Fuel Charge Relief: Facilities subject to provincial carbon pricing systems for industry: Ontario

The Federal Fuel Charge and Ontario’s Emissions Performance Standards (EPS) Program

The federal Fuel Charge applies in Ontario alongside the provincial output-based performance standards system, the Emissions Performance Standards (EPS) program.

Exemption eligibility criteria

If registered as an emitter with the Canada Revenue Agency (CRA), owners and operators of facilities subject to Ontario’s EPS program can become eligible for certain exemptions from the federal fuel charge. To register as an emitter with the CRA, you must own or operate all parts of a covered facility. A facility is a covered facility if, in accordance with Part 9 of the Fuel Charge Regulations:

• the facility is located entirely in Ontario
• all parts of the facility function as a single integrated site
• all parts of the facility have at least one owner or operator in common
• the facility is subject to Ontario’s EPS program, and
• you have obtained a Statement from the federal Minister of the Environment and Climate Change confirming the facility is subject to the Ontario EPS 

Federal Fuel Charge exemption process

Once you have registered your facility(ies) in Ontario’s EPS program and received a Certificate of Facility Registration from the Ontario Ministry of the Environment, Conservation and Parks (MECP), complete the following three (3) steps:

Step 1: Apply for a determination and obtain a Statement from the federal Minister of the Environment and Climate Change

To apply for a determination, the primary contact (the Authorized Representative recognized by Ontario’s MECP) must send the following to Environment and Climate Change Canada (ECCC) at ptintegrationpt@ec.gc.ca:

• a completed Application for a Determination (request this form at ptintegrationpt@ec.gc.ca)
• a map* of the location and boundaries of the facility, and
• a copy of MECP’s confirmation of EPS registration email with all associated documentation

*The map must show the location and boundaries of the facility. To indicate its location, include its surroundings. Draw the boundary in accordance with the definition of "facility" under Ontario’s EPS program. Maps must be kmz or kml format.

Repeat this step for each facility registered under Ontario’s EPS program.

Once your application is processed, ECCC will issue you a Statement. You will need this for Step 2.

Step 2: Register as an emitter with the CRA

To register the facility owner or operator as an emitter, complete and submit the L400 Fuel Charge Registration and the L400-1 Fuel Charge Registration Schedule using the same legal name and federal business number to which ECCC’s Statement was issued.

The CRA will issue an endorsement letter confirming registration as an emitter with an effective date. The effective date will be the first of the month CRA receives the completed L400 and L400-1, or the effective date on the Statement you obtained in Step 1, whichever effective date is later. You are not eligible for exemptions from the federal fuel charge—in relation to fuel received for use at the covered facility—prior to that effective date.

Repeat this step for each facility for which you have been issued a Statement.

Step 3: Provide a complete Exemption Certificate to your Supplier/ Avoid s.18 charge

Visit Fuel charge relief to download, complete, and sign an exemption certificate.

Provide this exemption certificate to your fuel supplier(s).

You are then eligible to receive deliveries of fuel from that supplier if the exemption certificate applies with respect to the delivery in accordance with section 36 of the Greenhouse Gas Pollution Pricing Act (GGPPA).

If you are also a registered distributor, you can avoid the charge that would otherwise be applicable under section 18 of the GGPPA for fuel that is used on your covered facility (including flare).

For more information on registering as an emitter, and emitter responsibilities under the GGPPA, see FCN5 Emitters Under the Greenhouse Gas Pollution Pricing Act.

Obligation to Notify the federal Minister of the Environment and Climate Change

If you have been issued a Statement with respect to a facility, you must notify the federal Minister of the Environment and Climate Change of any of the following changes in respect of the facility if:  

• you cease to be the owner or operator of the facility
• there is a change to the boundary of the facility, or
• the facility is no longer subject to Ontario’s EPS program
  

To provide notice, the primary contact (the Authorized Representative recognized by MECP) must send the following information to ECCC at ptintegrationpt@ec.gc.ca:

1. Owner/Operator legal name and federal business number
2. Name of the facility involved as well as the unique facility ID issued by the province
3. Statement Number issued by ECCC
4. Description of the change and supporting information (e.g., date you cease to own or operate facility, name of the new owner/operator, copy of revised or updated map of the location and boundary of the facility, etc.), and
5. Confirmation that Ontario’s MECP has been notified.  Go to MECP – Emissions Performance Standards program for more information on how to notify of a change

Note: If you are also registered as an emitter with CRA, you may need to cancel your registration. For more information about this process, visit FCN5 Emitters Under the Greenhouse Gas Pollution Pricing Act.

Contact ptintegrationpt@ec.gc.ca to find out more.