Should Fuel Suppliers Get More Time to Meet Ontario's Domestic Biofuel Rules?

Official title: Amending Ontario's Cleaner Transportation Fuels Regulation to Increase Compliance Flexibility for Domestic Content Requirements

Closed Regulations & Permits Economy & Jobs Environment & Climate Transportation
Ontario changed its fuel rules mid-year to require suppliers to source more biofuel from Canadian producers. Many suppliers said they couldn't comply in time because they'd already signed contracts with foreign suppliers. The government approved a fix: suppliers can now combine their 2025 and 2026 requirements, giving them an extra year to meet the domestic content rules.

Why This Matters

Fill up your car in Ontario? The gas and diesel you buy must contain a certain percentage of renewable fuel. This rule change is about where that renewable fuel comes from. The goal is to support Canadian biofuel producers and keep jobs here, especially as U.S. subsidies change.

What Could Change

This amendment is already in effect. Fuel suppliers now have until the end of 2026 to meet the domestic content requirements that were supposed to apply in 2025. The same total volume of domestic biofuel will be required—just over a longer period. Future compliance years won't be combined this way.

Key Issues

  • Should fuel suppliers get an extra year to meet domestic biofuel sourcing requirements?
  • How to balance supporting Canadian biofuel producers while giving suppliers time to adjust their contracts?

What Happened

The amendment was approved and is effective immediately as of December 15, 2025. Fuel suppliers can now defer their 2025 domestic content compliance requirements to 2026, combining both years into a single compliance period. Suppliers must track their domestic content volumes so any 2025 deficit carries forward to 2026. The compliance form will be updated to reflect this option.

Key Documents