Diesel fuel in Ontario sits inside a stacked regulatory frame: federal sulphur and cleaner-fuels rules govern what can be sold; Ontario's Fuel Tax Act and its regulations govern the coloured-versus-clear distinction, the eligibility tests, and the penalty ladder; federal carbon-charge and excise-tax instruments alter the delivered cost. This page collects those frames in one reference, with each section absorbing a previously-standalone card verbatim. Sources, dates, and confidence labels carry through unchanged. Section anchors mirror the prior slugs.
Cold-weather diesel terms (Canadian context):
Ontario winter blends typically combine No. 2 ULSD with No. 1 (kerosene) at 10–30% ratio for SW Ontario climates; far north uses higher kerosene fractions. Cold-flow improver additives are an alternative or supplement.
Winterization adds cost (kerosene is ~$0.50/L premium average) and reduces BTU/L. B&J's seasonal switchover typically aligns with mid-October through mid-March in SW Ontario.
The current Canadian spec is CAN/CGSB-3.517-2025 (see reference-can-cgsb-3-517-2025). It distinguishes:
Operational margin question for SWO. Type B at CFPP −20 °C covers the January monthly mean for Waterloo/London (~−12 °C) but does not cover an extreme-minimum night (Waterloo −31.5 °C; London −31.7 °C — see reference-swo-winter-climate-design-temps). Operators with unheated outdoor yards through a polar-vortex event need either a treated blend, Type A, or anti-gel additive dosed at delivery.
Cold-flow improvers / paraffin inhibitors are typically alkyl methacrylate / maleic anhydride copolymers or EVA copolymers. They modify wax-crystal morphology so crystals stay small and pass the filter — they lower CFPP but typically do not lower cloud point. Combined anti-gel additives (Power Service, Howes, Cummins Diesel Kleen) blend cold-flow improver + wax-anti-settling agent + lubricity. Ontario operators commonly self-dose anti-gel even when their supplier has switched to winter blend — see Theme 4 in reference-trucker-forum-voice-of-customer-cardlock.
Ontario Regulation 663/20 — Cleaner Transportation Fuels — requires renewable content in gasoline and diesel sold in Ontario:
August 2025 amendments require 75% of diesel renewable content and 64% of gasoline renewable content to be Canadian-produced.
Premium-grade gasoline is exempt from the renewable content requirement (suppliers may continue to offer ethanol-free premium for marine/classic vehicles).
Confidence: Verified.
Effective April 1, 2025, the federal fuel charge under the Greenhouse Gas Pollution Pricing Act (GGPPA), Part 1, Schedule 2, was set to zero (SOR/2025-107, Canada Gazette Part II, Vol. 159, No. 2, March 15, 2025).
Verbatim from Canada Gazette: "the Amending Regulations will cease the application of the fuel charge, starting on April 1, 2025, by setting the applicable charge rates in Schedule 2 of the Greenhouse Gas Pollution Pricing Act to zero."
Propane charge history (CRA Fuel Charge Rates table): 12.38¢/L from April 1, 2024 to March 31, 2025; 0¢/L from April 1, 2025 onward.
Combined effect with Ontario: Paired with the Ontario Gasoline Tax Act propane levy elimination on July 1, 2025 (see reg-gasoline-tax-act-ontario), the federal and provincial reductions removed a combined 16.7¢/L from Ontario propane invoices between April and July 2025.
Stationary-vs-road-vehicle clarification. The 12.38¢/L federal fuel-charge removal applied to all propane invoices — stationary grain-dryer, livestock-barn, greenhouse-heating, and residential propane included. The "combined 16.7¢/L" framing above applies to road-vehicle propane only: the Ontario Gasoline Tax Act propane levy historically applied only to licensed road vehicles (auto-propane, interjurisdictional carriers) — stationary propane was already non-taxable under the GTA before July 1, 2025. A SW Ontario operator drying grain (see op-grain-drying-propane-math) saw an effective ~12.4¢/L drop on their invoice between April 2024 and April 2025, entirely from the federal change; the July 2025 Ontario change did not affect their per-litre price.
