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ARCHIVED - Federal Renewable Fuels Regulation - Key Elements and Next Steps

Stakeholder Presentation

Toronto, Ontario
May 15, 2009

This presentation is also available in PDF (44 Kb)

The Government is following through on its December 2006 commitment

  • 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)

The regulation provides a national approach to requiring renewable content

  • 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

Regulatory compliance to be on a company basis

  • 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

The regulation is to be based on annual volumes

  • Not every litre of gasoline, diesel fuel and heating oil produced or imported would be required to contain renewable fuel

The regulation is to include a credit and trading system

  • 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

The regulation is to provide a number of flexibility mechanisms

  • 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.

There are to be some limited exemptions

  • 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

The regulation will not include:

  • 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.

Next Steps

  • 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