The Low Carbon Fuels Act, Low Carbon Fuels (General) Regulation and Low Carbon Fuels (Technical) Regulation are together known as the Low Carbon Fuel Standard (LCFS). The low carbon fuel requirements of the Act apply to base fuels (fossil-derived diesel fuel, gasoline and jet fuel) and their alternatives when they are supplied for transportation. Beginning in the 2024 compliance period, the LCFS will also apply to these fuels used for prescribed non-transportation purposes. This bulletin identifies an alternative to a base fuel for the prescribed non-transportation purposes.
The LCFS applies to all base fuels supplied for a prescribed non-transportation purpose. For non-base fuels supplied for a purpose other than transportation, the LCFS only applies if the fuel is an alternative to a base fuel. Section 5(1)(b) of the Act provides that a fuel is an alternative to a base fuel for a purpose other than transportation if the base fuel is the most likely to be used for that purpose if the only available fuels options were base fuels and electricity.
The table below lists the types of equipment within each prescribed non-transportation purpose for which a non-base fuel should be reported under the LCFS and the corresponding energy effectiveness ratio (EER) set out in Schedule 2 of the Low Carbon Fuels (Technical) Regulation. Organizations must not report a non-base fuel for any equipment not listed for each category.
| Applicable Purpose | Equipment | Fuel Category | Energy Effectiveness Ratio (EER) |
|---|---|---|---|
| Use in cargo handling equipment (CHE) |
|
Diesel |
Electricity 2.5 Other fuels 0.9 |
| Use in ground support equipment (GSE) |
|
Diesel |
Electricity 2.5 Other fuels 0.9 |
| Use in Forklifts |
|
Diesel |
Electricity 3.9 Other fuels 0.9 |
Equipment used at marine terminals or airports should be reported with reasonable accuracy. Heavy-duty motor vehicles such as yard trucks should use the appropriate EER–for example, electric yard trucks should with the battery truck EER, which is 3.2. Heavy forklifts must be reported with the appropriate EER stated in Table 1. Any equipment classified differently must not be reported as CHE or GSE.
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.