GGPPA Section 36 greenhouse rebate — now moot. The 80% greenhouse fuel-charge rebate under GGPPA s. 36 rebated a charge that is now zero. The mechanism remains in statute but rebates a zero-rate charge.
HST treatment unchanged. HST at 13% still applies on propane delivered for greenhouse or farm use; recoverable as input tax credit for HST-registered farming corporations.
Watchpoint — politically reversible. Department of Finance Canada published proposed legislative amendments in May 2025 to permanently repeal Part 1 of the GGPPA in phases — April 2025 charging provisions repealed, October 2025 rebate provisions repealed, November 2025 registration repealed, April 2035 full wind-down. A future government could reintroduce a consumer carbon charge. Treat the current zero-rate as politically reversible, not permanent.
Site-copy implication. Any current or legacy site copy referencing carbon-tax line items on heating oil, propane, gasoline, or diesel is obsolete. All B&J post-April-2025 invoices show zero federal fuel charge.
Sources: SOR/2025-107; CRA Fuel Charge Rates table; Canadian Propane Association press release May 16, 2025; Department of Finance Canada news release March 15, 2025; Canada Gazette Part II, Vol. 159, No. 2, March 15, 2025; OMAFRA Publication 24-005 (March 2024) for stationary-use grain-drying context.
Federal excise tax on gasoline and diesel is temporarily suspended from April 20, 2026 to September 7, 2026 (announced by Prime Minister Carney April 14, 2026; legislative amendments to the Excise Tax Act). Normal rates (10¢/L gasoline; 4¢/L diesel) resume Sept 8, 2026.
Site copy referencing pump prices should not bake in 0¢ federal excise as permanent.
Absent other movement in the rack or other layers, reinstatement pushes the SWO diesel pump price up by ~4.5 ¢/L on September 8, 2026 (4 ¢/L excise × 1.13 HST). The clear-diesel page should carry this as a forward-dated footnote rather than as live copy. See op-clear-diesel-price-decomposition for the full worked illustration.
Department of Finance Canada announces an extension or makes the suspension permanent; or actual reinstatement on September 8, 2026.
R.R.O. 1990, Regulation 464 ("General") is the principal regulation under the Ontario Fuel Tax Act, R.S.O. 1990, c. F.35. It is not "O. Reg. 649" — that citation is incorrect and should be corrected wherever it appears on the agriculture page. The regulation is published in English only, consolidated to May 1, 2014, with the most recent amendment by O. Reg. 124/14 (filed May 1, 2014; deemed in force April 1, 2014).
Reg. 464 prescribes the operational rules sitting under the Fuel Tax Act, including: definitions of waste-derived fuel and reprocessed fuel (s. 1); fuel acquisition permits and registered consumers (s. 2); the prescribed purposes for which clear fuel may be acquired tax-exempt under a fuel acquisition permit (s. 2(1)); dyer registration, dye-point concentration ranges, and import restrictions on coloured fuel (s. 1.1 and the dye-injector compliance framework operationalized through Ministry bulletins); and IFTA tax-report integration (cross-referenced in O. Reg. 22/97, s. 8).
The substantive eligibility rule for coloured fuel lives in the Fuel Tax Act (s. 2(7)), not in Reg. 464. Reg. 464 prescribes the implementing machinery — dye concentration (170 to 190 ppm for use in Ontario or Quebec, per the Minister's prior-written-consent bulletin), permit forms, fuel-acquisition-permit prescribed uses, and registered-consumer mechanics. Tank/dispenser labelling is governed by the labels-and-tags scheme issued by the Minister of Finance under the Act and Reg. 464 (the Ministry "issues labels and tags … to be used by any person who owns or operates any equipment used to colour, store, transport or deliver coloured fuel"); neither the Act nor Reg. 464 prescribes a label colour — see op-tank-labelling-colour-scheme.
