Quebec Environment Minister Line Beauchamp says taxing heavy water is a sustainable policy. (Canadian Press)Quebec companies that sell water-based products or use water for manufacturing will have to pay a provincial surcharge, starting in 2011.

Provincial Environment Minister Line Beauchamp announced the new water charge at a news conference in Quebec City on Tuesday.

Two rates will be charged, in addition to municipal water fees:

• $70 for every one million litres of water used to produce water-based products such as juice or beer.
• $2.50 per million litres of water used for production by companies in the forestry, metallurgical and pickling industries.

The surcharge is a "concrete application of a fundamental principle of sustainable development — that is, user fees," Beauchamp said.

Quebec's housing and agricultural sectors are exempt from the new fee, which will generate an estimated $8.8 million per year, the minister said.

Revenues will go to Quebec's Green Fund, which finances environmental initiatives.

The surcharge takes effect on Jan. 1, 2011.

With files from The Canadian Press