HONOURABLE RICHARD NEUFELD
MINISTER OF ENERGY, MINES
AND PETROLEUM RESOURCES

BILL 16 — 2008

GREENHOUSE GAS REDUCTION
(RENEWABLE AND LOW CARBON FUEL REQUIREMENTS) ACT

This Bill:

Contents
Section  
Part 1 — Introductory Provisions
1  Definitions
Part 2 — Renewable Fuel Requirements
2  Requirements for renewable fuel content
3  Part 2 compliance reports
4  Application to become Part 2 fuel supplier
5  Transfers between Part 2 fuel suppliers
Part 3 — Low Carbon Fuel Requirements
6  Requirements for reduced carbon intensity
7  Part 3 compliance reports
8  Transfers between Part 3 fuel suppliers
Part 4 — Administrative Penalties
9  Automatic administrative penalties: Part 2 fuel requirements
10  Automatic administrative penalties: Part 3 fuel requirements
11  Imposed administrative penalties: fuel requirements
12  Administrative penalties in relation to other matters
13  Recovery of penalties
Part 5 — Appeals to Environmental Appeal Board
14  What decisions may be appealed, who may appeal, the process of appeal
Part 6 — Offences
15  Offences against Act and corresponding penalties
16  Offences of providing false or misleading information and penalties
17  Continuing offences
18  Liability of directors, officers and agents
19  Relationship between administrative penalties and offences
20  Other provisions relating to offences
Part 7 — General
21  Notice and service under this Act
22  Confidentiality
23  General regulation powers
24  Regulations in relation to Part 2 fuels
25  Regulations in relation to Part 3 fuels
26  Regulations in relation to administrative penalties
27  Regulations in relation to appeals
28  Regulations in relation to inspections
29  Commencement

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

Part 1 — Introductory Provisions

Definitions

1  In this Act:

"administrative penalty" means an administrative penalty under Part 4 [Administrative Penalties];

"appeal board" means the Environmental Appeal Board under the Environmental Management Act;

"attributable", in relation to greenhouse gas emissions, means attributable under the regulations to a Part 3 fuel;

"biodiesel fuel" means a fuel that

(a) is made up of mono-alkyl esters of long chain fatty acids derived from plant or animal matter, and

(b) if applicable, meets the prescribed standard;

"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;

"carbon intensity", in relation to a Part 3 fuel, means the greenhouse gas emissions attributable under the regulations to the fuel proportionate to the energy provided by the fuel in its expected use for transport or another prescribed purpose,

(a) expressed as grams of carbon dioxide equivalent emissions per megajoule of energy, and

(b) as determined in accordance with section 6 [requirements for reduced carbon intensity];

"compliance period" means the period prescribed, as applicable, for the purposes of section 2 [requirements for renewable fuel content] or 6 [requirements for reduced carbon intensity];

"component", in relation to the carbon intensity of a Part 3 fuel, means a component of greenhouse gas emissions attributable to the fuel as established by the regulations;

"diesel class fuel" means fuel that is

(a) comprised of diesel fuel or diesel fuel in combination with other substances, and

(b) suitable for use

(i) by an engine in which internal combustion is initiated by compression, or

(ii) in a furnace or boiler to produce heat;

"diesel fuel" does not include renewable fuel;

"director" means the government employee designated by the minister as the director for the purposes of this Act;

"fuel supplier" means a Part 2 fuel supplier or a Part 3 fuel supplier, as applicable;

"gasoline class fuel" means fuel that is

(a) comprised of gasoline or gasoline in combination with other substances, and

(b) suitable for use by a spark ignition engine,

but does not include natural gas or propane;

"greenhouse gas" has the same meaning as in the Greenhouse Gas Reduction Targets Act

"inspector" means a person designated as an inspector under the regulations or a person in a class designated as inspectors under the regulations;

