OTTAWA – Leon Benoit, Member of Parliament for Vegreville-Wainwright saw the results of his continued lobbying for tax incentives for the renewable fuels program in this week’s Conservative budget.

“This budget is a big boost for farmers, home-grown biofuels producers, and our environment,” says Benoit. “The renewable fuels operating incentive program will provide the stability and support necessary for a domestic ethanol and biodiesel industry to flourish, and allow for the commercialization of next generation biofuels such as cellulose ethanol.”

Benoit has worked within the Alberta Caucus, and directly with the Finance Minister and the Prime Minister to ensure that these issues were heard, and understood. “These measures were key for farmers in Alberta, and across Canada,” explained Benoit. “It was extremely important that this Budget address these issues, and I was very glad to see that our efforts were successful.”

The renewable fuels producer payment program should lead to over 20 new world-class biofuels facilities in Canada, create over 14,000 new jobs in rural communities, and provide a new market for over 200 million bushels of Canadian grains and oilseeds.

The Budget provides $2 billion in incentives for renewable fuel production over the next seven years. “The operating incentive program will provide $0.10 cents/litre for domestic renewable gasoline production (ethanol) and $0.20 cents/litre for domestic renewable diesel production (biodiesel) for the first three years, then decline thereafter,” explains Benoit. “There is also $200 million for capital grants to encourage farmer participation, and $21 million for the BOPI program for biofuels feasibility studies. A key component of our package is an accelerated capital cost allowance, similar to what the oil-sands received when they were first developed.”

“We have really delivered for farmers our rural communities and for the environment with these measures.” Benoit concluded.

For more information on the biofuels portion of the budget, refer to pages 70-71 of Budget 2007.

For more information: (613) 992-4171 or (780) 763-6130