December 20, 2006

SASKATOON, Saskatchewan - Canada's New Government today took further action to combat climate change, announcing it would regulate the use of renewable fuels in Canada and deliver $345 million to assist farmers and rural communities seize new market opportunities in the agricultural bioproducts sector.

The Honourable Rona Ambrose, Minister of the Environment, announced the Government would regulate an annual average renewable content of five per cent in gasoline by 2010. She added the Government intends to regulate a two per cent requirement for renewable content in diesel fuel and heating oil by 2012.

“Our Government understands Canadians' concerns around the quality of the air we breathe. We know that cleaner fuel means less pollution,” Minister Ambrose said. “Requiring the use of renewable fuels fulfills a commitment by our government. Through these regulations, we are keeping with our approach toward meaningful action, and we will ensure that our objectives are met.”

The Honourable Chuck Strahl, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board, announced $345 million for two agriculture programs that will help bolster the development of biofuels and other bioproducts. The Agricultural Bioproducts Innovation Program and the Capital Formation Assistance Program for Renewable Fuels Production are designed to create new market opportunities for Canada's agricultural producers.

“Advancing Canada's bio-based economy is a priority for Canada's New Government,” said Minister Strahl. “These programs are an important step in achieving the government's objective of five per cent renewable content in transportation fuels by 2010, while also creating new economic opportunities for our farmers and agricultural sector.”

“This is a win-win-win situation,” added Minister Ambrose. “Canadians will reap environmental benefits, our farmers and rural communities will profit, and by continuing to work towards a viable domestic biofuels industry we will secure Canada's place in the growing bio-economy.”

Of the $345 million:

• $200 million through the Capital Formation Assistance Program for Renewable Fuels Production will provide producers with incentives for participation in new renewable fuels production capacity; and
• $145 million through the Agricultural Bioproducts Innovation Program will provide support for cross-sector research networks conducting scientific research and development related to the advancement of a Canadian bio-based economy.

Biofuels are a renewable energy source produced from organic materials. Bioproducts are manufactured from renewable resources such as agricultural crops and organic residual matter, and include products such as biofuels, biofibres and biopharmaceuticals.

Additional information about these Agriculture and Agri-Food Canada programs and how to apply is available at www.agr.gc.ca.

• Action on Renewable Fuel