P-30.01, r. 0.2 - Ministerial Order concerning the measurement methods and tools for the purposes of the Regulation respecting the integration of low‑carbon‑intensity fuel content into gasoline and diesel fuel

Updated to 1 January 2024

This document has official status.

chapter P-30.01, r. 0.2

Ministerial Order concerning the measurement methods and tools for the purposes of the Regulation respecting the integration of low‑carbon‑intensity fuel content into gasoline and diesel fuel

Petroleum Products Act

(chapter P-30.01, s. 5).

DIVISION I GENERAL

M.O. 2021-006, Div. I.

1. In this Order, “Regulation” used alone means the Regulation respecting the integration of low‑carbon‑intensity fuel content into gasoline and diesel fuel (chapter P-30.01, r. 0.1).

M.O. 2021-006, s. 1.

DIVISION II CALCULATION METHOD

M.O. 2021-006, Div. II.

2. The proportion of the volume of low-carbon-intensity fuel content integrated into the total volume of gasoline provided for in section 2 of the Regulation is calculated using the following formula:

	A ×	(B – C)	+ E – F – G + H + (I × 1) – J
		D
	K – L – M – N – O

In the formula provided for in the first paragraph,

(1)  the letter “A” represents the volume of low-carbon-intensity fuel content in the total volume of the gasoline distributed or used in Québec during a calendar year by the distributor, in litres;

(2)  the letter “B” represents the value of the reference carbon intensity for gasoline, that is, 83.1 g of CO2 equivalent per megajoule of energy produced;

(3)  the letter “C” represents the weighted average value of the carbon intensity of the volumes of low-carbon-intensity fuel content integrated into the total volume of the gasoline distributed or used in Québec during a calendar year, in grams of CO2 equivalent per megajoule of energy produced;

(4)  the letter “D” represents the reduction in carbon intensity under section 4 of the Regulation and corresponds,

(a)  until 31 December 2027, to 37.4 g of CO2 equivalent per megajoule of energy produced;

(b)  as of 1 January 2028, to 41.2 g of CO2 equivalent per megajoule of energy produced;

(5)  the letter “E” represents the volume of low-carbon-intensity fuel content corresponding to the credits purchased under section 9 of the Regulation for the purposes of section 2 of the Regulation, in litres;

(6)  the letter “F” represents the volume of low-carbon-intensity fuel content corresponding to the credits sold under section 9 of the Regulation for the purposes of section 2 of the Regulation, in litres;

(7)  the letter “G” represents the volume of low-carbon-intensity fuel content corresponding to the credits carried over under section 10 of the Regulation for the purposes of section 2 of the Regulation, in litres, without exceeding,

(a)  with respect to the years 2023 and 2024, 2% of the volume of gasoline that the divisor (K – L– M – N – O) represents in the formula provided for in the first paragraph;

(b)  with respect to the years 2025 to 2027, 2.4% of the volume of gasoline that the divisor (K – L– M – N – O) represents in the formula provided for in the first paragraph;

(c)  with respect to the years 2028 and 2029, 2.8% of the volume of gasoline that the divisor (K – L– M – N – O) represents in the formula provided for in the first paragraph;

(d)  with respect to a year beginning after 2029, 3% of the volume of gasoline that the divisor (K – L– M – N – O) represents in the formula provided for in the first paragraph;

(8)  the letter “H” represents the volume of low-carbon-intensity fuel content corresponding to the credits of the previous calendar year carried over under section 10 of the Regulation for the purposes of section 2 of the Regulation, in litres;

(9)  the letter “I” represents the volume of low-carbon-intensity fuel content integrated into diesel fuel corresponding to the credits established, purchased or carried over under section 11 of the Regulation, in litres;

(10)  “1” represents the factor provided for in paragraph 2 of section 11 of the Regulation;

(11)  the letter “J” represents the volume of low-carbon-intensity fuel content integrated into gasoline corresponding to the credits established, purchased or carried over under section 11 of the Regulation, in litres;

