O. Reg. 226/18: GREENER DIESEL - RENEWABLE FUEL CONTENT REQUIREMENTS FOR PETROLEUM DIESEL FUEL

 

ontario regulation 226/18

made under the

Environmental Protection Act

Made: March 7, 2018
Filed: April 10, 2018
Published on e-Laws: April 10, 2018
Printed in The Ontario Gazette: April 28, 2018

Amending O. Reg. 97/14

(GREENER DIESEL - RENEWABLE FUEL CONTENT REQUIREMENTS FOR petroleum DIESEL FUEL)

1. The title to Ontario Regulation 97/14 is revoked and the following substituted:

Greener Diesel — bio-based content requirements for diesel fuel

2. (1) Subsection 1 (1) of the Regulation is amended by adding the following definition:

“bio-based content” means, subject to subsection (1.2), any material that is derived from biological matter that is available on either a renewable or recurring basis;

(2) The definition of “bio-based diesel” in subsection 1 (1) of the Regulation is revoked.

(3) The definition of “blended diesel” in subsection 1 (1) of the Regulation is revoked and the following substituted:

“blended diesel” means a combination of diesel and bio-based content;

(4) The definition of “compliance period” in subsection 1 (1) of the Regulation is revoked.

(5) Subsection 1 (1) of the Regulation is amended by adding the following definitions:

“compliance year” means a calendar year in which a fuel supplier is required to comply with this Regulation;

“diesel” means a fossil-derived liquid that,

(a) is sold or represented as diesel fuel or as a fuel suitable for use in a diesel engine,

(b) is subject to evaporation at atmospheric pressure, and

(c) boils within the range of 130°C to 400°C;

(6) The definition of “facility” in subsection 1 (1) of the Regulation is revoked and the following substituted:

“facility” means,

(a) a site, vehicle, vessel or other place where a fuel supplier undertakes the manufacture of diesel or blended diesel, or

(b) a site, vehicle, vessel or other place where diesel or blended diesel is received pursuant to an inter-refiner agreement;

(7) The definition of “fuel supplier” in subsection 1 (1) of the Regulation is amended by,

(a) striking out “petroleum diesel or blends petroleum diesel with bio-based diesel” and substituting “diesel or blended diesel” in clause (a); and

(b) striking out “petroleum” wherever it appears in clauses (b) and (c).

(8) The definition of “greenhouse gas intensity” in subsection 1 (1) of the Regulation is revoked and the following substituted:

“greenhouse gas intensity” means the greenhouse gas emissions, expressed in grams of carbon dioxide equivalent emissions per megajoule of energy, that are attributable to a substance as quantified under,

(a) the GHGenius model, or

(b) another methodology if the Director provides the methodology for the substance under subsection 5 (5);

(9) The definition of “inter-refiner agreement” in subsection 1 (1) of the Regulation is amended by striking out “petroleum” wherever it appears.

(10) The definitions of “Northern Ontario” and “petroleum diesel” in subsection 1 (1) of the Regulation are revoked.

(11) Subsection 1 (1) of the Regulation is amended by adding the following definition:

“source separated organics” has the same meaning as in Ontario Regulation 79/15 (Alternative Low-Carbon Fuels) made under the Act.

(12) Section 1 of the Regulation is amended by adding the following subsections:

(1.1) In this Regulation, the following words and expressions have the same meanings as in Regulation 347 of the Revised Regulations of Ontario, 1990 (General — Waste Management) made under the Act:

1. Anaerobic digestion output.

2. Composting.

3. Municipal waste.

(1.2) For the purposes of the definition of “bio-based content” in subsection (1), bio-based content does not include biological matter derived from the biogenic carbon component of solid municipal waste that contains,

(a) source separated organics, except for residues generated by the processing of the waste;

(b) compost produced by composting;

(c) anaerobic digestion output; or

(d) leaf and yard waste collected or accepted by a leaf and yard waste system to which section 13 of Ontario Regulation 101/94 (Recycling and Composting of Municipal Waste) made under the Act applies, except for residues generated by the composting of the waste at a leaf and yard waste composting site as defined in Part V of that Regulation.

(13) Subsections 1 (2), (3) and (4) of the Regulation are amended by striking out “petroleum” wherever it appears.

3. (1) Subsection 2 (1) of the Regulation is amended by striking out “petroleum” in the portion before clause (a).

(2) Subsection 2 (2) of the Regulation is amended by striking out “bio-based diesel, blended diesel or petroleum diesel” and substituting “diesel or blended diesel”.

(3) Subsection 2 (3) of the Regulation is amended by,

(a) striking out “blended diesel or petroleum diesel” in the portion before clause (a) and substituting “diesel or blended diesel”; and

(b) striking out “petroleum” in clause (b).

4. (1) Paragraphs 1 to 3 of subsection 3 (1) of the Regulation are amended by striking out “-2011” wherever it appears.

(2) Paragraph 4 of subsection 3 (1) of the Regulation is amended by striking out “-2013”.

(3) Paragraph 5 of subsection 3 (1) of the Regulation is amended by striking out “-12”.

(4) Paragraph 6 of subsection 3 (1) of the Regulation is amended by striking out “-13”.

(5) Paragraph 7 of subsection 3 (1) of the Regulation is amended by striking out “-14”.

