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Volume 54, No. 12

B.C. Reg. 112/2011

The British Columbia Gazette,

Part II

June 28, 2011

B.C. Reg. 112/2011 , deposited June 17, 2011, pursuant to the CARBON TAX ACT [sections 14.1, 14.2 and 84]. Order in Council 245/2011, approved and ordered June 16, 2011.

On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that, effective February 16, 2011, the Carbon Tax Regulation, B.C. Reg. 125/2008, is amended as set out in the attached Appendix.

— K. FALCON, Minister of Finance and Deputy Premier ; M. DE JONG, Presiding Member of the Executive Council .

Appendix

1 The Carbon Tax Regulation, B.C. Reg. 125/2008, is amended by adding the following Part:

Part 4.1 - Biomethane Credit

Definitions

22.1

(1) In this Part:

"biomethane contract" means a written contract, entered into on or after February 16, 2011 between a qualifying retail dealer and a purchaser, that

(

a) provides for the sale by the qualifying retail dealer to the purchaser of qualifying fuel,

(

b) specifies the notional biomethane content for the qualifying fuel to be sold under the contract,

(

c) provides that a portion of the consideration payable under the contract for the qualifying fuel will be attributable to the purchase of the notional biomethane content specified in the contract regardless of the actual amount of biomethane, if any, supplied, and

(

d) does not provide that the portion of the consideration attributable to the purchase of the notional biomethane content specified in the contract will increase or decrease based on the actual amount of biomethane, if any, supplied;

"notional biomethane content" , in relation to qualifying fuel sold or to be sold under a biomethane contract, means

(

a) the amount of biomethane that is deemed by the contract to be supplied under the contract, or

(

b) the percentage of qualifying fuel that is deemed by the contract to be biomethane,

regardless of the actual amount of biomethane, if any, supplied;

"qualifying fuel" means

(

a) natural gas, or

(

b) a blend composed of natural gas and biomethane if the proportions of the natural gas and biomethane in the blend cannot be determined;

"qualifying purchaser" means a purchaser to whom a biomethane credit must be provided under

section 22.2 (1);

"qualifying retail dealer" means a retail dealer of natural gas who

(

a) purchases or manufactures biomethane, and

(

b) blends the biomethane with natural gas for sale in British Columbia.

(2) For the purposes of sections 22.3 to 22.7, amounts of biomethane or qualifying fuel must be measured in cubic metres at standard reference conditions.

Provision of biomethane credit

22.2

(1) A qualifying retail dealer, on behalf of the government, must provide a biomethane credit to a purchaser in respect of a sale, within British Columbia, of qualifying fuel, in the amount determined in accordance with

section 22.3, if

(

a) the sale is made under a biomethane contract, and

(

b) the purchaser is required under the Act to pay tax in respect of the sale at the time of purchase.

(2) An amount to be credited under subsection (1) in respect of a sale must be credited at the time of purchase.

Biomethane credit amount

22.3

The amount of the biomethane credit payable under

section 22.2 in respect of a sale under a biomethane contract is determined by the following formula:

amount of biomethane credit = notional amount × tax rate

where

notional amount

either of the following, as applicable:

(

a) the amount of biomethane that is deemed by the contract to be supplied under the contract in respect of the sale, or

(

b) the amount determined by multiplying the percentage of qualifying fuel that is deemed by the contract to be biomethane by the amount of qualifying fuel supplied under the contract in respect of the sale;

tax rate

the rate of tax for natural gas under the Act that applies at the time of purchase.

Refund amount

22.4

The amount of the refund payable to a qualifying retail dealer under

section 14.2 of the Act in respect of tax remitted for sales made in each reporting period is the lesser of the following amounts:

(

a) the sum of the biomethane credits provided by the qualifying retail dealer to qualifying purchasers for sales made during the reporting period;

(

b) the amount equal to the total amount of biomethane that the qualifying retail dealer blends with natural gas in the reporting period for sale within British Columbia in respect of biomethane contracts multiplied by the tax rate for natural gas under the Act that applies at the time the biomethane is blended.

Application for refund

22.5

When submitting an application for a refund under

section 14.2 of the Act, a qualifying retail dealer must submit a separate application for each reporting period.

Records respecting provision of biomethane credit

22.6

(1) A qualifying retail dealer who must provide biomethane credits must keep, in accordance with subsections (2) and (3), all records relating to the provision of biomethane credits, including, without limitation, the following:

(

a) copies of all of the retail dealer's biomethane contracts that provide for the sale, within British Columbia, of qualifying fuel;

(

b) a record of the date on which each biomethane contract is entered into with a qualifying purchaser;

(

c) a record of the name and address of each qualifying purchaser;

(

d) records relating to the amount of biomethane that the qualifying retail dealer, in each reporting period, blends with natural gas for sale within British Columbia in respect of biomethane contracts;

(

e) records relating to the total amount of biomethane that the qualifying retail dealer, in each reporting period, blends with natural gas for sale within British Columbia;

(

f) records relating to each biomethane credit provided, including, without limitation, the following:

(

i) the amount of qualifying fuel sold;

(ii) the amount of the biomethane credit provided.

(2) Each entry respecting a biomethane credit in the records referred to in subsection (1) must be separate and distinguishable from other entries made in the record.

(3) The records required to be kept under subsection (1) must be kept by the qualifying retail dealer at the qualifying retail dealer's principal office or principal place of business in British Columbia.

Invoice if a biomethane credit provided

22.7

If a qualifying retail dealer provides a biomethane credit to a qualifying purchaser, the qualifying retail dealer must provide to the qualifying purchaser an invoice that specifies

(

a) the date of the sale,

(

b) the name and address of the qualifying retail dealer,

(

c) the name and address of the qualifying purchaser,

(

d) the total amount of qualifying fuel sold,

(

e) the applicable rate of tax, and

(

f) as a separate item, the amount of the biomethane credit.

Section 46 is amended by adding " 22.6, 22.7, " after " 14, ".

3 The

Schedule is amended in paragraph 2 by striking out " of taxes and security remaining unpaid " and substituting " remaining unpaid or unremitted ".

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