(12)  the letter “K” represents the total volume of gasoline that a distributor distributes or uses in Québec during a calendar year, in litres;

(13)  the letter “L” represents the volume of gasoline excluded under subparagraphs 1 to 3 of the first paragraph of section 5 of the Regulation, in litres;

(14)  the letter “M” represents the volume of gasoline that a distributor distributes or uses in the exclusion zone A as delimited in Schedule I to the Regulation during a calendar year, in litres;

(15)  the letter “N”, until 31 December 2024, represents the volume of gasoline that a distributor distributes or uses in the exclusion zone B as delimited in Schedule I to the Regulation during a calendar year, in litres, and after that date represents zero; and

(16)  the letter “O” represents the volume of premium gasoline that a distributor distributes or uses in Québec during a calendar year, in litres.

M.O. 2021-006, s. 2.

3. The proportion of the volume of low-carbon-intensity fuel content integrated into the total volume of diesel fuel provided for in section 3 of the Regulation is calculated using the following formula:

	A ×	(B – C)	+ E – F – G + H + (I × 0.33) – J
		D
	K – L – M – N

In the formula provided for in the first paragraph,

(1)  the letter “A” represents the volume of low-carbon-intensity fuel content in the total volume of the diesel fuel distributed or used in Québec during a calendar year by the distributor, in litres;

(2)  the letter “B” represents the value of the reference carbon intensity for diesel, that is, 92.9 g of CO2 equivalent per megajoule of energy produced;

(3)  the letter “C” represents the weighted average value of the carbon intensity of the low‑carbon‑intensity fuel content integrated into the total volume of the diesel fuel distributed or used in Québec during a calendar year, in grams of CO2 equivalent per megajoule of energy produced;

(4)  the letter “D” represents the reduction in carbon intensity under section 4 of the Regulation and corresponds,

(a)  until 31 December 2027, to 65.0 g of CO2 equivalent per megajoule of energy produced;

(b)  as of 1 January 2028, to 69.7 g of CO2 equivalent per megajoule of energy produced;

(5)  the letter “E” represents the volume of low-carbon-intensity fuel content corresponding to the credits purchased under section 9 of the Regulation for the purposes of section 3 of the Regulation, in litres;

(6)  the letter “F” represents the volume of low-carbon-intensity fuel content corresponding to the credits sold under section 9 of the Regulation for the purposes of section 3 of the Regulation, in litres;

(7)  the letter “G” represents the volume of low-carbon-intensity fuel content corresponding to the credits carried over under section 10 of the Regulation for the purposes of section 3 of the Regulation, in litres, without exceeding,

(a)  with respect to the years 2023 to 2024, 0.6% of the volume of diesel fuel that the divisor (K – L– M – N) represents in the formula provided for in the first paragraph;

(b)  with respect to the years 2025 to 2029, 1% of the volume of diesel fuel that the divisor (K – L– M – N) represents in the formula provided for in the first paragraph;

(c)  with respect to a year beginning after 2029, 2% of the volume of diesel fuel that the divisor (K – L– M – N) represents in the formula provided for in the first paragraph;

(8)  the letter “H” represents the volume of low-carbon-intensity fuel content corresponding to the credits of the previous calendar year carried over under section 10 of the Regulation for the purposes of section 3 of the Regulation, in litres;

(9)  the letter “I” represents the volume of low-carbon-intensity fuel content integrated into gasoline corresponding to the credits established, purchased or carried over under section 11 of the Regulation, in litres;

(10)  “0.33” represents the factor provided for in paragraph 1 of section 11 of the Regulation;

(11)  the letter “J” represents the volume of low-carbon-intensity fuel content integrated into diesel fuel corresponding to the credits established, purchased or carried over under section 11 of the Regulation, in litres;

(12)  the letter “K” represents the total volume of diesel fuel that a distributor distributes or uses in Québec during a calendar year, in litres;

(13)  the letter “L” represents the volume of diesel fuel excluded under subparagraphs 1 to 4 of the first paragraph of section 6 of the Regulation, in litres;

(14)  the letter “M” represents the volume of diesel fuel that a distributor distributes or uses in the exclusion zone A as delimited in Schedule I to the Regulation during a calendar year, in litres; and

(15)  the letter “N”, until 31 December 2024, represents the volume of diesel fuel that a distributor distributes or uses in the exclusion zone B as delimited in Schedule I to the Regulation during a calendar year, in litres, and after that date represents zero.

M.O. 2021-006, s. 3.

DIVISION III CARBON INTENSITY MEASUREMENT TOOL

M.O. 2021-006, Div. III.

4. The carbon intensity of low‑carbon‑intensity fuel content and the reference carbon intensity for gasoline and diesel fuel are determined using the GHGenius software, version 4.03c, available on request from Environment and Climate Change Canada at ec.modeleacvcarburant‑[e-mail], in compliance with the conditions provided for in this Division.

For the purposes of this Division, “software” used alone means the software referred to in the first paragraph.

When using the software, the value “2” corresponding to the values for 2007 as global warming potential of the Intergovernmental Panel on Climate Change must be selected in cell B6 identified “GWP selector” in the sheet “Input”. For transportation in Québec, a value of “80” must be entered in line 96 identified “Truck” in the sheet “Input” in the column corresponding to the type of low‑carbon‑intensity fuel content concerned. For hydroelectricity delivered, a value of “7000” must be entered in line 28 identified “g-CO2-eq/GJ-delivered” in column J identified “hydro” in the sheet “Elec Emissions”.

M.O. 2021-006, s. 4.

5. The data entered into the software must come from a facility that has been manufacturing low‑carbon‑intensity fuel content in continuous operation for at least 12 months.

Despite the first paragraph, where a facility that manufactures low‑carbon‑intensity fuel content has been in operation for 6 to 12 consecutive months, the data entered into the software is the data from an estimate over a period of 12 months using the available data. Where the data for at least 12 months becomes available, it must replace the estimated data entered into the software.

M.O. 2021-006, s. 5.

6. The data entered into the software must be reliable and objective. Except for data concerning transportation, the data must also come from a measurable value from direct measurement or a calculation based on direct measurements.

M.O. 2021-006, s. 6.

7. The data must be entered using either of the following allocation methods:

(1)  specific allocation: a separate carbon intensity is determined annually on the basis of each eligible material used in the manufacture of low‑carbon‑intensity fuel content and its origin;

(2)  average base: a carbon intensity is determined annually on the basis of the weighted mass average base of all eligible materials used in the manufacture of low‑carbon‑intensity fuel content.

M.O. 2021-006, s. 7.

8. The carbon intensity of low‑carbon‑intensity fuel content is obtained from the sum of the following values:

(1)  the sum of the lifetime emissions values of the low‑carbon‑intensity fuel content;

(2)  either of the following values, as the case may be:

(a)  for low-carbon-intensity fuel content to be integrated into gasoline: the value in line 97 in the sheet “Exhaust Emissions” in the column corresponding to the type of low‑carbon‑intensity fuel content concerned and the eligible materials used in its manufacture;

(b)  for low-carbon-intensity fuel content to be integrated into diesel fuel: the value in line 143 in the sheet “Exhaust Emissions” in the column corresponding to the type of low‑carbon‑intensity fuel content concerned and the eligible materials used in its manufacture.

M.O. 2021-006, s. 8.

9. Where the carbon intensity of low‑carbon‑intensity fuel content has been determined for 1 year, it is considered to be the same for the subsequent years if it is estimated that there has been no change having an impact on the data entered into the software that would result in a change of more than 5%.

M.O. 2021-006, s. 9.

DIVISION IV FINAL

M.O. 2021-006, Div. IV.

10. (Omitted).

M.O. 2021-006, s. 10.

REFERENCES

M.O. 2021-006, 2021 G.O. 2, 5105