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

The Federal Fuel Charge and Saskatchewan’s Output-Based Performance Standards (OBPS)

The federal Fuel Charge applies in Saskatchewan, alongside the province’s Output-Based Performance Standards (OBPS) Program.

Exemption eligibility criteria

If registered as an emitter with the Canada Revenue Agency (CRA), owners and operators of facilities subject to Saskatchewan’s Output-Based Performance Standards Program 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 Saskatchewan
• 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 Saskatchewan’s Output-Based Performance Standards Program, and
• you have obtained a Statement from the federal Minister of the Environment and Climate Change confirming the facility is subject to the Saskatchewan’s Output-Based Performance Standards Program

Federal Fuel Charge exemption process

Once you have registered your facility(ies) in Saskatchewan’s Output-Based Performance Standards Program and received a Confirmation of Registration email from the Saskatchewan Ministry of Environment, 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 Authorized Signing Officer recognized by Saskatchewan’s Ministry of Environment) must send the following to Environment and Climate Change Canada (ECCC) at ptintegrationpt@ec.gc.ca:

For all facilities excluding aggregate 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 the Saskatchewan Ministry of Environment’s confirmation of registration 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 Saskatchewan’s Output-Based Performance Standards Program. Maps must be kmz or kml format.

Repeat this step for each facility registered under Saskatchewan’s Output-Based Performance Standards Program.

For aggregate facilities:

• 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
• a copy of the Saskatchewan Ministry of Environment’s confirmation of registration email with all associated documentation

Repeat this step for each aggregate facility registered under Saskatchewan’s OBPS or for any facility that is part of an aggregate facility under OBPS.

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 facility for which you have been issued a Statement.

Note: owners/operators of facilities that are part of an aggregate facility only need to register with CRA as an emitter in respect to a Saskatchewan OBPS aggregate facility once (not separately for every facility that is part of an aggregate).  

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 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 Saskatchewan’s Output-Based Performance Standards Program
  

To provide notice, the primary contact (the Authorized Signing Officer recognized by Saskatchewan’s Ministry of Environment) 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 the Saskatchewan Ministry of Environment has been notified of the change. Go to Guidance for Emitters | Climate Resilience in Saskatchewan for more information on how to update your information with the province’s Ministry of Environment.

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 upstream oil and gas aggregates

Adding one or more facilities to your existing aggregates

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 a Saskatchewan OBPS aggregate facility.

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 Saskatchewan’s Output Based Performance Standards Program

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 in an aggregate, you are also required to cancel your emitter registration with CRA in respect to that Saskatchewan Output Based Performance Standards Program aggregate facility. For more info, see: FCN5 Emitters Under the Greenhouse Gas Pollution Pricing Act.

Becoming the owner/operator of a facility already subject to Saskatchewan’s Output Based Performance Standards Program

If you become the owner or operator of an aggregate, or a facility or facilities within an aggregate, that are already subject to Saskatchewan’s Output Based Performance Standards Program, you are not automatically eligible for exemptions related to it.

You must first:

• ensure those facilities are registered under your aggregate facility in the Saskatchewan Output Based Performance Standards Program*
• 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 Saskatchewan OBPS aggregate facility

*Operators of existing aggregate facilities under the Saskatchewan Output Based Performance Standards Program must include the facilities in the next required update to facility information or that aggregate facility. Operators applying to register a new aggregate facility in the Saskatchewan Output Based Performance Standards Program must include the facilities in their facility list at registration.   

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