Revised questions and answers on the Federal Renewable Fuels Regulations: records and reporting


Section 26 - Request for Samples and Other Information

R.1: Why does Environment Canada want samples of my fuel?

This provision is an enabling provision that permits Environment Canada to obtain samples of fuels to conduct any necessary analysis for the administration of these regulations and for verifying compliance with the regulations. Samples need only be made available when Environment Canada requests such samples. Some potential analyses that may be done include assessing the level of renewable substances in a fuel, or indicators of renewable fuels, such as oxygen content.

R.2: Is there any requirement to retain samples of the fuel that I produce or import?

No, you are not required to retain any samples of fuel for the purposes of the Renewable Fuels Regulations. However, there are requirements to retain samples under other federal fuels regulations, specifically the Benzene in Gasoline Regulations.

R.3: If Environment Canada takes a sample of my fuel under these regulations, can it also test my fuel against other fuel requirements?

Yes.

R.4: If I only sell fuel, but do not produce or import fuel, why is it necessary to provide samples of my fuel or copies of my records to Environment Canada?

Under some circumstances, Environment Canada will want to track the distribution of a certain batch of fuel back to its source. This provision will assist in that task.

R.5: How will records and samples be requested by Environment Canada?

Access to records would normally be requested by Environment Canada enforcement officers inspecting your facility. During an inspection, the enforcement officers may also request samples of your fuel. Requests for records and samples could also arise under other circumstances.

R.6: When must I provide the records and samples to Environment Canada?

You must provide the records and samples to Environment Canada as per the instructions of Environment Canada's enforcement officer or other staff who is making the request.

R.7: Will I be told beforehand that a sample will be requested?

Usually no.

R.8: Doesn't the requirement for persons producing, importing or selling fuel to provide a sample of the fuel upon request by the Minister imply that sellers of fuel must meet the renewable fuel requirements for the fuels that they sell?

No, it does not. Sellers of fuels are generally not covered by the regulations (except for some reporting requirements for sellers of fuel for export). However, under some circumstances Environment Canada staff will want to track the distribution of a batch of fuel back to its source. This provision will assist in that task.

Section 27 - Reporting Form and Format

S.1: Under what circumstances do I not have to submit a report in an electronic format?

You do not have to submit a report in an electronic format if Environment Canada has not provided one. Once Environment Canada has provided an electronic form and format, you are required to use them, unless there are circumstances beyond your control that make it impractical for you to do so. This will be assessed on a case-by-case basis.

S.2: Under what circumstances do I not have to submit a report in a specified paper format?

You do not have to submit a report in the specified paper format if Environment Canada has not provided one. If there is a specified paper format, you must submit your report in that format.

S.3: Why is the auditor's report not required to be submitted electronically or in a prescribed format?

These reports are expected to be unique to each auditor and person being audited, so no format has been specified. The requirements for the auditor's report are set out in section 28 and Schedule 3 of the regulations.

S.4: Who has to sign the reports submitted under the regulations?

All reports must be signed by the authorized official of the regulatee - a term that is defined in section 1 of the regulations (refer to questions B.49 and question B.50B.50). In addition, the auditor's report must be signed by the auditor who did the audit.

Section 28 (and Schedule 3) - Auditor's Report

T.1: Who is required to submit an auditor's report under section 28 of the regulations?

Primary suppliers, elective participants, and producers and importers of renewable fuel must each submit an auditor's report. There is no prescribed format for this report.

T.2: Are there any exceptions regarding who is required to submit an auditor's report?

To be excluded from having to submit an auditor's report under subsection 2(4), a person must

  • produce and/or import less than 400 m³ of gasoline and produce and/or import a combined volume of less than 400 m³ of both diesel fuel and heating distillate oil and produce and/or import less than 400 m³ of renewable fuel, or
  • produce and/or import only specialty-use fuels (of any volume) and produce and/or import less than 400 m³ of renewable fuel.

For example, a primary supplier above the volume threshold for gasoline is not exempt from submitting an auditor's report just because it does not produce or import any renewable fuel. Similarly, a renewable fuel importer who imports above the volume threshold is not exempt from submitting an auditor's report because it did not import any gasoline.

In addition, under subsection 28(3), producers and importers of renewable fuel are not required to submit an auditor's report for a compliance period if they demonstrate that no compliance units whatsoever were created from the renewable fuel that they produced or imported during that compliance period. This may occur, for example, if the producer or importer provides renewable fuel solely to a party who exports the renewable fuel in its neat form, or who is not a participant in the trading system. Such a producer or importer of renewable fuel is still required to make records and report under section 34, but it need not have its records and reports audited.

T.3: I do more than one of the following activities at various facilities:

  • Produce gasoline and diesel fuel

  • Import gasoline and diesel fuel

  • Create compliance units by blending

  • Create compliance units by importing liquid petroleum fuel containing renewable fuel

  • Produce renewable fuel

  • Import renewable fuel

How many auditor's reports am I required to submit each compliance period?

Only one auditor's report is required, provided it covers all your activities and operations.

T.4: The auditor's report requires an assessment "in respect of the gasoline compliance period or distillate compliance period, as the case may be." If, a calendar year constitutes both a gasoline compliance period and a distillate compliance period, can one auditor's report cover both?

Yes, it can.

T.5: Do I have to have a third-party audit every year?

Yes, unless you fall into one of the exemptions described in question T.2.

T.6: Why is a report by a third-party auditor necessary?

These regulations include many flexibilities for regulatees, including annual averaging provisions and a trading system, and rely on records to support the creation of compliance units and their trade. Independent audits by accredited third-parties are vital in helping to ensure the integrity of the trading system, validate compliance units created, validate trades, and verify compliance. Third-party audits are a standard feature of federal fuel regulations that are based on annual averages for compliance.

T.7: What is the auditor required to do? What information is required to be in the report?

The requirements of the audit are set out in section 28 and Schedule 3 of the regulations. The auditor must assess whether the person's "practices and procedures are, in the auditor's opinion, appropriate to ensure, and to demonstrate, compliance with these Regulations." To do so, the auditor must review a significant sample of the person's records, reports and any supporting information and identify any possible deviations from the requirements of the regulations.

Some of the audit requirements set out in Schedule 3 only pertain to primary suppliers (item 5) and primary suppliers and elective participants (item 6). The rest of the requirements pertain to primary suppliers, elective participants, and producers and importers of renewable fuel.

T.8: What qualifications are required of a third-party auditor?

The qualifications of the auditor are specified in the definition of "auditor" found in subsection 1(1) of the regulation. The auditor must be independent of the person and ISO-9000 certified by a national or international accreditation organization. These qualifications are the same as under other federal fuel regulations.

T.9: Where can I find a person capable of undertaking an audit?

Various accreditation organizations, such as the Standards Council of Canada and the International Register of Certificated Auditors, may be able to assist in finding a person capable of undertaking an ISO 9000 assessment. Other accreditation organizations may also be able to provide assistance.

T.10: Why is the auditor's report not due until June 30? Why not sooner?

The June 30 date is one month later than the deadline for auditor's reports under other federal fuel regulations (May 31). This later date is due to the annual reports being submitted later under the Renewable Fuels Regulations (April 15 vs. February 15 under other regulations) and because the auditor will have significantly larger numbers of records and reports to review than in other regulations.

