Biodiesel Mandate for Diesel Fuel Regulation

Biodiesel Mandate for Diesel Fuel Regulation, M.R. 147/2009 The Biofuels Act , C.C.S.M. c. B40 Regulation 147/2009 Registered September 4, 2009 bilingual version (HTML) Table of Contents Section 1 Definitions 2 Interpretation: "sell in Manitoba" 3 Biodiesel sales mandate for diesel fuel 3.1 Exemptions 4 Determining compliance with mandate 5 Shortfall and penalty 6 Rounding of figures 7 Reporting re mandate 7.1 Repealed 8 General information requirements 9 Records 10 Information sharing 11 Repealed 12 Coming into force DEFINITIONS AND INTERPRETATION Definitions 1 The following definitions apply in this regulation. "biodiesel" means biodiesel that meets the specifications in section 3 of the Biodiesel (General) Regulation , Manitoba Regulation 178/2008. (« biodiesel ») "biodiesel sales mandate" means the biodiesel sales mandate established in subsection 3(2). (« quota des ventes de biodiesel ») "blended biodiesel" means blended biodiesel that meets the specifications in section 4 of the Biodiesel (General) Regulation , Manitoba Regulation 178/2008. (« biodiesel mélangé ») "diesel fuel" means (a) diesel fuel, including marked or coloured diesel fuel, used in powering a diesel engine; and (b) after December 31, 2012, motive fuel used in powering a railway locomotive, and any equipment attached directly to the same fuel supply system that services the locomotive; but does not include jet fuel, bunker fuel, crude oil, kerosene, other than kerosene that is blended with diesel fuel, or marked or coloured motive fuel used for heating. (« carburant diesel ») "inter-fuel supplier agreement" means an arrangement between fuel suppliers for the transfer of biodiesel, diesel fuel or blended biodiesel, and includes transactions between fuel suppliers that are not taxable under The Fuel Tax Act . (« accord de transfert de carburant ») "record" means information that (a) is recorded or stored by mechanical, electronic, magnetic, optical or any other means; and (b) is recorded or stored in understandable form or is capable of being produced or reproduced in understandable form. (« dossier », « registre » ou « document ») "reporting period" means (a) the period April 1, 2010 to December 31, 2012; and (b) after December 31, 2012, the calendar year. (« période de déclaration ») "winter road" means a seasonal road constructed of snow and ice to service an area of Manitoba that is not connected to the provincial highway system by a year-round all-weather road. (« route d'hiver ») M.R. 117/2011 ; 194/2011 ; 148/2012 Interpretation: "sell in Manitoba" 2(1) For the purposes of this regulation, a fuel supplier sells biodiesel, diesel fuel or blended biodiesel in Manitoba if the fuel supplier uses it in Manitoba or sells it at wholesale or retail in Manitoba.  2(2) A fuel supplier does not sell biodiesel, diesel fuel or blended biodiesel in Manitoba if (a) the fuel supplier transfers it under an inter-fuel supplier agreement; or (b) the director is satisfied that it is (i) sold for export from Manitoba, or (ii) transported through Manitoba from a place outside Manitoba to another place outside Manitoba. 2(3) A fuel supplier may include a volume of biodiesel, diesel fuel or blended biodiesel as being sold in Manitoba for the purposes of the formulas in sections 4 and 5 only if the fuel supplier is the first fuel supplier to have sold it in Manitoba. BIODIESEL SALES MANDATE FOR DIESEL FUEL Biodiesel sales mandate for diesel fuel 3(1) For the purposes of establishing a biodiesel sales mandate, diesel fuel is hereby prescribed as a prescribed motive fuel. 3(2) The biodiesel sales mandate for a fuel supplier who sells diesel fuel in Manitoba is as follows: (a) in the 2021 reporting period, 3.5% of the total volume of diesel fuel and diesel fuel contained in blended biodiesel sold in Manitoba by the fuel supplier must be biodiesel; (b) in the 2022 reporting period and in each reporting period after that, 5% of the total volume of diesel fuel and diesel fuel contained in blended biodiesel sold in Manitoba by the fuel supplier must be biodiesel. 3(3) [Repealed] M.R. 148/2020 M.R. 148/2020 Exemptions 3.1(1) The litres of diesel fuel and blended biodiesel sold for use in the following areas and communities are exempted from the calculations in sections 4 and 5: (a) the area of Manitoba that is north of latitude 55 N; (b) an area of Manitoba that is serviced by a winter road; (c) the communities that are serviced by Provincial Roads Nos. 373 and 374. 3.1(2) This section is repealed on December 31, 2026. 3.1(3) [Repealed] M.R. 148/2020 M.R. 117/2011 ; 27/2016 ; 148/2020 ; 167/2022 ; 103/2024 Determining compliance with mandate 4 A fuel supplier meets the biodiesel sales mandate if the fuel supplier's percentage of biodiesel sales in the reporting period, as determined in accordance with the following formula, is at least the percentage of biodiesel specified for that reporting period in subsection 3(2): %Bio = A/(B + C) × 100 In this formula, %Bio is the fuel supplier's percentage of biodiesel sales in the reporting period, expressed as a percentage; A is the number of litres of biodiesel contained in the blended biodiesel that the fuel supplier sold in the reporting period; B is the number of litres of blended biodiesel that the fuel supplier sold in the reporting period; C is the number of litres of diesel fuel containing no biodiesel that the fuel supplier sold in the reporting period. M.R. 148/2020 Shortfall and penalty 5(1) A fuel supplier who fails to meet the biodiesel sales mandate, as determined under section 4, must pay a penalty amount determined in accordance with the following formula: [(%M − %Bio) × (B + C)] × $1.50 In this formula, %M is the biodiesel sales mandate percentage for the reporting period, as determined under subsection 3(2); %Bio is the fuel supplier's percentage of biodiesel sales, as determined under section 4; B is the number of litres of blended biodiesel that the fuel supplier sold in the reporting period; C is the number of litres of diesel fuel containing no biodiesel that the fuel supplier sold in the reporting period. 