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Volume 55, No. 24

335/2012

The British Columbia Gazette,

Part II

December 4, 2012

B.C. Reg. 335/2012 , deposited November 23, 2012, pursuant to the MISCELLANEOUS STATUTES AMENDMENT ACT (NO. 2), 2012 [sections 41 and 96] and the GREENHOUSE GAS REDUCTION (RENEWABLE AND LOW CARBON FUEL REQUIREMENTS) ACT [sections 24 to 27]. Order in Council 771/2012, approved and ordered November 22, 2012.

On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that,

(

a) effective July 1, 2013,

(

i) sections 15 to 28 and 41 of the Miscellaneous Statutes Amendment Act (No. 2), 2012 , S.B.C. 2012, c. 18, are brought into force, and

(ii) the Renewable and Low Carbon Fuel Requirements Regulation, B.C. Reg. 394/2008, is amended as set out in the attached

Schedule 1, and

(

b) effective January 1, 2014,

(

i) section 29 of the Miscellaneous Statutes Amendment Act (No. 2), 2012 , S.B.C. 2012, c. 18, is brought into force, and

(ii) the Renewable and Low Carbon Fuel Requirements Regulation, B.C. Reg. 394/2008, is amended as set out in the attached

Schedule 2.

— R. COLEMAN, Minister of Energy, Mines and Natural Gas and Minister Responsible for Housing and Deputy Premier ; M. POLAK, Presiding Member of the Executive Council .

Schedule 1

Section 2 of the Renewable and Low Carbon Fuel Requirements Regulation, B.C. Reg. 394/2008, is amended by striking out " A fuel must meet the ASTM International Standard ASTM D6751 Standard Specification for Biodiesel Fuel Blend Stock (B100) for Middle Distillate Fuels, " and substituting " A fuel must meet the Canadian General Standards Board Standard CAN/CGSB-3.524-2011 Biodiesel (B100) for Blending in Middle Distillate Fuels, ".

Section 3.1 (2) is amended by striking out " diesel fuel " in both places and substituting " fuel ".

3 Sections 5 and 5.1 are repealed and the following substituted:

Renewable fuel

(1) Gasoline produced from biomass is prescribed as renewable fuel in relation to gasoline class fuel.

(2) The following substances are prescribed as renewable fuel in relation to diesel class fuel:

(

a) diesel fuel produced from biomass;

(

b) hydrogenation-derived renewable diesel fuel.

Section 7 (1) is repealed and the following substituted:

(1) A

Part 2 fuel supplier must ensure that the volume of diesel class fuel it supplies in a compliance period contains at least 4% renewable fuel content by volume.

Section 7.1 (4) is repealed.

Section 7.2 is amended

(

a) by repealing subsection (1) (

a) and substituting the following:

(

a) the person supplies not more than 75 million litres of

Part 2 fuels in the compliance period, and ,

(

b) in subsection (1) (

b) by repealing everything before subparagraph (

i) and substituting " instead of completing a

Part 2 compliance report for that compliance period, the person submits a report to the director on or before the date on which a

Part 2 compliance report would be due for that compliance period, which report ",

(

c) in subsection (1) (b) (

i) by striking out " and " at the end of clause (

B) and by adding the following clause:

(

D) that the person elects not to be considered a

Part 2 fuel supplier for that compliance period, and , and

(

d) by adding the following subsection:

(3) A person that, under this section, is not considered to be a

Part 2 fuel supplier for a compliance period must maintain at its principal place of business in British Columbia, if any, or the place of business of its attorney, otherwise, books of accounts and the records referred to in subsection (1) (b) (ii) (

A) for a period of 7 years after the end of that compliance period.

7 The following

section is added:

Application to be a

Part 2 fuel supplier

7.21 An application for the purposes of

section 4 (1) of the Act must include all the following:

(

a) legal name and business addresses of the applicant;

(

b) nature of the applicant's business;

(

c) names of the owners or, if the applicant is a corporation, the names and addresses of the directors;

(

d) a description of the business activities in respect of which the applicant wishes to be designated as a

Part 2 fuel supplier;

(

e) other information requested by the director.

Section 7.3 (1) is amended by striking out " On and after January 1, 2011, a person " and substituting " A person ".

Section 9 (4) (

k) is amended by striking out " or (4) of this regulation ".

Section 11.02 is repealed and the following substituted:

Low carbon fuel requirement

11.02

(1) For the purposes of the formula set out in

section 6 (4) of the Act, for a compliance period set out in Column 1 of Table 1,

(

a) the carbon intensity limit for gasoline class fuel is the limit set out in Column 2 opposite the compliance period, and

(

b) the carbon intensity limit for diesel class fuel is the limit set out in Column 3 opposite the compliance period.

