Canada’s Environment Minister Announces Start Date for Biodiesel Requirement

Canada’s Environment Minister, the Honourable Peter Kent, today announced that the Government is moving ahead with the 2 percent renewable content requirement in diesel fuel and heating oil.

“Our Government will continue to ensure that protecting our environment, while balancing economic growth and prosperity remains our priority”, said Minister Kent. “The steps we are taking on renewable fuels, combined with those of the provinces, will ensure a volume of renewable fuel that will reduce annual greenhouse gas emissions by about four megatonnes a year—the equivalent of removing one million vehicles from the road.”

“This requirement will further strengthen the market for renewable fuels, which is good news for our farmers and the environment,” said the Honorable Gerry Ritz, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board. “Increased demand for feed stocks like canola will ensure an even stronger bottom line for farmers and a stronger agricultural sector.”

The regulatory amendment to the Renewable Fuels Regulations will be published in the Canada Gazette, Part II, in the coming weeks. The coming-into-force date for the requirement is July 1, 2011. A non official, pre-published version of the regulations is available at http://www.ec.gc.ca/energie-energy/default.asp?lang=En&n=0AA71ED2-1.

The Government has carefully considered all the comments received on the proposal and is balancing possible competitiveness impacts on eastern refiners with the need to minimize delays to support the Canadian biodiesel industry in moving forward. 

A permanent exemption is being provided for renewable content in diesel fuel and heating distillate oil sold in Newfoundland and Labrador to address the logistical challenges of blending biodiesel in this region. Temporary exemptions for renewable content in diesel fuel and heating distillate oil sold in Quebec and all Atlantic Provinces are being provided until December 31, 2012. This 18-month period will allow eastern refiners time to install biodiesel blending infrastructure.

This is an important initiative in support of our commitment to reduce Canada’s total greenhouse gas emissions by 17 percent from 2005 levels by 2020. It is also further action the Government of Canada has taken in the transportation sector. In addition, the Government of Canada has finalized vehicle tailpipe emissions regulations, and is working to do the same for heavy-duty vehicles.

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