Fines and the penalty ladder are set by the Fuel Tax Act sections (3.9, 4.19, 28, 29) and by Provincial Offences Act set-fine schedules — not by Reg. 464 — and are summarized in op-dyed-diesel-eligibility-recordkeeping.
Confidence: verified (primary source confirmed 2026-05-13).
Confidence: Verified.
Ontario Gasoline Tax Act, R.S.O. 1990, c. G.5. Governs Ontario gasoline tax (currently 9¢/L since July 1, 2025) and aviation fuel tax (6.7¢/L; 2.7¢/L Northern Ontario zone).
Ontario propane levy eliminated. Ontario propane is no longer taxed under the Gasoline Tax Act as of July 1, 2025 (interjurisdictional carriers excepted). The 4.3¢/L propane levy was eliminated under 2025 Ontario Budget legislation (Bill 24, Plan to Protect Ontario Act (Budget Measures), 2025).
Combined effect with federal carbon charge. Paired with the federal fuel charge zero-rating on April 1, 2025 (see reg-federal-carbon-charge-zero-2025), the federal and provincial reductions removed a combined 16.7¢/L from Ontario propane invoices between April and July 2025 — 12.38¢/L federal plus 4.3¢/L provincial. The combined reduction is the single largest line-item change on Ontario propane invoices in recent years.
Stationary-vs-road-vehicle clarification. Historically, the Ontario Gasoline Tax Act propane levy applied only to propane used in licensed road vehicles (auto-propane, propane-fueled commercial vehicles, interjurisdictional carriers). Stationary propane for grain drying, livestock barn heating, greenhouse heating, and residential heating was already non-taxable under the GTA before July 1, 2025. The direct cost savings for stationary users from the July 2025 elimination is zero — the benefit is administrative (fuel distributors no longer maintain dual-track propane bookkeeping). The "combined 16.7¢/L reduction" framing above is correct for road-vehicle propane but does not apply to stationary use; a SW Ontario grain-drying operator (see op-grain-drying-propane-math) saw only the ~12.4¢/L federal-side reduction.
HST treatment unchanged. HST at 13% still applies on propane delivered for greenhouse, agricultural, or commercial use; recoverable as input tax credit for HST-registered corporations.
Site-copy implication. Any legacy site copy referencing an Ontario propane tax line item is obsolete for non-interjurisdictional-carrier use.
Sources: Ontario Gasoline Tax Act, R.S.O. 1990, c. G.5; Ontario Ministry of Finance; 2025 Ontario Budget; Bill 24, Plan to Protect Ontario Act (Budget Measures), 2025; Canadian Propane Association press release May 16, 2025.
Confidence: Verified.
Under Greenhouse Gas Pollution Pricing Act (GGPPA) Section 36 and the Fuel Charge Regulations, an 80% point-of-sale rebate on the federal fuel charge for marketable natural gas and propane was available to qualified greenhouse operators.
Scope (verbatim, summarized in RSM Canada / 360 Energy briefings): "An 80% point-of-sale rebate is available for qualified operators who purchase marketable natural gas or propane and who follow specified procedures in these jurisdictions. This relieving provision applies to greenhouses where all, or most of the facility is used to grow vegetables, fruits, bedding plants, flowers, ornamental plants, tree seedlings, medicinal plants or other plants."
Why this entry exists. With the federal fuel charge set to zero on April 1, 2025 under SOR/2025-107 (see reg-federal-carbon-charge-zero-2025), the 80% rebate is functionally moot — the mechanism remains in statute but rebates a zero-rate charge. The greenhouse exemption certificate remains on the CRA website for completeness; it no longer changes the invoice.
CRA wind-down. Department of Finance Canada published proposed legislative amendments in May 2025 to permanently repeal Part 1 of the GGPPA in phases — October 2025 rebate provisions repealed, November 2025 registration repealed, April 2035 full wind-down. A future government could reintroduce a consumer carbon charge; greenhouse operators should treat the current zero-rate as politically reversible, not permanent.