"Part 2 fuel" means

(a) gasoline class fuel,

(b) diesel class fuel,

(c) renewable fuel, or

(d) any other substance prescribed by regulation,

but does not include a substance excluded by regulation;

"Part 2 fuel supplier" means, subject to the regulations,

(a) a person who, within British Columbia, sells Part 2 fuel for the first time after it is manufactured in or brought into British Columbia,

(b) in relation to Part 2 fuel that is not covered by paragraph (a) but is

(i) manufactured or received in British Columbia, or

(ii) brought into British Columbia,

for use in British Columbia, a person prescribed as being a Part 2 fuel supplier, or

(c) a person who is accepted as a Part 2 fuel supplier under section 4 [application to become Part 2 fuel supplier];

"Part 3 fuel" means any of the following:

(a) a Part 2 fuel;

(b) natural gas;

(c) propane;

(d) any other energy source prescribed by regulation;

"Part 3 fuel supplier" means

(a) a person who, within British Columbia, sells Part 3 fuel for the first time after it is manufactured in or brought into British Columbia, or

(b) in relation to Part 3 fuel that is not covered by paragraph (a) but is

(i) manufactured or received in British Columbia, or

(ii) brought into British Columbia,

for use in British Columbia, a person prescribed as being a Part 3 fuel supplier;

"renewable fuel" means

(a) in relation to gasoline class fuel,

(i) ethanol produced from biomass, or

(ii) another substance prescribed by regulation as a renewable fuel in relation to gasoline class fuel, and

(b) in relation to diesel class fuel,

(i) biodiesel, or

(ii) another substance prescribed by regulation as a renewable fuel in relation to diesel class fuel;

"supply", in relation to a fuel supplier, means, subject to the regulations,

(a) in relation to a Part 2 fuel supplier, the activities described in or prescribed for the purposes of the definition of "Part 2 fuel supplier", and

(b) in relation to a Part 3 fuel supplier, the activities described in or prescribed for the purposes of the definition of "Part 3 fuel supplier".

Part 2 — Renewable Fuel Requirements

Requirements for renewable fuel content

2  (1) A Part 2 fuel supplier who supplies gasoline class fuel in a compliance period must ensure that, of this supplied fuel, renewable fuel comprises at least the percentage prescribed for the compliance period.

(2) A Part 2 fuel supplier who supplies diesel class fuel in a compliance period must ensure that, of this supplied fuel, renewable fuel comprises at least the percentage prescribed for the compliance period.

Part 2 compliance reports

3  (1) For each compliance period, a Part 2 fuel supplier, including a Part 2 fuel supplier who supplies only renewable fuel in the compliance period, must submit to the director a report, in accordance with the regulations, respecting

(a) compliance with the requirements under section 2 [requirements for renewable fuel content], and

(b) any other matter prescribed for the purposes of this Act.

(2) A Part 2 fuel supplier must submit a supplementary report to 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.

(3) A supplementary report under this section must be made in accordance with the regulations or, if no specific direction is prescribed, in accordance with the regulations applicable to the report under subsection (1).

(4) The director may

(a) require a report under this section to be audited in accordance with the directions of the director, or conduct or authorize a person to conduct such an audit, and

(b) require a Part 2 fuel supplier to provide additional information in support of a report under this section.

Application to become Part 2 fuel supplier

4  (1) A joint application may be made to the director by

(a) a person who would be a Part 2 fuel supplier in relation to Part 2 fuel the person supplies in a compliance period (the "first person"), and

(b) another person who is proposing to be the Part 2 fuel supplier in the place of the first person (the "second person")

for the second person to become a Part 2 fuel supplier in place of the first person.

(2) An application under this section may be made in relation to all or part of the Part 2 fuel the first person supplies in the compliance period.

(3) In response to an application under this section, the director may, by order, accept the second person as a Part 2 fuel supplier in accordance with the order, in which case the first person is deemed not to be a Part 2 fuel supplier in relation to the Part 2 fuel for which the second person is the Part 2 fuel supplier.

