ETHANOL FUEL ACT PASSES

Released on June 20, 2002

Saskatchewan has become the first province in Canada to establish the legal

framework to allow for mandating an ethanol blend in gasoline sold in the

province.



The Ethanol Fuel Act received Royal Assent in the provincial Legislature

today.



"This is a very significant step forward in our efforts to work with the

private sector to develop a vibrant ethanol industry and create new jobs in

rural Saskatchewan," Industry and Resources Minister Eldon Lautermilch

said. "We are taking the lead in Canada by demonstrating our commitment to

growing this important industry."



Lautermilch noted that The Ethanol Fuel Act will not come into effect until

the industry has had a chance to develop. "The existing industry does not

have the capacity to supply enough ethanol to meet our consumption needs.

Therefore, we need to allow the industry time to establish the capacity

within Saskatchewan."



The Ethanol Fuel Act is one component of the government's Greenprint for

Ethanol Production strategy released in March. In addition to approving

legislation to permit the mandating of ethanol-blended gasoline in

Saskatchewan, the government will also:



effectively eliminate the provincial fuel tax on ethanol produced

and consumed in Saskatchewan by way of a rebate;



call on the federal government to legislate a mandatory blending of

ethanol gasoline in Canada;



work with the federal and provincial governments to remove barriers

on ethanol exports;



work with investors, communities and proponents to encourage the

establishment of ethanol facilities in the province; and



work with wholesalers and retailers to develop a market for ethanol-

blended fuel in Saskatchewan.



"Saskatchewan is ideally suited to ethanol expansion," Lautermilch

said. "Our strategy will help create new jobs and investment in rural

Saskatchewan."



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For more information, contact:



Janet Peters

Industry and Resources

Regina

Phone: (306) 787-1691