Low Carbon Fuels Act

Low Carbon Fuels Act 21 2022 June 2, 2022 76470131/654956955/403292405 E4tlc22021 1 Interpretation 1 Definitions and Application Definitions 1 In this Act: allocation agreement means an agreement under section 7 (1) [allocation agreements] ; alternative , in relation to a base fuel, has the meaning given to it in section 5 [alternatives to base fuels] ; appeal board means the Environmental Appeal Board under the Environmental Management Act ; applicable purpose means a transportation, and b any prescribed purpose; assessment means assessment under section 30 [assessment by director] ; balance , in relation to a person, means the number of compliance units held by the person; base fuel means any of the following: a fossil-derived diesel fuel; b fossil-derived gasoline; c fossil-derived jet fuel; d a prescribed fossil-derived fuel; carbon dioxide equivalent means the mass of carbon dioxide that would produce the same global warming impact as a given mass of another greenhouse gas, as determined in accordance with the regulations of the minister; carbon intensity , in relation to fuel, means the greenhouse gas emissions attributable to the fuel proportionate to the energy provided by the fuel in its expected use, expressed as grams of carbon dioxide equivalent per megajoule of energy; carbon intensity record has the meaning given to it in section 18 [carbon intensity record] ; category , in relation to fuel, has the meaning given to it in section 3 [categorization of fuels] ; compliance date , in relation to a compliance period, means a prescribed date that is after the compliance period; compliance period means a prescribed period of time; component , in relation to a base fuel, has the meaning given to it in section 4 [components of base fuels] ; credit means a positive number of compliance units; debit means a negative number of compliance units; director means the government employee designated in writing by the minister as the director for the purposes of this Act; eligible renewable fuel , in relation to a category of fuel, means a fuel prescribed for the category by the minister; final supply equipment means the final equipment, determined in accordance with the regulations, through which a fuel is supplied for use; fossil-derived , in relation to a fuel, means derived from material formed in the geological past from the remains of living organisms; fuel means a fuel or other energy source; greenhouse gas has the same meaning as in the Climate Change Accountability Act ; inter-refiner agreement means an allocation agreement in relation to a a base fuel, or b a fossil-derived component of a base fuel; local utility means a municipality or regional district that would be a public utility but for paragraph (c) of the definition of "public utility" in section 1 (1) of the Utilities Commission Act ; market , in relation to fuel, has the meaning given to it in section 6 (1) [supply and marketing of fuel] ; notice of assessment means a notice under section 30; notice of reassessment means a notice under section 31 [reassessment by director] ; public utility has the same meaning as in section 1 (1) of the Utilities Commission Act ; published carbon intensity , in relation to a fuel, means the carbon intensity published under section 20 [determining carbon intensity — publication] for the fuel; reassessment means reassessment under section 31; recorded carbon intensity , in relation to a fuel, means the carbon intensity referenced or specified in the carbon intensity record for the fuel; reportably export has the meaning given to it in section 8 (1) [reportable export] ; reportably supply has the meaning given to it in section 6 (2) [supply and marketing of fuel] ; responsible , in relation to fuel, has the meaning given to it in section 6; supply , in relation to fuel, means to sell or otherwise provide the fuel to a person; type A fuel means a fuel other than a type B fuel; type B fuel means any of the following: a electricity; b natural gas; c propane; d a prescribed fuel. Application of Act 2 1 Subject to subsection (2), this Act applies in relation to fuel that is a a base fuel, or b a component of or alternative to a base fuel. 2 This Act does not apply in relation to a prescribed fuel, or b the use, supply or export of fuel in the prescribed circumstances or in an amount less than the prescribed amount. 2 Categorization of Fuels Categorization of fuels 3 For the purposes of this Act, fuels are to be categorized into categories defined by a base fuel and consisting of a the base fuel, and b components of and alternatives to the base fuel. Components of base fuels 4 Subject to the regulations of the minister, a fuel is a component of a base fuel if the fuel is supplied to be used as a component of the base fuel. Alternatives to base fuels 5 1 Subject to the regulations of the minister, a fuel is an alternative to a base fuel if a the fuel is supplied for the purpose of transportation and the base fuel would most likely be used for that purpose if the only useable fuels were base fuels, or b the fuel is supplied for a purpose other than transportation and the base fuel would most likely be used for that purpose if the only useable fuels were i base fuels, and ii electricity supplied by a public or local utility. 2 For the purpose of subsection (1) (b), electricity supplied by a public or local utility is to be considered not to be useable at a location if the location is a in a prescribed geographic area, or b at least the prescribed distance from a connection to a prescribed electrical transmission grid. 2 Responsibility for Fuel Supply and marketing of fuel 6 1 A person markets fuel in a compliance period if a the fuel is reportably supplied in the period, and b the person is responsible for the fuel at the end of the compliance date for the period. 2 A fuel is reportably supplied in a compliance period if the fuel a has not previously been reportably supplied, and b meets one of the following criteria in the period: i the fuel is used in British Columbia; ii the fuel is type A fuel and is supplied in British Columbia by a person who is responsible for the fuel at the end of the compliance date for the period; iii the fuel is type B fuel and is supplied in British Columbia through final supply equipment. 3 A person becomes responsible for a type A fuel if the person a manufactures or imports the fuel in British Columbia, b is made responsible for the fuel under the regulations, or c is made responsible for the fuel under an allocation agreement. 4 A person becomes responsible for a type B fuel if the person a supplies the fuel through final supply equipment in British Columbia, b is made responsible for the fuel under the regulations, or c is made responsible for the fuel under an allocation agreement. 5 A person who becomes responsible for a fuel under a paragraph in subsection (3) or (4) ceases to be responsible for the fuel if another person becomes responsible for the fuel under a later paragraph of subsection (3) or (4) or under a further allocation agreement. Allocation agreements 7 1 Subject to subsection (2) and the regulations, a person may, in relation to fuel for which the person is responsible, enter into an agreement with another person that makes the other person responsible for the fuel. 2 An agreement under subsection (1) is subject to the following restrictions: a an agreement in relation to a type A fuel may allocate responsibility to a person to whom the allocating person supplies the fuel; b an agreement in relation to a type B fuel may allocate responsibility i to a person to whom the allocating person supplies the fuel, ii to a person who supplied the fuel to the allocating person, if responsibility for the fuel has not previously been allocated as described in subparagraph (i), or iii to any person, in the case of electricity. Reportable export 8 1 A person reportably exports fuel in a compliance period if a the person exports the fuel out of British Columbia in the period, and b the fuel was marketed in British Columbia for an applicable purpose in or before the period. 2 If fuel is reportably exported and brought back into British Columbia, a reportable supply made before the reportable export is not to be considered for the purposes of section 6 (2) (a). 