National Biomass Ethanol Programme

A National Biomass Ethanol Programme was introduced in late 1994 that makes a repayable line of credit available to registered ethanol producers, in the event that changes in the future tax treatment of fuel ethanol and other factors affect the economic viability of ethanol plants. The capitalisation of this programme is $65 million. The funding of this programme and the excise tax forgiveness are in addition to the governments Efficiency and Alternative Energy funding. Several provinces have reduced or removed the provincial motor fuel tax for alternative fuels, including ethanol. As an example, one of the fastest growing markets for fuel ethanol is in Ontario where the province does not apply the 14.7 cent/litre motor fuel tax to ethanol. This tax forgiveness is guaranteed for the ethanol production of new plants in Ontario through 2010.

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