Greener Gasoline and Greener Diesel - Director's Directions

ERO number
019-1030
Notice type
Policy
Act
Environmental Protection Act, R.S.O. 1990
Posted by
Ministry of the Environment, Conservation and Parks
Notice stage
Decision
Decision posted
Comment period
December 16, 2019 - January 15, 2020 (30 days) Closed
Last updated

This consultation was open from:
December 16, 2019
to January 15, 2020

Decision summary

As part of our Made-in-Ontario Environment Plan commitment, Ontario increased the renewable content in gasoline to 15 per cent by 2030. The new Technical Guideline: Cleaner Transportation Fuels will require fuel suppliers to consistently use data and other methods for calculating greenhouse gas performance of renewable content in fuel they sell.

Decision details

Ontario has revoked its Greener Gasoline (O. Reg. 535/05) and Greener Diesel (O. Reg. 97/14) regulations and replaced them with a single new regulation governing renewable content in gasoline and diesel fuels.

The new regulation, O. Reg. 663/20 (Cleaner Transportation Fuels), requires fuel suppliers to increase the renewable content in gasoline to 15 per cent between 2025 and 2030. To support these changes, we’ve replaced the proposed Director’s Directions under the previous regulations with the Technical Guideline: Cleaner Transportation Fuels (ministry guideline).

The ministry guideline continues all of the relevant legally-binding requirements stated in the proposed Director’s Directions, and also includes technical requirements that were in the Greener Gasoline and Greener Diesel regulations. For example, gasoline and diesel GHG intensity values and the GHG reduction requirement in grams of CO2e/MJ that were included in the previous regulations are now in this new ministry guideline.

The ministry guideline also includes a process for fuel suppliers to make requests to the Ministry of the Environment, Conservation and Parks for instructions to calculate the greenhouse gas intensity of emerging renewable fuel technologies that are not otherwise listed.

Requiring fuel suppliers to comply with updated technical guidance ensures that the regulated community uses consistent methods and measurable data to calculate the greenhouse gas performance of the renewable content in the fuel they sell.

Comments received

Through the registry

2

By email

6

By mail

0
View comments submitted through the registry

Effects of consultation

The ministry considered comments received during an in-person consultation session on renewable content in gasoline on June 25, 2019 and a technical webinar held on July 23, 2020.

The submissions yielded the following themes:

Calculating greenhouse gas intensities before the Director’s Directions are finalized

Some stakeholders asked that the ministry accept GHG intensity values that are calculated before finalizing the new Director’s Directions, as renewable fuels used towards compliance were purchased before the effective date for Director’s Directions.

Response: Our guideline outlines a process for the ministry to accept GHG intensity values that were calculated prior to its finalization.

GHGenius model version

Received advice to adopt either of the following tools: the recent version of GHGenius (currently, model version 5.0) or the lifecycle analysis tool that is currently being developed by the federal government for the proposed Clean Fuel Standard. .

Response: While we continue to monitor the progress of the federal model, our guideline specifies that GHGenius 4.03a or 4.03b will continue to be used at this time. Given that our guideline includes technical requirements, e.g. gasoline and diesel GHG intensity values, we are able to be nimble in updating model choice.

Undocumented biofuel

Stakeholders asked the ministry to provide fuel suppliers with a methodology and pre-calculated GHG intensity values for renewable fuels in the event that GHG intensity information is unavailable. This may occur due to unplanned shutdowns at renewable producer plants or fuel supplier terminals, resulting in other supply arrangements being made on short notice with suppliers that sell renewable fuels without GHG intensity information.

Response: For the 2020-21 compliance period, our proposed guideline provides pre-calculated intensity values for corn ethanol from, for example, Manitoba, Quebec or the United States, recognizing that the market is adjusting to the requirements and has been impacted by the COVID-19 pandemic.

New or improved biofuel facility production processes

Some stakeholders recommended that the GHG intensity value should be determined based on 12 months of operating data to reflect the “steady state performance” of an operation. Other stakeholders suggested that requiring 12 months of production data may be problematic for new plants that need a GHG intensity in order to market their product.

Response: Our guideline outlines a process for using six months of data until 12 months of data becomes available as a means of supporting innovation in biofuel feedstocks and production processes.

Treatment of renewable inputs

Some stakeholders requested recognition of renewable energy inputs.

Response: Our guideline provides a methodology for using direct connected renewable energy (e.g. renewable natural gas or renewable electricity) in the biofuel production process to support and recognize improvements throughout the fuel lifecycle.

The above themes and comments were considered when developing our new ministry guideline under the O. Reg. 663/20 (Cleaner Transportation Fuels) regulation.

Supporting materials

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Important notice: Due to the ongoing COVID-19 pandemic, viewing supporting materials in person is not available at this time.

Please reach out to the Contact listed in this notice to see if alternate arrangements can be made.

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Original proposal

ERO number
019-1030
Notice type
Policy
Act
Environmental Protection Act, R.S.O. 1990
Posted by
Ministry of the Environment, Conservation and Parks
Proposal posted

Comment period

December 16, 2019 - January 15, 2020 (30 days)

Proposal details

Description of policy

The proposed guidance provides fuel suppliers with instructions and directions for how to calculate the greenhouse gas intensity of bio-based content using the GHGenius model version 4.03a, or another method provided by the director.

Purpose of policy

On January 1, 2020, amendments to O. Reg. 535/05 will come into effect, requiring 10% bio-based content in regular gasoline.

This bio-based content will be required to have an average of 45% fewer greenhouse gas emissions than petroleum gasoline, assessed across the fuel’s lifecycle (i.e. across the fuel’s production, delivery and use stages). This ensures that renewable content with robust environmental performance is used in Ontario.

Increasing renewable content in gasoline is a key part of the government’s draft Made-in-Ontario Environment Plan commitment to meet our share of Canada’s 2030 greenhouse gas emissions reduction target and reduce our province’s emissions output to 30% below 2005 levels.

To calculate the greenhouse gas emissions of bio-based content for both O. Reg. 535/05 and O. Reg. 97/14, fuel suppliers need to use GHGenius version 4.03a (“the model”), a lifecycle assessment model available upon request to Environment and Climate Change Canada. Ontario fuel suppliers may be familiar with the model as it is already used for greenhouse gas performance determination in O. Reg. 97/14 (Greener Diesel – Renewable Fuel Content Requirements for Petroleum Diesel Fuel).

The proposed guide or “Director’s Directions” are legally-binding directions that prescribe the manner in which data are to be input into the model to quantify the greenhouse gas intensity of bio-based content, as required under the forthcoming amendments to O. Reg. 535/05 and O. Reg. 97/14.

The proposed guide will also include a process by which fuel suppliers can request the designated Ministry Director for a method to calculate the greenhouse gas intensity of emerging renewable fuel technologies that are not listed in the model.

Comment

Commenting is now closed.

This consultation was open from December 16, 2019
to January 15, 2020

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