Renewable Fuels Regulations: frequently asked questions

Renewable Fuels Regulations

1. What is the purpose of these regulations?
2. What are the key elements of these regulations?
3. How do these regulations affect Canadian businesses?
4. What is the timeline for implementation?
5. Where can I get more information?

1. What is the purpose of these regulations?

The purpose of the Renewable Fuels Regulations (the regulations) is to reduce greenhouse gas emissions by requiring an average 5% renewable fuel content in gasoline and 2% renewable fuel content in diesel fuel and heating distillate oil, for each compliance period.

2. What are the key elements of these regulations?

The Renewable Fuels Regulations require petroleum producers and importers to have an average 5% renewable fuel content in gasoline and 2% renewable fuel content in diesel fuel and heating distillate oil, for each compliance period. There are some exceptions. The regulations include provisions that govern a trading system of compliance units. The regulations also require record keeping and reporting to assist in verifying compliance.

3. How do these regulations affect Canadian businesses?

Businesses that are affected by the regulations are:

• producers and/or importers of gasoline, diesel fuel or heating distillate oil;
• producers and/or importers of renewable fuel;
• businesses that would want to participate in the trading system; and
• businesses selling for export renewable fuel or liquid petroleum fuel that contains renewable fuel.

The regulations place various requirements on businesses, such as requiring renewable fuel content, making and retaining records, submitting registration information, submitting annual reports and undertaking independent third party audits, depending on the nature of a company’s activity. The details of these and other requirements are described in the revised questions and answers on the Federal Renewable Fuels Regulations.

4. What is the timeline for implementation?

The Renewable Fuels Regulations, made under the authority of the Canadian Environmental Protection Act, 1999, came into force on August 23, 2010. They require fuel producers and importers to have an average renewable fuel content for each compliance period of at least 5% based on the volume of gasoline that they produce or import effective December 15, 2010, and 2% of the volume of diesel fuel and heating distillate oil that they produce and import effective July 1, 2011. As a result of amendments in 2013, heating distillate oil volumes for space heating purposes are exempted from these requirements.

5. Where can I get more information?

More information and guidance can be found through the following links:

• Renewable fuels regulations web section
• Revised questions and answeres on the Renewable Fuels Regulations

For further information and to receive email notifications of updates regarding actions on fuels, please contact Environment and Climate Change Canada at:

fuels-carburants@ec.gc.ca

For more information

• Federal regulatory management
• The Cabinet Directive on Regulatory Management
• The Canada-United States Regulatory Cooperation Council

To learn about upcoming or ongoing consultations on proposed federal regulations, visit the Canada Gazette and consulting with Canadians websites.