INFORMATION BULLETIN

2009EMPR0024-000796 Dec. 21, 2009

Ministry of Energy, Mines and Petroleum Resources

 

RENEWABLE AND LOW CARBON FUEL REGULATION ENACTED

 

VICTORIA – The Province is continuing its leadership in reducing the environmental impact of transportation fuels through the enactment of the Renewable and Low Carbon Fuel Requirements Regulation.

 

The December 2008 Renewable Fuel Requirements Regulation established a five per cent provincial annual average renewable fuel requirement for 2010. The new Renewable and Low Carbon Fuel Requirements regulation amends the 2008 regulation to include new requirements to reduce the carbon intensity of transportation fuels by 10 per cent by 2020. These regulations are made under the Greenhouse Gas Reduction (Renewable and Low Carbon Fuel Requirements) Act, which was passed in May 2008.

 

            The low-carbon fuel requirement is a market-based approach to achieving emission reductions. This requirement uses life-cycle analysis to determine the overall carbon intensity of fuels used for transportation and includes all factors associated with the production and consumption of each fuel. This includes exploration and production of fossil fuels, production of crops for biofuels and the refining, transport, and end use of the fuel. 

 

This results-based requirement provides industry with flexibility in choosing how best to comply. Compliance options include changing the fuel mix, improving refining efficiency or improving agricultural practices for growing biofuel crops. The low-carbon fuel requirement will be phased in starting with reporting only in 2010, a modest reduction of 0.25 per cent in 2011, and increasing annual carbon intensity improvements to reach a total reduction of ten per cent in 2020.

 

The five per cent renewable fuel requirement for diesel set for Jan. 1, 2010 is also being amended. The diesel requirement will now be phased in with a three per cent target for 2010, four per cent for 2011 and five per cent by 2012.

 

This phased in approach will provide industry with the time to put the necessary Canadian supply infrastructure in place, and address technical issues regarding the cold weather properties of biodiesel and engine manufacturer warranties, which may limit the use of biodiesel. The five per cent renewable requirement for gasoline in 2010 remains unchanged.

 

This regulation will create additional choices for consumers to reduce their reliance on non-renewable fuels, and will help diversify B.C.’s transportation fuel supply and decrease greenhouse gas emissions by establishing a sustainable market for low-carbon and renewable fuels.  The renewable fuel requirement is expected, on average, to have an impact in the range of one cent per litre. As renewable fuel supplies increase, this cost is expected to decrease.

B.C. is a leader in reducing the environmental impact of transportation fuels. The increased use of renewable and low carbon fuels is part of a broader sustainable energy strategy to help the Province of British Columbia reach its goal of reducing greenhouse gas emissions by 33 per cent by 2020.

For more information on the Renewable and Low Carbon Requirements Regulation, please visit http://www.empr.gov.bc.ca/RET/TransportationPolicyPrograms/LCFRR/Pages/default.aspx

 

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Contact:

Jake Jacobs Media Relations Ministry of Energy, Mines and Petroleum Resources 250 952-0628 250 213-6934 (cell)

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