The Natural Gas For Vehicles Market Transformation Project
Pilot Project
Natural Resources Canada (NRCan) is funding the Natural Gas for Vehicles Market Transformation Pilot Project. Up until December 31, 2004, the pilot project will pay eligible beneficiaries $3,000 toward the capital cost of buying or leasing a new natural gas vehicle (NGV) with a warranty from a vehicle manufacturer. Utilities and vehicle manufacturers have also agreed to provide additional financial incentives for some vehicle models operating in specific geographical areas.
The eligible beneficiaries are Canadian corporations, individuals and organizations operating NGVs that are part of a high-fuel-use fleet. They include municipal and provincial fleets, utilities fleets and private urban fleets (taxis and rentals, courier, delivery, pick-up and shuttle services).
The pilot does not apply to Government of Canada departments, agencies and Crown corporations other than financially independent Crown corporations as determined by the Treasury Board of Canada Secretariat.
In addition, the NGVs must be operated in the following areas:
• British Columbia — Victoria, Vancouver and the Lower Mainland and highways (Highways 1, 16 and 3)
• Alberta — Edmonton, Calgary and highways (TransCanada Highway)
• Ontario — Greater Toronto Area, London-Hamilton-Windsor corridor and highways (400 series, Highway 7)
Eligible Vehicles
All NGVs originally equipped by the manufacturer and available in Canada, including both dedicated and bi-fuel systems, except off-road vehicles such as forklifts, front-end loaders and vehicles that operate underground or indoors
Eligible Costs
NRCan will provide an incentive of $3,000 for each new NGV sold or leased during the pilot period. The federal contribution covers part of the capital cost of purchasing or leasing an NGV. It will be applied retroactively, starting October 1, 2003.
The NGVs must be purchased in Canada, and all components must comply with Canadian standards. The beneficiaries are eligible to receive from NRCan a maximum of $3,000 per vehicle, and the total direct Government of Canada assistance shall not exceed the maximum incentive.
Eligibility Period
The purchase or lease of the NGVs originally equipped by the manufacturer must take place between October 1, 2003, and December 31, 2004. In the case of a leased NGV, the pilot project will pay the end-user (beneficiary) of the vehicle. Lease periods must be for a minimum of two years.
For more information, media may contact:
Alexandra Muir Ghyslain Charron
Director of Communications Media Relations
Office of the Minister Natural Resources Canada
Natural Resources Canada Ottawa (613) 992-4447
Ottawa (613) 947-8246