Transfers between Part 2 fuel suppliers

5  (1) Subject to the regulations,

(a) a Part 2 fuel supplier may notionally transfer all or part of the renewable fuel that it supplied in a compliance period to another Part 2 fuel supplier, and

(b) the other Part 2 fuel supplier may receive the notional transfer for the purpose of the same compliance period.

(2) A notional transfer under this section must

(a) be made in accordance with the regulations,

(b) be supported by evidence satisfactory to the director, and

(c) be recorded in the reports under section 3 [Part 2 compliance reports] of both Part 2 fuel suppliers.

Part 3 — Low Carbon Fuel Requirements

Requirements for reduced carbon intensity

6  (1) A Part 3 fuel supplier must, for each compliance period, ensure that the weighted average of the carbon intensities of all Part 3 fuels it supplies in the compliance period, as determined in accordance with the regulations and subject to subsection (2), is no greater than the prescribed level.

(2) Subsection (1) does not apply in relation to Part 3 fuel that the Part 3 fuel supplier expects, on reasonable grounds, will be used for a purpose other than

(a) transport, or

(b) if applicable, another prescribed purpose.

(3) For the purposes of subsection (1), a Part 3 fuel supplier must determine, in accordance with the regulations, the carbon intensity of each of the Part 3 fuels that it supplies in the compliance period by either

(a) applying the default carbon intensity deemed by the regulations to be the carbon intensity of the Part 3 fuel, or

(b) determining the carbon intensity of each component of the greenhouse gas emissions attributable to the Part 3 fuel,

(i) by applying the default carbon intensity deemed by the regulations to be the carbon intensity of the component,

(ii) by calculating the carbon intensity of the component in accordance with the regulations, or

(iii) by using an alternative method of determining the carbon intensity of the component that is proposed by the Part 3 fuel supplier in accordance with the regulations and accepted by the director as a more accurate determination reflecting the carbon intensity of that component.

(4) A decision of the director refusing to accept an alternative method of determining carbon intensity must be served on the Part 3 fuel supplier proposing to use the alternative method.

Part 3 compliance reports

7  (1) For each compliance period, a Part 3 fuel supplier must submit to the director a report, in accordance with the regulations, respecting

(a) compliance with the requirements under section 6 [requirements for reduced carbon intensity], and

(b) any other matter prescribed for the purposes of this Act.

(2) A Part 3 fuel supplier must submit a supplementary report to 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.

(3) A supplementary report under this section must be made in accordance with the regulations or, if no specific direction is prescribed, in accordance with the regulations applicable to the report under subsection (1).

(4) The director may

(a) require a report under this section to be audited in accordance with the directions of the director, or conduct or authorize a person to conduct such an audit, and

(b) require a Part 3 fuel supplier to provide additional information in support of a report under this section.

Transfers between Part 3 fuel suppliers

8  (1) Subject to the regulations, a Part 3 fuel supplier may

(a) notionally transfer to another Part 3 fuel supplier

(i) an amount of carbon dioxide equivalent emissions equal to all or part of the amount that the first Part 3 fuel supplier could have had attributable to the Part 3 fuel that it supplied in a compliance period without exceeding the prescribed carbon intensity, or

(ii) an amount of carbon dioxide equivalent emissions equal to all or part of the greenhouse gas emissions attributable to the Part 3 fuel that it supplied in a compliance period,

(b) as applicable, apply

(i) an amount transferred to it under paragraph (a) (i) as a credit against its attributable greenhouse gas emissions, or

(ii) an amount transferred to it under paragraph (a) (ii) as an increase of its attributable greenhouse gas emissions

for the same compliance period, or

(c) transfer amounts transferred under paragraph (a) or this paragraph to another Part 3 fuel supplier for transfer or for use in accordance with paragraph (b) (i) or (ii), as applicable to the amount transferred.