Historical relevance. Operators reviewing pre-April-2025 invoices or audit files will see the 80% rebate applied as a line credit. The mechanism is the reason greenhouse operators paid the federal carbon charge at an effective ~2.5¢/L on propane in 2024 rather than the full 12.38¢/L. With the underlying charge now zero, all rate calculations collapse.
Failed extension — Bill C-234. Bill C-234 (44th Parliament, 1st Session) sought to extend the on-farm carbon fuel charge exemption to natural gas and propane used for grain drying and barn/greenhouse heating. The bill stalled after a December 2023 Senate amendment removed greenhouse and barn heating from scope, leaving only grain drying. With the fuel charge zeroed April 1, 2025, the bill became moot in practice. See reg-l402-fuel-charge-exemption-historical for the parallel L402 mechanism (gasoline and light fuel oil only, never propane).
Cross-references: reg-federal-carbon-charge-zero-2025, reg-l402-fuel-charge-exemption-historical, reg-gasoline-tax-act-ontario (Ontario provincial side).
Sources: Greenhouse Gas Pollution Pricing Act, Part 1, Schedule 2, Section 36; Fuel Charge Regulations; SOR/2025-107 (Canada Gazette Part II, Vol. 159, No. 2, March 15, 2025); RSM Canada / 360 Energy GGPPA summaries; CRA Notice FCN16 "Removal of the fuel charge" (2025); Bill C-234 parliamentary record (44th Parliament, 1st Session).
Confidence: Verified.
Form L402 ("Fuel Charge Exemption Certificate for Farmers") was used 2019–2025 to claim federal fuel-charge exemption on gasoline and light fuel oil for eligible farming activities under the Greenhouse Gas Pollution Pricing Act.
Critical scope note. L402 never applied to natural gas or propane — the omission was the political grievance behind Bill C-234, which sought to extend the exemption to those fuels. With the federal fuel charge set to zero on April 1, 2025 under SOR/2025-107 (see reg-federal-carbon-charge-zero-2025), L402 is moot prospectively.
Bill C-234 history. Bill C-234 (44th Parliament, 1st Session) sought to extend the on-farm carbon fuel charge exemption to natural gas and propane used for grain drying and barn/greenhouse heating. The bill stalled after a December 2023 Senate amendment that removed greenhouse and barn heating from scope, leaving only grain drying. The Senate amendment was the proximate reason the bill never became law in its original form; the federal fuel charge zeroing on April 1, 2025 then made the entire question moot. For the greenhouse-specific GGPPA s.36 80% rebate (the parallel mechanism that did apply to greenhouse propane and is now also moot), see reg-greenhouse-80-percent-carbon-rebate-historical.
CRA wind-down. CRA cancels federal fuel-charge (FFC) registrations by November 1, 2025. The Return of Fuel Charge Proceeds to Farmers Tax Credit final year is 2024–25.
Why this entry exists. Operators reviewing old invoices, audit files, or pre-2025 agronomy literature will encounter L402 references. The form retains historical relevance for reconciling pre-April-2025 records. It is not a forward-looking instrument.
Sources: Canada Revenue Agency Notice FCN16 "Removal of the fuel charge" (2025); CRA Fuel Charge Rates table; Greenhouse Gas Pollution Pricing Act, Part 1, Schedule 2; Bill C-234 parliamentary record (44th Parliament, 1st Session); Senate of Canada December 2023 amendment record.
Spark-ignition motor fuel — Regular 87, Mid-grade 89, or Premium 91 — sold for licensed vehicles, small engines, and some agricultural/marine uses. As a wholesale marketer, B&J typically delivers gasoline in bulk to cardlock sites, retail stations, fleet tanks, and farm storage rather than at retail forecourts. Subject to Ontario Gasoline Tax (9¢/L) plus federal excise (10¢/L, suspended Apr 20–Sept 7 2026) and HST.
