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B.C. creates fuel tax exemption for ethanol, biodiesel

VICTORIA, B.C. -- The province of B.C. is offering fuel tax exemptions for fleets and individuals that use biodiese...

VICTORIA, B.C. — The province of B.C. is offering fuel tax exemptions for fleets and individuals that use biodiesel and ethanol-blended fuels.

Beginning July 1 the ethanol and biodiesel portions of fuel will be exempt from the provincial motor fuel tax in an effort to promote the environmentally-friendly fuels. Ethanol is created from organiz materials such as corn and grain and biodiesel is made from vegetable oils and animal fats.

The tax exemptions will apply to blends of up to 25 per cent ethanol or 50 per cent biodiesel.

"This expanded exemption will help offset the higher costs of these ethanol and biodiesel blends and make them more competitive with conventional fuels," said Finance Minister, Gary Collins. "It will promote the use of these fuels and stimulate the development of production facilities in British Columbia as more people choose alternative fuels."

Currently Canadian Biofuels is attempting to localize production of biodiesel in the Lower Mainland of B.C., which would also result in decreased cost for users.

"B.C. has taken a leadership role in Canada by supporting renewable fuels with this tax exemption," said Mike Boyd, projects director for WISE Energy Co-op in Victoria. "By encouraging the use of clean, sustainable fuel, government acts on its commitment to improve air quality. It also enhances local industry’s prospect of manufacturing the world’s fastest growing alternative fuels, biodiesel and ethanol, right here in B.C."

A number of municipalities in the Lower Mainland have completed a pilot project using biodiesel and they say they will continue to use it when the cost becomes more competitive. That decision will likely be reinforced with the province’s announcement.

"By encouraging the use of cleaner alternative fuels, government is acting on its commitment to improve air quality," said Bill Barisoff, Minister of Water, Land and Air Protection. "Cleaner air and a healthier environment mean a better quality of life for all British Columbians."

For more information about which fuels qualify for the exemption, visit

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