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Ontario Seeks Ethanol Usage Increase

WASHINGTON - Dec 14/17 - SNS -- The province of Ontario in Canada is proposing to increase the amount of ethanol used in regular gasoline from 5% to 10% by 2020.

The proposal also requires that ethanol emit 35% fewer greenhouse gas emissions than petroleum gasoline. It would also expand the existing incentive/multiplier for advanced renewable fuel technology to emerging technologies, including renewable gasoline and biocrude and include a compliance value for renewable gasoline and biocrude.

Ontario's Ethanol in Gasoline regulation came into effect in 2007 and requires, on average, a minimum of 5% renewable content in gasoline. The Greener Diesel regulation requires a 4% blend of low-carbon biofuels in diesel.

As stated in a January 2017 discussion paper, "more recent policies, such as Ontario's Greener Diesel regulation, are designed not only to require renewable alternatives to petroleum, but to assess emissions performance across the fuel's full well-to-wheel lifecycle, from extraction to processing, distribution and end-use combustion."

Recently proposed amendments are intended to work with the anticipated federal Clean Fuels Standard (currently under development) and to support Ontario's Climate Change Action Plan. Ontario's reduction targets include a 15% reduction from 1990 emissions levels by 2020, 37% by 2030 and 80% by 2050. According to provincial data reporting, Ontario met its 2014 target of 6% below 1990 levels.

If implemented, the U.S. agricultural attache for Canada believes the increase would support some growth in blending and increase sales opportunities for domestic and imported ethanol. Ontario is the largest fuel consuming province in Canada.

Ontario has proposed that a professional engineer certify that primary data used in the carbon intensity calculations are reasonable and the calculations are correct. This proposal could improve transparency of calculations by incorporating an objective third-party.

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