Diesel fuel in Ontario sits inside a stacked regulatory frame: federal sulphur and cleaner-fuels rules govern what can be sold; Ontario's Fuel Tax Act and its regulations govern the coloured-versus-clear distinction, the eligibility tests, and the penalty ladder; federal carbon-charge and excise-tax instruments alter the delivered cost. This page collects those frames in one reference, with each section absorbing a previously-standalone card verbatim. Sources, dates, and confidence labels carry through unchanged. Section anchors mirror the prior slugs.
Cold-weather diesel terms (Canadian context):
Ontario winter blends typically combine No. 2 ULSD with No. 1 (kerosene) at 10–30% ratio for SW Ontario climates; far north uses higher kerosene fractions. Cold-flow improver additives are an alternative or supplement.
Winterization adds cost (kerosene is ~$0.50/L premium average) and reduces BTU/L. B&J's seasonal switchover typically aligns with mid-October through mid-March in SW Ontario.
The current Canadian spec is CAN/CGSB-3.517-2025 (see reference-can-cgsb-3-517-2025). It distinguishes:
Operational margin question for SWO. Type B at CFPP −20 °C covers the January monthly mean for Waterloo/London (~−12 °C) but does not cover an extreme-minimum night (Waterloo −31.5 °C; London −31.7 °C — see reference-swo-winter-climate-design-temps). Operators with unheated outdoor yards through a polar-vortex event need either a treated blend, Type A, or anti-gel additive dosed at delivery.
Cold-flow improvers / paraffin inhibitors are typically alkyl methacrylate / maleic anhydride copolymers or EVA copolymers. They modify wax-crystal morphology so crystals stay small and pass the filter — they lower CFPP but typically do not lower cloud point. Combined anti-gel additives (Power Service, Howes, Cummins Diesel Kleen) blend cold-flow improver + wax-anti-settling agent + lubricity. Ontario operators commonly self-dose anti-gel even when their supplier has switched to winter blend — see Theme 4 in reference-trucker-forum-voice-of-customer-cardlock.
Ontario Regulation 663/20 — Cleaner Transportation Fuels — requires renewable content in gasoline and diesel sold in Ontario:
August 2025 amendments require 75% of diesel renewable content and 64% of gasoline renewable content to be Canadian-produced.
Premium-grade gasoline is exempt from the renewable content requirement (suppliers may continue to offer ethanol-free premium for marine/classic vehicles).
Confidence: Verified.
Effective April 1, 2025, the federal fuel charge under the Greenhouse Gas Pollution Pricing Act (GGPPA), Part 1, Schedule 2, was set to zero (SOR/2025-107, Canada Gazette Part II, Vol. 159, No. 2, March 15, 2025).
Verbatim from Canada Gazette: "the Amending Regulations will cease the application of the fuel charge, starting on April 1, 2025, by setting the applicable charge rates in Schedule 2 of the Greenhouse Gas Pollution Pricing Act to zero."
Propane charge history (CRA Fuel Charge Rates table): 12.38¢/L from April 1, 2024 to March 31, 2025; 0¢/L from April 1, 2025 onward.
Combined effect with Ontario: Paired with the Ontario Gasoline Tax Act propane levy elimination on July 1, 2025 (see reg-gasoline-tax-act-ontario), the federal and provincial reductions removed a combined 16.7¢/L from Ontario propane invoices between April and July 2025.
Stationary-vs-road-vehicle clarification. The 12.38¢/L federal fuel-charge removal applied to all propane invoices — stationary grain-dryer, livestock-barn, greenhouse-heating, and residential propane included. The "combined 16.7¢/L" framing above applies to road-vehicle propane only: the Ontario Gasoline Tax Act propane levy historically applied only to licensed road vehicles (auto-propane, interjurisdictional carriers) — stationary propane was already non-taxable under the GTA before July 1, 2025. A SW Ontario operator drying grain (see op-grain-drying-propane-math) saw an effective ~12.4¢/L drop on their invoice between April 2024 and April 2025, entirely from the federal change; the July 2025 Ontario change did not affect their per-litre price.