3 Renewable Fuel Requirements Renewable fuel target 9 1 In this section: tracked category means a the diesel fuel category, b the gasoline fuel category, c the jet fuel category, and d a prescribed category; tracked fuel , in relation to a tracked category, means a the base fuel for the category, b fossil-derived components of that base fuel, and c eligible renewable fuel in the category. 2 This section applies on assessment and on reassessment. 3 A person who markets tracked fuel in a tracked category in a compliance period must ensure that, of that fuel, eligible renewable fuel comprises at least the percentage prescribed for the period. 4 The percentage prescribed under subsection (3) in respect of a compliance period may be zero if the tracked category to which the percentage relates is a the jet fuel category, or b a category prescribed for the purposes of paragraph (d) of the definition of "tracked category". Notional transfer, retention and deferral 10 1 Subject to the regulations, a person who is required to meet a renewable fuel target under section 9 in a compliance period may notionally transfer all or part of the eligible renewable fuel that the person markets in the period to another person who is required to meet the target and agrees to the transfer. 2 If a person who is required to meet a renewable fuel target under section 9 exceeds the target, the person may a notionally retain an amount of the eligible renewable fuel that does not exceed the lesser of the excess and the prescribed portion of the target, and b apply that amount to the target for the next compliance period. 3 Despite subsection (2), if a person who is required to meet a renewable fuel target under section 9 fails to meet the target, the person may a defer a portion of the target that does not exceed the lesser of the deficiency and the prescribed portion of the target as it stands before any addition under paragraph (b) of this subsection, and b add the deferred portion to the target for the next compliance period. Renewable fuel labelling 11 If and as required by the regulations of the minister, a person who supplies fuel to a consumer must a post labels respecting the renewable fuel content of the fuel, and b give notice to the consumer respecting that content. 4 Low Carbon Fuel Requirements 1 Low Carbon Fuel Target Low carbon fuel target 12 1 This section applies on assessment and on reassessment. 2 A person who markets fuel in a compliance period must, at the end of the compliance date for the period, have a balance of zero or more compliance units. Supply of fuel 13 1 This section applies a on assessment and on reassessment, and b on application in accordance with the regulations of the minister. 2 The director may, in accordance with subsection (3), issue compliance units to a person in relation to fuel if a the person markets the fuel for an applicable purpose, or b in the case of an application under subsection (1) (b), the director is satisfied that the person intends to market the fuel for an applicable purpose. 3 Subject to subsection (4), the number of compliance units to be issued under subsection (2) in relation to the fuel, which may be a positive or negative number, is the number determined in accordance with the following formula, as it applies on the date the fuel is reportably supplied: number = (TCI × EER − (RCI + UCI)) × EC 1 000 000 grams where TCI = the target carbon intensity for the fuel, as determined under subsection (5); EER = the energy effectiveness ratio of the fuel, as determined in accordance with the regulations of the minister; RCI = the recorded carbon intensity of the fuel; UCI = the additional carbon intensity attributed to the use of the fuel, as determined in accordance with the regulations of the minister; EC = the energy content of the fuel in megajoules, as determined in accordance with the regulations of the minister. 4 If a person described in subsection (2) does not have a carbon intensity record for the fuel, the recorded carbon intensity of the fuel for the purposes of subsection (3) is deemed to be the applicable carbon intensity specified in section 19 (a) or (b) (ii) [determining carbon intensity] . 5 For the purposes of subsection (3), the target carbon intensity for a fuel is the number determined in accordance with the following formula: TCI = BCI × (1 − R) where BCI = the carbon intensity specified in section 19 (a) for the base fuel for the category to which the fuel belongs; R = the prescribed reduction for that category, expressed as a percentage. Not in force 14 [Not in force.] Initiative agreements 15 1 In this section, eligible goal means a reducing the carbon intensity of a fuel, or b increasing the use of a fuel with a carbon intensity below the prescribed carbon intensity. 2 The director may issue credits to a person in accordance with an agreement under this section. 3 Subject to this section and the regulations, the director may, with the approval of the minister, enter into an agreement with a person that provides for the issuance of credits to the person in relation to an action that the person proposes to take. 4 The director may not enter into an agreement under this section with a person in relation to a proposed action unless a the person manufactures or supplies fuel for an applicable purpose, in British Columbia or elsewhere, for use in British Columbia and the director is satisfied that the proposed action has a reasonable possibility of achieving an eligible goal, b the person manufactures or supplies feedstock, in British Columbia or elsewhere, for manufacturing described in paragraph (a) and the director is satisfied that the proposed action has a reasonable possibility of achieving an eligible goal, c the person intends to become a person described in paragraph (a) or (b) and the director is satisfied that the proposed action i has a reasonable possibility of achieving an eligible goal, and ii will advance the intention, or d the director is satisfied that the proposed action has a reasonable possibility of reducing the use of a base fuel in British Columbia for a purpose other than transportation. 5 The director may not enter into an agreement under this section that contemplates the issuance of more than the following numbers of credits: a in the compliance period in which the agreement is entered, the difference between i 25% of the number of debits, expressed as a positive number, that the director estimates have been or will be issued under section 13 (2) [supply of fuel] in relation to the previous compliance period, and ii the number of credits that the director estimates have been or will be issued in the compliance period under other agreements under this section; b in each subsequent compliance period, the difference between i 20% of the number of debits, expressed as a positive number, that the director estimates will be issued under section 13 (2) in relation to the previous compliance period, and ii the number of credits that the director estimates will be issued in the compliance period under other agreements under this section. Transfer of credits 16 1 Subject to the regulations, the director may record a transfer of credits from one person to another if the persons a are both registered under the regulations, and b both submit a notice of the proposed transfer in accordance with subsection (2). 2 A notice under subsection (1) (b) must a be submitted to the director in the form and manner required by the director, and b include any information and signed statements required by the regulations. 3 A transfer recorded under this section takes effect on the later of the following dates: a the date the transfer is recorded; b the date specified in the notice under subsection (1) (b). Export of fuel 17 1 This section applies a on assessment and on reassessment, and b on application in accordance with the regulations of the minister. 2 The director may, in accordance with subsection (3), issue debits to a person who reportably exports fuel. 3 Subject to subsection (4), the number of debits to be issued under subsection (2) in relation to the fuel is the number determined in accordance with the formula under section 13 (3) [supply of fuel] , modified in accordance with the regulations, as that section applies on the date the fuel is exported from British Columbia. 