Information Bulletin RLCF-005: Exemption Reports

On this page

• Exemption volume thresholds
• Associates
• Exemption pathway
• Credit Transfers
• Applying for an exemption

Background

Under the Low Carbon Fuels Act (the Act) and the Low Carbon Fuels (General) Regulation (LCFGR), organizations that market fuel within the applicable exemption thresholds in a compliance period may apply for exemption from:

• Section 9 [Renewable Fuel Target], and/or
• Section 12 [Low carbon Fuel Target] of the Act.

Exemption volume thresholds (applies to all exemption pathways)

Fossil-derived diesel and gasoline

Beginning in the 2022 compliance period, eligibility requires that the total amount of diesel and gasoline fuels marketed in the compliance period by the organization and its associates must not be more than 200,000 litres.  

Fossil-derived jet fuel

Beginning in the 2024 compliance period, the total amount of fossil-derived jet fuel marketed in the compliance period by the organization and its associates must be not more than the applicable threshold for that compliance period, as set out below. 

• 2024-2027: 100,000,000 litres
• 2028-2029: 10,000,000 litres
• 2030 and subsequent compliance periods: 4,000,000 litres

Associates

For exemption purposes, an organization’s associate includes:

• an affiliate of the organization (as defined in section 1(1) of the Business Corporations Act), or
• a partner of the organization.

Accordingly, exemption volume thresholds are assessed using the combined total marketed by the organization and its associates in the compliance period.  

Exemption pathways

A) Exemption from section 12 of the Act (Low Carbon Fuel Target) 

Diesel and gasoline fuel categories

Organizations (including associates) that market 200,000 litres or less of diesel or gasoline may apply for exemption from the Low Carbon Fuel Target for that compliance period. An exemption cannot be granted if the organization or any associate has received credits under section 13 [Supply of Fuel] of the Act in that compliance period.

Jet fuel category

To be eligible, the total amount of fossil-derived jet fuel marketed in the compliance period by the organization (including associates) must not exceed the applicable jet fuel maximum for that compliance period (e.g., 100,000,000 litres in each of the 2024-2027 compliance periods). An exemption cannot be granted if the organization or any associate received credits under section 13 [Supply of Fuel] for fuel in the jet fuel category in that compliance period.

If the criteria above are met, an organization may apply for and receive an exemption from section 12 for “jet fuel only”, even if it does not apply or qualify for an exemption for diesel and gasoline (for example, where it markets more than 200,000 litres of diesel and gasoline). 

B) Exemption from section 9 of the Act (Renewable Fuel Target) 

Diesel and gasoline fuel categories

Organizations that market 200,000 litres or less of diesel and gasoline, together with their associates, may apply for exemption from the Renewable Fuel Target for that compliance period. An exemption cannot be granted if the organization or any associate has conducted a notional transfer of renewable fuel under section 10 [Notional transfer] of the Act in that compliance period. 

Jet fuel category 

The prescribed Renewable Fuel Target for jet fuel is 0% for compliance periods 2024 to 2027, rising to 1% in 2028, 2% in 2029, and 3% in 2030 and subsequent compliance periods.

Because the target is set at 0% for 2024-2027, compliance obligations under the Renewable Fuel Target for the jet fuel category will not result in penalties in those compliance periods. However, the exemption criteria (including the restriction on notional transfers) still apply to exemption applications.

Note: under this pathway, there is no separate “jet fuel only” exemption from section 9 [Renewable Fuel Target]. The pathway criteria apply as set out above. 

Credit Transfers (how they interact with exemption eligibility)

Organizations may transfer or acquire credits and still apply for an exemption for the compliance period, provided neither the organization nor its associates received credits under section 13 [Supply of Fuel] in that compliance period.

Applying for an exemption

To apply for an exemption, an organization must submit an exemption application to the director together with the compliance report for the applicable compliance period, and the application must be submitted in the form and manner required by the director.

For the 2025 compliance period, an organization seeking an exemption must submit its compliance report to the director through the Low Carbon Fuel Standard (LCFS) Portal. If the organization is not yet registered for the LCFS Portal, it must register in advance (via Form A) to obtain access. Once registered, the organization must complete and submit its compliance report in the LCFS Portal, as required under the Act and the LCFGR, by the compliance reporting deadline of March 31 following the end of the compliance period.

By the same deadline, the organization must also notify the director by email at lcfs@gov.bc.ca that it is requesting an exemption for that compliance period. The email must include: 

• either a statement that the applicant has no associates or a list of the applicant’s associates; and
• a request for exemption from the Renewable Fuel Target and/or the Low Carbon Fuel Target, as applicable, under section 12(2) of the LCFGR.
• the following title in the subject line: [OrganizationName]_2025_Exemption Application 

---

This information is for your convenience and guidance only and does not replace or constitute legal advice. It is recommended that parties who may be a fuel supplier review the Low Carbon Fuels Act, Low Carbon Fuels (General) Regulation and the Low Carbon Fuels (Technical) Regulation and seek independent legal advice to confirm their status, legal obligations and opportunities.