GGPPA Section 36 greenhouse rebate — now moot. The 80% greenhouse fuel-charge rebate under GGPPA s. 36 rebated a charge that is now zero. The mechanism remains in statute but rebates a zero-rate charge.
HST treatment unchanged. HST at 13% still applies on propane delivered for greenhouse or farm use; recoverable as input tax credit for HST-registered farming corporations.
Watchpoint — politically reversible. Department of Finance Canada published proposed legislative amendments in May 2025 to permanently repeal Part 1 of the GGPPA in phases — April 2025 charging provisions repealed, October 2025 rebate provisions repealed, November 2025 registration repealed, April 2035 full wind-down. A future government could reintroduce a consumer carbon charge. Treat the current zero-rate as politically reversible, not permanent.
Site-copy implication. Any current or legacy site copy referencing carbon-tax line items on heating oil, propane, gasoline, or diesel is obsolete. All B&J post-April-2025 invoices show zero federal fuel charge.
Sources: SOR/2025-107; CRA Fuel Charge Rates table; Canadian Propane Association press release May 16, 2025; Department of Finance Canada news release March 15, 2025; Canada Gazette Part II, Vol. 159, No. 2, March 15, 2025; OMAFRA Publication 24-005 (March 2024) for stationary-use grain-drying context.
Federal excise tax on gasoline and diesel is temporarily suspended from April 20, 2026 to September 7, 2026 (announced by Prime Minister Carney April 14, 2026; legislative amendments to the Excise Tax Act). Normal rates (10¢/L gasoline; 4¢/L diesel) resume Sept 8, 2026.
Site copy referencing pump prices should not bake in 0¢ federal excise as permanent.
Absent other movement in the rack or other layers, reinstatement pushes the SWO diesel pump price up by ~4.5 ¢/L on September 8, 2026 (4 ¢/L excise × 1.13 HST). The clear-diesel page should carry this as a forward-dated footnote rather than as live copy. See op-clear-diesel-price-decomposition for the full worked illustration.
Department of Finance Canada announces an extension or makes the suspension permanent; or actual reinstatement on September 8, 2026.
R.R.O. 1990, Regulation 464 ("General") is the principal regulation under the Ontario Fuel Tax Act, R.S.O. 1990, c. F.35. It is not "O. Reg. 649" — that citation is incorrect and should be corrected wherever it appears on the agriculture page. The regulation is published in English only, consolidated to May 1, 2014, with the most recent amendment by O. Reg. 124/14 (filed May 1, 2014; deemed in force April 1, 2014).
Reg. 464 prescribes the operational rules sitting under the Fuel Tax Act, including: definitions of waste-derived fuel and reprocessed fuel (s. 1); fuel acquisition permits and registered consumers (s. 2); the prescribed purposes for which clear fuel may be acquired tax-exempt under a fuel acquisition permit (s. 2(1)); dyer registration, dye-point concentration ranges, and import restrictions on coloured fuel (s. 1.1 and the dye-injector compliance framework operationalized through Ministry bulletins); and IFTA tax-report integration (cross-referenced in O. Reg. 22/97, s. 8).
The substantive eligibility rule for coloured fuel lives in the Fuel Tax Act (s. 2(7)), not in Reg. 464. Reg. 464 prescribes the implementing machinery — dye concentration (170 to 190 ppm for use in Ontario or Quebec, per the Minister's prior-written-consent bulletin), permit forms, fuel-acquisition-permit prescribed uses, and registered-consumer mechanics. Tank/dispenser labelling is governed by the labels-and-tags scheme issued by the Minister of Finance under the Act and Reg. 464 (the Ministry "issues labels and tags … to be used by any person who owns or operates any equipment used to colour, store, transport or deliver coloured fuel"); neither the Act nor Reg. 464 prescribes a label colour — see op-tank-labelling-colour-scheme.
