International Trade committee  Yes, I would say that we need to look at the resulting change in trade patterns. In the case of biomass-based diesel, there is an existing blenders tax credit that's available to Canadian companies that export to the United States. That program will disappear at the end of 2024 to be replaced by the clean fuel production credit, which will mean that those Canadian companies will no longer have equal access to the U.S. market.

International Trade committee  We could have more jobs if these projects in Canada are actually finally built in Canada. There are a number of projects that have been announced, but at least the same number companies that are working on that haven't yet been announced. We're talking about investments of billions of dollars and 40-50 jobs per plant, that kind of thing, so there's big opportunity.

International Trade committee  I'm not sure the investment credits will be large enough to offset the threat posed by the subsidized production in the United States. We have a number of projects in development in Canada that have not yet reached a final investment decision. I'm sure the fact that the U.S. production will come into Canada subsidized, thus lowering the selling price that a Canadian producer will achieve, could have negative impacts on companies when they go to make that final investment decision.

International Trade committee  With production tax credits, for every litre you produce, you get funding. In the U.S., it goes through the tax system, but it's repayable, and they have direct pay, so it's a direct government incentive for every litre you produce. Investment tax credits are built around the amount of money that you've invested.

International Trade committee  Ten out of 10.

International Trade committee  Thank you to the chair, vice-chairs and committee members for having us here today to speak on behalf of Renewable Industries Canada, the national representative of Canada's first and foremost renewable fuel producers. My name is Don O'Connor. I'm a long-time technical adviser to Renewable Industries Canada on carbon policy.