(2) A notional transfer under this section must

(a) be supported by evidence satisfactory to the director, and

(b) be recorded in the reports under section 7 [Part 3 compliance reports] of both Part 3 fuel suppliers.

Part 4 — Administrative Penalties

Automatic administrative penalties: Part 2 fuel requirements

9  (1) If a report under section 3 [Part 2 compliance reports] indicates that the Part 2 fuel supplier has not complied with its obligation under section 2 [requirements for renewable fuel content] for a compliance period, the Part 2 fuel supplier is subject to the administrative penalty calculated using the following formula:

administrative penalty = (required RF — actual RF) x penalty rate
where
required RF  =  the quantity in litres of renewable fuel required for the Part 2 fuel supplier to comply with section 2 for the compliance period;
actual RF  =  the quantity in litres of renewable fuel supplied by the Part 2 fuel supplier in the compliance period;
penalty rate  =  the rate prescribed by regulation.

(2) An administrative penalty under this section must be paid to the government on or before the date on which the applicable report under section 3 is due.

Automatic administrative penalties: Part 3 fuel requirements

10  (1) If a report under section 7 [Part 3 compliance reports] indicates that the Part 3 fuel supplier has not complied with its obligation under section 6 [requirements for reduced carbon intensity] for a compliance period, the Part 3 fuel supplier is subject to the administrative penalty calculated using the following formula:

administrative penalty = (actual CI — required CI) x EC x penalty rate
where
actual CI  =  the actual level of carbon intensity of the weighted average of all Part 3 fuels supplied by the Part 3 fuel supplier in that compliance period;
required CI  =  the prescribed level of carbon intensity for the compliance period;
EC  =  the energy content in megajoules of the Part 3 fuel supplied by the Part 3 fuel supplier in that compliance period;
penalty rate  =  the rate prescribed by regulation.

(2) An administrative penalty under this section must be paid to the government on or before the date on which the applicable report under section 7 [Part 3 compliance reports] is due.

Imposed administrative penalties: fuel requirements

11  (1) The director must take action under subsection (2), in accordance with the regulations,

(a) if the director is satisfied on a balance of probabilities that

(i) the actual quantities of renewable fuel for a compliance period were different from those reported under section 3 [Part 2 compliance reports] by a Part 2 fuel supplier, and

(ii) as a consequence, the Part 2 fuel supplier has not complied with the requirements under section 2 [requirements for renewable fuel content], or

(b) if

(i) a Part 2 fuel supplier fails to submit a report in accordance with section 3 [Part 2 compliance reports], and

(ii) the director is satisfied on a balance of probabilities that the Part 2 fuel supplier has not complied with the requirements under section 2 [requirements for renewable fuel content].

(2) In the circumstances referred to in subsection (1), the director must serve the Part 2 fuel supplier with an administrative penalty notice,

(a) identifying the Part 2 fuel supplier's non-compliance as determined by the director, and

(b) requiring the Part 2 fuel supplier to pay an administrative penalty in the amount calculated in accordance with the formula set out in section 9 (1) [automatic administrative penalties: Part 2 fuel requirements].

(3) The director must take action under subsection (4), in accordance with the regulations,

(a) if the director is satisfied on a balance of probabilities that

(i) the actual carbon intensity level of the weighted average of Part 3 fuels for a compliance period was different from that reported under section 7 [Part 3 compliance reports] by a Part 3 fuel supplier, and

(ii) as a consequence, the Part 3 fuel supplier has not complied with the requirement under section 6 [requirements for reduced carbon intensity], or

(b) if

(i) a Part 3 fuel supplier fails to submit a report in accordance with section 7 [Part 3 compliance reports], and

(ii) the director is satisfied on a balance of probabilities that the Part 3 fuel supplier has not complied with the requirement under section 6 [requirements for reduced carbon intensity].