Fines and the penalty ladder are set by the Fuel Tax Act sections (3.9, 4.19, 28, 29) and by Provincial Offences Act set-fine schedules — not by Reg. 464 — and are summarized in op-dyed-diesel-eligibility-recordkeeping.
Confidence: verified (primary source confirmed 2026-05-13).
Confidence: Verified.
Ontario Gasoline Tax Act, R.S.O. 1990, c. G.5. Governs Ontario gasoline tax (currently 9¢/L since July 1, 2025) and aviation fuel tax (6.7¢/L; 2.7¢/L Northern Ontario zone).
Ontario propane levy eliminated. Ontario propane is no longer taxed under the Gasoline Tax Act as of July 1, 2025 (interjurisdictional carriers excepted). The 4.3¢/L propane levy was eliminated under 2025 Ontario Budget legislation (Bill 24, Plan to Protect Ontario Act (Budget Measures), 2025).
Combined effect with federal carbon charge. Paired with the federal fuel charge zero-rating on April 1, 2025 (see reg-federal-carbon-charge-zero-2025), the federal and provincial reductions removed a combined 16.7¢/L from Ontario propane invoices between April and July 2025 — 12.38¢/L federal plus 4.3¢/L provincial. The combined reduction is the single largest line-item change on Ontario propane invoices in recent years.
Stationary-vs-road-vehicle clarification. Historically, the Ontario Gasoline Tax Act propane levy applied only to propane used in licensed road vehicles (auto-propane, propane-fueled commercial vehicles, interjurisdictional carriers). Stationary propane for grain drying, livestock barn heating, greenhouse heating, and residential heating was already non-taxable under the GTA before July 1, 2025. The direct cost savings for stationary users from the July 2025 elimination is zero — the benefit is administrative (fuel distributors no longer maintain dual-track propane bookkeeping). The "combined 16.7¢/L reduction" framing above is correct for road-vehicle propane but does not apply to stationary use; a SW Ontario grain-drying operator (see op-grain-drying-propane-math) saw only the ~12.4¢/L federal-side reduction.
HST treatment unchanged. HST at 13% still applies on propane delivered for greenhouse, agricultural, or commercial use; recoverable as input tax credit for HST-registered corporations.
Site-copy implication. Any legacy site copy referencing an Ontario propane tax line item is obsolete for non-interjurisdictional-carrier use.
Sources: Ontario Gasoline Tax Act, R.S.O. 1990, c. G.5; Ontario Ministry of Finance; 2025 Ontario Budget; Bill 24, Plan to Protect Ontario Act (Budget Measures), 2025; Canadian Propane Association press release May 16, 2025.
Confidence: Verified.
Under Greenhouse Gas Pollution Pricing Act (GGPPA) Section 36 and the Fuel Charge Regulations, an 80% point-of-sale rebate on the federal fuel charge for marketable natural gas and propane was available to qualified greenhouse operators.
Scope (verbatim, summarized in RSM Canada / 360 Energy briefings): "An 80% point-of-sale rebate is available for qualified operators who purchase marketable natural gas or propane and who follow specified procedures in these jurisdictions. This relieving provision applies to greenhouses where all, or most of the facility is used to grow vegetables, fruits, bedding plants, flowers, ornamental plants, tree seedlings, medicinal plants or other plants."
Why this entry exists. With the federal fuel charge set to zero on April 1, 2025 under SOR/2025-107 (see reg-federal-carbon-charge-zero-2025), the 80% rebate is functionally moot — the mechanism remains in statute but rebates a zero-rate charge. The greenhouse exemption certificate remains on the CRA website for completeness; it no longer changes the invoice.
CRA wind-down. Department of Finance Canada published proposed legislative amendments in May 2025 to permanently repeal Part 1 of the GGPPA in phases — October 2025 rebate provisions repealed, November 2025 registration repealed, April 2035 full wind-down. A future government could reintroduce a consumer carbon charge; greenhouse operators should treat the current zero-rate as politically reversible, not permanent.
