Canada

The Government of Canada’s Renewable Fuels Regulations require fuel producers and importers to have an average renewable fuel content of at least 5% based on the volume of gasoline produced and imported, since December 15, 2010. In addition, the federal government is proposing a start date of July 1, 2011 for a renewable fuel content requirement in diesel and heating oil. In this case, it is an annual average of 2% renewable fuel content based on the volume of diesel fuel and heating oil produced and imported.

What fuels are and will be regulated?

The regulations apply to companies that produce or import finished fuels for use or sale in Canada.  Certain markets such as aviation gas, competition raceway fuel or fuel for scientific research are excluded. Gasoline and diesel fuel produced domestically or imported for transportation or for home-heating applications is subject to the regulation. Certain distillate markets such as jet fuel are also excluded.

Who is subject to the regulation?

The Regulations require diesel producers and importers to provide an annual average 2% renewable fuel content in diesel fuel and distillate heating oil based on their market share of Canada’s distillate pool (less exclusions for exempted markets such as jet fuel). Producers and importers who handle an annual volume less than 400,000 litres are exempt from meeting renewable fuel content requirements. The Regulations require gasoline producers and importers to provide an annual average renewable fuel content of at least 5% based on the volume of gasoline produced and imported.

Has a 5% ethanol blend been tested in Canada?

Most vehicles and equipment powered by gasoline engines are compatible with ethanol blends of up to 10% (E10). However, some older (pre-1980) vehicles and equipment and some two-stroke engines may require additional maintenance or modification before you fill them with ethanol-blended gasoline. Please check your owners’ manuals for information on the use of ethanol-blended gasoline with your vehicle or equipment. (Questions and Answers on the Federal Renewable Fuels Regulations, page 17)

Has a 2% biodiesel blend been tested in Canada?

The Regulation requiring an annual average 2% renewable content in diesel fuel and heating oil follows demonstrations testing the use of renewable diesel under the range of Canadian conditions. These demonstrations, summarized in the National Renewable Diesel Demonstration Initiative (NRDDI) website and other resources such as the Alberta Renewable Diesel Demonstration, and the BC Transit Blending Guide have provided sufficient information that a regulated requirement for an annual average 2% renewable content in diesel is technically feasible.

Where will fuels with renewable content be sold?

The federal Regulations apply across Canada for renewable content in both diesel and gasoline, except for Northern jurisdictions, such as the Yukon, the Northwest Territories and Nunavut, plus the northernmost parts of Quebec (above 60°N), and Newfoundland and Labrador are exempt from the ethanol requirements. The regulations do not require renewable fuel to be supplied in any particular region.

How will the Regulation affect consumers?

Fuel with renewable content will be subject to market pricing, just like regular fuel. Renewable fuels are also taxed like petroleum fuels. In its regulatory impact assessment statement (RIAS) and cost-benefit analysis of regulating renewable content in gasoline and biodiesel, Environment Canada concluded that any additional cost to consumers is not likely to be noticeable in the daily price fluctuations experienced in both markets (Canada Gazette Sept 2010; Canada Gazette April 2010). For more information about the Government of Canada’s Renewable Fuels Regulations: And for the Proposed Regulations Amending the Renewable Fuels Regulations.