4 If a person who reportably exports fuel does not have a carbon intensity record for the fuel, the recorded carbon intensity of the fuel for the purposes of subsection (3) is deemed to be the lowest carbon intensity that could have been recorded under section 18 (2) [carbon intensity record] for the fuel in the 12 months immediately before the date the fuel is exported. 2 Carbon Intensity of Fuels Carbon intensity record 18 1 If required by the regulations, a person must prepare a carbon intensity record for fuel in accordance with subsection (2). 2 A carbon intensity record must a be in the form specified by the director, b reference the provision under which that carbon intensity is determined, which must be one of the following: i section 19 (a) [prescribed carbon intensity] ; ii section 19 (b) (i) [published carbon intensity] ; iii section 19 (b) (ii) [default carbon intensity] , c if section 19 (b) (i) is the provision referenced, specify the published carbon intensity as it stood on the date the record is prepared, and d include any prescribed information. 3 If required by the regulations, a person who supplies fuel to another person must, in accordance with the regulations, give the other person a copy of the carbon intensity record for the fuel. 4 A person who holds a carbon intensity record for a fuel with a published carbon intensity may, if the record was prepared before the published carbon intensity was published and in the period specified under section 20 (4) [determining carbon intensity — publication] for the published carbon intensity, a rely on the record, or b revise the record, in accordance with the regulations of the minister, to show the published carbon intensity. Determining carbon intensity 19 For the purposes of preparing a carbon intensity record under section 18 (1), a a base fuel or a fossil-derived component of the base fuel has the carbon intensity prescribed by the minister on the date the fuel is reportably supplied, and b the carbon intensity of any other fuel is i the published carbon intensity for the fuel on the date the record is prepared, or ii if subparagraph (i) does not apply, the default carbon intensity prescribed for the fuel by the minister on the date the fuel is reportably supplied. Determining carbon intensity — publication 20 1 The director may determine in accordance with section 21 [determining carbon intensity — lifecycle analysis] , and publish on a publicly accessible website maintained by or on behalf of the minister, the carbon intensity of a fuel if a the fuel is prescribed by the minister, or b the manufacturer of the fuel i applies to have a carbon intensity published for the fuel, or ii is invited, in a notice served on the manufacturer by the director, to apply by a date specified in the notice to have a carbon intensity published for the fuel and fails to apply by that date. 2 An application under this section must a propose a carbon intensity, and b include information in support of the proposed carbon intensity. 3 An application, including the information referred to in subsection (2) (b), must a be submitted in the form and manner required by the director, and b if required by the director or the regulations of the minister, be verified in accordance with the regulations of the minister, as applicable, and any direction of the director. 4 A publication under subsection (1) must specify the period of time during which the published carbon intensity applies for the purposes of sections 18 [carbon intensity record] and 19 [determining carbon intensity] , which may begin a on or after the date of publication, or b in the case of a carbon intensity published in response to an application under this section, on or after the date of the application. 5 The director must serve on a person who applies, or is invited to apply, under this section written reasons for any of the following decisions: a in the case of an application, a decision i to publish a higher carbon intensity than proposed, or ii not to publish a carbon intensity; b in the case of a failure to apply, a decision to publish a carbon intensity. 6 If a person who manufactures, supplies or exports fuel with a published carbon intensity becomes aware that the carbon intensity of the fuel has changed or will change, the person must immediately give written notice to the director. 7 The director may reduce the period of time referred to in subsection (4) during which a published carbon intensity applies if the director a considers that the published carbon intensity is or might be inaccurate, and b in the case of a carbon intensity published in response to an application under this section, serves a notice of the reduction on the applicant at least 30 days before the last day of the reduced period. Determining carbon intensity — lifecycle analysis 21 1 In this section, stage , in relation to the lifecycle of a fuel, has the meaning prescribed by the minister. 2 For the purposes of section 20 (1) [determining carbon intensity — publication] , the carbon intensity of a fuel is the sum of the carbon intensities for the stages in the lifecycle of the fuel, as determined under subsection (3). 3 The carbon intensity for a stage in the lifecycle of a fuel is to be determined a in accordance with the regulations of the minister, or b by using an alternative method that is i developed and proposed in accordance with the regulations, if any, of the minister, and ii accepted by the director as a more accurate method of determining the carbon intensity for the stage. 4 If the director decides not to accept an alternative method proposed under subsection (3) (b), the director must serve written reasons on the person who made the proposal. 5 Public and Local Utilities 1 Legacy Electricity Legacy electricity 22 1 In this section, TransLink has the same meaning as "authority" in section 1 (1) of the South Coast British Columbia Transportation Authority Act . 2 Despite section 6 (4) (a) [responsibility for fuel] , a public or local utility that supplies to a person other than a public or local utility electricity to be used for any of the following purposes is responsible for the electricity unless another person becomes responsible under section 6 (4) (b) or (c) and (5): a to charge a vehicle at a residential building that includes fewer than 5 dwelling units; b to power an electric train operated by TransLink on a fixed rail that was operated by TransLink on December 31, 2020 or a replacement fixed rail installed in the same location; c to power a trolley bus operated by TransLink on trolley wires that were operated by TransLink on December 31, 2020 or replacement trolley wires installed along the same roads. 2 Not in Force Not in force 23-27 [Not in force.] 6 Reports and Assessments 1 Reports Compliance reports 28 1 A person must submit a report for a compliance period if, in the period, the person a markets fuel, b reportably exports fuel, or c allocates responsibility for a type A fuel under an allocation agreement other than an inter-refiner agreement. 2 If required by the regulations, a person must submit a report for a compliance period if, in the period, the person a supplies fuel in British Columbia, b allocates responsibility for a type B fuel under an allocation agreement, c is party to an agreement under section 15 [initiative agreements] with the director, or d [Not in force.] 3 [Not in force.] 4 A report under this section must be submitted to the director a by the compliance date for the compliance period, and b in the form and manner required by the director. 5 A report under this section must a be prepared in accordance with, and contain the information required by, the regulations of the minister, and b if required by the regulations of the minister, be verified in accordance with those regulations. Supplementary reports 29 1 A person must submit a supplementary report within 30 days after the person becomes aware that a information in a previous report under this Division did not completely and accurately disclose the information required to be included in the report, or b information reported in a previous report has changed. 