Cleaner Gasoline For Healthier Ontarians And A Healthier Economy
New Renewable Fuel Standard Will Help Clear The Air, Strengthen Rural Ontario And Boost Green Industries
CHATHAM -- The Province will require that gasoline sold in Ontario contain an average of five per cent ethanol by 2007, Premier Dalton McGuinty announced today.
"This is another part of our plan to improve the health and prosperity of Ontarians," said the Premier.
"Ethanol is a cleaner-burning fuel, so this means cleaner air. It's made from agricultural crops, so this will be a major boost for rural communities. And it's great news for ethanol producers, who can now move forward on new investments and jobs, helping to make Ontario a leader in the emerging bio-economy."
The Premier made the announcement with Minister of Agriculture and Food Steve Peters and MPPs Pat Hoy (Chatham-Kent-Essex), Bruce Crozier (Essex) and Maria Van Bommel (Lambton-Kent-Middlesex) at Commercial Alcohols Inc., Canada's largest ethanol plant.
Ethanol is a high-octane fuel additive made from agricultural crops. It is blended with conventional gasoline and results in cleaner fuel combustion and fewer emissions.
Ontario's 2007 target for ethanol would be equivalent to taking 200,000 vehicles off the road or reducing annual greenhouse gas emissions by about 800,000 tonnes. It has the potential to spark 3,000 new jobs and as much as $500 million in new investment in rural Ontario.
Effective January 1, 2007, a wholesaler's annual gasoline sales must achieve an average of at least five per cent ethanol content. This may be accomplished by the actual blending of ethanol or through the trading of renewable fuel credits.
The Province wants to encourage innovative, state-of-the-art technologies such as cellulose ethanol production, which uses the non-food portion of crops.
"Now that this policy is in place, we will work with farmers and industry to ensure this initiative benefits all Ontarians," said Peters.
"A stronger domestic ethanol industry can act as the springboard for a larger, bio-based economy that will bring new opportunities to Ontario."
Hoy and Crozier, who have worked on behalf of this policy for years as MPPs, said this is great news for farmers and rural communities.
"People in farming communities will see real benefits," said Hoy.
"It's a win for farmers, a win for rural Ontario, and a win for our environment," said Crozier.
"This is a boost for rural Ontario, but all Ontarians will reap the rewards of cleaner air and improved health," said Van Bommel.