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Tax and Revenue Administration
Sale or Removal of Gas Liquids or Fuel
Special Notice Vol. 11 No. 9


Last Reviewed: March 14, 2017
Produced by: Alberta Treasury Board and Finance, Tax and Revenue Administration
For more information: tra.carbonlevy@gov.ab.ca

Vol. 11 No. 9 / March 2017

SPECIAL NOTICE - SALE OR REMOVAL OF GAS LIQUIDS OR FUEL DERIVED FROM GAS LIQUIDS FROM CERTAIN LOCATIONS

NOTE: This special notice 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 special notice and governing legislation, the legislation takes precedence.

Under the Climate Leadership Plan, a carbon levy applies to transportation and other fuels effective January 1, 2017.

In accordance with section 4 of the Climate Leadership Act (the Act) and section 2 of the Climate Leadership Regulation, generally every recipient is required to pay a carbon levy on fuel, at the rate set for the respective type of fuel (see the Carbon Levy Rates table), at the time the recipient sells or removes the fuel from a gas processing facility, gas fractionation plant, straddle plant, offsite storage facility or liquids pipeline. However, no carbon levy is payable at the time the fuel is sold or removed if the fuel is moved from a gas processing facility, gas fractionation plant, straddle plant, offsite storage facility or liquids pipeline to a gas processing facility, gas fractionation plant, straddle plant, storage facility or into a liquids pipeline.

There is no intention in the Act to differentiate between methods of transportation of fuel when the destination is the same. Therefore, fuel may be transported using various methods without the carbon levy applying at the time it is transported. Such methods of transportation may include, but are not limited to, by way of a liquids pipeline, by truck or by railway locomotive.

Sale of Fuel by a Recipient

In situations where a recipient sells fuel from a gas processing facility, gas fractionation plant, straddle plant, offsite storage facility or liquids pipeline, it is acknowledged that the seller cannot necessarily be certain that the fuel will be delivered to a gas processing facility, gas fractionation plant, straddle plant, storage facility or into a liquids pipeline, unless the seller or its agent is responsible for delivering the fuel.

In such cases, if the seller or its agent delivers the fuel to a gas processing facility, gas fractionation plant, straddle plant, storage facility or into a liquids pipeline, no carbon levy will apply at the time of sale. However, if the seller or its agent is not the one to deliver the fuel, such that there is uncertainty as to whether or not the fuel will be delivered to a gas processing facility, gas fractionation plant, straddle plant, storage facility or into a liquids pipeline, then the seller should collect the carbon levy from the purchaser and remit it to the Crown unless the purchaser holds either a valid carbon levy exemption certificate or a licence entitling the purchaser to purchase the fuel exempt from the carbon levy.

Removal by a Recipient of its Own Fuel

In situations where a recipient removes its own fuel from a gas processing facility, gas fractionation plant, straddle plant, offsite storage facility or liquids pipeline to a gas processing facility, gas fractionation plant, straddle plant, storage facility or into a liquids pipeline, no carbon levy will apply at the time of removal.

Additional Information

For additional information on the carbon levy, please see TRA's Carbon Levy Administration - Publications and Forms page.

For questions about the administration of the carbon levy program, please email us at TRA.CarbonLevy@gov.ab.ca.

 



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