The BC government announced Thursday, Feb. 27, that it is immediately expanding the required renewable portion of diesel sold in the province to 8 per cent from 4 per cent, and will require that renewable diesel come from Canadian sources, effective April 1. These moves are being celebrated by the operator of a Prince George-based refinery.
The announcement was made in Victoria just after noon by Energy Minister Adrian Dix, who said it was in response to challenges raised by BC-based producers about their inability to compete with heavily subsidized American renewable diesel.
The 5 per cent renewable requirement for gasoline sold in BC must also come from BC sources, effective Jan. 1, 2026.
“Our approach is designed to support the entire industry and create a balanced, competitive marketplace,” Dix said.
“This is about building a cleaner, stronger, and more self-reliant BC. It’s about seizing the opportunity to lead on biofuels while supporting families through good-paying jobs that strengthen local economies, especially in this case, in Prince George.”
Dix also noted that the move comes at a time when trade relations with the United States “— and this is an understatement — are not stable.”
The move is a departure from the solution proposed by Prince George-Mackenzie Conservative MLA Kiel Giddens, who introduced a private member’s bill on Feb. 26 to reduce the subsidies American producers receive in BC. by the same amount they receive in the U.S.
Tidewater Renewables, which operates a renewable diesel refinery in Prince George, warned late last year that it would have to shutter its operations by March unless the uneven playing field was addressed.
When Dix and Premier David Eby visited Prince George for the B.C. Natural Resources Forum in January, they said they met with Tidewater representatives to discuss their concerns.
Joining Dix to address reporters was Tidewater Chief Financial Officer Ian Quartly, who said his company welcomed the move.
“Tidewater Renewables welcomes the proposed changes to the Low Carbon Fuels Act that Minister Dix announced today, specifically the increase in the renewable fuel requirement for diesel from 4 per cent to 8 per cent and the requirement that the renewable content of diesel be produced in Canada,” Quartly said.
“These changes provide a positive first step toward supporting an economically viable domestic renewable fuels industry. We will continue to work collaboratively with the government on further changes needed to strengthen the demand for locally produced renewable fuels.”
However, Quartly also said U.S. renewables would continue to enter the B.C. market, which will continue to pose challenges.
Quartly did not provide a direct answer when asked if the changes would prevent the Prince George refinery from closing.
Speaking to The Citizen hours after the announcement, Tidewater CEO Jeremy Baines said the company would have to evaluate the impact of the changes before deciding whether its Prince George refinery was viable enough to continue operations. However, he was “cautiously optimistic” that the changes would address the trade imbalance.
He said that of the two diesel-related aspects of the announcement, the requirement that the mandatory portion of renewable diesel come from Canadian sources was the more important part for his company.
Last year, Baines said a rough estimate indicated that the percentage of diesel sold in BC. as renewable was high, with the majority of the renewable product coming from the U.S.
“This is helpful, but I’m not sure it’s enough to fix the unlevel playing field and ensure our ability to compete in a fair trade environment,” Baines said.
Tidewater is continuing to pursue a trade case against the U.S. to try to get import levies placed on American renewable diesel and is also working with the federal government for other actions, though Baines said the prorogued Parliament was impeding progress on that front.
He said it would be a “good outcome” if Giddens’ bill were still passed, as he’s concerned the NDP’s solution doesn’t mandate a high-enough amount of Canadian product.
Commenting on why the province didn’t go the route suggested by Giddens, Dix said part of the problem stems from subsidies introduced in the Inflation Reduction Act passed under the Biden administration.
By increasing the size of the BC market through expanding the renewable diesel content, Dix said it gives space to Tidewater and other companies to enter the market without taking on risks, should the Biden-era policies be removed under the current administration.
Another factor is that, as an opposition MLA, Dix said Giddens is limited to using private member’s bills to advance his goals, whereas Dix has a different set of tools available as minister.
“I appreciate Kiel’s contribution,” Dix said. “We’ve talked about it, and well, I don’t agree. We’re not using the same measures as him because we don’t think those measures would be effective in this moment. What he’s trying to do is what we’re trying to do — which is address climate change, support jobs in BC, and support jobs in Prince George.”
Giddens attended Dix’s press conference and was thanked for his advocacy on the issue.
Reached by phone from Victoria later in the day, Giddens said he was trying to use his position in opposition to raise attention to this particular issue because Prince George families were at risk of losing their jobs, and it was a good day because it was being addressed.
“I’m glad that finally, after pushing this, we were able to get some action because this is important for Prince George, both from a jobs perspective and also for energy security for BC as a whole.”
Despite the announcement, Giddens said his bill will remain on the order paper for the current legislative session, which started earlier this month.
He said he would be receiving a briefing from the Ministry of Energy’s low-carbon fuels branch later that day to ensure the problem was adequately addressed. He also said he had spoken with Tidewater to get their perspective.
Should he feel the problem has been addressed, Giddens said he could choose not to call the bill for second reading. If not, he can still bring it up for debate.
Going forward, he said he wants to make BC an easier place to do business in, as he believes current regulations, permitting processes, and taxes make it difficult. In the upcoming provincial budget, he said he’s looking for measures that will advance that file.
He also wants to see capital funding laid out for the acute care tower expansion at the University Hospital of Northern BC, as only funding for the parkade has been allocated so far.
On the health-care front, Giddens said he also wants to address hospital closures in Mackenzie, which he raised in the legislature on Thursday, Feb. 27.
In the last month, he said he was able to open his Prince George constituency office at 1023 Central St., in the space previously occupied by his predecessor, Mike Morris, though signs have yet to be put on the building. Those wishing to speak with his office can call 250-612-4194.
