NEW – ON: Government boosting renewable content in gasoline
On November 26, 2020, the Ontario government announced changes to fuel content regulations which will require fuel suppliers to increase renewable content in gasoline to 15 per cent by 2030.
A first for a Canadian province, these changes aim to make everyday vehicle gasoline cleaner and result in an annual reduction of up to one megatonne of greenhouse gas emissions in 2030; the equivalent of taking 300,000 cars off the road annually.
Minister of the Environment, Conservation and Parks, Jeff Yurek, stated that the changes will also help attract investment in ethanol production, create jobs in rural communities and assist the biofuel and agriculture sectors in COVID-19 long-term economic recovery.
CPA members will be interested to know that while the government’s plan emphasizes ethanol as a viable renewable fuel, it does not preclude application of other bio-renewable fuels to meet these targets.
The changes will be gradually phased in over 10 years to help industry adjust. Renewable content will increase from the current 10 per cent requirement to 11 per cent in 2025; 13 per cent in 2028; and 15 per cent in 2030.
These changes were made by revoking O. Reg. 535/05 (Greener Gasoline) and O. Reg. 97/14 (Greener Diesel) and creating a single, new “Cleaner Transportation Fuels: Renewable Content Requirements for Gasoline and Diesel Fuels” (O. Reg 663/20) regulation that maintains separate renewable content requirements for gasoline and diesel.
The new regulation is now in effect and also includes the Technical Guideline: Cleaner Transportation Fuels, which is incorporated by reference pursuant to s. 177(5) of the Environmental Protection Act.
Existing exclusions such as for boats, planes, classic cars, and mid and premium grade gasoline will be maintained. The government also reflected stakeholder input for additional flexibility mechanisms by including exemptions for Northern Ontario until 2033, allowing trading of compliance volumes between gasoline and diesel pools and credit for early action.
Included in the government’s Made-In-Ontario Environment Plan, these revisions will contribute to the province's goal of reducing GHGs by 30 per cent by 2030. Further details may be accessed here.