(4) In the circumstances referred to in subsection (3), the director must serve the Part 3 fuel supplier with an administrative penalty notice,

(a) identifying the Part 3 fuel supplier's non-compliance as determined by the director, and

(b) requiring the Part 3 fuel supplier to pay an administrative penalty in the amount calculated in accordance with the formula set out in section 10 (1) [automatic administrative penalties: Part 3 fuel requirements].

(5) A fuel supplier served with an administrative penalty notice under this section is subject to an administrative penalty as follows:

(a) if the fuel supplier admits, in writing, the non-compliance and its extent as determined by the director, the penalty indicated in the notice is imposed at the time of that admission;

(b) if the time for appealing the determination of non-compliance or its extent under Part 5 [Appeals to Environmental Appeal Board] 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 the non-compliance or its extent as determined by the director is appealed and, under the final determination of the appeal, the fuel supplier is subject to an administrative penalty, the penalty specified in the final determination is imposed at the time of that final determination.

(6) An administrative penalty under this section must be paid to the government within the prescribed time after the penalty is imposed and in accordance with any other prescribed requirements.

Administrative penalties in relation to other matters

12  (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 has contravened a prescribed provision of this Act or the regulations.

(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 the administrative penalty specified in the notice.

(3) A person served with an administrative penalty notice under subsection (2) is subject to an administrative penalty as follows:

(a) if the person admits, in writing, the non-compliance and its extent as determined by the director, the penalty indicated in the notice is imposed at the time of that admission;

(b) if the time for appealing the determination of non-compliance or its extent under Part 5 [Appeals to Environmental Appeal Board] 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 the non-compliance or its extent as determined by the director 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.

(4) An administrative penalty under this section must be paid to the government within the prescribed time after the penalty is imposed and in accordance with any other prescribed requirements.

Recovery of penalties

13  (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) may be in the prescribed form, must be signed by the director and must contain

(a) the name of the person who is liable for the penalty,

(b) particulars of the administrative penalty notice in relation to which the penalty is imposed, and

(c) the amount of the penalty under subsection (1).

Part 5 — Appeals to Environmental Appeal Board

What decisions may be appealed, who may appeal, the process of appeal

14  (1) For the purposes of this Part, "decision" means any of the following:

(a) the determination of non-compliance under section 11 [imposed administrative penalties: fuel requirements] or of the extent of that non-compliance, as set out in an administrative penalty notice;

(b) the determination of non-compliance under section 12 [administrative penalties in relation to other matters], of the extent of that non-compliance or of the amount of the administrative penalty, as set out in an administrative penalty notice;

(c) a refusal to accept an alternative calculation of carbon intensity under section 6 (3) (b) (iii) [requirements for reduced carbon intensity];

(d) a prescribed decision or a decision in a prescribed class.

(2) A person who is served with

(a) an administrative penalty notice referred to in subsection (1) (a) or (b),

(b) a refusal referred to in subsection (1) (c), or

(c) a document evidencing a decision referred to in subsection (1) (d)

may appeal the applicable decision to the appeal board.

(3) Subject to this Act, Division 1 of Part 8 [Appeals] of the Environmental Management Act applies in relation to appeals under this Act.

Part 6 — Offences

Offences against Act and corresponding penalties

15  (1) A Part 2 fuel supplier who contravenes section 3 (1), (2) or (3) [Part 2 compliance reports] commits an offence.

(2) A Part 3 fuel supplier who contravenes section 7 (1), (2) or (3) [Part 3 compliance reports] commits an offence.

(3) A person who does either of the following commits an offence:

(a) obstructs or resists the director or 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 the director or an inspector.

(4) A person convicted of an offence under this section 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.

Offences of providing false or misleading information and penalties

16  (1) 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.

(2) A person who provides false or misleading information when required under this Act to provide information, other than a person described in subsection (1), 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.

(3) A person is not guilty of an offence under subsection (2) if the person establishes that, at the time the information was provided, the person did not know that it was false or misleading and exercised reasonable care and diligence in providing the information.