2 Subsection (1) does not apply in relation to inaccuracies, omissions or changes that are considered under the regulations of the minister to be immaterial. 3 A supplementary report under this section must be submitted to the director in the form and manner required by the director. 4 A supplementary report under this section must a be prepared in accordance with, and contain the information required by, the regulations of the minister, and b if required by the regulations of the minister, be verified in accordance with those regulations. 2 Assessments Assessment by director 30 1 On receipt of a report under section 28 (1) (a) or (b) or (3) [compliance reports] of a person in relation to a compliance period, the director must serve on the person a notice of assessment that sets out the following, as applicable: a a statement of whether the person has met the renewable fuel targets set under section 9 [renewable fuel target] ; b the amount of eligible renewable fuel that the director assesses as having been notionally transferred away by the person under section 10 (1) [notional transfer, retention and deferral] , on or before the compliance date, that has not previously been assessed as transferred; c the amount of eligible renewable fuel that the director assesses as having been notionally received by the person under section 10 (1), on or before the compliance date for the period, that has not been previously assessed as transferred; d the amount of eligible fuel that the director assesses as having been notionally retained under section 10 (2) by the person; e the portion of the renewable fuel target under section 9 that the director assesses as having been deferred under section 10 (3) by the person; f a statement of whether the person has met the low carbon fuel target set under section 12 [low carbon fuel target] ; g subject to subsection (2) of this section, the balance of the person at the end of the compliance date for the period; h the number of credits that the director assesses as having been transferred away by the person under section 16 [transfer of credits] , on or before the compliance date for the period, that have not been previously assessed as transferred; i the number of credits that the director assesses as having been received by the person under section 16, on or before the compliance date for the period, that have not been previously assessed as transferred; j the number of compliance units that the director previously issued to the person in relation to the period under each of the following provisions: i section 13 (2) [supply of fuel] ; ii [Not in force.] iii section 15 (2) [initiative agreements] ; iv section 17 (2) [export of fuel] ; k the number of compliance units that the director issues to the person in relation to the period under each of the following provisions: i section 13 (2); ii [Not in force.] iii section 17 (2); l the number of compliance units that are added to or subtracted from the balance of the person under section 32 [adjustments on assessment and on reassessment] ; m if the person has not met a renewable fuel target set under section 9, a statement i notifying the person that section 37 (1) [automatic administrative penalties] applies, and ii specifying the amount of the administrative penalty determined under section 37 (1); n if the person has not met the low carbon fuel target set under section 12, a statement i notifying the person that section 37 (2) applies, and ii specifying the amount of the administrative penalty determined under section 37 (2). o [Not in force.] 2 An issuance or adjustment referred to in subsection (1) (k) or (l) takes effect on the compliance date for the reported compliance period. 3 If a person who is required under section 28 (1) (a) or (b) to submit a report fails to do so, the director may serve on the person a notice of assessment under subsection (1) of this section. Reassessment by director 31 1 The director may conduct a reassessment of any of the latest 7 compliance periods. 2 If a reassessment of a compliance period differs from the initial assessment or a previous reassessment under this section, the director must serve on the person reassessed a notice of reassessment that sets out the information, for the compliance period and each subsequent compliance period, that is required to be set out in a notice of assessment. Adjustments on assessment and on reassessment 32 1 On assessment and on reassessment, the director may adjust the balance, including adjustments to below zero, of the person. 2 For certainty, an adjustment of the balance of a person on the basis that a credit ought not to have been issued does not affect the balance of another person to whom the credit has been transferred under section 16 [transfer of credits] . 3 General Information requests 33 On request by the director, a person who submits a report under Division 1 [Reports] must provide additional information or records in support of the report within the period of time specified by the director. Audits of reports 34 If required by the director, a person who submits a report under Division 1 must have the report audited a within the period of time specified by the director, and b in accordance with the regulations of the minister, if applicable, and any directions of the director. Record-keeping requirements 35 1 A person must maintain the following records: a records sufficient to verify the following information, as applicable: i information the person is required to report under section 28 [compliance reports] or does report under any provision of Division 1 [Reports] ; ii information the person provides to the director under section 33 [information requests] ; b if the person enters into an agreement with the director under section 15 [initiative agreements] , records sufficient to demonstrate i the status of the action proposed in the agreement, and ii whether the action, or a stage of the action, has been completed; c if the person applies under section 20 (1) [determining carbon intensity — publication] to have a carbon intensity published for a fuel, i records sufficient to verify the information referred to in section 20 (2) (b), and ii in the case that a carbon intensity is published, records sufficient to identify any changes to the carbon intensity; d [Not in force.] e records sufficient to verify any information the person provides to the director for the purposes of section 47 [reconsiderations] ; f prescribed records. 2 The records required under subsection (1) must be retained for the following period of time, as applicable: a in the case of records referred to in subsection (1) (a), 6 years after the compliance date for the compliance period to which the records relate; b in the case of records referred to in subsection (1) (b), 6 years after the later of i the date on which the agreement is entered into, and ii the date on which credits are last issued under section 15 in relation to the agreement; c in the case of records referred to in subsection (1) (c), 6 years after the later of i the date of the application, and ii if applicable, the date on which the published carbon intensity ceases to apply; d in the case of records referred to in subsection (1) (d), 6 years after the offer, sale, action or expenditure, as applicable, to which the records relate; e in the case of records referred to in subsection (1) (e), 6 years after the date on which the written reasons for the reconsideration are served; f in the case of records referred to in subsection (1) (f), the prescribed period of time. 3 The recording, maintenance and retention of records must be done in accordance with any requirements established by regulation. 7 Compliance and Enforcement 1 Inspections Inspections 36 1 For the purposes of ensuring compliance with this Act and the regulations, a the director may designate persons or classes of persons as inspectors and issue identification to those inspectors, and b an inspector designated under paragraph (a) may do one or more of the following: i at any reasonable time enter land or premises, other than premises or a part of premises used solely as a private residence; ii inspect, analyze, measure, sample or test anything; iii use or operate anything or require the use or operation of anything, under conditions specified by the inspector; iv take away samples; v make or take away copies of records, photographs or audio or video records. 