SASKATOON, Saskatchewan,
December 20, 2006 - 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.
Jeff Howard / Alexandre Vovan
Backgrounder
ACTION ON RENEWABLE FUEL
WHAT IS RENEWABLE FUEL?
"Renewable fuel" is a broad
term that encapsulates a range of fuels made from renewable
resources such as agricultural crops and other organic
matter. These include ethanol made from grains, renewable
diesels such as biodiesel made from vegetable oils and
animal fats, as well as next-generation renewable fuels
under development made from non-food agricultural residues,
such as wheat straw, and forest biomass. Gasoline vehicles
made since 1980s can use up to 10% ethanol in gasoline,
and many diesel vehicle manufacturers include in the warranty
the use of 5% or higher biodiesel blends.
BENEFITS TO THE ENVIRONMENT AND TO CANADA'S
AGRICULTURE INDUSTRY
The transportation sector in Canada
accounts for more than 27% of the greenhouse gases emitted
in Canada each year. The new federal regulations will
require enough renewable fuel to reduce greenhouse gas
(GHG) emissions by about 4 megatonnes per year, the GHG
equivalent of taking almost one million vehicles from
the road. Grain-based ethanol results in life-cycle GHG
emission reductions of 30-40% compared to gasoline, and
biodiesel made from oil seeds results in life-cycle GHG
emission reductions of over 60% compared to conventional
diesel. Next-generation renewable fuels, such as cellulosic
ethanol, are expected to provide even greater environmental
benefits - up to 100% GHG reductions on a life-cycle basis.
Life-cycle values account for all GHG emissions resulting
from the production of the organic material, fuel production
and distribution.
Increased renewable fuels production
in Canada will increase the demand for feedstock and open
new markets for Canadian agricultural crops. Also, opportunities
for greater involvement in biofuels production facilities
will allow agricultural producers to become participants
in the value chain and increase their share of the benefits
from renewable fuels production in Canada.
The expansion of renewable fuels production
capacity will also create increased opportunities for
developing value-added co-products and help pave the way
for the eventual establishment of biorefineries that produce
a range of value-added products, beyond fuels and feed
production, from agricultural biomass.
Through development and implementation
of programs focused on agricultural participation in the
Canadian renewable fuels industry, the federal government
is ensuring that the 2010 and 2012 targets are implemented
in ways that result in the greatest possible benefit to
the agriculture sector, including through investment in
biofuels production facilities by agricultural producers.
REQUIRING USE THROUGH REGULATION
The Government intends to develop and
implement a federal regulation requiring renewable fuels.
This will be done under the Canadian Environmental Protection
Act, 1999 (CEPA 1999). Amendments to the Fuels Division
of CEPA 1999 are proposed under Canada's Clean Air Act
and are needed for an effective and efficient regulation.
The regulation will require an average
annual renewable fuel content of at least 5% calculated
based on the volume of gasoline, commencing in 2010. The
requirement could be met by renewable content in either
the gasoline or diesel/heating oil pools. Canada's New
Government also intends to put in place an additional
requirement for an average 2% renewable fuel content in
diesel fuel and heating oil, upon verification of renewable
diesel fuel use under the range of Canadian conditions.
This is intended to come into effect by no later than
2012. While gasoline is used almost entirely on-road,
a large share of the diesel fuel pool is not used for
transportation. The requirement of 2% renewable content
in the diesel and heating oil pool is approximately equivalent
to a renewable fuel content requirement for 5% for on-road
diesel fuel.
The requirement for 5% of gasoline will
amount to a requirement for about 2.1 billion litres of
renewable fuel per year in 2010; 2% of diesel fuel and
heating oil will require almost another 600 million litres
in 2012.
The regulations are expected to be complex
and take at least two years to develop. Design and implementation
of a regulation will require consultation with provinces,
territories, affected sectors and other stakeholders.
A Notice of Intent will be issued in early 2007, with
discussions, consultations and studies undertaken throughout
2007.
CAPITAL FORMATION ASSISTANCE PROGRAM
The Capital Formation Assistance Program
is a $200 million, four-year program designed to encourage
agricultural producers' participation in the renewable
fuels industry. The program will provide repayable capital
funding arrangements to renewable fuels projects based
on agricultural producers' contributions to the biofuels
facilities. It will also build on the existing Biofuels
Opportunities for Producers Initiative's technical feasibility
and business planning components by providing agricultural
producers with incentives for participation in new renewable
fuels production capacity, starting on April 1, 2007.
The individual capital funding arrangements
will be based on the level of producers' contributions
to eligible project costs and capped at the lesser 25%
of total project costs or a maximum of $25 million per
project. Measures will be in place to ensure participation
opportunities for all regions in Canada.
THE AGRICULTURAL BIOPRODUCTS INNOVATION
PROGRAM
The Agricultural Bioproducts Innovation
Program (ABIP) is a $145 million, five-year program designed
to promote research, development, technology transfer
and the commercialization of agricultural bioproducts,
including biofuels, in Canada.
The program will benefit farmers by
generating new agricultural knowledge and technology and
facilitating its transfer to those that can commercialize
these innovations for the benefit of farmers and others
in Canada's bioeconomy.
The program will support the establishment,
development and operation of bioproducts research networks
that focus on:
Feedstock production through the development
of crop platforms and cropping systems suitable for conversion
to bioproducts;
Developing effective and efficient technologies
for biomass conversion; and
Product diversification through technologies relevant
to production of bioproducts (e.g. industrial chemicals,
biomaterials and health products).
Through ABIP, each bioproduct research
network may receive a total of up to $25 million beginning
in 2007 and ending in 2011. Eligible network participants
include universities, the private sector, federal government
departments and agencies, and other public sector research
organizations.