T.11: When is the first auditor's report due by?

It is due June 30, 2013 and must cover the period December 15, 2010 to December 31, 2012. Subsequent auditor's reports are due by June 30 of each year. Note that there is no auditor's report required in 2012.

T.12: Who signs the auditor's report?

The auditor's report must be signed by the auditor who undertook the audit. It must be submitted to Environment Canada by the authorized official of the regulatee.

T.13: Why are all the records related to trades of compliance units required to be reviewed by the auditor, but not all the records related to other transactions of compliance units (e.g., creation, cancellation, etc.)?

This provision ensures that each trade is scrutinized by an independent third-party. This is important in maintaining the robustness and credibility of the trading system. Recent enforcement actions in the United States demonstrate that fraudulent trading of RINs (or compliance units) is possible.

Also, unlike the creation of compliance units which may occur on an ongoing basis, it is expected that trades will be limited in number and may not occur often during a trading period.

T.14: If I do not produce or import gasoline, diesel fuel, heating distillate oil or renewable fuel during the compliance period and do not create or receive any compliance units, am I still required to have an audit for that compliance period?

No.

T.15: Will Environment Canada pay for my audit?

No. Engaging and compensating the auditor are the responsibility of the regulatee.

T.16: Can I see the audit report of another party?

Generally, no. Auditor reports are third-party documents under the Access to Information Act, and possible release of them would be subject to that Act.

T.17: Does the auditor have to audit my affiliate's records if they export petroleum fuels with renewable fuel content but are not primary suppliers, elective participants, or producers or importers of renewable fuel?

No. Such persons are not required to have their records audited under these regulations.

Section 29 - Records for Primary Suppliers

U.1: Why is a record required for every batch that I produce or import?

These records are the basis for the determination of your gasoline and distillate pools under section 6 of the regulations. It is critical that there are records for each batch to establish your pool volume. Auditors and Environment Canada enforcement staff will use these records to verify your calculations.

U.2: Why is Environment Canada interested in whether my gasoline was finished or unfinished gasoline?

It is expected that much of the gasoline leaving refineries will be unfinished gasoline, destined to be blended into finished gasoline at blending facilities downstream of the refinery. The separate reporting of finished and unfinished gasoline will permit Environment Canada to understand and monitor the downstream blending of gasoline in Canada.

U.3: How do I determine the volume of renewable fuel in a batch?

All volumes, including the volume of renewable fuel in a batch, must be determined in accordance with a measurement device, standard or method specified in section 4 of the regulations. This determination may be done at the time the renewable fuel is added to the liquid petroleum fuel.

U.4: When must the record be made?

Records must be made "as soon as feasible but no later than 15 days after the information to be recorded becomes available." This requirement is specified in section 37 of the regulations.

U.5: If I import a batch of "E10" gasoline, can I assume the volume is 10% renewable fuel for the purposes of these regulations? If I import a batch of "B5" diesel fuel, can I assume the volume is 5% renewable fuel for the purposes of these Regulations?

No, you cannot. The volume of renewable fuel must have been measured in accordance with section 4 of the regulations; normally, this would be by the person who blended the batch prior to its importation. You would have to obtain the volume and measurement information from the person from whom you obtained the fuel.

U.6: If I have a contract with a foreign supplier to provide me with "E10" or "B5", can I assume that the volume of renewable fuel is exactly 10% of the gasoline or 5% of the diesel fuel that I imported?

No, you cannot. Refer to question U.5.

U.7: If, prior to the start of the first distillate compliance period (i.e., prior to July 1, 2011), I only produce or import diesel fuel or heating distillate oil, and do not create or receive any compliance units, do I have to make these records as there is no renewable fuel requirement for diesel fuel and heating distillate oil? If so, why?

Yes, you do. The reported information will provide Environment Canada with information on the operations of future regulatees.

U.8: If I am exempt as a small volume producer or importer (under section 2 of the regulations), do I have to make these records? If so, why?

You must make the record required under paragraphs 29(a), (c), (d) and (e) of the regulations. Specifically, for each batch you produce or import, you must record the volume of the batch, the type of fuel, the production facility or province of importation, and the date of dispatch from the facility, the date of importation or the date that the batch was sent to a fuel dispensing device within the facility. This record is required to establish that you are indeed below the volume threshold of 400 m³ per year.

Section 30 (and Schedule 4) - Annual Report for Primary Suppliers

V.1: When is the annual report due?

No later than April 15 - which is 15 days after the end of the trading period.

The first annual report (covering the period December 15, 2010 to December 31, 2012) is due by April 15, 2013. The subsequent annual reports are due by April 15 following the end of the compliance period.

An interim report covering the period December 15, 2010 to December 31, 2011 is due by April 15, 2012 (refer to section 39).

V.2: Why must I report for each facility when my compliance is based on my company's total pool?

Although compliance is based on company-wide pools, the creation of compliance units and tracking of volumes of fuel is done at a facility level (e.g., the refinery or the blending facility). Facility-level data can be compared to similar data from other sources for compliance verification and enforcement purposes.

V.3: Do I need to submit a separate report for each of my facilities?

No. You must submit one company-wide report that includes all the information required, including any information required on a facility-by-facility basis.

V.4: Do I have to report on gasoline, diesel fuel or heating distillate oil if during a compliance period I did not produce or import more than 400 m³ of such a fuel during any 12 consecutive months in the compliance period?

No, pursuant to subsection 2(1) of the regulations, you do not have to report, unless you opted into the regulations under section 3.

V.5: Do I have to report if I only produced and imported a special-use fuel during a compliance period?

No, pursuant to subsection 2(3) of the regulations, you do not have to report, unless you opted into the regulations under section 3.

V.6: Are the reporting requirements similar to provincial reporting requirements? Can I base my federal and provincial reports on the same set of records?

Generally, the reporting requirements are different. The federal and provincial reports are based on different volumes; that is, production and imports vs. first sales. However, there may be many circumstances where the same records can be used for both regulatory regimes.

V.7: Items 2 and 3 of Schedule 4 require reporting of pool volumes. Item 5 requires reporting by production facility and province of import on volumes of gasoline, diesel fuel and distillate heating oil. Will the sum of volumes under item 5 equal my pool volume?

Not necessarily. Subsections 6(5) to (7) of the regulations provide for subtractions from the pool for biocrude and renewable content. Those would not be reflected under item 5 of Schedule 4.

Section 31 and 32 - Records for Participants

W.1: As a primary supplier who has made records under section 29 of the regulations, do I also have to make records under sections 31 and 32?

Yes, you do. As a primary supplier, you are also a participant.

W.2: What is a compliance unit account book?

A compliance unit account book is a monthly ledger with a set of records on transactions regarding compliance units that you created, traded, received in trade, carried forward, carried back, cancelled or assigned.

W.3: Is there a prescribed format for the compliance unit account book?

Subsection 31(5) provides that the compliance unit account book must be in the form and format specified by Environment Canada. If no format has been specified, any format is acceptable, provided all the required information is recorded.

