Biodiesel mandate coming to Canada this fall

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OTTAWA, Ont. — It’s official: a biodiesel mandate is coming to Canada. Effective 60 days from July 20, diesel fuel sold in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario will have to contain an average annual biofuel blend of 2%. Diesel fuel sold in Quebec and the Maritimes will be exempt until Dec. 31, 2012. There is a permanent exemption for Newfoundland and Labrador. The announcement was reported in the Canada Gazette Pt. II.

“While the exemptions may in part reflect CTA’s efforts to raise awareness about the supply and distribution challenges posed by the biodiesel mandate, measures to address CTA’s concerns over the potential impact of biodiesel blends over B5 on the operability, durability and warranties of heavy truck engines, the absence of fuel quality standards and the risk of price disparity between biodiesel and regular diesel are disappointingly absent,” the Canadian Trucking Alliance said in a release.”Like it or not, the industry is going to have to live with the consequences.”

The CTA is advising carriers to work with their equipment and fuel suppliers to discuss transitional issues including warranty considerations and fuel quality specifications they should be demanding from their fuel suppliers. The group also says it will be monitoring the impact of the mandate over time.

The final regulation can be found here.

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