B.C. to Require Canadian-Made Biofuels to Meet Standards for Gas, Diesel

February 28, 2025

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(The Canadian Press/MSN) British Columbia is set to require Canadian products to fulfil renewable fuel standards for gasoline and diesel, a move Energy Minister Adrian Dix said was aimed at building a "cleaner, stronger and more self-reliant" province.

Dix said B.C. is too reliant on fuels from outside Canada, making the province vulnerable to market fluctuations and other external pressures.

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At the same time, he said the United States provides "dramatic subsidies" for its own biofuel industry to a degree that curtails the industry in B.C. and Canada.

"For too long, B.C. biofuel producers have operated in a market where their American counterparts benefited from subsidies that gave them a considerable competitive advantage," he told the news conference announcing the changes.

"These subsidies dramatically increased with the Inflation Reduction Act in the United States," he said during a news conference on Thursday.

B.C. has minimum requirements for biofuels to be added to gasoline and diesel. The province is mandating those fuels be Canadian made, and is increasing the minimum biofuel content for diesel.

Dix conceded the U.S. subsidies for the American biofuel industry provide "some benefits" at the pump for Canadian consumers.

"There is a potential for an impact there, albeit small," he said, referring to fuel prices. READ MORE

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Excerpt from British Columbia Government: British Columbia is focused on growing a strong economy, finding new trade partners, and defending workers and businesses against President Trump’s tariff threats. -- ...

We encourage British Columbians and Canadians to explore our beautiful province, support local businesses, and buy B.C. and Canadian food and products first, when there is an option. While shopping, check for Buy BC or Made in Canada logos, produce stickers and product labels – and many stores are posting signage to help shoppers.

Small changes make a big difference when we do them together. You can help send a message that Canada is standing strong and free.

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f tariffs are imposed, Canada and B.C. are united and ready to respond with equal force and support for those affected. No matter what happens, we're moving full steam ahead to strengthen and diversify so we’re less reliant on the U.S.

Strengthen economy

B.C. is growing a stronger economy by fast-tracking major projects to create good-paying jobs and wealth across the province.

Diversify trade

B.C. is finding new markets for our products and knocking down trade barriers within Canada to reduce our reliance on the U.S.

Ready to respond

B.C. and Canada remain united and will respond to U.S. tariffs with tough counter actions and outreach to American decision-makers. READ MORE

Excerpt from Canada's National Observer: The province is making legal changes to prioritize Canadian biofuel that meets the Low Carbon Fuel Standard (LCFS), said Adrian Dix, B.C. minister of Energy and Climate Solutions, on Thursday.

Crafted in 2010, the LCFS requires transportation fuel suppliers to blend a minimum amount of renewable fuels, also known as biofuels, into gasoline, diesel and jet fuel to lower the amounts of planet-warming carbon pollution produced by burning them.

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Starting immediately, the renewable content for diesel fuels will increase to eight per cent from four per cent, and by April 1, that content must be produced in Canada, Dix said. Changes for gasoline are slated later — on Jan. 1, 2026, when five per cent of Canadian biofuels must be included.

The move reflects the province’s commitment to a cleaner, reliable, resilient Canadian fuel supply, Dix in a statement.

“By increasing the Canadian biofuel content in our transportation fuels, we will support local producers, protect jobs and reduce our dependence on foreign energy,” he said.

The content requirements will stabilize the biofuel market and support B.C. companies like Tidewater Renewables in Prince George, Parkland in Burnaby, and Consolidated Biofuels in Delta, Dix said.

The provincial announcement is a reaction to former U.S. president Joe Biden’s Inflation Reduction Act measures that have subsidized American renewables, making them cheaper when imported into the Canadian market and undercutting B.C. companies, said Werner Antweiler, associate professor with the Sauder School of Business at the University of British Columbia.

Trump has launched various attacks on the IRA — a multi-pronged, multi-billion dollar investment into climate and clean energy — but to date hasn’t scuppered it completely.

Adrian Dix, B.C. minister of Energy and Climate Solutions, is making it mandatory to use Canadian renewables to meet the province's cleaner fuel benchmarks in a bid to bolster domestic producers and clean energy economy in the face of Trump tariffs.

In January, Tidewater Renewables announced it was filing a complaint with the Canadian Border Services Agency seeking countervailing and anti-dumping duties be applied to American biofuel imports.