Environment Canada does not intend to specify a mandatory form and format under subsection 31(5) at this time, but may do so at a later date. Environment Canada will notify participants if and when a form and format are specified. Note that if these are specified, then a copy of the compliance unit account book must be submitted as part of the annual report (refer to item 15 of Schedule 5).

W.4: I understand that Environment Canada has developed an e-format for the compliance unit account book. Is this available for me to use? Am I required to use this format?

Environment Canada has developed an e-format for the compliance unit account book. If you choose to use it and have not already received it, you can contact Environment Canada to get the e-format via e-mail at: fuels-carburants@ec.gc.ca. Please note that Environment Canada does not intend to specify this as a mandatory form and format under subsection 31(5) for the first gasoline compliance period nor for the first distillate compliance period. Note that this may change for subsequent compliance periods.

W.5: What is the purpose of the compliance unit account book?

The compliance unit account book is intended as a convenient summary and accounting of all transactions related to compliance units - for the participant, for the auditor, for Environment Canada's enforcement officers and other staff. It is a tool that will assist participants in planning for and achieving compliance through the tracking of ownership of and transactions of compliance units and monthly and year-to-date balances. It is also intended to be the entry-level document for assessing compliance by the auditor and Environment Canada's enforcement officers, upon commencing their review of a participant's supporting records and documents.

W.6: Do I need a separate compliance unit account book for each compliance period?

Generally, you do not, but you must ensure that each record is clearly identified to which compliance period it pertains. However if a form and format specified under subsection 31(5) has separate compliance unit account books for each compliance period, then you would be required to follow that specified format.

W.7: Do I need a separate compliance unit account book for gasoline compliance units and distillate compliance units?

Generally, you do not, but you must ensure that each record is linked to the applicable type of compliance unit. However if a form and format specified under subsection 31(5) has separate compliance unit account books for each type of compliance unit, then you would be required to follow that specified format.

W.8: Do I need a separate compliance unit account book for each blending facility at which I create compliance units or for each province of import for which I create compliance units?

Generally, you do not, but you must ensure that each record is linked to the blending facility or province of import to which it pertains. However if a form and format specified under subsection 31(5) has separate compliance unit account books for each blending facility or province of import, then you would be required to follow that specified format.

W.9: Do I need a separate compliance unit account book for each of my production facilities?

Generally, you do not. A production facility is only included in the compliance book if compliance units are created at that facility. However if a form and format specified under subsection 31(5) has separate compliance unit account books for each production facility, then you would be required to follow that specified format.

W.10: Why would Environment Canada consider specifying a form and format for my compliance unit account book?

Environment Canada may specify a mandatory form and format under subsection 31(5) to promote consistency or to ensure general industry-wide standards are complied with.

W.11: Can I group the entries in the compliance unit account book, or do I need to record each trade, creation, and cancellation separately?

Subsection 31(2) requires a monthly record of compliance unit transactions (separately for gasoline and distillate compliance units) for:

  • creation of compliance units, by facility (blending and production), province of import and in respect of neat renewable fuel;
  • cancellation of compliance units (by province of export where in respect of exported renewable fuel content; otherwise on a company basis);
  • trades of compliance units, by each person with who you traded or received in trade compliance units; and
  • carry forward, carry back and "distillate-to-gasoline" assignment.

W.12: Carry forward of compliance units involves moving units in respect of one compliance period into the next compliance period. How do I record this in my compliance unit account book?

You must make a record of the compliance units carried forward in the compliance unit account book for both periods. For the first period, from which the compliance units are carried, you record the number of compliance units carried forward, and reflect this in the monthly and period-to-date balances as a debit. For the subsequent period that the compliance units are carried into, you again record the number of compliance units carried forward, but reflect this in the monthly and period-to-date balances as a credit.

W.13: Carry back of compliance units involves units in respect of one compliance period being moved into the previous compliance period. How do I record this in my compliance unit account book?

You must make a record of the compliance units carried back in the compliance unit account book for both periods. For the period that the compliance units are carried into, you record the number of compliance units carried back, and reflect this in the monthly and period-to-date balances as a credit. For the subsequent period, from which the compliance units are carried, you again record the number of compliance units carried back, but reflect this in the monthly and period-to-date balances as a debit.

W.14: What cumulative information must I record in the compliance unit account book?

Under subsection 31(4) of the regulations, you must record the monthly and the compliance period-to-date balances of compliance units (separately for gasoline and distillate compliance units) for:

  • creation of compliance units, by facility (blending and production), province of import and in respect of neat renewable fuel;
  • cancellation of compliance units (by province of export where in respect of exported renewable fuel content; otherwise on a company basis);
  • trades of compliance units, by each person with whom you traded or received in trade compliance units;
  • carry forward, carry back and "distillate-to-gasoline" assignment;
  • company-wide totals of compliance units created, cancelled, transferred in trade, received in trade, carried forward and carried back; and
  • company-wide balance of compliance units.

W.15: Do I record compliance units that were carried forward or carried back in the compliance unit account book?

Yes.

W.16: Subsections 8(1) and (2) define how the volume of renewable fuel in a primary supplier's pool is calculated. Should the results of these calculations for a compliance period match the period-to-date balances in my compliance unit account book at the end of the trading period for the compliance period?

Yes, unless you have compliance units that are unused at the end of the trading period and not carried forward. Such units would be cancelled in your compliance unit account book; however, that cancellation is not reflected in the calculations in subsections 8(1) and (2).

W.17: When must I enter the information in the compliance unit account book under section 31 of the regulations, and when must I create a record under section 32?

The information in the compliance unit account book must be made within 15 days after the end of the month. The additional records made under section 32 of the regulations must be made as soon as feasible, but not later than 15 days after the information to be recorded becomes available (refer to section 37 of the regulations). Note also that compliance units are not confirmed until the records are made under both sections 31 and 32 (refer to question K.16).

W.18: When do I record, for the purposes of subsection 32(7), my monthly ownership of compliance units, given that I can trade them during the following month?

The record must be made within 15 days after the end of the month for which the information is required to be recorded. If there are trades during that following month, the record would then reflect these changes in the following month's entries. See also subsection 19(3) for the maximum ownership number of compliance units.

W.19: Is the creation of compliance units still confirmed if I make the record of their creation in my compliance unit account book later than 15 days after the end of the month?

Yes. However, you would be in contravention of subsection 31(3), which requires that the record be made within 15 days of the end of the month.

W.20: If I find an error in my compliance account book related to the number of compliance units I created, how do I correct it? What is the status of such compliance units?

Refer to question K.22.

W.21: What information do I need to record for a batch?

Section 32 sets out the information that needs to be recorded for each batch. This information includes items such as the volume of the batch, the date that the batch was blended or imported, the facility at which it was blended, the province into which it was imported, the type of fuel, the type and volume of renewable fuel contained in the batch, and information on the renewable fuel feedstock used to create the renewable fuel. Refer to section 32 of the regulations for the specific requirements.

W.22: Why is so much information required to be recorded?

Compliance verification for these regulations is based primarily on records, reporting and auditing. There are no widely accepted or widely applicable prescribed test methods for determining the renewable content and renewable fuel type in a primary supplier's fuel. Even if there were, the limits in the regulations are on the basis of an annual average - any one batch may contain little or no renewable fuel.