5. The heading to Part III of the Regulation is revoked and the following substituted:

Part III
minimum bio-based content

6. Section 4 of the Regulation is revoked and the following substituted:

Minimum bio-based content

4. Every fuel supplier shall ensure that the diesel and blended diesel that it places in the Ontario market in a calendar year contains an average adjusted volume of bio-based content of at least 4 per cent calculated in accordance with the compliance formula in section 6.

7. (1) Subsections 5 (1) and (2) of the Regulation are revoked.

(2) Subsection 5 (3) of the Regulation is amended by striking out “formulas” in the portion before clause (a) and substituting “formula”.

(3) Section 5 of the Regulation is amended by adding the following subsections:

(5) If a fuel supplier wishes to use bio-based content that is not listed in the GHGenius model, the fuel supplier shall request that the Director provide a methodology for calculating the greenhouse gas intensity of that bio-based content and the fuel supplier shall use the methodology the Director provides.

(6) For the purposes of calculating the formula in section 6, any portions of the volume of bio-based content in blended diesel placed in the Ontario market in a compliance year that have been transferred from the records of one fuel supplier to the records of another fuel supplier within the same compliance year may be included.

(7) The following rules apply when calculating the volume of bio-based content derived from solid municipal waste:

1. The bio-based carbon component shall be determined in accordance with Method B or Method C of the American Society for Testing and Materials (ASTM) document ASTM D6866, as amended from time to time, or in accordance with an equivalent set of standards and specifications that is approved in writing by the Director.

2. The bio-based carbon component shall be determined from a composite sample comprising a volume-weighted combination of samples collected weekly during a quarterly period, where a quarterly period starts on either January 1, April 1, July 1 or October 1.

3. The bio-based carbon component that is determined for a quarterly period applies to the content produced during that quarter. 

8. Section 6 of the Regulation is revoked and the following substituted:

Compliance formula

6. The following formula shall be used to calculate the average adjusted volume of bio-based content:

[{A [(91.9 − y) / 64.3] + B − C} / (D + E)] × 100

in which,

  “A”   is the volume of bio-based content contained in “E”,

  “B” is the volume of bio-based content transferred from the records of other fuel suppliers within the same compliance year,

  “C” is the volume of bio-based content transferred to the records of other fuel suppliers within the same compliance year,

  “D” is the volume of diesel that the fuel supplier placed in the Ontario market during the compliance year,

“E” is the volume of blended diesel that the fuel supplier placed in the Ontario market during the compliance year,

“y” is the greenhouse gas intensity of the bio-based content in blended diesel that the fuel supplier placed in the Ontario market during the compliance year, calculated on a weighted average basis by volume.

9. (1) Subsection 7 (1) of the Regulation of the Regulation is amended by striking out “compliance period” at the end and substituting “compliance year”.

(2) Subsection 7 (2) of the Regulation is amended by striking out “be in a form acceptable to the Director and shall” in the portion before clause (a).

(3) Clause 7 (2) (b) of the Regulation is amended by striking out “subsection 6 (1), (2) or (3)” and substituting “section 6”.

(4) Clause 7 (2) (c) of the Regulation is revoked.

(5) Clause 7 (2) (d) of the Regulation is revoked and the following substituted:

(d) in the case of a fuel supplier who placed diesel or blended diesel in the Ontario market during a compliance year that the fuel supplier reasonably expected to be used for the purpose of generating power in an aircraft or in a furnace or boiler to produce heat, a statement to that effect and the volume of diesel or blended diesel that was sold for those purposes; and

(6) Clause 7 (2) (e) of the Regulation is amended by striking out “subsection 6 (1), (2) or (3)” at the end and substituting “section 6”.

(7) Subsection 7 (3) of the Regulation is amended by,

(a) striking out “bio-based diesel contained in” and substituting “bio-based content of”; and

(b) striking out “period” at the end and substituting “year”.

(8) Section 7 of the Regulation is amended by adding the following subsection:

(4) The report filed in 2020 respecting the 2019 compliance year shall include the information required by this Regulation as it read on December 31, 2019 and is not required to include the information required by this Regulation as it read on January 1, 2020.

10. (1) Subsection 8 (1) of the Regulation is amended by striking out “petroleum diesel, bio-based diesel or blended diesel” and substituting “diesel, blended diesel or bio-based content”.

(2) Clause 8 (2) (b) of the Regulation is amended by striking out “bio-based diesel, blended diesel or petroleum diesel” in the portion before subclause (i) and substituting “diesel, blended diesel or bio-based content”.

(3) Clause 8 (2) (d) of the Regulation is revoked and the following substituted:

(d) dated contracts, records of transfer, invoices and records of payment for volumes of bio-based content that are transferred between the records of fuel suppliers; and

(4) Subsection 8 (3) of the Regulation is amended by striking out “compliance period” and substituting “compliance year”.

11. Section 9 of the Regulation is revoked and the following substituted:

Giving or submitting records

9. (1) In this Regulation, if a notice, report, statement or other document is required to be given or submitted, other than a document required to be given or submitted by the Director, the notice, report, statement or other document shall be submitted in a form provided by or approved by the Director and in a manner approved by the Director. 

(2) The Director may require that a document or other record that is given to the Director under this Regulation be given in an electronic format specified by the Director.

Commencement

12. (1) Subject to subsection (2), this Regulation comes into force on the day it is filed.

(2) Sections 1 to 11 come into force on January 1, 2020.