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VICTORIA – Government is stimulating investment in alternative energy and taking another step towards cleaner air through a new tax exemption for alternative fuel, Finance Minister Gary Collins said today.
Effective July 1, 2004, the ethanol and biodiesel portions of fuels blended with gasoline and diesel will be exempt from the provincial motor fuel tax. Ethanol and biodiesel are alternative fuels that reduce emissions and greenhouse gases. Ethanol is made from organic materials including corn and grain. Biodiesel is generally made from vegetable oils and animal fats.
A number of alternative fuels are already exempt from the provincial motor fuel tax. Today's amendments to the motor fuel tax regulations expand the exemption to the alternative fuel portion of low-level blends containing ethanol and biodiesel. Low-level blends are blends of clear gas or diesel and up to 25 per cent ethanol or up to 50 per cent biodiesel.
“This expanded exemption will help offset the higher costs of these ethanol and biodiesel blends and make them more competitive with conventional fuels,” said Collins. “It will promote the use of these fuels and stimulate the development of production facilities in British Columbia as more people choose alternative fuels.”
“B.C. has taken a leadership role in Canada by supporting renewable fuels with this tax exemption,” said Mike Boyd, projects director for WISE Energy Co-op in Victoria. “By encouraging the use of clean, sustainable fuel, government acts on its commitment to improve air quality. It also enhances local industry’s prospect of manufacturing the world’s fastest growing alternative fuels, biodiesel and ethanol, right here in B.C.”
“This commitment greatly assists the development of the Okanagan Biofuels project, as we endeavour to provide environmental solutions and highly skilled, sustainable employment for British Columbians,” said Richard Marshall of Okanagan Biofuels. “With its strong agricultural and technology base, B.C. is well positioned to take full advantage of a growing market for alternative fuels and establish our province as a leader in the emerging environmental economy.”
Government's intention to expand the exemption was announced in Balanced Budget 2004.
“By encouraging the use of cleaner alternative fuels, government is acting on its commitment to improve air quality,” said Bill Barisoff, Minister of Water, Land and Air Protection. “Cleaner air and a healthier environment mean a better quality of life for all British Columbians.”
For information on the alternative motor fuels which qualify for this exemption, visit the Ministry of Provincial Revenue website at www.gov.bc.ca/rev.
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