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Environment Canada Considers New Fuel Standards

Environment and Climate Change Canada (ECCC) is looking at updating the clean fuels regulations in its Canadian Environmental Protection Act (1999). Of course, the purpose is to reduce Canada’s greenhouse gas (GHG) emissions through the adoption of lower carbon fuels and related technologies. The bureaucrats intend to consult with the provinces and territories, Indigenous Peoples, and other stakeholders.

The regulation is intended to cover a wide range of fuels including liquid, gaseous, and solid fuels used in transportation, industry, homes, and buildings. Its objective is to achieve a 30 mega-tonne annual reduction in this country’s aggregate GHG emissions by 2030 which, if achieved, would contribute to Canada’s Kyoto commitments. The updated regulations will be drafted to be “non-prescriptive and designed to provide maximum flexibility to fuel suppliers – including a market-based crediting and trading system,” the government says.

The existing renewable fuel regulations require fuel producers to have an average renewable content of at least five per cent for gasoline, and two per cent for diesel and heating oil. Five provinces – B.C., Alberta, Saskatchewan, Manitoba, and Ontario – already have existing renewable fuels mandates that are currently higher than what Ottawa is proposing.

The current U.S. renewable fuel standard requires increasing annual volumes of renewable fuels to be blended into traditional fuels. Each is then measured using lifecycle GHG emissions reduction analysis.

ECCC has issued a discussion paper at www.ec.gc.ca/lcpe-cepa and written comments are posted as of April 25, 2017.

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