of the fuel. (intensité en carbone)

    carbon-intensity contributor

    carbon-intensity contributor means a person who applies for the approval of a carbon intensity under subsection 80(1) for a set of activities carried out over the life cycle of a fuel in the liquid class or a low-carbon-intensity fuel with the intention to transfer the approved carbon intensity to a registered creator or foreign supplier or to another carbon-intensity contributor. (contributeur à l’intensité en carbone)

    charging-network operator

    charging-network operator means a person who operates a communication platform that collects data on the electricity supplied by a charging station and who is the owner of that data. (exploitant d’un réseau de recharge)

    charging-site host

    charging-site host means a person who owns or leases a charging station and who has the legal right to have the charging station installed.  (hôte d’une station de recharge) 

    charging station

    charging station means a device that is used in Canada to charge the battery on board an electric vehicle by supplying electricity to the electric vehicle and that is capable of communicating with a server, whether through the Internet or using a cellular signal or connected vehicle communications, to report the quantity of electricity supplied and the time at which it is supplied. (borne de recharge)

    CO2e

    CO2e means the quantity of carbon dioxide, expressed in grams or tonnes, that would be required to produce a warming effect equivalent to another greenhouse gas over a particular period of time, as set out in the Fuel LCA Model. (CO2e)

    compliance-credit transfer system

    compliance-credit transfer system means the system administered by the Minister for the transfer of credits in accordance with sections 105 to 112.  (mécanisme de cession des unités de conformité)

    compliance period

    compliance period means

    • (a) the period that begins on the day on which these Regulations are registered and ends on December 31, 2022;

    • (b) the period that begins on January 1, 2023 and ends on June 30, 2023;

    • (c) the period that begins on July 1, 2023 and ends on December 31, 2023; or

    • (d) after December 31, 2023, each calendar year. (période de conformité)

    co-processed low-carbon-intensity fuel

    co-processed low-carbon-intensity fuel means the portion of a fuel that is produced from a mixture of a petroleum feedstock and a non-petroleum feedstock that are used simultaneously in the same processing unit of a petroleum refinery or upgrader facility and that is a low-carbon-intensity fuel derived from a non-petroleum feedstock.  (combustible cotraité à faible intensité en carbone)

    co-processed low-carbon-intensity propane

    co-processed low-carbon-intensity propane means a co-processed low-carbon-intensity fuel that is a mixture that is gaseous at standard conditions and consists primarily of propane. (propane cotraité à faible intensité en carbone)

    crop

    crop includes a woody biomass crop with a rotational period that is not more than 25 years. (culture)

    deferred portion of the reduction requirements

    deferred portion of the reduction requirements, with respect to a compliance period, means the portion of the sum of the reduction requirements in respect of gasoline and diesel for that compliance period that has been deferred by a primary supplier in accordance with section 16, as increased in accordance with section 17 and as reduced in accordance with section 18. (partie reportée des exigences de réduction)

    diesel

    diesel means liquid petroleum fuel that

    • (a) is sold or represented as diesel or as a fuel suitable for use in a diesel engine; or

    • (b) evaporates at atmospheric pressure, has a boiling point between 130°C and 400°C and is suitable for use in a diesel engine. (diesel)

    diesel replacement

    diesel replacement means a liquid low-carbon-intensity fuel that is suitable for use in a diesel engine, furnace or open flame burner or that is used in aviation. (substitut du diesel)

    electric vehicle

    electric vehicle means a vehicle that is propelled by an electric motor whose source of electricity is a rechargeable battery that is charged from a source of electricity that is not on board the vehicle. It includes a plug-in hybrid electric vehicle. (véhicule électrique)

    eligible feedstock

    eligible feedstock means a feedstock that is eligible under section 46 and meets the requirements set out in sections 48 to 52, except if it is exempted under any of sections 53 to 55, as well as the requirements set out in section 57.  (charge d’alimentation admissible)

    EPA

    EPA means the United States Environmental Protection Agency.  (EPA)

    foreign supplier

    foreign supplier means the owner of a facility outside Canada at which a low-carbon-intensity fuel is produced or the person who leases, operates, controls or manages such a facility. (fournisseur étranger)

    Fuel LCA Model

    Fuel LCA Model means the fuel life-cycle assessment model that is developed by the Minister in accordance with ISO Standard 14040 and that consists of the procedures that must be followed to determine the carbon intensity of a fuel, energy source or material input using life-cycle inventories for various pathways. (modèle ACV des combustibles)

    fuelling station

    fuelling station means a facility in Canada at which vehicles are supplied with fuel or with hydrogen used as an energy source and includes a mobile facility. (station de ravitaillement)

    gaseous class

    gaseous class means a class of fuel consisting of propane and natural gas. (catégorie des combustibles gazeux)

    gasoline

    gasoline means liquid petroleum fuel that

    • (a) is sold or represented as gasoline, as a fuel suitable for use in a spark-ignition engine or as a fuel requiring only the addition of a low-carbon-intensity fuel or an oxygenate to make it suitable for use in a spark-ignition engine; or