Table 1

COLUMN 1

Compliance Period

COLUMN 3

Carbon Intensity Limit for Diesel Class Fuel

COLUMN 2

Carbon Intensity Limit for Gasoline Class Fuel

(g CO 2 e/MJ)

(g CO 2 e/MJ)

July 1, 2013 to December 31, 2014

92.38

86.20

91.21

85.11

90.28

84.23

88.87

82.93

87.47

81.62

86.07

80.31

2020 and subsequent compliance periods

84.20

78.56

(2) For the purposes of the formula set out in

section 6 (4) of the Act,

(

a) the energy effectiveness ratio for a diesel class fuel set out in Column 1 of Table 2 is the ratio set out in Column 2 opposite the fuel, and

(

b) the energy effectiveness ratio for a gasoline class fuel set out in Column 1 of Table 2 is the ratio set out in Column 3 opposite the fuel.

Table 2

COLUMN 1

Fuel

COLUMN 2

Diesel Class Fuel Energy Effectiveness Ratio

COLUMN 3

Gasoline Class Fuel Energy Effectiveness Ratio

Petroleum-based diesel or renewable fuel in relation to diesel class fuel

1.0

Not applicable

Petroleum-based gasoline or renewable fuel in relation to gasoline class fuel

Not applicable

1.0

Hydrogen

1.9

2.5

LNG

1.0

Not applicable

CNG

0.9

1.0

Propane

1.0

1.0

Electricity

2.7

3.4

(3) For the purposes of the formula in

section 6 (4) of the Act, for a fuel set out in Column 1 of Table 3, the energy content of the fuel is the energy density, set out in Column 2 opposite that fuel, multiplied by the quantity of that fuel supplied by the

Part 3 fuel supplier in the applicable compliance period.

Table 3

COLUMN 1

Fuel

COLUMN 2

Energy Density/Unit

Petroleum-based diesel and diesel produced from biomass

38.65 MJ/L

Hydrogenation-derived renewable diesel fuel

36.51 MJ/L

Biodiesel

36.94 MJ/L

Petroleum-based gasoline and gasoline produced from biomass

34.69 MJ/L

Ethanol

23.58 MJ/L

Hydrogen

120.00 MJ/kg

LNG

52.87 MJ/kg

CNG

38.26 MJ/m 3

Propane

25.59 MJ/L

Electricity

3.60 MJ/kWh

(4) For the purposes of the formula in

section 6 (4) of the Act,

(

a) the carbon intensity for petroleum-based diesel is 93.55 g CO 2 e/MJ,

(

b) the carbon intensity for petroleum-based gasoline is 87.29 g CO 2 e/MJ,

(

c) default carbon intensities referred to in

section 6 (5) (d) (

i) of the Act are set out in

section 11.04 of this regulation,

(

d) the calculation referred to in

section 6 (5) (d) (ii) (

A) of the Act is described in

section 11.06 of this regulation, and

(

e) the procedure for proposing an alternative method referred to in

section 6 (5) (d) (ii) (

B) of the Act is set out in

section 11.07 of this regulation.

11 Sections 11.021, 11.022, 11.03 and 11.04 are repealed and the following substituted:

Exemption from "Part 3 fuel supplier"

11.022

(1) A person who would otherwise be a

Part 3 fuel supplier for a compliance period is not considered to be a

Part 3 fuel supplier for the compliance period if

(

a) for

(

i) the compliance period from July 1, 2013 to December 31, 2014, the person supplies

Part 2 fuels but not more than 112.5 million litres of

Part 2 fuels, and

(ii) the 2015 compliance period and any compliance period after that, the person supplies

Part 2 fuels but not more than 75 million litres of

Part 2 fuels, and

(

b) instead of completing a

Part 3 compliance report for that compliance period, the person submits a report to the director on or before the date on which a

Part 3 compliance report would be due for that compliance period, which report

(

i) sets out

(

A) the person's identifying and contact information, as applicable, as described in

section 11.08 (3),

(

B) the compliance period to which the report relates,

(

C) the volume of

Part 2 fuel supplied by the person in that compliance period, and

(

D) that the person elects not to be considered a

Part 3 fuel supplier for that compliance period, and

(ii) includes the signature of the officer or employee submitting the report on behalf of the

Part 3 fuel supplier and a declaration of that officer or employee containing

(

A) a statement that the records evidencing the volume of

Part 2 fuel supplied in the compliance period are available on request, and

(

B) the statements described in

section 11.08 (7) (

c) and (d).

(2) Section 9 (6) (

a) applies for the purposes of evidencing the volume of

Part 2 fuel reported under subsection (1) (b) (i) (

C) of this section.

(3) A person that, under this section, is not considered to be a

Part 3 fuel supplier for a compliance period must maintain at its principal place of business in British Columbia, if any, or the place of business of its attorney, otherwise, books of accounts and the records referred to in subsection (1) (b) (ii) (

A) for a period of 7 years after the end of that compliance period.

