The Canadians are up in arms again over energy policy—this time the U.S. policy.

Since synthetic crude derived from Canadian oil sands is categorized as unconventional fuel, it could have an effect on future exports to the U.S., according to analysts at A.G. Edwards, a division of Wachovia Securities.

The Energy Independence and Security Act of 2007 places limits on the U.S. procuring alternative fuels whose life-cycle greenhouse-gas emissions are greater than those generated by conventional fuel coming from conventional sources.

Canada wants the law interpreted while President Bush is still in office, since a strict interpretation could limit Canadian exports, the analysts report.