New regulations requiring an ethanol content in gasoline of at least five percent will take effect by September, the federal government announced last week.
The proposed new rules will be published in the Canada Gazette and that will launch a 60-day comment period.
“We are fulfilling the commitment we made in 2006 to regulate renewable fuel content in gasoline and have developed draft regulations following consultations with industry, provinces and stakeholders,” environment minister Jim Prentice said in a news release.
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He said that when later regulations on biofuel content in diesel are enacted, the combined effect of federal and provincial biofuel rules will be “about the equivalent of taking one million vehicles off the road.”
Agriculture minister Gerry Ritz said the announcement should attract investment into the industry.
“This regulation will provide the certainty needed for the renewable fuels industry to make investments that will create new jobs and provide new market opportunities for farmers.”
At Grain Growers of Canada, executive director Richard Phillips agreed.
GGC, which has been advocating for a strong biofuel mandate, has been frustrated by Conservative government delays.
Legislation to require mandatory biofuel content was approved by Parliament several years ago.
Grain Growers president Doug Robertson from Alberta said in a news release the announcement will strengthen demand for grains and oilseeds.
“This is a smart policy that will create jobs for Canadians, increase opportunities for our farmers and make our transportation industry more environmentally friendly.”
If during the public consultation, there are recommendations for change in the proposed regulations, the government should deal with it quickly, he said.
“There is a short window for financing the processing plants and we can’t afford to wait much longer.”
In a 2007 farmer survey by Farm Credit Canada, more than 16 percent of respondents said they considered demand for biofuel feedstock to be the “greatest opportunity in agriculture.”
In late 2009, FCC asked the same question and found the response to be little more than five percent.
