Global biofuel use to spike; BCTA wants domestic rules cleaned up

VICTORIA — Global use of biofuels should more than double by 2015, with U.S. biofuel use expected to grow by more than 35 percent, according to a report by Hart’s Global Biofuels Center.

According to the outlook, Hart’s predicts Brazil to grow domestic supplies by 30 percent and more than double export volume of biofuels. In addition, Indonesia and Malaysia are expected to see double production of palm oil biodiesel, while Germany will remain the largest producer of biofuels in Europe.

Despite these expected advances, the forecasts for commercial growth in the production and use of these fuels will be below expectations, Hart’s says.

Here in Canada, the B.C. Trucking Association is concerned with potential negative consequences of an upcoming biodiesel mandate.

The association has recommended the B.C. government ensure that, as with the 2010 biodiesel mandate, a proposed new provincial Low Carbon Fuel Requirement Regulation does not impose any unintended negative consequences on the trucking and bus industries.

The Greenhouse Gas Reduction (Renewable and Low Carbon Fuel Requirements) Act, which was passed in May 2008, stipulates the creation of a low carbon fuel standard, which, by 2020, would reduce the average carbon intensity of fuels, including diesel and renewable fuels, by 10 percent, using 2010 fuel sales as a base.

The regulation does not dictate how fuel suppliers are to comply with the requirement, only the standard that they will have to meet. For example, B.C. proposes to consolidate all affected types of fuel into one pool and average the 10 percent reduction across the entire pool. Since diesel is a more carbon-intensive fuel than gasoline, some of BC’s carbon intensity reduction could be met simply by encouraging users to switch from diesel to gasoline.

BCTA has asked that the government accommodate industry needs in the final version of the regulation, as follows: To ensure that a new fuel standard does not impose a negative impact on the operation of engines or void warranties (i.e., confirm that engine manufacturers allow the use of such fuel); to allow consumers to make informed decisions about their purchases (i.e., to also establish an appropriate labelling standard); and to amend tax policy to reflect the lower carbon intensive fuels as and when it is mandated (i.e., lower the carbon tax).
 


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