BC to Require Canadian Biofuels for Fuel Standards, Potentially Impacting US Imports

The provincial government has announced new regulations aimed at reducing the influx of subsidized US biofuel into BC’s market, while increasing the required renewable fuel content in diesel.

Starting January 1, 2026, BC’s five percent renewable fuel standard for gasoline and diesel must be met with Canadian-produced fuel. Additionally, the required renewable content in diesel will rise from four percent to eight percent by April 1, 2025.

“For too long, BC biofuel producers have operated in a market where their American counterparts benefited from subsidies that gave them a considerable competitive advantage,” said Energy Minister Adrian Dix. “By increasing the Canadian biofuel content in our transportation fuels, we will support local producers, protect jobs and reduce our dependence on foreign energy.”

The decision follows concerns raised by Prince George-based Tidewater Renewables, which warned that without government intervention, it could be forced to shut down due to competition from US biofuels benefiting from subsidies under the Inflation Reduction Act. The company produces up to 3,000 barrels of renewable diesel per day and sells emission credits under BC’s low-carbon fuel program.

Tidewater Renewables CEO Jeremy Baines welcomed the announcement, calling it “a good first step in levelling the playing field with imported biofuels that take advantage of overlapping foreign and Canadian policies.” However, he emphasized the need for further measures to stabilize the sector.

Critics argue the new regulations may not fully resolve market imbalances. Tidewater Midstream’s chief financial officer, Ian Quartly, said that while the policy change is helpful, “a lot of US renewables will still come into the market, which will continue to make it a challenging environment.”

The policy shift comes amid growing economic tensions between Canada and the USA, particularly over trade. The move to prioritize Canadian biofuels is part of a broader provincial effort to shield industries from American subsidies and trade practices that BC officials say distort competition. Just weeks earlier, the provincial government established a task force on agriculture and food security in response to US tariffs that threaten BC’s farming and food processing industries. Premier David Eby said the task force was necessary to protect the province’s economic stability, echoing concerns now being raised by the biofuel sector.

Looming American tariffs have put pressure on Canadian industries ranging from steel and aluminum to energy and consumer goods. Trade experts warn that without a cohesive strategy, Canada risks falling further behind in industries that depend on access to the US market. The Greater Vancouver Board of Trade has cautioned that businesses are already seeing reduced orders, supply chain disruptions, and rising costs due to the economic uncertainty.

The policy shift also comes amid political pressure. Conservative Prince George-Mackenzie MLA Kiel Giddens introduced a private member’s bill calling for a crackdown on US biofuels just one day before the government’s announcement. Giddens warned that delays in action could have resulted in Tidewater Renewables shutting down, costing 165 jobs in Prince George.

The government has stated that it has been working with BC biofuel producers and suppliers to ensure the policy minimizes price impacts. However, details on enforcement and additional measures to prevent US biofuels from continuing to undercut Canadian producers remain unclear.