1. Canada’s Approach to Biofuels Professor Yves Le Bouthillier, University of Ottawa Wuhan, October 31, 2009

2. Canada’s incremental steps toward a biofuel regime - Amendment to the Canadian Environment Protection Act in June 2008; entry into force in September 28, 2009 -Publication of draft regulation planned for December 2009 -Adoption of final regulation planned for June 2010 -Entry into force of the regulation in September 2010

3. Canada’s incremental steps toward a biofuel regime - petroleum fuel producers and importers: required to have “an average renewable fuel content of at least 5% based on the volume of gasoline, commencing in 2010”. - an average 2% renewable fuel content in diesel fuel and heating oil, upon successful demonstration of renewable diesel fuel use under the range of Canadian conditions” by 2012

4. Means to meet these targets - measurement is to be based on the fuel produced/imported on a company-by- company basis - the required percentage of renewable fuels would be an average annual amount for the company - the average could be achievable by trading credits with other companies - a company can blend beyond gasoline and diesel to “other liquid petroleum fuels” - there will be no regional requirements.

5. WHAT IT WILL NOT DO - Exceptions -No fuel quality specifications -No biases assign to various renewable fuels -No sustainability criteria - Possible review process

6. WHAT IT WILL NOT DO - Exceptions -No fuel quality specifications -No biases assign to various renewable fuels -No sustainability criteria - Possible review process

7. OTHER MEASURES - Subsidies - Tax exemptions -MAIN POLICY DRIVERS: -Agricultural industry -Reduction in GHGs