Ethanol General Regulation

Ethanol General Regulation, M.R. 165/2007 The Biofuels Act , C.C.S.M. c. B40 Regulation 165/2007 Registered December 12, 2007 bilingual version (HTML) Table of Contents Section 1 Definitions and interpretations 2 Exclusions 2.1 Time limit for exclusions 2.2 Repealed 3 Reporting period 4 Standards for gasohol 5 Licensing of denatured ethanol manufacturers 6 Manufacturers of denatured ethanol 7-7.1 Repealed 8 Fuel suppliers' general information requirements 9 Mandate amount 10 Shortfall and penalty 11 Rounding of figures 12 Reporting re mandate 12.1 Supplementary reports 12.2 Repealed 12.3 2024 report 13 Penalty — failing to comply 14 Information sharing 15 Coming into force Definitions and interpretations 1(1) The following definitions apply in this regulation. "Act" means The Biofuels Act . («  Loi  ») "gasohol" means a blend of denatured ethanol and gasoline, in which the denatured ethanol content is at least 3% of the total volume. (« gazohol ») "gasoline" means a gaseous or liquid fuel that may be used to power an internal combustion engine and includes additives to such fuel, but does not include (a) motive fuel; (b) natural gas, propane or butane; or (c) aviation fuel, as defined in section 1 of The Fuel Tax Act . (« essence ») "import" means to import from outside of Manitoba. (« importer ») "inter-fuel supplier agreement" means an arrangement between fuel suppliers for the transfer of gasoline or gasohol, and includes transactions between fuel suppliers that are not taxable under The Fuel Tax Act . (« accord de transfert de carburant ») "licence holder" means a person who holds a licence to manufacture denatured ethanol in Manitoba. (« titulaire de licence ») "quarter" means the consecutive three-month periods of January to March, April to June, July to September and October to December. (« trimestre ») "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 et registre » ou « document ») "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 ») 1(2) For the purposes of this regulation, gasoline and gasohol is sold in Manitoba when a fuel supplier (a) uses it; or (b) sells it at wholesale or retail; in Manitoba. 1(3) For the purposes of the formulas in this regulation, a volume of gasoline or gasohol that is sold in Manitoba more than once may only be included in the calculations of the fuel supplier that first sold it in Manitoba. M.R. 118/2011 Exclusions 2 Gasoline and gasohol is excluded from the provisions of sections 9 and 10 if it is (a) transferred under an inter-fuel supplier agreement; (b) transported through Manitoba from a place outside Manitoba to another place outside Manitoba, where the transport can be established by written evidence; (c) sold for export, where the sale for export can be established by written evidence; or (d) [repealed] M.R. 149/2020 ; (e) sold for use in (i) an area of Manitoba that is serviced by a winter road, or (ii) the Town of Churchill or surrounding area. M.R. 118/2011 ; 149/2020 Time limit for exclusions 2.1 Clause 2(e) is repealed on December 31, 2026. M.R. 118/2011 ; 149/2020 ; 168/2022 ; 104/2024 2.2 [Repealed] M.R. 104/2024 Reporting period 3 The reporting period is (a) for 2008, the period (i) that begins on January 1 and ends on March 31, or (ii) that begins on April 1 and ends on December 31; and (b) for each year after 2008, the calendar year. Standards for gasohol 4(1) Gasohol possessed for sale in Manitoba must meet the specifications set out in one of the following standards: (a) subject to subsection (2), the Canadian General Standards Board Standard CAN/CGSB-3.511-2016, Oxygenated Automotive Gasoline Containing Ethanol (E1-E10) ; (b) subject to subsection (2), the Canadian General Standards Board Standard CAN/CGSB-3.512-2018, Automotive Ethanol Fuel (E50-E85 and E20-E25 ); (c) subject to subsection (2), the Canadian General Standards Board Standard CAN/CGSB-3.516-2017, Denatured Fuel Ethanol for Use in Automotive Spark Ignition Fuels . 4(2) The maximum vapour pressure of the gasohol may be up to 7 kPa greater than the vapour pressure set out in Table 2A of the standard referred to in clause (1)⁠(a), but only if the gasohol is produced by splash blending and contains (a) more than 5% denatured ethanol by volume; and (b) gasoline that complies with the Canadian General Standards Board Standard CAN/CGSB-3.5, Unleaded Automotive Gasoline . 4(3) and (4) [Repealed] M.R. 149/2020 4(5) A standard adopted in this section is adopted as amended from time to time, but an amendment is of no force and effect for 180 days after it is first published. M.R. 118/2011 ; 149/2020 Licensing of denatured ethanol manufacturers 5(1) To apply to become a licence holder, a person must make application to the minister, in a form approved by the minister, setting out all the information stipulated by the form, including (a) the applicant's name and address; (b) if the applicant is (i) a corporation, the names and addresses of the directors of the corporation, or (ii) a partnership, the names and addresses of the partners; (c) in respect of the denatured ethanol manufacturing facility to be operated by the applicant, its address and description, including (i) its designed production capacity, and (ii) the type or types of feedstock to be used. 5(2) The minister may issue a licence to an applicant if he or she is satisfied (a) the applicant has (i) obtained all applicable permits, consents and approvals under the applicable environmental laws, and (ii) entered into an agreement with the minister under subsection 4(2) of the Act; and (b) the denatured ethanol produced by the applicant will comply with the specifications set out in the standard under clause 4(1)⁠(a). 5(3) The minister may cancel the licence issued to a licence holder if he or she is satisfied that the holder has not manufactured denatured ethanol at its facility in Manitoba for a period longer than six months. RECORDS AND REPORTING Manufacturers of denatured ethanol 6 For each reporting period, a licence holder must, on or before the 90th day after the reporting period ended, complete and file with the minister a report of information, in a form approved by the minister, setting out all the information stipulated by the form, including (a) the number of litres of ethanol and denatured ethanol the person manufactured in Manitoba; (b) the number of litres of denatured ethanol the person imported into Manitoba, if any; and (c) in respect of the person's sales of denatured ethanol in the reporting period, (i) the total number of litres sold in Manitoba to a fuel supplier, including the number of litres of denatured ethanol manufactured in Manitoba that were included in the sale, and (ii) the total number of litres sold for export. M.R. 149/2020 7 [Repealed] M.R. 118/2011 7.1 [Repealed] M.R. 118/2011 ; 149/2020 Fuel suppliers' general information requirements 8(1) A fuel supplier must, for each of its facilities and transactions, and, in the case of imported gasoline, denatured ethanol or gasohol, for its total imports, keep records and books of account in such form and containing such information as will enable the accurate determination of compliance with this regulation, including, without limitation, (a) data and calculations of the volumes reported for the purposes of the formulas set out in sections 9 and 10; (a.1) the volumes of gasoline and gasohol that, under section 2, are excluded from sections 9 and 10; (b) dated metered-values, bills of lading, contracts, invoices, sales receipts, records of payment and records of transfers; and (c) records or transactions for volumes of gasohol, gasoline, blendstock, and denatured ethanol, purchased, used, blended, sold, imported, acquired through an inter-fuel supplier agreement or transferred to or from another fuel supplier or facility and identifying information about such denatured ethanol manufacturers, fuel suppliers and facilities. 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. M.R. 118/2011 ; 149/2020 DENATURED ETHANOL SALES MANDATE Mandate amount 9(1) The denatured ethanol sales mandate for a fuel supplier is the following percentage of the total volume of gasoline and gasohol sold by the supplier in Manitoba in the reporting period that must be denatured ethanol: (a) 9.25%, for the 2021 reporting period; (b) 10%, for the 2022 reporting period and for each reporting period after that. 9(2) To determine if a fuel supplier has met the mandate, the fuel supplier's denatured ethanol sales as a percentage of the supplier's total volume of gasoline and gasohol sold in Manitoba in a reporting period is to be determined in accordance with the following formula: % DE = A/(B + C) × 100 In this formula, % DE is the fuel supplier's percentage of denatured ethanol sales in the reporting period; A is the number of litres of denatured ethanol contained in the gasohol sold in Manitoba by the fuel supplier in the reporting period; B is the number of litres of gasohol sold in Manitoba by the fuel supplier in the reporting period; C is the number of litres of gasoline not containing denatured ethanol sold in Manitoba by the fuel supplier in the reporting period. M.R. 149/2020 Shortfall and penalty 10(1) For a reporting period, a fuel supplier whose denatured ethanol percentage of sales does not meet or exceed the applicable percentage required under subsection 9(1) has a shortfall, and must pay a penalty in the amount determined in accordance with the following formula: Penalty = Shortfall × GTR In this formula, Penalty is the amount of the penalty payable in Canadian dollars; Shortfall is the fuel supplier's shortfall in litres, as calculated in accordance with subsection (2); GTR is the rate of tax required to be paid under clause 8(g) of The Fuel Tax Act on the last day of the reporting period in which the shortfall occurred. 10(2) The shortfall in litres is to be calculated in accordance with the following formula: Shortfall = (RP − % DE) × (B + C) In this formula, RP is the percentage for the applicable reporting period, as provided under subsection 9(1); % D E is the fuel supplier's percentage of denatured ethanol sales as determined under subsection 9(2); B is the number of litres of gasohol sold in Manitoba by the fuel supplier in the reporting period; C is the number of litres of gasoline not containing denatured ethanol sold in Manitoba by the fuel supplier in the reporting period. M.R. 118/2011 Rounding of figures 11 A figure used in a calculation in section 9 or 10 shall be rounded to the nearest one-hundredth or, where it is equidistant, to the higher one-hundredth. Reporting re mandate 12(1) For each reporting period, a fuel supplier must, within three months 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, and (ii) the result of the calculations provided for in sections 9 and 10, and all the values used to perform the calculations; and (b) pay to the Minister of Finance the full amount of the penalty determined under section 10. 12(2) [Repealed] M.R. 149/2020 M.R. 149/2020 Supplementary reports 12.1(1) 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 report filed for a previous reporting period did not completely and accurately disclose the information required to be included in the report for that period; or (b) information required to be reported in a previous report has changed. 12.1(2) [Repealed] M.R. 149/2020 M.R. 118/2011 ; 149/2020 12.2 [Repealed] M.R. 118/2011 ; 149/2020 2024 report 12.3 In addition to the reporting requirement under section 12, a fuel supplier must, within three months after the 2024 reporting period ends, complete and file with the director a report, in a form approved by the director, setting out all the information stipulated by the form respecting ethanol, gasohol and gasoline sold during the period of time in 2024 in which the Winnipeg Products Pipeline was non-operational. M.R. 104/2024 GENERAL Penalty — failing to comply 13(1) For the purposes of subsection 5(2) of the Act, the penalty the minister may impose on a licence holder for a failure to comply with a term or condition of the licence or an agreement is (a) $25,000 for the first failure to comply; (b) $50,000 for the second failure to comply; and (c) $75,000 for the third or any subsequent failure to comply. 13(2) A penalty under subsection (1) must be paid in full by the licence holder to the minister within 45 days after it has been assessed. Information sharing 14 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. Coming into force 15 This regulation comes into force on January 1, 2008.