The federal government is reintroducing legislation that would set minimum biofuels content in gasoline, diesel fuel and heating oil within three to five years.

If passed, the Renewable Fuels Bill would require five per cent ethanol in gas by 2010 and two per cent biodiesel in diesel fuel and heating oil by 2012.

Agriculture Minister Gerry Ritz says the legislation will mean new jobs, as well as new markets and better profit margins for farmers.

As part of the package, Ottawa previously announced 1.5 billion dollars to help producers get biofuel production up and running.