Continuing offences

17  If an offence under section 15 [offences against Act and corresponding penalties] 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.

Liability of directors, officers and agents

18  (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.

(2) Subsection (1) applies whether or not the corporation is prosecuted for or convicted of the offence.

Relationship between administrative penalties and offences

19  (1) A person may be prosecuted under this Act for a contravention or failure 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 or failure in relation to which the person has been convicted of an offence under this Act.

Other provisions relating to offences

20  (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.

Part 7 — General

Notice and service under this Act

21  (1) Any notice under this Act may be given by registered mail sent to the last known address of the person.

(2) A notice or other thing that, under this Act, must be served on a person may be served by registered mail sent to the last known address of the person.

(3) If a notice or other thing under this Act is sent by registered mail to the last known address of the person, the notice or other thing is deemed to be served on the person to whom it is addressed on the 14th day after deposit with Canada Post unless the person received actual service before that day.

Confidentiality

22  (1) Subject to subsection (2), for the purposes of section 21 (1) (b) of the Freedom of Information and Protection of Privacy Act, information that is in the custody or under the control of the government and that was obtained under this Act from a fuel supplier or in the course of an inspection authorized under section 28 [regulations in relation to inspections], whether or not the information was supplied to the government, is deemed to have been supplied to the government implicitly or explicitly in confidence, if it is

(a) information with respect to a trade secret, within the meaning of the Freedom of Information and Protection of Privacy Act, of the fuel supplier or another person, or

(b) commercial, financial, labour relations, scientific or technical information of the fuel supplier or another person.

(2) Subsection (1) does not apply to the following:

(a) in relation to Part 2,

(i) percentages of gasoline class fuel or diesel class fuel supplied by a Part 2 fuel supplier in a compliance period that are renewable fuel, and

(ii) any notional transfers under section 5 [transfers between Part 2 fuel suppliers];

(b) in relation to Part 3,

(i) the determination of the weighted average carbon intensity of all Part 3 fuels supplied by a Part 3 fuel supplier in a compliance period, and

(ii) any notional transfers and applications under section 8 [transfers between Part 3 fuel suppliers] or notional retentions and applications under section 25 (p) [Part 3 compliance banking in early years];

(c) information that is authorized to be published under this Act.

General regulation powers

23  (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) prescribing information that must or may be published under this Act;

(b) establishing criteria that must be applied by the director in making decisions under this Act;

(c) defining words or expressions used but not defined in this Act;

(d) respecting any other matter for which regulations are contemplated by this Act.

(3) A regulation under this Act may do any or all 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 types or classes of fuels, as established by regulation.

(4) A regulation under this Act may adopt by reference, in whole, in part or with any changes considered appropriate, a regulation, code, standard or rule

(a) enacted as or under a law of another jurisdiction, including a foreign jurisdiction, or

(b) 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 Part 2 fuels

24  Without limiting any other provision of this Act, the Lieutenant Governor in Council may make regulations in relation to Part 2 fuels as follows:

(a) prescribing a substance, or prescribing a substance that meets a prescribed standard, as a Part 2 fuel;

(b) excluding substances from being included in one or more of the classes of Part 2 fuels, including excluding them on the basis of the purpose for which they are reasonably expected to be used;

(c) prescribing a substance, or prescribing a substance that meets a prescribed standard, as a renewable fuel in relation to gasoline class fuel or diesel class fuel on the basis that the substance is derived from a source that

(i) is renewable, or

(ii) would be biomass waste if not used for fuel production;

(d) prescribing circumstances in which

(i) a person is a Part 2 fuel supplier under paragraph (b) of the definition of "Part 2 fuel supplier", or

(ii) a person who would otherwise be a Part 2 fuel supplier is not considered to be a Part 2 fuel supplier;

(e) providing for sales between Part 2 fuel suppliers to not be considered as the first sale in British Columbia for the purposes of the definition of "supply";

