Fuel Charge Relief: Facilities subject to provincial carbon pricing systems for industry: Alberta

The Federal Fuel Charge and Alberta’s TIER Regulation

The federal Fuel Charge applies in Alberta alongside the provincial output-based performance standards system; the Technology Innovation and Emissions Reduction (TIER) Regulation.

Exemption eligibility criteria

If registered as an emitter with the Canada Revenue Agency (CRA), owners and operators of facilities subject to TIER can become eligible for certain exemptions from the federal fuel charge. To register as an emitter with the CRA, you must own or operate all parts of a covered facility. A facility is a covered facility if, in accordance with Part 9 of the Fuel Charge Regulations:

• the facility is located entirely in Alberta
• all parts of the facility function as a single integrated site
• all parts of the facility have at least one owner or operator in common
• the facility is subject to TIER, and
• you have obtained a Statement from the federal Minister of the Environment and Climate Change confirming the facility is subject to TIER

Federal Fuel Charge exemption process

Once you have registered your facility(ies) in TIER and received a Confirmation of Regulation from Alberta Environment and Protected Areas (AEPA), complete the following three (3) steps:

Step 1: Apply for a determination and obtain a Statement from the federal Minister of the Environment and Climate Change

To apply for a determination, the primary contact (the Certifying Official recognized by AEPA) must send the following to Environment and Climate Change Canada (ECCC) at ptintegrationpt@ec.gc.ca:

For large emitters and opted-in facilities:

• a completed Application for a Determination (request this form at ptintegrationpt@ec.gc.ca)
• a map* of the location and boundaries of the facility, and
• a copy of AEPA’s Confirmation of Regulation email with all associated documentation

*The map must show the location and boundaries of the facility. To indicate its location, include its surroundings. Draw the boundary in accordance with the definition of "facility" under TIER. Maps must be kmz or kml format.

Repeat this step for each large-emitter or opted-in facility registered under TIER.

For aggregate facilities or facilities that are part of an aggregate:

• the full name and federal business number of the applicant (i.e., the owner or operator of the facilities)
• a confirmation of the role of the applicant: owner of the facilities, operator of the facilities, or both, and
• a copy of AEPA’s Confirmation of Regulation email with all associated documentation

Repeat this step for each aggregate facility registered under TIER or for any facility that is part of an aggregate facility under TIER.

Once your application is processed, ECCC will issue you a Statement. You will need this for Step 2.

Step 2: Register as an emitter with the CRA

To register the facility owner or operator as an emitter, complete and submit the L400 Fuel Charge Registration and the L400-1 Fuel Charge Registration Schedule using the same legal name and federal business number to which ECCC’s Statement was issued

The CRA will issue an endorsement letter confirming registration as an emitter with an effective date. The effective date will be the first of the month CRA receives the completed L400 and L400-1, or the effective date on the Statement you obtained in Step 1, whichever effective date is later. You are not eligible for exemptions from the federal fuel charge—in relation to fuel received for use at the covered facility—prior to that effective date.

Repeat this step for each large emitter and opted-in facility for which you have been issued a Statement.

Note: Owners/operators of facilities that are part of an aggregate facility under TIER only need to register as an emitter with CRA once for all facilities that are part of a TIER aggregate in Alberta.

Step 3: Provide a complete Exemption Certificate to your Supplier/ Avoid s.18 charge

Visit Fuel charge relief to download, complete, and sign an exemption certificate.

Provide this exemption certificate to your fuel supplier.

You are then eligible to receive deliveries of fuel from that supplier without having to pay the federal fuel charge if the exemption certificate applies with respect to the delivery in accordance with section 36 of the Greenhouse Gas Pollution Pricing Act (GGPPA).

If you are also a registered distributor, you can avoid the charge that would otherwise be applicable under section 18 of the GGPPA for fuel that is used on your covered facility (including flare).

For more information on registering as an emitter, and emitter responsibilities under the GGPPA, see FCN5 Emitters Under the Greenhouse Gas Pollution Pricing Act.

Obligation to Notify the federal Minister of the Environment and Climate Change

If you have been issued a Statement with respect to a facility, you must notify the federal Minister of the Environment and Climate Change of any of the following changes in respect of the facility:  

• you cease to be the owner or operator of the facility
• there is a change to the boundary of the facility, or
• the facility is no longer subject to TIER

To provide notice, the primary contact (the Certifying Official recognized by AEPA) must send the following to ECCC at ptintegrationpt@ec.gc.ca:

1. Owner/Operator legal name and federal business number
2. Name(s) of the facility(ies) involved as well as the unique facility ID issued by the province and, if applicable, by Petrinex
3. Statement Number issued by ECCC
4. Description of the change and supporting information (e.g., date you cease to own or operate facility; name of the new owner/operator; copy of revised or updated map of the location and boundaries, etc.), and
5. Confirmation that AEPA has been notified of the change. Go to TIER Conventional Oil and Gas for conventional oil and gas aggregates or Technology Innovation and Emissions Reduction Regulation for large emitters or opted-in facilities for more information on how to notify AEPA of a change.

Note: If you are also registered as an emitter with CRA, you may need to cancel your registration. For more information about this process, visit FCN5 Emitters Under the Greenhouse Gas Pollution Pricing Act.

Scenarios specific to conventional oil and gas aggregates

Adding one or more facilities to your existing aggregate

You are not eligible to use an exemption certificate with respect to fuel delivered for use at the added facility unless you:

• have obtained a Statement for the particular facility(ies) added, and
• are registered as an emitter with CRA with respect to facilities that are part of a TIER aggregate.

Removals/ceasing to own or operate one or more facilities in an existing aggregate

Your Statement is no longer effective, and you are not eligible for exemptions from the federal fuel charge in relation to a facility, if:

• you cease to own or operate the facility, or
• the facility is no longer subject to TIER.

You must notify ECCC without delay at ptintegrationpt@ec.gc.ca. See “Obligation to Notify the federal Minister of the Environment and Climate Change” above.

If you no longer own or operate any facilities that are part of an aggregate under TIER, you are also required to cancel your related emitter registration with CRA. For more info, see: FCN5 Emitters Under the Greenhouse Gas Pollution Pricing Act

Becoming the owner/operator of a facility already subject to TIER

If you become the owner or operator of an aggregate, or a facility or facilities within an aggregate, that are already subject to TIER, you are not automatically eligible for exemptions related to it.

You must first:

• have obtained a Statement from ECCC for the particular facility(ies), AND
• be registered as an emitter with CRA with respect to facilities that are part of a TIER aggregate in Alberta.  

Contact ptintegrationpt@ec.gc.ca to find out more.