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Canada adopts final Renewable Fuel Regulations

2 September 2010

Canada has finalized the federal Renewable Fuels Regulations. The legislation was published yesterday in the Canada Gazette, Part II.

The Regulations require gasoline producers and importers to have an annual average renewable fuel content of at least 5% based on the volume of gasoline produced and imported. The 5% requirement will come into force on December 15, 2010, with the first compliance period from December 15, 2010 to December 31, 2011.

The Regulations also include provisions requiring an average 2% renewable fuel content in diesel fuel and heating distillate oil, but do not specify a coming into force date for this requirement. Natural Resources Canada is assessing the technical feasibility of renewable diesel fuel use under a range of Canadian conditions through their National Renewable Diesel Demonstration Initiative (NRDDI), and results are expected to be released this fall.

The provisions of the Regulations also include a trading system and administrative, compliance and enforcement provisions such as record keeping and reporting. The administrative requirements apply to petroleum fuel producers and renewable fuel producers, importers, blenders and sellers of fuels for export.

The Renewable Fuels Regulations are a key element of the Government’s of Canada Renewable Fuels Strategy and are a key initiative in support of the Government’s commitment to reduce Canada’s total greenhouse gas emissions by 17% from 2005 levels by 2020. The Regulations are estimated to result in an incremental reduction of GHG emissions of about 1 MT CO2e per year over and above the reductions attributable to existing provincial requirements already in place.

Environment Canada intends to hold information sessions on the Regulations in September. Those interested in attending any of these sessions should contact Stéphanie Martineau.

Source: Environment Canada