There are many ways of creating compliance units and each creation must be fully documented. Trades of compliance units must be fully documented and reported upon to support the robustness of the trading system and the verification of trades. Finally, in order to enable the tracking of renewable fuel back to its source, it is important that participants record from whom they received their renewable fuel.

W.23: Why are additional records required for high-renewable-content fuels and neat renewable fuel?

It is possible that these fuels could be further blended with renewable fuel, with the resulting blended product being "renewable fuel", as defined by the regulations. Such volumes could potentially be used to create a second set of compliance units, resulting in a double counting of the renewable fuel volume. To prevent this, records are required that demonstrate that these fuels were combusted or sold for combustion.

To help ensure that consumers of these fuels do not misfuel their vehicles or other combustion devices, the regulations require additional records that demonstrate that consumers were informed about the nature of the fuel that they intend to use.

W.24: Can I create compliance units if I blend to get high-renewable-content fuel and it is later blended to a lower level?

Yes, provided you make records establishing that the final blend is not a high-renewable-content fuel. For example, you may create compliance units when blending biodiesel with diesel fuel to create B50 (a high-renewable-content fuel), as long as it is subsequently blended at a blending facility with diesel fuel to create B5 or lower blends.

W.25: What do I record if, under some circumstances, I do not know some required piece of information?

It is generally expected that the information required to be recorded would be known. However, there may be some circumstances where a participant may not know a particular piece of information. Where the phrase "if known" is used in the regulations, you are not obligated to record such information if you do not know it. However, if this phrase is not present, you are obligated to obtain the information and record it.

W.26: For the creation of compliance units for high-renewable-content fuels or neat renewable fuel, what happens if I do not know the type of combustion device that was used to combust the fuel? What if I don't know other required information?

The record required by subsection 32(3) of the regulations, for high-renewable-content fuels, must be completed in full before any compliance units are created. If you do not know the type of combustion device in which the fuel was combusted or was sold to be combusted, the record would be incomplete. No compliance unit would be created in this case.

The record required in subsection 32(5) of the regulations, for neat renewable fuel, has the phrase "if known" for information on the person who originally produced the fuel and the type of feedstock used to produce it. If a participant does not record this information for neat renewable fuel because they do not know it, the record is still considered complete.

W.27: For neat renewable fuels and high renewable-content fuels, what information do I need to record in order to establish that the fuel was identified as being such a fuel in a cautionary statement in both official languages that identified the renewable fuel type, specified the minimum renewable fuel content, and stated that it may not be suitable for some engines and that the owner's manual ought to be consulted?

You must record information that demonstrates that all these criteria have been met.

W.28: Will Environment Canada approve wording of labels or of documents to be used for neat and high renewable-content fuels?

No.

W.29: I discover an error after making a record under section 32 supporting the creation of compliance units - I recorded a greater or lesser volume of renewable fuel than I should have. This error has also been reflected in the monthly record of compliance units I made in my compliance unit account book. Can I make corrections to these records? What is the status of such compliance units?

Refer to question K.22.

W.30: Are compliance units created if I make a record required under section 32 later than 15 days after the information to be recorded became available?

Yes. However, you would be in contravention of subsection 37.

W.31: Paragraph 32(6)(c) requires a record of "the trading period in respect of which the trade is made". I make a trade during the first three months of a year, a period which falls into two trading periods. What do I record as the trading period?

You record the trading period for the gasoline or distillate compliance period, as the case may be, that the compliance units were created during or carried forward into.

W.32: Why must I make a record under subsection 32(7) of the regulations in regards to the maximum number of compliance units that I own?

This is to establish that the limit on ownership of compliance units under section 19 of the regulations is complied with.

W.33: Why must I have documents establishing that the renewable fuel or biocrude which I used meets the applicable definition?

Compliance units may only be created in respect of renewable fuels or biocrudes. Both of these are defined under section 1 of the regulations and must meet specified criteria. In order to be "renewable fuel", a fuel must have been produced from the list of feedstocks set out in the definition of "renewable fuel feedstock". A fuel produced from a feedstock that is not described in that definition is not renewable fuel for the purposes of these regulations, and therefore no compliance units would be created in respect of it.

The documents that establish that these fuels or feedstocks are renewable fuel or biocrude as defined by the regulations will be used for compliance verification and enforcement purposes.

W.34: What documentation is required to establish that the fuel is renewable fuel or neat renewable fuel, or that the feedstock is biocrude?

The required documentation for a renewable fuel must establish that it meets the definition of "renewable fuel". It must meet all of the defined maximum limits for non-renewable substances in the fuel and be produced from one or more feedstock types described under the definition of "renewable fuel feedstock".

The required documentation for a neat renewable fuel must establish that it meets the definition of "neat renewable fuel", including that it is a renewable fuel in the first place.

The required documentation for a biocrude must establish that it meets the definition of "biocrude", including that it was derived from one or more of the feedstock types described under the definition of "renewable fuel feedstock". In the case of triglyceride-derived biocrude, the documentation must also establish that the biocrude is a glyceride in which the glycerol is chemically bound with three fatty acids.

W.35: Why do I need to record the percent content of renewable fuel in a batch?

The definition of high-renewable-content fuel and the maximum limits on renewable content under subsection 17(1) of the regulations require that the renewable content of a batch be known and recorded for your information and for enforcement and compliance verification purposes. This will allow the following to be determined:

  • Does the fuel meet the definition of high-renewable-content fuel? If so, you must have the additional records that are required in order to create compliance units, or
  • Does the renewable fuel content exceed the limits set out under subsection 17(1)? If so, you cannot create compliance units for that batch.

W.36: Are certificates of analyses that specify the percent of renewable content for a fuel adequate, or are more records needed?

More records are needed. You must have a record that provides the volume of renewable fuel contained in the liquid petroleum fuel.

W.37: How do I determine the percent content of renewable fuel in a batch?

The content of renewable fuel can be determined from blending records, provided that the volume of the renewable fuel and the liquid petroleum fuel were determined in accordance with a measurement device, standard or method specified in section 4 of the regulations. This determination may be done at the time the renewable fuel is added to the liquid petroleum fuel.

If a liquid petroleum fuel which already contains renewable fuel has more renewable fuel added to it, the determination may be done with the assistance of documentation obtained from the original blender of the liquid petroleum fuel.

W.38: What do I need to record for batches of liquid petroleum fuel that I export? Why is this information required?

For each batch of liquid petroleum fuel containing renewable fuel that you export, you must record the information specified in subsection 32(8) of the regulations; namely, the province from which the batch was exported, the type of fuel, and the volumes (of the batch and of the renewable fuel in the batch) and, if known, each type of renewable fuel feedstock that was used to produce the renewable fuel in that batch. The information is required to support verification and enforcement of cancellation of compliance units from exports of fuel with renewable content.

W.39: What do I need to record for batches of renewable fuel that I export?

For each batch of renewable fuel that you export, you must record the information specified in subsection 32(8) of the regulations; namely, the province from which the batch was exported, the volume of the batch and, if known, each type of renewable fuel feedstock that was used to produce the renewable fuel.

W.40: When must records be made?

