Canadian Biomass Magazine

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Industry ready for a renewable diesel mandate

May 7, 2013, Ottawa, Ont. – The Ontario government has announced consultations on a renewable diesel mandate as part of its budget, confirming its commitment to renewable fuels.


May 7, 2013
By Jayson Koblun


Topics

The
consultations will seek a renewable content standard for diesel, and consider
the carbon intensity for any qualifying fuel. The budget announcement is a
very important first step to the creation of a mandate for renewable content in
Ontario's diesel fuel and is welcome news for biofuels producers and consumers
alike.
 
"Clean burning, renewable fuels reduce harmful greenhouse gas and tailpipe
emissions, making a real difference for the health of our climate and
ourselves," said W. Scott Thurlow, CRFA president.

Mandates
drive investment and expand local production. As stated in its pre-budget
submission and testimony, the CRFA is recommending a two per cent renewable
content standard in the Ontario diesel fuel market, and a carbon intensity of
at least a 50 per cent improvement over a life-cycle basis.

Doing so
would require at least 160 million litres of renewable product be blended in
Ontario and could create the equivalent greenhouse gas reduction of removing
100,000 vehicles from Ontario's roads. 

The CRFA
welcomes the opportunity to work with the government and other stakeholders as
part of the consultation process, and ask all political parties to support
these initiatives for renewable fuels and pass the provincial budget
expeditiously. 

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A timely
consultation process is necessary if any renewable diesel mandate is to be
implemented prior to the elimination of the biodiesel tax credit scheduled for
April 1, 2014 – a policy which the CRFA says could save the province up to $240
million over ten years in tax exposure.


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