While a countervailing duty would level the playing field for Canadian producers over the long term, it would take time to implement, particularly with Trump’s threats causing seismic changes in the trade arena, Antweiler said. By contrast, B.C.’s new Canadian content mandate offers immediate relief to provincial renewable companies.

“We’re in a situation where we need action fast, because a company like Tidewater Renewables in Prince George is underwater otherwise,” Antweiler said.

The B.C. move is a good first step in creating fairness around imported biofuels and moving toward an economically viable Canadian renewablefuel industry, said Jeremy Baines, president and CEO of Tidewater Renewables.

The company wants to be a leader in the energy transition and create made-in-BC energy solutions and good, paying jobs which help meet provincial and federal emission reduction targets, Baines said.

Mark Zacharias, executive director of Clean Energy Canada, praised the announcement, noting it provides certainty to domestic biofuel producers and bolsters the national supply chain, as well as the province’s clean energy economy.

“In the face of potential U.S. tariffs, these changes will create jobs here in B.C., while doing our part for the climate,” Zacharias said.

An even playing field between the two trading partners would be the preferable option to drive the wider renewables sector, Antweiler said.

However, the B.C. response is justifiable, he added.

“Mr. Trump wants to slap tariffs on everything we're shipping to them, so maybe this is actually an opportune time to say, ‘We’ve got to protect our Canadian market for this early industry,’” he said.

“Slamming the door shut [to U.S. products] is entirely understandable under the circumstances.

“I would hope in the long run, this would give way as the industry matures, and we open up trade with our American partners, to the extent that they open up the door for us.” READ MORE

Excerpt from CNW Group/Yahoo!: The ability of US renewable diesel producers to dump their product into British Columbia and unfairly benefit from both a production subsidy received in the U.S. and the generation of emissions credits at the point of sale in British Columbia has created an unlevel and unfair trade environment for Canadian renewable diesel producers. The action taken by the Government of British Columbia represents a good first step in levelling the unfair trade environment and supporting the economic viability of Tidewater Renewables and the broader Canadian biofuels industry.

The announced changes to the Low Carbon Fuels Act, specifically the increase to the renewable fuel requirement for diesel from 4% to 8%, together with requiring such renewable fuel content to be produced in Canada which comes into effect on April 1, 2025, demonstrates the Government of British Columbia's commitment to strengthening the Canadian biofuel sector. Tidewater Renewables will continue to work with both the Provincial and Federal governments to ensure appropriate and fair policies are in place to support the Canadian renewable fuels industry. In addition, the Corporation remains dedicated to pursuing the countervailing (anti-subsidy) and anti-dumping duty complaint (the "Complaint") to address unfairness in the Canadian renewable diesel market. For more information on the Complaint, please refer to the Corporation's press release issued on January 6, 2025.

"We are grateful for the support from the Government of British Columbia in levelling the playing field for Canadian renewable fuel producers and hope that, with these changes, we're now able to better compete with U.S. producers dumping their product into the British Columbia market. That said, the challenges facing the Canadian renewable fuels industry are substantial and it's going to take an all-hands approach to ensure our industry is able to continue to meet the growing demand for clean fuels", said Jeremy Baines, Chief Executive Officer of Tidewater Renewables. "As more renewable fuels produced in Canada become available, we expect the Government of British Columbia to raise the Canadian-produced renewable fuel requirements to an appropriate level to ensure a fair trade environment for renewable diesel and align policy with the broader goals of the Canadian biofuel sector". READ MORE

Excerpt from Business Intelligence for B.C.: The B.C. government is moving to protect a nascent biofuel industry by requiring all biodiesel sold in B.C. be made in Canada.

Starting in April, under the Low Carbon Fuel Standard, the biofuel content requirements for diesel sold in B.C. will need to be met with biofuels made in Canada.

Today's announcement comes one day after Conservative MLA Keil Giddens put forward a private members bill to amend the Low Carbon Fuels Amendment Act, in an attempt to save a new biofuel refinery in Prince George from going under.

Adrian Dix, minister of Energy and Climate Solutions, announced Thursday that his government will require all biodiesel sold in B.C. to be made in Canada, starting April 1.

In January 2026, the renewable-fuel requirement for diesel will increase from four to eight per cent. Also in January 2026, the minimum five per cent renewable-fuel requirement for gasoline will also have to be met with renewable fuels produced in Canada.