2 An inspector who enters land or premises in accordance with this section a may take along the persons and equipment that the inspector considers may be necessary for the purposes of the inspection, and b on request, must provide proof of identity to a person present on the land or premises entered. 3 A person who is the subject of an inspection under this section, or who is or was a director, receiver, receiver manager, officer, employee, banker, auditor or agent of a person who is the subject of an inspection under this section, on request of an inspector, must, without charge or unreasonable delay, a produce for examination by the inspector any record relating to requirements under this Act, and b provide the inspector with information relevant to the purposes of the inspection. 4 Section 112 [seizures and prevention orders] , other than subsections (1) (a) and (4), of the Environmental Management Act applies for the purposes of this Act, and for that application a a reference in that section to the Environmental Management Act is to be read as a reference to this Act, b a reference in that section to the regulations under the Environmental Management Act is to be read as a reference to the regulations under this Act, c a reference in that section to an officer is to be read as a reference to an inspector under this Act, and d a reference in that section to an inspection is to be read as a reference to an inspection under this Act. 2 Administrative Penalties Automatic administrative penalties 37 1 If a person fails to meet a renewable fuel target under section 9 [renewable fuel target] , the person is subject to an administrative penalty in an amount equal to the product of a the shortfall, expressed in litres, and b the prescribed penalty rate. 2 If a person fails to meet a low carbon fuel target under section 12 [low carbon fuel target] , a the person is subject to an administrative penalty in an amount equal to the product of i the amount of the person's balance below zero, expressed as a positive number, and ii the prescribed penalty rate, and b the person's balance is increased by a number of compliance units equal to the amount referred to in paragraph (a) (i). 3 An administrative penalty under this section must be paid to the government on the compliance date for the compliance period to which the penalty relates. 4 If the director is satisfied that a failure for which a penalty is imposed under this section on a person is the result of an officially induced error or that the person exercised due diligence to prevent the failure, the director may, in accordance with the regulations, waive all or part of the penalty and, in the case of a penalty under subsection (2) (a), subsection (2) (b) applies despite the waiver. Discretionary administrative penalties 38 1 The director may take action under this section, in accordance with the regulations, if the director is satisfied on a balance of probabilities that a person a has contravened a prescribed provision of this Act or the regulations, or b has provided false or misleading information i in an application under section 13 (1) (b), 14 (2) (b) or 17 (1) (b) [early issuance applications] , ii for the purpose of obtaining an agreement under section 15 [initiative agreements] or in a record the person is required under an agreement under that section to provide to the director, iii in a carbon intensity record under section 18 (1) or (3) [carbon intensity record] , iv in an application under section 20 (2) [application for published carbon intensity] , v in a report under Division 1 [Reports] of Part 6, vi in response to a request under section 33 [information requests] , vii under section 36 (3) [inspections] , or viii for the purposes of section 47 [reconsiderations] . 2 In the circumstances referred to in subsection (1), the director may serve the person with an administrative penalty notice a identifying the person's non-compliance as determined by the director, and b requiring the person to pay an administrative penalty in the amount specified in the notice. Requirement to pay administrative penalties 39 1 In this section, determination means a determination by the director, as set out in an administrative penalty notice under section 38, of non-compliance, the extent of the non-compliance or the amount of an administrative penalty. 2 A person served with an administrative penalty notice under section 38 is subject to an administrative penalty as follows: a if the person admits, in writing, the determinations set out in the notice, the penalty indicated in the notice is imposed at the time of that admission; b if the time for appealing under section 48 [Appeals to Environmental Appeal Board] the determination set out in the notice has elapsed and no appeal has been commenced, the penalty indicated in the notice is imposed at the end of the time for appealing; c if one or more of the determinations set out in the notice is appealed and, under the final determination of the appeal, the person is subject to an administrative penalty, the penalty specified in the final determination is imposed at the time of that final determination. 3 An administrative penalty under this section must be paid to the government in accordance with the regulations. Recovery of administrative penalties 40 1 An administrative penalty may be recovered as a debt due to the government. 2 If a person fails to pay an administrative penalty as required under this Act, the director may file a certificate in a court that has jurisdiction and, on filing, the certificate has the same force and effect, and all proceedings may be taken on it, as if it were a judgment of the court with which it is filed. 3 A certificate under subsection (2) must a be signed by the director, and b contain the following information: i the name of the person who is liable for the penalty; ii the contravention, failure or other action in relation to which the penalty is imposed; iii the amount of the penalty. 3 Offences Offences and penalties 41 1 A person who contravenes any of the following provisions commits an offence: a section 11 [renewable fuel labelling] ; b section 18 (1) or (3) [carbon intensity record] ; c section 28 [compliance reports] ; d section 29 (1) [supplementary reports] ; e section 33 [information requests] ; f section 34 [audits of reports] ; g section 35 [record-keeping requirements] ; h section 50 (2) [confidentiality] ; i a provision of the regulations the contravention of which is prescribed to be an offence. 2 A person who does either of the following commits an offence: a obstructs or resists an inspector exercising powers or performing duties under this Act; b fails to comply with a direction given or requirement imposed under this Act by an inspector. 3 A person convicted of an offence under subsection (1) (b), (c), (d), (e), (f) or (g) or (2) is liable to a fine of not more than $1 000 000 or imprisonment for a term of not more than 6 months, or both. 4 A person convicted of an offence under subsection (1) (a), (h) or (i) is liable to a fine of not more than $200 000 or imprisonment for a term of not more than 6 months, or both. Offences of providing false or misleading information and penalties 42 1 This section applies in relation to information that is provided a in an application under section 13 (1) (b), 14 (2) (b) or 17 (1) (b) [early issuance applications] , b in a carbon intensity record under section 18 (1) or (3) [carbon intensity record] , c in an application under section 20 (2) [application for published carbon intensity] , d in a report under Division 1 [Reports] of Part 6, e in response to a request under section 33 [information requests] , f under section 36 (3) [inspections] , or g for the purposes of section 47 [reconsiderations] . 