Natural Resources committee  Mr. Chairman and the committee members, I would like to thank you very much for the opportunity to discuss innovation in our energy sector, an important issue that is closely linked to biofuels development in Canada. Domestic renewable fuel production strengthens our economy, protects the air we breathe, and plays a key role in securing and diversifying our energy future.

Finance committee  I agree with many of the parts of your question, but there's some of it that I don't agree with. I think the government has done a lot, particularly for the renewable fuels sector. The program I'm talking about is a very modest change. Applications were made for reasons that are unique to each one of the individual applicants.

Finance committee  Sure, and let me be clear: if it wasn't for the government's investment in the renewable fuel strategy, our association wouldn't exist. It is important, this government's investment. The ethanol expansion program was the first step. Using the ethanol expansion program, we built out several ethanol facilities in the country.

Finance committee  We have 23 member organizations.

Finance committee  Our association is strongly opposed to any program that would add cost to businesses, consumers, or, most importantly, make farming more expensive. We're in favour of what the current government is doing on the reduction of anthropogenic gases, and that's a sector-by-sector approach that is reasonable and logical for those individual sectors.

Finance committee  It is absolutely true. We look forward to a time when that logistical chain is shortened significantly and we'll see that value-added upgrade happen right here in the country. The renewable fuel standard was introduced by this government, and industry just hasn't caught up to it yet in terms of developing the build-out required to meet that need.

Finance committee  Well, it's time and then reopening the program to ensure that the most viable projects can go forward. But absolutely, it could and should happen.

Finance committee  Absolutely, and thank you very much for the question. Some of my member companies are currently looking at that next generation of technology. For the most part, this next generation is going to be feedstock agnostic. So whether it's waste from agriculture or whether it's traditional pulp and paper products, or the waste from those products, these can go into what we would call a cellulosic ethanol.

Finance committee  I'd preface my remarks by saying that the decision made by Iogen and its partners was an independent decision, a business decision, and it was based on the global assets of the entire company. They had assets to be deployed in other parts of the world. The recommendation I would give this committee is to start with the operating incentive of 15¢, which is something we are competing with in other jurisdictions.

Finance committee  Absolutely. I share your sentiment as it relates to the Iogen technology. That technology will find its way back into Canada, there is no doubt about that. And Shell is also one of my member companies, so I'm in a somewhat precarious situation. In all seriousness, absolutely, we would like to see the ecoEnergy fund reopened, the $500 million, to ensure that we get the most viable projects going forward.

Finance committee  No pun intended.

Finance committee  Actually, I can answer that question. Part of the renewable fuels strategy introduced by this government was to set a goal of a four-megatonne reduction, in concert with its Copenhagen Accord obligations. I can tell this committee with a great deal of confidence—and this was reported as recently as last week—that the transportation sector strategy that this government adopted is working.

Finance committee  Right now we're not producing 600 million litres. We're importing some of that biodiesel or renewable diesel from offshore. Unfortunately, canola producers in Manitoba and Saskatchewan are exporting their canola into the United States, where it's being upgraded and sent back into Canada.

Finance committee  Thank you very much, Mr. Chair, and good evening. On behalf of the Canadian Renewable Fuels Association, I want to thank you for the opportunity to speak to you here today. CRFA member and supporting organizations provide Canadians with renewable, clean-burning ethanol and biodiesel fuels that help fight climate change and combat pollution, like smog.