Amending Ontario's Cleaner Transportation Fuels Regulation to Increase Compliance Flexibility for Domestic Content Requirements

ERO number
025-1418
Notice type
Policy
Act
Environmental Protection Act, R.S.O. 1990
Posted by
Ministry of the Environment, Conservation and Parks
Notice stage
Exception
Exception posted
Last updated

This notice is about a decision that was not subject to the normal consultation process. Learn more about the types of notices on the Environmental Registry of Ontario.

Exception summary

We have decided to give fuel suppliers the option to defer compliance with the 2025 domestic content requirement until the 2026 compliance period. This regulatory amendment is effective immediately.

Why consultation isn't required

The ministry is posting this exception notice pursuant to section 30 (2) of the Environmental Bill of Rights,1993 (EBR) because it is the opinion of the Minister of the Environment, Conservation and Parks that the environmentally significant aspects of the amendment have already been considered in an equivalent public participation process:

  • on June 20, 2025, the ministry invited a 30-day public consultation on a proposed domestic renewable content requirement for diesel. All comments from the consultation were considered and on August 8, 2025, a decision was made to implement domestic content requirements for diesel and gasoline under the Cleaner Transportation Fuels Regulation. Cleaner Transportation Fuels: Proposed Domestic Renewable Content Requirement for Diesel Fuel | Environmental Registry of Ontario
  • the domestic renewable content requirements help ensure long-term energy security and environmental sustainability in Ontario
  • the amendment does not alter the original intent nor total volume requirements and providing more time to comply does not change environmental impacts. The proposed amendment was posted on the Ontario Regulatory Registry for public consultation

Exception details

Since the domestic renewable content requirements were introduced, multiple fuel suppliers cited concerns that they may not be able to comply with these new requirements in 2025. This is due to having already met annual requirements during the summer diesel blending season with existing non-domestic supply contracts and having supply logistics issues with sourcing domestic content.

In response to these concerns, the province has decided to proceed with an amendment to the Cleaner Transportation Fuels (CTF) regulation to give fuel suppliers more flexibility to meet recently introduced domestic content requirements. Fuel suppliers now have the option to defer compliance with the 2025 domestic content requirement until the 2026 compliance period. This provision will provide compliance flexibility by giving fuel suppliers an additional 12 months to meet their 2025 domestic renewable content requirements.

The additional flexibility maintains the province’s policy objective of providing support to domestic biofuel producers and encouraging the circular economy. It will result in the same volumes of domestic biofuels being required over a longer period, as well as the same environmental outcomes in terms of greenhouse gas emissions reductions. It will not penalize fuel suppliers who have already complied with the prorated 2025 requirements.

Suppliers are required to track their volumes of domestic content such that any deficit in the original 2025 compliance year can be applied toward their 2026 compliance requirements. The CTF compliance form will be amended to reflect the option to defer 2025 domestic content compliance until 2026. Subsequent compliance years will not be combined.

The amendment does not change the original policy intent (volume of domestic content required), and there are no environmental impacts. It only provides additional time for fuel suppliers to comply with the domestic content requirements.

The proposed amendment was posted on the Ontario Regulatory Registry for public consultation.

This amendment is effective immediately.

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Modern Regulator Branch
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40 St Clair Avenue West
3rd Floor
Toronto, , ON
M4V 1M2
Canada

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