2 A person who knowingly provides false or misleading information when required under this Act to provide information commits an offence and is liable on conviction to a fine of not more than $1 000 000 or imprisonment for a term of not more than 6 months, or both. 3 A person who provides false or misleading information when required under this Act to provide information, other than a person described in subsection (2), commits an offence and is liable on conviction to a fine of not more than $500 000 or imprisonment for a term of not more than 6 months, or both. 4 A person does not commit an offence under subsection (3) if, at the time the information was provided, the person, with the exercise of reasonable diligence, could not have known that the information was false or misleading. Continuing offences 43 If an offence under section 41 continues for more than one day, separate fines, each not exceeding the maximum fine for the offence, may be imposed for each day the offence continues. Corporate liability 44 1 If a corporation commits an offence under this Act, an officer, director or agent of the corporation who authorized, permitted or acquiesced in the offence commits the offence, whether or not the corporation is prosecuted or convicted. 2 If an employee, officer, director or agent of a corporation commits an offence under this Act while acting on behalf of the corporation, the corporation also commits the offence, whether or not the employee, officer, director or agent is identified, prosecuted or convicted. 3 For the purposes of subsection (2), a corporation has the burden of proving that an employee, officer, director or agent of the corporation was not acting on behalf of the corporation at the time the employee, officer, director or agent committed an offence referred to in that subsection. Relationship between administrative penalties and offences 45 1 A person may be prosecuted under this Act for a contravention in relation to which an administrative penalty has been imposed. 2 In imposing a sentence for an offence under this Act, the court may consider an administrative penalty imposed in relation to the same matter. 3 An administrative penalty may not be imposed on a person for a contravention in relation to which the person has been convicted of an offence under this Act. Other provisions relating to offences 46 1 Section 5 of the Offence Act does not apply to this Act or the regulations. 2 The time limit for laying an information for an offence under this Act is a 3 years after the date that the facts on which the information is based arose, or b if the minister completes a certificate described in subsection (3), 18 months after the date that the facts on which the information is based first came to the knowledge of the minister. 3 A document purporting to have been issued by the minister, certifying the date on which the minister became aware of the facts on which the information is based, is proof of the certified facts. 8 Reconsiderations and Appeals Reconsiderations 47 1 In this section, decision means any of the following: a an assessment; b a reassessment; c a decision referred to in section 20 (5) [determining carbon intensity — publication] ; d a decision referred to in section 21 (4) [determining carbon intensity — lifecycle analysis] ; e a prescribed decision. 2 A person who is served with any of the following may request the director to reconsider the applicable decision: a a notice of assessment; b a notice of reassessment; c reasons referred to in section 20 (5); d reasons referred to in section 21 (4); e a document evidencing a decision referred to in subsection (1) (e) of this section. 3 A request under subsection (2) must be made within the prescribed time limits and in accordance with the regulations, if any. 4 On request under subsection (2) to reconsider a decision, the director must a reconsider the decision within the prescribed time limits and in accordance with the regulations, if any, and b serve written reasons on the person who made the request. Appeals to Environmental Appeal Board 48 1 In this section, decision means any of the following: a a determination by the director, as set out in an administrative penalty notice under section 38 [discretionary administrative penalties] , of non-compliance, the extent of the non-compliance or the amount of an administrative penalty; b a reconsideration under section 47. 2 A person who is served with any of the following may appeal the applicable decision to the appeal board: a an administrative penalty notice under section 38; b reasons referred to in section 47 (4) (b). 3 The following provisions of the Environmental Management Act apply in relation to an appeal under this section: a Division 1 [Environmental Appeal Board] of Part 8 [Appeals] ; b section 101 [time limit for commencing appeal] ; c section 102 (2) [procedure on appeals — new hearing] ; d section 103 [powers of appeal board in deciding appeal] . 9 General 1 General Notice and service under this Act 49 1 A notice or other document that is required to be served on a person under this Act is deemed to have been served if it is a sent by ordinary mail or registered mail to the person's address for service, b transmitted by email to the person at the email address provided as part of the person's address for service, or c sent, transmitted or delivered by any prescribed method of service. 2 If service is by ordinary mail or registered mail, the notice or other document is deemed to have been served 14 days after it is mailed. 3 If service is by email, the notice or other document is deemed to have been served 3 days after it is transmitted. 4 If service is by a prescribed method of service, the notice or other document is deemed to have been served the prescribed number of days after it is sent, transmitted or delivered, as the case may be. Confidentiality 50 1 In this section: protected information means information that would reveal a trade secrets of a third party, or b commercial, financial, labour relations, scientific or technical information of or about a third party; third party has the same meaning as in the Freedom of Information and Protection of Privacy Act ; trade secret has the same meaning as in the Freedom of Information and Protection of Privacy Act .

2 Subject to this section, a person who has access to protected information that is in the custody or under the control of the government through a an application under section 13 (1) (b), 14 (2) (b) or 17 (1) (b) [early issuance applications] , b a notice under section 16 (1) (b) [transfers of credits] , c an application under section 20 (2) [application for published carbon intensity] , d a report under Division 1 [Reports] of Part 6, e a request under section 33 [information requests] , f a report or statement required under this Act in relation to i a verification under section 20 (3) (b), ii a verification under section 28 (5) (b) or 29 (4) (b) [verifications of reports] , or iii an audit under section 34 [audits of reports] , g an inspection under section 36 [inspections] , h a request under section 47 (2) [reconsiderations] , or i an information-sharing agreement under section 51 that provides that the information is to be kept confidential must not disclose the protected information to any other person. 3 The prohibition in subsection (2) does not apply to disclosure of the following information: a information that is publicly available; b the failure of a person to meet a renewable fuel target under section 9 [renewable fuel target] for a compliance period and the shortfall referred to in section 37 (1) (a) [automatic administrative penalty] ; c the failure of a person to meet a low carbon fuel target under section 12 [low carbon fuel target] for a compliance period and the number of credits issued to the person under section 37 (2) (b) in relation to that failure; d the category of a fuel and the facts and reasons on which the categorization of the fuel is based; e information about the carbon intensity of a fuel, including, without limitation, any of the following: i a carbon intensity record for the fuel; ii a determination under section 20 (1) [determining carbon intensity — publication] in relation to the fuel; iii an alternative method accepted under section 21 (3) (b) (ii) [determining carbon intensity — lifecycle analysis] in relation to the fuel; f information that is required or authorized to be made public under this Act. 4 The prohibition in subsection (2) does not apply to disclosure in the following circumstances: a if required under Part 2 [Freedom of Information] of the Freedom of Information and Protection of Privacy Act ; b in the course of administering or enforcing this Act or a prescribed enactment; c for the purpose of court proceedings; d in accordance with an information-sharing agreement under section 51 of this Act; e with the consent of the person, group of persons or organization that is the third party in relation to the protected information. Information-sharing agreements 51 1 For the purposes of this section, information-sharing agreement means a data-matching or other agreement to provide or exchange information related to any of the following: a the administration or enforcement of this Act or a prescribed enactment of British Columbia or another jurisdiction in Canada; b reducing greenhouse gas emissions into the atmosphere. 