Ontario Establishes Renewable Fuels Requirement

Ontario Premier Dalton McGuinty recently announced that the province will require that gasoline sold in Ontario contain an average of 5 percent ethanol by 2007.

“This is another part of our plan to improve the health and prosperity of Ontarians,” said Premier McGuinty. “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.” 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 metric tons. 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 5 percent ethanol content. This may be accomplished by the actual blending of ethanol or through the trading of renewable fuel credits. The Canadian Renewable Fuels Association (CRFA) welcomed the announcement of a Renewable Fuels Standard (RFS) in Ontario. “With this announcement, all of Ontario can ride renewable,” said CRFA Executive Director Kory Teneycke. “The Renewable Fuels Standard is good news for consumers, it is good news for Ontario agriculture, and it is good news for the environment.” The RFS will increase the quantity of motor fuel sold in Ontario by 600 million liters (158.5 million gallons) per year. “Now that we will have the demand, the ethanol industry in Ontario is ready to deliver the needed ethanol,” said Bliss Baker, V.P. of Commercial Alcohols, which already runs Ontario’s largest ethanol plant in Chatham, Ontario.
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