Records must be made "as soon as feasible but no later than 15 days after the information to be recorded becomes available." This requirement is specified in section 37 of the regulations.

W.41: When must the record of biocrude use be made?

Records must be made "as soon as feasible but no later than 15 days after the information to be recorded becomes available." This requirement is specified in section 37 of the regulations. In the case of monthly biocrude use, pursuant to subsection 32(4) of the regulations, the records must be no later than 15 days after the end of the month.

W.42: Are the entries in my compliance unit account book for the period December 15, 2010 to December 31, 2010 combined with the entries for January 2011?

Yes, because for that time, "month" is defined as the period from December 15, 2010 to January 31, 2011

Section 33 (and Schedule 5) - Annual Report for Participants

X.1: Who must submit a report under section 33 of the regulations?

All participants (both primary suppliers and elective participants) must submit this report.

X.2: If, as a primary supplier, I submit an annual report under section 30 of the regulations, do I also have to submit a report under section 33?

Yes, you do. As a primary supplier, you are also a participant.

X.3: What information is required to be reported?

The required information is specified in Schedule 5 of the regulations. It includes various summaries of transactions of compliance units for the compliance period, including:

  • for each facility type and each province of importation, the compliance units created;
  • for each circumstance requiring compliance units to be cancelled, the number of compliance units cancelled;
  • for each province of exportation, the volumes exported and the renewable fuel feedstocks used to produce the exported renewable fuels, if known;
  • for each person to whom you traded, the number of compliance units traded;
  • for each person from whom you received compliance units, the number of compliance units received;
  • company-wide totals of transactions (carry forward, carry back); and
  • for compliance units, the monthly balance and the calculation required under subsection 19(1) of the regulations and final balances at the end of the trading period.

In addition to the above information, you are also required to report the names of persons from whom you received, and to whom you transferred renewable fuel and biocrude, and the volume of renewable fuel and of biocrude that you own at the end of the compliance period.

X.4: As an elective participant, do I have to report my exports of renewable fuel or liquid petroleum fuel containing renewable fuel?

Yes, you have to make records and report on your exports and those of any affiliate who is not a participant. Refer to item 11 of Schedule 5.

X.5: Item 13 of schedule 5 requires reporting of the number of compliance units owned by a participant at the end of the trading period. Subsection 25 (4) requires cancellation, at the end of the trading period, of compliance units that are neither used nor carried forward. Are such unused compliance units to be included in the number reported under item 13?

You should report the number of compliance units owned prior to cancellation under subsection 25(4) of the unused compliance units that were not carried forward. The number of compliance units cancelled under subsection 25(4) is reported under item 10(c) of Schedule 5.

X.6: Items 3 and 4 require reporting on mobile blending facilities by province.

(a) What is a mobile facility?

A mobile blending facility described in the definition of "blending facility". It includes cargo tankers, railway cars, boats, marine vessels and any other type of mobile facility in which blending occurs.

(b) I own a fleet of cargo tankers. Blending in any of these tankers may be done one day in one province, and the next day in a different province. How do I report on my fleet?

You report based on the province in which blending occurs.

(c) I own a fleet of 100 cargo tankers, but only blend in 10 of them. Under item 3 (a) or 4 (a), do I report the number of mobile facilities as 10, or as 100?

You would report 10 mobile blending facilities.

X.7: Why am I required to report the names of persons from whom I acquired renewable fuel or biocrude and to whom I transferred ownership of renew able fuel or biocrude, and associated volumes?

This information is important for Environment Canada to be able to monitor the distribution of renewable fuels, as compliance verification for these regulations is based primarily on records, reporting and auditing.

X.8: Is there a format specified for the report?

Under section 27 of the regulations, reports must be in the form and format specified by Environment Canada. If an electronic format and format are specified, they must be used, unless there are circumstances beyond your control that make it impractical for you to do so. (This would be assessed on a case-by-case basis.) If no electronic form and format have been specified, the report must be sent on paper

Environment Canada will notify participants if and when a form and format are specified. Note that if a form and format are specified for the compliance unit account book under subsection 31(5), then a copy of it must be submitted as part of the annual report (refer to item 15 of schedule 5).

X.9: When is the annual report due?

No later than April 15 - which is 15 days after the end of the trading period. The first annual report (covering the period December 15, 2010 to December 31, 2012) is due by April 15, 2013. The subsequent annual reports cover compliance periods and are due by April 15 following the end of the compliance period.

An interim report covering the period December 15, 2010 to December 31, 2011 is due by April 15, 2012 (refer to section 39).

X.10: Why must I report for each facility when my compliance is based on company-wide totals of compliance units?

Although compliance by the primary supplier is based on company-wide pools, the creation of compliance units and tracking of volumes of fuel is done at a facility level. Facility-level data can be compared to similar data from other sources for compliance verification and enforcement purposes.

X.11: Do I have to report if I did not make any transactions with compliance units (creation, cancellation, trade, carried forward or carried back) during the trading period for a compliance period?

No, you do not have to submit a report under section 33, unless you are a primary supplier and not exempt under section 2 of the regulations. Primary suppliers must create or acquire compliance units in order to comply with the renewable fuel requirements.

Section 34 (and Schedules 6 and 7) - Records and Reports for Producers or Importers of Renewable Fuel

Y.1: Why do producers and importers of renewable fuel have to register, make records and report under these Regulations? Why do I have to report on who I sold renewable fuel to?

The registration information is to assist Environment Canada in the administration of the regulations and in identifying and understanding the regulated community and the various facilities of the industrial sectors covered by these regulations. The information collected through registration reports assists Environment Canada in understanding your operations and the operations of other regulated parties, and thus enables a more effective and efficient administration the regulations. Other federal fuel regulations have similar registration information.

The records and reports required by producers and importers of renewable fuels are important for Environment Canada in being able to monitor the distribution of renewable fuels, as compliance verification for these regulations is based primarily on records, reporting and auditing, Records and reports by producers and importers of renewable fuel will serve as an important source of data for Environment Canada's review and assessment of primary suppliers' and elective participants' records and reports.

Y.2: As a producer or importer of renewable fuel, am I required to make a record of renewable fuel that is exported by a person who purchases my renewable fuel? How am I to know if that person is going to export the fuel?

Under subparagraph 34(3)(g)(i) of the Regulations, you are required to make a record of whether the renewable fuel is to be exported and the province in which the fuel is located when ownership of the fuel is transferred by your sale. This information is required only if it is known.

Y.3: Schedule 2 requires a description of the primary use of produced, blended and imported products. Why is this required and what is it intended to cover?

This information will help identify instances where product might be used in such a way that it would not be a fuel - for example, as feedstock to a chemical plant. Such blended product is not intended to created compliance units. The description should identify the primary use as "for fuel", or some other specified use.

Y.4: As a producer or importer of renewable fuel, when do I have to submit the registration report?

Your registration report, under subsection 34(1) of the regulations, is due at least one day before your combined production and importation exceeds 400 m³ of renewable fuel during any continuous 12-months of a compliance period Effectively this means:

  • For existing large-volume producers or importers of renewable fuel, on or before December 14, 2010.
  • For new large-volume producers or importers of renewable fuel, at least one day before commencing operations.
  • For existing and new small-volume producers or importers of renewable fuel, at least one day before their combined production and importation exceeds 400 m³ of renewable fuel.

