Removal of Carbon Tax from Biofuels

Year
2013
Number
B106
Sponsor(s)
Highlands

WHEREAS the Greenhouse Gas Reduction Renewable and Low Carbon Fuel Requirements Act has mandated the reduction of fossil carbon emissions and the use of renewable fuels; AND WHEREAS the removal of motor fuel tax exemptions and the additional application of the carbon tax to the production and sale of pure 100 biofuels since 2010 has had a negative impact on biofuel producers and suppliers within BC, and has resulted in a decrease in the availability of pure renewable fuels that have the greatest potential to reduce fossil carbon emissions: THEREFORE BE IT RESOLVED that the Province of BC amend the Greenhouse Gas Reduction Renewable and Low Carbon Fuel Requirements Act to remove the Carbon Tax from the entire biofuel portion of all fuel production and sales derived from reused oil sources only, and provide further incentives to ensure that the renewable fuel sector continues as a viable industry for BC consumers and supports provincial greenhouse gas reduction objectives.

Provincial Response

Ministry of Finance The Province remains committed to increasing biofuel use in British Columbia through the Renewable and Low Carbon Fuel Requirement Regulation RLCFRR. The Province has recently released a consultation paper regarding part 3 agreements with fuel suppliers under the Greenhouse Gas Reduction Renewable and Low Carbon Fuel Requirements Act. Once implemented, part 3 agreements will provide further incentive for the use of biofuels in British Columbia. A carbon tax exemption for the entire biofuel portion of all fuel production and sales derived from reused oil sources only, is not technically or administratively feasible. The RLCFRR requires that total volumes of diesel fuel supplied in British Columbia contain annual averages for renewable fuel per year for each fuel supplier. In addition, the RLCFRR requires a 10 percent reduction in carbon intensity of fuels by 2020. The RLCFRR is expected to increase the overall demand for biofuels. As a result of the RLCFRR, the motor fuel tax exemption for biodiesel was no longer needed to incent the use of these fuels. In addition, with suppliers likely needing to vary the blend percentages on a seasonal andor regional basis to meet the RLCFRR, it would not always be possible to identify the exact proportion of renewable fuel in any given blend and therefore not possible to apply an exemption equitably under the Motor Fuel Tax Act and the Carbon Tax Act. Therefore, the motor fuel and carbon tax exemptions for biodiesel and ethanol were eliminated.

Convention Decision
Endorsed as Amended