Mandatory ethanol demanded by SUMA

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Published: February 14, 2002

Saskatchewan urban governments want the province to make ethanol a

mandatory ingredient in motor fuel.

They say plant-based ethanol should make up at least five percent of

the volume of gasoline and diesel sold in the province. As production

increases, that should increase to 10 percent in gas and 15 percent in

diesel.

Saskatchewan energy minister Andrew Thomson told the Saskatchewan Urban

Municipalities Association convention that forcing the use of ethanol,

which is called a mandate, would have to be more widespread to make the

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federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million

industry strong.

“We are right now working through what the implications of doing a

mandate might be,” he said.

“Today, there is no market for ethanol here in the province.”

Saskatchewan would need only two 80 million-litre plants to service its

market. Plants of that size have proven to be the most economical.

The province would like the federal government to implement a national

mandate, which might provide export opportunities.

“Ottawa does not at this point believe they have a role to play,”

Thomson said.

More than 30 Saskatchewan communities have expressed interest in or are

actively working on proposals for plants.

SUMA delegates told Thomson the province should help the ethanol

industry, but not be directly involved.

“We’ve all heard of SaskPower and SaskTel,” he said. “We would not like

a SaskEthanol.”

Thomson replied that he strongly believes the industry should be driven

by the private sector.

Other resolutions passed by urban municipal councillors included one to

lobby federal transport minister David Collenette to change federal

legislation to allow joint use of railways.

They also want land use controlled to prevent cattle from contaminating

municipal water supplies. The resolution said the practice of feeding

livestock directly on dry or frozen waterways must be stopped.

Delegates defeated a resolution that would have forced RCMP officers to

live in the communities where their detachments are located.

The town of Shellbrook reasoned that host communities pay an additional

$15 per capita for policing, but don’t have the benefits of revenue

such as property taxes to help pay that cost when officers choose not

to live there.

About the author

Karen Briere

Karen Briere

Karen Briere grew up in Canora, Sask. where her family had a grain and cattle operation. She has a degree in journalism from the University of Regina and has spent more than 30 years covering agriculture from the Western Producer’s Regina bureau.

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