Canada requires 2% biofuel content in diesel fuel and heating oil as of July 1

July 4, 2011

Amendments to the Renewable Fuels Regulations under the Canadian Environmental Protection Act will set a coming-into force date of July 1, 2011 for the requirement that diesel fuel and heating distillate oil contain on average 2% renewable fuel by volume.

As we reported earlier here, this requirement will only apply to primary suppliers who produce or import more than 400 cubic meters of diesel fuel and/or heating distillate oil per year.

The amendments will provide a permanent exemption for diesel fuel and heating distillate oil sold in or delivered to Newfoundland and Labrador to account for logistical challenges in blending biodiesel in that region.  As well, temporary exemptions will be provided until December 31, 2012 for diesel fuel and heating distillate oil sold in or delivered to Quebec south of 60 degrees North, New Brunswick, Nova Scotia and Prince Edward Island, giving time to refiners to install biodiesel blending infrastructure.

Canada's Minister of the Environment, Peter Kent, stated that the renewable fuel content requirements will help reduce greenhouse gas emissions by approximately four megatonnes per year.

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