Budget 2016 removed the generation of electricity exemption for diesel fuel used in or by a vehicle, including a conveyance attached to the vehicle, of any mode of transportation. This measure applied to fuel delivered or imported after June 2016, and to fuel delivered or imported before July 2016 that is used, or intended to be used, after June 2016.
The Canada Revenue Agency (CRA) is responsible for administering the refunds of the excise tax on diesel fuel. Following the release of Budget 2016, the CRA posted the following notice online, http://www.cra-arc.gc.ca/E/pub/et/etsl77/etsl77-e.pdf, which contains information on changes to the administration of the fuel excise tax exemptions and refunds. Specifically, it notes that the budget measures would eliminate excise tax exemptions or refunds currently available for the portion of fuel consumed in a vehicle, on or after July 1, 2016.