As I previously said, the measure establishes an excise tax refund regime for purchased fuels under which a vendor may apply for a refund where a purchaser will use excise tax-paid diesel fuel to generate electricity.
To date, only licensed distributors and producers could apply for a refund when they sold diesel to a final consumer. Unlicensed vendors did not have access to this mechanism and therefore were required to sell diesel fuel to final consumers with the tax included, even if the diesel was to be used to generate electricity, an activity generally excluded from the taxation regime.
If certain conditions are met, this measure therefore permits unlicensed vendors to apply for their own refunds so the final consumer can have access to diesel fuel without the excise tax being included.
This is a technical measure to ensure a degree of fairness among fuel distributors in Canada.