Tories announce $345-million biofuel plan; hope to boost environmental image

The federal government has announced a $345-million funding and regulatory package to promote renewable fuels such as biodiesel and ethanol as part of its clean air plan.

Environment Minister Rona Ambrose said the government will require renewable content of five per cent in gasoline by 2010, and two per cent renewable content in diesel fuel and heating oil by 2012.