Mr. Speaker, many questions have been raised about the legislation now before the House. In some cases the debate has obscured what really is at stake. I would like therefore to try to answer some of the questions to give members a clear picture of the issue.
First, we have heard about the harm MMT causes to pollution control equipment in vehicles. Does this not have a plus side? Ethyl corporation is the producer of MMT. According to this company the use of MMT allows less intensive refining, thereby reducing emissions from the refineries. Ethyl corporation also maintains that MMT reduces tailpipe emissions of nitrogen oxide by up to 20 per cent and lowers toxic benzene emissions. If so, what is the point of banning such a useful additive?
Let us take the question of refining. It is true that MMT allows less intensive refining. In 1992 a report was prepared for Ethyl Canada. It indicated that if the additive were banned Canadian refineries would emit 40 to 50 tonnes more of nitrogen oxide per annum and 34 to 43 more kilotonnes of carbon dioxide. Those amounts represent 0.0025 per cent of our yearly emissions of nitrogen oxide and 0.01 per cent of our carbon dioxide emissions. Such slight increases are clearly minuscule.
What then about emissions from vehicle tailpipes? The data collected by Ethyl corporation showed an average reduction in nitrogen oxide emissions with MMT of up to 20 per cent. But the figures were for a test fleet of well maintained vehicles, whereas the actual Canadian cars are not on average as well maintained. If we put the findings into the context of the current Canadian cars, another analysis indicates that MMT causes a much smaller reduction in nitrogen oxide emissions, no more than about 5 per cent.
As for toxic benzene emissions, these should not increase as a result of the banning of MMT. Gasoline can be refined to limit its benzene content. This past July the Minister of the Environment announced that she intended to regulate benzene levels in gasoline to a maximum of one per cent per volume. The regulations would also limit any increase in the amount of aromatics in gasoline.
MMT has been used as an octane enhancer in gasoline, but the oil refining industry has various options for replacing it. These options should still limit the benzene content. For example, the refining process could be changed to produce higher octane gasoline constituents. Along with or instead of that, other octane enhancers are available such as ethyl and MTBE.
This raises another question: Are we banning MMT to promote the use of ethanol? The answer to that is no. Ethanol is only one option for replacing the octane now provided by MMT. There are other options available, and it is up to the petroleum industry to make that choice.
What about the financial costs? Some wonder whether MMT removal would place a heavy financial burden on the oil industry or consumers. According to the industry's own estimates, the cost would translate to an increase of approximately 0.1 cents to 0.24 cents per litre, a minor amount, especially considering the normal day to day price fluctuations we see at the fuel pump in the order of a few cents per litre.
Other questions have been raised about the studies that provide the basis for the legislation. Why, it is asked, are we accepting the word of the auto industry, which is surely an interested party in the dispute. Why do we not make use of independent studies? The fact
is there have been no independent studies to determine the effect of MMT on emissions control systems. The research has been sponsored either by the auto makers or by Ethyl for the oil producers.
Some would ask why Environment Canada has not sponsored or conducted its own research. The department has sought technical opinions from two outside experts, one of whom was called on by both industries to participate in joint discussions. Both experts agreed that we do not have conclusive data but that MMT tends to affect emissions performance and increase costs.
To go further and conduct a government study of the issue would simply use up taxpayers' dollars and delay the introduction of new pollution control technology into Canada. We cannot afford to do that. Both industries have done their work and studied the issue. It is now time for a decision. Some might ask why that must be a government decision; why not leave it to the industries concerned to arrive at their solution? That is exactly what we have been trying to do for more than two years, but so far that approach has not succeeded.
Senior officials from four federal departments have met with representatives of the oil and auto industries. I would stress this about four federal departments because the previous speaker suggested we should be talking among the different departments and getting answers. This minister has spoken to and worked with four federal departments. More recently the Minister of the Environment attempted personally to negotiate an agreement. All these efforts have failed. We have no alternative but to legislate the necessary changes.
Still another question concerns actions on MMT in the United States. In the last months we have seen moves to reintroduce its use there. Most recently, this past October 20, a United States Court of Appeal decision ordered the Environmental Protection Agency to grant Ethyl corporation registration for the use of its MMT additive in unleaded gasoline.
Why are we banning MMT in Canada when the United States seems to be lifting its almost 20-year old ban on MMT? After all, part of the argument made against MMT is that we must harmonize our emissions control approach with that of the Americans. Are we not in danger of remaining out of step if we pass the legislation?
MMT prospects in the United States remain cloudy. The EPA could appeal the October 20 ruling or attempt other legal action. Major refineries might be reluctant to adopt MMT until uncertainties are resolved about the health effects associated with widespread use of the additive. Furthermore, the auto industry could launch its own challenge.
Even if none of that happens, about one-third of the U.S. gasoline market including California requires reformulated gasoline to meet more stringent air quality requirements. MMT is still not allowed in reformulated gasoline, which can be expected to claim a growing share of the U.S. market in the coming years as the country moves toward cleaner fuel.
California has gone so far as to expressly prohibit the use of MMT as a gasoline additive. This U.S. state is a world leader in emission control strategies. The example it sets is widely followed throughout North America and beyond. We should carefully consider the approach of California. It could well become the benchmark for tomorrow.
Another question asked is what is the rush. Why do we not wait for the doubts to resolve themselves? Why should we intervene now when the issue is still unclear and evolving? The answer is that the issue will never be settled to the entire satisfaction of both the auto and oil industries. Doubts are bound to persist, but there is sufficient evidence now to make an informed decision. This the two industries have been unable to do themselves, even though we gave them plenty of time in which to do it. The voluntary approach has failed so we must be prepared to turn to legislation to achieve a solution.
For those who have raised doubts and questions, I have some questions myself. In a time of budgetary constraints can we justify spending government money to duplicate studies already carried out by the private sector? Can we justify a delay in introducing state of the art emission control technology in Canada? Can we justify the extra expense consumers will bear if MMT continues to be used as an additive in Canada? Would there be considerable cost for industry or consumers if MMT is banned? Would there be a notable harmful environmental impact? Is MMT likely to have a place in the cleaner fuels of the future? After more than two years of discussion is there any likelihood that the industries concerned could reach agreement in the near future on MMT use? Is there any real alternative left except legislation?
I believe that the answer to all these questions is self-evident. Equally obvious is that the time has come for Parliament to exercise its obligation and legislate an end to the use of manganese based additives in gasoline. That is what Bill C-94 does. The measure is pro-environmental, pro-consumer, pro-investment and pro-business. It is time for the House to face the facts and pass the legislation.