February 1, 2019

Clean Fuel Standard: Cost-Benefit Analysis Framework

The cost-benefit analysis (CBA) is part of a regulatory impact analysis statement (RIAS) that is published in the Canada Gazette along with regulations (and proposed regulations) to estimate the incremental benefit and cost impacts to society attributable to those regulations (and proposed regulations). The Government has announced that it intends to publish proposed Clean Fuel Standard (CFS) regulations for liquid fuels in spring/summer 2019 with final regulations planned for 2020 and a coming into force in 2022. Proposed CFS Regulations for gaseous and solid fuels are targeted for publication in the Canada Gazette, Part I in 2020 ith final regulations planned for 2021 and coming into force in 2023. This CBA framework deals with the liquid fuel stream design of the proposed CFS Regulations, and outlines the approach for the CBA as part of the RIAS that will accompany the 2019 publication of the proposed Regulations. It will compare a scenario in which there are no new CFS regulations (the baseline scenario), to a scenario in which the new regulations would set lifecycle carbon intensity standards on liquid fossil fuels produced and imported in Canada (the regulatory scenario). The impacts of the proposed CFS would be assessed in terms of incremental changes in compliance and administrative requirements, emissions and production, and the associated benefits and costs.