Ontario Announces New Renewable Fuel Regulation

Today, the Ministry of Environment, Conservation and Parks (MECP) announced the revocation and replacement of the Greener Gasoline Regulation (O. Reg. 535/05) and Greener Diesel Regulation (O. Reg. 97/14) with the Cleaner Transportation Fuels Regulation (O. Reg. 663/20) under the Environmental Protection Act. The new regulation increases the renewable content in fuel and provides new technical guidelines. The new regulation supports the provincial government’s goal of reducing greenhouse gas (GHG) emissions by 30 per cent below 2005 levels by 2030 as set out in the Made-in-Ontario Environment Plan. This bulletin briefly summarizes the following updates:

  1. Cleaner Transportation Fuels Regulation (the Regulation)

  2. Technical Guidelines: Cleaner Transportation Fuels (the Guidelines)

Cleaner Transportation Fuels Regulation. The Regulation will increase the amount of renewable content in regular-grade gasoline to 15% in 2030, up from 10%. MECP anticipates that the change will result in an annual reduction of up to one megatonne of GHG emissions in 2030, which it says is the equivalent of taking 300,000 cars off the road each year. The Regulation includes the following updates:

  • Extends the 2020 compliance year into a two-year compliance period (2020-2021) as a result of the COVID-19 pandemic.

  • Updates fuel supplier reporting requirements to improve aggregate fuel industry information, including requiring reporting on the average monetary value of compliance volumes transferred to and from the records of other fuel suppliers.

The Regulation phases-in the increases of the renewable content of fuel as follows:

  • 11% in 2025;

  • 13% in 2028; and

  • 15% in 2030.

Technical Guidelines. The Guidelines replace Director Directives under the Greener Diesel and Greener Gasoline regulations. Updates include:

  • GHGenius model version. The updated Guidelines maintain the GHGenius model over the proposed lifecycle analysis tool being developed by the federal government for the proposed Clean Fuel Standard.

  • Undocumented biofuel. For 2020-2021, the Guidelines provide pre-calculated intensity values for corn ethanol to accommodate market adjustment to the new requirements and impacts associated with the COVID-19 pandemic.

  • Biofuel facility production processes. The Guidelines outline a process for using six months of data for determining the GHG intensity value until 12 months of data becomes available. This is to support innovation in biofuel feedstocks and production processes for new plants that require a GHG intensity to market their products.

  • Treatment of renewable inputs. The Guidelines provide a methodology for using direct connected renewable energy in the biofuel production process supporting improvements throughout the fuel lifecycle.

For further information or to discuss the contents of this bulletin, please contact Lisa DeMarco at lisa@demarcoallan.com.

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