Comment
Private Fleets represent over 50% of the Class 8 trucks on the road today, and over 70% of the class 4 to 7 Urban delivery trucks. As such, Private Fleet education and adoption of Electric Vehicles will be very important if a large scale increase in EV's is expected. The PMTC is the only organisation in Canada that represents the views and interests of Private and Dedicated Fleets, and can be instrumental in helping to get the message and benefits out to our members.
I wish to comment on several areas of the discussion paper, and will do so by category.
7.1) If the government wants to see large scale adoption in the Commercial Vehicle classes of vehicles, the cap of $3,000.00 for vehicles over $75k needs to be removed. A class 4 to 8 CMV will see huge increases in purchase price, generally well North of a 100% increase. The payback must be received within a 2 to 4 year period for class 8 Fleets to generally considered adoption of different vehicle types. Class 4 to 7 fleets are more willing to go to a longer payback period, possibly as far out as 8 to 10. A $3 k incentive will do little to encourage adoption of EV's to a business.
7.2) A public private partnership would be the best option for installing charging stations. Workplaces will need incentives on the purchase price of charging stations, and a reduction of Electricity rates for charging should be considered for both public and private business charging stations. Allowing workplaces and other private owners to allow the general public to utilize their charging stations for a fee may also help recoup some costs, as well as closing in some gaps in charging infrastructure.
Private/Public Utility companies would be best to implement/install the charging stations, however consultation with governments, both provincial and municipal, is paramount to ensure stations are being installed in the proper area's. Governments will also need to help out with incentives for funding of these stations, which would best be achieved through these private/public partnerships.
7.3) The current perceptions of EV's from most of the business world, and the public for the most part, is that there are a very expensive vehicle, which are unreliable for distance travel, can mainly only be used in short, intercity usage. They are heavy vehicles, which reduce payload for commercial truck usage as well. The positive aspect/perception is the reduction in GHG gases, and the lower cost of usage with decreases in fuel and maintenance costs. The payback however is still widely considered to be more than 10 years, which is unacceptable for most fleets.
To help fleets with the adoption, I believe we need a multipronged approach. As mentioned earlier, discounted Utility rates for hydro used for charging stations, for both homes and businesses. Increase the rebate cap for vehicles over $75k. Rebates for installing charging stations. Reduce base plates fees for electric vehicles versus diesel or gasoline powered vehicles. Reach out to the Feds to see about having them chip in with a Tax credit, similar to what the USA is doing. As for the education program, reach out to Associations, dealerships, manufacturers and the like. Associations can help spread the message to their members. A wide based educational campaign via multimedia is a good platform as well. For Private Fleets, since they operate 70% of the class 4 to 7 urban delivery vehicles on the road today, and the majority of this is for local usage, and these types of vehicles are generally operated for a longer life span than a class 8 over the road truck, they would be prime candidates/targets to adopt more EV's. The types of incentives that I have mentioned earlier would be a good start. Awareness can be raised through multimedia, associations, trade magazines, social media and so on. The PMTC would gladly help in getting the message and information to our membership. The decision maker/cost calculator tool should include the up front cost, fuel usage cost (diesel, gasoline, natural gas, in comparison to electric.), maintenance costs etc. I would have the comparison calculator based on 2 models, a 5 year and 10 year life cycle cost. The payback must be shown to the owners. The fleets will adopt greener technology, and pay a premium, in order to do their part for the environment, however the cost must be close enough that is does not hamper their ability to do business in a cost productive and competitive environment.
[Original Comment ID: 196455]
Submitted February 12, 2018 11:51 AM
Comment on
MTO discussion paper on electric vehicle incentive initiatives under the Climate Change Action Plan
ERO number
012-8727
Comment ID
1529
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Comment status