Federal Renewable Fuels Regulation - Key Elements and Next Steps
Toronto, Ontario
May 15, 2009
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- In December 2006 the Government published the Notice of intent to develop a federal regulation requiring renewable fuels which announced that the regulation would require petroleum fuel producers and importers to have:
- An average renewable fuel content of at least 5% based on the volume of gasoline, commencing in 2010
- An average 2% renewable fuel content in diesel fuel and heating oil, upon successful demonstration of renewable diesel fuel use under the range of Canadian conditions
- Not in place for 2010, but intended to come into effect by no later than 2012
- Regulation to be developed under the Canadian Environmental Protection Act, 1999 (CEPA, 1999)
- General approach based on U.S. Environmental Protection Agency Renewable Fuel Standard
- With some simplifications
- Timing for the 5% requirement based on gasoline is the following:
- Requirement will be effective September 2010
- Draft Regulation targeted for publication in the Canada Gazette, Part I in December 2009
- Final Regulation targeted for publication in the Canada Gazette, Part II in June 2010
- Implement 2% requirement in diesel fuel and heating oil by 2011 or earlier subject to technical feasibility
- Will require an amendment to the regulation
- Required renewable fuel content to be based on the volumes of gasoline, diesel fuel and heating oil that a company produces or imports
- Regulation not to apply to individual facilities or provinces of import
- Not every litre of gasoline, diesel fuel and heating oil produced or imported would be required to contain renewable fuel
- Companies may acquire credits from other parties in lieu of having renewable fuel content in their gasoline and distillate pools
- Credits may be created by:
- Blending renewable fuel into petroleum fuel
- Importing fuel with renewable content
- Producing fuel from bio-crude
- A broad range of liquid renewable fuels may be used to meet the requirements; not limited to ethanol and biodiesel.
- The 5% requirement for gasoline may be met by renewable fuel in gasoline, diesel or other liquid petroleum fuels
- The 2% requirement for diesel fuel and heating oil would have to be met through the use of renewable fuel in those products
- There is to be no regional requirement
Possible provisions to address regional implementation challenges will be considered through the development of the regulations.
- Companies producing or importing less than 400 m3 of fuel per year
- Fuel for use in competition vehicles, aviation applications and for scientific research
- Fuel for use in the Yukon, Northwest Territories and Nunavut
- Fuel quality specifications
- Differential weightings (biases) assigned to renewable fuels
- Differential weightings may be considered in the future once there is a better knowledge base on the life cycle analysis of various fuels.
- Drafting the regulation
- Targeting the publication of proposed regulation in the Canada Gazette, Part I in December 2009
- Consulting on the proposed regulation
- Targeting publication of final regulation in the Canada Gazette, Part II in June 2010