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Business: Industrial

ecoENERGY for Biofuels Program

Overview
News and Updates
Background
About the Program
About the Incentive
Definitions
Eligible Recipients
Application Requirements
Successful Applicants
Questions and Answers
Related Links
Previous Program Design

ecoENERGY for Biofuels – About the Incentive

The ecoENERGY for Biofuels Program is aimed at helping producers of renewable alternative(s) to gasoline and/or diesel by providing financial incentives. Financial incentives are provided for the number of litres produced in Canada and sold, based on fixed declining incentive rates established by the Program and as agreed upon in each Contribution Agreement.

How are the incentive payments calculated?

Incentives will be calculated separately for renewable alternatives to gasoline and diesel by taking into consideration eligible sales and incentive rate, as follows:

Incentive = Eligible Sales (L) × Incentive Rate ($/L)

What does the incentive formula mean?

Eligible Sales:

The portion of total sales, in litres, of renewable alternatives to gasoline and/or diesel that is produced in Canada and accepted under the Program for an incentive and sold by the proponent during the reporting period.

Incentive Rate:

Fixed declining rates are established by the Program. Rates start at $0.10 per litre for ethanol and $0.26 per litre for biodiesel and decline thereafter as described in the table below:

Incentive Rate ($ per L)
Fiscal Year* 2008
-
2009
2009
-
2010
2010
-
2011
2011
-
2012
2012
-
2013
2013
-
2014
2014
-
2015
2015
-
2016
2016
-
2017
Renewable
Alternatives
to Gasoline
0.10 0.10 0.09 0.08 0.07 0.06 0.05 0.04 0.03
Renewable
Alternatives
to Diesel
0.26 0.24 0.20 0.18 0.14 0.10 0.08 0.06 0.04
* April 1 of a year to March 31 of the following year.

What are the basis and timing of payment?

Proponents can elect to be paid monthly or quarterly. Incentive payments will be made following receipt of monthly claims submitted to NRCan. Every six months a more comprehensive claim for payment report and a complimentary information spreadsheet is needed. Claims submitted must include verifiable amounts of eligible sales in litres (as certified by a duly authorized officer and as defined in the Contribution Agreement) and revenue (sales) information.

When does the Program start to recognize eligible Sales?

Recognition of eligible sales is from the first day of the month in which an applicant is deemed eligible under the Program.