On September 1, 2010, the Government of Canada published the final version of the Renewable Fuels Regulations under the Canadian Environmental Protection Act, 1999. The Regulations require fuel producers and importers to have an average renewable fuel content of at least five percent (5%) in gasoline (based on the volume of gasoline produced and imported) starting December 15th, 2010. The provisions requiring an average of two percent (2%) renewable fuel content in diesel fuel and heating oil (based on annual volumes) will be brought into force once the “technical feasibility of renewable diesel fuel use in Canada has been demonstrated”.

The Regulations, in combination with the proposed Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations published in April of this year, fulfill the federal government’s commitments under the Renewable Fuels Strategy of reducing GHG emissions from liquid petroleum fuels and creating a demand for renewable fuels in Canada. The federal government estimates that the Renewable Fuel Regulations will result in an incremental reduction of GHG emissions from the transportation sector of about 1megatonne of carbon dioxide equivalent per year over and above the reductions attributable to existing provincial requirements already in place.

The proposed Draft regulations were previously published in Part I of the April 10, 2010 Canada Gazette for a 60-day public comment period. The final version of the Regulations can be viewed here.