2 Subject to subsection (3), with the prior approval of the Lieutenant Governor in Council, the minister may enter into an information-sharing agreement with any of the following: a the government of another jurisdiction in or outside Canada or an agent of that government; b a public body as defined in the Freedom of Information and Protection of Privacy Act . 3 The minister may enter into an information-sharing agreement with another ministry of the government. 2 Regulations of Lieutenant Governor in Council General regulation-making powers 52 1 The Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act . 2 Without limiting any other provision of this Act, the Lieutenant Governor in Council may make regulations as follows: a respecting any matter for which regulations are contemplated by this Act, other than matters for which regulations are contemplated to be made by the minister; b defining a word or expression used but not defined in this Act; c without limiting paragraph (b), defining "diesel fuel", "gasoline" or "jet fuel", including, without limitation, by reference to the characteristics, origins, uses or intended uses of fuel; d prescribing fuels, circumstances, amounts or methods for determining amounts for the purposes of section 2 (2) [application of Act] ; e respecting the identification of fuel stored in or taken from a tank in which two or more fuels are stored or deeming that fuel to have the identity of any of them; f authorizing or requiring the minister to publish specified information that is obtained under this Act. 3 In making a regulation under this Act, the Lieutenant Governor in Council may do any of the following: a delegate a matter to a person; b confer a discretion on a person; c make different regulations in relation to different classes of fuels, persons, things, circumstances or other matters; d establish different classes of fuels, including, without limitation, by reference to their characteristics, origins, uses or intended uses; e adopt by reference, in whole, in part or with any changes considered appropriate, a regulation, code, standard or rule i enacted as or under a law of another jurisdiction in or outside Canada, or ii set by a provincial, national or international body or any other code, standard or rule-making body as the regulation, code, standard or rule stands at a specific date, as it stands at the time of adoption or as amended from time to time. Regulations in relation to responsibility and fuel requirements 53 Without limiting any other provision of this Act, the Lieutenant Governor in Council may make regulations as follows: a respecting the determination of which equipment is final supply equipment for the purposes of the definition of "final supply equipment" in section 1, including, without limitation, deeming any equipment through which fuel is supplied to be or not to be final supply equipment; a.1 prescribing purposes for the purpose of the definition of "applicable purpose"; b identifying persons or classes of persons as responsible for fuel for the purposes of section 6 (3) (b) or (4) (b) [responsibility for fuel] ; c respecting allocation agreements, including, without limitation, i specifying the form and content of allocation agreements, and ii imposing additional restrictions on the allocation of responsibility, including, without limitation, restrictions respecting the parties, fuel, supply of the fuel or timing of the agreement; d respecting notional transfer under section 10 (1) [notional transfer, retention and deferral] and specifying portions for the purposes of section 10 (2) (a) and (3) (a); e authorizing the director, on application, to exempt, in whole or in part, from section 9 [renewable fuel target] or 12 [low carbon fuel target] a person who markets less than a specified amount of one or more base fuels and providing that sections 13 [supply of fuel] and 17 [export of fuel] do not apply in relation to a person who is exempted from section 12; f [Not in force.] g respecting agreements under section 15 [initiative agreements] , including, without limitation, i specifying matters the director may or must consider in deciding whether to enter into an agreement, and ii limiting the agreements into which the director may enter, including, without limitation, by reference to classes of persons or to actions or classes of actions or on any other grounds; h respecting transfers under section 16 [transfer of credits] , including, without limitation, i respecting registration under section 16 (1) (a) and notices under section 16 (1) (b), and ii respecting the grounds on which the director may or must refuse to record a transfer; i respecting carbon intensity records. Not in force 54 [Not in force.] Regulations in relation to administrative penalties 55 Without limiting any other provision of this Division, the Lieutenant Governor in Council may make regulations a in relation to administrative penalties under section 37 [automatic administrative penalties] , as follows: i prescribing a penalty rate for the purposes of section 37 (1) (b) or (2) (a) (ii) or a method for determining the penalty rate; ii respecting refunds of overpayments under section 37 (3) and prescribing a rate and manner of calculating interest on amounts payable by or to the government under that section; iii respecting waivers under section 37 (4), and b in relation to administrative penalties under section 38 [discretionary administrative penalties] , as follows: i prescribing provisions of this Act and the regulations in relation to which an administrative penalty may be imposed; ii prescribing a limitation period for imposing an administrative penalty and evidentiary matters in relation to that period; iii prescribing procedures to be applied by the director in making a determination of non-compliance; iv prescribing matters that must be considered by the director in imposing an administrative penalty in a particular case; v requiring the director to serve a person with a notice of intent to impose an administrative penalty and provide the person with an opportunity to be heard before sending an administrative penalty notice; vi establishing procedures for providing a person on whom a notice of intent to impose an administrative penalty has been served with an opportunity to be heard, which may include opportunities that do not involve an oral hearing; vii prohibiting the director from serving an administrative penalty notice on a person who has demonstrated to the satisfaction of the director that the person exercised due diligence to prevent the specified contravention or failure; viii establishing the required content of administrative penalty notices; ix prescribing a maximum or minimum amount of an administrative penalty that may be imposed generally or for specified contraventions, or the manner of calculating those amounts; x authorizing administrative penalties to be imposed on a daily basis for continuing contraventions or failures; xi respecting the time limit, manner and process for paying an administrative penalty; xii prescribing the consequences of failing to pay an administrative penalty, which may include, but are not limited to, imposing additional administrative penalties under section 38; xiii providing for the publication of information respecting the imposition of an administrative penalty. Regulations in relation to reconsiderations 56 Without limiting any other provision of this Division, the Lieutenant Governor in Council may make regulations respecting reconsiderations under section 47 [reconsiderations] . 