Biodiesel - Government Programs and Regulations

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Government Programs and Regulations

Federal Government Regulations

The Canadian Renewable Fuels Regulations are one element of the government’s Renewable Fuels Strategy and a key initiative in support of our commitment to reduce Canada’s total greenhouse gas emissions by 17 per cent from 2005 levels by 2020.

The Renewable Fuels Regulations, published on September 1, 2010 in the Canada Gazette, Part II, require an average of 5 per cent renewable content in gasoline as of December 15, 2010. The regulations were amended in 2011 to require an average 2 per cent renewable content in diesel fuel and heating oil. For more information on the Renewable Fuels Regulations, please visit Environment Canada: http://www.ec.gc.ca/lcpe-cepa/eng/Regulations/DetailReg.cfm?intReg=186

Federal Government Programs

The National Renewable Diesel Demonstration Initiative (NRDDI)
The NRDDI was launched in December 2008 to address industry and end-user questions about renewable diesel use by demonstrating how it would perform under Canadian conditions in advance of the intended renewable fuels regulation.  The NRDDI final report was provided to the regulator to inform development and implementation of the intended regulation.

ecoEnergy for Biofuels
The ecoENERGY for Biofuels Initiative is investing up to $1.5 billion over 9 years to boost Canada's production of biofuels. The initiative provides operating incentives to producers of renewable alternatives to gasoline and diesel based on production levels and market conditions. It makes investment in production facilities more attractive by partially offsetting the risk associated with fluctuating feedstock and fuel prices.

ecoAGRICULTURE Biofuels Capital Initiative
The ecoABC Initiative is a federal $200 million four-year million program that provides repayable contributions for the construction or expansion of transportation biofuel production facilities. Funding is conditional upon agricultural producer investment in the biofuel projects, and the use of agricultural feedstock to produce the biofuel.

Next-Generation Biofuels Fund
The 2007 Budget made $500 million available to Sustainable Development Technology Canada (SDTC) to invest with the private sector in establishing large scale demonstration facilities for the production of next-generation biofuels.