Renewable Fuels Regulations: frequently asked questions
The frequently asked questions (FAQs) below are meant to provide Canadians and businesses with basic information about Environment Canada’s regulations. The Renewable Fuels Regulations are among Environment Canada’s most frequently accessed regulations on the Web.
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 Questions & 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:
- Environment Canada’s Renewable Fuels Regulations website
- Renewable Fuels Regulations Questions and Answers Document
For further information and to receive email notifications of updates regarding Environment Canada’s actions on fuels, please contact Environment Canada at:
This document is intended to provide contextual information on the Renewable Fuels Regulations. It does not replace the Canadian Environmental Protection Act, 1999 or the Renewable Fuels Regulations. In the event of any inconsistencies, the Canadian Environmental Protection Act, 1999 and the Renewable Fuels Regulations shall prevail.
For more information
- The Cabinet Directive on Regulatory Management
- The Red Tape Reduction Action Plan
- The Canada-United States Regulatory Cooperation Council
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