OTTAWA - Environment Minister John Baird is defending the government's decision to offer a $1,000 fuel-efficiency rebate on gas-guzzling cars capable of burning high-ethanol fuel even though no filling station in Canada sells the product.
The Chevrolet Impala and Monte Carlo can burn either gasoline or E-85 fuel, but don't rate high for fuel efficiency when burning gasoline. Environmentalists call them gas guzzlers.
"This government wants an ethanol vehicle fleet to be part of Canada's future,'' Baird told the House of Commons on Monday.
"That's why we're very proud to put Chevrolet Impala E-85 on the list.''
Opposition critics allege that Finance Minister Jim Flaherty included the two GM vehicles in the list of models eligible for government rebates because they're manufactured in the riding adjacent to his home riding of Whitby-Oshawa.
"The government has not got a lot of nuance when they're handing out political favours,'' said NDP environment critic Nathan Cullen. "They've handed them to several key members of Parliament in the Conservative caucus and this is one of them.
"They're not serious about the environment, they're just looking for window dressing.''
Robert Fortin of MacEwan Petroleum, which promotes ethanol, said he knows of only one E-85 station and it is a government-run facility in Ottawa not accessible to the public.
"There's no demand for E-85,'' he said. "No one is asking for it.''
Baird said it is unacceptable that there is only one service station in Canada offering the fuel, but he gave no indication of any plan to expand availability.
Kory Teneycke, president of the Canadian Renewable Fuels Association, said there is a chicken-and-egg problem with high-ethanol gasoline: E-85 cars will not be popular until the fuel is widely available, and the fuel will not be available until there's strong demand.
He said the government should offer tax breaks for E-85 fuel to promote its use.
Teneycke defended TV ads being run by his association showing a car filling up a car that "runs on ethanol''even though high-ethanol fuel is not available.
"I think it's speaking to the aspirations of Canadians who would like to have more fuel options than just petroleum, and they want it at a reasonable price and they want it convenient, and all these things are possible with E-85.''
