SASKATOON, Sask. -- June 29, 2011 -- Environment Minister, Peter Kent, today announced that the Government is moving ahead with the 2 percent renewable content requirement in diesel fuel and heating oil. The biodiesel requirement comes into effect on July 1, 2011.

The start date is just a few days away, noted the Minister, who stressed that  there will be an 18 month first compliance period in order to provide some flexibility for companies in meeting this requirement. "We have listened to stakeholders' concerns," he said.

"The steps we are taking on renewable fuels, combined with those of the provinces, will ensure a volume of renewable fuel that will reduce annual greenhouse gas emissions by about four megatonnes a year--the equivalent of removing one million vehicles from the road,"  said Minister Kent.

This is good news for our farmers and the environment," added Gerry Ritz, Minister of Agriculture. "Increased demand for feed stocks like canola will ensure an even stronger bottom line for farmers and a stronger agricultural sector."

The regulatory amendment to the Renewable Fuels Regulations will be published in the Canada Gazette, Part II, in the coming weeks. The coming-into-force date for the requirement is July 1, 2011. A non official, pre-published version of the regulations is available here.

A permanent exemption is being provided for renewable content in diesel fuel and heating distillate oil sold in Newfoundland and Labrador to address the logistical challenges of blending biodiesel in this region.

Temporary exemptions for renewable content in diesel fuel and heating distillate oil sold in Quebec and all Atlantic Provinces are being provided until December 31, 2012. This 18-month period will allow eastern refiners time to install biodiesel blending infrastructure.