The OilSpot News by Telvent DTN
Monday, July 11, 2011 VOLUME 10 ISSUE 461  

Canada begins 2% Renewable Fuel Mandate in Diesel, Heating Oil

Canada moved forward with the 2% renewable content requirement in diesel fuel and heating oil effective July 1, according to a news release from Environment Canada.

“Our Government will continue to ensure that protecting our environment, while balancing economic growth and prosperity remains our priority,” said Environment Minister Peter 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.”

According to the release, the regulatory amendment to the Renewable Fuels Regulations will be published in the Canada Gazette, Part II, in the coming weeks.

A permanent exemption is being provided for renewable content in diesel fuel and heating oil sold in Newfoundland and Labrador to address the logistical challenges of blending biodiesel in that region. Temporary exemptions for renewable content in diesel fuel and heating distillate oil sold in Quebec and all Atlantic Provinces are being provided until Dec. 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% from 2005 levels by 2020,” the release read. “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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