• News

June 21, 2023

Oil and Gas Stakeholders Needed for US-Canada Harmonization to Accommodate Biofuel Requirements

Man working in oil fieldWork is now underway on the harmonization of 17 standards in UL Standards & Engagement’s (ULSE’s) oil and gas catalog to help Canada meet the ambitious goals set forth in its Clean Fuels Regulations

According to the Government of Canada, the goal of the regulations is “to significantly reduce pollution by making the fuels we use every day cleaner over time.” The regulations require gasoline and diesel suppliers to gradually reduce the carbon intensity from fuels produced and sold in Canada, with a target of a 15% decrease in carbon intensity by 2030 (compared to 2016). To achieve this decrease, provinces have initiated additional regulations requiring renewable content and ethanol in fuels. In Ontario, fuel suppliers must blend 10% of renewable content in gasoline from 2020 to 2024 and gradually increase the amount to 15% by 2030. They must also continue to blend 4% renewable content in diesel. Likewise, Manitoba recently increased its requirements for ethanol in gasoline to 10%, and its requirements for renewable content in diesel to 5%.

Under the Ontario regulations, the renewable content must emit 45% fewer greenhouse gas emissions than pure gasoline on a lifecycle basis before 2030 and 50% fewer emissions from 2030 onward. Renewable content in diesel must emit 70% fewer greenhouse gas emissions than pure diesel. This renewable content is often derived from agricultural crops such as canola and can also include animal fats from food processing facilities and recycled grease from restaurants. Ethanol is derived from corn and other plant materials. While petroleum is a finite resource, these additives are considered renewable because they can be continually sourced or regenerated.

With the increase in renewable content, existing equipment (like tanks, dispensers, pumps, etc.) must also be updated to accommodate the new fuels and prevent degradation, failure, and subsequent environmental and safety hazards.

Through ongoing collaboration with stakeholders in the oil and gas industry, ULSE has continually updated standards in its catalog and has published new standards to accommodate biofuel considerations. As a nationally recognized standards development organization accredited by the Standards Council of Canada (SCC) to develop National Standards of Canada, ULSE is currently working with Canadian and U.S. stakeholders to harmonize these standards in both countries and help ensure that existing equipment and new installations are meeting a minimum tolerance to accommodate the biofuel requirements.

To get involved, please submit a proposal or apply to join a technical committee.

Get Involved