Proposed July 1, 2011 start date does not provide adequate lead time for
OTTAWA, Feb. 11 /CNW/ - The Canadian Petroleum Products Institute (CPPI)
is concerned the federal government has proposed an impractical start
date for a mandatory national requirement that diesel fuel and home
heating oil contain 2% renewable diesel (biodiesel) content. The
government has announced July 1, 2011 as the coming into force date for
the renewable diesel requirement of the federal Renewable Fuels
Regulations. "CPPI and its member companies are committed to a
successful implementation of the renewable diesel component of the
federal Renewable Fuels Regulations," said Peter Boag, CPPI President.
"But the proposed start date of July 1, 2011 overlooks important
Biodiesel made from vegetable oils and animal fats is the only renewable
diesel currently produced in Canada. In colder temperatures it
thickens and eventually solidifies, creating significant technical
feasibility challenges during Canada's colder months. Satisfactory
resolution of technical feasibility was a key requirement of the
federal government's original announced intention to implement a
national 2% renewable diesel requirement by 2012.
Work conducted under the federal government's National Renewable Diesel
Demonstration Initiative (NRDDI) identified the need to resolve four
key technical feasibility issues to ensure successful implementation:
Fuel technology readiness
Technology/end-user application readiness
CPPI and its members are concerned that the fuel storage, distribution
and transportation infrastructure necessary to compensate for
biodiesel's poor low temperature properties will not be in place in all
regions of the country until well after July 1, 2011, and that the
Canadian General Standards Board biodiesel standards development
activity won't be complete until the end of 2011, at the earliest.
The NRDDI final report acknowledged that in some regions of the country,
especially where there are no existing provincial biodiesel mandates,
upgrades to infrastructure to "ensure that consumers are not affected
by the transition to biodiesel blends" could take up to three years.
The NRDDI report further noted that "accelerating lead times in order
to meet a mandated regulatory start date can lead to significantly
increased costs and may not be possible in some cases".
"Our industry's greatest concern is its continued ability to reliably
provide quality, fit for purpose fuels to all Canadians," said Boag.
"A July 1, 2011 start date does not provide fuel suppliers, the only
obligated party under these regulations, the necessary lead time to
ensure a seamless, trouble free national transition to renewable diesel
CPPI urges the government to reconsider its current timetable and has
confirmed its willingness to work with all stakeholders to achieve a
seamless and successful implementation of the renewable diesel
SOURCE Canadian Petroleum Products Institute
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