Speech for the Honourable Rona Ambrose,
Minister of the Environment on Renewable Fuels
Innovation Place, Saskatoon, Saskatchewan December 20,
2006.
Thank you, Chuck. I can't think of a
better place than Innovation Place to talk about the next
steps Canada's New Government is taking to improve the
health of Canadians and our environment.
I'm pleased to be participating in an
event that underscores the natural link between economic
sustainability and environmental stewardship in Canada.
This is about the well-being and the future of our country.
And I am proud today to announce the
concrete actions our Government is taking to ensure that
Canadians will soon be using cleaner gasoline, diesel
and heating oil.
The initiatives we are announcing today
bring together some of the key hallmarks of Canada – a
rich history of agriculture, a tradition of scientific
and technological innovation, a no-nonsense business savvy,
and the will to constantly make this country a better
place.
Our Government understands Canadians'
concerns around the quality of the air we breathe. We
know that cleaner fuel means less air pollution and greenhouse
gases.
And we are continuing to act in ways
that will ensure we achieve cleaner air that will benefit
the health of Canadians and families for generations to
come.
We recently introduced Canada's Clean
Air Act and Clean Air Regulatory Agenda, which call on
all sectors of the economy to be part of the solution.
They contain a wide range of measures,
focusing on mandatory regulations that are focused on
outcomes and on achievable results. And they are based
on fairness.
While it is true we are setting long-term
goals, we are acting right now. Early in the New Year,
our Government will announce ambitious short-term targets
for air pollution and greenhouse gases, with sector-by-sector
regulations coming into force by 2010 – only three years
from now.
Today, I am here to announce this government's
intention to pursue regulations under the Canadian Environmental
Protection Act that will ensure gasoline, diesel and heating
oil become cleaner products, which will lead to cleaner
air.
Indeed, the increased use of renewable
fuels in gasoline, diesel and heating oil will result
in important environmental benefits, particularly in reducing
the emission of greenhouse gases.
That is why our announcement today is so important.
We intend to develop regulations that
will ensure gasoline contains 5% renewable fuels by 2010.
When Canadians fill up their cars with gasoline, they
should be filling up with cleaner fuel.
I am also pleased to announce that we
intend to develop regulations for diesel fuel and heating
oil to contain 2% renewable fuels by 2012. We can achieve
this by 2012 on the condition that we test and verify
that the new blended biodiesel fuel is safe and effective
for our Canadian climate and conditions. This testing
will get done through a program that our Minister of Natural
Resources Gary Lunn will put in place to demonstrate the
safety of renewable diesel.
The regulations are expected to be complex
and take at least two years to develop. Design and implementation
of a regulation will require consultation with provinces,
territories, affected sectors and other stakeholders.
A Notice of Intent will be issued in early 2007, with
discussions, consultations and studies undertaken throughout
2007.
The regulations I am announcing today
will have a real impact – reducing greenhouse gas emissions
by an estimated 4 megatonnes annually. Translate that
into something we can all relate to, and it is like removing
the equivalent of almost one million vehicles from the
road.
Beyond its obvious environmental benefits,
this requirement will help stimulate the growth of the
renewable fuels industry in this country. That means economic
benefits for farmers and rural communities across Canada.
I would like for a moment to discuss
the importance of Canada's Clean Air Act as it relates
to our ability to effectively regulate in the area of
renewable fuels.
Canada's Clean Air Act is an essential
tool in this government's commitment to achieving concrete
results on air quality and climate change in the short,
medium, and long-term.
This legislation will give us the means to put in place
new enforceable regulated requirements to reduce emissions
and take coordinated action to reduce air pollution and
greenhouse gases. It sets out important amendments to
the Fuels Division of the Canadian Environmental Protection
Act.
And passage of this act is critical
to allowing our Government to implement practical and
effective regulation of the blending of fuels.
It's important that we get the regulatory
design process launched right away. And you can expect
to see our Notice of Intent published in Canada Gazette
within the next few weeks.
Canadians recognize that Canada's New
Government is focused on decisive action and real progress.
Under the leadership of Prime Minister
Stephen Harper, we are taking meaningful steps to reduce
harmful pollutants in the air we breathe. And through
action – not words – we are moving beyond the rhetoric
and inaction of the past.
The initiatives announced today are
building blocks for the future economic and environmental
sustainability of Canada. And their benefits to Canada
and Canadians will be felt for generations to come.
Thank you. Minister Strahl ….
Federal Government Intercepts Hazardous
Waste in the Port of Vancouver
OTTAWA, December 20, 2006 – The Canada
Border Services Agency (CBSA) and Environment Canada (EC)
are working together to prevent the illegal exportation
of hazardous waste and hazardous recyclable materials
out of the Port of Vancouver. Since November 1, 2005,
the CBSA/EC team conducted 50 inspections of marine containers
destined for export outside of Canada. These inspections
resulted in a large number of detentions.
Highlights of CBSA/EC's joint initiative:
50 containers filled with approximately
500,000 kg of metal and plastic scrap originating from
across Canada were inspected and found to contain hazardous
waste or hazardous recyclable materials destined for export
to Hong Kong and/or China, allegedly in violation of federal
regulations;
The contents of several shipping containers
included waste electrical equipment which contained polychlorinated
biphenyls (PCBs). PCBs are toxic to both the environment
and human health;
Thousands of computer monitors and other
types of electronic waste (e-waste) were prevented from
being exported to Hong Kong and China;
CBSA assessed $50,801.00 in fines against
27 Canadian companies.
Companies and their officials, found
guilty of contravening the Canadian Environmental Protection
Act, 1999 under summary conviction, face a maximum fine
of $300,000, or six months in prison for each count and
under indictable conviction, a maximum fine of $1,000,000,
or not more than three years in prison.