    • (b) is suitable for use in a spark-ignition engine and has, as determined by the applicable test method listed in National Standard of Canada CAN/CGSB-3.5-2021, entitled Automotive Gasoline, the following characteristics:

      • (i) a vapour pressure of no less than 38 kPa,

      • (ii) an anti-knock index of no less than 80,

      • (iii) a distillation temperature at which 10% of the fuel has evaporated of no less than 35°C and no more than 70°C, and

      • (iv) a distillation temperature at which 50% of the fuel has evaporated of no less than 65°C and no more than 120°C. (essence)

    gasoline replacement

    gasoline replacement means a liquid low-carbon-intensity fuel that is suitable for use in a spark-ignition engine.  (substitut de l’essence)

    GPS

    GPS means global positioning system. (GPS)

    hydrogen fuel cell vehicle

    hydrogen fuel cell vehicle means a vehicle propelled solely by an electric motor that uses electricity produced by an electrochemical cell from hydrogen. (véhicule à pile à hydrogène)

    ISO/IEC Standard 17011

    ISO/IEC Standard 17011 means International Standard ISO/IEC 17011, entitled Conformity assessment — Requirements for accreditation bodies accrediting conformity assessment bodies, published by the International Organization for Standardization. (norme ISO/IEC 17011)

    ISO/IEC Standard 17021-1

    ISO/IEC Standard 17021-1 means the International Standard ISO/IEC 17021-1, entitled Conformity assessment — Requirements for bodies providing audit and certification of management systems — Part 1: Requirements, published by the International Organization for Standardization (norme ISO/IEC 17021-1)

    ISO/IEC Standard 17065

    ISO/IEC Standard 17065 means the International Standard ISO/IEC 17065, entitled Conformity assessment — Requirements for bodies certifying products, processes and services, published by the International Organization for Standardization. (norme ISO/IEC 17065)

    ISO Standard 14040

    ISO Standard 14040 means the International Standard ISO 14040, entitled Environmental management — Life cycle assessment — Principles and framework, published by the International Organization for Standardization. (norme ISO 14040)

    ISO Standard 14044

    ISO Standard 14044 means the International Standard ISO 14044, entitled Environmental management — Life cycle assessment — Requirements and guidelines, published by the International Organization for Standardization. (norme ISO 14044)

    ISO Standard 14064-2

    ISO Standard 14064-2 means the International Standard ISO 14064-2, entitled Greenhouse gases — Part 2: Specification with guidance at the project level for quantification, monitoring and reporting of greenhouse gas emission reductions or removal enhancements, published by the International Organization for Standardization. (norme ISO 14064-2)

    ISO Standard 14064-3:2019

    ISO Standard 14064-3:2019 means the International Standard ISO 14064-3:2019, entitled Greenhouse gases — Part 3: Specification with guidance for the verification and validation of greenhouse gas statements, published by the International Organization for Standardization, as it read on May 1, 2019. (norme ISO 14064-3:2019)

    ISO Standard 19011

    ISO Standard 19011 means the International Standard ISO 19011, entitled Guidelines for auditing management systems, published by the International Organization for Standardization. (norme ISO 19011)

    liquid class

    liquid class means a class of fuel consisting of the fossil fuels that are liquid at standard conditions.  (catégorie des combustibles liquides)

    low-carbon-intensity fuel

    low-carbon-intensity fuel means a liquid or gaseous fuel that is not a fuel in the liquid class or gaseous class and that has a carbon intensity, for the compliance period during which the fuel was produced or imported, that does not exceed

    • (a) 90% of the reference carbon intensity set out for that compliance period in item 1, column 2, of Schedule 1, in the case of a fuel that is in the liquid state at standard conditions;

    • (b) the reference carbon intensity set out for that compliance period in item 2, column 2, of Schedule 1, in the case of compressed renewable natural gas and liquefied renewable natural gas referred to in subsection 99(1), renewable natural gas referred to in subsection 100(1) or hydrogen referred to in paragraph 104(1)(b);

    • (c) the reference carbon intensity set out for that compliance period in item 3, column 2, of Schedule 1, in the case of renewable propane referred to in subsection 99(1) or 100(1) and co-processed low-carbon-intensity propane referred to in subsection 99(1);

    • (d) 90% of the reference carbon intensity set out for that compliance period in item 2, column 2, of Schedule 1, in the case of biogas or in the case of renewable natural gas and hydrogen that is not referred to in paragraph (b); or

