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INCREASED ETHANOL IN FUEL MAY 1ST, 2005

Released on June 10, 2004

Regulations on new dates and percentages for increased ethanol content in Saskatchewan fuel came into effect June 9th.

The regulations specify that effective May 1st, 2005 automotive gasoline will have a minimum average ethanol content of 2 per cent, rising to 7.5 per cent on November 1st, 2005.

"The regulations are positive news for prospective Saskatchewan producers," Industry and Resources Minister Eric Cline said. "This gives them a firm timeline on which to base their construction schedules and their production targets. We've given them the tools, the regulatory framework they need to grow."

"Ethanol is only one piece of a much larger puzzle," Cline said. "Ethanol and other biofuels are 21st century fuels. Ethanol use is increasing across North America and around the world. Alternative fuel sources are only going to grow in importance over the long term."

The regulations are an extension of the Greenprint for Ethanol Production in Saskatchewan, the plan for increasing Saskatchewan's production and use of alternative fuels.

"We share with industry the goal of a smooth implementation process for Greenprint, and a smooth transition as energy production and consumption patterns change," Cline said. "We will continue to value industry's input and expertise in bringing this about."

The Ethanol Fuel (General) Amendment Regulations were approved by Cabinet June 8th and filed with the Registrar of Regulations June 9th, 2004. Regulations formally come into effect upon filing with the Registrar. The General Regulations specify the revised dates and percentages.

The Ethanol Fuel (Grant) Amendment Regulations were also approved by Cabinet and filed with the Registrar. The Grant Regulations provide distributors with a 15 cent per litre grant for ethanol purchased from Saskatchewan ethanol producers and blended in automotive fuels distributed within the province.

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For More Information, Contact:

Roy Schneider
Industry & Resources
Regina
Phone: (306) 787-9694

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