Cleaner Transportation Fuels: Proposed Modified Pathway for Alternative Electricity Generation Values and Alternative Energy and Process-Related Fuels/Inputs

This decision notice provides the notice required by section 177(6) of the EPA to give effect to the new version of the MECP publication entitled Technical Guideline: Cleaner Transportation Fuels. 

We have updated the Technical Guideline with the following:

Update to Section 3.1

• Bio-based content producers that have six or fewer consecutive months of operating data for bio-based content may use the appropriate default values required to be used by Environment and Climate Change Canada under the federal Clean Fuels Regulations.
• A bio-based content producer that is located outside of Canada or the United States can use the regional default value for the Central United States for feedstock or fuel production.
• Exact text added:

“…may use the appropriate default values required to be used by Environment and Climate Change Canada under the federal Clean Fuels Regulations.

Bio-based content producers that are located outside of Canada or the United States can use the regional default value for the Central United States for feedstock or fuel production, provided all other necessary changes to the input sheet are completed as described below in section 3.2.”

New Section 3.1.2 Alternative Electricity Generation Values

• A bio-based content producer may use alternative electricity generation values.
• Exact text added:

“A bio-based content producer may use alternative electricity generation values instead of the regional default values contained in GHGenius, provided that the alternative data originates from a federal regulator such as the Canada Energy Regulator or the US Environmental Protection Agency. 

These alternative values should be entered into the appropriate cells on the ‘Power Gen’ worksheet. For example, a bio-based content producer in Atlantic Canada or the United States could make the appropriate adjustments to the model.”

New Section 3.1.3 Alternative Energy and Process-Related Fuels / Inputs

• Bio-based content produced using alternative fuels as an energy input or feedstock not currently in the GHGenius model may use an existing fuel pathway in GHGenius as a proxy.
• Exact text added:

“Bio-based content produced using alternative fuels as an energy input or feedstock not currently in the GHGenius model may use an existing fuel pathway in GHGenius as a proxy, provided that:

1. The bio-based content feedstock and the end-product (e.g. renewable diesel from yellow grease) are the same as they are in the pathway being modified.
2. Adjustments to the appropriate cells are made in the “Alt Fuel Prod” worksheet and any other worksheets in the model as required.
3. All conversion factors and calculations made prior to values being entered into the model shall be referenced and documented.
4. Any and all adjustments made to an existing fuel pathway are included in the opinion required by section 7(1)(c) of the Regulation.”

Analysis of Impact

The approved modified pathway and Guideline updates outlined above will not result in additional administrative costs for fuel suppliers. Using any of the pathways is voluntary and should provide a net benefit to them.

The intention of the approved updates is to broaden the pathways for content that fuel suppliers can use to meet the bio-based content requirements under the Cleaner Transportation Fuels Regulation. This increase in compliance flexibility could lead to lower compliance costs for fuel suppliers on a per unit volume basis.

Use of the approved pathways and updates is not expected to directly result in a significant net increase in greenhouse gas emissions as the content and GHG performance requirements for bio-based content under the Cleaner Transportation Fuels Regulation have not changed.