5(2) A fuel supplier must pay a penalty amount determined under subsection (1) in Canadian dollars. M.R. 148/2020 Rounding of figures 6 A figure used in a formula in a calculation in section 4 or 5 shall be rounded to the nearest one-hundredth or, if the figure is equidistant, to the higher one-hundredth. M.R. 148/2020 REPORTING AND RECORDS Reporting re mandate 7(1) For each reporting period, a fuel supplier must, on or before March 31 of the year after the reporting period ends, (a) complete and file with the director a report, in a form approved by the director, setting out all the information stipulated by the form, including (i) the identity of the fuel supplier and the individual who submits the report, (ii) the result of the calculations provided for in sections 4 and 5, and all the values used to perform the calculations, and (iii) the amount of each of the following that were included in the values used in the calculation under section 4 (compliance with mandate) for the applicable reporting period, (A) the amount, in litres, of ester-based biodiesel, and (B) the amount, in litres, of renewable diesel fuel, and (iv) the type, feedstock source, origin, point of entry into Manitoba and supplier of all biofuels that were included in the values used in the calculation under section 4 for the applicable reporting period; and (b) pay to the Minister of Finance the full amount of the penalty determined under section 5. 7(2) A fuel supplier must file a supplementary report with the director within 60 days after the fuel supplier becomes aware that (a) information in a previous report under this section did not completely and accurately disclose the information required to be included in the report; or (b) information required to be reported in a previous report has changed. 7(3) A supplementary report must (a) comply with clause (1)⁠(a); (b) specify the reporting period to which it relates; and (c) specify which information is different from the information provided in the report it supplements. M.R. 27/2016 ; 148/2020 7.1 [Repealed] M.R. 194/2011 ; 148/2012 General information requirements 8(1) A fuel supplier must, for each of its facilities and transactions, keep records and books of account in such form and containing such information as will enable the accurate determination of compliance with this regulation. 8(2) A fuel supplier required to keep records and books of account under this section must ensure that the records and books of account are retained for a period of at least seven years following the date to which the record or book of account relates. Records 9(1) The director may require records evidencing the following: (a) biodiesel, diesel fuel or blended biodiesel that has been (i) transferred under an inter-fuel supplier agreement, (ii) sold for export from Manitoba, or (iii) transported through Manitoba from a place outside Manitoba to another place outside Manitoba, (iv) [repealed] M.R. 148/2020 ; (b) information contained in a report filed by a fuel supplier under section 7; (c) information contained in records and books of account required to be kept by a fuel supplier under section 8. 9(2) Records evidencing any of the matters in subsection (1) include, but are not limited to, (a) data and calculations of the volumes reported for the purposes of the formulas in sections 4 and 5; (b) dated metered-values, bills of lading, contracts, invoices, sales receipts, records of payment and records of transfers; (c) records of transactions for volumes of diesel fuel, biodiesel and blended biodiesel (i) purchased, used, blended, sold, imported into Manitoba and exported from Manitoba, and (ii) acquired through an inter-fuel supplier agreement or transferred to or from another fuel supplier or facility, and identifying information about such biodiesel manufacturers, fuel suppliers and facilities; and (d) records which provide evidence that the volumes of (i) biodiesel meet one of the fuel quality specifications in section 3, and (ii) blended biodiesel meet the fuel quality specifications in section 4, of the Biodiesel (General) Regulation , Manitoba Regulation 178/2008. M.R. 117/2011 ; 148/2020 Information sharing 10 The minister may request from a director any information contained in a report required to be filed by a fuel supplier under this regulation, and the director must comply with the minister's request as soon as is reasonably practicable. 11 [Repealed] M.R. 194/2011 ; 148/2012 ; 148/2020 COMING INTO FORCE Coming into force 12 This regulation comes into force on November 1, 2009, or on the day it is registered under The Regulations Act , whichever is later.