British Columbia

The Government of British Columbia (BC) mandates the use of renewable content in gasoline and diesel under its Renewable and Low Carbon Fuel Requirements Regulation. The regulation requires fuel suppliers (both producers and importers) to supply a 5% annual average renewable content in gasoline as of January 1, 2010, and a 5% annual average renewable fuel in diesel, phased in over three years:
• 3% average starting January 1, 2010;
• 4% average starting January 1, 2011; and
• 5% average starting January 1, 2012.

Who is subject to the regulation?

All fuel producers and importers in British Columbia are considered to be fuel suppliers and are subject to the Regulation. The requirement is placed on both transportation and heating fuel, however, military and aviation uses are exempt. In 2011, suppliers of gasoline and diesel class fuels who provide less than 50 million litres are exempt, and from 2012 onward, the exemption limit will be 10 million litres. For more information about the small supplier exemption, see Information Bulletin RLCF-005.

What quality standard does blended diesel need to meet?

Biodiesel to be blended into diesel placed on the BC market for compliance purposes needs to meet the ASTM D6751 Standard Specification for Biodiesel Fuel Blend Stock (B100) for Middle Distillate Fuels in order to qualify as renewable content. Blends up to B5 must meet Can/CGSB 3.520.

What other requirements do diesel and gasoline have to meet under the Regulation?

The Lower Carbon Fuel component of the Regulation requires fuel suppliers to reduce the average carbon intensity of transportation fuels by 10% by 2020. Life cycle assessment will be used to determine the carbon intensity of transportation fuels. This means that the carbon emissions associated with the exploration and production of fossil fuels, the production of crops for biofuels, and the refining, transport and end use of fuel will be taken into account to calculate the carbon intensity of a fuel.

Where will the renewable content in fuel be sold and what blends will be in the pumps?

The Regulation applies to the entire province, but does not require renewable fuel to be supplied in any particular region. Fuel suppliers can choose where in the province they supply renewable fuel blends, as long as they meet the provincial annual average requirement for renewable fuel content. Gasoline fuel with a blend higher than 10% ethanol (E10) and diesel fuel with higher than 5% renewable content (B5) must be labeled as such at public pumps by retailers. (Source, www.empr.gov.bc.ca)

How will the regulation affect consumer costs?

Any increases to fuel costs will be minimal and are expected to disappear as more renewable fuels become available. The renewable content in blended fuels is taxed under the Motor Fuel Tax like gasoline and diesel. However the blended fuel also receives a 5% tax reduction of the BC carbon tax as the renewable portion helps to reduce greenhouse gas emissions. (Source, www.empr.gov.bc.ca)