CTA: ‘Like it or not, Industry will live with biodiesel consequences’

OTTAWA — With the publication of the Canada Gazette Pt. II, diesel fuel sold in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario will have to contain an average  biofuel blend of 2 percent, effective 60 days from July 20, 2011.

Quebec and the Maritimes will be exempt until December 31st 2012 and there is a permanent exemption for Newfoundland and Labrador.

The exemptions, says the Canadian Trucking Alliance, may in part reflect the trade association’s efforts to raise awareness about the supply and distribution challenges posed by the biodiesel mandate.

However, the government all but ignored CTA’s other concerns such as the effect of B2 on the 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.

"Like it or not, the industry is going to have to live with the consequences," the association stated in a press release.

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.

CTA will be monitoring the impact of the mandate over time.

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