"Today we're doubling the size of the market, and supporting Canadian companies in a substantive way," Dix said.

The changes are aimed at protecting B.C.'s nascent biofuel industry, which is threatened by cheaper, subsidized biofuels that have been flooding into B.C. from the U.S.

“By ensuring more of our fuels come from Canadian producers, we’re giving them the certainty and stability they need to grow and to thrive,” Dix said.

By increasing the requirements for biodiesel from four to eight per cent, Dix said the intent is to grow the market for biofuels in B.C.

In announcing the changes, Dix credited Giddens, a Conservative MLA, for bringing the concerns about the current situation to the forefront.

“I really appreciate the work he’s done and the attention he’s drawn to this issue,” Dix said.

B.C.’s low carbon fuel standard requires gasoline and diesel to be blended with biofuels – made from products like canola oils and animal fats – to reduce their carbon emissions intensity.

Biofuel producers like Tidewater Renewables (TSX:LCFS) receive emissions credits on biodiesel sales.

This has helped create a domestic market for biofuel production, but just as the industry is getting up and running, it faces competition from the U.S. – competition that has driven Tidewater Renewables' new biodiesel refinery in Prince George close to insolvency.

“Tidewater Renewables in Prince George — a critical asset producing renewable diesel —is facing insolvency due to unfair government policies that allow American fuel producers to flood our market with subsidized diesel while claiming BC’s low-carbon fuel credits,” Giddens said in a press release.

American producers of renewable fuels are “double dipping” on subsidies provided by governments in the U.S. and in B.C., Giddens said. In the U.S., producers receive production subsidies, and when they sell biodiesel into B.C., they can receive emissions credits.

The result has been that Canada is suddenly flooded by cheap biofuels from the U.S., which has collapsed a biofuels credit market on which domestic biofuel production relies.

“There are U.S. renewable diesel refiners, in Louisiana primarily, that are gaining access to B.C.’s credit market for low-carbon fuels, but at the same time, under the former President (Joe) Biden’s Inflation Reduction Act, they are able to get significant production credits and subsidies both at the state and federal level on the U.S. side,” Giddens explained.

“Tidewater Renewables is a first of its kind in Canada, and right now they’re being undercut by the American refiners that are double-dipping in both the production subsidies on the U.S. side and B.C.’s low carbon fuel credits.” READ MORE

Excerpt from Ethanol Producer Magazine: The regulatory changes boost the renewable fuel requirement for diesel from 4% to 8% beginning with the 2025 compliance period. Beginning April 1, 2025, the minimum 8% renewable fuel requirement for diesel must be met with eligible fuels produced in Canada.

Beginning Jan. 1, 2026, the minimum 5% renewable fuel requirement for gasoline must be met with eligible renewable fuels produced in Canada.

No changes have been made to the renewable fuel requirements for the 2024 compliance period. The government also confirmed that there have been no changes to the renewable fuel requirements for jet fuel.

Canada is currently the top destination for both U.S. ethanol and biodiesel exports. According to data published by the USDA, the U.S. exported 674.6 million gallons of ethanol to the country in 2024. That volume equates to 35.25% of total U.S. ethanol exports during the year. In terms of value, U.S. exports of ethanol to Canada accounted for $1.74 billion in 2024.

The U.S. also exported 515,956 metric tons of biodiesel and biodiesel blends of B30 and greater to Canada in 2024. That volume accounts for 88.15% of total U.S. biodiesel exports during the year. Biodiesel exports to Canada were valued at $743.77 million for the year. The USDA does not break down its export data by Canadian province.

Tidewater Renewables Ltd. is welcoming the LCFS program changes. "We are grateful for the support from the Government of British Columbia in levelling the playing field for Canadian renewable fuel producers and hope that, with these changes, we're now able to better compete with U.S. producers dumping their product into the British Columbia market. That said, the challenges facing the Canadian renewable fuels industry are substantial and it's going to take an all-hands approach to ensure our industry is able to continue to meet the growing demand for clean fuels", said Jeremy Baines, CEO of Tidewater Renewables. "As more renewable fuels produced in Canada become available, we expect the Government of British Columbia to raise the Canadian-produced renewable fuel requirements to an appropriate level to ensure a fair trade environment for renewable diesel and align policy with the broader goals of the Canadian biofuel sector.”

Additional information is available on the government of British Columbia website. READ MORE