Application to be a

Part 3 fuel supplier

11.023 An application for the purposes of

section 7.1 (1) of the Act must include all the following:

(

a) legal name and business addresses of the applicant;

(

b) nature of the applicant's business;

(

c) names of the owners or, if the applicant is a corporation, the names and addresses of the directors;

(

d) a description of the business activities in respect of which the applicant wishes to be designated as a

Part 3 fuel supplier;

(

e) other information requested by the director.

Default carbon intensity

11.04 For the purposes of

section 6 (5) (d) (

i) of the Act, the carbon intensity for a

Part 3 fuel set out in Column 1 of the Table to this

section is deemed to be the carbon intensity set out in Column 2 opposite the fuel.

Table

COLUMN 1

Fuel

COLUMN 2

Carbon Intensity (g/MJ)

Renewable fuel in relation to diesel class fuel

93.55

Propane

75.35

Renewable fuel in relation to gasoline class fuel

87.29

CNG

62.14

LNG

63.26

Electricity

11.00

Hydrogen

95.51

Section 11.06 (2) is amended by striking out "

section 6 (3) (b) (ii) of the Act, " and substituting "

section 6 (5) (d) (ii) (

A) of the Act, ".

Section 11.07 is amended

(

a) in subsection (1) by striking out "

section 6 (3) (b) (iii) of the Act, " and substituting "

section 6 (5) (d) (ii) (

B) of the Act, ", and

(

b) in subsection (8) by striking out "

section 6 (4) of the Act. " and substituting "

section 6 (7) of the Act. "

Section 11.08 (4) is amended

(

a) in paragraph (

b) by striking out " and included in the determination of carbon intensity for the purposes of

section 6 (1) of the Act; " and substituting " and included in the calculation under

section 6 (4) of the Act; ", and

(

b) by repealing paragraphs (

d) to (

i) and substituting the following:

(c.1) if the

Part 3 fuel supplier determined the carbon intensity of a

Part 3 fuel using the method referred to in

section 11.06, a record of inputs to an approved GHGenius, as defined in

section 11.06 (1), and any additional information necessary to reproduce, using the approved GHGenius, the result submitted;

(c.2) if the

Part 3 fuel supplier determined the carbon intensity of a

Part 3 fuel using the method referred to in

section 11.07, a copy of the director's approval of an alternative method and, if the alternative method uses a spreadsheet model designed for the same purposes as GHGenius or uses another electronic method of calculating carbon intensity, a record of inputs to the spreadsheets for that alternative method or to the electronic calculation, as applicable;

(

d) the quantity and expected use of each

Part 3 fuel that

(

i) was supplied by the

Part 3 fuel supplier in the compliance period, and

(ii) is excluded under

section 6 (3) of the Act from the calculation under

section 6 (4) of the Act;

(

e) for each

Part 3 fuel supplier, in this paragraph called the " transferring

Part 3 fuel supplier ", from which the

Part 3 fuel supplier acquired debits or validated credits,

(

i) the legal name and address of the transferring

Part 3 fuel supplier, and

(ii) the number of debits or validated credits acquired from the transferring

Part 3 fuel supplier;

(

f) for each

Part 3 fuel supplier, in this paragraph called the " acquiring

Part 3 fuel supplier ", to which the

Part 3 fuel supplier transferred debits or validated credits,

(

i) the legal name and address of the acquiring

Part 3 fuel supplier, and

(ii) the number of debits or validated credits transferred to the acquiring

Part 3 fuel supplier.

Section 11.08 (6) is repealed.

Section 11.08 (9) is amended

(

a) in paragraph (

a) by striking out " class of

Part 3 fuels reported " and substituting "

Part 3 fuel reported ", and

(

b) by repealing paragraph (

b) and substituting the following:

(

b) dated contracts, including, without limitation,

Part 3 agreements, records of transfer, invoices and records of payments for the debits and validated credits transferred to or by the

Part 3 fuel supplier in the compliance period.

Section 13 (1.1) is amended by striking out " per tonne of carbon dioxide equivalent emissions ".

18 Sections 26 (1) and 27 are repealed.

19 The following

section is added:

Part 3 agreements – transition

28 The director must not agree to issue more than 130 000 credits in the compliance period from July 1, 2013 to December 31, 2014.

Schedule 2

Section 7 (3) of the Renewable and Low Carbon Fuel Requirements Regulation, B.C. Reg. 394/2008, is amended

(

a) in the definition of " RF deferred " by striking out " or 29.1 (1) (a) ", and

(

b) in the definition of " RF added " by striking out " or 29.1 (1) (b) ".

Section 9 (4) is amended

(

a) in paragraph (

i) by striking out " of this regulation or

section 29.1 of the Act ", and

(

b) in paragraph (

j) by striking out " of this regulation or

section 29.1 of the Act in previous compliance periods and, in the case of a deferral under

section 29.1 of the Act, the compliance period from which the obligation was deferred; " and substituting " in previous compliance periods; ".

Section 26 is repealed.

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