The provision is written in this way so that small-volume producers and importers (producer and importer of less than 400 m³ combined per year) are not required to register until they exceed the small volume threshold.

Y.5: What happens if the information I submitted in my registration report changes?

If the registration information changes, other than the information in items 1(b) and (c) of Schedule 6 of the regulations (the contact information), you must submit a notice to Environment Canada that updates the changed information. This must be done no later than five days after the change. This requirement and the timing for the notice are the same as in other federal fuel regulations. If you do not submit the updated data by this time, you would be in contravention of the regulations.

As of August 28, 2011, information regarding the company name and address (item 1(a)) is required to be updated. This is to facilitate Environment Canada tracking the company's information in its database.

Y.6: What information is required when I register a new renewable fuel production facility?

You must provide the information listed in Schedule 6. If, because the facility has just begun operations, there is no volumetric data for the previous year, then you would enter a zero for that information.

Y.7: What information must I record in the records required by these regulations?

The information required to be recorded by producers or importers of renewable fuel is set out in subsection 34(3) of the regulations.

Y.8: When is the annual report due?

No later than February 15. The first annual report (covering the period December 15, 2010 to December 31, 2012) is due by February 15, 2013. The subsequent annual reports cover compliance periods and are due by February 15 following the end of the compliance period.

An interim report covering the period December 15, 2010 to December 31, 2011 is due by February 15, 2012 (refer to section 39).

Y.9: Why is the deadline for the submission of my annual report (February 15) earlier than the date for submission of annual reports by others (April 15)?

Annual reports by trading system participants have a later submission date because of the trading period, which ends on March 31. Producers and importers of renewable fuels need not participate in the trading system and so are not constrained by the trading period. The date of February 15 for producers and importers of renewable fuels is the same reporting date as in other federal fuel regulations.

Y.10: Why do I have to submit a report for each gasoline compliance period, but not each distillate compliance period?

A producer or importer of renewable fuel must submit the report for each gasoline compliance period, which means for each calendar year (except for the first compliance period). This specificity is to provide clarification as to the period the report covers, as renewable fuel producers have no requirements for renewable fuel content and are not otherwise linked to any specific compliance period.

Y.11: If I am a primary supplier or elective participant but also produce or import renewable fuel, do I have to report and make records under section 34 of the regulations?

Yes, you do.

Y.12: As a renewable fuel producer or importer, do I have to have a third-party audit each compliance period?

Yes, unless:

  • pursuant to section 28(3) you demonstrate that no compliance units were created from the renewable fuel that you produced or imported during the compliance period; or
  • subsection 2(4) of the regulations applies for that year; that is, for that compliance period you are:
    • a small-volume producer and importer of renewable fuel and not a primary supplier
    • a small-volume producer and importer of renewable fuel and a small-volume primary supplier, or
    • a small-volume producer and importer of renewable fuel and a primary supplier of only specialty-use fuels.

Y.13: Why do I have to submit an auditor's report?

Independent audits by accredited third-parties are vital in helping to ensure to the Government (and indirectly to individual participants) that the integrity of the trading system is upheld and in helping to validate compliance units created and traded. Third-party audits are a standard feature of federal fuel regulations that are based on annual compliance.

The records and reports of producers and importers of renewable fuel serve as an important source of data for Environment Canada's review of the records and reports of primary suppliers and elective participants. Therefore, it is important that the records and reports of producers and importers of renewable fuel are -- and are seen to be -- accurate sources of information on the distribution of renewable fuels in Canada.

Section 35 (and Schedule 8) - Report on Measurement Methods

Z.1: Who must report under section 35 of the regulations?

All persons who have to submit a registration report must also submit the report on measurement methods. These persons are primary suppliers, elective participants, and producers and importers of renewable fuels.

Z.2: What information must be reported?

The information required to be reported is set out in Schedule 8 of the regulations. This information describes how a person is going to determine the volumes of their fuels at each of their facilities and for each of the provinces into which they import.

Z.3: Item 4(b) of Schedule 8 is "a description of how the batch of fuel is identified" at a facility. What am I expected to submit for this?

A batch is "an identifiable quantity of liquid fuel, with a single set of physical and chemical characteristics." Depending on the individual circumstances surrounding the production of the batch, it may be as small as a single compartment tank within a tanker truck or as large as a pipeline shipment. Descriptions will vary and will depend on individual circumstances. A description could be, for example, the tank of a tanker truck, one or more tanks within a ship, or as measured at a particular point in a refinery as the fuel is dispatched through a pipeline.

Z.4: I am an importer. I get bills of lading from the terminal in the U.S. where I pick up fuel that includes the fuel volume for each batch that I import. I have no information on how that volume was determined. What information should I provide for schedule 8? What do I do if I cannot get any information on measurements from the terminal operator?

You are required to provide the information in Schedule 8 and must make all reasonable efforts to obtain it.

Z.5: Is there a format for the report?

Under section 27 of the regulations, reports must be in the form and format specified by Environment Canada. If an electronic format and format are specified, they must be used, unless there are circumstances beyond your control that make it impractical for you to do so. (This would be assessed on a case-by-case basis.) If no electronic form and format have been specified, the report must be sent on paper. Environment Canada will notify participants if and when a form and format are specified.

Z.6: Why is the report on measurement methods necessary?

Volumes of fuels are the regulated parameter for these regulations and their reported volumes are the basis for compliance. Although volumes are expected to be already measured very accurately by regulatees for commercial reasons, there are many ways of measuring volumes, depending on individual circumstances. Environment Canada's enforcement officers must know how the volumes are being measured by each regulatee under each individual circumstance. This one-time report provides that information.

Z.7: When do I have to submit this report? Can it be submitted at the same time as my registration report?

The report must be submitted by the later of 180 days after the registration of the regulations (i.e., by February 19, 2011) and the day you submit your registration report.

Z.8: As I need to submit a report for each facility and each province of importation, can I group these reports and submit them all at once within a larger, all-encompassing report?

Yes, you may, provided all the required information is submitted for each facility and each province of importation.

Z.9: What happens if the information I submitted in my measurement report changes?

If the measurement information changes, other than the information in items 1(b) and (c) of Schedule 8 of the regulations (the contact information), you must submit a notice to Environment Canada that updates the changed information. This must be done no later than five days after the change. This requirement and the timing for the notice are the same as in other federal fuel regulations. If you do not submit the updated data by this time, you would be in contravention of the regulations.

As of August 28, 2011, information regarding the company name and address (item 1(a)) is required to be updated. This is to facilitate Environment Canada tracking the company's information in its database.

Z.10: How does section 35 of the regulations relate to the requirements for determining volumes under section 4 of the regulations?

Section 4 sets out the criteria for a measurement device, standard or method to be acceptable, but there are many such acceptable devices, standards and methods permitted under that section. Section 35 requires the regulatee to inform Environment Canada as to which device, standard or method is being used in each of the individual circumstances that apply to them.

Z.11: Why does the information required for measurement locations in Canada differ from the information required for measurement locations outside Canada?