(f) respecting circumstances in which the definition of "supply" does not apply to a Part 2 fuel;

(g) prescribing the percentage of renewable fuel that is required for compliance with section 2 [requirements for renewable fuel content];

(h) prescribing compliance periods for the purposes of section 2 [requirements for renewable fuel content];

(i) prescribing matters to be reported under section 3 (1) (b) [Part 2 compliance reports];

(j) requiring Part 2 fuel suppliers to provide additional reports relating to the supply of Part 2 fuel;

(k) respecting reports in relation to Part 2 fuels, including, without limitation, prescribing requirements respecting the timing, form, content, supporting evidence, verification, certification and manner of submission of the reports;

(l) requiring Part 2 fuel suppliers to retain for prescribed periods records relating to reports required under this Act, including records necessary to provide proof of compliance with this Act;

(m) establishing conditions or restrictions on notional transfers under section 5 [transfers between Part 2 fuel suppliers];

(n) providing that, for the first compliance period under Part 2, a Part 2 fuel supplier may include renewable fuel supplied by the Part 2 fuel supplier in the 12 months immediately before the start of that compliance period for the purposes of complying with section 2 [requirements for renewable fuel content] in relation to the compliance period.

Regulations in relation to Part 3 fuels

25  Without limiting any other provision of this Act, the Lieutenant Governor in Council may make regulations in relation to Part 3 fuels as follows:

(a) prescribing an energy source, including an energy source that is not a fuel, to be a Part 3 fuel;

(b) establishing the greenhouse gas emissions that are deemed to be attributable to a Part 3 fuel, including, without limitation, greenhouse gas emissions related to the life cycle of the fuel and its fuel feedstock whether they occur inside or outside British Columbia;

(c) prescribing circumstances in which

(i) a person is a Part 3 fuel supplier under paragraph (b) of the definition of "Part 3 fuel supplier", and

(ii) a person who would otherwise be a Part 3 fuel supplier is not considered to be a Part 3 fuel supplier;

(d) providing for sales between Part 3 fuel suppliers to not be considered as the first sale in British Columbia for the purposes of the definition of "supply";

(e) respecting circumstances in which the definition of "supply" does not apply to a Part 3 fuel;

(f) prescribing a maximum carbon intensity level for the purposes of section 6 (1) [requirements for reduced carbon intensity];

(g) prescribing compliance periods for the purposes of section 6 [requirements for reduced carbon intensity];

(h) prescribing matters to be reported under section 7 (1) (b) [Part 3 compliance reports];

(i) requiring Part 3 fuel suppliers to provide additional reports relating to the supply of Part 3 fuel;

(j) respecting reports in relation to Part 3 fuels, including, without limitation, prescribing requirements respecting the timing, form, content, supporting evidence, verification, certification and manner of submission of the reports;

(k) requiring Part 3 fuel suppliers to retain for prescribed periods records relating to reports required under this Act, including records necessary to provide proof of compliance with this Act;

(l) establishing components for the purposes of determining the carbon intensity of a Part 3 fuel;

(m) respecting determinations of carbon intensity and weighted average carbon intensity under section 6 [requirements for reduced carbon intensity], including by providing differently in relation to any factor that the Lieutenant Governor in Council considers contributes differently to the greenhouse gas emissions attributable to the Part 3 fuel;

(n) respecting notional transfers and applications under section 8 [transfers between Part 3 fuel suppliers];

(o) respecting the calculation of carbon dioxide equivalent emissions for the purpose of section 8 [transfers between Part 3 fuel suppliers];

(p) providing that, beginning with the first compliance period under Part 3 and continuing through the prescribed following compliance periods, a Part 3 fuel supplier may, despite the restriction in section 8 (1) (b),

(i) notionally retain emissions that it could apply under section 8 (1) (b) (i) [application of credits] as credits, and

(ii) apply the retained emissions as credits against its attributable greenhouse gas emissions for a future compliance period that includes all or part of the 3 calendar years following the year in which the credits were generated.

