An oil industry executive says Ottawa’s plan to implement a five percent mandate for ethanol in gasoline next year cannot be met.
Peter Boag, president of the Canadian Petroleum Products Institute (CPPI), recently told the House of Commons agriculture committee that bureaucratic delays have made the deadline impractical.
“As a result of the delays encountered since December 2006 publication of the (notice of intent), the majority of CPPI members will be unable to meet a five percent renewable mandate for gasoline beginning in January 2010,” he told MPs.
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“This is a fixable problem, but it will involve some compromise and creativity. In terms of timing, I suggest a 2012 implementation period for both the five percent renewable content in gasoline and the two percent biodiesel would be more appropriate. At a minimum, a flexible and phased approach will be required.”
The biofuel lobby was having none of it.
Sitting at the same committee table, Canadian Renewable Fuels Association president Gordon Quaiattini insisted the original timetable be kept.
He said the biofuel industry will be a godsend for rural and agricultural Canada with new grain and oilseed sales opportunities for farmers and thousands of jobs for rural Canada.
“The environmental and economic development opportunities that we have outlined will only be realized by ensuring the 2010 commitment to implement the (ethanol mandate) is kept,” he said.
“The renewable fuels industry stands ready to work co-operatively with all stakeholders in a transparent and accelerated consultative process to get the job done.”
He told MPs renewable fuel is a promised land for rural Canada.
“In these difficult times, I appear before you today with a message of new opportunity, new hope and new growth,” he said.
“Renewable fuels are now and in the coming years a story of new economic opportunity for Canadian farmers and rural Canada. Renewable fuels are creating new markets for agriculture producers, revitalizing communities, reducing harmful greenhouse gases and offering consumers new choice at the pump.”
He called for more government support for the industry, insisting it would be an investment rather than a subsidy.
Ontario Liberal Francis Valeriote raised the criticism that ethanol is not the environmental panacea promoters claim because of the carbon emitted in planting, harvesting, transporting and processing the crop.
Quaiattini, however, said a recent study showed that after taking all that into account, biofuel still reduced greenhouse gas emissions by 55 percent compared to fossil fuel.
