Section 526 Update:Dont Ask, Don't Tell

Just a year ago, Michael Wilson, the Canadian Ambassador to the US, wrote Robert Gates, then and now the US defense secretary, urging against the broad application of Section 526. The provision prohibits government agencies from purchasing alternative fuels from non-conventional sources with greater lifecycle greenhouse gas emissions than fuel from conventional sources.

While oil sands production does have a larger carbon footprint than production from conventional sources, Canadian officials argue that it should not be considered an alternative fuel and note it is processed in conventional oil facilities.

Canada would not want to see any expansive interpretation of Section 526, Wilson wrote "which would then include commercially available fuel made in part from oil derived from Canadian oil sands." Canada is the largest supplier of crude to the US, most of which comes from oil sands.

Among others, Prentice met with Representative Henry Waxman, Democrat-California, who has said that Section 526 covers oil sands; and Senator Jeff Bingaman, Democrat-New Mexico, who said that was never the intention.

However, the subject didn't come up, Prentice said. "It was not raised with me in the time that I've been here. It has not been the focus of discussions with anyone who I've met with. Frankly, the subject of the oil sands was raised briefly and only in passing and not often."

Can it be assumed, Prentice was asked, that Section 526 is "not a major concern at this point?"

"You would have to make whatever assumptions you think are appropriate," he replied.