Regulations in relation to administrative penalties

26  Without limiting any other provision of this Act, the Lieutenant Governor in Council may make regulations for the purposes of Part 4 [Administrative Penalties] as follows:

(a) prescribing a penalty rate for a compliance period for the purposes of section 9 [automatic administrative penalties: Part 2 fuel requirements] or 10 [automatic administrative penalties: Part 3 fuel requirements];

(b) in relation to administrative penalties under section 11 [imposed administrative penalties: fuel requirements] or 12 [administrative penalties in relation to other matters],

(i) prescribing a limitation period for imposing an administrative penalty and evidentiary matters in relation to that period, and

(ii) prescribing procedures to be applied by the director in making a determination of non-compliance;

(c) in relation to administrative penalties under section 12 [administrative penalties in relation to other matters],

(i) 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,

(ii) prescribing provisions of this Act and the regulations in relation to which an administrative penalty may be imposed,

(iii) authorizing administrative penalties to be imposed on a daily basis for continuing contraventions or failures,

(iv) prescribing matters that must be considered by the director in imposing the penalty in a particular case, and

(v) prescribing whether an administrative penalty notice must be cancelled if the person on whom it was served demonstrates to the satisfaction of the director that the person exercised due diligence to prevent the specified contravention or failure;

(d) establishing the required content of administrative penalty notices;

(e) establishing procedures for providing a person on whom an administrative penalty notice has been served with an opportunity to make representations, which may include opportunities that do not involve an oral hearing;

(f) respecting the time limit, manner and process for paying an administrative penalty;

(g) prescribing the consequences of failing to pay an administrative penalty which may include, but are not limited to, imposing additional administrative penalties;

(h) providing for the publication of information respecting the imposition of an administrative penalty.

Regulations in relation to appeals

27  (1) Without limiting any other provision of this Act, the Lieutenant Governor in Council may make regulations respecting appeals under Part 5 [Appeals to Environmental Appeal Board], including, without limitation, regulations as follows:

(a) prescribing decisions or classes of decisions as being appealable under that Part;

(b) prescribing

(i) time limits and procedures in relation to appeals,

(ii) the powers of the appeal board in conducting, hearing and deciding appeals, and

(iii) whether an appeal operates as a stay in relation to a decision or a class of decision;

(c) exercising authority equivalent to that under section 105 of the Environmental Management Act or adopting regulations under that section.

(2) Regulations under subsection (1) may provide that specified provisions of the Environmental Management Act in relation to appeals apply in relation to appeals under this Act with the changes the Lieutenant Governor in Council considers necessary or advisable.

Regulations in relation to inspections

28  (1) Without limiting any other provision of this Act, the Lieutenant Governor in Council may make regulations respecting inspections for the purposes of ensuring compliance with this Act and the regulations, including, without limitation, regulations as follows:

(a) authorizing the director to designate persons or classes of persons as inspectors and issue identification to those inspectors;

(b) prescribing inspection and seizure powers, including, without limitation, and as is necessary for the purposes of inspection, the authority to

(i) enter land or premises,

(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,

(vi) take, with the inspector, other persons or equipment, and

(vii) require a person who is the subject of an inspection or who is or was a director, receiver, receiver manager, officer, employee, banker or agent of such a person to produce records for examination or copying or to provide information;

(c) limiting inspection and seizure powers of an inspector who is not an employee under the Public Service Act and requiring that the limitations be set out in identification provided by the director;

(d) requiring that an inspector exercising powers under this Act provide identification on request.

(2) Regulations under subsection (1) may provide that specified provisions of the Environmental Management Act in relation to inspections or seizures apply in relation to inspections or seizures under this Act with the changes the Lieutenant Governor in Council considers necessary or advisable.

Commencement

29  This Act comes into force by regulation of the Lieutenant Governor in Council.

 
Explanatory Note

This Bill: