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Tax and Revenue Administration
Locomotive Diesel Used in a Railway Locomotive
Information Circular CL-RWY-1


Last Reviewed: November 3, 2016
Produced by: Alberta Treasury Board and Finance, Tax and Revenue Administration
For more information: tra.carbonlevy@gov.ab.ca

CL-RWY-1 / October 2016

LOCOMOTIVE DIESEL USED IN A RAILWAY LOCOMOTIVE

NOTE: This information circular is intended to explain legislation and provide specific information. Every effort has been made to ensure the contents are accurate. However, if a discrepancy should occur in interpretation between this information circular and governing legislation, the legislation takes precedence.

This Information Circular explains:


DEFINITION OF LOCOMOTIVE DIESEL

  1. Locomotive diesel means diesel fuel that is used to operate a railway locomotive or to provide heat or light to railway cars attached to a railway locomotive.

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REGISTRATION

  1. Anyone who uses locomotive diesel in Alberta is required to register with Alberta Treasury Board and Finance, Tax and Revenue Administration (TRA) as a direct remitter under the Climate Leadership Act (the Act) and the Climate Leadership Regulation (the Regulation) by completing the Transportation and Other Fuels Carbon Levy Direct Remitter Registration Form (AT5100).

PURCHASE OF LOCOMOTIVE DIESEL

  1. Railways are permitted to use locomotive diesel (clear diesel purchased exempt from carbon levy) only in railway locomotives. The railway must clearly communicate to its supplier whether locomotive diesel or carbon levy-paid diesel is being ordered.


  2. Locomotive diesel is not permitted in other vehicles or equipment operated by railways and clear carbon levy-paid fuel is to be used instead. A rebate may be claimed if railways use clear carbon levy-paid diesel for eligible purposes.


  3. Suppliers will supply locomotive diesel only to TRA registered railways.

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CARBON LEVY ON LOCOMOTIVE DIESEL

  1. Carbon levy is payable on locomotive diesel at the time the locomotive diesel is used in Alberta, regardless of where the locomotive diesel was purchased.


  2. The current carbon levy rate for locomotive diesel can be found here: Carbon Levy Rates.

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CARBON LEVY RETURN

  1. As a direct remitter, a recipient of locomotive diesel is required to file a monthly Carbon Levy Return and remit the carbon levy payable to TRA. The return and carbon levy payment must be received by TRA no later than 28 days from the end of a calendar month. Should the 28th day of the month fall on a weekend or government holiday, payment of the carbon levy and filing of the return are due on the next business day.


  2. To file the carbon levy return, you will receive a separate Tax and Revenue Administration Client Self-Service (TRACS) enrolment invitation letter. Visit http://www.finance.alberta.ca/tracs/index.html for more information about TRACS.

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RECORDS

  1. As a direct remitter, a recipient of locomotive diesel must keep records including:

    • fuel purchases,
    • fuel inventory,
    • distance travelled by the locomotive,
    • amount of fuel used in the locomotive,
    • amount of fuel used in Alberta in a vehicle other than a locomotive, and
    • any other records that establish the carbon levy payable under the Climate Leadership Act.

  2. Records must be retained for 6 years from the end of the calendar year in which the record was created.

 



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