3 Regulations of Minister Regulations of minister 57 1 The minister may make regulations referred to in section 41 of the Interpretation Act . 2 Without limiting any other provision of this Act, the minister may make regulations as follows: a respecting any matter for which regulations are contemplated by this Act to be made by the minister; b for the purposes of the definition of "eligible renewable fuel" in section 1 [definitions] , prescribing, as eligible renewable fuel for a category of fuel, fuel that, in the opinion of the minister, is i derived from renewable material, and ii suitable for use, alone or in combination with the base fuel for the category, in an internal combustion engine; c respecting the determination of whether a fuel is a component of a base fuel for the purposes of section 4 [components of base fuels] or deeming a fuel to be or not to be a component of a base fuel for those purposes; d respecting the determination of whether a fuel is an alternative to a base fuel for the purposes of section 5 [alternatives to base fuels] or deeming a fuel to be or not to be an alternative to a base fuel for those purposes; e requiring posting labels and giving notice under section 11 [renewable fuel labelling] and respecting the form and content of those labels and notices; f respecting applications under section 13 (1) (b), 14 (2) (b) or 17 (1) (b) [early issuance applications] , including, without limitation, i prescribing classes of persons who may apply, ii prescribing periods of time to which an application may relate, iii respecting the information and verifications required to be included in an application, including, without limitation, anything that may be required under section 28 (5) (a) or (b) [compliance reports] , and iv respecting the grounds on which the director may or must reject an application; g respecting the determination of carbon intensity under section 21 [determining carbon intensity — lifecycle analysis] , including, without limitation, i prescribing stages in the lifecycle of a fuel, including its feedstock, for the purposes of the definition of "stage" in section 21 (1), ii establishing methods for the purposes of section 21 (3) (a), including, without limitation, A methods for attributing greenhouse gas emissions to a fuel or a stage in the lifecycle of the fuel, whether the emissions or stage occurs inside or outside British Columbia, and B methods authorizing or requiring the use of a computer program or body of data, and iii respecting alternative methods for the purposes of section 21 (3) (b), including, without limitation, specifying assumptions or methods that may or must be applied in an alternative method; h respecting reports under Division 1 [Reports] of Part 6; i respecting audits under section 34 [audits of reports] and verifications under section 20 (3) (b) [determining carbon intensity — publication] , 28 (5) (b) [compliance reports] or 29 (4) (b) [supplementary reports] , including, without limitation i respecting who may conduct audits or verifications, ii respecting the conduct of audits or verifications, and ii requiring reports or statements in relation to audits or verifications and respecting the form and content of those reports and statements. 3 Section 52 (3) [general regulation-making powers] applies in relation to a regulation under this section. 10 Transitional Provisions, Repeals and Consequential Amendments 1 Transitional Provisions Definitions 58 In this Division: former Act means the Greenhouse Gas Reduction (Renewable and Low Carbon Fuel Requirements) Act , S.B.C. 2008, c. 16; last old compliance period means the last compliance period under the former Act that ends before the repeal of that Act. Transition — last compliance period under former Act 59 1 The former Act applies in relation to the last old compliance period despite the repeal of the former Act and the enactment of this Act. 2 If a regulation made under the former Act is repealed after the enactment of this Act, the regulation applies in relation to the last old compliance period despite the repeal of the regulation. Transition — renewable fuel requirements 60 A notional transfer, a notional retention or a deferral under section 5 [transferring or retaining renewable fuel excess or deficiency] of the former Act is deemed to be a notional transfer, a notional retention or a deferral, as the case may be, under section 10 [notional transfer, retention and deferral] of this Act. Transition — low carbon fuel requirements 61 1 A person who has a balance of validated credits under the former Act immediately before its repeal has a starting balance under this Act that is equal to the amount of those credits, as determined by the director. 1.1 After receiving a report from a person under section 7 [Part 3 compliance reports] of the former Act in relation to the last old compliance period, the director may adjust the person's starting balance under this Act for the purpose of resolving any difficulties arising from the transition from the former Act to this Act. 1.2 If a person is subject to an administrative penalty under section 10 (1) [automatic administrative penalties: Part 3 fuel requirements] or 11 (4) [imposed administrative penalties: fuel requirements] of the former Act in relation to the last old compliance period, the director may increase the balance of the person under this Act. 2 Despite section 16 [transfer of credits] of this Act, the director may record under that section a transfer of credits or debits that is proposed under section 8 [transferring credits and debits] of the former Act before this section comes into force and, for that purpose, a reference in section 16 of this Act to a notice is to be read as a reference to the proposal. 3 A carbon intensity record prepared in accordance with the regulations under the former Act before this section comes into force is deemed to be a carbon intensity record under this Act. 4 A carbon intensity published under section 6 (5) [low carbon fuel requirement] of the former Act is deemed to be a published carbon intensity under this Act. 5 A person may, for the purpose of complying with section 6 (1) [low carbon fuel requirement] of the former Act, a use the person's starting balance under subsection (1) of this section, and b use credits received under this Act during the period from January 1, 2024 to March 31, 2024. Transition — initiative agreements 62 1 An agreement under section 8.01 [Part 3 agreements] of the former Act is deemed to be an agreement under section 15 [initiative agreements] of this Act. 2 Section 15 (5) of this Act is to be read, in relation to agreements entered into in the compliance period in which this section comes into force, as though the reference to debits issued under section 13 (2) [supply of fuel] were a reference to debits incurred under section 6 (4) [low carbon fuel requirement] of the former Act. Transition — regulations 63 1 The Lieutenant Governor in Council may make regulations considered necessary or advisable for the purpose of more effectively bringing this Act into operation and to avoid any transitional difficulties encountered in doing so. 2 A regulation under subsection (1) may be made retroactive to the date this section comes into force or a later date. 3 If a regulation under subsection (1) conflicts with another enactment, the regulation prevails. 4 This section and, unless earlier repealed, any regulations under this section are repealed 3 years after the date this section comes into force. 2 Repeals Repeal of former Act [Note: See Table of Legislative Changes for the status of sections 64 and 65.] 64 Section(s) Affected Act 64 Greenhouse Gas Reduction (Renewable and Low Carbon Fuel Requirements) Act 3 Consequential Amendments Consequential Amendments 65 Section(s) Affected Act 65 Hydro and Power Authority Act Commencement 66 This Act comes into force by regulation of the Lieutenant Governor in Council.