Imports from the United States are often done via cargo tankers. Cargo tankers can pick up fuel from a variety of sources. Although the nature of the facility is known (e.g., a fuel terminal), the pick-up location (that is, the facility's address) could vary. Imports from overseas are usually off-loaded at a limited number of facilities in Canada where the volume is then measured.

Z.12: Why must I report the frequency of the calibration of the measurement devices that I use?

Although the device may have originally met the requirements of the Weights and Measures Act, it may not currently if it has not been well maintained and routinely calibrated. You must report both the frequency of the calibration and the name of the person who last calibrated the device, if any.

Z.13: What do I report if there is no published repeatability or precision for the standard or method that I used?

This requirement in Schedule 8 of the regulations is prefaced with the phrase "if known". If there is no published repeatability or precision for the standard or method, then no such information need be reported.

Z.14: If I implement a new measurement technique or measure at a new place, when must I provide an update to the report required under section 35? Do I have to re-submit all the information in Schedule 8 or just the information that has changed?

You must provide the updated information within five days after the change. You are only required to submit the updated information and not re-submit information that has not changed from the last submission. Refer to subsection 35(2).

Z.15: What methods are acceptable for measuring the water content of biocrude?

Such methods will depend on the refinery configuration and the nature of the biocrude, so the method will be situation-specific. A regulatee must provide detailed information on "the methodology for measuring and subtracting [for the purposes of subsection 4(3) of the regulations] the water content of the biocrude."

Z.16: My refinery has been decommissioned sometime during the initial 180-day period of the regulations. Must I still submit a report on measurement methods? Do I have to submit other reports?

Under subsection 35(3) of the regulations, you are not required to submit a report on measurement methods for that refinery, but you would have to submit such a measurement report for your other production facilities. You must still submit other reports required by the regulations in respect of the decommissioned refinery.

Section 36 - Records and Reports for Sellers of Fuel for Export

AA.1: Who must report under section 36 of the regulations?

Any person who sells fuels for export, but who is not a primary supplier, elective participant, or producer or importer of renewable fuel is required to report under this section. It is expected that these persons will mostly be independent fuel-marketing companies. (For other regulatees, similar requirements are covered by other provisions of the Regulations.)

AA.2: What information must be reported?

The information to be reported is set out in subsection 36(2) of the regulations. It includes the total volume of renewable fuel contained in a liquid petroleum fuel that is sold for export, and the total volume of renewable fuel sold for export. These totals are reported separately for each type of renewable fuel and for each province where the custody of a batch was transferred.

AA.3: If I export a batch of petroleum fuel that does not contain any renewable fuel, do I have to make a record of it or report on it under these regulations?

No, you do not. Only batches of petroleum fuel that contain renewable fuel, or batches of renewable fuel, are required to be recorded and reported upon under section 36 of the regulations.

AA.4: Is there a format for the report?

Under section 27 of the regulations, reports must be in the form and format specified by Environment Canada. If an electronic form and format are specified, they must be used, unless there are circumstances beyond your control that make it impractical for you to do so. (This would be assessed on a case-by-case basis.) If no electronic form and format have been specified, the report must be sent on paper.

Environment Canada will notify participants if and when a form and format are specified.

AA.5: Why do sellers of fuel for export have to make records and submit annual reports?

Environment Canada needs to track what is actually exported in order assess if the regulations achieve their goal of increased use of renewable fuel in Canada. The information can be used by Environment Canada to compare to information reported by persons who are more directly implicated in the requirements of the regulations. The records and the annual reports of these persons will be helpful in ensuring that exports are accounted for and that the cancellation of compliance units is appropriately done by others who are involved in the trading system.

AA.6: When I sell fuel to a wholesaler, I do not know if the wholesaler is going to export the fuel. How do I account for this in my records of exported fuel? What do I record for a batch if I do not know whether or not it will be exported?

If it is known that this batch of fuel will be exported then a record has to be made as per subsections 32(8), 34(3)(g) or 36(1), as the case may be. If it is not known whether this batch of fuel is to be exported or used in Canada, it must be assumed that the batch is used in Canada and records would be made accordingly.

AA.7: If I am a primary supplier, elective participant or a producer or importer of renewable fuel, do I have to make records and submit reports under section 36 of the regulations?

No, you do not. The provisions of section 36 do not apply to primary suppliers, elective participants, or producers or importers of renewable fuel. Primary suppliers, elective participants, and producers and importers of renewable fuel are required to record and report exports under other provisions (i.e., sections 32, 33 and 34).

AA.8: Why do participants report fuel actually exported, while producers and importers of renewable fuel and other sellers of fuel for export report fuel sold for export?

Because primary suppliers have to meet the renewable fuel requirements, Environment Canada needs to track what is actually exported in order for the trading system to function as intended - fuel exported may be subtracted from the primary supplier's pool under paragraph 6(4)(i) of the regulations. However, for renewable fuel producers and importers and sellers of fuel for export, there is no need to obtain such information; it is sufficient to only report the fuel sold for export, since they are not subject to the prescribed requirements in section 5 of the regulations, nor do they have to calculate a pool under section 6.

AA.9: As a producer or importer of renewable fuel who also sells renewable fuel for export, do I have to keep two sets of records or submit two reports?

No, you do not. Section 36 does not apply to you. Your requirements for recording and reporting on renewable fuel that you export are set out in section 34 of the regulations.

AA.10: Why don't sellers of fuel for export have to submit a registration report or an auditor's report?

These persons, who are likely to be independent fuel marketing companies, are providing information that can be used by Environment Canada to compare to information reported by persons who are more directly implicated in the requirements of the regulations. The records and the annual reports of these persons will be helpful in ensuring that exports are accounted for and that the cancellation of compliance units is appropriately done by others who are involved in the trading system. In order to avoid unwarranted administrative burden on these parties, registration and third-party audits are not required of them.

AA.11: If the fuel that I sold for export is neither a renewable fuel nor a liquid petroleum fuel that contains any renewable fuel, do I still have to report under section 36?

No, you do not.

AA.12: Why is there no schedule attached to the regulations setting out the information required in the annual report for section 36 of the regulations?

All the information that is needed to be reported is specified in subsection 36(2). Because there is not a lot of information required, a detailed schedule was not developed.

AA.13: When is the annual report on fuel sold for export due?

No later than February 15. The first annual report (covering the period December 15, 2010 to December 31, 2012) is due by February 15, 2013. The subsequent annual reports cover compliance periods and are due by February 15 following the end of the compliance period.

An interim report covering the period December 15, 2010 to December 31, 2011 is due by February 15, 2012 (refer to section 39).

AA.14: Why is the deadline for the submission of my annual report (February 15) earlier than the date for submission of other annual reports (April 15)?

Annual reports by trading system participants have a later submission date because of the trading period which ends on March 31. Persons reporting under section 36 do not participate in the trading system and so are not constrained by the trading period. The date of February 15 is the same reporting date as in other federal fuel regulations.

AA.15: Why do I have to submit a report for each gasoline compliance period, but not each distillate compliance period?

