Canada requires 5% renewable fuel in gasoline

Sept. 2, 2010, Ottawa – The Government of Canada has finalized a regulation requiring
an average of 5% renewable fuel content in gasoline. The regulation will come
into effect December 15, 2010.

“Regulating renewable fuel content in gasoline is just one of several steps the government
is taking to reduce greenhouse gas emissions in the transportation sector,
which account for about a quarter of greenhouse gas emission," says the
Honourable Jim Prentice, minister of the environment.

These regulations are one pillar of the government's broader Renewable Fuels
Strategy. Canada will implement a requirement for 2% renewable content in
diesel fuel and heating oil, subject to successful demonstration of technical
feasibility under the range of Canadian conditions, by making an amendment to
the Renewable Fuels Regulations.

When fully implemented, the Strategy's two regulatory requirements, combined with
provincial regulations, will ensure a total volume of renewable fuel that will
reduce greenhouse gas emissions by up to four megatonnes in 2012, about the
equivalent of taking one million vehicles off the road.

These regulations are a key initiative in support of Canada's commitment to reduce
Canada's total greenhouse gas emissions by 17% from 2005 levels by 2020.
In addition, Canada is working with the United States towards common North
American standards for regulating greenhouse gas emissions from vehicles, and
has recently published draft regulations for vehicle tailpipe emissions under
the Canadian Environmental Protection Act that are aligned with those of the
United States.

"This is a milestone day for renewable fuels in Canada," said Gordon Quaiattini,
president of the Canadian Renewable Fuels Association, in a separate press
release. "Coupled with the federal EcoEnergy for Biofuels and ecoABC programs,
these new regulations will help foster a vibrant homegrown renewable fuels
industry in Canada and help position Canada as a global leader in the
development of next generation biofuels.” Quaiattini added, “We are also very
pleased that the government's analysis of the regulations tabled today
incorporates the cost advantage of ethanol over gasoline. We believe
ethanol blended gasoline could save Canadian consumers $1.7 billion dollars
over the next 25 years.”