On April 1, 2008, the Greenhouse Gas Reduction (Renewable and Low Carbon Fuel Requirements) Act ("Bill 16") was given First Reading in the British Columbia legislature. Bill 16 creates a regulatory framework that enables the province to require fuel suppliers to include a prescribed percentage of renewable fuel in the fuel they supply, and set the allowable carbon intensity of fuels, which will regulate the amount of carbon emitted per unit of energy in fuel. This makes make B.C. the first Canadian province or territory to adopt California's low carbon fuel standards. While Bill 16 is primarily aimed at suppliers of fuel used for transportation purposes, its framework allows for future expansion to encompass fuels used for other purposes.
Fuel suppliers can meet regulated targets by actual compliance with regulated standards, or by notional transfers to or from other fuel suppliers. Compliance reports, which may be audited, will be required. If passed, non-compliance with Bill 16 and its associated regulations may lead to administrative penalties or offences for the contravention of certain provisions punishable by fine, imprisonment, or both.
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