Canadian Manufacturing

CN fined over $1M for importing diesel: fuel fell short of federal environment standards

Federal law requires fuel producers and importers to have an average renewable content of 2 per cent in diesel, and CN Rail pleaded guilty to importing fuel that didn't meet the requirement


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PHOTO: CN

MONTREAL—Environment and Climate Change Canada says that on May 14, the Canadian National Railway Company (CN) pleaded guilty to importing a fuel that does not meet the requirements of the Renewable Fuels Regulations.

The Renewable Fuels Regulations require fuel producers and importers to have an average renewable content of 5 per cent in gasoline and 2 per cent in diesel fuel and heating distillate oil, based on volume. A trading system is in place whereby renewable fuel compliance units may be traded.

An investigation conducted by Environment and Climate Change Canada found that—between July 1, 2011 and December 31, 2012—CN imported over 224,000,000 litres of diesel fuel. Under the regulation, 2 per cent of that volume should have been renewable fuel unless compliance units were acquired. Despite the compliance units acquired during that period, CN’s renewable-fuel deficit was 3,672,090 litres below the 2 percent requirement.

CN was fined $25,000 and ordered by the court to pay a sum of $1,101,627.

The fine and penalty will be directed to the Environmental Damages Fund administered by Environment and Climate Change Canada.


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