    • (e) 90% of the reference carbon intensity set out for that compliance period in item 3, column 2, of Schedule 1, in the case of renewable propane and co-processed low-carbon-intensity propane that is not referred to in paragraph (c). (combustible à faible intensité en carbone)

    marine vessel

    marine vessel means any boat, ship or other vessel that is designed, used or capable of being used for navigation in, on or through water but is not designed for self-propulsion out of water. (navire)

    Methods for Verification and Certification

    Methods for Verification and Certification means the document entitled Methods for Verification and Certification — Clean Fuel Regulations that is developed and published by the Minister. (Méthodes de vérification et de certification)

    misstatement

    misstatement means an error, ommission or misreporting, as defined in Methods for Verification and Certification, in an application or report referred to in these Regulations.  (déclaration erronée)

    participant

    participant means a primary supplier who is registered with the Minister in accordance with subsection 10(1) or a registered creator who participates in the compliance-credit transfer system. (participant)

    petroleum feedstock

    petroleum feedstock means crude oil or a substance derived from crude oil or natural gas, if it is primarily used as a feedstock to produce a fossil fuel in a petroleum refinery or upgrader facility, but it does not include any feedstock that is derived from petrochemicals or other hydrocarbon streams that have undergone additional processing, such as gas-to-liquid processing. (charge d’alimentation à base de pétrole)

    primary supplier

    primary supplier means a person who

    • (a) owns, leases, operates, controls or manages a fuel production facility in Canada at which gasoline or diesel is produced; or

    • (b) imports gasoline or diesel into Canada. (fournisseur principal)

    provisional compliance credit

    provisional compliance credit means a compliance credit referred to in subsection 23(1). (unité de conformité provisoire)

    reduction requirement

    reduction requirement means the reduction requirement determined in accordance with section 9. (exigence de réduction)

    registered creator

    registered creator means a person registered with the Minister in accordance with subsection 25(1). (créateur enregistré)

    renewable natural gas

    renewable natural gas means gas that meets the standard for injection into the closest natural gas pipeline and that is either synthetic natural gas derived from biomass or gas derived from the processing of biogas. (gaz naturel renouvelable)

    renewable propane

    renewable propane means a mixture that is gaseous at standard conditions, is recovered from the processing of biomass and consists primarily of propane, but it does not include co-processed low-carbon-intensity propane. (propane renouvelable)

    residue

    residue means a substance that is produced in a production process but whose production is not a primary aim of the process. It does not include any substance that the process has been deliberately modified to produce. (résidu)

    scheme owner

    scheme owner has the same meaning as in subclause 3.11 of ISO/IEC Standard 17065. (propriétaire du régime)

    Specifications for Fuel LCA Model CI Calculations

    Specifications for Fuel LCA Model CI Calculations means the specifications that are developed and published by the Minister in respect of the calculation of the carbon intensity of a fuel, energy source or material input using the Fuel LCA Model. (spécifications pour le calcul de l’IC au moyen du modèle ACV des combustibles)

    standard conditions

    standard conditions means a temperature of 15°C (59°F) and a pressure of 101.325 kPa (14.696 psia). (conditions normales)

    total reduction requirement

    total reduction requirement means the sum of the reduction requirements in respect of gasoline and diesel for the compliance period that ended most recently, and the deferred portion of the reduction requirements for each preceding compliance period. (exigence de réduction totale)

    verification body

    verification body means a verification body referred to in section 137.  (organisme de vérification)

  • Marginal note:Hydrogen used as energy source

    (2) For the purposes of these Regulations, hydrogen referred to in paragraph 104(1)(a) is deemed to be a low-carbon-intensity fuel if the carbon intensity of the hydrogen, for the compliance period during which the hydrogen is used, does not exceed the reference carbon intensity set out for that compliance period in item 2, column 2, of Schedule 1.

  • Marginal note:Compressed gas and liquefied gas

    (3) In these Regulations,

    • (a) a reference to hydrogen includes compressed hydrogen and liquefied hydrogen;

    • (b) a reference to natural gas includes compressed natural gas and liquefied natural gas; and

    • (c) a reference to renewable natural gas includes compressed renewable natural gas and liquefied renewable natural gas.

  • Marginal note:Co-processed low-carbon-intensity fuel

    (4) The following provisions do not apply in respect of a co-processed low-carbon-intensity fuel:

    • (a) paragraphs 19(1)(b) and (c);

    • (b) paragraphs 20(b) and (c);

    • (c) paragraphs 57(1)(b) and (2)(d);

    • (d) subsection 59(2);

    • (e) section 75;

    • (f) section 76;

    • (g) subsection 86(2) and (8);

    • (h) section 91;

    • (i) section 94;

    • (j) section 95;

    • (k) subsection 97(2);

    • (l) section 100;

    • (m) section 108;

    • (n) section 123;

    • (o) sections 5 and 6 of Schedule 3; and

    • (p) sections 1 to 6 of Schedule 14; and

    • (q) section 8 of Schedule 15.

 

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