A seller of fuel for export must submit the report for each gasoline compliance period, which means for each calendar year (except for the first compliance period). This specificity is to provide clarification as to the period the report covers, as sellers of fuel for export have no requirements for renewable fuel content and are not otherwise linked to any specific compliance period.

AA.16: Why is the threshold value of 1000 m³ per compliance period in section 36 of the regulations different from the more widely applied threshold value of 400 m³ per year in section 2 of the regulations?

If you sell less than 1000 m³ of renewable fuel or of liquid petroleum fuel that has renewable fuel content for export in a gasoline compliance period, these requirements do not apply to you.

This is a higher threshold than the 400 m³ per year for producers and importers. The 400 m³ per year threshold for producers and importers is specified in subsection 140(3) of the Canadian Environmental Protection Act, 1999. Sellers of fuel for export, who are not producers or importers of fuel, are not subject to that threshold value, as specified in the Act.

Nevertheless, Environment Canada believes a threshold value is warranted to avoid undue administrative burden on sellers of small volumes for export and chose a threshold of 1000 m³ per compliance period.

AA.17: Why is the threshold value of 1000 m³ determined over a gasoline compliance period instead of over a calendar year?

If you sell for export less than 1000 m³ of renewable fuel or of liquid petroleum fuel that has renewable fuel content during a gasoline compliance period, these requirements do not apply to you.

Except for the first gasoline compliance period, a gasoline compliance period is identical to a calendar year (January 1 to December 31). The first gasoline compliance period is 24 ½ months, from December 15, 2010 to December 31, 2012. During that period, the threshold of 1000 m³ is more restrictive due to the longer period over which it is applied. This longer period will ensure that exports can be more closely monitored during the critical introductory period of the regulations.

AA.18: When does the period start for the determination of the 1000 m3 threshold for sales of exports?

It starts at the beginning of each gasoline compliance period, with the first one starting on December 15, 2010 for all fuels.

AA.19: Why is the information required by the province in which the batch was located when the ownership of the batch was transferred?

Environment Canada intends to track exports, including from which province the fuel is exported. A sale of fuel can take place between companies that are located in two different provinces, involving fuel that is located in a third province. Environment Canada is interested in the actual location of the fuel at the time of sale, not the location of the headquarters of the two companies involved in the transaction.

AA.20: If records and reports on sales are acceptable for exports, why can't the sales concept be expanded to a sales-volume basis for the rest of the regulated requirements, so as to harmonize the federal regulations with the provincial regulations?

The federal regulations are made under the Canadian Environmental Protection Act, 1999, which sets out the authorities to regulate fuels. Working within these authorities, and also considering product exchanges and transactions within the petroleum industry across all of Canada and the multiple refinery orbits covered in a national regulation, the sales approach was not considered to be viable for the federal regulations.

The information gathered on fuel sold for export by sellers (who are not primary suppliers, elective participants, or producers or importers of renewable fuels) will be used as a check on the cancellation of compliance units for liquid petroleum fuel containing renewable fuel that was exported.

AA.21: I am a vehicle manufacturer and export many vehicles each a year. The fuel in their fuel tanks contains renewable fuel content. Do I need to report the volumes of this fuel under section 36?

No, you do not. The requirements in section 36 apply to persons who sell fuel for export, not to those who actually export the fuel.

Sections 37 and 38 - Record-making and retention of Information

BB.1: When must I make a record?

You must make a record "as soon as is feasible but not later than 15 days after the information to be recorded becomes available."

BB.2: What if it is not "feasible" to make a record within 15 days?

You must make the record no later than 15 days after the information to be recorded becomes available. It is anticipated that records will, in most circumstances, be made very shortly after the information becomes available. However, the 15-day limit provides for circumstances that may necessitate a few extra days to make the record.

BB.3: What do I do if I discover a clerical error in my records or there is an accounting rebalance after the 15-day period?

The regulations require that records be made "as soon as feasible but no later than 15 days after the information to be recorded becomes available." If an error is discovered, it should be corrected as soon as practicable.

BB.4: Must I inform Environment Canada twice as to the location of where I am keeping my records, once under subsection 38(1) of the regulations and once in my registration report?

No, you do not have to submit the information twice. The information provided under your registration report will suffice for the purposes of subsection 38(1).

Section 38 ensures that persons not required to submit a registration report who keep their records at a place other than their principal place of business in Canada provide Environment Canada with the civic address where their records are kept.

BB.5: Do I have to keep all my supporting documentation for five years after it is made?

Yes, you do.

BB.6: If my principal place of business is in another country, can I keep my records in that other country?

No, you cannot. All records made for the purposes of these regulations and their supporting documentation must be kept at a location in Canada.

BB.7: I am a company based in the U.S. Can I keep copies of record in Canada or do I have to keep the originals? If my records and copies are accessible via a computer terminal in Canada, will that suffice?

Records required under the Regulations must be maintained at a place in Canada where they can be inspected by Environment Canada's enforcement officers immediately upon request. Records may be kept on a computer, provided they are immediately accessible.

Section 39 - Interim Reports

CC.1: Why is Environment Canada requiring interim reports?

The first gasoline compliance period is 24 ½ months in duration - more than twice the other gasoline compliance periods. The interim reports, due in early 2012, will provide useful and timely information during the critical implementation stage and will help identify potential implementation issues. The preparation of these reports will also help regulatees develop their reporting practices and procedures for the later annual reports.

CC.2: What period does the interim reports cover?

The interim reports cover the period December 15, 2010 to December 31, 2011.

CC.3: How does the interim report relate to the first annual reports?

The interim reports cover the interim period December 15, 2010 to December 31, 2011, while the first annual report covers the entire period December 15, 2010 to December 31, 2012.

CC.4: Am I required to submit an interim report if I did not produce fuel during the interim period, but did produce fuel during the remainder of the first gasoline compliance period.

No, you are not. If you did not produce or import fuel during the interim period, you are not required to submit an interim report.

CC.5: Will the interim report be used to assess my compliance with the renewable fuel requirement?

No. Because the first compliance period has not finished, the interim reports cannot be used to assess compliance with the renewable fuel requirement.

CC.6: When are the reports due?

The interim reports for sections 30 and 33 are due by April 15, 2012, while the interim reports for subsections 34(4) and 36(2) are due by February 15, 2012.

Section 40 - Coming into Force

DD.1: Many provisions of the regulations come into effect upon registration. When were the regulations registered?

August 23, 2010.

DD.2: Many provisions of the 2011 amendments come into effect upon registration. When were the amendments registered?

June 29, 2011.

DD.3: Some provisions of the regulations refer to a day that is 180 days after registration of the regulations. When is that?

February 19, 2011.

DD.4: Why do the provisions for registration reports come into force prior to the requirements for renewable fuel in gasoline and the provisions of the trading system?

It is necessary to have registration information as soon as possible, so that Environment Canada can target compliance promotion activities.

DD.5: When does the requirement for renewable fuel in gasoline come into force?

December 15, 2010.

DD.6: When does the requirement for renewable fuel in diesel fuel and heating distillate oil come into force?

July 1, 2011.

DD.7: When do the various sections come into force?

View table summarizing the coming-into-force dates.

DD.8: What provisions apply to persons undertaking various activities?

View table summarizing the provisions that apply to persons undertaking various activities.

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