Historical relevance. Operators reviewing pre-April-2025 invoices or audit files will see the 80% rebate applied as a line credit. The mechanism is the reason greenhouse operators paid the federal carbon charge at an effective ~2.5¢/L on propane in 2024 rather than the full 12.38¢/L. With the underlying charge now zero, all rate calculations collapse.
Failed extension — Bill C-234. Bill C-234 (44th Parliament, 1st Session) sought to extend the on-farm carbon fuel charge exemption to natural gas and propane used for grain drying and barn/greenhouse heating. The bill stalled after a December 2023 Senate amendment removed greenhouse and barn heating from scope, leaving only grain drying. With the fuel charge zeroed April 1, 2025, the bill became moot in practice. See reg-l402-fuel-charge-exemption-historical for the parallel L402 mechanism (gasoline and light fuel oil only, never propane).
Cross-references: reg-federal-carbon-charge-zero-2025, reg-l402-fuel-charge-exemption-historical, reg-gasoline-tax-act-ontario (Ontario provincial side).
Sources: Greenhouse Gas Pollution Pricing Act, Part 1, Schedule 2, Section 36; Fuel Charge Regulations; SOR/2025-107 (Canada Gazette Part II, Vol. 159, No. 2, March 15, 2025); RSM Canada / 360 Energy GGPPA summaries; CRA Notice FCN16 "Removal of the fuel charge" (2025); Bill C-234 parliamentary record (44th Parliament, 1st Session).
Confidence: Verified.
Form L402 ("Fuel Charge Exemption Certificate for Farmers") was used 2019–2025 to claim federal fuel-charge exemption on gasoline and light fuel oil for eligible farming activities under the Greenhouse Gas Pollution Pricing Act.
Critical scope note. L402 never applied to natural gas or propane — the omission was the political grievance behind Bill C-234, which sought to extend the exemption to those fuels. With the federal fuel charge set to zero on April 1, 2025 under SOR/2025-107 (see reg-federal-carbon-charge-zero-2025), L402 is moot prospectively.
Bill C-234 history. Bill C-234 (44th Parliament, 1st Session) sought to extend the on-farm carbon fuel charge exemption to natural gas and propane used for grain drying and barn/greenhouse heating. The bill stalled after a December 2023 Senate amendment that removed greenhouse and barn heating from scope, leaving only grain drying. The Senate amendment was the proximate reason the bill never became law in its original form; the federal fuel charge zeroing on April 1, 2025 then made the entire question moot. For the greenhouse-specific GGPPA s.36 80% rebate (the parallel mechanism that did apply to greenhouse propane and is now also moot), see reg-greenhouse-80-percent-carbon-rebate-historical.
CRA wind-down. CRA cancels federal fuel-charge (FFC) registrations by November 1, 2025. The Return of Fuel Charge Proceeds to Farmers Tax Credit final year is 2024–25.
Why this entry exists. Operators reviewing old invoices, audit files, or pre-2025 agronomy literature will encounter L402 references. The form retains historical relevance for reconciling pre-April-2025 records. It is not a forward-looking instrument.
Sources: Canada Revenue Agency Notice FCN16 "Removal of the fuel charge" (2025); CRA Fuel Charge Rates table; Greenhouse Gas Pollution Pricing Act, Part 1, Schedule 2; Bill C-234 parliamentary record (44th Parliament, 1st Session); Senate of Canada December 2023 amendment record.
Spark-ignition motor fuel — Regular 87, Mid-grade 89, or Premium 91 — sold for licensed vehicles, small engines, and some agricultural/marine uses. As a wholesale marketer, B&J typically delivers gasoline in bulk to cardlock sites, retail stations, fleet tanks, and farm storage rather than at retail forecourts. Subject to Ontario Gasoline Tax (9¢/L) plus federal excise (10¢/L, suspended Apr 20–Sept 7 2026) and HST.